VIETNAM BUSINESS NEWS OCTOBER 2516:30 Cashless payments surge in 9 months Cashless payments in Viet Nam have continued to record a high growth rate this year, according to a recent Government report. Specifically, online payments in the first nine months of this year reached 435.25 million transactions with a value of VND22.78 quadrillion, up 54.1 per cent in quantity and 30.7 per cent in value compared to the same period in 2020. During the period, more than 1.19 trillion transactions worth more than VND13.5 quadrillion were made via mobile phone, up 74.98 per cent in quantity and 93.69 per cent in value. According to the report, non-cash payments for public services in Viet Nam have witnessed strong changes with significantly improvements seen both in quantity and quality. Currently, more than 90 per cent of tax payment transactions of enterprises in centrally-run provinces and cities are made through banks while local people nationwide can pay electricity bills through banks. Some 42 per cent of medical facilities have implemented non-cash payments for medical services and 39 per cent of pensions, social insurance and unemployment benefits nationwide are paid through personal accounts. However, the report also noted in addition to the surge of non-cash payments, payment fraud also become more common across the country in recent years. Dao Minh Tuan, chairman of the Viet Nam Card Association, also admitted though banks have continuously updated new security technologies, fraud in payments is still increasing. To minimise fraud, commercial banks have to simultaneously issue many warnings to customers. Most recently, Viet Nam Prosperity Commercial Joint Stock Bank (VPBank) and Commercial Joint Stock Bank for Foreign Trade of Viet Nam (Vietcombank) have given warnings to users to not access links of forums or websites impersonating the bank. At the same time, customers should not provide account security information, digital banking or card details, or any other information to these websites. Representatives of banks said relevant parties need to enhance coordination to ensure payment security and safety. To further promote cashless payments in Viet Nam, experts said the most important thing is to change people's consumption habits through financial education programmes as a pillar in implementing a comprehensive financial development strategy. The Government also needs to complete the legal corridor for the digital economy and government, including digital finance. The Government also needs to develop an open banking system with stronger cooperation among commercial banks, Fintech and payment intermediaries. BRVT proposes MoT develop Bien Hoa-Vung Tau expy Ba Ria-Vung Tau Province has written to the Ministry of Transport proposing the ministry continue acting as an executing agency of the Bien Hoa-Vung Tau expressway project under the public-private-partnership (PPP) format. The Bien Hoa-Vung Tau expressway project has a length of some 54 kilometers, with 20 kilometers of it in Ba Ria-Vung Tau and the rest in Dong Nai Province, the local media reported. Earlier, the prime minister had authorized the ministry to develop the expressway project. In addition, the National Assembly and the Government allocated the capital from the medium-term public investment plan for the 2021-2025 period to the ministry to implement the project. The ministry also assigned the Project Management Board 85 to make pre-feasibility study for the first phase of the Bien Hoa-Vung Tau expressway project. This is the first expressway project to be implemented in Ba Ria-Vung Tau Province, according to the provincial government. The implementation of the project demands great technical skills, technology, designs, traffic arrangement and experience, so the Ministry of Transport, which has been in charge of several expressway projects nationwide, is well-qualified and experienced in implementing this project, said the provincial government. The Ba Ria-Vung Tau government committed to asking local authorities and relevant agencies to speed up site clearance and compensation processes to start work on the expressway project soon. Earlier on September 27, the Ministry of Transport sent a dispatch to the governments of Ba Ria-Vung Tau and Dong Nai seeking a consensus on the implementation of the project to propose the prime minister appoint one of them as an executing agency of the project. Van Don International Airport to reopen soon Van Don International Airport in the northern province of Quang Ninh will be reopened from October 27 after a long suspension due to the Covid-19 pandemic. From October 27, Bamboo Airways will resume flights on the Van Don-HCM City route with three fights every Monday, Wednesday and Saturday. Fights depart HCM City at 3:05 pm and arrive at Van Don at 6:10 pm. Vietjet Air plans to conduct daily return flights on HCM City-Van Don from October 31. Passengers from Tan Son Nhat International Airport in HCM City to Van Don are requested to have negative Covid-19 test results by the quick testing or RT-PCR methods. However, those from Van Don are required to either be fully vaccinated against Covid-19 with the second jab given at least 14 days before their flight; recovered from Covid-19 or tested negative for Covid-19 within 72 hours before departure. Airport Director Pham Ngoc Sau said that the airport had strictly conformed to Covid-19 protocols to ensure safety. “We’ll also co-operate with Quang Ninh Province in tourism promotion activities,” Sau added. HCM City: 85.7 percent of firms hit by COVID-19
A survey by the FALMI of 11,502 local companies shows that wholesale-retail and vehicle repair were the sectors hit the hardest by the pandemic, accounting for 36.74 percent of the affected; followed by manufacturing and processing, 16.42 percent. Meanwhile, information and telecommunications was the sector least impacted by the pandemic, making up just 3.69 percent, the FALMI reported. Some 42.7 percent of the respondents said they were struggling in seeking customers and distributing their products; 27.15 percent found it challenging to access funding; 18.23 percent believed the provision of support policies were not timely enough; and 11.92 percent said they faced shortage of input materials. The FALMI also reported that among more than 251,000 workers surveyed, 51.62 percent have been hurt by the pandemic. Of the affected, 48.18 percent said they had their working hours reduced; 32.21 percent lost jobs; 8.2 percent had their contract suspended; 7.45 percent took partly paid leave; and 3.96 percent took unpaid leave. Over 39 percent of asked enterprises said they plan to cut their head count during the final months of this year. The worst-ever COVID-19 resurgence forced HCM City to impose social distancing restrictions under Directive 16 in early July, causing local firms to suspend operation or scale down production, according to FALMI Deputy Director Phan Ky Quan Triet./. Vaccine passports could help resort real estate sector Accepting tourists with 'vaccine passports' is considered an important step in the strategy of living alongside COVID-19 and will help revive the tourism and resort real estate industry. Nguyen Quoc Anh, deputy general director of Batdongsan.com.vn, said that the real estate market was still facing many difficulties, so the first priority for the resort real estate market was the recovery of the tourism industry. Experts say that if the application of 'vaccine passports' in the tourism industry is successful, it will be a driving force for many other economic sectors because foreign-invested enterprises have the need to bring a large number of experts to work in Viet Nam. "The pilot 'vaccine passport' programme is a good policy at present," said Do Quy Duy, Hai Phat Real Estate Sales Director. During the pandemic, the demand of the resort real estate segment had been very low, especially coastal tourism real estate. Meanwhile, this market held great attraction for foreign investors, he said. Economic expert Dinh Trong Thinh said that 'vaccine passports' would provide great support for investment businesses. In order to take advantage of opportunities, businesses must prepare specific development strategies, and create tourism products meeting the needs of customers. General Secretary of Khanh Hoa Real Estate Brokers Association Phan Viet Hoang said that the 'vaccine passport' was the best solution for all tourism real estate. Marketing Director of Danh Khoi Group Ngo Van said large foreign investors expected to access the resort real estate market in Viet Nam. Their target was a real estate product line having high growth within 3-5 years. Therefore, the segment of resort and coastal tourism real estate would be an attractive segment for all customers and investors after the pandemic was controlled, he said. Viet Nam would be one of the best markets in Southeast Asia waiting for large foreign investors with big projects, Van said. In the fourth quarter, social distancing measures would be reduced, which would also provide favourable conditions to attract foreign investors to Viet Nam, creating a great push to the real estate market, especially resort real estate. For domestic investors, Van said, from the third quarter of 2021, disbursement in real estate projects had increased, especially since the Government strengthened vaccinations to control the pandemic. This would be the moment that investors pour capital to own resort real estate products with legality, good location and many distinct advantages. Following this trend, investment cash flow is gradually returning to resort real estate to catch great opportunities when the economy recovers. Customers will choose attractive investment products at reasonable prices, Vietnam News Agency reports. The pandemic is changing travel demand. Many tourists, especially families, want to go to private and safe resorts to relax in nature. That is an opportunity for owning or investing in the wellness resort real estate product line. However, Nguyen Van Dinh, vice chairman of the Viet Nam Real Estate Brokers Association, said the land fund for investors after the plan for Phu Quoc to be the first island city in Viet Nam is scarce, meaning lower investment opportunities. Because the land fund has been already allocated to businesses before this plan. Therefore, the investors need to seize investment opportunities in the resort real estate market. This segment is still considered a "promising land" for investors because it is expected to have a strong rebound after the pandemic is controlled. Vietcombank’s charter capital raise plan approved The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) will raise its charter capital to over 50.4 trillion VND (2.22 billion USD) under a plan recently approved by its board of directors. The plan was adopted at Vietcombank's annual general shareholders’ meeting in April. Accordingly, Vietcombank will issue more than 1 million shares to pay for last year’s dividends at a rate of 27.6 percent of 2019’s retained earnings. The State-owned bank will also issue additional individual shares, worth 6.5 percent of its total charter capital at the maximum at the time of offering, to investors and existing shareholders. The issuance of shares for dividend payouts will add over 10.23 trillion VND to the bank’s charter capital while more than 3 trillion VND is expected to be raised from issuing individual shares. Previously, the government had approved the State Bank of Vietnam’s proposal to provide an additional 7.65 trillion VND to maintain the State’s ownership ratio at Vietcombank, which now stands at 74.8 percent. Vietcombank sets to increase total assets by 5 percent, total outstanding loans by 10.5 percent, and consolidated pre-tax profit by 11 percent this year. The non-performing loan (NPL) ratio will be kept at under 1 percent and dividends will be paid at 8 percent./. Agricultural troubles hampering business recovery Some farmers and distributors remain hesitant to
restart operations meaning Vietnam could face food shortages in places, with
vaccinations and conditional free movement seen as salvation. Vietnam still wants agriculture to grow by 2.8 per cent in 2021, while maintaining an export turnover of $44 billion. In this context, the agricultural sector has no choice but to rely on livestock and fisheries – two fields that still have room to grow. However, the shortage of fully vaccinated workers and the current high transportation costs will likely hinder farmers from achieving high growth in the fourth quarter. The stagnant flow of goods and discouraged farmers were the issues the Ministry of Agriculture and Rural Development’s (MARD) Working Group 970 reported to the prime minister last month. According to the report, the agricultural production chain has suffered under the temporary closure of many seafood processing factories. In the south, which accounts for 65 per cent of Vietnam’s seafood exports, many companies have been pushed into the doldrums. The MARD estimates that the capacity of seafood processors in this region has decreased sharply by around 60-70 per cent. Meanwhile, Vietnam’s $10-billion pork market remains fragmented. In September, Masan MEATLife reviewed its restructuring plan with shareholders, resulting in a split of its animal feed business and allowing the company to transform its business platform to focus on branded meat. Meanwhile, Dabaco Vietnam’s goal of becoming a billion-dollar enterprise in the next five years moved further away as the firm’s profits of the third quarter decreased by 64 per cent compared to the same period in 2020. The market situation in the fourth quarter has not shown any signs of improvement so far, and the MARD has recorded a decrease in food consumption by 30-40 per cent. Industrial chicken consumption decreased by 70 per cent, while the selling price of pork and breeding pigs remained at a low level. The restrictive orders to control the pandemic in the south narrowed the output of pig farms in the southern province of Dong Nai throughout the third quarter, with many households selling their herds early to cut losses. This, however, affected the breeding process and slowed down efforts to restore herds. Another critical point to resolve is that pork imports continue to increase because Vietnam still has a supply-demand deficit, despite the large scale of domestic pig production which almost recovered to pre-African swine fever levels. But despite this, in the first nine months of 2021, Vietnam imported 125,600 tonnes of pork, mainly from Russia, Germany, and Poland, according to the MARD. Ensuring food security remains a big challenge for Vietnam, despite being one of the world’s leading countries in exporting agricultural products. The seafood industry is also in trouble – Nam Mien Trung, one of the largest shrimp companies in Vietnam, is restricting personnel movement between its seven production zones in Bac Lieu, Long An, Ninh Thuan provinces and a representative office in Ho Chi Minh City due to quarantine regulations. “Hindering people’s movements between provinces, despite the fact that they have had two injections, is making vaccinations no longer meaningful,” said general director Nguyen Hoang Anh. In the south, many businesses are preparing to enter the peak production season to serve the upcoming Lunar New Year celebrations, but remain worried about broken supply chains. Nguyen Hoai Nam, deputy secretary general of the Vietnam Association of Seafood Exporters and Producers (VASEP) said, the shortage of workers is increasingly serious, especially in large-scale enterprises. Many businesses do not have enough goods to deliver according to their orders because there are not enough workers to buy raw materials and maintain production. Currently, production cost per unit is large as many firms currently operating have had to invest in the stay-at-work model, general pandemic prevention, and continued wage payments for currently laid off employees, Nam added. The application of the prime minister’s Directive No.16/CT-TTg from last year on fighting COVID-19 in the southern provinces and cities led to congestion in the circulation of rice and other field goods from factories to the export ports. The MARD’s Department of Crop Production (DCP) estimates that the summer-autumn rice procurement volume will decrease by up to 30 per cent compared to the same period in 2020. Moreover, the amount of goods stuck in stock also greatly affects operations while transport difficulties slow down exports. For instance, rice inventories of the Northern Food Corporation amounted to 118,000 tonnes, as of the end of August. The MARD has asked the government to allow the purchase and temporary storage of summer-autumn rice so that farmers can rest assured to produce the autumn-winter crop. According to the DCP, the total sowing area for the summer-autumn crop in 2021 in the entire southern region was 1.6 billion hectares. Output is estimated at 9,03 billion tonnes, up by 120,000 tonnes over the summer-autumn crop of 2020. In autumn-winter of 2021 in the Mekong Delta, 700,000ha was sown, expected to supply about 3.8 million tonnes. Sapa Airport needs to mobilise $174 million from private investors Deputy Prime Minister Le Van Thanh has issued a
decision about the implementation of Sapa Airport under the private-public
partnership (PPP) format. The construction is expected to be divided into two phases. The first phase’s construction is planned to implement this year, which has an investment capital of VND4.2 trillion ($182.6 million) with the capacity of 1.5 million passengers per year. The second phase is planned to be developed in 2028 with a capacity of three million passengers. Land acquisition, including land clearance and compensation, will be funded from the public component while construction will be covered from the funds contributed by private companies. Sapa Airport is one of six new airports approved for construction by 2030. The Ministry of Planning and Investment is assigned to co-operate with the Ministry of Finance and the relevant authorities to arrange the state budget in 2021-2025 to develop the project. Vietnam has 22 airports at present. In the first six months, Lao Cai welcomed 1.1 million passengers, up 21 per cent on-year, according to the Ministry of Culture, Sports and Tourism. Market opens new week on positive note backed by manufacturing stocks On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index rose 5.44 points, or 0.39 per cent, to 1,394.68 points. The market breadth was positive, with 237 stocks increasing while 196 stocks declined. The liquidity was also high as investors poured VND15.3 trillion (US$673.2 million) into HoSE. The index's gain was driven by large-cap stocks, mostly in manufacturing and real estate sectors. However, the VN30-Index, which tracks 30 biggest stocks on the southern bourse, fell 2.4 points, or 0.16 per cent, to 1,486.31 points. Of the VN30 basket, 14 stocks rose, while 15 slid and one ended flat. Vietnam Rubber Group (GVR) led the index's support group, with a rise of 4.05 per cent. It was followed by Vinhomes (VHM) and Bao Viet Holdings (BVH), with BVH hitting the biggest daily gain of 7 per cent. But as selling pressure persisted, the market is likely to face a downward trend in the afternoon session if it can't gather enough support. On Ha Noi Stock Exchange (HoSE), the HNX-Index also climbed 5.05 points, or 1.29 per cent, to 396.26 points. Vaccination pace, bailout packages help aid economic recovery The Vietnamese economy is showing signs of recovery
from the prolonged COVID-19 outbreak, but how quickly it picks up heavily
depends on the pace of vaccination, the effectiveness of pandemic prevention
measures, and the government’s bailout packages. The event was co-hosted by the Vietnam Institute for Economic and Policy Research (VEPR) under VNU University of Economics and Business (UEB) and Konrad-Adenauer Stiftung (KAS) via an online platform. COVID-19 deals heavy blow to economic performance According to the General Statistics Office (GSO), the national economy suffered a contraction of 6.17% in the third quarter of the year, a record low figure since the announcement of Vietnam’s quarterly GDP so far. This plunge mirrors the adverse impact of drastic social distancing measures introduced by the Government in order to contain the fourth COVID-19 outbreak. The downward trajectory can be seen in many economic sectors such as services, transportation, wholesale and retail, and construction, except for the agro-forestry-fishery sector. Overall, the Vietnamese economy during the nine-month period grew by merely 1.42% year on year as the prolonged COVID-19 outbreak severely disrupted supply chains, affecting production and export activities across the country, especially in southern coronavirus hotspots. In addition, the country’s Manufacturing Purchasing Managers' Index (PMI) has continued to experience a downward trend since the second quarter of the year, dropping from 45.1 points in July to 40.2 points in September. This low PMI level indicates deterioration in business outlook within the manufacturing sector. Notably, for the first time since 2010, the number of enterprises that have either temporarily been suspended or dissolved exceeds the number of newly-established enterprises. Local businesses continued to face higher risks of financial distress, as apart from increased production input costs, those in the southern key economic region are enduring additional costs from COVID-19 testing for their employees for instance. FDI inflows and exports see positive signs Despite the poor economic performance, FDI attraction remains a bright spot in the overall gloomy picture. Total new and additional registered capital into Vietnam in the third quarter surged by 50% and 67% to US$2.95 billion and US$2.3 billion, respectively, prompting the nine-month FDI capital to hit US$22.15 billion, a year on year increase of 4.4%. Singapore topped the list of 62 foreign investors in Vietnam, pouring US$4.98 billion into investment projects, followed by Japan with US$2.4 billion, China’s Hong Kong with US$1.49 billion, and the Republic of Korea with US$767.7 million. Meanwhile, exports continue to make a practical contribution to economic growth. Statistics show the opening nine months of the year saw Vietnam rake in US$158.34 billion from exports, rising 29% year on year. Worthy of note is that US$116.74 billion was generated by the FDI sector, including crude oil exports, up 33% year on year. Apparently, the FDI sector is taking advantage of bilateral and multilateral free trade agreements (FTA) Vietnam has signed with partners to increase exports. The United States was Vietnam’s largest goods consumer, spending US$45.58 billion on imports, a year-on-year rise of 4.7%. It was followed by China (US$24.9 billion, up 8%), the European Union (US$19.3 billion, up 28.2%), the Republic of Korea (US$10.32 billion, up 13.3%) and Japan (US$10.6 billion, up 8.2%). However, the nine-month trade balance saw a trade deficit of US$993 million compared to a trade surplus of US$1.85 billion recorded in the corresponding period last year. Businesses have resumed production since travel restrictions were eased in early October, and therefore they need materials for production that fuels imports. Recommendations for economic recovery According to experts, economic outlook in the remaining months of the year heavily depends on the pace and scale of vaccination, the effectiveness of pandemic prevention measures, and bailout packages the Government has introduced to cushion the impact of the COVID-19 outbreak and support businesses in production. Amid the complicated nature of the COVID-19 pandemic, experts underlined the necessity to devise an overall and consistent strategy to deal with different pandemic scenarios, resolve inadequacies regarding cross-contamination in isolation areas, medical declaration, disruption in goods circulation, and a lack of medical equipment. They also recommended that the Government and relevant ministries urgently deploy support packages for unemployed workers, especially those in the non-official sector. In addition, fiscal policies should focus on accelerating disbursement of major national infrastructure projects, while monetary and markets tools should be governed in an appropriate and moderate manner to control inflationary pressure that normally builds up by year’s end. DHL eCommerce stops operation in Vietnam DHL eCommerce, a division of the world’s leading
logistics company Deutsche Post DHL Group, has announced stopping nationwide
domestic delivery operations in Vietnam. All DHL eCommerce Solutions customers will continue to be served during the notice period of their contracts until the end of November 2021. The company currently has 250 service points across the country. All relevant employees have been informed of the situation and the company will make every effort to assist them in their transition. Other divisions such as DHL Express, DHL Global Forwarding, and DHL Supply Chain will continue to operate in Vietnam. In July 2017, the company launched a nationwide network of ServicePoints to capitalise on the huge and relatively untapped potential of the local e-commerce market. It expected to benefit from the Vietnamese e-commerce market, which was forecast to grow at a compound annual growth rate of 32 per cent in 2018-2022 by Euromonitor. High-tech laws not fit for purpose The currently effective high-tech laws and regulations
are dated back to the Law on High Technologies adopted by the National
Assembly in 2008. During this period, Vietnam has adopted and implemented the
Law on Investment 2014 and the 2020 version. Concurrently, during this period
Vietnam has ratified two significant international treaties and multiple
other free trade agreements with its trading country partners. The world has based its tremendous growth on innovations and technologies, and Vietnam is not beyond this trend. For the country to grow at a similar rate with the region and the wider world, the economy must gradually switch to high-end production, services, and technologies. For the past two years, the world has had to endure unexpected challenges that almost saw the entire global economy come to a grinding halt – with the exception of the technology sector. It seems that we are near the end of the tunnel and we see some light. It is time for Vietnam to resume its operations and prioritise what is most promising to help Vietnam regain some strength. It has to be innovative and tech-led, and the government should see its role in shaping and nurturing this direction. On this note, the prime minister has issued several decisions over the past few years, on high-tech agricultural enterprises, on high-tech products development, and on regulating criteria of related enterprises. These are part of ongoing efforts from the government to consider and evaluate which enterprises should be offered tech-based incentives. However, in practice, few enterprises see these incentives as meaningful rewards – or they cannot access them easily. Currently, only a few groups may be eligible for related incentives: high-tech enterprises; agricultural groups applying high technologies; and both sci-tech enterprises and organisations. To enjoy these incentives, first and foremost they must apply for and obtain a certificate relevant to each business vehicle (for example, a Certificate of High-tech Enterprise, Certificate of High-tech Agricultural Enterprise, and Certificate of Sci-Tech Enterprise). In order to apply for any of them, the enterprise will have to meet several conditions. First, the enterprise must manufacture high-tech products or apply high technologies that are named in a government list (such as precision agriculture, new processing tech, or agricultural preservation products); revenues from high-tech products must account for 30-70 per cent of the annual net revenues; total research and development expenses account for at least 0.5-2 per cent of annual net revenues; and the enterprise must have a certain number of employees with relevant qualifications. Having met these stringent requirements, the enterprise will receive its relevant certificate and be entitled to enjoy a corporate income tax (CIT) preferential rate of 10 per cent for 15 years (the normal rate is 20 per cent); a CIT exemption for four years and 50 per cent CIT reduction for nine subsequent years; and exemption of import duty for selected fixed assets and 5-year exemption of import duty for materials not yet produced domestically. Some projects may be entitled to land rental incentives subject to further conditions, as well as state funding and loans depending on the industry. Vietnam’s intention to encourage high technologies has existed early on, but while the economy and actual development conditions have changed drastically over the last three decades, the regulations remain the same. The decisions to adjust the list of enterprises eligible for related incentives are welcomed, but are not that significant. The incentives have remained static over the years, and the criteria for selecting and incentivising related enterprises also remain the same. Maybe it is time to revamp these regulations to make the incentives stronger and easier to access by all enterprises. Only then can high-tech enterprises become a real driver for economic growth. Shares to continue fluctuating around 1,380-1,400 with sharper divergence in large-cap group Analysts from securities companies forecast that the VN-Index will continue to fluctuate in the accumulation area from 1,380-1,400 this week, accompanied by an uptrend and a sharper divergence in the large-cap group. The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) gained 0.32 per cent, to finish Friday at 1,389.24 points. It recorded a weekly loss of 0.25 per cent last week. An average of 757 million shares was traded on the southern exchange during each session last week, worth VND22 trillion (US$968 million). According to Vietcombank Securities Limited Company (VCBS), VN-Index mainly traded in a narrow range last week. Strong profit-taking pressure around 1,400 points made the VN-Index move sideways around 1,390 points in the first three days of the week without recording any significant increase or decrease. Although short-term profit-taking pressure once again returned in the second half of the session on Thursday, the index was still not pushed back below 1,380 points. On Friday it once again returned to struggling trend around 1,390 points. However, the index recorded the second week in a row ending above 1,370 points, showing that investors are being quite optimistic about the current market, VCBS said. Cash flow still seemed to be avoiding large-cap stocks, which have recorded outstanding gains compared to the general index in the first half of this year, it said. VCBS expects that VN-Index will fluctuate and accumulate in the range of 1,380-1,400 points in the next few weeks, accompanied by an uptrend and a sharper divergence in the large-cap group. Investors can look for short-term profit opportunities in the real estate and securities groups. Meanwhile, long-term investors can still take advantage of this "volatile" period to accumulate more target stocks, but should limit margin trading, it said. According to Saigon-Hanoi Securities Co (SHS), the market adjusted slightly last week with the VN-Index continuously struggling around the psychological threshold of 1,400 points. “The liquidity increased slightly and continued to be higher than the recent 20-week average, showing that selling pressure around 1,400 points was relatively strong, causing the market to retreat shortly after,” it said. Foreign investors also had a strong net selling week with more than VND3.5 trillion on the two exchanges, causing correcting pressure on the market. However, with the VN-Index ending above the support area of 1,375-1,380 points, it is likely that VN-Index will continue towards the psychological level of 1,400 points in this week. In the negative scenario, if the selling pressure increases, the VN-Index is likely to need to retest the nearest support zone in the range of 1,375-1,380 points, it said. Banking stocks dropped the most last week with losers such as Vietinbank (CTG) falling 3.3 per cent, Vietcombank (VCB) declining 2.3 per cent, Asia Commercial Bank (ACB) dropping 1.9 per cent, Military Bank (MBB) losing 1.8 per cent, VPBank (VPB) down 0.8 per cent, Techcombank (TCB) falling 0.6 per cent and Bank for Investment and Development of Vietnam (BID) decreasing 0.5 per cent. Quang Ninh to resume commercial flights with Ho Chi Minh City from October 27 Flights between Van Don in the northern province of Quang Ninh and Ho Chi Minh City will be resumed on October 27 after interruption due to the COVID-19 pandemic. Specifically, from October 27, there will be three flights a week on the route operated by Bamboo Airways, on Mondays, Wednesdays, and Saturdays. The flights will take off at 3.5pm from HCM City and 6.10pm from Van Don. Vietjet Air will also restart the operation of flights between the two destinations with the frequency of one flight a day from October 31. Flights will take off at 3.50pm from HCM City and 6.45pm from Van Don. To meet the pandemic prevention and control regulations, passengers departing from Tan Son Nhat airport in HCM City are required to have a negative test result for SARS-CoV-2 by RT-PCR method or quick antigen test with validity no more than 72 hours from departure time. Meanwhile, passengers travelling from Van Don need to meet one of the three conditions, either having been fully vaccinated for over 14 days, or having recovered from COVID-19 within the previous six months or testing negative for COVID-19 within 72 hours before departure. The resumption of the commercial flights on Van Don – HCM City is to meet travel needs between the above-mentioned localities in the context that the Government allows the reopening of regular domestic air routes to ensure safe, flexible adaption to and effective control of COVID-19./. Coastal localities take stronger measures against IUU fishing Numerous stronger measures have been implemented by 28 coastal provinces and cities nationwide in the past four years in a bid to prevent and combat illegal, unreported and unregulated (IUU) fishing, towards developing a sustainable fishery sector, having the European Commission (EC)’s “yellow card” lifted and promoting Vietnam’s seafood exports. Since the EC imposed the “yellow card” on the Vietnamese fishery sector, the Mekong Delta province of Soc Trang has set up and completed a provincial steering committee and inspection groups based at fishing ports to popularise IUU prevention regulations to fishermen. The province has regularly organised inspections and examinations on legal documents, necessary equipment of fishing vessels before allowing them to go offshore and dock at Tran De fishing port. Like Soc Trang, Bac Lieu, Tra Vinh and Ca Mau provinces have also rolled out measures to enhance local fishermen’s awareness of sustainable offshore fishing. Nguyen Viet Trieu, Vice Director of the Fishery Sub-Department of Ca Mau province, said that in order to minimise IUU fishing activities, the provincial Department of Agriculture and Rural Development has given advice to the provincial People’s Committee on preventive measures and coordinated with relevant agencies to build and implement synchronic solutions such as closely supervising and monitoring fishing vessels committing violations in foreign waters. Ca Mau's authorities have refused to issue new fishing licences to vessels repeating their violations and not allowed their captains and owners to enjoy fishery support policies from the State, he said. Meanwhile, drastic measures have been also carried out to fight IUU fishing activities in other coastal provinces and cities. Currently, many localities have shown strong performance in the work, including Binh Thuan, Ninh Thuan, Kien Giang and Bac Lieu provinces. In reality, active and prompt efforts to remove the EC “yellow card” on the Vietnamese fishery sector also aim to protect the lives of fishermen at sea./. Black tiger shrimp exports to Spain enjoy robust growth Vietnamese black tiger shrimp exports to the Spanish market witnessed vigorous growth during the past nine months, according to figures released by the Vietnam Association of Seafood Exporters and Producers (VASEP). Most notably, black tiger shrimp exports to Spain in September alone saw a four-fold increase against the same period from last year, thereby causing the nine-month exports of the product to the demanding market to witness a 2.5 fold rise on-year. Currently, the nation mainly exports fresh and frozen black tiger shrimp to the European country, with the average price export price in the market hovering at approximately US$11 per kilo. Furthermore, white-leg shrimp exports to Spain skyrocketed by an annual sum of 54% to hit roughly US$2.9 million during the reviewed period. Moreover, clam exports to the Spanish market also saw an increase of 38% to reach US$18 million, with this product being the leading Vietnamese seafood export item to Spain and accounting for 34% of the total export value to this market. Local seafood exports to Spain during nine-month period rose by 15.4% to reach US$52.3 million compared to the same period from last year. At present, the European nation ranks 22nd among Vietnamese seafood importers, accounting for 1% of total export turnover in the reviewed period. Moving forward, seafood exports to Spain are projected to represent bright spots in the Vietnamese aquatic sector due to the increasing demand on occasions such as Christmas and New Year. The VASEP therefore forecasts that seafood exports to Spain ahead in the fourth quarter of the year will expand by 13% to about US$21 million, bringing the export turnover this year to US$73 million, an increase of 15% compared to 2020. Airbus Group has new general director in Vietnam The Airbus Group has appointed Hoang Tri Mai as its new General Director in Vietnam, a representative of the group announced on October 25. In this role, Mai will be in charge of overseeing all operations of Airbus in Vietnam, including supporting business activities and managing relationships of the firm with the Vietnamese Government, and related organizations and industry partners. Before joining Airbus Group, Mai held the position of Country Director of Rolls Royce in Vietnam, Laos, Cambodia and the Philippines. She was born in Hanoi, graduated with a degree in business economics from the UK’s University of Reading, and used to work for Asia Commercial Joint Stock Bank (ACB). Anand Stanley, President of Airbus Asia-Pacific said Vietnam is a key market of Airbus across all business sectors, adding that Airbus also has important industry partnerships in the Southeast Asian nation. Airbus hopes its new general director will further promote Airbus' strong presence in Vietnam and work closely with its customers, partners and related entities, he said. According to Airbus, Mai will work at the Airbus office in Hanoi, replacing Jean-Michel Caldagues, who will retire at the end of 2021 after 21 years working for Airbus./. Material suppliers sense profits in public investment endeavours Construction companies are looking into new efficient
methods to overcome this years’ woes, with disbursement acceleration of
public investment a top focus. Petrolimex Petrochemical Corporation JSC, which currently accounts for about 30 per cent of the asphalt market share, is expected to reap some benefits thanks to public investment projects such as the North-South Expressway, upgrades at Noi Bai and Tan Son Nhat international airports, and La Son-Tuy Loan Expressway. “The asphalt segment could be the company’s main growth driver this year as it is benefiting from the upcoming public investment projects,” noted the report. Nguyen Hoang Ngan, general director of Binh Minh Plastic JSC, stressed that the benefits of building material manufacturers “depend on mostly actual disbursement, not the plans.” Nguyen Quang Cung, chairman of the Vietnam Cement Association (VCA) said, “Around 104-107 million tonnes of cement would need to be consumed this year.” Finance director Colin Terry of INSEE Vietnam told VIR, “Our long-term strategies remains largely unchanged as we foresee the market progress backed by vaccine rollouts. We continue to ensure that we have diversified sources of key material and equipment supplies, as well as stay flexible in our operating model to be ready to support our customers as opportunities and volumes scale up again.” As one of the largest cement companies in Vietnam, INSEE can fall back onto large capital and tech, and its products have been used in iconic buildings and infrastructure projects across the south of the country. Cung of the VCA warned, “Public investment will partly increase the demand for cement in the future, but the cement market here remains risky amid export tax, oversupply, and increased prices of raw materials.” According to the Ministry of Construction (MoC), construction materials account for 60 per cent of investment costs for most projects. Specifically, in highway projects, the cost of asphalt accounts for 35 per cent, steel for 30 per cent, and cement for 15 per cent. Businesses operating in this sector will benefit from the government’s push for public investment. Meanwhile, the prospects of the steel industry have helped Hoa Phat Group continue to maintain its leading position in the industry. According to the company, this year will see the construction of the $3.7 billion Dung Quat 2 Complex. The domestic steelmaker aims to produce eight million tonnes of crude steel to continue to lead the national market share in construction steel and pipes in 2021. A representative of Hoa Phat Group also shared examples of public investment projects across the country that used the the group’s steel for construction, such as Vinh Tuy Bridge in Hanoi, the North-South Expressway, and My Thuan 2 Bridge, among others. “For the North-South Expressway, Hoa Phat’s steel has been supplied in a series of bidding packages. In June, the construction contractor for My Thuan 2 Bridge ordered steel that was then delivered in July and August. According to our evaluation, there are very few competitors in Vietnam capable of producing and supplying such high-quality steel,” the representative claimed. Minister of Construction Nguyen Thanh Nghi said that the industry is accelerating the disbursement progress of public investment, in which investors commit to the progress according to the monthly schedules. The ministry aims to complete its entire capital plan this year. Reference exchange rate down 6 VND at week’s beginning The State Bank of Vietnam set the daily reference exchange rate at 23,136 VND/USD on October 25, down 6 VND from the last working day of previous week (October 22). With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,830 VND/USD and the floor rate 22,441 VND/USD. The opening-hour rates at commercial banks stayed stable. At 8:25 am, Vietcombank listed the buying rate at 22,625 VND/USD and the selling rate at 22,855 VND/USD, unchanged from October 22. BIDV also kept both rates unchanged at 22,655 VND/USD (buying) and 22,855 VND/USD (selling)./. VIB’s profit increases 32 per cent in Jan-Sep The Vietnam International Bank (VIB) posted a growth rate of 32 per cent in both total operating income and pre-tax profit in January-September at VND10.3 trillion (US$442 million) and VND5.3 trillion ($228 million) respectively, following its business results announced on Friday. During the period, the bank maintained its leading position in the industry in terms of operational efficiency with return on equity (ROE) reaching over 29 per cent, the main driving force came from the retail segment and digital channels. As of September 30, VIB’s total assets hit over VND285 trillion, surging 16 per cent compared to the beginning of the year. Of which, outstanding credit balance reached VND190 trillion, up 11 per cent, deposits from customers topped more than VND170 trillion, up 13 per cent while current account and saving account (CASA) saw impressive growth of nearly 20 per cent. Over the nine months, VIB's retail segment continuously contributes over 85 per cent of the bank's loan portfolio, maintaining its position as the bank with the best retail ratio on the market. As per the business results, the bank's capital adequacy ratio (CAR) under Basel II was managed optimally at 10.6 per cent, the loan-to-deposit ratio (LDR) was 73 per cent. Operating expenses in the third quarter were comparable to the second quarter of 2021, with the cost-to-income ratio (CIR) maintained at 39 per cent. In the third quarter of 2021, VIB actively supported its customers to overcome the impact of the pandemic with various policies such as reducing loan interest rates, reducing transaction fees and supporting loan structure. Besides the direct interest and fee reduction packages, VIB continued to support the interest payment structure in the following quarters to help stabilise the actual cash flow of each customer. Although this temporarily affected the Q3 business results, VIB said that this was a reasonable and timely policy that showed its commitment to support valued customers over the years. VIB’s proactive and well-timed support helped its customers adapt to the ‘new normal’ situation. The majority of the supported and structured customers had a repayment plan earlier than the support plan, so it was expected to have a very positive impact on the bank's Q4 business results. Pioneering in applying IFRS to increase shareholder value, attract foreign investors On 30 June 2021, VIB became one of the first two banks in Viet Nam to complete the audit report following the International Financial Reporting Standards (IFRS) for 2020. According to 2020 audited IFRS financial statement results, VIB's equity was assessed to increase by more than VND1 trillion compared to VAS standards application. By pioneering in applying international standards Basel II, Basel III, IFRS, VIB is highly appreciated by domestic, foreign investors, and financial institutions for its transparency. They also express their interest in the bank's issuance, capital, bonds, and capital mobilisation activities. Breakthrough in speed, leading in product and service quality through extensive digitalisation As one of the leading digital banks and the digital customer experience in Viet Nam over the years, VIB has focused on applying high technology such as Big Data, AI and cloud computing into its transactions, bringing outstanding digital customer service to users. Users can easily open payment and saving accounts, transfer money, spending management and other banking services with a few clicks on our app. Especially, VIB is the pioneering bank in applying 100 per cent digital card opening process for all credit cards available on VIB website. September 2021 marked an important milestone in VIB's digital transformation journey. The bank teamed up with Microsoft through a strategic collaboration agreement to deploy the multi-cloud computing platform and became one of the first banks in Viet Nam to develop a multi-cloud strategy. This was a crucial stage in applying outstanding technology from the world's leading technology partner into financial products and services and to improve the Vietnamese customer experience for the banking industry and for VIB as well. Vietnam Report announces top 10 prestigious retailers in 2021 The Vietnam Report JSC has announced a list of top 10 prestigious retailers in 2021. Honourees in fast consumption and supermarket group include Central Retail Vietnam, Wincommerce, Saigon Coop, MM Mega Market, Aeon Vietnam, Lotte Vietnam, SATRA, SASCO, IPP Group and Hapro. In electronics and jewelries, the list comprises MWG, DOJI, PNJ, FPT Retail, Saigon SJC, Cao Phong Co. Ltd, Mediamart Vietnam, Viettelimex, Fahasa and VHC. The rankings are based on three criteria, including financial capability based on the latest financial reports, media prestige using media coding method, and results of surveys in August and September 2021. General Director of Vietnam Report JSC Vu Dang Vinh said despite the COVID-19 pandemic, retail sector still expanded in early 2021. According to General Statistics Office, retail revenue in nine months of this year was estimated at over 2.7 trillion VND (117.3 million USD), down 3.4 percent annually. In August alone, it went down 8 percent month-on-month and 25.3 percent year-on-year, but went up nearly 4.5 percent in September thanks to relaxed social distancing in many localities./. Firms face challenges as only 70% of workers return to work amid COVID-19 The impact of the COVID-19 pandemic, especially the
fourth wave of the outbreak, as led to 1.3 million workers departing urban
areas and moving to rural areas, from major economic hubs to provinces, in
which over 600,000 migrant workers have returned home from various southern
provinces. The risk of a labour shortage in some regions, sectors, and fields is posing a problem for businesses as they strive to restore production and business activities. According to figures given by the MoLISA, approximately 17.8% of enterprises face a labour shortage, with those involved in electronics at 55.6%, leather and footwear at 51.7%, garments at 49.2%, electrical equipment manufacturing at 44.5%, and textiles at 39.5%. According to details given by Do Thi Thuy Huong, vice president of the Vietnam Supporting Industry Association, the nation is attracting many large enterprises in the electronics industry globally, with six of the biggest electronics firms having a presence within the country. However, similar to other industrial enterprises, the electronics industry is facing up to the prospect of a labour shortage. "More than 30% of local businesses are facing the labor shortage. This shows that the COVID-19 pandemic, especially the fourth pandemic wave, has greatly affected production activities of the electronics industry, particularly in 19 southern localities. According to a report provided by enterprises in southern Vietnam, about 60 to 70% of workers have returned to production and they are seriously short of workers as they had returned to their hometowns and have not yet come back. Even the largest Samsung company in the high-tech zone in District 9, Ho Chi Minh City less than 70% of their workers have resumed work and the figure is expected to hit 100% by November, but for the time being, Samsung is also in a difficult position due to labor shortage,” Huong said. Nguyen Van Be, chairman of the Association of Industrial Park Enterprises in Ho Chi Minh City, said the COVID-19 pandemic has caused 800 factories in various industrial parks to close. As a result of this, 700 factories run by most FDI enterprises have performed three on-site operations in a bid to avoid disruption in production, thereby resulting in their places being lost in the global supply chain. Currently, businesses in Ho Chi Minh City have started to restore production, with numerous business in need of recruiting approximately 9,000 workers across various industries. Enterprises operating in the processing and manufacturing industries have a significant need to recruit workers in order to meet orders ahead during the remaining months of the year. In a bid to restore the broken labour chain, Nguyen Van Be put forward the suggestion that there should be proper policies enforced aimed at bringing workers back to work as soon as possible. Ho Chi Minh City features 18 export processing zones, industrial parks and high-tech zones, with more than 320,000 employees and 1,500 factories. At present 91% of businesses across 18 zones have since resumed operations in the new normal, which means living with the pandemic, while 70% or 200,000 employees have now returned to work. Furthermore, an additional 100,000 are still in neighbouring or remote provinces. This comes amid all workers returning to Ho Chi Minh City being fully vaccinated and required to adapt themselves to new technology and digital transformation. However, plenty of businesses are facing financial difficulty and thereby require the support of the State. It is therefore necessary to restore the labour market once the pandemic is fully brought under control, believes Vu Xuan Hung, director of the Training Department of the General Department of Vocational Education and Training under the MoLISA. He stated that to help enterprises gain access to labour resources in a timely manner, the General Department of Vocational Education and Training has devised plans to support firms in ensuring human resources. “Currently, we have come up with two options to mobilise students’ participation in production and business activities of enterprises if there is a need. It also helps enhance the connection between schools and businesses, while creating conditions for students to become involved in production and business activities,” said Hung. According to numerous experts, managers, and businesses, encouraging workers to return is a matter of policy. In order for enterprises to resume production, there should be a range of policies implemented specifically for migrant workers, social security, health care, pandemic prevention measures, adaptation, training, and retraining of human resources. Singapore firms share experience with VN in sustainable energy development Vietnamese energy companies need to revise their strategies to adapt to changes in the global energy structure as well as to post-pandemic conditions, experts have said. Speaking at the Viet Nam - Singapore Board Forum held online last week, Associate Professor Vu Minh Khuong of the National University of Singapore said, “The global energy trend will focus on sustainable and renewable energy, the use new technologies in photovoltaic solar power, digital transformation, and creating hybrid systems by mixing floating solar energy and hydroelectricity.” The energy structure would change in the next 10 years due to the impact of the pandemic as well as policy adjustments by many countries to achieve sustainability after the pandemic, he said. According to speakers, the fourth wave of the pandemic in the country has severely hit all industries, including energy, and requires businesses to quickly adapt to the situation. Khuong said Viet Nam’s energy sector should have appropriate strategies for sustainability and green transition to deepen global integration, and digital transformation. They could learn from Singapore's experience in energy development and how its businesses navigated the pandemic, he added. Singapore ranks high in the COVID-19 recovery index To do so, Douglas Foo, chairman of the Federation of Singapore Manufacturing, said businesses have adjusted to adapt to the new reality, regularly evaluating and revising crisis management plans to prepare for various risk scenarios, and looking at how to mitigate the impacts of potential sales declines and poor forecasts in the new normal. They have taken digital transformation strategy as the backbone to break through, and diversified their supply chains by taking advantage of new generation trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, he added. Wong Kim Yin, group president & CEO of Sembcorp Industries, who has over 20 years of leadership experience in energy and investment management, said his company has turned its portfolio “from brown to green" and transformed many aspects such as administration, capital sources, human resources, partners, and stakeholders. “We hope to be able to join hands with Viet Nam to accelerate energy transition through improving the efficiency of the power system, co-operation in renewable energy and technology and capacity transfer.” Sembcorp's experiences are expected to be useful to Viet Nam's energy sector in the future, he added. Fadah Alsagoff, management team member and head of enterprise development at Temasek Holdings, said his company’s top priority is to protect the community from the pandemic. Temasek is increasingly shaping its portfolio in line with four structural trends, “digitisation, sustainable living, future of consumption, and longer lifespans,” he added. Organised by the VIETSTAR Training and Consulting JSC and Paris Graduate School of Management, the forum, titled ‘Enhancing Resilience, Strategy Formulation and Execution in the New Normal: Singapore Experience for Energy Industry,’ had the participation of over 50 executives of leading Singaporean and Vietnamese corporations. Vietnam Specialty Coffee Competition 2022 launched The Vietnam Specialty Coffee Competition 2022 has been launched, with registration available for participants between February 15 and March 25 next year. Accordingly, eligible contestants are organisations and individuals that own coffee farms or directly cooperate with farmers producing and processing specialty coffee in the territory of Vietnam, including foreign enterprises. The award ceremony for the 2022 edition is scheduled for April 30. Chairman of the Buon Ma Thuot Coffee Association and head of the organising board of the competition Trinh Duc Minh said the contest, after three editions, have brought about benefits, particularly economic ones, for farmers, cooperatives, and exporters. The 2022 edition sees the number of judges increasing and an independent technical board support the organising board established, he said. The launch took place at a virtual ceremony on October 22, which also awarded six winners of the Vietnam Specialty Coffee Competition 2021, including the Eatu Fair Agricultural Service Co-operative, Mori Coffee Company Limited, and Pun Coffee limited company. This year’s contest had 41 participants from Ho Chi Minh City, Hanoi and the provinces of Son La, Quang Tri, Dak Nong, Gia Lai, Lam Dong and Dak Lak, who submitted 74 coffee samples, an increase of 34 percent compared to the previous edition./. Steel producers report strong growth in profits despite COVID-19 Despite disruptions caused by the fourth wave of the COVID-19 pandemic, steel producers still reported extraordinary profits. In its third-quarter financial report, Hoa Phat Group (HPG) posted a rise of 56 percent year-on-year in revenue to 38.9 trillion VND (1.7 billion USD), resulting in record profit after tax of 10.35 trillion VND, 2.7 times higher compared to last year. As of September 30, the leading steel producer recorded revenue of over 105.8 trillion VND, up more than 60 percent. Its profit after tax jumped 200 percent over last year to 27.1 trillion VND, which exceeded 45 percent of the year's plan. In the past nine months, Hoa Phat produced 6.1 million tonnes of crude steel, up 50 percent over the same period last year. Sales of steel products reached 6.3 million tonnes during the period, up 43 percent. Of which, construction steel sales rose 12 percent to 2.8 million tonnes, while hot rolled coil (HRC) sales reached nearly 2 million tonnes. Tien Len Steel Group (TLH) also reported outstanding performance last quarter. Even though the company’s consolidated net revenue increased 1.5 percent year-on-year to nearly 909.4 billion VND, its profit after tax surged more than 8.3 times to 105.5 billion VND. Tien Len Steel Group said that the rise in revenue was driven by higher steel prices, while low inventories resulted in a sharp drop in the cost of goods sold. During the period, the company also minimised a number of expenses, leading to a sharp gain in net profit. In the first nine months of 2021, its revenue climbed 15 percent to 3.28 trillion VND, with net profit up to 422.3 billion VND from just nearly 997 million VND in the same period last year. With the result, the company exceeded its whole year target. This year, Tien Len Steel Group set a target of 250 billion VND in profit after tax. Similarly, Thai Nguyen Iron and Steel (TIS) and Me Lin Steel (MEL) witnessed strong growth in business results. Thai Nguyen Iron and Steel said in its third-quarter report that the company’s net revenue jumped 46.5 percent over last year to nearly 3.1 trillion VND, with net profit reaching nearly 10 billion VND, 25 times higher than that of last year. During the period, its profit from financial activities rose strongly, while interest expenses declined. In the first nine months, it posted an increase of 37.5 percent year-on-year to over 9.6 trillion VND. Given the sharp fall in expenses and higher steel prices, its profit after tax rose 7 times over last year's to 113 billion VND. Meanwhile, Me Lin Steel recorded a loss of 18.7 percent in net revenue to 196 billion VND. But thanks to a significant cut in expenses, with financial expenses and general and administrative expenses both down more than half, its profit after tax was still 10.6 times higher than the same period last year to over 18.7 billion VND. According to Me Lin Steel, in the third quarter, domestic steel prices rose sharply compared to the same period of 2020, while the company's inventories were still relatively low, so profits surged. At the same time, the company also maximised production and business expenses like sales and interest expenses, and increased efficiency. Le Xuan, a senior trader, said that steel enterprises were likely to benefit as China was tightening its annual steel production output. “Environmental problems and limited energy consumption are forcing Chinese enterprises to reduce output, causing a fall in the global steel supply, as China is the world's largest steel exporter,” Xuan said. “It will support our steel producers.” On the stock market, HPG and TLH are listed on the Ho Chi Minh Stock Exchange (HoSE), while MEL is traded on the Hanoi Stock Exchange (HNX) and TIS is on UPCOM. These stocks have gained strongly since the beginning of the year with HPG shares and TIS shares up 34 percent and 53.2 percent, respectively. TLH shares even jumped more than 197.3 percent, while MEL shares rose nearly 130 percent. “Steel stocks may still have room to increase thanks to the expectation of profit growth and public investment is expected to increase sharply post-pandemic,” said Xuan. She added that the restart of real estate projects also increased demand for steel products./. HCM City food providers bounce back from COVID-19, ensure food supply Food manufacturers and distributors in HCM City are focusing on resuming production and ensuring stable food supply after a long period of strict COVID-19 preventive measures hindering their operations. According to the HCM City Food and Foodstuff Association, its business members have been keeping prices stable, following the city’s instruction. They are also working closely with local authorities to ensure safety at the workplace. Most of the key businesses in the association were able to resume production almost immediately after the city’s reopening in early October. Manufacturers of instant noodle products can now reach up to 80 per cent of their usual capacity, while certain farm produce processing facilities are able to reach full capacity. Distribution businesses in the city are also preparing to supply the market with essential goods for the remaining months of the year. Saigon Co.op, for example, is working with its suppliers to stock up on rice, frozen foodstuff and other food products, and is buying large quantities of fresh vegetables from co-operative groups in southern provinces. It said it would ensure sufficient supply of foodstuff for the next six months. However, many businesses are still facing problems such as lack of manpower and difficulties buying ingredients due to rules related to custom procedures and transportation amid the ongoing pandemic. They are asking permission to extend their staff’s working hours to meet delivery demands. Ly Kim Chi, chairman of the association, said that businesses would like the city to issue more long-term policies and guidelines to help businesses adapt to the city’s new normal and be more proactive, such as instructions in dealing with positive COVID-19 cases among staff. Wide-scale lockdowns and needless testing should not be enforced, she said. Businesses are also asking for financial assistance such as tax and land rent reduction, as well as more favourable prices for testing kits. This month, many businesses in HCM City have resumed operation but they have had to adhere to the city’s strict COVID-19 safety regulations, such as frequent staff testing and ensuring social distancing and staff vaccinations. Vietnamese, Scotland firms jointly develop rooftop solar power The Hoa Binh Construction Group (HBC) and Scotland’s Shire Oak International (SOI) have struck a strategic deal to develop rooftop solar power. Accordingly, both sides will build rooftop solar power systems on industrial buildings or invest in existing ones. HBC will be an engineering, procurement and construction (EPC) contractor in their joint projects. They will also pour capital in inshore and offshore wind power farms as well as wind power distribution systems. Founded in Scotland in 2002, SOI has been present in Vietnam since 2009 with rooftop solar power projects. On July 5, 2019, the Vietnamese Ministry of Industry and Trade issued the Decision No.2023/QD-BCT approving the rooftop solar power development programme for the 2019-2025 period, targeting the installation of 100,000 rooftop solar power systems, or 1,000 MWp by the late 2025./. Project on marine aquaculture development till 2030 approved Deputy Prime Minister Le Van Thanh has recently signed Decision No.1664/QD-TTg approving a project on marine aquaculture development till 2030 with a vision to 2045. The overall goal of the project is developing a synchronous, safe, effective, sustainable and eco-friendly marine aquaculture, producing branded products to meet domestic and foreign demand, generating jobs and improving income of residential community in coastal areas, contributing to protecting the security of the country’s seas and islands. By 2025, the project targets having 280,000ha for aquaculture, achieving an output of 850,000 tonnes and export revenue of 800 million – 1 billion USD. By 2045, sea farming will become an important part of the fishery sector with modern management, contributing to over 25 percent of the total output and earning more than 4 billion USD in export turnover. To such end, a synchronous infrastructure will be developed to serve the industry. Specifically, a fleet of logistics vessels and offshore marine farming areas will be set up in key provinces. As for inshore sea farming, priority will be given to competitive consumption markets and growing various species in combination with resources protection and management in coastal areas. For cities and provinces from Quang Ninh to Ninh Binh, the Hai Phong – Quang Ninh area will be built into a sea aquaculture centre with concentrated mollusca breeding areas, thus meeting domestic and regional demand. The cities and provinces from Thanh Hoa and Binh Thuan will develop sea aquaculture in tandem with seafood processing, logistics services, building and operating a mobile model for effective and sustainable exploitation and management of lobster breeding. The cities and provinces from Ba Ria – Vung Tau to Kien Giang will harmoniously combine sea farming with services, marine ecological tourism, wind power and processing industry. Under the draft project, offshore marine farming areas will be established in key cities and provinces such as Quang Ninh, Hai Phong, Quang Ngai, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan, Ba Ria – Vung Tau, Ca Mau and Kien Giang and several others with favourable natural conditions./. Healthcare tourism: untapped potential in Vietnam Medical tourism has emerged as a major trend around the world as the COVID-19 pandemic and environmental pollution have caused people to pay more attention to their health. Particularly, experts said the post-COVID-19 era would be a booming period for all types of healthcare services. This new kind of tourism has not been effectively exploited in Vietnam, despite the big number of destinations with potential for wellness tourism. Wellness tourism has become popular in some countries including the US, India, Japan, the Republic of Korea, Singapore, China, Thailand and Indonesia. “It is forecasted that the global wellness tourism market will post a revenue of 919 billion USD in 2022,” tourism expert Nguyen Van Luu said. Currently, this type of tourism is growing rapidly from North America to Europe and Asia-Pacific and will expand faster in the coming years, he added. It is worth mentioning that over the past five years, Asia has led in both the number of visitors and revenue from healthcare tourism. Deputy Director of the Tourism Market Department, Vu Nam cited Yufuin, a rural village in Oita Prefecture of Japan as an example in exploiting local resources for health tourism. With a natural area of about 1,800 hectares and a population of about 10,000 people, the village welcomed nearly 4.5 million visitors in 2019. It is estimated that more than 12,000 visitors arrived at Yufuin per day on average, more than the population of the village. The income from tourism in 2019 of local people reached more than 16 billion JPY, equivalent to nearly 15 million USD. “Yufuin can be said to be one of the most typical tourist destinations in exploiting hot mineral resources for the development of healthcare tourism not only in Japan but also around the world," Nam said. Commenting on this tourism trend, which has developed in the world but is still untapped in Vietnam, deputy head of the Vietnam National Administration of Tourism Nguyen Thi Thanh Huong said there will be a shift in the tourism trend in the future, especially long-term trips will no longer be mere sightseeing trips. It will be a combination of relaxation and the use of services to strengthen physical and mental health. Huong said the main reason for wellness tourism to be ignored in Vietnam is a lack of comprehensive research on its potential as well as no specific orientations and policies for the development of this type of tourism. Over recent years, many hot mineral springs have opened for tourists such as Quang Hanh (Quang Ninh province), My Lam (Tuyen Quang province) and Thanh Thuy (Phu Tho province) which offer Japanese-style healthcare tourism services with hot spring baths. Before the COVID-19 pandemic erupted, about 350,000 foreigners came to Vietnam in 2018 for to have medical examinations and treatments, generating a turnover of 2 billion USD. Meanwhile, every year, about 40,000 Vietnamese people travel abroad for healthcare services in combination with tourism and spend billions of dollars. It showed that not only international visitors but also domestic travelers are potential customers of this type of tourism. To meet the demand of tourists, some travel agencies have developed a wide range of tourist products associated with maintaining and promoting people’s health such as yoga on beach and massage therapy, offering a fresh experience for visitors. Director of Thua Thien Hue Department of Tourism, Tran Huu Thuy Giang, said that this locality will study and soon issue policies and product orientations for tourism businesses to develop and put into operation healthcare tours. “It is necessary to define this type of tourism a key type in the planning and development strategy of Vietnam's tourism. The government needs to have policies and plans for the development of this type of tourism in order to improve the health of the Vietnamese community and attract foreigners and increase revenue for the state budget,” said Professor Nguyen Van Dinh, a tourism expert./.
Fishery sector committed to combating IUU fishing Over the past four years, the Vietnamese Government, associations and businesses in the fishery sector have made efforts to carry out recommendations of the European Commission (EC) and have its "yellow card" warning against illegal, unreported and unregulated (IUU) fishing lifted, heard a conference on October 23. Nguyen Thi Thu Sac, Vice President of the Vietnam Association of Seafood Exporters and Producers (VASEP) and head of the VASEP Marine Product Committee, said Vietnam’s aquatic product exports reach nearly 9 billion USD a year. She, however, pointed out limitations in the management and exploitation of aquatic resources, which have yet to fully meet relevant legal regulations. Violations in fishing regulations should be quickly handled to remove the “yellow card” issued by the EC in 2017, Sac said, adding that such violations would be threats to the fishery sector’s sustainable and responsible development. She also warned that once the EC imposes a “red card”, Vietnamese seafood will not be allowed to enter the EU market, and the sector would loose around 387 million USD each year. VASEP Deputy Secretary General Nguyen Hoai Nam said VASEP's IUU control board will work to maintain results recorded over the past four years, and deal with the limitations. The communication work will be stepped up to raise public awareness of fishing regulations, he said, stressing the aim of ending violations in foreign waters at the end of this year, and have the “yellow card” removed in 2022./. ADB ready to support HCM City in economic recovery: Country Director The Asian Development Bank (ADB) stands ready to provide comprehensive assistance for Ho Chi Minh City’s economic recovery in the short term, as well as its economic development in both medium and long terms. ADB Country Director for Vietnam Andrew Jeffries made the promise during his virtual meeting with Chairman of the municipal People’s Committee Phan Van Mai on October 23. ADB is also willing to coordinate with HCM City in the disbursement of capital for joint projects and provision of credit to help recover local businesses affected by COVID-19 through intermediate financial institutions or guaranteed bank loans, he said. Jeffries expressed his belief that HCM City will soon overcome adverse impacts of the pandemic, and spoke highly of the economic development capacity of HCM City and Vietnam as well in the medium and long terms. The next six months will be an important period when businesses, especially small and medium-sized enterprises (SMEs), and investors should receive support to surpass difficulties caused by COVID-19, he said. For his part, Mai applauded the bank’s support to Vietnam in economic recovery and safe adaptation to the pandemic, highlighting the ADB-funded COVID-19 financial relief worth 5 million USD to support women-led SMEs, among others. According to the official, the city has identified a phased economic recovery roadmap and drawn up 11 strategies to safely, flexibly adapt to and effectively control the COVID-19 pandemic. HCM City wants to receive ADB’s recommendations for its economic recovery strategies, he added. The two sides agreed to improve the efficiency of cooperation in ongoing projects, and discuss new ones associated with economic recovery plans of HCM City and Vietnam./. HCMC to connect tourism with south-central Vietnam Tourists in HCMC can travel to three provinces in the south-central region in early November as the city has worked with three provinces there to promote tour programs. At conferences on tourism promotion jointly organized by HCMC and the south-central provinces of Khanh Hoa, Phu Yen and Binh Dinh on October 21 and 22, the parties reached a consensus to organize tour programs in a safe and convenient manner. At a conference aimed at promoting tourism between HCMC and Binh Dinh on October 22, travel firms in HCMC showed interest in operating tours to multiple tourist sites in the south-central province. An HCMC-based firm proposed Binh Dinh issue guidelines on tourism safety and provide a list of Covid-safe hotels. HCMC Vice Chairwoman Phan Thi Thang proposed Binh Dinh Province allow welcoming tourists to areas safe from Covid-19 from November 1. Nguyen Tuan Thanh, vice chairman of Binh Dinh, highly valued the efforts of the tourism departments of Binh Dinh and HCMC to promote tourism, saying that the province identifies tourism as an economic growth driver and is planning to develop Quy Nhon City into one of the country’s tourism centers. The province is stepping up to raise the Covid vaccination rate to welcome local and international visitors. From November 1, the province will reopen Phuong Mai Peninsula as residents there have received at least one shot of the Covid-19 vaccine, Thanh said, adding that Quy Nhon City will reopen its doors to tourists in late November. Travelers 18 and older must be fully vaccinated against Covid-19 and show proof of a negative Covid test result, while visitors aged below 18 are required to show a valid negative test certificate, according to the representative of Binh Dinh. On the same day, a conference connecting tourism between HCMC and Phu Yen was also held. At the event, the two localities agreed to implement domestic tourism programs. Speaking at the event, Vo Anh Tai, deputy director of Saigontourist Group, proposed Phu Yen update Covid safety regulations in detail so that tour operators could launch tours and ensure the safety of tourists during the new normal. The two localities should closely cooperate to offer attractive tourism packages for customers, Tai said. HCMC Vice Chairwoman Thang also proposed the province welcome back tourists from HCMC from November 1, adding that the city will focus on road tours in the initial stage, Phap Luat Online reported. Phu Yen Chairman Tran Huu The said that several tourist sites in the province remain unknown, thereby needing travel firms in HCMC to organize new tourism programs for these places. Visitors from HCMC to Phu Yen Province must be fully vaccinated and test negative for Covid, The said, adding that the province will support Covid testing for those who have yet to undergo a Covid test. Earlier on October 21, HCMC and Khanh Hoa Province held a tourism conference. The two localities planned to transport tourists from HCMC to Khanh Hoa by rail and air. Vietnamese ports among top 50 effective container seaports Three Vietnamese seaports have been named among the top 50 of the Container Port Performance Index (CPPI) launched by the World Bank and IHS Markit. Cai Lan International Container Terminal in the northern province of Quang Ninh ranked at 46th while Hai Phong Port and Cai Mep International Terminal in the southern province of Ba Ria-Vung Tau ranked at 47th and 49th, respectively. Yokohama port in Japan has been ranked as the most efficient port in the world, followed by Saudi Arabia's King Abdullah Port. Other ports in the top five are Chiwan, part of Shenzhen's port in Guangdong province, Guangzhou port of China and Taiwan's Kaoshiung port. Ports in Asia, the Middle East and North Africa dominated the top 50 spots, while four US ports cracked the top 100 - Philadelphia (83rd), the Port of Virginia (85th), New York & New Jersey (89th) and Charleston, South Carolina (95th). The COVID-19 pandemic has disrupted trade around the globe, snarling trade and exposing the frailty of a supply chain of goods. The US is the world's biggest consumer, importing goods valued at roughly 2.5 trillion USD a year. Southern California's Los Angeles and Long Beach ports handle the most ocean cargo of any ports in the US, but are some of the least efficient in the world, according to the ranking which reviews 351 container ports around the globe. Los Angeles was ranked 328th, behind Tanzania's Dar es Salaam and Alaska's Dutch Harbor while the port of Long Beach was at 333rd, behind Turkey's Nemrut Bay and Kenya's Mombasa. The CPPI is based on the total port hours per ship call, with this being defined as the elapsed time between when a ship reaches a port to its departure from the berth after completing its cargo exchange./. Economic growth from COVID-19 depends on vaccine rollout Economic growth after the COVID-19 pandemic will largely depend on the vaccine rollout, according to experts. They said that economic growth would also depend on the effectiveness and side effects of disease prevention measures and financial support packages. They said bad debts continued to be accumulated and could sharply increase to exceed the tolerance threshold of businesses. This is a potential financial risk in the post-pandemic economy. Nguyen Duc Thanh, Director of the Vietnam Centre for Economic and Strategic Studies (VESS), said because of the slow pace of vaccination, Vietnam missed the beat of the world economy’s recovery in 2021. This might lead to the loss of relative advantage. Vietnam’s vaccine rollout was relatively slow compared to other countries. The pandemic outbreaks in 2021 slowed the country’s economy growth and caused supply chain disruptions and labour market disturbances. Domestic businesses had been severely hurt. In addition, geopolitical shifts and developments of the world economy might increase risks for businesses in terms of the price of raw material. Thanh said economic growth in the first nine months this year did not really reflect all the difficulties of the economy. The resistance of enterprises had declined, particularly businesses in the southern cities and provinces which were suffering great losses due to the fourth wave of COVID-19. Pham The Anh, Head of the Macroeconomics Department under the National Economics University, said the market demand had worsened due to the impact of the COVID-19 pandemic and goods circulation had also been severely affected. Anh told participants that sooner or later, production costs would be reflected in the output prices such as expenses on gasoline, logistics, and costs of disease prevention. When social activities return to normal, consumer demand increases, the above factors would affect prices and put pressure on inflation. It was forecast that by the end of this year, the price of foodstuffs might rise due to difficulties in supply. Thành forecast that the high growth scenario could be gained this year if all businesses reach adaption in terms of production and limit disruptions in goods supply as of the fourth quarter of 2021. With such a prediction, the country’s gross domestic product (GDP) could reach less than two percent. According to the expert the low growth scenario is that cities and provinces have not conducted synchronised measures in the fight against the pandemic. This will cause difficulties in goods circulation. This may lead to the disruption of contracts and production plans and a labour shortage. As a result, the country’s GDP can fluctuate at 0.2 percent. In order to ensure the country’s economic growth in the high growth scenario, the Government should speed up vaccination campaigns in cities and provinces and ensure smooth circulation of goods as well as work out fiscal packages for businesses and assist unemployed workers. Provincial authorities are also required to offer jobs for those who had fled Ho Chi Minh City and nearby provinces of Binh Duong, Dong Nai and Binh Phuoc several months ago due to the fourth COVID-19 wave that emerged in the country in late April./. Real estate industry has hard time getting back on its feet post-pandemic Real estate businesses in Ho Chi Minh City are gingerly reopening, mostly consulting and carrying out transactions online due to the COVID-19 prevention and control regulations still in force. Tran Trong Tien, general director of a real estate brokerage in Binh Thanh district, said his company resumed operations at the beginning of October but is only allowed to have 30 percent of employees in office. "Our main projects are in Phu Quoc Island and some other localities, but … we cannot take visitors to show them the projects, and most consultations are online." Pham Lam, chairman of real estate services firm DKRA Vietnam, said most businesses in the industry had resumed operations, but were effecting few transactions since customers were hesitant to buy when they could not personally see the products. Most were opting to wait until they see them. Nguyen Huong, General Director of Dai Phuc Land Real Estate Joint Stock Company, said the COVID-19 pandemic caused great difficulties for real estate businesses: all their previous plans had been binned and most faced cash flow pressures. Banks cut lending to real estate business in the first half of this year, and this is likely to continue. LienVietPostBank's financial statements show that loans outstanding to the real estate sector fell in the first 6 months of this year by 52 percent to 1.67 trillion VND (72.6 million USD), or only 0.87 percent of total loans. At VPBank, the figure fell by 12 percent to 32.4 trillion VND. Chairman of the HCM City Real Estate Association Le Hoang Chau wants the central bank to instruct lenders to reduce loan interest rates by 2 percentage points, extend payment terms and roll over loans and not turn them into bad debts to enable the industry to recover./. Viet Nam to plans return of tourism and hospitality after COVID-19 After a bad year for business in 2020 as the COVID-19 pandemic shut down travel around the world, Viet Nam's tourism revenue fell even further this year. Plans were discussed by experts at a forum to access the current state of the hospitality market and map out a way towards a post-COVID-19 recovery. Speaking at the "Viet Nam Tourism and Hospitality – Managing in Uncertain Times and the Way Forward”, Vice-Chairman of the Viet Nam National Administration of Tourism, Ha Van Sieu, said the tourism industry experienced a decline of 16 per cent in domestic visitors and 41 per cent in tourism revenue in the first nine months of 2021, compared to the same period last year. “Accommodations, tour operators and travel services have been shut down or closed temporarily while most international and domestic flights have been cancelled or interrupted significantly due to travel restrictions,” Sieu said. “The percentage of occupied rooms in Viet Nam’s accommodation services was about 20 per cent in 2020 and less than 10 per cent in 2021.” RMIT Head of Management Department from the School of Business & Management Associate, Professor Nguyen Quang Trung, observed that “the past two years have been challenging for the hospitality and tourism landscape, leading to a really tough time for hotels, restaurants and tourism establishments.” In response to these uncertain times, InterContinental Hanoi Landmark72 General Manager, Patrick Verove, shared proactive plans which have helped the hotel overcome the difficulties. “At a time of great uncertainty, we have ensured guests can trust us for flexibility, cleanliness, safety and wellbeing priority,” Verove said. “Faced with temporary closures and low demand, we have identified ways for operational changes to improve profitability, protect cash flow, apply sophisticated digital solutions and train our staff with a growth mindset.” Capella Hotel General Manager, Christoph Strahm, emphasised the hotel had taken various measures including speeding up the adaptation of “state-of-the-art” technology and the implementation of touchless services to deliver a modern guest experience. “We have prioritised safety for both guests and staff by adopting touchless services such as contactless check-in and check-out, in-room tablets, mobile key and press reader, among others,” Strahm said. When talking about the local tourism recovery plan, experts thought about how the easing of restrictions can be managed, in line with the economy getting back on track. The tourism sector is expected to benefit from recovery measures and stimulus packages, allowing the sector to return gradually. Sieu urged tourism and hospitality companies to revise their development strategies to adapt to new trends in tourism demands. “Domestic tourism will surge, with a large proportion of travellers favouring green destinations ranging from beaches, mountains, forests, and national parks, followed by cuisine, culture, history and entertainment,” he said. “Tourism and hospitality companies should innovate and diversify into new products which focus on wellness, safety, nature and authentic experiences.” Two other panellists at the forum included Frasers Suites Hanoi General Manager, Sandy Ng, and Silk Path Hotels General Manager and Chief Business Officer, Nguyen Thi Thanh Thuy. Following the success of a previous event in January, the online forum attracted close to 100 participants. They included local authorities and business leaders in the tourism and hospitality industry, as well as academics and students. Ministry asks localities to increase inter-provincial passenger transport The Ministry of Transport has issued a document asking People’s Committees of cities and provinces to coordinate on the implementation of temporary guidelines on transport activities. The measures are to ensure safe and flexible adaptation to and effective control of the COVID-19 pandemic. The Government has issued Resolution No.128/NQ-CP on temporary regulations on safe and flexible adaptation to and effective control of COVID-19. To implement the resolution, the Health Ministry has promulgated temporary medical guidance and the Transport Ministry has also released temporary guidelines on transport activities in the five areas of land, inland waterway, maritime, railway and aviation. Therefore, to ensure smooth and concerted transport activities, People’s Committees of cities and provinces were asked to direct local agencies and units to follow the ministry’s guidelines, and instruct departments of transport to increase passenger volume on fixed intra-provincial and inter-provincial routes licensed by the provincial authorities. The ministry also suggested localities resume other routes depending on the local level of pandemic risk, while striving to maintain from 10 per cent to a maximum 50 per cent of licensed trips per month in line with requirements in the temporary guidelines. In a report reviewing passenger transport activities on fixed routes during one week of resumption from October 13-18, the ministry said authorities of 48 provinces and cities had allowed the resumption of inter-provincial routes, while in 15 other localities, the transport departments had submitted plans to resume routes to the municipal/provincial authorities. Tra Vinh needs Chinese experts fast-tracked for coal power plant The southern province of Tra Vinh is seeking Hanoi’s support to complete entry procedures for 11 Chinese workers amid the travel restrictions due to the Covid-19 pandemic. According to Tra Vinh’s proposal, during the pilot operation, the main transformer of Duyen Hai Thermal Power Plant’s Turbine 2 faced some technical problems, including the replacement of the main transformer. However, the plant investor needs 11 Chinese experts for the work. The Chinese will stay in Vietnam for less than 30 days. The province has asked Hanoi authorities to create favourable conditions for the Chinese to enter the country through Noi Bai International Airport. They will be sent to a quarantine site in Hanoi for seven days. After that, they will be brought to Tra Vinh and continue to be medically monitored at the Duyen Hai Thermal Power Plant. The investor of Duyen Hai Thermal Power Plant’s Turbine 2 has pledged to strictly conform to Covid-19 protocols and will pay costs related to the transportation and quarantine for the Chinese workers. Tra Vinh scales up support to resume key operations The Steering Committee on Administrative Reform and
Strengthening the Provincial Competitiveness Index, known as PCI, of the
Mekong Delta province of Tra Vinh has reviewed activities relating to the
provincial PCI ranking in the third quarter, and discussed several measures
and solutions to enhance efficiency towards the end of 2021. Along with this, efforts were geared towards building video clips to present projects in the investment wish-list and the immense potential of Tra Vinh’s marine economy, in which the province worked with the Ministry of Planning and Investment to develop a guidebook about the potential, advantages, and investment opportunities in the province. Other activities involve hosting an online seminar calling for Japanese investors in the province and launching a website on investment promotion in Vietnamese-Japanese language. Moreover, the province wants to set up a taskforce to support investors and its action plan in a bid to help businesses quickly and effectively, and work on a comprehensive plan to uphold startups and innovation in Tra Vinh, among others. This year, the province has hailed 39 domestic and foreign investors in quest of investment opportunities in multiple fields as logistics, deepwater seaports, energy, tourism, and agriculture. The steering committee has categorised four specific index groups to deliver an inclusive picture about the improvements and limitations in the province’s PCI ranking in the past quarters and the year as a whole. Accordingly, the component index group improved scoring and ranking six indices last year, showing that the local authorities handled their tasks effectively, particularly in dealing with the procedures on business registration. All business records were received and given back to businesses timely. The required time for these processes was shortened by one day while online registrations reached 63.4 per cent on average in the third quarter, higher than the nine-month average level of over 53 per cent. Some index groups had improved scoring but gained a lower ranking in 2020 (unofficial charges index), wherein sectors have strengthened inspection of staff performance to best serve businesses. Four inspections took place in Q3, affecting 22 businesses. Other index groups with lower scoring but improved ranking in 2020 included transparency and labour training. Despite the pandemic, Tra Vinh has supported businesses and labourers to access policy benefits. However, due to social distancing, fewer labourers received jobs in Q3. More than 16,600 workers were employed so far this year, reaching over 72 per cent of the projection, while nearly 300 others went abroad to work, equalling more than 32 per cent of the projection. Unemployment allowance was approved for 11,340 workers with a total sum of $7.93 million. The index group with lower scoring and ranking in 2020 refers to the business support index. Due to the pandemic, a string of trade fairs and market activities were suspended, causing difficulties to goods’ consumption. Le Thanh Binh, Deputy Chairman of Tra Vinh People’s Committee and deputy chairman of the steering committee, voiced the need to take actions on removing hardships that hinder index improvement. He further urged to enhance management quality and operation efficiency of the committee, striving to constitute an increasingly open, transparent, and conducive business environment, thus boosting the province’s appeal in the eyes of investors and businesses. The PCI ranking is instrumental to attracting investment and facilitating the provincial development. As COVID-19 is gradually put under control, business support makes greater sense, and should be considered part of the local authorities’ responsibility. The PCI proves imperative for the people’s committees of the grassroots level across the province to scale up efforts to effectively fulfill their tasks detailed in the plan of Tra Vinh People’s Committee and others by relevant governmental agencies. Australia assists Vietnam to expand HR development Australian Ambassador to Vietnam Robyn Mudie and Vietnamese Deputy Minister of Education and Training Nguyen Van Phuc on October 22 launched the second phase of Australia’s Aus4Skills human resource development program worth AUD$50.1 million. Implemented from 2021 to 2025, the program will support Vietnam’s socioeconomic development, respond to the country’s demand for workforce skills and strengthen links between the Australian and Vietnamese people through education. Aus4Skills will offer Australia Awards Scholarships for Vietnamese citizens to study at Australian universities in priority fields of study, deliver Australian alumni professional development activities and grants that support Vietnam’s development, and implement higher education capacity-building activities for Vietnamese university leaders. According to Mudie, Australia’s Aus4Skills program is highly relevant to supporting Vietnam’s future human resource development priorities, especially as it navigates the challenges presented by the Covid-19 pandemic. “Over the decades, education has created many enduring partnerships between Vietnamese and Australian people and organizations. Through these partnerships, Australians and Vietnamese have contributed to Vietnam’s continued socioeconomic development across a wide range of priority sectors, such as governance and economic growth, infrastructure and transport, water and sanitation, education, gender equality and agriculture and rural development,” she said. Deputy Minister Nguyen Van Phuc said, “Vietnam and Australia continue to be strategic partners in education and training, which is essential to our human resource development and economic goals. We are thankful for Australia’s continued support for Vietnam’s education priorities and sustainable socioeconomic growth.” Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan |
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