VIETNAM BUSINESS NEWS SEPTEMBER 2
14:47
Online trade promotion is currently considered as an
effective solution for businesses to maintain contacts with their export
markets and also a tool to learn about market trends, developments and
demand. Thousands of businesses in Mekong Delta closing The Vietnam
Chamber of Commerce and Industry (VCCI)'s Can Tho Branch has said the
Covid-19 pandemic has caused a crisis to the agriculture, forestry, and
fishing industry in the Mekong Delta. The branch's
director Nguyen Phuong Lam said on August 31 that over the past two months,
the Mekong Delta had recorded over 60,000 Covid-19 infection cases. And from
June to August, over 10,000 businesses have left the market in the area. This
figure in the first six months of the year was 6,000. Nearly 90 percent of firms
in the area have suspended operations. Statistics
from the Ministry of Planning and Investment show that 79,673 firms suspended
operation in Vietnam in the first seven months, an increase of 23% compared
to the same period in 2020. Of which 23,000 firms are in HCM City. "The
agriculture, forestry, and fishing is the spearhead industry in the Mekong
Delta. The products must be harvested but then there is no storage. If this
situation continues, we'll lose raw material areas and will take a long time
to recover," Lam said. Firms said
they had had many difficulties due to the lack of co-operation between local
authorities since the 13 provinces have 13 different policies and rules. The
stay-at-work model is too expensive and ineffective while governmental support
has not been forthcoming fast enough. Most firms are operating at 20-30% of
their capacity. Many firms have to accept losses to maintain business. Many firms
want better processes to transport goods between provinces and cities,
financial policies to boost businesses when the social distancing period
ends. Pham Binh
An, deputy head of the Ho Chi Minh City Institute for Development Studies
said the problem was at what time would social distancing end and what firms
have to prepare. It is likely that they would have to live with Covid-19 when
the population is fully vaccinated and the government has suitable plans. "The
goal is to control the outbreak after September 15 but no one can tell if
social distancing will be lifted after September 15," An said. A
third-quarter survey conducted by the Vietnam Chamber of Commerce and
Industry in Can Tho showed local firms had a very negative outlook. 40% of
surveyed firms said that their revenue will continue to drop and 40% said
access to raw materials would be more difficult. Tran Khac Tam, head of Soc
Trang Business Association also said there would still be difficulties until
the middle of the final quarter. Standard Chartered Vietnam increases charter capital,
reinforcing its local commitment Standard
Chartered Vietnam has been approved to increase its charter capital to over
VND6.9 trillion (US$302.3 million) from VND4.2 trillion ($184 million) by the
State Bank of Viet Nam in accordance with Document No 1343/QD-NHNN dated 23
August 2021. This follows
previous increases made in 2018 with around $49 million (nearly VND1.1
trillion) and in 2019 with $100 million (VND2.3 trillion). Michele Wee,
CEO for Vietnam, Standard Chartered Bank, said: “We are very happy to get the
approval for our charter increase. This is our third capital injection since
2018, reinforcing our long-term commitment to the country. We have built a
strong business here and aspire to take it to even greater heights. We affirm
the strong outlook for Viet Nam and will continue to invest in the
opportunities that the market offers. We will work with our clients, the
regulators and our communities to drive trade, investment and the creation of
wealth in the country responsibly.” Standard
Chartered has been investing significantly in Viet Nam over the last few
years and growing its business across the country. In April 2021, the bank
inked an agreement with Capital Place to open the bank’s new head office and
branch in Ha Noi. Capital Place is a modern international Grade A office
complex located in the heart of the city at 29 Lieu Giai, Ba Dinh. Standard
Chartered Vietnam’s head office and its branch are expected to begin
operations by the end of 2021. The investment in more resources and
infrastructure in the bank's local franchise aims to better serve its clients
and deliver solutions that enable customer choice and access to the best and
most innovative solutions to both private and public sector. The bank
also aspires to build a stronger community in Viet Nam, where it has been
present and making an impact for 117 years. Last year, Standard Chartered
launched a $50 million COVID-19 global assistance fund, in which $200,000 and
other in-kind donations are donated to the COVID-19 prevention and relief
efforts in Viet Nam through multiple non-profit organisations and hospitals.
The bank also introduced a series of relief measures to support its clients. Vietnam resumes export of fresh bananas to China Chinese
enterprises have re-started the import of fresh bananas from Vietnam through
the Kim Thanh Border Gate in Lao Cai province, according to the Management
Board of Lao Cai Province Economic Zone on September 1. During the
three days from August 29-31, about 300 tonnes of fresh bananas were
transported to Hekou, China via the border gate. The bananas
were grown in concentrated banana growing areas in Muong Khuong and Bao Thang
districts, Lao Cai province and were transported by air-conditioned container
trucks to China. Previously,
the Chinese side had suspended the import of Vietnamese fresh bananas through
the Kim Thanh Border Gate from August 5 due to the requirements of COVID-19
pandemic prevention and control. The Department
of Industry and Trade of Lao Cai province has actively discussed with Hekou
district to resume the exchange of agricultural products. The Chinese
side said that the Vietnamese banana is a type of fresh fruit that has long
been allowed to be imported into China by the Chinese inspection and
quarantine agency and is once again included in the list of permitted
exports. As long as the fruit meets testing and quarantine requirements for
imported fruits, it is allowed to be shipped to China, according to Director
of the Department of Industry and Trade of Lao Cai province Hoang Chi Hien. The Chinese
side also asked Vietnamese enterprises to comply with all requirements on
COVID-19 prevention and control for exported goods and vehicles, ensuring the
safe operation of the border gate between the two sides. Bananas are
mainly grown in the districts of Bao Thang, Bat Xat and Muong Khuong, Lao Cai
province. The province is expected to harvest over 85,300 tonnes of bananas
in 2021. AI takes centre stage for overall successes The adoption
of AI to address urgent global issues is also taking place in Vietnam, with
AI-enabled tech slated to drive forward digital transformation across areas
as diverse as healthcare, transport, and education. The AI Day
2021 online event, themed on empowering innovations, was organised last week
from Hanoi over two days with the aim of unlocking solutions to developing AI
in Vietnam. Key speakers agreed that AI is a core technology of the Fourth
Industrial Revolution, making an important contribution to creating a
breakthrough development in production capacity, improving national-level
competitiveness, and promoting sustainable economic development. By 2030, the
government targets Vietnam to become a global centre for innovation and development
of AI solutions and applications, especially in the region. Already, Vietnam
is in the top four leading countries in ASEAN and top 50 worldwide in
research and development (R&D) and application of AI. According to
VinAI Research, the tech arm of Vingroup that organised AI Day, Vietnam will
have at least one representative in the top 20 leading AI research and
training institutions in Southeast Asia by the end of the decade. The country
will build 10 prestigious AI trade brands in the region, develop three
national centres for large data storage and high-performance computing, and
form several innovation centres for AI. Around 50 databases will be formed in
economic sectors and socioeconomic fields to serve R&D and application of
AI. From
healthcare and education to transportation, AI could improve the delivery of
public services, VinAI Research said. Thus, the Vietnamese government has
positioned itself to take advantage of this AI-powered transformation. In 2020,
Vietnam ranked 76th out of 172 countries and territories in the 2020
Government AI Readiness Index, with AI noted in a number of government
policies. Over the years, the government has announced several projects for
smart city development and national digital transformation. Local authorities
also have jumped on the bandwagon – Hanoi takes part in the ASEAN Smart
Cities Network while Ho Chi Minh City has released a separate plan for AI
application. Bui The Duy,
Deputy Minister of Science and Technology, said, “From 2006 to 2020, nearly
100 national projects related to AI have been funded by the government worth
VND170 billion ($7.45 million). There has been a trend for IT companies to
invest in AI in Vietnam such as Vingroup and FPT.” However, AI
adoption in industry, agriculture, and healthcare is limited, he added “Some
surveys revealed that only 13.6 per cent of companies have applied AI while
36.4 per cent have intentions to invest in it. Vietnam’s AI market is quite
small with limited open platforms, and there are only 65 startups in the industry.
Thus, it needs more efforts to transform Vietnam into an AI hub for the
region.” FPT plans to
spend over VND300 billion ($13 million) on R&D for AI in the next five
years. Bui Hai
Hung, general director of VinAI Research, said, “Over the years, AI has
become an effective tool to contribute to solving difficulties as well as
creating many opportunities for Vietnamese businesses. Despite possessing
great potential, development in the field in this country still encounters
many obstacles – but as a leader in AI research and application, we aim to
bring Vietnamese AI products to the world.” Hung also
noted that AI-induced products could help in the battle against COVID-19 on
various levels, in terms of monitoring distance activities in public places
and in isolation areas; and detect people not wearing masks in crowded
places. “From data
obtained through the pandemic, AI can analyse and make predictions about the
next scale of the outbreak, provide real-time scenarios, and help authorities
proactively respond to high-risk zones,” he said. AI
development in Vietnam is not geographically limited within a domestic scale.
In April, the country inked a deal with South Korean tech giant Naver Group
as a part of its long-term national strategy. The
following month, a $2.7 million package from the Australian government was
committed to the knowledge and innovation of Vietnam in the sectors of future
digital economy (including digital technology and AI) and resilient
agriculture and food systems. And another
major conglomerate from South Korea – Samsung – last week also confirmed its
target to invest around $206 billion over the next three years in
semiconductors, AI, and also biopharmaceutical products. Hoa Binh plans major national tourism area at Hoa Binh Reservoir The northern
province of Hoa Binh has announced a plan to develop a national tourism area
at Hoa Binh Reservoir that covers 52,200ha. Hoa Binh
Provincial People's Committee announced the project with a view to 2035
during an online meeting. The project was approved by the prime minister on
March 25. The project
will spread across Thai Binh, Phuong Lam, Tan Thinh wards, Hoa Binh Commune
and a part of Da Bac, Cao Phong, Tan Lac and Mai Chau districts. This will be
a national tourism site and a key project of the northern midland and
mountainous region. Diverse tourism products are promised with the rich
ethnic minority cultures and the biodiversity of Hoa Binh Reservoir. There will
be several zones including the entrance area connected to Bich Ha Port, a
central tourism area in Da Ba District, an eco-tourism area in the north of
Hoa Binh Reservoir and a bay area in Cao Phong and Tan Lac districts. There
are also tourism service area in Mai Chau District and another eco-tourism
area in Da Bac district. In the first
phase, the investors will focus on zoning planning, detailed planning,
infrastructure development, brand building, and product development. The second
phase will be carried out from 2025 to 2035. The project will be completed
put into use zone by zone. Living wage for garment workers in Vietnam up 57 per cent According to
a new analysis from the non-profit Fair Labor Association (FLA), clothing
companies in Vietnam were able to raise workers' wages by as much as 57 per
cent over the past three years. “Too often,
factory workers must work excessive overtime to supplement low pay to make
ends meet, but that’s not fair to workers,” said FLA president and CEO Sharon
Waxman. “A better quality of life for factory workers is within reach when
buyers, suppliers, and workers collaborate to achieve a living wage in a
regular workweek.” Overtime
that exceeds 60 hours per week or leaves workers without one day of rest per
week is common in global supply chains. Typically, factory workers seek
overtime when they cannot afford basic expenses to support their families
because of low pay earned during a regular workweek. Low pay is attributable
to the pressure to produce products quickly and at a low cost based on
expectations from buyers, retailers, and consumers. The new FLA
report presents practical approaches to achieving a living wage through
better purchasing practices by buyers and better planning by factory
management. Case studies in the report identify the root causes of excessive
overtime and describe how buyers, suppliers, and workers collaborated to
improve wages and reduce overtime. In Vietnam,
the Maxport Limited production facility in Nam Dinh changed its production
planning schedule to assume a shorter workweek, built in time to account for
unanticipated delays, and set stricter purchasing guidelines for its
customers. Over a 5-year period, the average increase in real wages was 39
per cent. Vietnam is
the FLA’s second-highest sourcing country among FLA members, with more than
600 factories across affiliated companies and suppliers. The report covers 54
factory assessments in Vietnam conducted from 2012 to 2019. Efforts needed to bring electronic exports to 50 billion USD
this year Exports of
electronic products and components may reach 50 billion USD in value in 2021,
a year-on-year rise of 13.5 percent, according to the Import-Export
Department under the Ministry of Industry and Trade (MoIT). To reach the
target, huge efforts by businesses, the State, as well as relevant agencies
and localities are required. Shipments of
key industrial goods like components, computers and electronic products raked
in 27.6 billion USD the first eight months of the year, surging 24.8 percent
compared to the same period of 2020, the latest report of the MoIT showed. Demand for
such products is forecast to continue rising in the rest of 2021. Truong Hai
Auto Corporation (THACO) exported millions of automobile components to its
partners in the Republic of Korea, Malaysia, Russia and Japan. THACO
General Director Pham Van Tai said that although the fourth wave of COVID-19
outbreaks has dealt a major blow to firms’ operations, especially in early of
this year’s third quarter, components and mechanical items still have chances
to enter the European market. The
complexities of the pandemic are sending firms to difficulties, primarily in
transport and supply, as their foreign business partners impose stringent
criteria, he added. They are
advised to focus on project development and investment, in an effort to seize
opportunities and momentum once the pandemic is brought under control. Concerns
have been rising amongst electronic firms due to the complex developments of
COVID-19 and social distancing measures in numerous localities. Payment for
regular COVID-19 tests for employees and overload in transport service
providers lead to higher costs of production as firms must maintain their
product prices, so they may fall into losses./. Vietnam aims to enter top 50 countries in tourism
competitiveness Minister of
Culture, Sports and Tourism Nguyen Van Hung has signed an action programme on
tourism development in the 2021-2025 period, with an aim to make tourism a
spearhead sector and put Vietnam into top 50 nations with the highest tourism
competitiveness in the world. The
programme was built on the foundation of opinions from management officials,
experts, and businesses in the tourism sector, aiming to realise the tourism
development policies stated in the Resolution of the 13th National Party
Congress as well as the Government’s Resolution No. 50/NQ-CP dated May 20,
2021 on the Action Programme to implement the resolution. On this
basis, the action programme on tourism development during the 2021-2025
period sets out seven key tasks including: reviewing, evaluating and
completing policies on tourism development; applying science-technology and
digital technology in the tourism industry; investing in infrastructure
serving tourism; developing products and managing service quality; supporting
businesses to restore and develop amidst the pandemic; developing
high-quality human resources; and enhancing promotion activities and
international cooperation. These tasks
are to be solidified by 17 key projects and tasks, many of them are expected
to settle “bottlenecks” in tourism development of the country in tourism
infrastructure and tourism products. Meanwhile,
many tasks were set out to deal with the current difficulties of the sector,
including policies to support businesses and tourism workers to overcome difficulties
caused by COVID-19 in association with financial support measures, tax
exemptions and reductions and soft loans, and the digitisation and
application of modern technologies to create a smart tourism ecosystem. At the same
time, the programme also underlined the significance of close coordination
among ministries, sectors and localities to support the tourism sector to
overcome difficulties, promote sustainable development, and become a
spearhead economic sector of the country. A digital slant for economic recovery The health
crisis has dented growth prospects for Vietnam that are now forecast to stay
at a lower-than-hoped level. However, one of the key remedies for a
sustainable rebound will be boosting the digital economy. However,
today Vietnam is facing its most severe COVID-19 outbreak since the beginning
of the pandemic, partly due to low vaccinations. Since early May,
manufacturing and services activities have been increasingly hamstrung by
targeted lockdowns to contain community transmission of the virus. Especially
since mid-July, mobility restrictions have been widened, with the southern
region, Ho Chi Minh City, and then Hanoi, placed under strict quarantine,
affecting economic activities. In the
meantime, the economy also faces the risk of increased competition in its
external markets as competitors who are ahead in vaccinations are restarting
their production and could recapture some of the market shares they lost to
Vietnam due to COVID-19-related production disruptions in 2020. Therefore,
the World Bank has warned, the economy “could be at risk of losing both its
domestic and external drivers of growth” if the current outbreak is not
rapidly contained. The World
Bank last week released its fresh projection on Vietnam’s economic outlook,
which is not as optimistic as the government expected. “The
Vietnamese economy could expand by around 4.8 per cent in 2021 and converge
toward the pre-pandemic GDP growth rate of 6.5 to 7 per cent from 2022
onward,” said the bank’s August 2021 edition of the Taking Stock report,
which analyses the grave impact the pandemic is having on the economy and its
prospects. “This
projection remains positive but it is 2 percentage points lower than the one
in December’s 2020 Taking Stock edition because of the negative effects
associated with the latest COVID-19 outbreak and is subject to further risks
to the downside. It is also lower than the government’s official projection
of a GDP growth rate of 6 per cent in 2021,” said the report. This new
projection assumes that the current outbreak will gradually be brought under
control, allowing the economy to rebound in the fourth quarter. This rebound
will also be supported by the acceleration of the vaccination programme,
which should cover at least 70 per cent of the adult population by mid-2022,
preventing severe outbreaks. “This
projection should be made with caution as serious uncertainties remain around
the magnitude and duration of the pandemic, including the rise of new
variants and the pace of vaccination in Vietnam and in the rest of the
world,” said Dorsati Madani, senior economic expert from the World Bank in
Vietnam. “If these risks materialise, Vietnam’s economic recovery will be
delayed, and the GDP growth rate in 2021 will be lower than the projected 4.8
per cent.” Vietnam’s
short- to medium-term economic prospects will depend on several factors such
as the pace of national vaccinations; the evolution of the coronavirus
pandemic, and thus resumption of economic activities in countries that
compete with Vietnam in export markets; and weaker-than-expected growth
especially in Vietnam’s key export markets could weigh on the recovery.
Currently, the recovery in the US, the European Union, and China is underway
but remains fragile. “If one or
more of these risks were to materialise, exports and domestic demand would
not rebound as expected. The economy could in a low case scenario still grow
by 3.2 per cent in 2021 and 5.5 per cent in 2022,” the World Bank report
stated. However,
global analysts FocusEconomics last week also predicted that Vietnam’s GDP is
projected to grow at one of the fastest paces in the region this year, with
domestic activity rebounding on a strong manufacturing sector and improving
foreign demand boosting exports. “However, the recent surge in daily COVID-19
cases represents a key downside risk to the outlook. Our panelists expect GDP
to expand 5.8 per cent in 2021, which is down 0.6 percentage points from last
month’s forecast, and 6.8 per cent in 2022.” According to
experts, the most effective immediate solutions now to protect people’s lives
and spur on economic activities will be boosting vaccination programmes. However, in
the long term, there may be new variants of the pandemic which can continue
causing disruptions in traveling, production, and business activities. Thus
Vietnam needs to develop a contactless economy with the application of
digital technologies. This will enable the nation to escalate in the regional
and global value chains. “If one
believes in the predictive power of financial markets, digitalisation will be
the future of the Vietnamese economy,” said Jacques Morisset, the World Bank
lead economist and Programme Leader for Vietnam. Over the
past year, the value of several local high-tech companies has surged by
around 200 per cent on the Ho Chi Minh City Stock Exchange, including
Digiworld, a market expansion provider, and Vien Lien, a telecommunications
equipment business, which were up by 252 per cent and 189 per cent,
respectively. “As the
world tries to emerge from the COVID-19 crisis, it has become clear that
digital transformation will have an increasingly important role in the global
economy,” Morisset said. “Countries are already competing globally for
digital supremacy, and the Vietnamese government has clearly indicated it wants
to be in the race by making digital transformation one of the central
objectives of its 2021–2030 National Development Strategy.” According to
Hoang Anh Tu, vice head of the Ministry of Information and Communications’
Department of International Cooperation, the government has issued the
National Digital Transformation Programme with the three key pillars of
digital government, digital economy, and digital society. Vietnam’s goal by
2025 is that the digital economy will create 20 per cent of GDP, while there
will be 100,000 digital technology enterprises, and Vietnam will be the best
place in the region for digital businesses to do business and succeed, and
the country will become a digital nation. “We are
living in an uncertain world and we all want to find certainty in
uncertainty,” Tu said. “I think two things are bound to happen. One is
digital transformation and digital technology will continue developing, and
another is Vietnam will overcome COVID-19 and soon return to the new normal.” Currently,
Vietnam is one of the fastest-growing internet economies in the region,
although arguably from a low base, according to the World Bank. Concretely,
e-commerce sales have been growing at a similar pace as world e-commerce
sales and faster than GDP. In 2020, Vietnam’s e-commerce market value reached
almost $12 billion or 2.5 per cent of GDP. It is
estimated that 53 per cent of the population has shopped online using social
networking platforms, such as Facebook and Zalo, or e-commerce platforms like
Lazada, Shopee, and Tiki. According to
an e-commerce development plan approved by the Vietnamese government, the
sector’s revenues are targeted to reach $35 billion by 2025. To achieve that
target, e-commerce sales will have to annually grow by roughly 16.2 per cent. But Morisset
said Vietnam is in a good but uneven position to become a digital powerhouse.
“Vietnam is one of the most connected in the world, especially for its income
level, with high mobile and internet penetration rates, and an increasing use
of IT tools and platforms by businesses. It also hosts several of the world’s
leading IT companies,” he said. “However, Vietnam is lagging in several
dimensions such as skills, financing, and a conducive regulatory environment
that include data access and security, that will prevent it from making the
most of the rapid digital transformation.” To become a
digital powerhouse, he suggested, Vietnam will need to offer the conditions
that will enable its local operators to adopt and adapt new global digital
technologies. “So far, the
country has done a good job. Today, it compares well to peer and aspirational
comparators in penetration of mobile phones and its citizens and enterprises
are well connected to the internet,” Morisset said. “Its digital
infrastructure is quite modern, covering all provinces, and funded by
forward-looking national telecommunication companies. It also hosts several
world-leading IT firms such as Apple, Samsung, and Intel. This demonstrates
Vietnam’s competitiveness and offers a unique platform for local firms and
developers - the model adopted by Japan and South Korea in the 1970s and
1980s, and more recently by China.” Vietnamese agricultural products favoured in choosy EU market Amidst
difficulties caused by the COVID-19 pandemic, the export of agricultural and
aquatic products to the EU still sees many bright signs as Vietnamese
enterprises have directly exported fresh fruits to foreign partners. According to
the Ministry of Industry and Trade, in the first seven months of 2021, the EU
was Vietnam’s third biggest market after the US and China, with a total
export turnover of 22.6 billion USD, up 15.6 percent year-on-year. Of the 28.6
billion USD worth of export revenues of agro-fishery-forestry products, the
EU market accounted for 11 percent. The year
2021 is considered an important milestone when fruits such as fresh litchi
and longan are directly exported to Western European countries such as the
Netherlands, Belgium, France, Germany, and the UK by Vietnamese companies. It
is noteworthy that Vietnam’s fresh litchi is sold not only in the Asian
supermarket or stores but also European supermarket chains. A
representative of the Vietnam Trade Office in Belgium and the EU said that to
help Vietnamese goods better access the EU market, it will coordinate with
the Department of Agricultural Product Processing and Market Development
under the Ministry of Agriculture and Rural Development to make a list of
prestigious fruit processing and exporting enterprises across the country to
connect with partners, and continue looking for new ones in the EU. The office
proposed localities pay more attention to calling on domestic exporters to
closely link with households and businesses and cooperatives to promote
production with Global GAP certification, and support exporters to ensure the
smooth circulation of commodities. Regarding
the export of aquatic products to the EU market, a representative of the
Vietnam Trade Office in Spain advised exporters to fully meet technical
standards on food safety and hygiene from catching, preserving to processing
and transporting so as not to violate current food safety regulations of the
EU in general and Spain in particular. The EU and
Spain are increasingly interested in the social responsibility of enterprises
in producing and exporting goods of the third countries./. Vietnam requests investigation into Thai sugar’s trade remedy
evasion The Ministry
of Industry and Trade (MoIT) received requests on September 1 from the
Vietnam Sugar Association and six domestic producers for an investigation
into the trade remedy evasion for cane sugar products which originate from
Thailand. Though
Vietnam recently enforced anti-dumping and anti-subsidy duties on cane sugar
imported from Thailand, there are signs that these products pass through
ASEAN members such as Cambodia, Indonesia, Malaysia, and Myanmar before they
enter Vietnam in order to evade trade remedies. Most
notably, the sugar import turnover from ASEAN member nations, with the
exception of Thailand, has increased sharply. Earlier, the
MoIT on June 15 imposed anti-dumping and anti-subsidy duties of 42.99% and
4.65%, respectively, on several sugar products originating from Thailand. At present,
the MoIT has actively co-ordinated with the Vietnam Sugar Association to
strictly monitor the import situation and collect information for a further
investigation into the case. Online trade promotion - Leverage to boost connectivity, improve
brands
Online trade
promotion is currently considered as an effective solution for businesses to
maintain contacts with their export markets and also a tool to learn about
market trends, developments and demand. The outbreak
of COVID-19 in many countries has forced Vietnam’s import and export markets
to take strong measures to contain the spread of the pandemic. This has
hindered the organisation of traditional trade promotion activities of
enterprises. Therefore, a
change in the work is a must to create a leverage for industries and
businesses to connect with and build brands in their export markets to
overcome the pandemic. In fact, a
shift from offline fairs to online promotion has helped increase export
turnover and exploit new markets in the new situation. According to
the Ministry of Industry and Trade, Vietnam’s total trade turnover in July is
estimated at 55.7 billion USD, a month-on-month rise of 1.5 percent. Demand for
imports remains high, as countries are speeding up vaccination against
COVID-19 and reopening their doors, thus helping raise the demand for
textiles, footwear, furniture and electronics from Vietnam. In addition,
free trade agreements are being implemented in a more comprehensive and
effective manner, and expected to continue promoting Vietnam's exports. Therefore,
online trade connectivity is a golden key for the goods of Vietnamese
enterprises to reach out to the world. General
Director of the Hanoi Trading Corporation Vu Thanh Son said, with the cost
equal to one tenth of that of face-to-face contact, online connectivity is
currently a solution for businesses to maintain contacts with their export
markets, as well as a tool to learn about market trends, developments and
needs. Moreover,
enterprises can do marketing globally, access information and conduct
transactions with customers around the clock. However,
experts advised enterprises not to rely only on state promotion programmes,
but actively trade and connect online with partners around the world through
the use of e-commerce platforms or social networks./. Vietnam attends CPTPP ministerial-level talks A Vietnamese
delegation, led by Minister of Industry and Trade Nguyen Hong Dien, attended
at a ministerial-level talks of the 11-member Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) on September 1. At the
virtual meeting chaired by Japanese Economic and Fiscal Policy Minister
Nishimura Yasutoshi, participants affirmed amid complicated COVID-19
developments, the CPTPP deal makes a significant contribution to the recovery
of economy, trade, and global supply chains. They said
they will sustain and consolidate the multilateral trade system centred
around the World Trade Organization (WTO) and committed to closely cooperate
with WTO members at the organisation's upcoming 12th Ministerial Conference. The
ministers also discussed the expansion of the CPTPP and agreed to hold the
first working-level meeting to discuss the United Kingdom's entry. Concluding
the function, a decision on the establishment of a subcommittee on e-commerce
and a joint statement were passed. The next
meeting is expected to fall in mid-2022 under the chair of Singapore./. CPTPP ministers agree to set up e-commerce subcommittee Participants
at a ministerial-level talks of the 11-member Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) on September 1 agreed to set
up a subcommittee on e-commerce toward boosting trade through digitalisation. As reported by
Japan Broadcasting Corporation NHK, the virtual event, also known as TPP11,
saw an agreement on holding the first working-level meeting to discuss the
United Kingdom's entry in about a month. Speaking to
reporters after the meeting, Japanese Economic and Fiscal Policy Minister
Nishimura Yasutoshi said Britain's entry may have great importance in
allowing the CPTPP rules to apply beyond the Asia-Pacific region. He said
member states are now working closely to arrange the opportunity to discuss
the UK's admission. Signed in
Chile in March 2018, CPTPP now has 11 members including Australia, Brunei,
Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and
Vietnam, accounting for 13 percent of world GDP. It became
effective on December 30, 2018 after it was ratified by Australia, Canada,
Japan, Mexico, New Zealand and Singapore. In Vietnam, the deal came into
force in January 2019. In February
2021, the UK applied to join the bloc./. Cooperative alliance promotes agricultural supply-demand links
Agricultural
cooperatives are facing a host of difficulties at this time, such as supply
chain disruptions, large inventories, and rising input costs, among others.
To help them overcome the difficulties, the Vietnam Union of Cooperatives has
bolstered agricultural supply and demand links. The revenue
and profit of 90 percent of cooperatives have sharply declined, and half of
all cooperatives have ceased production. To help them overcome the
difficulties, the Cooperative Alliance has been working to offer them
assistance to maintain operations. Cooperatives
are viewed as a bridge helping farmers connect with businesses and find
markets for their products. In order to thoroughly resolve problems in supply
and demand facing the agricultural products of cooperatives, however, it is
necessary to identify synchronous solutions from authorised agencies./. Mekong Delta region seeks to revive tourism industry
The
tourism industry in general and accommodation service businesses in the
Mekong Delta are struggling to maintain operations as the number of visitors
to regional provinces and cities has decreased rapidly in recent months due
to complicated developments of the COVID-19 pandemic. According to
the local tourism sector, Dong Thap welcomed about 600,000 visitors in
the first quarter of this year, down 27 percent from the same period in 2020. Statistics show
that the Mekong Delta is home to about 2,490 accommodation
establishments. Experts
believed that it is now time to re-evaluate tourism activities, make
plans and prepare long and medium-term strategies to promote
tourism development in the coming time. The Mekong
Delta, which was identified as one of the seven tourist regions of the
country, has rich tourism resources, with over 28,000 km of canals, a
diverse ecosystem, and unique cultural values. It boasts great potential to
become an important resort destination in the southern region. Experts
said that attention should be paid to tapping the strengths to develop
tourism forms, such as ecotourism, resort, sea and island tourism,
MICE (meetings, incentives, conferences and exhibitions) tourism,
culture-history tourism, spiritual tourism, and agriculture and
community-based tourism. The
region needs to focus on diversifying tourism products which can exploit its
advantages such as eco-resort tourism associated with health care,
agriculture and outdoor activities, they noted. Last year,
localities in the Mekong Delta region served only 28.5 million visitors,
earning 21.88 trillion VND, down over 38 percent and 50 percent year-on-year,
respectively./. Vietnam advised to speed up digital transformation for
socio-economic development Vietnam will
need to do more if it wants to become a digital powerhouse as
envisioned in the socio-economic development strategy adopted by the Party in
February 2021, said a report of the World Bank. In
its latest edition of Taking Stock – the World Bank’s
biannual update on Vietnam’s economic performance, the WB stressed that
Vietnam needs to ensure the development of a digitally skilled labour force,
the emergence of a dynamic and agile local private sector, and good but
secure access to information. The report
reviews the recent developments in the Vietnamese economy and discusses the
economy’s short- to medium-term prospects, highlighting domestic and external
risks associated to the COVID-19 pandemic. The report
said that in order to improve its economic autonomy, Vietnam needs to take
advantage of existing conditions to become a digital powerhouse. “While
downside risks have heightened, economic fundamentals remain solid in
Vietnam, and the economy could converge toward the pre-pandemic GDP growth
rate of 6.5 to 7 percent from 2022 onward”, Rahul Kitchlu, World
Bank Acting Country Director for Vietnam, said in the WB's recent press
release. Vietnam aims
to be among the top 50 countries in the ICT Development Index as
early as 2025, and its digital economy is hope to account for one third of
the country's GDP by the end of the decade, instead of only 5 percent. According to
Jacques Morisset, WB Lead Economist for Vietnam, digital
transformation is happening in Vietnam and the COVID-19 shock is a big
driving factor. Since the appearance of the COVID-19 pandemic, Vietnam has
witnessed a great change in the application of new digitization tools in both
private and public sectors. The WB
estimated that in June 2021, about two-thirds of private enterprises in
Vietnam have access to technologies related to the digital economy. This is a
huge leap from the pre-COVID-19 period. Vietnam
still has a lot of work to do, Morisset said. In addition
to upgrading infrastructure, Vietnam needs to encourage the application of
digital technology and attract investment to create conditions for small
businesses to participate in the digital economy, he added. He also
underlined the necessity for Vietnam to upgrade digital technology
infrastructures, and equip workers with digital skills to help them become
more dynamic in adapting to new technologies. In the short
term, Vietnam can take advantage of the presence of many famous technology
enterprises such as Intel, Apple and Samsung to learn and improve digital
skills for local labourers working for these corporations, he said. The
Vietnamese Government can issue a series of initiatives to attract talents
from expatriates working in digital technology fields around the world, he
added./. Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes |
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