VIETNAM BUSINESS NEWS AUGUST 2410:52 MoIT proposes solutions to avoid disruption in goods supply With COVID-19 threatening the goods supply in the south of the country, the Ministry of Industry and Trade (MoIT) has suggested solutions to connect supply chains in the area. According to a report by the Department of Industry and Trade of Ba Ria - Vung Tau Province, the local goods supply sources are from the province and from neighbouring areas like HCM City, and Dong Nai, Binh Duong and Lam Dong provinces. However the prolonging of Directive 16 could affect the supply of goods, especially on checking shipped goods. At the same time, the province does not have a goods shipment station to ensure epidemic prevention and goods circulation during lockdown, and it is difficult to connect products from and to other localities. For example, via online working, Long Son Commune’s aquatic products were ordered by Vinmart's supermarket system in HCM City and asked to transport and distribute the products to each store in a total of 18 Vinmart supermarkets in the city. However, Ba Ria - Vung Tau farmers realised the deal was impossible as they could not transport and distribute such goods before the city's curfew at 6pm every day. Another problem is the supermarket systems' requirement to have VAT invoices issued immediately after importing goods as it is difficult for individual farmers to issue such papers as they have no experience in it. Ba Ria - Vung Tau Province’s report stated that in the main season of longan and dragon fruits, the province currently has an output of 2,000-3,000 tonnes of longan and 200 to 500 tonnes of dragon fruits, but due to lower consumption and market connection, they could only sell 60-80 tonnes per day, making the prices fall. As commodities producers, the provincial farmers face difficulty in accessing green supermarkets and stores due to the strict requirements. Dong Nai Province has had similar problems and mentioned the regulation not to leave the house from 6pm until 6am as troubling staff serving supermarkets and convenience store chains who were active in serving local demand. While Ba Ria - Vung Tau asked MoIT to support the connection of its consumption and distribution chains, Dong Nai asked the ministry to provide general guidance for employees of supermarkets and convenience stores to go to work between 4:30am to 6am and work until 8am to prepare goods. With the reports of Ba Ria - Vung Tau, Dong Nai and other southern provinces, MoIT has recommended the People's Committees of southern provinces and cities to have an agreement on a travel pass form. It also recommended the Ministry of Health to direct and regulate rapid tests or PCR tests within 72 hours for drivers in the provinces and cities. To facilitate businesses in goods circulation, MoIT proposed the Ministry of Transport issue detailed instructions for issuing QR codes for “green lanes” for businesses and people as well as for using software to manage vehicles on the road. Earlier, MoIT proposed a “green lane” be quickly opened for waterway transport to ensure smooth trading of rice in the areas. MoIT suggested the Prime Minister assign ministries, sectors, and relevant localities to promptly open a “green lane” for waterway transport, which is currently in charge of 95 per cent of the rice output in the Mekong Delta - the country’s biggest agricultural hub and home to a large river and canal network. Currently, strict social distancing measures under Directive 16 are being imposed on 19 provinces and cities in the south, including the Mekong Delta, to curb the spread of the virus. The strict measures are reportedly creating congestion in the transport of rice from fields to factories and ports. Vietnam remains 11th largest rubber supplier to US market The nation was the 11th largest rubber supplier to the United States, with 21,010 tonnes of rubber worth US$37.14 million exported during the first half of the year, an annual rise of 54.4% in volume and 81.8% in value, according to the Ministry of Industry and Trade. Vietnamese rubber’s market share as part of the US’ total rubber imports accounted for 2.3% during the first half of the year, representing a rise compared to the figure of 1.6% recorded during the first half of last year. Statistics released by the US International Trade Commission indicate that the US imported 912,350 tonnes of rubber worth US$1.81 billion, marking a rise of 3.6% in volume and 16.5% in value against the same period from last year. Indonesia, Thailand, Canada, the Republic of Korea, and the Ivory Coast made up the five largest suppliers of rubber to the US. Vietnam represented the fourth largest supplier of natural rubber to the US with 20,950 tonnes worth US$36.93 million, up 54.2% in volume and 82.3% in volume. According to a report compiled by Freedonia Focus Reports, the US’ demand for rubber is forecast to grow by nearly 1.1% per year until 2023. Mekong Delta authorities step in to help farmers sell their crops as traders play truant
Authorities in Mekong Delta provinces are helping farmers sell their harvests after they were found struggling amid COVID-19 transport and movement restrictions. Farmers usually sell their crops and seafood to traders at the farm, but with the restrictions currently in place, the latter are not turning up. Nguyen Minh Phoi, head of a co-operative group in Ca Mau Province, said though the prices of seafood have been dropping by tens of thousands of dong per kilogramme, farmers are struggling to sell them. Many could incur heavy losses, he said. Tran Van Hien, a crab farmer in the province’s Nam Can District, told Nguoi Lao Dong (The Labourer) newspaper that though prices have never been this low before, traders are not visiting farms to buy. Even the few who turn up only buy small quantities since they are concerned about selling them. If the situation is not resolved, farmers would not be able to invest in a new crop, he warned. Ngo Minh Nguyen, a prawn farmer in Bac Lieu Province, said the prices of animal feed and medicines are rising, but he continues to breed since the farm equipment could not be left unused for too long. Earlier this month Nguyen Nhu Cuong, head of the Ministry of Agriculture and Rural Development's crop production department, said with farmers in the delta struggling to sell their rice despite low prices, some are even reluctant to grow rice again. Nguyen Tien Hai, the Ca Mau Party Committee Secretary, said the province has been making an effort to connect farmers with buyers, and monitoring farming activities to identify transport and distribution problems. The Soc Trang Province People’s Committee has requested Can Tho City and provinces in the delta to join hands to fight COVID-19 and sustain the economy. It wants them to work together on solutions to improve distribution. The Bac Lieu Province Department of Agriculture and Rural Development has created a working group to facilitate distribution of recently harvested prawn. Its counterpart in An Giang Province is working with other agencies and the Ministry of Agriculture and Rural Development’s working group to connect farmers with businesses to sell some 6,500 tonnes of seafood. In Hau Giang Province, Phung Hiep District has set up many sites to stockpile agricultural produce and seafood from farmers for vehicles to conveniently pick them up and transport them throughout the district. Some co-operative groups there are also transporting goods to HCM City and some provinces. Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said a ministry working group has launched a website to connect agricultural suppliers with buyers, and hundreds of tonnes of goods are sold daily. Provinces should set up working groups for managing their agriculture markets, he added. Binh Duong firms halt stay-at-work model due to Covid-19 outbreak Up to 795 companies in the southern province of Binh Duong have suspended their stay-at-work policy after failing to ensure the Covid-19 pandemic prevention and control measures. According to the provincial people’s committee, these companies have witnessed a rise in Covid-19 infections, while additionally, they have lacked materials for production. Their orders have also been unstable. Besides, many workers do not want to stay at workplaces. By late Sunday, up to 3,263 Covid-19 cases had been detected at 391 firms at local parks. Lots of cases have not yet been sent to quarantine sites despite being reported to local authorities. To date, 121,998 workers at the province’s industrial parks have been vaccinated against Covid-19. The local Industrial Park Management Board has cooperated with the Centre for Disease Control and Prevention to conduct large-scale Covid-19 testing programmes for workers who stay at workplaces. The agencies have also worked out Covid-19 vaccination plans for them. Some 3,033 enterprises in Binh Duong with a total of 242,378 workers have currently registered for the stay-at-work model, including 1,316 at industrial parks. Workers who stay at work are offered a subsidy of VND1-3 million per month. State audit office elaborates on key activities in next five years The State Audit Office of Vietnam (SAV) will strive to conduct annual audit of budget balances of 80 percent of ministries and centrally-run agencies and localities, and biennial audit for the remaining 20 percent, Auditor General Tran Sy Thanh has said. Talking to Vietnam News Agency’s correspondent on the development orientations of the SAV in the following five years, Thanh said that the agency will diversify the types of audit. The SAV is to develop into the main tool of the State which will prove effective in the inspection for the management and use of public funding and assets, as well as anti-corruption and anti-wastefulness. The office is also expected to timely provide information serving activities of the National Assembly, the State, ministries, sectors and localities. To realise the targets, the SAV has identified a number of key tasks to improve its role in corruption prevention and combat, and fostering thrift practice and anti-wastefulness, he added. It will bolster audit activities in the fields of environment, climate change adaptation, complete the legal system in the relevant field and the auditing sector's organisational structure, and improve the quality of human resources. In addition, the SAV will better the quality and efficiency of external affair activities and international integration in a bid to prove its capacity in the region and the world. Thanh said that the audit office has set itself a target that environmental audits will make up from 30 - 40 percent of the average number of audits conducted each year. The COVID-19 pandemic has delivered a major blow to auditing activities. However, the SAV has devised a number of measures in an attempt to ensure its yearly plan and that its auditing activities are carried out in a safe manner. The SAV has taken the initiative in reducing or scrapping audits in the sectors of health, public security and Military High Commands of pandemic-hit localities, so that they can focus on the fight against COVID-19. In regards to the management and use of public funding and assets for COVID-19 prevention and control, the auditing plan for 2021 has determined essential tasks of top priority. The tasks include assessment of the implementation of policies addressing bottlenecks for business operations and stepping up investment capital disbursement amid COVID-19, along with regulations on tax and fee exemption and reduction for firms affected by the ongoing pandemic. The SAV will continue to pay due attention to the evaluation of the implementation of policies aiming to support people and businesses facing difficulties triggered by COVID-19, Thanh concluded. So far this year, the SAV has completed 91 audits and proposed financial measures related to 50.87 trillion VND (2.23 billion USD), including collecting an additional 6.65 trillion VND to the State budget and reducing budget spending by 5.79 trillion VND. The agency also proposed scrapping, amending, supplementing and issuing 67 legal documents, helping to deal with loopholes in mechanisms and policies to prevent losses and wastefulness, he said. The SAV is serving as Chair of the ASEAN Supreme Audit Institutions (ASEANSAI) Strategic Planning Committee and Chair of the Asian Organisation of Supreme Audit Institutions (ASOSAI) in the 2018 - 2021 term. The ASOSAI was founded in 1979 and pursues a mission common among working groups of the International Organisations of Supreme Audit Institutions (INTOSAI), that “Professional supreme audit institutions promote good State governance”, and with the core values of “Professionalism, Cooperation, Equality, Creativity”. Its goal is to promote mutual understanding and cooperation among member SAIs through the exchange of ideas and experience in public auditing, creating the conditions necessary for the training of State auditors to improve working quality and efficiency. The SAV became a member of ASOSAI in 1997. In its initial period of membership, it primarily sent auditors to attend training courses and workshops sponsored by the ASOSAI, to enhance professional capacity. Since 2010, the SAV has undertaken a more active role in the association’s professional activities. The SAV, as Chair of ASOSAI in the 2018 - 2021 term, has carried out a lot of important and effective audit activities which have gained praise from regional and international audit agencies. Besides, it has also actively and responsibly participated in activities of the International Organisation of Supreme Audit Institutions (INTOSAI) as a representative of its Regional Working Group./. HCM City retailers co-ordinate with local authorities to distribute goods amid lockdown Supermarkets like Saigon Co.op, AEON, MM Mega Market, and Satra said they are still open in HCM City and ready to work with local authorities to supply consumers. But they have temporarily prohibited customers from coming in amid the city’s stricter COVID-19 prevention measures which came into force since early Monday. Until September 6 people have been told to “stay where they are”, with local officials helping them buy essential goods. At apartment buildings that have supermarkets and convenience stores, residents can continue to buy but with some restrictions. Supermarkets are selling various combinations of essential goods at specific prices, delivering them to local officials. A Satra spokesperson said three supermarkets and more than 100 stores are still open from 7:00am to 4:30pm daily and work closely with local authorities to distribute goods. It has six different combinations for customers at an average price of VND300,000 and with a variety of items like eggs, vegetables, chicken, beef, pork, and others, he said. The ward officials pool orders and send them to the supermarkets before 11.30 each day, and the goods are packed and delivered to a collection point in each ward by next morning, with people making payments on receipt of the goods, he said. An employee of a Co.op Food store in Bach Dang Street, Binh Thanh District, said the store is open from 6am until 5pm as usual, but on Monday morning only half its employees could come past checkpoints. A Saigon Co.op spokesperson said various sales options have been sent to special working groups in wards such as shared purchase and combos. According to Central Retail Vietnam, on Monday Big C, Tops Market and Go! supermarkets opened as usual. They too are selling various combos based on consumers’ nutritional needs, like vegetables, meat and fish, including for children, seniors and people with special diets. AEON Vietnam too has combos and the normal quantities of stocks. Emart Vietnam said it has chosen to close its doors and no customers are let in from Monday, but has employees staying onsite to co-ordinate with local officials to supply goods. It has reduced stocks since the demand is not clear yet. A District 8 Economic Department official said five distribution systems, including San Ha, Bach Hoa Xanh, Saigon Co.op, and Satra, would fully meet local needs. The district has 108,000 households, of whom 47,000 households are poor and receive essential items from the city, he said. The remaining 61,000 households need support in buying goods and the district has decided to offer 12 combos for them to choose from. Retailers will send uniform price quotes. A household can register to buy a few combos to meet its needs. Currently the district works with distributors and has the ability to meet 4,000 orders a day, he added. Producers of essential goods and supermarkets said there is no shortage of goods, but want authorities to quickly issue travel permits to their staff to ensure distribution. VinFast cooperates with Gotion High-Tech to produce LFP batteries for electric vehicles VinFast Manufacturing and Trading Co., Ltd and Gotion High-Tech Co., Ltd. (China) signed a Memorandum of Understanding on cooperation in research and production of LFP battery cells for VinFast electric vehicles. Under the agreement, VinFast and Gotion High-Tech will conduct joint research, development and production of LFP batteries. LFP battery is currently the most popular battery technology in the global electric vehicle market, with outstanding benefits, including competitive cost which helps to reduce product costs and is suitable for small and medium-sized electric cars. According to VinFast, the research and construction of an LFP battery factory in Vietnam is one of the efforts to establish a clean energy ecosystem, contributing to the localization of supply. Thai Thi Thanh Hai - Vice President of Vingroup shared that cooperation with Gotion High-Tech - a world's leading prestigious battery manufacturer is one of VinFast's important action plans in the development of the new product line of smart electric cars and supply chain autonomy. VinFast's overall goal is to establish a clean energy ecosystem and reduce carbon emissions in Vietnam as well as contribute to this goal in markets around the world in which VinFast operates. In addition, Vingroup has established VinES Energy Solutions Joint Stock Company to develop solutions and produce batteries for electric vehicles. At the same time, VinFast also plans to build battery and charger factories in the US and Europe to serve its international expansion strategy in the future./. Plans developed to ensure food supply for HCMC, Binh Duong during lockdown The Working Group 970 of the Ministry of Agriculture and Rural Development (MARD), on August 23, sent a report to Deputy Prime Minister Le Van Thanh on the supply of food and foodstuffs for Ho Chi Minh City and Binh Duong during social distancing. By August 20, a total of 1,218 suppliers of agricultural products and foodstuffs had registered with the Working Group 970, including 334 vegetable suppliers, 316 fruit suppliers, 438 aquatic product suppliers, 75 food suppliers, and 55 suppliers of other items. Currently, the total demand for rice in three provinces and cities is 92,540 tons per month. HCMC needs 59,400 tons of rice per month, Dong Nai Province 16,740 tons per month, and Binh Duong Province 16,200 tons per month. Besides meeting the food needs of the Southeast region, the Mekong Delta still has about 3 million tons of rice left to meet the requirements of food safety and export. HCMC needs 126,000 tons of vegetables per month, Dong Nai Province 23,250 tons per month, and Binh Duong Province 20,100 tons per month. Meanwhile, the Mekong Delta still has nearly 1,500 tons of vegetables of all kinds that need to be consumed domestically and exported. The supply of livestock products remained diverse and unchanged. HCMC needs 48,000 tons per month, Dong Nai Province 11,100 tons per month, and Binh Duong Province 8,800 tons per month. Total egg production of the Southern region is about 19.6 million eggs per day, with 588 million in August and 590 million in September. Thus, currently, pork supply to HCMC has dropped by about 37 percent, and chicken meat supply has declined by about 28 percent compared to before social distancing. Currently, the Working Group 970 is piloting a combo package of 10 kilograms of agricultural products, which attract the participation of many provinces and cities to help farmers consume agricultural products congested in provinces and help consumers in quarantine areas and boarding houses to have access to low-cost fresh agricultural products at an average of VND10,000 per kg. This program creates a circular economy to take advantage of social capital to adapt to the Covid-19 pandemic in the long run. The sustainability of this model is higher than zero-dong supermarkets or charity gifts because there is no need to find long-term sponsors. Provinces are capable of supplying HCMC 80,000 packages per week or 800 tons of agricultural products per week. If there is transportation support, the supply capacity of 1,200 suppliers in the form of the 10-kg-per-bag combo is likely to increase to 120,000-150,000 bags per week or 1,200-1,500 tons per week. Although the People's Committee of HCMC has committed to ensuring the supply of foodstuffs for citizens, the Working Group of the MARD, in collaboration with the General Department of Logistics of the Ministry of Defense, still developed a plan B for ensuring the supply of food and essential food for HCMC and Binh Duong Province with the direction of the Government and the Head of the Government's Special Working Group. It is necessary to ensure the supply of essential food items, such as rice, pork, chicken, eggs, vegetables, and fruits, to city dwellers in 15 days of strict social distancing. Switzerland increases import of Vietnamese cashew nuts Switzerland increased its imports of cashew nuts during the 2016 to 2020 period, with imports from the Vietnamese market enjoying a significant growth rate. According to data released by the International Trade Center (ITC), Switzerland's cashew imports throughout the reviewed period saw annual growth of 13.6% in volume and 12.9% in value, climbing from 1,900 tonnes worth US$18.98 million in 2016 to 3,120 tonnes worth US$28.24 million in 2021. In terms of the figure, Switzerland's cashew nut import rate from the Vietnamese market witnessed an increase of 20.4% per year in volume and 19.8% per year in value, rising from 742 tonnes worth US$7 million in 2016 to approximately 1,500 tonnes worth US$12.33 million last year. During the first half of this year, the Central European country moved to increase its cashew nut imports from Vietnam, the Ivory Coast, and Benin, although they reduced their imports from both India and the Netherlands. Statistics indicate that Swiss cashew nut imports from the Vietnamese market during the reviewed period reached 777 tonnes valued at US$6.52 million, representing an increase of 40.4% in volume and 35.6% in value compared to the same period from last year. At present, Vietnamese cashew nuts have a competitive advantage in the Swiss market due to the country’s growing cashew nut market share, with Switzerland’s total imports soaring from 38.58% in the first half of last year to 53.16% this year. Vinh Phuc supports industrial production facilities improve productivity, products’ quality The northern province of Vinh Phuc is working is carrying out activities to give support in finance and equipment to industrial production facilities across the province with an aim to promoting its industrial production amid COVID-19 pandemic, according to the provincial Department of Industry and Trade. The department said that it has coordinated with localities across the province to give suitable assistance to particular firms to raise their productivity and products’ quality. Recently, the Vinh Phuc Centre for Industry and Trade Development has worked with Le Thi Ninh production facility in Tu Du commune, Lap Thanh district, to make pre-acceptance process for a project to give financial support to buy modern machineries and equipment for mechanical production activities, with total assistance of 380 million VND (16,702 USD), including 140 million VND from the province’s fund for industrial encouragement. The machineries and equipment are expected to help the facility increase productivity as well as its products’ quality, while helping save materials and reduce environmental pollution. Meanwhile, the Centre for Industry and Trade Development has also finished a project to assist Atlantic packaging company in Dong Doai village, Dao Duc township of Binh Xuyen district to buy equipment and machines to produce plastic packages. The project has a total investment of 902 million VND (39,647 USD), which has helped enhance the quality and model of the firm’s products, meeting the demands of customers and helping the facility expand its market. In the 2014-2020 period, Vinh Phuc carried out various activities to expand industrial production with total cost of over 27.8 billion VND (1.22 million USD). The capital has helped local production facility deal with their financial difficulties, encouraging them to expand production. The activities have brought about positive changes for the northern industrial hub, contributing to promoting growth of local firms and creating more jobs for local labourers. In the first six months of 2021, Vinh Phuc recorded a decade-high economic growth rate despite difficulties caused by the impacts of the COVID-19 pandemic, according to the provincial Statistics Office. The office reported that the first-half Gross Regional Domestic Product (GRDP) of Vinh Phuc rose 14.21 percent from the same period last year. There were also many bright spots in the socio-economic development picture of the province, the office said, attributing them to the involvement of the entire political system and the support of the people and the business community. As of June 28, budget collection in Vinh Phuc totaled 19.25 trillion VND (836 million USD), a surge of 35.18 percent on a yearly basis. Meanwhile, budget spending stood at over 10.47 trillion VND, up 6.26 percent year-on-year. The flow of foreign direct investment (FDI) capital into the province also saw a strong increase in the six-month period, with 177.64 million USD poured into 29 projects. Meanwhile, 10 domestic investment projects were licensed, with over 7.5 trillion VND worth of total registered capital. It is noteworthy that 245 enterprises resumed operation in the reviewed period, up 56.05 percent from the same period last year, while 560 new enterprises were set up. Regarding employment, 6,880 labourers found job in the six months. Despite being affected by the COVID-19 pandemic, the industrial production index of Vinh Phuc in the first six months of this year still reached over 145.91 trillion VND (6 billion USD), an increase of more than 26 percent over the same period last year. Most production and business activities in urban areas in Vinh Phuc have gradually recovered and even expanded. The provincial administration has created favourable conditions for local enterprises, particularly those in industrial parks, to early stabilise production and continue to create jobs as well as income for local residents. Vinh Phuc is now home to more than 400 FDI enterprises with total registered capital of over 5.7 billion USD. Those enterprises employ around 100,000 workers and unskilled labourers with average monthly income of 7 – 8 million VND. The provincial administration has appealed to enterprises in industrial parks to join hand with the local authorities to overcome difficulties amid the COVID-19 pandemic, maintain stable production – business activities and pay attention to workers’ life./. Ministries work on draft circular to ease congestion at seaports Ministries are urgently working on a circular to allow imported goods to move from one seaport to another in case the first is overrun. Authorities want to provide new regulations as overloading occurred at Cat Lai Port in HCM City recently, while the country has no official policy on the issue. To deal with the overloading, the Ministry of Finance (MoF)’s General Department of Customs had to apply temporary measures, allowing the movement of goods stored at Cat Lai Port to other seaports. The Ministry of Finance (MoF) has finalised the draft circular and sent it to the Ministry of Industry and Trade (MoIT) for consultation before approval. In response to the MoF’s request, the MoIT said it has basically agreed with the draft circular. Regarding the basis for determining the goods stuck at a port and needing to move to another following the rules of the draft circular, the MoIT suggested the congestion should be determined when goods at the port reach the maximum permissible design capacity as announced previously by the port enterprise. The congestion of the port must be inspected and approved by the provincial customs departments. Earlier this month, the number of imported containers waiting at Cat Lai Port increased rapidly because many factories and enterprises have reduced production or stopped working due to pandemic prevention requirements and were unable to receive or release shipments. To solve the problem, the MoF’s General Department of Customs allowed the movement of goods stored at Cat Lai Port to other seaports in HCM City and inland container depots (ICD). According to the rules of the department, only goods that are not subject to customs procedures at the border gate (as prescribed in Decision No 23/2019/QD-TTg) and those that have not submitted an import declaration can be moved to different ports. Moreover, the goods must not show signs of violation during inspection by the authorities and the entire shipment must belong to a single bill of lading, with the same owner and place of storage. Regarding the destination, the goods must be transported to seaports in provinces where the enterprises are located. Specifically, goods imported by Dong Nai enterprises will be transferred to Tan Cang Long Binh ICD or Tan Cang Nhon Trach ICD. Those for enterprises in Binh Phuoc will be transported to Tan Cang Song Than IDC. Meanwhile, goods belonging to enterprises in the western provinces will be transported to Tan Cang Hiep Phuoc Port. Shipments will be managed and closely monitored while transported from Cat Lai Port until the importers complete customs procedures to remove the goods. These measures are effective for 15 days from the date the People's Committee of HCM City has announced suspending the implementation of Directive 16. 13 enterprises register to sell goods by using cars and buses Thirteen enterprises have registered to sell agricultural products directly to citizens using cars and buses in Ha Noi, according to the city’s Department of Industry and Trade. Twelves companies registered to sell products using cars, including big companies such as Lotte Vietnam, Aeon Vietnam, Ba Vi Milk JSC and Dafusa Vietnam, as well as other private food companies and agricultural cooperatives. Particularly, Bao Yen Construction Services, Tourism Co registered 10 mobile sales points using buses. Tran Thi Phuong Lan, acting director of the department, said cars and buses of these enterprises will sell products to boarding houses and densely populated areas to limit contact. Up to now, nine districts in the city organised 45 mobile sales points and 63 field sales points in the areas where markets or businesses were closed. To be ready for a more worsening situation, the city’s People's Committee has also directed districts, towns and businesses to register their demand for mobile sales. Currently, six districts have registered 62 selling points using buses and cars. The city’s Department of Industry and Trade also said it would strengthen inspection and control of prices. Fertiliser companies see earnings on an upswing but stock prices may become less attractive Fertiliser companies reported increases in earnings results but stock prices are forecast to struggle in 2022. Fertiliser businesses witnessed galloping growth in profits in the first half of this year. Petrovietnam Fertiliser and Chemicals Corporation (DPM) witnessed post-tax profit up 110 per cent year-on-year, PetroVietnam Ca Mau Fertiliser JSC (DCM) up 20 per cent, Binh Dien Fertiliser Joint Stock Company (BFC) up 88 per cent and The Southern Fertiliser JSC (SFG) up 362 per cent. As for DPM, although in the second quarter its factory had to stop production due to periodic maintenance for nearly a month, six-month revenue only increased by 26 per cent, but profit doubled thanks to the sharp increase in prices. Compared to the annual plan, DPM has fulfilled 59 per cent of the revenue target, but has exceeded nearly 140 per cent of the profit plan for the whole year. DCM in the first half of this year completed 55.4 per cent of the revenue plan and exceeded 108.2 per cent of the annual plan. At a shareholders’ meeting last month, General Director Van Tien Thanh said the first half of this year was an unprecedented period in the past 10 years as the prices of fertiliser products witnessed a sudden increase which was difficult to control. Many other fertiliser enterprises also exceeded their profit target for the whole year in just six months, including Lam Thao Fertilisers and Chemicals JSC (LAS), with after-tax profit of VND52.7 billion (US$2.3 million), exceeding the whole year’s plan by 86 per cent. DAP - VINACHEM JSC (DDV) achieved after-tax profit of VND54.6 billion in the first half of the year, exceeding the whole year’s profit plan by 32.5 per cent. South-East PetroVietnam Fertiliser & Chemicals JSC (PSE) also exceeded the profit plan for 2021 by 63.8 per cent in just 6 months. According to analysts of SSI Securities Company, in 2022, fertiliser enterprises will continue to witness increasing profits. First, China faces a shortage of fertiliser supplies, which will reduce the supply of fertiliser worldwide. Second, fertiliser-importing countries suffer from unusually high transportation costs due to COVID-19, which will drive up fertiliser prices. These two factors would cause a shortage of fertiliser supply and increasing prices in 2022, SSI said. Domestically, fertiliser output will increase from the third quarter of 2021 because the fertiliser factories of Petrovietnam Fertiliser and Chemicals Corporation (DPM), Ninh Binh Phosphate Fertiliser Joint Stock Company (NFC), Habac Nitrogenous Fertiliser & Chemicals Joint Stock Company (DHB) will resume operations. Although supply may be in excess, fertiliser prices in Viet Nam are still forecast to increase to offset the increase in input gas prices. With excess production in the third quarter of 2021, fertiliser companies can export and continue to enjoy huge profits, SSI said. With the current world fertiliser price movement, SSI raised the profit growth forecast of Petrovietnam Fertiliser and Chemicals Corporation (DPM) in 2021 to 75 per cent and PetroVietnam Ca Mau Fertiliser JSC (DCM) to 62 per cent. Stock prices Along with the strong increase in profits, since the beginning of this year, fertiliser stocks have been on the rise with many surging by 60-120 per cent. Lam Thao Fertilisers and Chemicals JSC (LAS) increased by nearly 109 per cent, Petrovietnam Fertiliser and Chemicals Corporation (DPM) rose by 95 per cent, PetroVietnam Ca Mau Fertiliser JSC (DCM) up 73 per cent, Binh Dien Fertiliser Joint Stock Company (BFC) up 120 per cent, and The Southern Fertiliser JSC (SFG) gained 57 per cent. Despite the positive assessment of the world fertiliser market, SSI Securities Company said that the fertiliser stock prices will still increase in 2022 but these stocks would no longer be as attractive as in 2021. As for DCM, SSI company said that in 2022, the input gas price will increase by 39 per cent while the selling price of urea will increase slightly by 1 per cent, the consumption of urea will increase by 3 per cent, while its NPK fertiliser manufacturing plant will begin operations from the first quarter of 2022 with an output of about 90,000 tonnes. “DCM's gross profit margin has increased from 17.4 per cent to 19.3 per cent in 2021, but may decrease slightly to 18.1 per cent in 2022. With this assumption, SSI believes that DCM's profit in 2022 will only rise 2 per cent,” SSI said. For DPM, SSI said in 2022, the selling prices of the company's products will increase insignificantly while the input gas price will continue to rise, the gross profit margin will decrease to 24 per cent from 26 per cent in 2021. At the same time, DPM's profit in 2022 will decrease by 15 per cent compared to 2021. Vietnamese products to be promoted in Singapore The Vietnam National Brands Week 2021 in Singapore – Hybrid Expo on Halal and Processed Food Products – will be organised in Singapore from August 23-28 in both face-to-face and online forms. The event is hoped to offer a good chance for Vietnamese businesses to promote Halal and processed food products in the island city-state, thus strengthening trade cooperation in food and agriculture to mitigate the economic impact of the COVID-19 pandemic. This is the first event of this kind to be held in Singapore with the aim of increasing awareness among the Singaporean business community and consumers about Viet Nam's national brands. According to Vietnamese Trade Counsellor in Singapore Tran Thu Quynh, 36 Vietnamese enterprises registered to exhibit about 500 high-quality food brands at the event, including tea, coffee, nuts, spices, sauces, beverages, dairy and pastry products, fruits and fruit powders, dried seafood, canned food. The expo is a great effort of the Ministry of Industry and Trade to support Vietnamese businesses in strengthening their international promotion activities and seeking export orders amid the COVID-19 pandemic, Quynh said. In the framework of the expo, an online trade conference for Halal products and processed foods of Viet Nam and Singapore, and an offline business-to-business (B2B) matching event will be organised, enabling businesses of both sides to interact and exchange information on the benefits of free trade agreements, products and other business procedures. Quang Ninh views OCOP as important development programme The northern province of Quang Ninh is working to turn the “One Commune, One Product” (OCOP) into an important economic development programme carried out in tandem with new-style countryside building and agricultural restructuring during the 2021 - 2025 period. During the period, it is set to develop 300 new OCOP products, at least 250 of which will be rated three to five stars, with the participation of at least 50 economic organisations. Between 2017 and 2020, the local OCOP programme had its
focus switched from quantity to quality as more than 200 products were rated
three to five stars, which is said to have helped improve rural residents’
living conditions and contributed to the building of new-style rural areas,
the Nong nghiep Vietnam (Agriculture of Vietnam) newspaper reported. The local programme entered a new phase in 2017 with the aim of developing large-scale concentrated production, which focuses on diversifying and intensively processing products under value chains in order to increase benefits for the local community. The collective and private economic sectors were identified as important driving forces for this programme. At present, Quang Ninh has 456 items in the OCOP programme, 236 of which have been granted ratings of three to five stars. To be given star ratings, those products have met basic, even advanced, standards, been made in modern and professional manufacturing processes, and had their packages and labels perfected. OCOP products have generated an average of 500 billion - 700 billion VND (22 -million - 31 million USD) in annual revenue for the province. Achievements in the OCOP programme have substantially contributed to the building of new-style countryside, which is a national target programme, in Quang Ninh. As a result, per capita income in local rural areas rose to 47 million VND in 2020 from 10.5 million VND in 2010. Quang Ninh has set a goal to have modern industry and service sectors and become one of the region’s comprehensive and dynamic development hubs by 2025. The province looks to raise its gross regional domestic product (GRDP) by 10 percent on an annual average during 2020 - 2025, and the per capita GRDP to over 10,000 USD by 2025. The urbanisation rate is expected to surpass 75 percent, while the rate of poor households to go down to below 1 percent. The province plans to complete the new-style rural area building by the end of 2030. The OCOP was initiated by the Ministry of Agriculture and Rural Development in 2008, based on Japan’s “One Village, One Product” and Thailand’s “One Tampon, One Product” programmes. It is an economic development programme for rural areas and focuses on increasing internal power and values, and is also to help with the national target programme on new-style rural area building. Vietnam verified, rated, and recognised a total of 3,200 products as OCOP goods last year, 800 higher than planned, according to the Ministry of Agriculture and Rural Development. OCOP products are produced basing on the combination of local resources, traditional culture, and advanced technology, thus promoting product diversification, quality, packaging, and origin traceability. The programme has provided farmers with the chance to come together to form cooperatives, which now account for 38 percent of 1,400 OCOP producers nationwide. The establishment of these cooperatives has in turn enabled farmers to create goods with better quality, design, and packaging that meet higher standards and match market demand./. Techfest Hai Phong 2021 slated for September The start-up festival Techfest Hai Phong 2021 is scheduled to take place in the northern port city from September 28 to October 5, the event’s organisers announced at a press conference on Thursday. The 5th Techfest Hai Phong will emphasise the key role of businesses in the innovation ecosystem, affirming the position of Hai Phong as a destination of innovation and start-ups in the region, said Tran Quang Tuan, director of the provincial Department of Science and Technology, one of the event's organiser. The upcoming event will not only target innovative start-ups but also technology groups, foreign-invested enterprises, science and technology enterprises in which strong innovation activities are being implemented, Tuan said, adding that it also strives to attract universities that are regarded as the core force of the innovation ecosystem and the key force that has been creating innovative knowledge. The event will comprise a wide range of activities including the first-ever virtual exhibition on innovation and entrepreneurship; a webinar entitled “The role of innovation in the business restructuring and development in the new normal period" and an online dialogue discussing support for innovative start-ups and innovative small and medium-sized enterprises. The final round of a start-up incubation contest in 2021 and a ceremony to honour students who have taken part in scientific research will also be held on the sidelines of the event. Tuan said the Techfest Hai Phong will introduce innovations in several fields of the ecosystem such as digital technology (Big Data/AI, Blockchain, IoT, VR/AR), technology by industries (Cleantech, Edtech, Fintech, Foodtech, Agritech, Robotics) and some other fields for production and life. It will be attended by delegates from the city's agencies, representatives of central and local science and technology agencies, universities, research institutes, local start-up enterprises and those of other localities, individuals who are interested in innovation and start-ups, foreign enterprises, investment funds, and domestic and international start-up supporting organisations, he added. The event is expected to have 100 booths including ones from 20 enterprises from the Netherlands and South Korea, organisers said. The previous edition had 44 product booths from nearly 50 creative start-up projects including those from Hai Phong City and other provinces and cities such as Ha Giang, Phu Tho, Bac Kan, Ha Noi, Thai Binh, Ha Nam, HCM City, Can Tho, Long An and Tra Vinh, and research projects of Hai Phong University and College of Tourism. It showcased products and services in several industries such as information and technology, agriculture, tourism and education. Over the past years, Hai Phong City has supported nearly 150 start-up projects in the stages of developing ideas, completing products, financial consulting, and perfecting business models, connecting domestic and foreign markets. Nearly 40 events connecting individuals, organisations, start-up businesses with experts, advisors, investment funds, markets through forums and conferences, seminars, consultation sessions, fairs and exhibitions have been organised by the city and other partners besides four creative start-up competitions with more than 60 participating projects. Over 500 individuals and start-up groups have been trained, exchanged practical experience on concept development and product evaluation. Meanwhile, more than 20 managers have participated in surveying, learning experience to support start-ups in other localities such as HCM City and Can Tho and abroad such as the Netherlands, France and South Korea. Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes |
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