VIETNAM BUSINESS NEWS AUGUST 20
14:49
VASEP proposes reducing multiple fees for seafood firms
The Vietnam Association of Seafood
Exporters and Producers (VASEP) has proposed reducing many fees, including
fees for using infrastructure facilities and public services at seaport
terminals and industrial parks and the electricity prices, to help seafood
enterprises overcome the current tough period. VASEP
General Secretary Truong Dinh Hoe has written to the Government Office and
the Ministry of Planning And Investment commenting on a draft resolution on
support policies for enterprises amid the pandemic. According to
VASEP, if the seafood sector does not recover by September, materials for the
sector will be stagnant, seafood farmers will be put at a disadvantage and
the sector will find it hard to recover. Therefore, enterprises in the sector
should be supported to recover before September 15. VASEP also
proposed reducing the electricity prices by 30% for seafood producers in the
second half of the year. These firms consume electricity in the processing,
freezing and storage stages, even farming, while the draft resolution has
policies to support them only in the storage stage. As for the
seaport fees, VASEP suggest HCMC and Haiphong stop collecting the fees from
August 2021 until the end of June 2022 and cut other fees by at least 30%. In addition,
seaports should reduce service fees by at least half in the same period. The
association has also proposed cutting a minimum of 50% of the fees for using
infrastructure facilities at industrial parks. Further,
VASEP has suggested the Vietnam Social Security pay the allowances for
laborers who are under quarantine and have stopped working as required to
fight the pandemic. According to
VASEP, enterprises have to face multiple difficulties while suspending or
reducing their operations and they must pay the salaries of laborers who
cannot work. Moreover,
the Vietnam Social Security’s balance is high. Specifically, as of 2020, the
balance was nearly VND925.1 trillion. Vietnam promotes safe use of digital platforms The Ministry
of Information and Communications has issued a directive on promoting the
development and use of safe and healthy digital platforms. The
directive is also expected to contribute to creating digital trust and
ensuring the safety of Viet Nam's cyberspace. Digital
platforms have made important contributions to the national digital
transformation, and the development of the digital economy and digital
society. However, information and data leakage on digital platforms still
occurs on an increasingly large scale. The spread
of fake news, information that violates the law, especially on cross-border
digital platforms, has caused a lot of negative impacts. Therefore,
the ministry requires businesses that manage digital platforms to develop the
platforms that are able to protect themselves and have tools to process and
remove information that violates the law. In
particular, owners of digital platforms must implement solutions to ensure
information security and publicise measures to handle and protect personal
information, and collect personal information only with the consent of the
users. These units
are not allowed to provide, share or distribute personal information of
users, except with their consent or at the request of competent state
agencies. Ministry of Transport scraps general aviation business licence
of Globaltrans Air The Ministry
of Transport has issued a decision on scrapping the general aviation business
licence No. 01/2018/BGTVT-VT granted to Globaltrans Air Service JSC. Under the
decision, Globaltrans Air Service JSC is responsible for handling contracts
of carriage, financial obligations related to general aviation business in
line with legal regulations. Earlier, the
Civil Aviation Authority of Vietnam (CAAV) proposed the Ministry of Transport
scrap the general aviation business licence of Globaltrans Air JSC. Globaltrans
Air Service JSC was granted a general aviation business license by the
Ministry of Transport on April 17, 2018. However, the company has so far not
received the air operator’s certificate (AOC) from the CAAV. The
Government’s Decree No. 89/2019/ND-CP dated November 15, 2019 stipulates that
a general aviation business licence would be cancelled if the provider does
not receive the AOC in 36 months after the licence is granted. The CAAV
informed Globaltrans Air about the cancellation of the licence in line with
regulations, but it yet to receive any response from the company. Globaltrans
Air was established in July 2014 in Ho Chi Minh City with charter capital of
100 billion VND (over 4.37 million USD). Previously,
the Transport Ministry granted a general aviation business licence to
Globaltrans Air in April 2015, and extended the license in April 2018. According to
CAAV, Vietnam currently has four businesses operating in the general aviation
industry and meeting requirements of the licence, comprising Vietstar
Airlines, Green Planet Airways JSC, Vietnam Helicopter Corporation and Hai Au
Aviation JSC. Finance ministry issues new law for Debt and Asset Trading
Corporation The Ministry
of Finance has just issued a document on the financial regulations of Viet
Nam's Debt and Asset Trading Corporation (DATC), effective from September 15,
2021. Under
Circular 62/2021/TT-BTC, DATC is entitled to establish ownership, management
and use rights over debts and assets it purchased and received; perform the
management, use and accounting of debts and assets according to the
provisions of this circular and the current provisions of relevant laws. Each debt
DATC purchased is identified as a commodity. The corporation is responsible
for organising the accounting and tracking of each purchased debt. For debts
and assets received from enterprises with 100 per cent charter capital held
by the State, the corporation manages, monitors the assets, reports the
financial situation to the State and handles the assets in accordance with
the provisions of the circular. The
conversion of debt into contributed capital of enterprises with 100 per cent
of charter capital owned by the State shall be carried out according to a
written plan approved by the competent authority. For other
enterprises, the conversion of debt into contributed capital shall comply
with the principle of agreement between DATC and the owner of the
enterprises. DATC will
divest within 5 years from the date DATC officially becomes a shareholder in
enterprises with dominant capital contribution through restructuring. In case
DATC has not divested after 5 years, DATC has to report the cause and propose
handling measures to the Ministry of Finance. As for
capital use, the corporation is entitled to actively use its own capital to
serve business activities, ensuring efficiency, preservation and development
of capital and in accordance with the provisions of law. DATC must prioritise
resources to support the restructuring, arrangement over the ownership
conversion of enterprises with 100 per cent of charter capital owned by the
State. DATC also
can use capital to invest outside the corporation, buy debts and assets for
business purposes in accordance with the provisions of law and this
regulation. DATC is responsible for the efficiency of buying, selling and
handling debts and assets according to the market mechanism. The
corporation uses capital to perform tasks assigned by competent authorities
in accordance with the corporation's business lines. It uses its operating
capital to repair and upgrade assets for the purpose of increasing value and
facilitating the settlement of assets to recover capital. DATC is
responsible for preserving and developing the State capital invested in
enterprises in accordance with the law. The preservation of capital of the
enterprises is carried out by the following measures: use and manage capital
and assets, distribute profits, buy property insurance, promptly handle the value
of lost assets, irrecoverable debts and set up provisions for risks in
accordance with the provisions of this circular. Programme promotes India-Mekong Sub-region cross-border trade A programme
to promote cross-border trade connectivity between India and countries in the
Greater Mekong Sub region (GMS) was jointly held by trade promotion agencies
of Vietnam, India, Thailand and Cambodia on August 19. The
programme is part of activities of the Mekong - India SME
Internationalisation Programme funded by the Asian Development Bank (ADB) to
integrate small and medium-sized enterprises (SMEs) of India and GMS member
countries into global value chains and promote the India-GMS trade
connectivity. At the
event, representatives of Vietnam, India, Thailand and Cambodia briefed on
the business environment in their respective countries and shared experience
in how to facilitate trade and investment cooperation between the countries. Citing data
from the Vietnam Association of Small and Medium-sized Enterprises, deputy
head of the Trade Promotion Agency of Vietnam Bui Thi Thanh An said Vietnam
has about 700,000 SMEs, accounting for about 97.5 percent of the total number
of enterprises and contributing up to 45 percent of the gross domestic
product (GDP). The level of
internationalisation of Vietnam has greatly improved since its economic
reforms in the late 1980s, An said, noting that the country has officially
joined and signed 14 valid free trade agreements (FTA), and one is about to
take effect, while engaging in negotiations on two others. Vietnam is
currently one of the countries in the world that exports many important
commodities such as rice, coffee, pepper, seafood, footwear, garments and
electronics, while its imports mainly focus on commodity groups serving
production and export. Two-way
trade between Vietnam and India grew strongly in the first seven months of
2021, hitting 7.46 billion USD, with Vietnam's exports surged 31.78 percent
year-on-year to 3.4 billion USD and imports 63.7 percent to 4.06 billion USD. Programme
promotes India-Mekong Sub-region cross-border trade hinh anh 3 Participants
said amid the complicated development of COVID-19 pandemic, governments
should take measures to help their SMEs to move beyond national borders and
expand markets. According to
An, SMEs face many competitive challenges and vulnerability in international
trade. Vietnam has issued many policies to support SMEs to overcome
difficulties and promote their potential and strengths. However, due
to its limited resources, the Vietnamese Government always wishes to receive
support from international institutions, especially large institutions such
as ADB, she said. Joint
Secretary of the Ministry of Micro, Small and Medium Enterprises of India
AlkaNangia Arora said in the context of the COVID-19 outbreak, businesses of
countries need to optimise technology to connect with each other because they
are all part of international supply chains. Representatives
of Cambodia and Thailand expressed their hope that countries would
successfully cooperate in the Mekong - India SME Internationalisation
Programme. Domestic Advisory Group set up under EVFTA
Minister of
Industry and Trade Nguyen Hong Dien has signed a decision on the
establishment of a Domestic Advisory Group (DAG) under Article 13.15 of
Chapter 13 on Trade and Sustainable Development, the EU-Vietnam Free Trade
Agreement. The DAG
operates as a forum and has neither legal status nor its own stamp and bank
account. It will operate in a self financing mechanism. The DAG has
the function and task of collecting and presenting viewpoints, making
recommendations, advice and feedback relating to the implementation of the
chapter on trade and sustainable development in the EVFTA. Those
viewpoints and recommendations will be submitted to the EVFTA’s Committee on
Trade and Sustainable Development. Members of
the DAG Vietnam are associations, non-governmental organisations and
non-profit organisations of Vietnam, which operate legally in Vietnam and
represent legitimate interests related to trade and sustainable development
in Vietnam. The list of
members of DAG Vietnam issued in the decision’s appendix comprises the
Vietnam Chamber of Commerce and Industry (VCCI), the Institute for Workers
and Trade Unions under the Vietnam General Confederation of Labour (VGCL) and
the Centre for Sustainable Rural Development. 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 by the Vietnam Trade Promotion Agency of the
Ministry of Industry and Trade, the Vietnamese Embassy and the Vietnam Trade
Office in Singapore. 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
Vietnam'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 sea food, canned food. The expo is
a great effort of the MoIT 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 Vietnam and Singapore, and a offline business-to-business
(B2B) matching event will be organised, enabling businesses of both sides to
interact and exchange information on benefits of free trade agreements,
products and other business procedures. Shares climbs on the expiration date of future contracts On the Ho
Chi Minh Stock Exchange, the VN-Index increased 1.02 per cent to close the
day at 1,374.85 points. The southern bourse’s index decreased slightly in the
two previous sessions. Large caps
in the VN30 basket (which tracks the top 30 shares by market value and
liquidity) gained value in the last trading minutes. The most influential
stocks included Vingroup (VIC) which climbed more than 6 per cent;
Vietcombank (VCB), up 1.8 per cent; Vinhomes (VHM), up 0.9 per cent;
steelmaker Hoa Phat Group (HPG), up 1 per cent; Masan Group (MSN), up 1.3 per
cent; Vietnam Rubber Group (GVR), up 3.3 per cent; and Saigon Securities Inc
(SSI), up 4.2 per cent. According to
market insiders, Thursday is the expiration date for listed derivative
contracts so the market saw significant fluctuations in the VN30 shares. The VN30
Index increased 1.04 per cent to 1,505 points but the VN30F2108 closed five
points lower than VN30 at 1,500 points. Besides
large-caps, money was also poured into shares of securities firms, property
developers and chemical-plastic manufacturers. These sectors increased by an
average of more than 2 per cent on Thursday, according to data on the
vietstock.vn. Liquidity
was good with more than 728 million shares worth VND25.5 trillion (US$1.1
billion) traded here, up around 5 per cent in both volume and value compared
to the previous session. However,
prolonged net selling by foreign traders cast a shadow on the market.
Foreigners continued to offload shares worth a net value of VND669 billion in
the HCM City market. Their sales focused on SSI (VND703 billion) and Novaland
Investment (VND110 billion). However,
this value was still lower than the previous two sessions with a total net
sell value of VND1.4 trillion on Tuesday and VND1.9 trillion on Wednesday. According to
BIDV Securities Co, though foreign investors continued to be strong net sellers,
the current high liquidity will strengthen the supportive force of the
market. Meanwhile,
analysts at Agribank Securities Co advised investors to avoid disbursing in
large-caps which have increased substantially, especially stocks that are
being sold by foreign investors and exchange-traded funds to minimise risks
in the short term. On the Ha
Noi Stock Exchange, the HNX-Index edged up 0.36 points to 346.07 points. The
northern bourse’s index increased 0.5 per cent on Wednesday. More than
165 million shares worth VND4.1 trillion were exchanged on Ha Noi’s bourse on
Thursday. Foreign
traders turned to be net buyers here, picking up shares worth a net buy value
of VND247 billion. Realty stocks attract foreign investment funds The
securities market is witnessing foreign investment funds like Dragon Capital,
VinaCapital and PYN Elite Fund making transactions involving and big
investments in real estate stocks. An Gia Real
Estate Investment and Development Corporation has announced a group of
foreign investors managed by Dragon Capital have become its major
shareholders after a successful purchase of more than 7.8 million stocks from
the company. Meanwhile,
realty developer Nam Long Investment Corporation has unveiled information
about its issuance of 60 million stocks, whose listed buyers include seven
foreign funds such as Dragon Capital and PYN Elite Fund. A new report
by VNDIRECT Securities Corporation showed that the realty market will bounce
back when the pandemic is put under control. VNDIRECT
held that real estate supply is gradually recovering thanks to the easing of
legal policies. Meanwhile, the demand has been boosted by the recovery of the
market on a large scale. Home loan interest rates remain low and the speed of
infrastructure development accelerates. It is expected that the market is
likely to enter a favorable time from the fourth quarter of this year. According to
Agribank Securities (Agriseco), foreign direct investment (FDI) is projected
to grow strongly in the coming time as super corporations are gradually
stabilising after their restructuring under the impact of the COVID-19
epidemic. Vietnam is an ideal destination for FDI inflows given the current
wave of industrial production shifting. Large corporations such as Apple,
Samsung, and Foxconn are expanding factories in the country, generating
benefits for real estate businesses involved. Techwire Asia: Vietnam could become green energy powerhouse in
Asia Vietnam has
shown the world its capability to accelerate clean energy solutions, with the
highest installed capacity of solar power in Southeast Asia and the
government’s commitment to boosting energy supply and strong public demand
for improved air quality, the Malaysia-based Techwire Asia
website said in an article on August 19. According to
the tech news website, Vietnam recognises that the transition to green energy
has never been more urgent. As one of the fastest-growing economies in
Southeast Asia, the country has demonstrated its seriousness in pursuing
the green energy transition especially when it comes to
embracing solar power. The article
cited a World Bank’s report that said Vietnam now boasts the highest
installed capacity of solar power in Southeast Asia, generating 16,500MW
at the end of 2020. Separate statistics by the International Renewable
Energy Agency (IRENA), showed that Vietnam, as of the end of 2020, was within
the top 10 countries in the world with the highest capacity of solar energy
installed. The article
said considering the country’s high solar PV potential and its
ambitious green energy goals come 2050, Vietnam has all the means to become a
regional and global leader in renewables. It added that there is also a
strong case for wind power projects as well, considering that the country has
one of the best wind resources in Southeast Asia, with
an estimated potential of 311 GWs. Market
experts reckoned if Vietnam retains its lightning pace of renewable
energy expansion from the last two years, it will further climb the ranking,
potentially surpassing countries like Australia and Italy in renewable energy
development and innovative energy solutions, according to the article. It was of
the view that the Vietnamese Government's commitment to boosting energy
supply and strong public demand for improved air quality has been important
underlying drivers in this direction. Well-designed and executed
supporting regulations and policies such as feed-in-tariffs (FiT), tax
incentives, and waiver of land lease are also considered the underlying
factors driving renewable energy growth, especially solar, in the
country. The global
consultancy company McKinsey said while Vietnam’s current energy plan is
ambitious, it can become better. It concluded that a renewables-led
pathway can unlock a plethora of opportunities for the country, including
saving 10 percent of overall power costs, cutting down 1.1 GTs fewer
greenhouse gas emissions, and others. Publisher offers food for thought during pandemic As book
sales plummet during the COVID-19 lockdown, one of the leading publishers in
Viet Nam has made the unorthodox decision to sell food via its website. During the
pandemic, Ho Chi Minh City Book Distribution Joint Stock Company (Fahasa) has
had to close most of its 120 bookstores across the country except some in the
northern parts while revenue in July 2021 was only 30 per cent of the same
period last year. Though books
are considered essential food for the soul, they are not considered essential
during the pandemic, especially when people need food delivered to their
homes, so the publisher is now offering food on its website, which normally
sells books and stationery. Though it is
one of the most well-known publishers in the country, hot items on Fahasa are
no longer copies of War and Peace, but vegetables, fruit, eggs and others
foods. Living near
An Dong market in District 5, HCM City, Nguyen My Hanh, stopped shopping in
the market a month ago as she wants to protect her parents, who are over
80-years of age, from contracting the virus. Instead,
Hanh shops at different channels, including from the publisher. As a book
lover, Hanh told Viet Nam News: “It is both convenient and heartbreaking for
me to see that a publisher I like has to do this to stay open. They even
offered me a promotion code for buying food.” With more
than half of the bookstores of the publisher closed, chairman of Fahasa Pham
Minh Thuan said the online team was still active. Though he did not clarify
sales of food, he said: "E-commerce makes a big contribution to Fahasa's
revenue, more than VND30 billion (US$1.3 million) per month." According to
Pham Nam Thang, acting director of the publisher, its revenue in 2019 before
the pandemic was VND3.7 trillion. Thang told
Viet Nam News: "Though the food items do not much contribute to the
sales of the firm, we ran it to help people in the city to access food easily
with our online operation and storage system." Thang said
as Fahasa operated in 47 cities and provinces of Viet Nam and had been
developing the online platform for over three years, it had a distribution
advantage when it came to selling food. Another
player in market, Alpha Books, said their revenue in the first 6 months of
the year only reached 84 per cent compared to the same period in 2020, while
Nha Nam Culture and Communication Joint Stock Company closed six bookstores,
with its revenue only reaching 76 per cent compared to the same period in
2020. Though not
all selling food like Fahasa, online book sales have helped publishers to
ease the difficulties during the pandemic. Big chains such as Phuong Nam
Bookstore, Thai Ha Bookstore, Nha Nam and Chibooks announced that their
online revenues increased by 10 to 20 per cent. Thanks to
strong promotions on social networks with livestreams, as well as videos on
Facebook, YouTube, Zalo, books are continuing to sell well online. According to
incomplete statistics from the first half of the year, buying and selling
books on e-commerce platforms such as Tiki, Lazada, Shopee has become main
channel, accounting for over 65 per cent of the market. As well as
selling food, Fahasa also works with schools across the country to deliver
textbooks to student homes in the pandemic in case they have to study from
home in the coming school year. Programme promotes India-Mekong Sub-region cross-border trade A programme
to promote cross-border trade connectivity between India and countries in the
Greater Mekong Sub region (GMS) was jointly held by trade promotion agencies
of Vietnam, India, Thailand and Cambodia on August 19. The
programme is part of activities of the Mekong - India SME Internationalisation
Programme funded by the Asian Development Bank (ADB) to integrate small and
medium-sized enterprises (SMEs) of India and GMS member countries into global
value chains and promote the India-GMS trade connectivity. At the
event, representatives of Vietnam, India, Thailand and Cambodia briefed on
the business environment in their respective countries and shared experience
in how to facilitate trade and investment cooperation between the countries. Citing data
from the Vietnam Association of Small and Medium-sized Enterprises, deputy
head of the Trade Promotion Agency of Vietnam Bui Thi Thanh An said Vietnam
has about 700,000 SMEs, accounting for about 97.5 percent of the total number
of enterprises and contributing up to 45 percent of the gross domestic
product (GDP). The level of
internationalisation of Vietnam has greatly improved since its economic
reforms in the late 1980s, An said, noting that the country has officially
joined and signed 14 valid free trade agreements (FTA), and one is about to
take effect, while engaging in negotiations on two others. Vietnam is
currently one of the countries in the world that exports many important
commodities such as rice, coffee, pepper, seafood, footwear, garments and
electronics, while its imports mainly focus on commodity groups serving
production and export. Two-way
trade between Vietnam and India grew strongly in the first seven months of
2021, hitting 7.46 billion USD, with Vietnam's exports surged 31.78 percent
year-on-year to 3.4 billion USD and imports 63.7 percent to 4.06 billion USD. Participants
said amid the complicated development of COVID-19 pandemic, governments
should take measures to help their SMEs to move beyond national borders and
expand markets. According to
An, SMEs face many competitive challenges and vulnerability in international
trade. Vietnam has issued many policies to support SMEs to overcome
difficulties and promote their potential and strengths. However, due
to its limited resources, the Vietnamese Government always wishes to receive
support from international institutions, especially large institutions such
as ADB, she said. Joint
Secretary of the Ministry of Micro, Small and Medium Enterprises of India
AlkaNangia Arora said in the context of the COVID-19 outbreak, businesses of
countries need to optimise technology to connect with each other because they
are all part of international supply chains. Representatives
of Cambodia and Thailand expressed their hope that countries would
successfully cooperate in the Mekong - India SME Internationalisation
Programme. Australia delays conclusion on anti-dumping probe into Vietnam’s
painted steel strapping The
Anti-Dumping Commission of Australia (ADC) has announced the fifth extension
of time granted to issue the final report on an investigation into the
alleged dumping and subsidisation of painted steel strapping from China and
Vietnam. Accordingly,
the due date for the final report issuance is now extended to October 26,
2021, the Trade Remedies Authority of Vietnam cited the ADC notice. The ADC also
officially concluded that the Sam Hwan Vina Co. Ltd, the largest Vietnamese
exporter in this investigation, No 553, has dumped painted steel strapping,
but the dumping margin is less than 2 percent, so it decided to terminate the
probe into this firm. With an
export turnover of about 4.6 million USD, the Sam Hwan Vina Co. Ltd accounts
for 83 percent of Vietnam’s exports of the product, the authority said. Meanwhile,
the investigation into the remaining businesses of China and Vietnam will
continue. The ADC is
due to report to the Minister for Industry, Science and Technology in respect
of this investigation on or by 26 October this year. The applicant for this
probe may request a review of the decision within 30 days of the notice
publication, according to the ADC. Vietnam’s wood product export to France, Europe has good
prospect The export
of Vietnam’s wood industry to France and Europe at large have ample room for
growth, according to the Agency of Foreign Trade at the Ministry of Industry
and Trade. Vietnam is
currently the sixth largest provider of wooden furniture in France, but only
makes up 4.5 percent of the European nation’s total import values. The Agency
of Foreign Trade cited data from the International Trade Centre showing that
France’s imports of wooden furniture surged by nearly 60 percent against the
same period last year to 2.4 billion USD in the first six months of 2021. Experts
forecast that Vietnam’s timber and wood product exports to Europe will surge
in the latter half of 2021. By that time, COVID-19 is expected to be brought
under control and European countries are projected to loosen restriction
measures and facilitate trade flows. The recovery
of the European economy will be a driving force for Vietnam's export of
timber and wooden products to the market. In addition,
the European Union - Vietnam Free Trade Agreement (EVFTA) is hoped to benefit
the sector thanks to the removal of non-tariff barriers and facilitation of
the import of advanced equipment, thus improving productivity and competitive
edge of Vietnam’s wood industry in the European market. Commercial banks urged to meet rate cut commitments The State
Bank of Vietnam (SBV) has requested commercial banks to reduce lending
interest rates as per previous commitments. Under
recently released Official Dispatch No. 5901/NHNN-TD, the SBV
requires the interest rate cut and free banking service provision to
support customers affected by the COVID-19 pandemic. SBV’s Deputy
Governor Đào Minh Tú said the central bank would strengthen supervision of
the implementation of the dispatch. Accordingly,
the governor has directed the chairmen of the board of directors and the
general directors of commercial banks to take responsibilities towards
society and join forces with the Government to repel the pandemic and support
people, businesses and the economy to overcome difficulties through effective
and practical solutions such as reducing interest rates and fees. Tú called
for commercial banks to meet their commitments on reducing lending rates,
which they had registered with the Vietnam Banks Association in Official
Dispatch No. 248/NHNN-PLVN dated July 16, 2021, to maintain the reputation of
each bank and the whole banking industry. The latest
dispatch of the SBV noted that the implementation of programmes to reduce
interest rates and service fees should be substantive and effective with
specific results. Banks must make public their policies and inform customers
specifically about the policy of reducing interest rates and service fees so
that customers can access the banks' support policies. The SBV said
it would make public the implementation results of each bank's commitments in
the media every month. Besides, it would strengthen supervision of the
commitments of the entire commercial banking system and each commercial bank
branch in provinces and cities nationwide. According to
Tú, besides restructuring due debts and interest, and keeping the debt
classification unchanged, lowering interest rates is one of the most
practical and specific solutions to supporting businesses right now. Since
the latest outbreak of the pandemic, commercial banks made interest rate
cuts worth about VNĐ18.83 trillion for businesses, according to
preliminary statistics. Following
the direction of the Government and the Prime Minister, the SBV has directed
commercial banks to share responsibility and accompany businesses by further
reducing interest rates after trying to minimise operating costs and
reducing their own profits. The SBV
noted commercial banks are also businesses, but at this time, sharing with
businesses and the people is the common responsibility of the whole of
society, each bank and each bank employee. Previously,
under the SBV’s direction, the Vietnam Banks Association held a meeting with
the participation of 16 commercial banks who voluntarily agreed to cut
interest rates of about VNĐ20.3 trillion from now until the end of this year,
depending on the size of the bank, to support the economy. Besides the
general support package, four large State-owned commercial banks -
Vietcombank, VietinBank, Agribank and BIDV - promoted a pioneering role
in the banking system, committing to make a further interest rate cut worth
about VNĐ1 trillion each to aid businesses and people in HCM City, Bình Dương
and other cities and provinces that have been facing the most difficulties
due to the pandemic. The four
banks will also offer free fees for all banking services for people and
businesses in the localities. Besides
interest rate cuts, the SBV has also been directing credit institutions to
reduce fees for payment, money transfer and other credit and monetary
services for businesses, in a package which has been estimated to be
worth about VNĐ1.1 trillion to date. ST25 rice faces scarcity of supply source in US Despite the
price of Vietnamese ST25 rice not witnessing a significant increase, there
remains a scarcity of supply source in the United States. A
representative of the US’ Great Wealth revealed that a shortage of supply
source of ST25 rice has developed after five months of being distributed to
consumers throughout the East Coast. This
situation can be attributed to difficulties faced during the transportation
process which has caused high costs and late delivery. The rental
cost of one container to transport rice from the nation to the US stands at
approximately US$22,000, representing a four-fold increase compared to the
period at the end of March. Currently,
it is possible to keep the price of ST25 rice relatively stable over the
short term as there remains a stock of ST25 rice available in bonded
warehouses of importers. According to
several export enterprises, in order to meet the increasing demand among
consumers in the East Coast region for ST25 rice, there should be between six
and seven containers of rice per month. However, the supply capacity of
export businesses has been reduced by nearly two-third. Nguyen Manh
Hung, director of the Vietnam Trade Center in New York, said the ongoing
complicated developments relating to the COVID-19 pandemic in southern
Vietnamese provinces has caused difficulties in the process of harvesting and
producing rice. Furthermore,
there remains a shortage of empty containers originating from Asia which has
led to high transportation costs emerging, thereby negatively affecting
Vietnam's agricultural exports. According to
statistics compiled by the General Department of Vietnam Customs, the country
exported 7,675 tonnes of rice worth US$5.8 million to the US market during
the five months of the year. However,
Vietnamese rice revenue in the fastidious market remains modest compared to
regional peers such as India and Thailand. Growth prospects in rest of 2021 under the microscope Many sectors
with impressive second-quarter performance are expected to retain their
growth momentum in the latter part of 2021, leveraging favourable supportive
factors. Accordingly,
Vietnam had witnessed 24 per cent growth in export-import value on-year in
the first quarter and a 39 per cent jump in the second quarter, even
surpassing pre-pandemic levels. This is, however, not unique to Vietnam but
is reported across the entire Asia region. Generally in
the first six months of 2021, Vietnam posted an estimated $157.6 billion in
total export value, up 28.4 per cent on-year. During the period, the US was
Vietnam’s largest export market with $45.1 billion, a 43.3 per cent jump
on-year, while exports to the EU amounted to $19.3 billion, up 17.4 per cent. A rebound in
consumer demand in Vietnam’s top export markets like the US and the EU has
benefited export-oriented sectors like seaport and logistics. Le Nguyen
Nhat Chuyen, analyst at Korean-backed Maybank Kim Eng Securities, said that
the COVID-19 pandemic has caused serious disruptions in logistic services,
leaving seaports overloaded. Social
distancing has caused a shortage of manpower and slowed down goods
circulation. Many countries have imported more than they exported, leading to
an imbalance in container supply, pushing logistics costs to new heights. Shipping
disruptions abounded in 2021 due to the COVID-19 pandemic and the staggered
reopening of markets across the globe, holding up shipping firms. The COVID-19
situation, however, is intensifying in Vietnam, forcing many factories to
operate at reduced capacity while facing labour shortages, making timely
delivery difficult. Meanwhile,
in the fertiliser sector, domestic prices were affected by the price of
imported fertiliser which went up sharply on the back of soaring logistics
(shipping) costs. Self-reliant
fertiliser businesses like PetroVietnam Fertiliser and Chemicals Corporation
(DPM) and PetroVietnam Ca Mau Fertiliser JSC (DCM) will be able to maintain
high-profit growth in successive quarters. At the same
time, leveraging a rebound in consumer demand, many textile, clothing, and
fibre firms reported upbeat profits thanks to increasing order intake and
prices in the first half. Leading players have received export orders for the
whole of 2021 from the US, Japan, EU, or South Korean markets. In addition,
thanks to Vietnam’s reputation gained from containing the previous resurgence
of the COVID-19 pandemic, a raft of global fashion brands have shifted
production to Vietnam when the pandemic was taking a toll in big apparel
exporting countries like India and Bangladesh. The COVID-19
situation, however, is intensifying in Vietnam, forcing many factories to
operate at reduced capacity while facing labour shortages, making timely
delivery difficult. The Vietnam
Textile and Apparel Association (Vitas) assumed that businesses in virus-hit
localities could lose export orders. Pressure would abate with the
acceleration of the government’s COVID-19 vaccination programme, from there
containing the pandemic and enabling firms to rebound operations. The seafood
sector is another beneficiary, with leading players like Vinh Hoan
Corporation (VHC) or Sao Mai Group (ASM) posting double-digit growth in their
revenue in H1. The cost burden, particularly logistics cost, however, has put
a dent in the firms’ profits, leading to only modest growth. According to
the Vietnam Industry and Trade Information Centreunder the Ministry of
Industry and Trade, Vietnam’s big export markets like the US, UK, Japan, the
EU, Canada, and China gradually overcoming COVID-19 through extensive
vaccination would lead to a sharp rise in seafood import demand. Vinh Hoan
Corporation, the largest pangasius exporter in Vietnam, reported that its
exports to the US rose 31 per cent on-year in July as restaurants reopened in
the market resumed operation. Accordingly, the company posted VND765 billion
($33.2 million) in revenue in July, a 21 per cent jump on-year. Wood
production is also looking at upbeat growth potential. According to the
General Department of Customs, the value of Vietnam’s wood and wood product
exports soared 55 per cent on-year reaching $9.58 billion in the first seven
months, with the export of wooden items coming to $7.44 billion, a 64 per
cent jump. By early
July 2021, Duc Thanh Wood Processing JSC (GDT), a leading player based in Ho
Chi Minh City, has received export orders of more than $14.5 million, taking
up 86 per cent of the order intake for 2021.The company has raised the price
of their products from Q2 to mitigate rising input cost. Similarly,
residential real estate is showing solid growth potential in the medium and
long-term, powered by accelerated public disbursement for infrastructure
projects. However,
residential real estate projects finalise profit after product handover.
Accordingly, businesses with effective sale activities and those that can
maintain construction progress are expected to report positive results. Meanwhile,
the building materials sector, particularly steel, will also benefit from
public investment. Experts at SSI Securities assumed that accelerated public
investment will drive up steel demands. US - largest buyer of Vietnam’s plastic products in H1 The US was
the top destination of plastic products from Vietnam in the first half of
2021, accounting for 36.5 percent of total shipments, according to the
General Department of Vietnam Customs. Vietnam
recorded a year-on-year surge of 41.5 percent in the H1 export value of
plastic products, which approximated 2.33 billion USD, preliminary statistics
show. Following
the US, Japan was the second largest importer of these items, making up 14.3
percent. The Ministry
of Industry and Trade said FDI companies are the main exporters of plastic
products when they hold 60 percent of the turnover. Meanwhile,
local businesses have just sold plastic packaging bags, components, and spare
parts that have low added value to foreign partners./. 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 by the Vietnam Trade Promotion Agency of the
Ministry of Industry and Trade, the Vietnamese Embassy and the Vietnam Trade
Office in Singapore. 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
Vietnam'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 sea food, canned food. The expo is
a great effort of the MoIT 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 Vietnam and Singapore, and a offline business-to-business
(B2B) matching event will be organised, enabling businesses of both sides to
interact and exchange information on benefits of free trade agreements,
products and other business procedures./. Offshore wind in Vietnam: lack of rules on environmental impact
assessment Local
experts have warned that Vietnam lacks regulations on environmental impact
assessment (EIA) for offshore wind power projects despite lots of potentials. Review on
Vietnam’s law regarding EIA shows that regulations on project examination
remain brief and general without full guidance for offshore wind projects,
experts said at the online conference titled “Offshore wind development in
Vietnam: Environmental and social impact assessment regulations” held on
August 18. At the
event, policymakers, researchers, businesses, and international organizations
exchanged views on the prospects of offshore wind power but they had
multidimensional discussions about environmental and social impact assessment
regulations in Vietnam. An
insufficient legal document has resulted in differences between domestic EIA
and international standards, Cao Thi Thu Yen from the Vietnam Initiative for
Energy Transition (VIET). Offshore
wind power projects occupying a vast area might overlap with other activities
in oil and gas exploitation, telecommunications, and habitat of seabirds,
fish, corals, among others, she said. Investors,
therefore, should consider environmental and social regulations for good
compliance in addition to information on investment cost and license time,
Yen suggested. Associate
Prof. Nguyen Chu Hoi, deputy head of the Vietnam Fisheries Society (VINAFIS),
stressed the importance of selecting projects that harm the maritime
environment, ecology, and fishing. Therefore, concise and detailed
regulations will enable the authorities to do that in an easy way. “Importantly,
environmental impact assessment must be done carefully, for example, on how
the impact of underwater sound on corals and sea creatures is and how to
avoid overlapping development of wind power, oil and gas, and fishing,” Hoi
noted. Sharing the
same idea, Deputy General Director of Russia-Vietnam Joint Venture
(Vietsovpetro) Vu Mai Khanh said the role of state agencies in verifying EIA
and supervising the projects is essential to the development of the projects. Andy Ho,
head of Government and Regulatory Affairs, Asia-Pacific New Markets at Danish
multinational power company Ørsted A/S, recommended that there should issue
EIA that is in line with international standards to facilitate the
investment. Yen from
VIET stressed the need to issue a legal document that meets international
standards to make EIA the foundation for the authorities’ decisions on
licensing and supervising offshore wind power projects. According to
the World Bank’s “Offshore Wind Roadmap for Vietnam” report released a few
months ago, offshore wind likely contributes 12% to Vietnam’s power by 2035. Offshore
wind is projected to supply between 5% and 12% of Vietnam’s electricity needs
by 2035 in two possible growth scenarios built by the World Bank (WB). It’s
equivalent to 11 GW and 25 GW by 2035 in the low and high growth scenarios,
respectively. The World
Bank’s experts made some recommendations for the successful offshore wind
industry in Vietnam, including stable policies and pipeline visibility; a
coherent industrial strategy; resourced institutions; competitive
environment; supportive and engaged public; a commitment to safety; and using
the best locations. Vietnam can
accelerate offshore wind projects rapidly over the next few years. The
success of this acceleration will depend on the clarity of the government’s
long-term ambition and the actions that the government takes to facilitate
growth, they said. Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes |
Không có nhận xét nào:
Đăng nhận xét