VIETNAM BUSINESS NEWS SEPTEMBER 11
09:50
Hanoi tax authorities collect taxes from Google and
Apple content developers
The Hanoi Department of Taxation
have collected over VND39 billion (USD1.69 million) from content developers
on Google and Apple during the first seven months of this year. The Hanoi
Department of Taxation have collected over VND39 billion (USD1.69 million)
from content developers on Google and Apple during the first seven months of
2021. Illustrative photo According to
the department, they have collected taxes from 392 people that provide
content services on various applications including Google Play and Apple
Store. The
department have collected VND 203 billion (USD8.83 million) in taxes from
these content developers since 2018. The
municipal tax authorities are also seeking to collect more taxes from online
businesses. They are checking on the information of 32,085 businesses that
are using online delivery services and 756 housing rental businesses. The
department has co-operated with banks and delivery service providers to
monitor the online businesses for tax collection. Vietnam enjoys major trade surplus with UAE Vietnam enjoyed
a trade surplus of over 2.5 billion USD with the UAE in the first
seven months of this year, according to the Vietnamese Trade Office in UAE. The UAE is
one of Vietnam’s ten largest importers globally and its biggest trade partner
in the Middle East and Africa, and Vietnam has boasted the trade surplus with
the country for years. Latest data
from the General Department of Customs shows that the two-way trade hit
nearly 3.1 billion USD in the first seven month of the year, a year-on-year
increase of 37.8 percent. Vietnam’s exports to the UAE totalled 2.8
billion USD during the period, up 40.8 percent year on year; while imports
exceeded 286 million USD, up 13.3 percent. Mobile
phones and parts made up the largest share of the exports, with total value
reaching 1.85 billion USD, surging 48.1 percent year on year. It was followed
by computers, electronics and components at 264.4 million USD, up 17.4
percent; and machinery, equipment and parts, 148.1 million USD and 43.1
percent. The highest
growth was seen in the shipments of cashew nut which were valued at 23
million USD, tripling the same period last year’s figure. It was followed by
pepper which recorded export revenue of close to 40 million USD, up 185
percent. The UAE is
likely to be a very promising market for Vietnamese exporters in the coming
years. The bilateral trade is expected to reach 5 billion USD this
year./. Shares advance but bank stocks pressure indices Viet Nam's
benchmark VN-Index gained slightly on Friday, supported by the rise of
heavyweight stocks, but the VN-Index failed to conquer 1,450 points as some
other blue-chips in the banking group dropped pressuring the indices. On the Ho
Chi Minh Stock Exchange, the VN-Index increased 0.1 per cent to close at
1,345.31 points. The index
had increased 0.78 per cent to close Thursday at 1,343.98 points. Nearly 599
million shares worth VND19 trillion (US$835.8 million shares) were traded on
the southern exchange. The market
breadth was positive as 194 stocks declined, while 213 rose and 43 ended
flat. The 30
biggest stocks tracker, VN30-Index, rose 0.07 per cent to finish at 1,448.33
points. Of the VN30
basket, 10 stocks increased while 15 decreased. In the VN-30
basket, Phu Nhuan Jewelry (PNJ) gained 3.9 per cent, followed by insurer Bao
Viet Holdings (BVH) and Vincom Retail (VRE) rising 2 per cent. VPBank
(VPB), beer producer Sabeco (SAB) and dairy firm Vinamilk (VNM) all advanced
above 1 per cent. Hung Vuong Joint
Stock Corporation (HVG), Angiang Fisheries Import Export JSC (AGF) and Kien
Hung JSC (KHS) were the most prominent stocks in the seafood industry, all
reaching the ceiling prices. I.D.I
International Development & Investment Corporation (IDI) bounced back
more than 6 per cent and is heading to the old peak of January 2021. Minh Phu
Corporation (MPC) and Sao Ta Foods Joint Stock Company (FMC) both surpassed 4
per cent. On the other
side, banking stocks lost ground and put pressure on the market, with losers
including Vietcombank (VCB), Military Bank (MBB), Tien Phong Bank (TPB),
Sacombank (STB), Vietinbank (CTG) and HDBank (HDB). “After
yesterday's correction, the market struggled in the morning but gained at the
end of the afternoon,” said BIDV Securities Co. “Market
breadth turned positive with reduced liquidity compared to the previous
session, showing signs of positive sentiment again when the market touched
the support level of 1,330 points. Meanwhile, foreign investors were net
sellers on both HoSE and HNX. The recovery at 1,330 points is supporting the
recovering trend back to 1,350 points," it said. Foreign
investors net sold VND538.92 billion on HOSE. They were net sellers on HNX
with a value of VND357.67 billion. On the Ha
Noi Stock Exchange, the HNX-Index lost 0.11 per cent to end at 350.05 points. Some 121
million shares worth nearly VND2.4 trillion were traded on the northern
exchange. Top legislator receives Salo mayor, international entrepreneurs National
Assembly Chairman Vuong Dinh Hue discussed educational and business
cooperation with the mayor of Salo city in Finland and leaders of some
international corporations during meetings in Helsinki on September 10 as
part of Hue’s official visit to Finland. Talking to
Mayor Tero Nissien and representatives from universities and firms in Salo,
Chairman Hue expressed his support for stronger partnership in cooperation
and training between Vietnam and Finland, as education is a strength of the
Northern European nation. He noted
that nearly one quarter of the 11,000-strong Vietnamese community in Finland
are students (2,500), and the figure is expected to further rise. Hue also
informed his guest that during his meetings with the President, the Speaker
of the Parliament and the Prime Minister of Finland, the two sides reached
consensus on promoting Vietnam-Finland cooperation across the fields,
including education. Mayor
Nissien said hundreds of Vietnamese students are studying at Turku University
in his city. He said Vietnamese students are hard working and capable, who
also contribute to strengthening the cooperation between the two countries. The mayor
noted the high economic growth rate and the potential of Vietnam, saying that
he hopes to expand ties with the Southeast Asian nation in innovation, business
administration, tertiary education and distance health care. Meanwhile,
at their meetings with the Vietnamese legislative leader, executives of
several international corporations operating in health care, education and
energy expressed their wish to expand production and business activities in
Vietnam. They said they are ready to collaborate with Vietnamese partners to
supply or produce quality medical supplies for COVID-19 prevention and
control at reasonable costs. The corporations are also willing to share
experience with Vietnam in the fields of education, startup and renewable
energy. Talking to
Peter Vesterbacka, Chairman and co-founder of Finest Future, an Espoo-based
organization specializing in education and startup, Hue appreciated Finest Future’s
engagement in education, innovation and startup projects in Vietnam,
including a scholarship programme for Vietnamese students. He said
Vietnam attaches importance to science-technology and innovation, and asked
the Chairman and co-founder of Finest Future to collaborate with Vietnam in
those fields. At his
meeting with executive officers of Gerbion group, which is working with Vietnam’s
T&T group in a joint programme in purchasing and transferring technology
for producing rapid COVID-19 PCR test devices, NA Chairman Hue said he
supports the group’s business and investment strategy in Vietnam. Meanwhile,
leaders of the French group NG Biotech told the Vietnamese NA leader that the
group is building a factory producing rapid testing kits in Vietnam with the
intention to help Vietnam cope with the current difficulties in pandemic
control and set up long-term partnership with Vietnamese partners. Chairman Hue
also received representatives from Wärtsilä, a Finnish company leading the
world in marine and energy smart technology and solutions, the JAKS Resources
Berhad of Malaysia, and HIPRA group of Spain./. VNPT, Nokia sign cooperation agreement on digital infrastructure
development
National
Assembly Chairman Vuong Dinh Hue and Speaker of the Finnish Parliament Anu
Vehvilainen on September 10 witnessed the signing of a cooperation agreement
between the Vietnam Posts and Telecommunications Group (VNPT) and Nokia
Corporation on the upgrade and development of VNPT's digital infrastructure. The signing
of the deal took place within the framework of the top Vietnamese
legislator’s on-going official visit to Finland. Under the
agreement, the two sides agreed to strengthen strategic cooperation to
upgrade the capacity of backbone and core networks, develop 4G, 5G, and IoT
platforms, continue commercial testing of 5G service, and cooperate in
developing and applying new networking technologies. The deal is
expected to open up many potential opportunities related technological
solutions for corporate customers. The two
sides will also consider the possibility of cooperation in other fields in
the time to come. Earlier, NA
Chairman Hue received Nokia’s leaders, during which he revealed that Vietnam
is currently speeding up digital transformation and developing the digital
economy. He suggested
Nokia enhance cooperation with Vietnam businesses in this field, adding that
by investing in Vietnam, Nokia can expand its investment in other ASEAN
countries. Nokia’s
leaders affirmed that the corporation will effectively carry out the freshly
signed agreement and wants to maintain long-term operations in
Vietnam./. Project looks to bolster Vietnam’s dragon fruit exports to
Europe A project to
improve the quality of tropical fruits grown in Vietnam sponsored by the
Dutch government has kicked off, offering chances for sustainable exports of
dragon fruit to the challenging market of Europe. Vietnam’s
dragon fruit growing areas have been quickly expanded over the years to about
60,000ha. At present, consumption of the fruit heavily depends on the Chinese
market. The project
aims to enhance chances for exports of the fruit to the European market,
heard a recent webinar arranged by an affiliate of Eurofins Scientific
testing laboratories company. It is also
hoped to support farmers to apply right farming methods to meet technical
standards of European importers, as well as connect importers in the
Netherlands and tropical fruit growers in Vietnam. The project
focuses on introducing tools, solutions and technology to help farmers enjoy
higher yield. Of note, it
will apply Eurofins Scientific’s quality testing technology on soil for
dragon fruit cultivation, along with in-field activities on farming
techniques based on its own recommendations and process. Outcomes will be
publicised widely. Together
with products’ quality and a trustworthy long-term supply planning, control
over the use of pesticide is an important factor for the exports of dragon
fruit to Europe. Vietnamese
exporters are advised to learn of eligible substances and the accurate amount
required by each importer so as to inform fruit growers. In addition
to the Netherlands, countries in western and eastern Europe are viewed as
potential importers of Vietnam’s dragon fruit. The project,
runs until March 2024, is to support four Vietnamese southern provinces -
Binh Thuan, Long An, Ben Tre and Dong Thap - to improve the quality of three
local tropical fruits - dragon fruit, mango and grapefruit - for exports to
the European market./. Ukrainian city hopes to bolster cooperation with Vietnam Vietnamese
Ambassador to Ukraine Nguyen Hong Thach recently visited and had working
sessions with leaders and businesses of Chernihiv city. Leaders of
Chernihiv said the Ukrainian city boasts strengths in export of farm produce,
agricultural machinery and bunker gear. Such products are being shipped to
some Southeast Asian nations, but have yet to gain a foothold in the
Vietnamese market. Local
authorities voiced a hope that the Embassy of Vietnam in Ukraine will help
connect the countries’ firms by taking into account the holding of a virtual
business forum in tandem with COVID-19 prevention and control. Chernihiv
has set up sister city relations with two Vietnamese localities of Can Tho
and Ca Mau, and will work to renew fields of cooperation and stand ready to
create the optimal conditions for Vietnamese firms to cooperate and invest in
the Ukrainian city. For his
part, Thach said economic-trade cooperation between Vietnamese localities and
Chernihiv remains modest compared to their potential. The two
sides need to arrange trade promotions and diversify export items, he stated,
agreeing on the organisation of a business forum in the coming time. Then, the
Vietnamese diplomat worked with two major businesses of Chernihiv in animal
husbandry, meat processing and farm produce export, which are hoping to ship
their products to Vietnam and import materials from the Southeast Asian
nation, particularly rice. During his
trip, Thach also met with the Vietnamese community in the city./. CLMV nations seek to promote post-pandemic trade, investment A Vietnamese
delegation led by Deputy Minister of Industry and Trade Tran Quoc Khanh
attended the virtual 13th Cambodia - Laos - Myanmar - Vietnam
Economic Ministers' Meeting (CLMV EMM 13) on September 10. The event
was held within the framework of the 53rd ASEAN Economic Ministers’ Meeting
and related meetings in Hanoi from September 6-15. Participants
highlighted the need to promote trade, investment and connectivity among the
countries to implement the post-pandemic economic recovery plan. The
Vietnamese delegation suggested the nations continue with cooperation
activities in the 2021-2022 CLMV Action Plan in combination with realising
goals in the Initiative for ASEAN Integration and the Master Plan on ASEAN
Economic Community till 2025. It also
proposed facilitating export-import among the countries, especially customs
clearance at border gates, encouraging linkages among firms in the region in
the fields of farm produce processing and export to form supply chains. Concluding
the event, Khanh wished that the CLMV countries and the ASEAN Secretariat
would continue assisting Vietnam in fulfilling its role as the host of the
CLMV economic cooperation mechanism in 2022./. Tourism takes the initiative in adapting to new circumstances
Amid
the complex development of Covid-19, not only individuals and businesses but
also tourism management agencies and localities have introduced plans to
overcome the difficulties, including providing online tour programmes using
digital technology. Visitors
have the chance to admire a 360-degree virtual monument tour on the website
https://trungbayonline.hoangthanhthanglong.vn. The website
introduces an exhibition space featuring the Ly - Tran - Le Dynasties,
woodblocks from the Nguyen Dynasties, as well as several online exhibitions,
including “Kinh do mai muon doi” (The eternal capital), “Dat nuoc tron niem
vui” (The country full of joy), “Doc lap” (Independence), and “Vi tuong huyen
thoai” (Legendary General), among others. Visitors can
enjoy fascinating virtual experiences without leaving their home. These
innovations have helped the tourism industry keep pace with trends in the
digital age and also helped visitors access historical values. Despite many
difficulties posed by COVID-19, Vietnam’s tourism industry has intensified
its digital transformation. A series of
applications on digital platforms have been researched, deployed, and put
into use recently by the Vietnam National Administration of Tourism to
enhance the experience for tourists. In particular, tourism communications on
digital platforms have been promoted, with projects such as Google Arts &
Culture - Wonders of Vietnam, “Vietnam: Travel to Love!” on YouTube, and the
Vietnam Tourism Yellow Pages utility platform
(https://trangvangdulichvietnam.vn). Preparing
for a “vaccine passport” programme for international visitors to a number of
destinations in Vietnam, such as Phu Quoc Island in the Mekong Delta province
of Kien Giang, the Tourism Information Center has created a certification
system at https://travelpass.tourism.vn, to welcome visitors when
international tourism activities are reopened./.  Vietnam, US ensure continuity of goods supply chain Vietnamese
Minister of Industry and Trade Nguyen Hong Dien recently held phone talks
with US Secretary of Commerce Gina Raimondo to discuss bilateral economic and
trade issues. Dien, who is
also Chairman of the Vietnam-US Trade and Investment Framework Agreement
(TIFA) Council, suggested the US Department of Commerce enhance discussions
to achieve progress in market economy recognition and give objective and fair
opinions in line with the World Trade Organisation (WTO)’s regulations in
trade defence investigations. The
maintenance of goods supply, manufacturing activities and export-import are
the top important priorities of the Vietnamese Ministry of Industry and
Trade, Dien said, adding that Vietnam will step up vaccination, thus creating
favourable conditions for firms to mobilise workers back to work. About
existing bilateral economic and trade issues, Dien stressed that Vietnam is
ready to increase dialogues with the US to deal with them. He also hailed the
US for offering opinions to further perfect existing legal framework. Raimondo,
for her part, said economy and trade remain a high priority under President
Joe Biden’s policy, stressing that the US enterprises want to
invest in many fields in Vietnam, with energy as a top priority. The US will
actively work with Vietnam to ensure the continuity of goods supply chain
amid the complicated developments of the pandemic in the country, she said. Dien
suggested Raimondo convey his message to the US Government about giving
further priority to assisting Vietnam in vaccines, accelerating the
implementation of signed vaccine supply contracts, and facilitating vaccine
production technology transfer. Both sides
expressed their belief that the bilateral ties will maintain stable growth
momentum, with economic and trade collaboration as a focus and key driving
force. Over the
past five years, Vietnam’s export to the US has surged by 230 percent while
the US’s shipment to Vietnam has soared by over 175 percent. The US became
Vietnam’s largest importer while Vietnam was the 10th biggest trade partner
of the US./. European firms confident in Vietnam’s pandemic control European
firms still showed strong confidence in Vietnam's ability to control the
pandemic and for the Southeast Asian economy to pull off a strong recovery in
a near future, heard an online conference organised by the European Chamber
of Commerce (EuroCham) in Vietnam on September 9. The firms,
however, stressed the importance of mass vaccination drives, uninterrupted
flow of goods and services as well as shorter time to process foreign
workers' entry to Vietnam, said Alain Cany, Chairman of EuroCham. “There is no
disguising the fact that this fourth wave outbreak is having a dire impact on
business. The EuroCham Business Climate Index is now recording the lowest
sentiment in more than a decade," he said. Measures
must be taken to allow workers to go back to work as soon as possible "If
lockdowns, social distancing, and travel restrictions continue for much
longer, new investment projects could be put at risk and companies could
consider relocating elsewhere in the region," he said. This is
especially important as other countries in the region have started to reopen
while demand in European markets is showing signs of recovery. As the fourth
outbreak of the virus paralysed Vietnam's industrial and manufacturing
sectors, European firms have been forced to move their production elsewhere.
Since April, 18 percent of European firms' orders have left the country while
another 16 percent may have to follow soon. “What our
members need now is a clear roadmap out of these current measures; one which
resolves the roadblocks to their commercial operations and gives them a
predictable path on which to plan the reopening of their businesses," he
said. The chairman
called for a more streamlined process to grant entry for foreign workers and
investors. "In
particular, we urge the government to create a fast-track process for foreign
business leaders, experts, and their families returning to Vietnam. The
current procedure is both time-consuming and burdensome. It also represents a
significant barrier to the trade and investment activities which will be
essential to achieving economic growth post-pandemic," he said. Speaking of
the country's current three-on-site strategy - a string of measures to allow
firms to keep their operations running by providing workers with
accommodation, food and COVID-19 testing within their factories - European
firms voiced their concerns over a number of limitations and shortcomings. “Meanwhile,
the current ‘Three-in-One’ policies need to be refined. While the principle
is sound, it places a huge burden on both companies and their workers in
practice," Cany said. Firms placed
great importance on a vaccination roll-out which prioritises those most at risk
to allow a gradual opening up of cities and provinces so that commercial
operations can resume; consistent, centralised regulations to reduce
confusion for companies and to ensure the smooth circulation of goods;
alongside a streamlining and simplification of customs requirements./. Vietsovpetro to manufacture two rig bases for PTTEP Thailand Vietsovpetro,
has won a bid to manufacture bases of the ZWP12 and ZWP15 rigs for the
Zawtika 1D field development project invested by PTTEP Thailand. The ZWP12
and ZWP15 rigs' bases are built at lots M9 and M11 in the Martaban
basin,Myanmar waters at a depth of about 132m and 156m. The ZWP12
rig base weighs about 5,200 tonnes, and the ZWP15 rig base is about 6,300
tonnes. The construction and launch of the bases are expected to finish in 15
months, starting from this September. According to
Vietsovpetro, as the bidding and construction of the rig bases have being
carried out amid COVID-19, the company has rolled out numerous measures to
ensure the compliance with regulations on pandemic control and prevention,
and the quality and progress of the project./. Agricultural digital transformation int’l forum to take place
next week The Vietnam
Agricultural Digital Transformation International Forum 2021 will take place
on September 16, providing a platform for discussions on pressing issues and
strategies of Vietnam’s agriculture within the region and the world at large,
heard a virtual press conference on September 10. It will be
co-held by the Ministry of Foreign Affairs, the Vietnam Digital Agriculture
Association (VIDA), and online newspaper VnExpress under the theme “Keeping
up with market trends, ensuring the pivotal role of the economy during and
after thd COVID-19 pandemic,” expecting to attract more than 1,000 delegates. The forum
will also facilitate policy dialogue between the government and the private
sector and other stakeholders. The AgriTech
Expo 2021 will also be held via livestreaming and video teleconference within
its framework. The plenary
session will include a discussion on several topics, namely difficulties and
advantages for digital transformation in Vietnam; disruption of supply chains
in Vietnamese localities: current situation and solutions; opportunities for
Vietnam's agriculture to make breakthroughs; strategic directions to develop
agriculture in a new context; and solutions and resources for Vietnam's
digital agriculture: what agribusinesses must do to develop sustainably in a
volatile and risky market. Assoc. Prof.
Tran Dang Xuan, a lecturer from Japan’s Hiroshima University, is scheduled to
deliver a speech on applying Japanese advanced technology and experience in
agricultural digital transformation in Vietnam. Agricultural experts from
Israel and the Netherlands will also talk on their countries’ experience in
the field./. Quang Ninh proposes 2,200 billion VND general port in Q4 2021 The northern
coastal province of Quang Ninh has proposed a project on building the Van
Ninh general port at total investment of 2,248.5 billion VND (99 million
USD), which, if approved, is expected to start construction in the fourth
quarter of 2021, according to the Vietnam Maritime Administration. The
administration said in a document submitted recently to the Transport
Ministry that at the request of the provincial People's Committee, the
project has been added to the development planning for seaports capable of
accommodating 10,000 DWT vessels. Currently,
under the research for a sea port development master for 2021-2030 with a
vision to 2050 submitted to the Prime Minister last July, Van Ninh along with
Van Gia port, is designated as a general port, handling liquid and gas
products as well as passengers, serving domestic waterway transport and
capable of accommodating ships of up to 20,000 DWT and larger when meeting
conditions. Previously,
at the end of August 2020, the People's Committee of Quang Ninh province sent
a document to the Ministry of Transport on the investment plan for phase 1 of
Van Ninh general port. Accordingly,
the overall target was to build a general cargo and container port capable of
receiving ships of up to 20,000 DWT, with a throughput capacity of 1.68
million tonnes per year by 2024 and 2.8 million tonnes per year by 2028. The province
hoped to start construction of the port in the fourth quarter of 2021; and
put it into operation in the fourth quarter of 2023./. Various Vietnamese products on show at China-ASEAN Expo A wide range
of Vietnamese agriculture, forestry and fisheries products, processing food,
wood furniture and handicrafts, consumption good, as well as tourism and
trade services are on display at the China-ASEAN Expo (CAEXPO) which opened
on September 10 in Nanning, China. These
products are brought to the event by over 60 Vietnamese firms and their
partners in China at a pavilion spanning across more than 2,000 sqm in
Nanning International Convention and Exhibition Centre. CAEXPO 2021
takes place to boost economic cooperation and trade between China and ten
ASEAN member states. Nearly 4,000 foreign companies from over 40 countries
and territories worldwide are showcasing their products and services in 905
pavilions, up 13.4 percent from 2020. The expo was
launched together with the 18th China-ASEAN Business and Investment Summit
(CABIS) where governmental officials and business leaders will exchange views
and seek partnership in trade, investment, cross-border financial services,
technology innovation and digital economy. Chinese Vice
President Wang Qishan attended the opening ceremony of the two events during
which he read a congratulatory note from President Xin Jinping. Vietnamese
Deputy Prime Minister Le Van Thanh and other leaders from Laos, Cambodia,
Malaysia, Thailand, Singapore and Pakistan also delivered their remarks via
pre-recorded videos at the ceremony. Exhibitors
from other ASEAN member states bring to the expo various products in the
fields of aviation, marine transport, coffee, footwear and agriculture, while
those from China, including tech giant Huawei, display goods in electronics,
agriculture, engineering, food packaging, and equipment. Latest
customs data shows that ASEAN remains China’s biggest trade partner as the
two-way trade spurred by 33.3 percent year on year to 553.9 billion USD in
the first eight months of 2021. The value accounted for 14.5 percent of
China’s foreign trade. Launched in
2014, CAEXPO has been an important platform for enhancing bilateral trade and
relations between China and ASEAN. This year, 26 high-level forums and 148
economic and trade promotion activities will take place in the framework of
the four-day event, alongside a host of events to celebrate the 30th
anniversary of the ASEAN-China dialogue ties./. 18th CAEXPO, CABIS to bring new momentum for China-ASEAN
economic growth: Deputy PM The 18th
China-ASEAN Expo (CAEXPO) and 18th China-ASEAN Business Investment Summit
(CABIS) will create a new motivation for the development of economic-trade
ties between ASEAN and China as well as the growth of both sides, stated
Deputy Prime Minister Le Van Thanh while delivering a video speech at the
opening ceremony of the two events on September 10. He noted
that the 18th CAEXPO and CABIS are being organised while the ASEAN and China
are celebrating the 30th anniversary of bilateral dialogue partnership and
the first year of their five-year action plan. As both
ASEAN and China are facing unprecedented impacts from COVID-19, the two sides
should stay more united and promote regional cooperation with ASEAN playing
the central role to push back the pandemic and speed up post-pandemic
economic recovery, he stressed. He suggested
that both sides focus on promoting the ASEAN-China economic connectivity and
optimising regional economic agreements, while enhancing the efficiency and
role of digital economy towards digital government, digital economy and
digital society. Both sides
should strengthen cooperation in pandemic prevention and control, including
collaboration in vaccines and improving the medical response capacity for
ASEAN countries he said. The
Vietnamese Deputy PM lauded the positive progresses in the Vietnam-China
relationship, stressing that the Government of Vietnam will continue to
create favourable conditions for foreign firms, including those from China,
to invest in the country in all fields. He proposed
that the Chinese Government further broaden its door and facilitate customs
clearance process for Vietnamese products, especially farm produce and
aquatic products. CAEXPO is
one of the 10 leading trade fairs of China, which has been held annually
since 2004. This year,
Vietnamese businesses continue to participate in the event with the largest
scale among ASEAN countries. About 80 Vietnamese firms are directly
displaying products on an area of 2,000sq.m, while 200 others are joining
online. They introduce Vietnamese strong products such as farm produce,
aquatic products, processed food, furniture and handicrafts, consumer goods,
as well as tourism and trade services./. SMEs get aid to export via e-commerce The
Enterprise Development Agency under the Ministry of Planning and Investment
in coordination with Amazon Global Selling Vietnam on September 9 held a
webinar to launch a programme for firms interested in export via e-commerce. The 90-Day
Amazon Launchpad programme is part of the ministry’s Go Digital Go Global aid
package for enterprises’ digital transformation during 2021-2025, aiming to
help small- and medium-sized ones bring their products to global markets
using digital tools and platforms. Amazon Global Selling is among partners of
the package. In the first
phase of this package, Amazon Global Selling Vietnam will assist
more than 50 selected businesses with different levels of assistance, from
providing information and knowledge via email, webinars to direct support by
Amazon personnel in the process of business planning on cross-border e-commerce. During 90
days participating in the programme, they will also have the opportunity to
access other support activities of the Go Digital Go Global aid package such
as learning, applying digital tools for market research and analysis based on
exploiting big data and artificial intelligence. In addition,
the businesses will be assisted in switching to
trans-border e-commerce platforms, application of digital content
publishing tools, intelligent promotion tools and goods traceability
solutions. This support
activity is being implemented by Amazon Global Selling Vietnam from September
to November 2021. The
programme to support enterprises in digital transformation for
2021-2025 period is chaired by the Ministry of Planning and Investment, with
the coordination of the United States Agency for International Development
(USAID), for the goal that 100 percent of enterprises are aware
of digital transformation. In addition, at least 100,000 enterprises are
supported to use a digital transformation readiness evaluation tool and other
digital solutions and at least 100 manufacturing and processing enterprises
successfully adopt digital transformation./. Vietnam’s peppercorn exports to Germany facing difficulties amid
COVID-19 Vietnam’s
peppercorn exports to Germany face various obstacles due to the ravages of
COVID-19 in many countries across the globe, according to the Vietnam Trade
Promotion Agency (Vietrade) under the Ministry of Industry and Trade. The
country’s competitiveness edge has been hard-hit by surging delivery costs. Meanwhile,
economic recovery in Germany results in rising demand for the spice, Vietrade
noted, adding that peppercorn supply in the European market is entirely
dependent on imports. Germany
imported 4,533 tonnes of peppercorn totalling 13.71 million EUR (16.16
million USD) from Vietnam in the first half of this year, a year-on-year
decline of 21.9 percent in volume and 4.5 percent in value, data from the
Directorate-General of the European Commission (Eurostat) showed. The share of
Vietnam’s peppercorn in the market fell to 31.82 percent in H1 from 36.34
percent recorded in the same period last year. Given the
fact that some small-scaled Vietnamese suppliers have yet to fulfil stringent
requirements of the German side on pesticides and origin tracing, Vietrade
advised the peppercorn sector to exert efforts to meet requirements on
product quality and origin./. Success of FDI firms vital for Vietnam: PM The
Vietnamese Government is always ready to create the best conditions for and
stand side-by-side with European firms operating in the country, while
wishing that EU countries facilitate Vietnamese investments in fields that
Europe has demand for, thus fostering balanced and long-term win-win trade
and investment cooperation, Prime Minister Pham Minh Chinh has said. He made the
statement during a working session in Hanoi on September 9 with the head of
the European Union (EU) Delegation to Vietnam, the ambassadors of European
nations to Vietnam, and representatives of the European Chamber of Commerce
in Vietnam (EuroCham) and firms in the country. The PM
appreciated his guests' practical and effective contributions to the
Vietnam-EU relations development, and thanked the EU and its member countries
for their commitment to present over 10 million doses of vaccine and medical
supplies to Vietnam. He extended
his sympathies to firms in Vietnam over the difficulties caused by the
complexities of COVID-19, saying that the success and loss of foreign
investors are also the success and loss of Vietnam itself. The
Vietnamese Government has rolled out various measures to contain the spread
of the pandemic and build an economic recovery plan in tandem with safely
adapting to the situation in short- and long-terms, he stated. Speaking
highly of the Vietnamese Government’s preventive measures, the EU diplomats
and business leaders voiced their hope that the implementation of pandemic
control measures at localities will be more flexible and effective, and
emerging incidents at grassroots level will be handled in a prompt manner. The
Government leader reiterated the policy on free vaccination for all people,
including foreigners who are staying in Vietnam. He added that priority has
been given to workers at industrial parks, processing and high-technology
zones and foreign businesses, including European ones. He urged EU
ambassadors and firms in Vietnam to help promote the Vietnam-EU ties to a
higher level, and push for the early ratification of the EU-Vietnam
Investment Protection Agreement (EVIPA). The PM also
asked the EU diplomats and business leaders to continue helping Vietnam
access vaccine and medicine and technology transfer; call on the European
Commission to remove the “yellow card” on Vietnam’s fisheries sector; and
support Vietnamese people living and studying in European countries. PM Chinh
affirmed that the Government will continue to gather suggestions and
recommendations of EU firms and stand ready to fulfil their requests when
possible. The EU
diplomats and entrepreneurs said that Vietnam will remain an attractive
investment destination in the coming time, and affirmed their wish to further
promote investment and long-term business operation in the Southeast Asian
nation. At the
event, Eurocham handed over medical supplies worth 40 billion VND (1.76
million USD) donated by firms to Vietnam’s Ministry of Health./. Phu Quoc Int’l Cruise Terminal approaches 75 percent completion According to
the People’s Committee of Phu Quoc City in the Mekong Delta province of Kien
Giang, the done work volume of the construction project of the Phu Quoc
International Cruise Terminal reached more than 75 percent despite of the
complicated situation of Cvodi-19 outbreak. The Package
2 including 120 meter-long wharf and the 1,000 meter-long passenger boarding
bridge has been basically finished while the Package 3 consisting of the
construction and installation of the 120 meter-long wharf, safety signage
system, 850 meter-long seawall, lighting system, water supply system has
reached the target. The
construction project of the Phu Quoc International Cruised Terminal is one of
the main works in the city, said Chairman of the People’s Committee of Phu
Quoc City Huynh Quang Hung. It has a
significant effect on the strategy of the social and economic development in
Phu Quoc, especially the tourism and service sectors. When the pandemic can
be brought under control, Phu Quoc will receive the largest number of
visitors on international giant ships, he added. The terminal
covering on an area of 179.3 hectares locates in the town of Duong Dong on
Phu Quoc Island for luxury cruise ships carrying 5,000 - 6,000 passengers. All to play for in bancassurance growth Bancassurance
is prefigured to gain new momentum thanks to its win-win doctrine which
generates a generous amount of upfront fees for banks, while insurers could
leverage banks’ wide-ranging network despite the rigorous social
restrictions. Preliminary
statistics from the Ministry of Finance has revealed that the total new
premium revenues of life insurance companies in the first half of 2021 from
the bancassurance channel reached more than $339 million, while the agency
channel was around $595.7 million and other channels hit $17.4 million. In addition
to accelerating digital engagement across the customer journey, insurers have
also been reinforcing cross-selling initiatives through bancassurance.
Non-interest income growth will become the main driver and take unprecedented
priority in banks’ income, and bancassurance is among the crucial elements,
according to Viet Dragon Securities. Bancassurance
is seen to continue to grow much faster than the agency channel. At some
insurance companies such as Prudential, Dai-ichi Life, Sun Life, MB Ageas,
and FWD, new premium revenues from bancassurance in the past six months has
increased equal to, or even higher than, revenues from agency channels. So far in
2021, new premium incomes from Prudential’s bancassurance channel has
surpassed the traditional agency channel, while that of MB Ageas nearly
doubled the new premium fee from the agency channel. Sun Life Vietnam also
reported its new premium income accounting for nearly 90 per cent of total
new fee revenue. The strong
growth of the bancassurance channel with revenue similar to that of the
agency channel also helped Dai-ichi Life rise to second among
foreign-invested insurers in Vietnam regarding new premium fees in the first
half of 2021. By the end
of the period, Manulife’s market share of premium income reached 19.1 per
cent. The significant driving force for Manulife’s continuous growth is that
the company had cross-selling insurance contracts with privately-held banks
that have large customer data such as ACB, TPBank, Techcombank, and SCB,
along with reputable foreign banks such as Shinhan Bank and ANZ, which helped
speed up exploitation activities. “There has
also been significant investment in technology at the insurance companies in
Vietnam, which explains why Vietnam’s life insurance market has experienced
double-digit growth over the past few years,” said Naren Baliga, COO at
Manulife Vietnam. Tanh Tran,
deputy head of Yuanta Securities, said that fee income is likely to be a core
topline focus among the banks in H2. The current operating conditions
emphasise that the Vietnamese banks must diversify their earnings sources to
be less dependent on interest income. “We expect
upfront fee recognition from bancassurance exclusivity deals and
bancassurance sales to continue providing support for banks’ fee income and
earnings in the second half. In addition, we also expect a wave of renegotiated
bancassurance exclusivity deals in 2021- 2022,” Tran said. Southern-based
lender HDBank is meanwhile allegedly in the process of renegotiating its
tie-up with Japan’s Dai-ichi Life. Yuanta Securities also anticipated that
Techcombank and VPBank would renegotiate their partnerships to get higher
upfront fees that will probably be within the range of those of their peers. VPBank is
said to be dealing with AIA for a forthcoming exclusive bancassurance deal.
If successful, the bank could bag a generous amount of upfront fees. MB
Securities predicted this transaction to take place in 2022 at the latest. VietinBank,
on the other hand, is slated to receive upfront fees from monopoly
bancassurance partnership with Manulife by the end of 2021 or in the first
quarter of 2022 after Manulife completes the acquisition of Aviva. Vietnam has
traditionally been one of the top countries with the highest growth rate of
insurance premiums in the world, with an average annual growth rate of over
9.3 per cent. Although continuously recording high growth, Vietnam has a
relatively low market penetration rate of only 2.7 per cent by 2019 (non-life
insurance is 0.8 per cent and life insurance is 1.9 per cent), much lower
than other countries in the region (averagely at 3.3 per cent). “We believe
that the non-life insurance industry will quickly return to the average
growth rate of 15 per cent as in the previous period, while life insurance
will maintain a high growth rate of 25-30 per cent per annual,” said Khanh
Do, analyst at Bao Viet Securities Company. Despite the
high growth rate, the market penetration rate of the bancassurance channel is
modest, at only 19 per cent, much lower than the average rate of about 60 per
cent in developing countries. “The low
rate lies in several reasons, such as limited products, customers having
little understanding of products distributed through banks, and legal
issues,” Do told VIR. However, in
the past few years, these problems have been gradually solved by insurance
companies as well as banks, gradually increasing the efficiency of
bancassurance. For example, the renewal rate through bancassurance was only
70 per cent by 2020, but has been increased to 80 per cent by 2020, and even
9 per cent for some companies, according to Do. Banks readjusting focus with subsidiary divestments Vietnamese
banks are withdrawing capital from their subsidiaries to refocus on major
banking services, with the move opening the door for foreign investors to
make inroads in the financial market. State-owned
bank VietinBank last month signalled its interest to divest from a handful of
subsidiaries. Particularly,
the bank targets to divest 15 per cent in VietinBank Securities, reducing its
ownership from 75.6 to just over 50 per cent. Vietinbank
Securities has witnessed exceptional growth in its performance in the first
half of 2021 thanks to the huge appetite of new retail traders. The brokerage
recorded a revenue of more than VND413 billion ($17.96 million), up 76 per
cent on-year. After-tax profit reached VND167 billion ($7.26 million),
equivalent to a 17-fold increase on-year. The company is among the seven most
experienced brokerages in Vietnam. Simultaneously,
VietinBank is also lowering its capital in VietinBank Capital to VND300
billion ($13 million). It is waiting for approval from the State Bank of
Vietnam (SBV) to divest 50 per cent of its capital in VietinBank Leasing by
December. Last year,
Japan’s Mitsubishi UFJ Lease & Finance Co., Ltd. acquired a 49 per cent
equity interest in VietinBank Leasing. The deal size, however, was not
disclosed publicly and the transaction could not be completed as competent authorities
require more time to grant approval. “VietinBank
and VietinBank Leasing will continue to coordinate with the transferees to
accelerate the approval of the competent authority for the legal
transformation of VietinBank Leasing,” VietinBank said in a public statement. KB
Securities noted, “In our assessment, proceeds from expected deals would not
have a significant impact on VietinBank’s operation. However, after
successful divestment, VietinBank could boost the efficiency of its core
business in banking services and diversify its techable portfolios.” Last month,
SHB confirmed that it would temporarily lock its foreign ownership limit
ratio at 10 per cent from its previous 20 per cent, and is now negotiating
with several foreign investors. The bank also
entered a strategic agreement to sell its consumer finance arm, SHB Finance,
to Ayudhya Bank (Krungsri) of Thailand – a member of Mitsubishi UFJ Financial
Group from Japan in a $156 million deal. Accordingly, SHB would transfer 50
per cent of SHB Finance’s charter capital to Krungsri and the remaining
ownership would be transferred to the Thai bank after three years. MUFG, the
largest shareholder of Krungsri (holding nearly 77 per cent stake), is also
the largest strategic foreign investor of VietinBank with approximately 20
per cent ownership in the bank. Elsewhere,
MSB last week announced its public auction of its contributed capital shares
at its asset management and exploitation arm MSB AMC. According to the bank’s
semi-annual financial report, MSB is contributing VND100 billion ($4.34
million) of capital to AMC. This divestment would help MSB to restructure its
portfolio and refocus its priority on the bank’s strengths. In early
2020, MSB successfully negotiated the transfer of 50 per cent of its FCCOM to
Hyundai Card – the credit card company of South Korean automaker Hyundai.
However, due to the impact of the pandemic and a change in partner strategy,
the $42 million deal has turned sour. “Currently,
there are a few potential partners working with MSB on the FCCOM divestment,
and the deal is expected to be completed in 2022,” said Nguyen Hoang Linh,
CEO of MSB. “Moreover, we are mulling over a few options regarding foreign
partnership, such as reserving a part of the bank’s capital for foreign investors.
In the short run, international strategic partners will transfer
international know-how and help MSB to diversify funding sources.” Vo The Vinh,
head of Research and Investment Strategy at Guotai Junan Securities Vietnam,
said, “We expect MSB to complete the process of selecting a new partner soon
and close this deal by the end of 2021 or early 2022. With the average
price-to-book ratio of recent deals, we expect MSB to make at least VND500
billion ($21.7 million) in profit from the sale of FCCOM, thereby adding
resources to the bank’s business.” In late
July, Sacombank also confirmed its intention to offload entire capital from
brokerage arm Sacombank Securities JSC. The move is in line with the bank’s
comprehensive restructuring strategy, including divestment from ineffective
businesses. The bank could bag VND150-170 billion ($6.5-7.4 million) if the
deal is successfully executed. Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes |
Không có nhận xét nào:
Đăng nhận xét