VIETNAM BUSINESS NEWS SEPTEMBER 8
09:29
Deputy PM heads State Steering Committee for Key
Petroleum Projects
Prime Minister Pham
Minh Chinh has assigned Deputy Prime Minister Le
Van Thanh as head of the State Steering Committee for Key
Petroleum Projects. Deputy heads
of the Committee are Minister of Industry and Trade Nguyen
Hong Dien (permanent), Chairma n of the Commission for the
Management of State Capital at Enterprises Nguyen Hoang Anh, Deputy
Minister of Industry and Trade Dang Hoang An and Deputy Minister of
Construction Le Quang Hung. The
Committee shall be responsible for directing, inspecting and speeding up
the implementation of the Prime Minister’s decisions on key oil and gas
investment projects; coordinate with relevant ministries, agencies and
localities in addressing obstacles related to compensation, resettlement
and site clearance. Under authorization
of the Prime Minister, the Committee is tasked with making decisions to
directly handle specific issues arisen in the process of implementation of
key oil and gas projects./. Growth prospect of absorption rate looks promising in Vietnam Although
this was considered an improvement compared to the negative absorption rate
of last year. However, experts said, this segment still has to face
challenges in the last months of this year because Vietnam is continuing to
apply strict measures to control the disease. This leads to a very limited
possibility of growth in rental price in the last months of the year. The new
variants of COVID-19 with restriction measures in many markets
continue to be a major risk affecting the economy and real estate market of
the Asia-Pacific region in the next 12 months, especially for emerging
economies in Asia, CBRE said. Therefore,
experts expected the governments of Asia - Pacific countries will maintain an
appropriate monetary policy to support economies in the fragile recovery
stage. Accordingly, the low interest rate environment will promote continued
investment in cumulative yielding assets such as real estate. This trend
is reflected by the fact that investment volume has grown far beyond rental
activity, said Dr. Henry Chin, Global Head of Investor Thought Leadership
& Head of Research at CBRE Asia Pacific. CBRE's
survey in the Asia-Pacific market showed that this year, office leasing
activity is gradually improving, as rental demand has been recovered compared
to the previous year. The absorption rate increased by about 20% in the
first half of 2021, driven by strong performance in the North Asian market. Full-year
rental demand is expected to increase by 10-15% over the same period
last year, higher than the 5 percent forecast at the beginning of the year.
Markets that still maintain positive performance include Singapore, Taipei
(China), Seoul (the Republic of Korea). According to
Ada Choi, head of Leasing Operations Research, Intelligence Data Management
at CBRE Asia Pacific, office tenants in the Asia-Pacific region will continue
to have an advantage for the remaining time of this year as 60% of the
year's new supply is expected to come into operation at this time. Thus, they
should renegotiate the lease or consider moving offices to selected locations
of better quality, while being able to ensure lease agreements have more
flexible terms, she said. For the
owners of office buildings, this is the time to prioritise ensuring occupancy
rates by offering attractive terms to attract good quality tenants, said Ada
Choi. The CBRE
forecast that rental fees in the Asia-Pacific region will stabilise in 2022,
in which the fees at shopping centres serving daily necessities will have a
stronger recovery. For the
Vietnamese market, although retail sales have recovered from the first
quarter of this year, most retail sectors, except for essential items,
experienced a decrease in sales growth in the second quarter when Vietnam
imposed a period of social distancing in many provinces and cities in both
the north and south, it said. Faced with
that situation, many retailers have turned to online sales channels. This
method is forecast to be the new retail business standard which is welcomed
by both shopping centres and retailers as Vietnam gradually overcomes the
pandemic. Notably, CBRE
experts predicted that rental prices will have a strong recovery in the
south. Regarding the northern region, although most investors and tenant
sentiment is quite positive, the large supply in the next two years will make
landlords likely to prefer a high occupancy rate rather than rent growth,
they said. COVID-19: SBV issues new document on rescheduling of debt
payments
The State
Bank of Vietnam (SBV) on September 7 issued a circular amending and
supplementing a number of articles of Circular No. 01/2020/TT-NHNN issued by
the SBV Governor directing foreign credit institutions and bank branches to
reschedule debt payments, waive and reduce borrowing interest and fees, and
maintain the groups in order to support customers affected by the COVID-19
pandemic. Accordingly,
Article 4 of the new Circular 14/2021/TT-NHNN requires foreign credit
institutions and bank branches to reschedule debt payments for outstanding
amounts of principal and/or interest of debts, including those subject to the
Government's Decree No. 55/2015/ND-CP dated June 9, 2015 on credit policies
for agricultural and rural development as amended and supplemented, that
fully satisfy the following conditions: arising from lending activities,
financial leasing before August 1, 2021; the obligation to repay the
principals and/or interest arising between January 23, 2020 to June 30, 2022;
and the outstanding balance of the debt is still within the payment period or
is overdue for up to 10 days. The
circular, which took effect from September 7, stipulates that the time for
debt rescheduling, including the case of debt extension, will depend on the
impact of the pandemic on customers and must not exceed 12 months from the
date credit institutions and foreign bank branches decide to restructure the
repayment term, or from the repayment due date of debts subject to
rescheduling. Under the
circular, foreign credit institutions and foreign bank branches can decide on
the exemption or reduction of interest and fees in accordance with their own
regulations for debts arising before August 1 where the obligation to repay
principal or interest is due between January 23, 2020 to June 30, 2022, and
their customers are unable to repay on schedule due to the pandemic./. NA Chairman works with leaders of Aone Deutsland AG, Strabag National
Assembly Chairman Vuong Dinh Hue had a working session with Alexander
Redeker, CEO of Aone Deutsland AG and leaders of Strabag on September 6 as
part of his trip to Austria to attend the fifth World Conference of Speakers
of Parliament (WCSP5). Aone
Deutsland AG is a member of Germany’s Tilia Group, one of the world leading
firms in the fields of construction, real estate, waste and waste treatment,
energy and resource management. In 2019, Tilia’s revenue reached 34.27
billion EUR (40.7 billion USD), with more than 500 projects worldwide. Meanwhile,
Strabag specialises in constructing houses, bridges, roads, power plants and
waterworks and waste water treatment plants. It has more than 700 branches in
60 countries with 72,000 employees. Strabag is partnering with Aone Deutsland
AG to implement a number of infrastructure, water and waste treatment, energy
and renewable energy projects in Vietnam. At the
session, representatives of the two companies showed their interest in
strengthening cooperation in carrying out more infrastructure projects in
Vietnam, especially those in water and waste treatment, expressway
construction and energy development, as well as projects in public-private
partnership (PPP) form. Hue
underlined that projects in which Aone Deutschland AG and Strabag are
interested are in areas that Vietnam is calling for investment. In order to
concretise plans to implement the projects in the time to come, the
Vietnamese NA leader suggested these groups work with the Ministries of Planning
and Investment, Industry and Trade, and Transport, as well as relevant
agencies and localities of Vietnam. Besides, Hue
also proposed the firms and partners support the German Government’s
provision of COVID-19 vaccines for Vietnam as soon as possible to help the
country speed up vaccinations and reach herd immunity soon, thus bringing the
life to normal./. Investment projects create development momentum for Thai Binh The People’s
Committee of the northern province of Thai Binh recently handed over
investment registration certificates to investors of projects worth nearly
600 million USD, which are hoped to create a driving force for the local
socio-economic development. At the
handover ceremony, the certificates were presented to five projects in industrial,
agricultural and urban development sectors. Of note, permission to invest in
the Thai Binh Economic Zone was granted to Lotes Vietnam, Greenworks, and
Jeanson Industrial Limited. All the
projects apply modern technologies and are expected to attract further
investments in the economic zone in particular, and Thai Binh province at
large. A signing
ceremony for a cooperation agreement worth nearly 100 million USD between
Green I-Park company and Nam Tai Group at the Lien Ha Thai industrial park of
the Thai Binh Economic Zone also took place at the event. Chairman of
the provincial People’s Committee Nguyen Khac Than affirmed that the granting
of certificates to investors in Thai Binh demonstrates efforts in realising
the dual targets of curbing the spread of COVID-19 and fostering economic
development, amid difficulties triggered by the ongoing pandemic. He called on
investors to promptly carry out the projects to ensure progress and tasks,
asking production and business operations to be in tandem with environmental
protection and apply high-technology. Local
authorities are committed to mobilising all resources for the completion of
technical infrastructure, improvement of investment climate and
administrative reform, as well as rolling out solutions to address
bottlenecks and create optimal conditions for the firms, Than stated. Although
foreign direct investment in the province stood at only 900 million USD in
the past two decades, it saw improvement as three recent ones valued at 395
million USD./. VinaCapital economist warns against irrational exuberance in
stock markets Investors
should not try to play the stock market “timing” game by selling stocks now
and try to re-enter later, investment fund VinaCapital has warned. Michael
Kokalari, chief economist at VinaCapital, said: “The consensus expectations
for 38 per cent EPS growth in 2021 are too optimistic. That said, earnings
should rebound vigorously next year, so we caution investors not to play the
market timing game.” “We are
monitoring some unorthodox indicators of industrial activity at factories
that produce high-value products (inspired by hedge funds use of unorthodox
data, such as satellite imagery of Walmart parking lots). “From early
July we observed many buses transporting workers back and forth between
hotels in central HCM City and factories located in Viet Nam’s industrial
suburbs.” He said
foreign companies like Panasonic and Samsung could afford to house employees
at hotels and take other COVID mitigation steps, but the profit margins of
firms that produce low value-added products such as garments and furniture
are much lower. “Consequently,
companies producing garments, shoes, and other low-margin products are having
a hard time maintaining their production, and Viet Nam’s exports of such
products plunged in August. “This drop
will act as a drag on Viet Nam’s GDP growth.” “We are
currently revising our GDP growth forecast and note that our forecasts have
consistently been below and more accurate than the consensus.” The
Government is prioritising vaccinating people in the greater HCM City area,
given the region’s economic importance and considering it and the industrial
suburbs of Binh Duong, Dong Nai and Long An account for over one-third of the
country’s GDP. The
proportion of adults who have received at least one dose of a COVID vaccine
has increased from less than 5 per cent in late July to more than 15 per
cent. Kokalari
said the Government’s strategy now incorporates objective criteria to assess
COVID risks by neighbourhood, which should enable an orderly reopening once
certain public health milestones are met. They include
a reduction in the number of daily new COVID cases and deaths, and an
increase in the number of people who are vaccinated, he added. Tran Minh Binh becomes new chairman of VetinBank CEO Tran
Minh Binh has been appointed as chairman of the bank's Board of Directors. Accordingly,
Tran Minh Binh, member of the Board of Directors and CEO of VietinBank, has
been appointed as the new chairman of the board. The decision
comes two months after the bank's former chairman, Le Duc Tho, was appointed
as Secretary of Ben Tre Party Committee. Binh was
born on December 7, 1974 in the central province of Quang Binh. He holds a
Master's degree of Business Administration from National Economics University
of Belgium. He has more
than 22 years of experience working at VietinBank, including 17 years in key
professional management positions at the head office and branches and eight
years in senior leadership positions. On the same
day, Vietinbank’s Board of Directors also assigned Nguyen Hoang Dung, former
deputy CEO as the new CEO. Dung, born
in 1962 in the Mekong Delta province of Ca Mau, holds a Master's degree in
Economics from the University of Economics - Vietnam National University, Ho
Chi Minh City. CAAV proposes measures to resume domestic flights amid COVID-19 The Civil
Aviation Authority of Vietnam (CAAV) has proposed the classification of domestic
airports depending on the levels of COVID-19 risks to serve the re-opening of
regular domestic flights in a safe manner amid the pandemic. In its draft
proposal, 22 airports across the country should be divided into three groups
with three zones – green zones, which comprise airports in cities and
provinces that are not subject to social distancing measures, yellow zones
(airports in localities with parts applying social distancing measures) and
red zones (airports in localities imposing social distancing measures). The CAAV
proposed that flights from green zones to other green zones and yellow zones
and red zones can operate without limits in the nume of passengers. However,
passengers must show a negative result from a COVID-19 test conducted within
72 hours. Passengers
on busines trips and personnel serving pandemic prevention and control flying
from yellow and red zones must only carry negative COVID-19 testing results
within 72 hours. The CAAV
also promosed permitting airlines to sell tickets for domestic flights with
specific conditions. According to
the authority, the goal of the proposal is to build an automatic mechanism
for airlines to build their operation plans, while creating favourable
conditions for the transport of personnel and medical supplies serving
pandemic prevention and control and helping remove difficulties facing
airlines. The proposal
also aims to promote the economic recovery process in localities and
businesses. CAAV
Director Dinh Viet Thang said that the authority is collecting ideas to
complete the draft proposal before submitting to the Transport Ministry./. Vietnam seeks to promote agricultural exports to Turkey Despite
facing complicated developments caused by the COVID-19 pandemic, there
remains bright spots for local agricultural exports, such as cashew nuts, pepper,
rubber, rice, and coffee to the Turkish market, according to the Vietnamese
trade office in Turkey. According to
data compiled by the Turkish Statistical Institute (TUIK), Vietnam took
the lead in terms of cashew nut exports to Turkey, accounting for
approximately 94% of the overall market share of cashew exports to this
market during the first half of the year. The country
exported a total of 4,607.82 tonnes of cashew worth US$16.47 million to
Turkey throughout the reviewed period, representing a rise of 52.8% in
volume, despite facing high transportation costs and a shortage of containers
due to the COVID-19 pandemic. Furthermore,
the country continues to retain the leading position in relation to exporting
pepper to Turkey, with 2,236.3 tonnes worth more than US$4.32 million during
the six-month period. This figure
represents a sharp increase of 27.6% in volume and 37.1% in value, thereby
accounting for roughly 60% of the market share of export value to Turkey. Moreover,
the country currently ranks fourth in export turnover of natural rubber
products, making up 11.7% of the export market share to the Turkish market. This move
indicates that Turkish rubber importers have gradually paid greater attention
to Vietnamese products due to its price and quality, as opposed to the same
products from regional peers such as Indonesia or Thailand. The Vietnam
Trade Office in Turkey has therefore advised domestic enterprises to
participate in trade promotion schemes such as WorldFood Istanbul and Sirha
Istanbul in Turkey in order to seek co-operation opportunities with Turkish
businesses. Vietnamese
enterprises must also introduce products with geographical indications
for cashew products, such as Binh Phuoc cashew in order to make a difference
in terms of quality compared to other products, according to the trade
office. HAG shares continue to trade under supervision of HoSE The Ho Chi
Minh Stock Exchange (HoSE) has decided to keep Hoang Anh Gia Lai JSC (HAG)
shares under its control. Accordingly,
on August 30, HoSE received Hoang Anh Gia Lai’s semi-annual reviewed
consolidated financial statement for 2021. Of which, profit after tax of the
holding company’s shareholders in the first six months of 2021 is VND18.21
billion (US$800,661) and the undistributed profit after tax as of June 30 is
negative VND7.37 trillion. Besides the
losses, auditors also noted that the company has an accumulated loss of
nearly VND7.1 trillion in its consolidated financial statement. In addition,
as of June 30, the company violated a number of commitments under the loan
contract. These conditions indicate the existence of uncertainties, raising
doubts on Hoang Anh Gia Lai’s working ability. Therefore,
HoSE continues to maintain its supervision over HAG shares and will consider
the next course of action after receiving its audited consolidated financial
statement in 2021. Regarding
the audit's exception, Hoang Anh Gia Lai explained that the company has
planned for the next 12 months, including the expected cash flow to be
generated from a part of financial investments liquidation, debt collection
from partners and cash flow generated from ongoing projects, at the date of
its financial statements for the first half of 2021. It is also
in the process of working with the lenders on correcting the breached terms
of the relevant loan agreements. Accordingly, the company can repay the debts
when they become due and continue operating in the next accounting period. Under these
conditions, the company’s Board of Directors prepares the interim financial
statements on the basis of satisfying the ongoing concerns. Moreover,
Hoang Anh Gia Lai also approved collecting shareholders' opinions on the use
of equity surplus to reduce accumulated losses with a total value of nearly
VND3.3 trillion. On the stock
market, HAG shares traded lower at VND5,100 per share yesterday, down 1.93
per cent. Public investment capital disbursement remains slow Only over
220.7 trillion VN D (9.7 billion USD) worth of public investment capital was
disbursed by the end of August, or 40.6 percent of the plan assigned by the
Prime Minister. The figure
was 5.8 percent lower than the same period last year. Of which, the
disbusement of domestic capital reached 44.7 percent while that of foreign
capital hit 7.94 percent compared to 21.26 percent recorded in the same
period last year, said the Finance Ministry. So far, 10
ministries and 26 localities have recorded disbursement of over 40 percent of
the plan. Meanwhile, 33
out of 50 ministries and 18 out of 63 localities disbursed below 30 percent,
with 21 ministries and one locality below 10 percent. Four ministries have
not yet made disbursement. The Finance
Ministry attributed the slow disbursement to COVID-19 outbreaks in many
localities and the suspension of projects in areas under social
distancing order in line with the Prime Minister’s Directive
No.16/CT-TTg. Other causes
relate to site clearance, changes in planning in several loclaities, and
import of equipment in need of foreign consultants’ approval. Moreover,
localities and several foreign sponsors have yet to reach consensus on
project implementation process, including in the control of expenditures and
disbursement. Asso. Prof
Dinh Trong Thinh suggested cutting down unnecessary procedures and improving
the role of management agencies in planning, appraisal and bidding. The Finance
Ministry also urged centrally-run agencies and localities to seriously follow
the Prime Minister’s directions in Dispatch No.1082/CD-TTg dated August 16,
2021 on stepping up disbursement of public investment
capital 2021./. Banks continue lower deposit interest rates The deposit
interest rates at major banks has continued to decrease since the beginning
week of September. With its
adjustment from 5.6 percent to 5.5 percent annually for 12-36 month-term
savings, the Bank for Investment and Development of Vietnam (BIDV) and the
Vietnam Bank for Agriculture and Rural Development (Agribank) are maintaining
the lowest rates in the banking sector, like the Joint Stock Commercial Bank
for Foreign Trade of Vietnam (Vietcombank). Meanwhile,
the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank)
keep its deposit interest rate at 5.6 percent for savings from 12 months.
Interest rates for savings with terms from 1-3 months are varied from 3.1-3.4
percent per annum, while the rate for 6-9-month savings is 4 percent per
year. Reductions
between 0.2-0.4 percent has been seen in deposit interest rates for different
saving terms in joint stock commercial banks. Statistics
from the State Bank of Vietnam showed that the interest rates have been at
the lowest level in many years. However,
some banks have still kept deposit interest rates at over 7 percent per annum
for large savings, including the Asia Commercial Bank (7-7.3 percent),
Techcombank (7.1 percent), and MSB (7 percent). Economist
Nguyen Tri Hieu held that in order to help businesses overcome COVID-19
impacts, it is necessary to set up credit complex in association with a
Credit Guarantee Fund with a total loan limit of 300 trillion VND with the
engagement of banks at a participation rate of about 3 percent of each bank's
outstanding loans./. MSB allowed to add $155 million to its capital The State
Bank of Viet Nam (SBV) has just allowed Maritime Bank (MSB) to raise its
charter capital by more than VND3.5 trillion (US$155 million) from the
current level to nearly VND15.3 billion through stock dividends. Maritime
Bank said that the rise was equivalent to 30 per cent of the bank's current
capital of VND11.75 trillion. The additional capital would come from the
bank’s share issuance to pay dividends. Accordingly,
the bank will issue an additional 352.5 million shares to pay dividends to
existing shareholders, raising the total number of outstanding shares to
nearly 1.53 billion. The capital
used to pay dividends is sourced from undistributed profit after tax after
setting aside funds in 2020. The bank’s consolidated audited financial
statement for 2020 showed that the undistributed profit after tax that can be
used to pay dividends is up to nearly VND4.8 trillion. The rise in
charter capital is to ensure capital adequacy ratios and risk management to
meet Basel II international standards, heading toward Basel III, and to
improve financial capacity to meet requirements for business development,
investment in strategic projects in the 2021 - 2023 period. Maritime Bank
is expected to finalise the list of shareholders entitled to receive
dividends in September and complete the dividend payment this year. Vietnam becomes leading market of Cambodia’s cashew nuts Vietnam was
the largest market of Cambodia’s cashew nuts in the first eight months of
2021, according to Thmey Thmey newspaper of Cambodia. Cambodia
exported about 876,531 tonnes of cashew nuts in the January-August period, up
350 percent compared to the same period last year, the newspaper cited data
from Cambodia's Agriculture Ministry. Agriculture
Minister Veng Sakhon said 99 percent of the total cashew exports, or nearly
870,000 tonnes, were exported to Vietnam. The rise in export was attributed
to an increase in the area under cultivation and the stockpile from last
year. Currently,
Cambodia has more than 500,000 hectares of cashew trees in 10 provinces.
Kampong Thom province has the most land growing cashew trees with 90,959 ha,
followed by Kratie with 47,858 ha and Ratanakiri with 30,459 ha, according to
the Cashew Association of Cambodia./. Over 36.2 trillion VND raised through G-bond auctions in August The State
Treasury and the Vietnam Bank for Social Policies (VBSP) mobilised more than
36.2 trillion VND (1.59 billion USD) on the primary market via 20 Government
bond (G-bond) auctions on the Hanoi Stock Exchange (HNX) in August. Of the sum,
the State Treasury raised 29.7 trillion VND and the VBSP over 6.52 trillion
VND. Compared to
the end of July, annual interest rates for all the bonds issued by the State
Treasury decreased by 0.07 - 0.21 percent. In the first
eight months of 2021, the State Treasury raised over 199.25 trillion VND
through G-bonds, or equivalent to 56.93 percent of the yearly target. On the
secondary market, bonds worth more than 181.46 trillion VND were sold in the
month. The average trading value neared 8.25 billion VND per session, down
11.1 percent on-month. The total
volume traded via repos made up 26.8 percent of the total. Foreign
investors’ purchases accounted for 1.98 percent of the total value in August,
with net purchase value hitting 769 billion VND./. Standard Chartered, Britcham join to drive sustainable
development Standard
Chartered Vietnam and the British Chamber of Commerce in Viet Nam (Britcham)
have signed a partnership agreement to promote sustainable development in
Viet Nam and the application of Environmental, Social & Governance (ESG)
policies among businesses. The first
activity is the launch of a webinar series covering six matters related to
ESG and sustainability. This will support participating businesses and
organisations to devise effective strategies for sustainable development. The
events will involve key stakeholders from the government, regulators and
industry thought leaders. Michele Wee,
CEO for Standard Chartered Vietnam, said: "Adopting a sustainability
mindset and ESG in their investments and operations will help businesses
create long-term, resilient growth, which will then translate into social,
environmental and economic benefits for Viet Nam. We need to accelerate investor
education to achieve progress and make a difference. We are very pleased to
partner with Britcham in this meaningful initiative." "We aim
to help emerging markets and here in Viet Nam to reduce carbon emissions as
fast as possible, without slowing development, putting the world on a
sustainable path to net zero by 2050. We want to support and mobilise finance
needed to provide people with clean energy, drive carbon-free transport and
facilitate the decarbonising of the manufacturing industry.” Denzel
Eades, a British Chamber of Commerce Vietnam board member, said: “The
governments of Viet Nam and the UK have both recognised the strategic
importance of sustainability in their development agenda. So have Britcham
member businesses." "The
webinar series is a further step in our efforts to promote sustainable
development in Viet Nam by providing our members the latest insights on the
global practices and local environment as it comes to sustainability and
ESG.” BritCham has
established the Sustainability Working Group, which aims to support the ESG
initiatives of its members. Standard Chartered Vietnam is an active member of
the working group. The bank’s vision is to be the world’s most sustainable
and responsible bank, and the leading private sector catalyser of finance for
SDGs where it matters most, across Asia, Africa and the Middle East. In the run
up to COP26 in Glasgow, the working group will be coordinating BritCham’s
engagement with programmes led by the UK Department for International Trade
to facilitate its member participation in the Race to Zero campaign and
involvement in the SME Climate Hub. The
sustainability webinar series hosted by Britcham and Standard Chartered
Vietnam will be an important component of these programmes. The first
webinar is scheduled to take place on September 28, 2021. The theme is:
“Carbon markets and their role in reducing greenhouse gas emissions,
perspectives from Viet Nam and Global.” PetroVietnam posts three-fold rise in pre-tax profits The Vietnam
Oil and Gas Group (PetroVietnam) reported that its pre-tax profit in the
first eight months of the year surpassed the set plan by 177 percent and
tripled the figure for the same period last year, reaching 30.2 trillion VND
(1.32 billion USD). During the
period, the group’s crude oil output surpassed the plan by 12.7 percent, and
the outputs of petrol, oil and fertiliser were also higher than the targets. The group's
total revenue hit over 390.7 trillion VND, exceeding the plan by 17 percent
and up 24 percent on a yearly basis. Its contribution to the State budget
soared by 38 percent to 56.9 trillion VND. PetroVietnam
cut costs by 2.04 trillion VND, equivalent to 75 percent of its yearly
target. It also contributed 733.8 billion VND to the COVID-19 fight, of which
554.9 billion VND went to the COVID-19 vaccine fund. However, the
group’s operation was severely affected in August when the social distancing
order was imposed in most of cities and provinces nationwide, including
several economic hubs such as Ho Chi Minh City and the southeastern region. Given the
challenges, the group has taken drastic actions to cope with the pandemic,
including imposing strict preventive measures, securing vaccination for its
employees, while rolling out suitable, effective production models. At the same
times, PetroVietnam units have kept updated on market developments, adjusted
production chains and boosted digital transformation to adapt to the new
working environment amid COVID-19. /. Bamboo Airways to operate first demonstration flight on Vietnam-US
direct route in late September Bamboo
Airways will operate its first two-way demonstration flight on the Vietnam-US
direct route on September 23. Under a
certificate granted by the US’s Transportation Security Administration to the
airline, Bamboo Airways will conduct 12 two-way flights on the route between
September and November this year. The flights
will take off and land in different airports of Vietnam (Noi Bai
International Airport in Hanoi and Da Nang International Airport in Da Nang)
and US (San Francisco and Los Angeles airports in California, and
Seattle-Tacoma airport in Washington). The
operation of the first demonstration flight is the first of a series of
activities of Bamboo Airways in the US, including the signing of MoUs with
San Francisco International Airport and Los Angeles International Airport,
the opening of a representative office in the US, and working sessions with
Boeing and US partners. According to
the airline, it has so far completed all important preparations to get ready
to operate regular commercial flights connecting Vietnam and the US from late
2021 or early 2022. Earlier,
Bamboo Airways officially entered into cooperation with the International Air
Transport Association (IATA) to trial the IATA Travel Pass from the fourth
quarter of 2021, laying a solid foundation for the airline’s reopening of
international routes. IATA Travel
Pass is a digital health wallet where passengers can upload and share their
COVID-19 tests and vaccinations certificates for travel. Health information
is an essential factor for both governments and carriers to conduct safe
flights during and after the pandemic. The IATA Travel Pass is considered a
safer and more effective solution compared to current paper-based procedures,
especially when it comes to a multitude of test and vaccination data needed
to be secured./. Growth prospect of absorption rate looks promising in Vietnam The real
estate market in the Asia-Pacific region will continue to
recover in the second half of this year, according to CBRE property
consultant experts. In the
Vietnamese market, the leasing demand also recorded positive signals, with
the amount of absorption area in Ho Chi Minh City and Hanoi in the first two
quarters of 2021 were close to pre-pandemic levels. Although
this was considered an improvement compared to the negative absorption rate
of last year. However, experts said, this segment still has to face
challenges in the last months of this year because Vietnam is continuing to
apply strict measures to control the disease. This leads to a very limited
possibility of growth in rental price in the last months of the year. The new
variants of COVID-19 with restriction measures in many markets
continue to be a major risk affecting the economy and real estate market of
the Asia-Pacific region in the next 12 months, especially for emerging
economies in Asia, CBRE said. Therefore,
experts expected the governments of Asia - Pacific countries will maintain an
appropriate monetary policy to support economies in the fragile recovery
stage. Accordingly, the low interest rate environment will promote continued
investment in cumulative yielding assets such as real estate. This trend
is reflected by the fact that investment volume has grown far beyond rental
activity, said Dr. Henry Chin, Global Head of Investor Thought Leadership
& Head of Research at CBRE Asia Pacific. CBRE's
survey in the Asia-Pacific market showed that this year, office leasing
activity is gradually improving, as rental demand has been recovered compared
to the previous year. The absorption rate increased by about 20 percent in
the first half of 2021, driven by strong performance in the North Asian
market. Full-year
rental demand is expected to increase by 10-15 percent over the same period
last year, higher than the 5 percent forecast at the beginning of the year.
Markets that still maintain positive performance include Singapore, Taipei
(China), Seoul (the Republic of Korea). According to
Ada Choi, head of Leasing Operations Research, Intelligence Data Management
at CBRE Asia Pacific, office tenants in the Asia-Pacific region will continue
to have an advantage for the remaining time of this year as 60 percent of the
year's new supply is expected to come into operation at this time. Thus, they
should renegotiate the lease or consider moving offices to selected locations
of better quality, while being able to ensure lease agreements have more
flexible terms, she said. For the
owners of office buildings, this is the time to prioritise ensuring occupancy
rates by offering attractive terms to attract good quality tenants, said Ada
Choi. The CBRE
forecast that rental fees in the Asia-Pacific region will stabilise in 2022,
in which the fees at shopping centres serving daily necessities will have a
stronger recovery. For the
Vietnamese market, although retail sales have recovered from the first
quarter of this year, most retail sectors, except for essential items,
experienced a decrease in sales growth in the second quarter when Vietnam
imposed a period of social distancing in many provinces and cities in both
the north and south, it said. Faced with
that situation, many retailers have turned to online sales channels. This
method is forecast to be the new retail business standard which is welcomed
by both shopping centres and retailers as Vietnam gradually overcomes the
pandemic. Notably,
CBRE experts predicted that rental prices will have a strong recovery in the
south. Regarding the northern region, although most investors and tenant
sentiment is quite positive, the large supply in the next two years will make
landlords likely to prefer a high occupancy rate rather than rent growth,
they said./. PM requires efforts towards removal of EC’s “yellow card” by
year’s end
Vietnam
must put an end to illegal, unreported and unregulated (IUU) fishing in a bid
to have the European Commission (EC)’s “yellow card” removed by the end of
2021, Prime Minister Pham Minh Chinh said at a virtual meeting on the issue
on September 7. Vietnam must
put an end to illegal, unreported and unregulated (IUU) fishing in a bid to
have the European Commission (EC)’s “yellow card” removed by the end of 2021,
Prime Minister Pham Minh Chinh said at a virtual meeting on the issue on
September 7. Eliminating
IUU fishing practice is not only for Vietnam’s interests but also for the
sake of the protection of the environment and regional and international
seafood resources, thereby affirming the country as a responsible member of
the international community, the Government leader said at the meeting
between the Government and relevant ministries and sectors, together with
coastal localities. Reports at
the meeting said the EC has spoken highly of the commitment, political
determination and efforts of Vietnam in the implementation of the solutions
and affirmed that progress has been made in the right
orientation. However, the
PM pointed out that after nearly four years of implementing the EC’s
recommendations, the work has yet to fulfil requirements, with many
limitations and problems in legal enforcement, while penalties imposed on IUU
fishing practices remain light. Ministries,
agencies and local authorities shared the view that fishery infrastructure
and the verification and certification of seafood origin have not met
requirements, while relevant agencies and coastal localities have
failed to make concerted and timely collaboration. Public awareness of law
compliance is low while communication work proved ineffective. The PM
agreed with suggestions and solutions made at the meeting and assigned tasks
to each ministry and sector, underscoring that relevant forces must take more
drastic actions to tackle IUU fishing./. Australia, Vietnam strive to finalise enhanced economic
cooperation strategy Officials of
Australia and Vietnam are working hard to be able to finalise the Enhanced
Economic Engagement Strategy, which aims to beef up the bilateral economic
ties, in late September, according to Australian Minister for Trade, Tourism
and Investment Dan Tehan. Talking to
international journalists during an online conference on September 6, Tehan
highlighted a bright prospect for economic-trade cooperation between the two
countries, saying that Australian and Vietnamese economies are complementary. The trade
bond between the two nations is constantly growing with many opportunities
opening up, he said. Australia
sees great prospects for cooperation with Vietnam in the fields of
traditional, renewable and clean energy, vocational education and training,
and import and export of agricultural products, he went on. People-to-people
diplomacy between Australia and Vietnam has been constantly expanded and
consolidated, significantly contributing to promoting their bilateral
relations, the minister noted. Australian
Prime Minister Scott Morrison is very interested in and looks forward to
seeing new developments in the Australia – Vietnam relationship, he added./. Vietnam, Austria eye cooperation in renewable energy development Vietnam
wishes to promote cooperation with Austria in the field of energy, especially
renewable energy and sustainable development, Minister of Industry and Trade
Nguyen Hong Dien told State Secretary in the Federal Ministry for Climate
Action, Environment, Energy, Mobility, Innovation and Technology Magnus
Brunner on September 7. Minister
Dien is accompanying Chairman of the National Assembly (NA) Vuong Dinh Hue to
attend the 5th World Conference of Speakers of Parliaments (WCSP5) in Vienna,
Austria. During a
working session with the Austrian official, Minister Dien highlighted the
fruitful and flourishing development of friendship and multifaceted
cooperation between Vietnam and Austria in recent years, especially in
political, economic and cultural fields, while affirming that the European
Union (EU) - Vietnam Free Trade Agreement (EVFTA) is an opportunity to
further expand economic cooperation between Vietnam and the EU in general,
and Austria in particular. He expected
that Brunner will support the ratification of the EU-Vietnam Investment
Protection Agreement (EVIPA) as soon as possible. The entry
into force of the EVIPA, together with the EVFTA, will create a great
competitive advantage for European businesses in general and those from
Austria in particular to invest in Vietnam, opening up opportunities to
increase trade between the two countries, Dien said. Austria will
become a bridge to help Vietnam make inroads into the EU market, while
Vietnam will help Austrian businesses access the ASEAN market with more than
650 million people, and a larger market with 800 million people when the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
with 11 members, including Vietnam, has come into effect. Energy is
one of Austria's important industries and a number of Austrian companies have
participated in hydropower projects in Vietnam, and they are looking forward
to joining solar power projects in the Southeast Asian nation. Vietnam is
interested in and wishes to receive Austria’s support and cooperation in
sharing experience, information, technology solutions and implementation
plans in electricity transmission, building a comprehensive strategy on human
resources development training for energy enterprises, Dien said. For his
part, Brunner agreed with Dien's proposal on cooperation contents, and
affirmed his support for accelerating the ratification of the EVIPA. Austria and
Vietnam have a lot of potential for cooperation in energy, especially in
electricity transmission, electricity storage and hydropower development, he
said. Dien took
the occasion to suggest Brunner, as a member of the cabinet, help lobby the
Austrian government to consider supplying COVID-19 vaccines and medical
supplies for Vietnam to help the country effectively respond to the
pandemic./. Eight-month credit in Hanoi rises 8.3 percent By the end
of August, the total outstanding credit of the banking system in
the capital city of Hanoi had reached 2.38 quadrillion VND (104 billion USD),
an increase of 1 percent over the previous month and 8.3 percent compared to the
same period last year. The
short-term loan balance hit 967 trillion VND while the medium and long-term
debt balance was 1.4 quadrillion VND. The lending
rates of loans in Vietnamese dong was 5.5-8 percent per year for short
time and 7.5-9.5 percent per year for medium and long terms. Due to
fluctuations in the issuance of valuable papers in Vietnamese dong, capital
mobilisation increased sharply in August, at 360 trillion VND, up 38.6
percent month-on-month and 40.3 percent compared to the beginning of the
year. The total
mobilised capital of credit institutions in the city was estimated at 4.09
quadrillion VND in the first eight months of the year, a hike of 3.6 percent
against the past month and 9.2 percent compared to the end of last
year. The interest
rates in Vietnamese dong averaged 3-4 percent per year for deposits for the
term from one month to less than 6 months, 3.8-6 percent per year for the
term from 6 months to 12 months, and 5-7 percent per year for the term from
12 months or more. Credit
institutions in the city are actively promoting the implementation of support
measures for customers facing difficulties due to the impact of
the COVID-19 pandemic. Many debts have seen payment deadlines
rescheduled, and interest rates waived or reduced. As a result, customers can
access more credit sources to maintain production and business activities./. Vietcombank, BIDV, Techcombank nominated for best financial
brands in Vietnam Three
Vietnamese banks, namely Vietcombank, BIDV, and Techcombank, were nominated
as the best financial brands in Vietnam by UK-based market research firm
YouGov on September 7. The Joint
Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) topped the
list with 26.6 points, followed by the Joint Stock Commercial Bank for
Investment and Development of Vietnam (BIDV) and the Vietnam Technological
and Commercial Joint Stock Bank (Techcombank) with respective points of 21.6
and 20.3. The rankings
was made based on more than 45,000 responses in a survey conducted from July
2020 to July 2021 for Vietnamese consumers. A number of
international banks are also listed in the rankings, including the Hong Kong
Shanghai Banking Corp (HSBC) and Citibank. Thue Quist
Thomasen, CEO at YouGov Vietnam, said this is the first time YouGov has
released a ranking of financial brands trusted and nominated by Vietnamese
consumers. YouGov’s
data showed that Vietnamese banks hold a very important position for
consumers nationwide, he noted. Building a
strong brand is one of the most important factors for achieving successes and
maintaining competitive advantages in financial companies in Vietnam, he
said. YouGov’s
data can give brands a detailed view of how consumers perceive their brands
and services, thus helping them optimize their marketing campaigns to gain
more market shares, Thomasen added./. UK reduces coffee imports from Vietnamese market The UK
increased coffee imports from the majority of its main suppliers, with the
exception of Vietnam and Honduras during the first half of the year,
according to the Ministry of Industry and Trade. The
Vietnamese share of the coffee market as part of total UK imports decreased
from 27.32% during the opening six months of last year to 16.35% this year. Furthermore,
the UK imported 16,400 tonnes of coffee worth US$29 million from the nation,
a drop of 48.4% in volume and a decline of 49.3% in value. Statistics
released by the International Trade Center indicate that the UK's coffee
imports in the first half of the year reached 100,300 tonnes worth US$424.62
million, representing a year-on-year fall of 13.8% in volume and a drop
of 10.9% in value. The fourth
wave of the COVID-19 pandemic has negatively impacted the country’s coffee
exports, while the local coffee industry has yet to met the stringent
requirements set in terms of the quality and consumption trends of British
people. At present,
the nation’s coffee exports are in the form of raw or semi-processed beans,
while the UK’s coffee consumption is mainly instant coffee, accounting for 41%
of the overall market share, a far higher figure compared to the average
figure of 17% in Europe. Moving
forward, the UK’s coffee imports are anticipated to bounce back over the long
term, especially following the signing of the UK-Vietnam FTA (UKVFTA) last
year which is likely to see Vietnamese agricultural products enjoy
competitive advantages in the UK market compared to similar products
originating from other countries. Last year,
the UK imported coffee products worth approximately US$1 billion from the
nation. However, experts have advised local businesses to meet stringent
requirements set by the demanding market by applying Global GAP standards in
production in order to gain access to the high-end market. Moreover,
businesses are recommended to pay close attention to products that suit
British consumer tastes, while also devising proper strategies aimed at
establishing long-term relationships with partners in the UK. Bamboo Airways licensed to fly directly to US from September 23 Local
carrier Bamboo Airways has been granted a license by the US Transportation
Security Administration (TSA) to operate 12 direct flights to the US from
September, according to its representative. Moving
forward, Bamboo Airways will conduct its first verified direct flight on
September 23, thereby paving the way for a series of activities to take place
in the US. This
includes the signing of a memorandum of understanding (MoU) with San
Francisco and Los Angeles International Airports, along with the debut of the
local airline's official representative office in the US. The carrier
is also anticipated to work alongside aircraft manufacturer Boeing and other
partners in the US market. Previously
in May, Bamboo Airways was officially designated to operate charter flights
to the US, with the airline being granted slots to operate regular direct
flights from Ho Chi Minh City to San Francisco and Los Angeles. The US is
widely considered to be the most demanding aviation market in the
world. Bamboo Airways has basically completed the most important steps
to put into operation regular commercial direct flights, which will connect
the nation with the US from the end of this year and early next year. Currently,
Bamboo Airways is co-operating with the International Aviation Association
(IATA) in order to put the IATA Travel Pass vaccine passport into practice on
a trial basis from the fourth quarter of the year. This will be part of the
plan to reopen the international flight network in the coming time. Digital health passport expected to bring tourism back from the
brink After the
national flag carrier, Vietnam Airlines piloted the IATA Travel Pass on a
flight from Hanoi to London on September 2, the Vietnam Tourism Advisory
Board has suggested Vietnam Green Travel Pass trial to resume activities of
production, business and tourism. The travel
pass is applied to those who have been fully vaccinated, recovered from the
disease or get negative test result for Covid-19. Singapore,
Thailand, Hong Kong (China), and Taiwan (China) are currently countries that
officially approve use of this travel pass for arriving passengers.
Vietnamese travel agents have also prepared scenarios for the new state. General
Director of Vietravel Tourist Company Tran Doan The Duy said that the company
is always ready to offer visitors various tours with attractive destinations
under safety measures. According to
Head of the Communications and Marketing Department of TST Tourist Company,
Nguyen Minh Man, 100 percent of the TST Company was fully vaccinated. On the
other hand, the enterprise have maintained its operation via the Internet and
prepared tourist products for the year-end period. Meanwhile
General Director of the DIC Tourism and Trading Joint Stock Company Pham Ba
Phuc hoped that the tourism industry will recover as quickly as possible with
the Vietnam Green Travel Pass. He also
noted that destinations that have been selected as a pilot places to welcome
visitors have to inoculate their entire population in bid to revive tourism,
such as Phu Quoc and Quang Ninh. According to
Chairwoman of the HCMC Tourism Association Nguyen Thi Khanh, Digital health passport
have been trialed by countries around the world. Vietnam should participate
in the experiment in accordance with the current situation. At first,
visitors who travel to domestic destinations have to get two doses of
Covid-19 vaccines while the tourist locations can control the pandemic. The tourism
sector is waiting for the the efficiency of COVID-19 prevention and control
and vaccination coverage, Mr. Tran Doan The Duy added. The Ministry
of Culture, Sport and Tourism will begin trialing the Vietnam Green Travel
Pass for tourists visiting Phu Quoc Island. It is expected to open a lot of
opportunities for the country’s tourism industry. Chairman of
the People’s Committee of Phu Quoc City Huynh Quang Hung said that the
tourism industry is expected to be recovered from the Covid-19 in the island
when the travel pass is approved. Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes |
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