VIETNAM BUSINESS NEWS OCTOBER 515:43 Project aims to enhance trade remedy capacity as Vietnam joins new-generation FTAs
Viet Nam has set a target of amending the Law on Foreign Trade Management and relevant legal documents related to trade remedies or building a Law on Trade Remedies by 2030. This is one of the goals of a project, which was approved late last week by Deputy Prime Minister Le Van Thanh, aimed to improve trade remedy capacity for domestic manufacturing industries in the context of Viet Nam’s participation in new generation free trade agreements (FTAs). Other targets include providing knowledge and skills on trade remedies for staff in ministries, agencies and localities. A team of legal experts and consultants who has in-depth knowledge of trade remedies are expected to be established to support manufacturing industries to ensure Viet Nam's interests in international trade. Under the project, the inter-sectoral coordination mechanism in the field of trade remedy is set to be built and strengthened to meet the requirements of the trade remedy work in the new context, assisting the settlement of other countries’ trade remedy investigations into Vietnamese exports. The capacity of the Trade Remedies Authority of Viet Nam will be strengthened to satisfy practical needs and effectively support domestic manufacturing industries. The content of trade remedies will be included in the programmes, strategies and policies for the development of key manufacturing industries. The project also targets enhancing international cooperation, actively participate in negotiations, develop regulations on trade remedies, settle disputes on trade remedies within the framework of the World Trade Organisation (WTO) and free trade agreements. To realise the above-mentioned goals, some solutions should be adopted, including completing the model of trade remedy investigation agency in Viet Nam based on studying those of other countries and reviewing the agency’s operations in the country. It is necessary to select several fundamental manufacturing industries, which have an important impact on socio-economic development to strengthen trade defence capacity during the implementation of FTAs. A up-to-date database on investment, production, business, import and export in these industries should be set up to promptly consider and apply trade remedies in accordance with the law. The building of infrastructure and software for investigation and application of trade remedies is also essential. It is a must to set up and operate a portal to update developments of trade remedy cases related to Viet Nam, creating conditions for concerned parties to submit and access documents in the form of electronic data and responses during the investigation of the cases. A mechanism should be developed for supporting and exchanging information between state management agencies, the business community and associations, especially small and medium-sized enterprises to assess the possibility of applying defensive measures and its impacts. Shares end higher thanks to oil and seafood stocks Shares had a good start on Monday, propped up by positive performances from oil and seafood stocks and increased liquidity. On the Ho Chi Minh Stock Exchange, the VN-Index increased 0.35 per cent to 1,339.54 points. Liquidity was modest with 736 million shares worth a combined VND22.8 trillion (US$1 billion) traded on the southern bourse. Market breadth was positive with 224 gaining stocks and 179 losers. The VN30-Index gained 0.12 per cent to 1,443.61 points. Of the VN30 basket, 12 stocks slid while 16 rose and two stayed flat. “The market maintained a positive movement trend in today's session. Investment cash flow spread into the market,” said BIDV Securities Co. “Market breadth turned positive with liquidity rebounding, showing an upbeat trading sentiment. “Foreign investors were net sellers on both HoSE and HNX. With the domestic cash flow returning to the market, VN-Index may recover to 1,350 points in the next trading sessions,” the company said. Foreign investors net sold VND343.56 billion on HOSE, including Vietinbank (CTG) with VND139.65 billion, Hoa Phat Group (HPG) with VND128.36 billion, and Sacombank (STB) with VND37.38 billion. They were net sellers on HNX with a value of VND4.80 billion. The oil sector had a good trading session, strongly supporting the overall market. Gainers in the group included PetroVietnam Gas JSC (GAS), PetroVietnam Drilling and Well Services Corporation (PVD), PetroVietnam Technical Services Corporation (PVS) and PetroVietnam Power Corporation (POW). The seafood group also made strong gains with Nam Viet Corporation (ANV), Camimex Group JSC (CMX), I.D.I International Development & Investment Corporation (IDI), Minh Phu Corporation (MPC), Cuu Long Fish Joint Stock Company (ACL), Vinh Hoan Corporation (VHC), and Mekong Fisheries Joint Stock Company (AAM) all gaining. On a sector basis, 18 out of 25 sector indices on the market recorded gains, including wholesale, real estate, insurance, information and technology, healthcare, oil, agriculture, rubber production, food and beverage, seafood processing, construction materials and logistics. On the Ha Noi Stock Exchange, the HNX-Index gained 1.24 per cent to 360.89 points. Over 142 million shares were traded on the northern exchange, worth VND3.2 trillion. Shrimp exports to Russia rise 51% despite COVID-19 impact Despite the impact caused by the COVID-19 pandemic
Vietnam raked in more than US$32.5 million from shrimp exports to Russia
during the past nine months, up 51% year on year, according to the Vietnam
Association of Seafood Exporters and Producers (VASEP). VASEP statistics show that Vietnam’s shrimp exports have continuously increased sharply over the years, from just US$15.7 million in 2017 to US$41.1 million in 2020, representing an increase of 162%. The 2016 enforcement of a free trade agreement between Vietnam and the Eurasian Economic Union (EAEU) to which Russia is a signatory has created plenty of opportunity for the Vietnamese shrimp to enter the Russian market, says Nguyen Hoai Nam, deputy secretary general of VASEP. Nam notes Russia has a high demand for seafood, including shrimp, but local businesses need to pay attention to product price and quality to promote shrimp exports to this market. Data from the International Trade Center (ITC) also show that in the first seven months of this year alone, Vietnam was the third largest shrimp supplier to Russia, after India and Ecuador. Hanoi to host 8th ASEAN Ministerial Meeting on Minerals this week Vietnam’s Hanoi capital will virtually host the 8th
ASEAN Ministerial Meeting on Minerals (AMMin8) and its related meetings from
October 6-8. The meetings will bring together ministers and senior officials of minerals from 10 ASEAN member countries, namely Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam, as well as the ASEAN Secretariat, three ASEAN dialogue partners of Japan, China, and the RoK. Representatives of international organizations such as CCOP and AFMA will also attend the events. A representative of the Government of Vietnam will deliver an opening speech and chair the 8th ASEAN Ministerial Meeting on Minerals, while the Minister of Natural Resources and Environment of Vietnam will chair the related meetings. The AMMin is a forum for ASEAN ministers to review regional cooperation in the field of minerals, promote the development of the mining industry, and at the same time outline policy directions for cooperation within the bloc and between the bloc and its dialogue partners. Reference exchange rate down 2 VND on October 5 The State Bank of Vietnam set the daily reference exchange rate at 23.154 VND/USD on October 5, down 2 VND from the previous day. With the current trading band of +/- 3 percent, the ceiling rate applicable to commercial banks during the day is 23,848 VND/USD and the floor rate 22,459 VND/USD. The opening-hour rate at commercial banks stayed stable. At 8:25am, Vietcombank listed the buying rate at 22,630 VND/USD and the selling rate at 22,860 VND/USD, unchanged from October 4. BIDV also kept both rates unchanged, listing at 22,660 VND/USD (buying) and 22,860 VND/USD (selling). Similarly, Vietinbank listed both rates at the same levels as on October 4 at 22,635 VND/USD (buying) and 22,855 VND/USD (selling)./. Agriculture enjoys trade surplus despite COVID-19 impact Despite the negative impact caused by the COVID-19
pandemic, Vietnam’s agricultural sector raked in US$35.5 billion from exports
during the opening nine months of the year, a rise of 17.7% year on year,
according to the Ministry of Agriculture and Rural Development (MARD). The agricultural sector enjoyed a trade surplus of more than US$3.3 billion over nine months, a bright spot in the overall economic picture amid the COVID-19 pandemic, the MARD says. Most farm products recorded strong export growth, such as coffee, rubber, fruit and vegetables, pepper, cashew nuts, cassava and cassava products, livestock products, pangasius, shrimp, wooden product, rattan, bamboo, sedge carpet, and cinnamon. Notably, several export products obtained high growth in both volume and value, including rubber up 17.1% in volume and 52.7% in value, cashew nuts 16.6% in volume and 14.8% in value, and cassava and cassava products up 12.9% in volume and 27.7% in value. The Vietnam Food Association reports the country exported 122,000 tonnes of rice over the past week, marking an increase of 3.39% compared to the previous week, while Thailand and Pakistan only exported 157,000 tonnes and 95,000 tonnes, respectively. In face of price competition from regional peers, Vietnamese export price of 5% broken rice remains stable at between US$428 - 432 per tonne, while that of Thailand's 5% broken rice stands at US$383 - 387 per tonne. Nguyen Thi Huong, general director of the General Statistics Office, says agriculture proves to be a key economic sector that has supported the ailing economy badly affected by the COVID-19 pandemic over the past months. Meanwhile, Deputy Minister Phung Duc Tien emphasised that as an important pillar of the national economy, the agricultural sector have set its sights on an export target of over US$44 billion this year. SeABank approved to increase charter capital to US$590.1 million SeABank was approved by the State Bank of Viet Nam (SBV) to increase its charter capital from the current VND12 trillion (US$528.3 million) to VND13.4 trillion ($590.2 million) through stock dividends and employee stock ownership plan (ESOP). The charter capital increase is part of the bank's development plan to have more financial potential and create favourable conditions in expanding its operation network, investing in facilities and technology. It would also help the bank to improve the operation quality while diversifying products and services to better meet customers’ needs across the country. According to the business plan for 2021 approved by the General Meeting of Shareholders, SeABank aimed to increase its total assets by 10 per cent to VND198.2 trillion. Deposits from customers would be increased by 9.7 per cent to VND124.2 trillion and outstanding loans up 13 per cent to VND122.9 trillion. It targeted a before-tax profit of VND2.4 trillion, representing a 40 per cent year-on-year increase. During complicated developments of the COVID-19 pandemic, SeABank has taken effective measures to prevent and control the pandemic, and at the same time flexibly adjust its business plan, focusing on developing new banking and financial services and SeAMobile digital banking applications, thereby maintaining a stable growth rate. In the first half of the year, the bank achieved positive business results with total assets of VND186.9 trillion, before-tax profit of VND1.5 trillion, 2.3 times higher than the same period in 2020 and nearly equal to the profit of the whole of last year. Its bad debt ratio continued to decrease from 1.86 per cent to 1.76 per cent. SeABank was also ranked by the central bank among 17 credit institutions with important influence in the banking system in 2021. It was given B1 long-term credit by Moody's for three consecutive years and the positive outlook. PM issues directive on restoration of industrial production Deputy Prime Minister Le Van Thanh has signed for issuance of a Prime Minister directive on restoring production at industrial production areas amid the COVID-19 pandemic. The directive stated COVID-19 outbreaks have seriously affected production and business of enterprises as well as the health and lives of people. With the concerted efforts of the entire political system, the business community and people, the pandemic has been gradually controlled and pushed back. To remove difficulties for businesses and ensure safe production, the PM asked enterprises to closely coordinate with the People’s Committees of provinces and cities nationwide to reach agreement on plans on production and circulation of goods, travelling and accommodation of workers as well as plans to ensure pandemic prevention and control./. Deposit interest rate to stay low as banks keep borrowing costs down Commercial banks' deposit interest rate has remained low at the beginning of October, the Vietnam News Agency reported. Deposit interest rate among Vietnam Bank for Agriculture and Rural Development (Agribank), Bank for Investment and Development of Vietnam (BIDV), Vietcombank and VietinBank - the country's largest commercial banks or the big 4 - stayed in the range of 5.5-5.6 per cent for 12-month, 4 per cent for 6-9-month and 3,1-3,4 per cent for 1-3 month term deposits. Other commercial banks have been offering more attractive rates at 5.4-7.1 per cent, notable among them were Techcombank, ACB and MSB at 7.1 per cent annually for 12-13-month deposits at a minimum of VND30 billion (ACB), VND200 billion (MSB) and VND999 billion (Techcombank). Meanwhile, LienVietPostBank, MB Bank, VietABank, HDBank and SCB also offered decent rates from 6.8-6.99 per cent for 12-month deposits with a minimum around ranging from VND200-300 billion. The low interest rate for deposits is part of an effort to lower lending rates for consumers and businesses, which have been struggling during the pandemic. However, even with lower rates, the banks have found it difficult to find borrowers in the last two months as demand plummeted during numerous lockdowns in major cities and provinces across the country, according to Nguyen Tuan Anh, head of the Credit Department of Economic Sectors under the State Bank of Vietnam (SBV). Anh said he expected demand to recover once lockdowns have been relaxed or lifted completely. "The country recorded a 7.18 per cent in credit growth by the end of August since the beginning of the year. It's still possible for us to meet the 12 per cent yearly target by the end of the year but it will take sound and flexible credit policies," he said. Experts said there was still room to lower the borrowing rates but by itself, it won't be enough to help businesses recover. "With plenty of liquidity in the system, we can go lower still on the borrowing rate. While this is especially helpful for many businesses who have been borrowing to speed up their recovery it doesn't help those who have not been able to secure new capital," said Dr Nguyen Tri Hieu, saying a lower rate did not mean the banks were cutting corners when it comes to safety. Commercial banks have slashed more than VND8.8 trillion (US$386 million) in interest rates from July 15 to August 31 in support of businesses that have been severely affected by the novel coronavirus, according to the SBV. Tien Giang’s export up over 11 percent in nine months The Mekong Delta province of Tien Giang raked in 2.45 billion USD from exports between January and September, increasing 11.15 percent annually and fulfilling 75.4 percent of the yearly plan. Foreign-invested enterprises accounted for 83.5 percent of the province's total export value. To avoid disruption in supply chains given complicated developments of the COVID-19 pandemic during the period, local authorities developed a 'three-on-site' production plan for manufacturing enterprises on the principle of prioritising large firms with stable export volumes and export markets, large numbers of workers and ensuring disease prevention and control. Accordingly, the province had 22 enterprises in and outside industrial zones and clusters that were approved to apply the 'three-on-site' with over 3,600 workers. In the remaining months of the year, Tien Giang plans to focus on exploiting the potential of its key export earners – such as garment and textiles, bags, food and beverages, while sustaining and supporting the development of products with competitive advantages like farm produce and processed seafood. The province is striving to earn 3.25 billion USD from exports this year, over 0.25 billion USD higher than the figure in 2020./. Fertiliser stocks' potential remains high The recovery of global demand to rebuild economies while supply disruptions remain has pushed prices of a series of goods to record highs since mid-2020. Of which, fertiliser prices have continuously climbed from the bottom hit in May 2020, with DAP fertiliser price jumping 125 per cent, Urea fertiliser price up 121 per cent, and phosphate fertiliser price increasing 130 per cent. In a recent report, Agriseco Research said that the strong rallies in fertiliser prices are due to the supply disruption of input materials for production such as sulfur, natural gas or coal. And these materials’ prices have also risen sharply. From the bottom hit in 2020, the prices of natural gas and coal, which are the two main materials of fertiliser production, have both surged. Agriseco Research believes that the upward momentum will continue as countries see higher gas demand amid declines in reserves in the coming winter. With coal, China's plans to cut coal mining and production can keep prices higher. Nevertheless, the ongoing uptrend of materials prices will affect profit margins as higher product prices will reduce competitiveness. Fertiliser prices may continue rising higher, helped by China's restriction on fertiliser exports. While it is just in the short term until supply and demand balance, this is good news for domestic producers like Phu My Fertiliser (DPM), Ca Mau Fertiliser (DCM) and Binh Dien Fertiliser (BFC) to raise their domestic market shares, increase output and export value to other countries. Moreover, given the lack of supplies to meet demand, while China has issued policies to limit fertiliser exports to ensure supply for the domestic market, the fertiliser prices are accelerating. Agriseco Research believed that the higher prices were the main driver for outstanding business results of Viet Nam’s fertiliser companies in the first six months of 2021, such as Phu My Fertiliser (DPM) recorded profit after tax of VND684 billion (US$30.1 million) in the second quarter, up 126 per cent year-on-year. In general, fertiliser producers in Viet Nam can produce and supply to the market all kinds of Urea, phosphate, NPK, DAP and MAP fertilisers. However, for nitrogen SA and potassium fertilisers, due to the limited supply of potash - magnesium ore in the country, all of them must be imported to serve domestic demand and as raw materials for the production of NPK complex fertilisers. In the first half of 2021, inorganic fertilisers output reached 4.69 million tonnes, an increase of 11.7 per cent over last year. The total amount of imported fertilisers was 2.31 million tonnes, while exports reached 667,000 tonnes, up 15 per cent and 44.7 per cent over the same period last year, respectively. Agriseco Research attributed the significant rises to the stagnation in 2020, adding that the economic recovery also boosts factories operating at higher capacity to meet demand. Towards the end of 2021 and into 2022, fertiliser prices may slow down but continue to remain at high levels, Agriseco Research said in the report. Therefore, opportunities for Vietnamese fertiliser enterprises come from rising demand when agricultural production is restored, especially when entering the winter-spring rice crop. The fertiliser industry is still one of the few to benefit and expect positive business results in 2021, despite COVID-19. Although some stocks have risen relatively strongly, and market valuations are no longer attractive, Agriseco Research believed that there are still many investment opportunities due to growth potential in the last months of the year. DPM and DCM are two leading stocks selected by Agriseco Research. It said that these two companies have a good foundation, benefit from policies, as well as rising fertiliser prices. This will provide opportunities to accumulate stocks that are expected to surge in the next 3-6 months during the market’s correction sessions. On the Ho Chi Minh Stock Exchange (HoSE), DCM shares closed Monday morning at VND29,600 per share, up 4.96 per cent, while DPM shares inched 1.31 per cent higher to VND38,600 per share. Thai Binh firms roll out solutions to bolster production Businesses of the northern province of Thai Binh have rolled out numerous solutions to bolster production in response to a call of local authorities, towards fulfilling the goal of a gross regional domestic product (GRDP) growth rate of 13 percent in remaining months of 2021. Nguyen Tien Phuong, Chairman of the Board and General Director of the Thai Binh branch of Tan De sportswear company, said that the factory is striving to post export earnings of 135 million USD in the last five months of the year, raising the yearly figure to 350 million USD, up 20 percent against the same period last year. Meanwhile, Do Luong Company in the province’s Dong Hung district will promote trade at home and abroad, focusing on niche markets to ensure orders for the remaining months of 2021 and following year, said its Director Ninh Xuan Thao. To overcome difficulties triggered by the complexities of COVID-19, a brickworks of Mikado Technology and Trading Company at Tien Hai industrial park renewed production process, invested in advanced technology and raised competitive edge so as to conquer the domestic and international markets. Thai Binh’s business community has bolstered welfare policies for workers and expanded production scale and market development at home and abroad in an attempt to improve operation and revenues in the remaining months of the year. Chairman of the provincial Business Association Do Van Ve believed that Thai Binh will fulfil its socio-economic targets this year, creating a momentum for 2022 and later years thanks to drastic COVID-19 prevention and control efforts along with determination of firms to surmount hardships and introduce innovative and effective methods./. Bac Giang resumes tourism activities starting October 4 The northern province of Bac Giang, which has gone through 30 days without any COVID-19 infection in the community, allowed its tourism sites and the Yen Dung golf course to reopen for visitors from pandemic-free localities, dubbed green zones, nationwide on October 4. The move is done in a bid to gradually resume socio-economic activities in the province, according to the provincial Department of Culture, Sports and Tourism. To enter the province, tourists must be fully vaccinated, with their last shots of the COVID-19 vaccine done in at least 14 days and less than 12 months prior to the time they arrive in Bac Giang. They also need to provide a negative testing result within 72 hours. All local tourism sites are required to seriously follow pandemic prevention regulations, including the Ministry of Health’s 5K message – khau trang (facemask), khu khuan (disinfection), khoang cach (distance), khong tu tap (no gathering) and khai bao y te (health declaration). Earlier, Bac Giang lifted its temporary close order on businesses, eateries, some education establishments, and spa and massage service facilities. The authorities also allowed the resumption of sport activities. In more than a month, the province has posted no
community cases of COVID-19. Since 2016, Bac Giang has welcomed about 7.7 million visitors and earned more than 4 trillion VND (nearly 173.9 million USD) in tourism revenue. It has been developing three types of tourism based on local potential and advantages: cultural - spiritual tourism, historical - cultural tourism, ecological - leisure tourism. The provincial People’s Committee has given in-principle approval to six key tourism projects invested with a total of more than 2.54 trillion VND. So far, it has completed the first phase of the Tay Yen Tu (Western Yen Tu) spiritual and ecological tourism site; the first phase of a project on preserving restoring, and bringing into play the values of the Yen The Uprising’s relic sites, which are special national historical relics; the Truc Lam Phuong Hoang Monastery; and the centre for preserving and introducing Vinh Nghiem Pagoda’s woodblocks. In addition, Bac Giang has continued stepping up the preservation and promotion of tangible and intangible cultural values as seen in a wide range of activities, including organising the biennial Quan ho and Chau van singing festivals; opening Then, Soong Co, and Sinh Ca singing classes and clubs; and providing training in the ancient Quan ho folk songs. The province will also facilitate the development of 18 community-based tourism sites in the 2020-2025 period, according to the provincial Department of Culture, Sports and Tourism. The move aims to conserve and bolster local cultural values and capitalise on the potential of tourism and local landscapes as well as improve people’s education, alleviate poverty and hunger, create jobs, and attract more tourists. Community-based tourism brands have been built for Ven village in Yen The district and Na O village in Son Dong district while the Tay Yen Tu tourism brand has also taken shape, thereby helping to introduce the special values of the local culture and people and the Truc Lam Yen Tu Buddhist sect to domestic and foreign visitors. Bac Giang has set a target of community-based tourism sites and orchards being capable of welcoming at least 1 million holidaymakers a year by 2025, including 10,000 foreigners. Tourism revenue is expected to hit 450 billion VND (19.57 million USD) at that time. Bac Giang is applying itself to making considerable improvements in community-based tourism and strongly reforming and applying digital technologies to tourism promotion, said Director of the provincial Department of Culture, Sports and Tourism Tran Minh Ha. Businesses seek to penetrate deep into Russian market Vietnamese enterprises have been advised to conduct
thorough market research through trade promotion activities ahead of
introducing their products to Russia, according to industry insiders. Despite being hit by the adverse impact caused by the COVID-19 pandemic, agro-forestry-aquatic exports to the Russian market during the initial seven months of the year surged by 34.2% to US$323.26 million, of which seafood, fruit and vegetables, cashew nuts, pepper and rubber exports increased by 66%, 47.6%, 59.76%, 71.3%, and 230.8%, respectively. Deputy Minister of Industry and Trade Do Thang Hai says Vietnam is currently the largest supplier of coffee to the Russian market, accounting for 31.2% of their imported coffee market share. Nguyen Thi Mai Anh, deputy director of the Hanoi Investment, Trade and Tourism Promotion Center, emphasised that several local farm produce such as mangoes, pomelos, and dragon fruit have penetrated Russia’s retail chain, adding that the move has created fresh opportunities for other advantageous Vietnamese products to enter the European market in the near future. Although local goods have been able to access the Russian market, economic experts say that in order to increase the export turnover of advantageous products, Vietnamese firms need to carefully study the market through promotion. Regina Budarina, vice chairwoman of the Russia - Vietnam Friendship Association (RVFA), has recommended that local firms ramp up trade promotion activities by regularly organising trade fairs and seminars to introduce Vietnamese brands to Russian consumers, while simultaneously limiting the export of raw materials to this market. She went on to emphasise the need to set up additional commercial offices for businesses from both sides in order to share their respective experiences. A representative of Russia’s X5 Group Tatiana Aptel reveals that with more than 17,352 convenience stores across the Russian market, the group is now keen on stocking Vietnamese products, such as fresh food, tropical fruit, dried fruit, and seafood. Nguyen Thi Thanh, a representative from Vietnam Private Business Association, states that the association will host additional trade exchanges as it strive to help businesses of both sides gain greater insights into each other’s market moving forward. Foreign investors remain optimistic about Vietnam’s economy: official Despite serious impacts of the COVID-19 pandemic, foreign investments in Vietnam in the first nine months of 2021 rose, showing investors' trust and optimism about the country’s socio-economic recovery and development in the coming time, Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc has said. This also affirms that Vietnam continues to be a safe, attractive and potential destination for foreign investors, Ngoc told the Vietnam News Agency (VNA). As of September, the nation had 34,141 valid investment projects, with a combined capital of 403.19 billion USD. However, the pandemic is negatively affecting production and business activities of enterprises, including foreign-invested ones, and making it difficult for foreign investors to explore investment and business opportunities in Vietnam. Acknowledging this fact, over the past time, the Government, the Prime Minister, ministries, sectors and localities have made efforts and taken drastic measures for the highest goal of effective pandemic prevention and control, and effective support for production and business of enterprises. The business community, including FDI enterprises, has joined hands with the Government and local authorities in supporting people in the fight against COVID-19, thus demonstrating the spirit of overcoming difficulties, adapting to the new situation, maintaining production, and creating jobs for labourers. This shows the confidence of foreign investors in Vietnam’s business environment and the effectiveness of solutions taken by the Government and the Prime Minister. The FDI business community has appreciated the Government's response to the pandemic, expressed optimism about Vietnam's economic recovery, and committed to continuing to invest and do long-term business in Vietnam. Ngoc also pointed out several difficulties facing enterprises, including labour shortage, entry restrictions and long-term quarantine, selective investment attraction policy, decreases in global foreign investment inflows, and increasing competitiveness in attracting foreign investment among countries. To make FDI enterprises feel secure, the Government has made recommendations to the Party or submitted to the National Assembly and the National Assembly Standing Committee to promulgate many important policies. The Government has also issued a number of decrees and thematic resolutions on land rent exemption and reduction and on support for enterprises, cooperatives and business households, as well as workers and employers. According to Ngoc, besides negative impacts, the pandemic is also an opportunity for Vietnam to continue perfecting its institutions, improving governance capacity, and the business and investment environment./. PM issues directive on restoration of industrial production Deputy Prime Minister Le Van Thanh on Sunday signed for issuance of a Prime Minister directive on restoring production at industrial production areas amid the COVID-19 pandemic. The directive stated COVID-19 outbreaks have seriously affected production and business of enterprises as well as the health and lives of people. With the concerted efforts of the entire political system, the business community and people, the pandemic has been gradually controlled and pushed back. To remove difficulties for businesses and ensure safe production, the PM asked enterprises to closely coordinate with the People’s Committees of provinces and cities nationwide to reach agreement on plans on production and circulation of goods, travelling and accommodation of workers as well as plans to ensure pandemic prevention and control. The provincial/municipal people’s committees were requested to work with the Ministry of Health to speed up the allocation of COVID-19 vaccines for inoculating workers of enterprises, and consider the resumption of some essential services to serve employees. The Ministry of Health was ordered to promptly issue specific regulations on distancing and COVID-19 testing in production and business at enterprises. The Ministry of Transport was required to guide localities in ensuring the circulation of commodities to well serve the recovery of production and business. The Ministry of Planning and Investment was assigned to provide instructions and guidance to remove difficulties in terms of investment procedures and infrastructure development at industrial and economic zones. The Ministry of Foreign Affairs was asked to work with the Ministry of Public Security and relevant agencies to remove difficulties and hindrances, create favourable conditions for foreign experts and workers to enter the country and undergo quarantine in line with regulations of the Ministry of Health. The Ministry of Finance and the State Bank of Vietnam were requested to review and guide the implementation of policies and regulations on tax exemption and reduction, and issue mechanisms on interest rate and credit support for enterprises in conformity with the Government’s Resolution No 105/NQ-CP dated September 9, 2021. Binh Thuan dragon fruit expected to get protected status in Japan Dragon fruit, a speciality of Binh Thuan province, is expected to be awarded the Protected Geographical Indication (PGI) certificate in Japan. PGI status identifies an agricultural product, raw or processed, of which the quality, reputation or other characteristics are linked to its geographical origin. The PGI applies to agricultural, agro-food and wine products. The application for PGI status in Japan for Binh Thuan province’s dragon fruit has undergone two appraisals and recently finished receiving third-party comments on September 21. Japan will soon make an official decision after an expert council meeting held in late September, Dinh Huu Phi, head of the National Office of Intellectual Property under the Ministry of Science and Technology, was quoted as saying by the Khoa hoc & Phat trien (Science & Development) online magazine. If the application was approved, Binh Thuan province’s dragon fruit would be the second fruit from Vietnam to receive PGI status in Japan, he said. Luc Ngan lychees became the first in March. Phi said the approval of a PGI for Binh Thuan's dragon fruit had a great significance for the export of the dragon fruit, both to Japan and wider markets. Nguyen Phuong Thuy, a lecturer in Oriental Studies at the University of Social Sciences and Humanities, said the PGI in Japan meant that the farm produce was given trademark protection. Farm produce receiving the PGI often had a higher selling price and were popular amongst local people, she said. This is because consumers know that the farm produce is guaranteed by Japan’s Ministry of Agriculture, Forestry and Fisheries. “So, they will trust on the quality of the farm produce and be more willing to buy the farm produce,” she said. Being granted a PGI in a market like Japan would contribute to improving the reputation of Binh Thuan province’s dragon fruit and create favourable conditions for the dragon fruit to enter other foreign markets, she said. Phi said getting the PGI was only the first step. It is important that we maintain the quality of the dragon fruit to meet the Japanese market's demand, he said. For example, after Luc Ngan lychee got the PGI in Japan, the Vietnamese exporter was required to maintain the quality of the lychee. The Japanese side also required the Vietnamese exporter to send a periodic report on the quality of the lychee, he said. Therefore, a set of regulations on management and control of the origin of the farm produce is required to ensure the quality of produce, once awarded the PGI, he added. Data from the National Office of Intellectual Property show that, as of December 31, 2020, Vietnam had received 101 PGIs for its farm produce, including six in foreign countries. The number of Vietnamese PGI's has increased rapidly; in 2007 there were only 10; 91 were awarded over the following 14 years. Binh Thuan province is one of the provinces that produce the most dragon fruit in Vietnam. The province annually harvests nearly 700,000 tonnes of dragon fruit, from 33,482 hectares. The land used in growing dragon fruit has grown by nearly 24 percent, while dragon fruit yield increased by nearly 35 percent between 2016 and 2020. Currently, the consumption of dragon fruit by the domestic market only accounts for about 15 percent of the total yield; 85 percent of dragon fruit production is for export. There are five localities in the province growing dragon fruit that is applied for the PGI in Japan, including Ham Tan district, Ham Thuan Nam district, Ham Thuan Bac district, Bac Binh district and Phan Thiet city./. Steel producer’s exports double in September Vietnam’s largest steelmaker Hoa Phat Group has said its steel exports in September doubled compared to the previous month, hitting a record high of nearly 50,000 tonnes. Its major markets included the US, European and Southeast Asian nations. In the first nine months of 2021, Hoa Phat shipped over 273,000 tonnes of galvanised steel sheet abroad, rising 2.6-fold against the same period last year. The amount made up 64 percent of the total steel sheets sold in the period. Hoa Phat was among the five largest steel sheet producers of Vietnam, holding about 6.5 percent in the market. This year, its affiliate Hoa Phat Steel Sheet Company has bolstered exports to expand its coverage in world’s leading consumption markets, including the US, Mexico, European nations and the UK, especially ones with stringent origin tracing requirements./. Vietnamese rice price increases in domestic, foreign markets Rice prices in the Mekong Delta region continued to increase slightly in the past week, according to Vietnam Food Association. Specifically, the highest price of summer-autumn unhusked rice at the field is 5,100 VND (22 US cents) per kilo, an increase of 100 VND compared to the average price is 4,950 VND per kilo. Five-percent broken rice is sold at 9,400 VND per kilo at the highest, up 186 VND against the normal one. Statistics from the Institute of Policy and Strategy for Agriculture and Rural Development showed that the price of unhusked rice remains stable in Soc Trang province with Dai thom 8 is an exception. This type of rice is sold at 7,300 VND per kilo, a decrease of 200 VND per kilo. Other localities in the Mekong Delta also saw the price of unhusked rice unchanged. Together with an increase of domestic price, the export price of rice rose to a two-and-a-half-month high on September 30 in the context of rising domestic demand and increased purchasing costs. The export price of 5 percent broken rice stood at 425-430 USD per tonne, the highest level since mid-July, compared to 415-420 USD per tonne in the previous week. Traders said demand is growing in the country as the government buys rice from farmers for reserve, leading to higher domestic prices. However, the volume of rice exports still decline. Vietnam shipped abroad 4.5 million tones of rice between January and September, a year-on-year decrease of 9.5 percent. The rice shipment in September alone are forecast at 530,000 tonne. Meanwhile, India's export price of rice down as the rupee weakened, despite heavy rains in the country raising concerns about rice production. The price of India's 5-percent broken parboiled rice has fallen to between 358-363 USD per tonne from 360-365 USD per tonne in the previous week. An exporter from India’s Andhra Pradesh state said that heavy rain for the past several days in the eastern and southern states may affect the country's early sowing. The price of Thailand's 5-percent broken rice was traded at 385-386 USD per tonne compared to 380-386 USD per tonne in the previous week. Traders said the demand has improved slightly, but expensive shipping costs remain an obstacle for exports of rice. In Bangladesh, domestic rice prices remained high despite record summer output and large volumes of rice imports./. Vietnam develops rural tourism through digital transformation Vietnam is taking measures to develop rural tourism through digital transformation, as the effective development of rural tourism will contribute to turning tourism into a spearhead economic sector and promoting sustainable new-style rural area building. The Ministry of Agriculture and Rural Development and the Ministry of Culture, Sports and Tourism held an online forum to promote rural tourism products through digital transformation on October 2. The development of rural tourism in the National Target Programme on New-style Rural Development in the 2021-2025 period is identified as one of the driving forces to create jobs, raise people's incomes, and promote rural economic structure shift; and helps preserve traditional cultural values and protect the environment, heard the forum. According to Le Ba Ngoc, Vice Chairman of the Vietnam Handicraft Exporters’ Association (Vietcraft), rural and ecological tourism accounts for about 10 percent of tourism in general, and generates about 30 billion USD in revenue per year globally. In addition, the annual growth rate of rural tourism is from 10-30 percent, while that of traditional tourism is only 4 percent. Vietnam currently has three types of rural tourism, which are community-based tourism, agricultural tourism and ecotourism. The country has about 365 rural tourist spots and more than 2,000 traditional craft villages with potential for tourism. Digital transformation in rural tourism will help attract more visitors, assist tourists to prepare their trips more easily, provide better services and understand customer behaviours. To develop rural tourism, Ngoc proposed allowing cooperation with international organisations to promote Vietnam's rural tourism products, allowing Vietcraft to coordinate with the Ministry of Agriculture and Rural Development and provinces to popularise rural tourism products through digital transformation, and building a national database of tangible cultural values and fees for tourism development of 54 ethnic groups in Vietnam to achieve the goal of 50 percent of traditional craft villages participating in the rural tourism value chain by 2025./. Vietnam Airlines’ fleet ready to take off again The national flag carrier Vietnam Airlines is finalising steps to get its fleet ready to return to the sky when many domestic flights are to be resumed in early October. With top priority put on safety, Vietnam Airlines has made careful technical examination and maintenance on the airplanes, which have been kept at airport without operating for months, before taking off. Special attention has been paid to ensuring smooth and safe operations of the aircraft’ engines to ensure utmost safety of flights. Meanwhile, Vietnam Airlines will continue to strictly apply pandemic prevention and control measures throughout the flights. All land staff as well as pilot and crewmembers of Vietnam Airlines have been fully vaccinated against COVID-19. According to the airline, its fleet is ready for flights./. Quality workforce – “bottleneck” of support industry firms The shortage of high-quality workforce is a “bottleneck” faced by domestic support industry enterprises, said economists. Firms operating in the support industry now account for nearly 3.4 percent of all those working in the manufacturing and processing sector. They generate jobs for over 600,000 workers and generating over 900 trillion VND in revenue, or 8 percent of the workforce and about 11 percent of the total revenue of the manufacturing and processing industry, the Ministry of Industry and Trade (MIT) reported. Among spare part manufacturers in Vietnam, many are capable of producing mold of various kinds, motorbike, bicycle and mechanical spare parts, electronic cable lines, plastic and rubber products, and tyres. Some of them are supplying for not only domestic firms but also foreign investors in the country. Their products are also exported worldwide. Over the past years, the Government along with ministries, agencies and localities have issued a host of policies and mechanisms to develop the support industry. In Resolution No.115/NQ-CP issued by the Government last year, a number of detailed measures were laid out to develop the industry till 2025 and 2030. The MIT also held regular business-to-business meetings to connect domestic and foreign firms together in the country. At the Vietnam – Japan teleconference on support industries held in June this year, 21 Vietnamese firms had a chance to link up with 48 Japanese counterparts. Akutsu Michio, member of the Japan Association of International Business Consultants, said productivity of the Vietnamese firms in the field remains low, adding that they must meet demand for regular supply, because when just a part out of thousands of components is missing, the whole production line will be suspended. To improve their supply capability, Vietnamese support enterprises are advised to attract high-quality workforce apart from enhancing output and quality. Boosting the development of the support industry is one of the important solutions for Vietnam to improve the quality of the economy, ensure sustainable development, avoid the middle income trap and enhance the country’s capacity of attracting foreign investment. The efforts are also expected to encourage and assist domestic firms to join deeper into the supply chain of foreign-invested companies as well as the global supply chain. Especially in 2025, the domestic support sector is expected to meet 45 percent of the basic demands for domestic production and consumption with about 1,000 businesses capable to directly supply supporting products to assembling companies and multinational groups in the Vietnamese territories. With the same purpose, in late 2020, the Ministry of Industry and Trade launched the Vietnam Technology Advice and Solutions from Korea Centre (VITASK) and a mold technology centre. The establishment of these facilities showed the desire to boost the growth of the support industry in a strong manner as well as promote cooperation and investment to enhance the capacity of Vietnamese firms in engaging deeper into the global supply chains, meeting the demand for seeking high quality human resources or promising partners from the Republic of Korea in Vietnam. Experts held that the Industry Agency under the Ministry of Industry and Trade needs to expand technical support centres across the country, while holding activities to assist industrial production firms as well as relevant industrial service providers. Such centres will not only focus on introducing technologies and supporting businesses in accessing advanced technologies through international cooperation and the Government’s policies but also help them in research and development activities, creating new added values for domestic supporting products. So far, Vietnam has engaged in many free trade agreements, including the Regional Comprehensive Economic Partnership (RCEP). Therefore, the demand for cooperation and partnership among domestic and foreign firms is very high, along with the demand to develop investment and production./. Retail, service sales up 6.5 percent in September The total retail sales of consumer goods and services in September increased 65.5 percent against August as production, business and service activities resumed in some localities after the COVID-19 is put under control. According to the Ministry of Industry and Trade (MoIT), due to the COVID-19 pandemic, the country’s total retail sales and services revenue in the first nine months of this year hit 3.336 quadrillion VND (148 billion USD) and 7.1 percent year-on-year decrease. Retail sales of goods in the period was estimated at 2.779 quadrillion VND, accounting for 82.54 percent of total retails sales of goods and services and a decline of 3.38 percent compared with last year’s figure. Revenue from accommodation and catering services reached 279.4 trillion VND, down 22.14 percent year-on-year. Revenue from tourism and other types of services obtained 4.63 trillion VND and 303.97 trillion VND, fell 64 percent and 19.3 compared with the same period last year. In the coming months, the Ministry will implement some measures including removing difficulties, quickly resuming production and business activities, especially making use of high demand for goods at the year-end to offset standstill over the past months. The Ministry will use opportunities from free trade agreements and remove obstacles to penetrate into new markets. Online trade promotion and business matching activities will be strengthened to push up the consumption of goods, it said./. Agriculture enjoys trade surplus despite COVID-19 impact Despite the negative impact caused by the COVID-19
pandemic, Vietnam’s agricultural sector raked in US$35.5 billion from exports
during the opening nine months of the year, a rise of 17.7% year on year,
according to the Ministry of Agriculture and Rural Development (MARD). The agricultural sector enjoyed a trade surplus of more than US$3.3 billion over nine months, a bright spot in the overall economic picture amid the COVID-19 pandemic, the MARD says. Most farm products recorded strong export growth, such as coffee, rubber, fruit and vegetables, pepper, cashew nuts, cassava and cassava products, livestock products, pangasius, shrimp, wooden product, rattan, bamboo, sedge carpet, and cinnamon. Notably, several export products obtained high growth in both volume and value, including rubber up 17.1% in volume and 52.7% in value, cashew nuts 16.6% in volume and 14.8% in value, and cassava and cassava products up 12.9% in volume and 27.7% in value. The Vietnam Food Association reports the country exported 122,000 tonnes of rice over the past week, marking an increase of 3.39% compared to the previous week, while Thailand and Pakistan only exported 157,000 tonnes and 95,000 tonnes, respectively. In face of price competition from regional peers, Vietnamese export price of 5% broken rice remains stable at between US$428 - 432 per tonne, while that of Thailand's 5% broken rice stands at US$383 - 387 per tonne. Nguyen Thi Huong, general director of the General Statistics Office, says agriculture proves to be a key economic sector that has supported the ailing economy badly affected by the COVID-19 pandemic over the past months. Meanwhile, Deputy Minister Phung Duc Tien emphasised that as an important pillar of the national economy, the agricultural sector have set its sights on an export target of over US$44 billion this year. Steel producer’s exports double in
September In the first nine months of 2021, Hoa Phat shipped over 273,000 tonnes of galvanised steel sheet abroad, rising 2.6-fold against the same period last year. The amount made up 64% of the total steel sheets sold in the period. Hoa Phat was among the five largest steel sheet producers of Vietnam, holding about 6.5% in the market. This year, its affiliate Hoa Phat Steel Sheet Company has bolstered exports to expand its coverage in world’s leading consumption markets, including the US, Mexico, European nations and the UK, especially ones with stringent origin tracing requirements. Ca Mau to focus on sea-based economic development Endowed with a 254-km coastline and an abundance of aquatic resources, the southernmost province of Ca Mau is focusing on the development of the marine economy. The aim is to have the sector contribute about 30-35 per cent of the province’s total budget revenue by 2030. By that time, the average per capita income in coastal areas will be higher than the province’s average per capita income, which is expected to be about US$3,320 in the 2021-25 period and about $4,500 – 4,700 in the 2026-30 period, according to provincial authorities. The province aims at becoming one of the localities in the Mekong Delta region with strong and sustainable sea-based economic development. It will develop the sector towards modernisation and as a driving force for the province’s socio-economic growth. The living standards and cultural and spiritual life of people in coastal districts, communes and towns will continue to improve, and marine and island resources will be managed and exploited appropriately and sustainably. In addition to investing in electricity, fresh water, healthcare and schools, the province will continue to invest in the transport sector to ensure daily connections from the mainland to the island clusters of Hon Khoai and Hon Chuoi. Total seafood output is expected to increase from 3.3 million tonnes in the 2021-25 period to 7.1 million tonnes in 2030. This would increase seafood export revenue from $5.65 billion in the 2021-25 period to $7 billion in the 2026-30 period. The province would lead the country in terms of the number of seafood processing plants and shrimp export revenue. The province has identified a number of important breakthroughs to realise its targets as well as boost marine economic development in the future in line with its potential and strengths. Specifically, the province will focus on developing Song Doc and Nam Can urban areas into grade-III urban centres by 2025, with Song Doc urban area to become the province’ s services, trade and marine economic centre. Besides developing a robust marine economic sector, the province will promote industrial development, especially renewable energy, ecotourism, sea tourism, fishing and aquaculture. According to the provincial People’ Committee, the province has faced difficulties developing infrastructure in coastal areas due to limited local resources, increasingly serious climate change impact, and coastal erosion, among others. Taking advantage of capital sources in the coming time, the province will focus on investing and building infrastructure systems in coastal areas, including in coastal urban areas, roads to connect coastal corridor traffic routes, sea transport routes connecting Ca Mau with economic centres in the Mekong Delta region, as well as economic zones and island clusters, to create favourable conditions for marine and island economic development. As the only locality with three sides facing the sea, a coastal protection forest stretching from east to west, and clusters of islands and one of the country’s four key fishing grounds, Ca Mau has favourable conditions for fostering marine economic development. Automation start-up wins inaugural Qualcomm Vietnam Innovation Challenge Rostek, which provides intelligent automation and digital transformation solutions to the industrial sector, has won the first prize in the first Qualcomm Vietnam Innovation Challenge. Its autonomous guided vehicles and fleet management system offer a high-tech, digitised solution for moving goods around warehouses and factory floors. The first runner up was AIOZ, a deep-tech start-up that researches and develops AI technologies for mobile robotics systems, smart cities and others, won the second prize. AOIZ’s BeetleBot indoor delivery robot uses artificial intelligence and a voice interface to deliver things like food or parcels in indoor settings, and is well suited for use in hospitals during COVID-19. BusMap was the second runner up. BusMap’s bHub AI-enabled camera system lets users monitor various safety factors in driving, and has strong on-device image recognition and monitoring capabilities to help ensure both driver and passenger safety. They won cash prizes of US$100,000, $75,000 and $50,000. Launched last year, a jury of experts chose nine shortlisted teams based on product value, technology differentiation and localisation, intellectual property opportunities or history, and business models to move to the incubation stage. Each received grants of up to $10,000 and reimbursements of up to $5,000 for filing a maximum of two patents each in the incubation stage, which also included business training in a range of topics such as operations, customer development, competitive analysis, product management, global market entry strategy, mastering the pitch, intellectual property, and fundraising. Alex Rogers, president, Qualcomm Technology Licensing & Global Affairs, said the contest is designed to encourage start-ups to come forward with innovative ideas and demonstrate the strength and creativity of Viet Nam’s start-up eco-system. “These three finalists impressed the jury, and we believe they have great potential in helping the world connect through innovation and collaboration, which is absolutely necessary in building and sustaining a prosperous future with an innovation-driven economy.” Deputy Minister of Science and Technology Tran Van Tung said: “Viet Nam is entering a new era of 5G, AI, cloud computing, and diverse IoT technology applications. “Programmes such as the Qualcomm Vietnam Innovation Challenge provide Vietnamese start-up companies the support they need to become members of the global business eco-system. We would like to applaud the three finalists and encourage all of our local start-ups to continue to demonstrate f Viet Nam’s ability for accelerated innovation.” Qualcomm said applications for next year’s QVIC are open. AI Hack Bootcamp 2021 announced in HCM City AI Hack Bootcamp 2021 - a programme that seeks AI solutions for e-commerce - was launched at a ceremony jointly held by the Saigon Hi-tech Park Incubation Centre and the Vietnam E-Commerce Association on October 1. It aims to promote the research and development of AI solutions and products, attract promising projects and form a community of outstanding AI developers. The annual programme will provide support for and connect AI start-ups, projects solutions and products that would be utilised in e-commerce, focusing on coaching and mentoring. After the eight weeks of training and mentoring, the programme will move to its second phase when about five to seven projects will be incubated for one to three years, starting from late December this year. Entries should be submitted to organisers from now to December. Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes |
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