VIETNAM BUSINESS NEWS OCTOBER 14
15:54
Ministry of Transport agrees to resume two more
domestic air routes
The Ministry
of Transport has decided to restart flights on two domestic routes, Ho
Chi Minh City-Ca Mau, and Hanoi-Dien Bien, during the pilot period which last
until October 20. On October
8, the ministry approved the pilot reopening of several domestic air routes
starting October 10. From October
10-20, there will be 38 flights, including 13 flights from HCM City to
Binh Dinh, Da Nang, Hue, Khanh Hoa, Nghe An, Phu Yen, Quang Binh, Quang Nam,
Thanh Hoa, Hai Phong, Phu Quoc, and Gia Lai, Rach Gia with one return flight
a day. From Hanoi,
there will be one return flight to HCM City and Da Nang every day. The
Hanoi-Can Tho route will be flexibly exploited at the request of competent
agencies. There will
be a return flight on each of Da Nang-Can Tho, Da Nang-Dak Lak, Hanoi-Can Tho
and Thanh Hoa-Lam Dong routes a day. Passengers
must be fully vaccinated with the last dose administered at least two weeks
before the flight; or if they are COVID-19 patients who have recovered within
six months before departure. All passengers are
also required to take COVID-19 tests 72 hours before their flights
with negative results. During the
pilot implementation, the MoT will make a preliminary assessment and
coordinate with localities for further adjustments./. Vietnam completes anti-dumping probe into corn syrup from China,
RoK The Ministry
of Industry and Trade (MoIT) has completed an anti-dumping investigation into
high-fructose corn syrup (HFCS) imported from China and the Republic of
Korea, according to the MoIT’s Trade Remedies Authority of Vietnam (TRAV). The
investigation was launched in June last year following a petition from a
number of domestic HFCS producers filed with the ministry in May proposing
anti-dumping measures imposed on the HFCS originated from the two countries. During the
probe, the MoIT has collected information and views of point from concerned
parties, while carefully evaluating the impacts of the imported HFCS on the
local industry and dumping margins of the Chinese and Korean producers in
accordance to regulations of the World Trade Organisation (WTO), the Law on
Foreign Trade Management and relevant legal documents. The ministry
determined that the HFCS originated from China and the RoK are being dumped
in Vietnam and the domestic industry has been suffering significant losses.
However, there is no obvious causal relations between the dumping acts by the
Chinese and Korean exporters and the damage of the domestic industry. Basing
oneself on Vietnam's legal regulations on trade defence and the WTO's anti-dumping
agreement, as well as opinions from relevant parties, including domestic
producers, the MoIT decided to terminate the investigation. The MoIT
said it will coordinate with stakeholders to continue keeping a watch on the
imports of HFCS into Vietnam, so as to come up with proper measures to
protect the legitimate rights of Vietnamese producers and consumers./. Vietnamese export rice price rises sharply again Vietnam’s
export rice prices have increased sharply once again to surpass those from
regional peers such as Thailand, India, and Pakistan, according to the
Vietnam Food Association (VFA). The
country’s 5% broken rice is currently on sale at between US$433 and US$437
per tonne, marking an increase of US$40 per tonne from the export price seen
in the middle of August. Furthermore,
Thailand's 5% broken rice is currently at between US$384 and US$388 per
tonne, a drop of US$21 per tonne compared to mid-August. Elsewhere, Indian
rice remains at between US$368 and US$372 per tonne and Pakistani rice
at between US$378 and US$382 per tonne, a rise of US$25 per tonne. In the
segment of 25% broken rice, Vietnamese rice export price also stands at far
higher than that of its competitors, with the price hovering at US$403 per
tonne on October 11, while Thai rice was traded at US$373 per ton, and both
Indian and Pakistani rice were sold at US$338 per tonne. According to
a representative of a rice business based in the Mekong Delta region, this
increase in the Vietnamese rice export price can largely attributed to the
fact that the Government has increased its purchase of national reserves,
coupled with the rising demanding in the global market since the beginning of
September. According to
figures given by General Department of Vietnam Customs, Vietnamese rice
exports in September reached over 593,600 tonnes of rice worth over US$293.1
million, an increase of 19% in volume and 20.5% in value. The country
also exported 4.57 million tonnes of rice worth over US$2.41 billion during
the nine-month period, a drop of 8.3% in volume and 1.2% in value
against the same period from last year. FDI flow on right path Despite
being hurt by the pandemic, Vietnam is still one of the few regional silver
linings when it comes to maintaining the confidence of overseas investors. The costs
were not unveiled, but both sides expect the centre to be up and running
before the end of 2021. As announced
at a ceremony last week, the Genetica centre at the NIC building will be
designed along with the same standards as its US-based lab, with the most
rigorous set of standards for genetic testing in the world. Accordingly,
Vietnam will be one of very few Southeast Asian countries running CAP and
CLIA-standard genetic testing laboratories in order to create new discoveries
regarding genetic diseases, developing gene therapy regimens, and researching
new medicines based on Asian and Vietnamese genomes. It will also focus on
targeted healthcare, personalised medicine, and precision medicine. Originating
from San Francisco, Genetica’s plans in recent years have tilted towards
Vietnam. In 2018, it looked set to expand to the Southeast Asian market via
Singapore as its key destination. However, those plans changed totally after
Vietnamese-born founder Cao Anh Tuan met with MPI Nguyen Chi Dung in the
United States that year. Tuan is one
of an estimated 100 Vietnamese overseas scientists worldwide who were invited
to return to Vietnam to participate in the launching ceremony of the Vietnam
Innovation Network three years ago, to enable the country to keep pace with
the Industry 4.0 era. The experience as well as the support of leaders
touched Tuan and helped steer his plans towards Vietnam. Davipharm –
one of the leading domestic manufacturers of high-quality generic drugs and a
member of Adamed Group – moved a step closer last week to realising its goals
in Vietnam by announcing its certification of EU-GMP quality standards. The
EU-GMP certification is the most important milestone in the company’s
strategy of raising standards of drug production. CEO Michal
Wieczorek said, “With $50 million investment, of which over $10 million has
been spent upgrading our plant in the southern province of Binh Duong and the
improvement of quality processes, we have committed to contributing to the
local economy not only by paying taxes and creating jobs, but also by
providing high-quality medicines at affordable prices to local patients, thus
supporting the Ministry of Health (MoH) to optimise the spending on drugs.” He added
that with further expansion of the business by developing exports and backing
the improvement of Vietnam’s trade balance, Davipharm hopes to be emblematic
of future foreign investment in Vietnam. “Despite the
pandemic challenges, we managed to pass the virtual EU-GMP audit. I believe
that EU-GMP qualified factories are the key growth drivers in Vietnam, and the
only way to develop the local company. With this certification, we are ready
to achieve our other ambitious goals,” he added. There are
also some challenges posed by the government administration to pharma
businesses. Namely, a significant number of marketing authorisations (MAs) is
going through the renewal procedure as required by laws. However, besides the
regulatory delays, there are some administrative requirements impossible to
meet, especially during the pandemic period. Wieczorek
has appealed to the government to enable the extension of the MAs, and to the
MoH to streamline and simplify the drug registration procedures. “If the
government creates an attractive and welcoming investment environment for the
pharmaceutical industry, I’m convinced that many more companies will follow
in our footsteps. But we need incentives, not obstacles,” summarised
Wieczorek. Also last
week, Japan’s Fujikin Inc. held a groundbreaking ceremony for a research and
development (R&D) centre in Danang Hi-Tech Park. With an investment
capital sum of $35 million, this is the first R&D centre developed by
Fujikin in Vietnam. The
project’s purpose is to speed up scientific R&D in fields such as
robotics, drones, nanotechnology, hydrogen energy equipment, water
purification, wireless power transmission, and novel material development. Following
the inauguration, Fujikin plans to bring the R&D centre into operation
and begin manufacturing in the second quarter of 2022, marking the company’s
20th year in the country. To provide enough high-quality staff for the
project, the company has negotiated a human resources training agreement with
the Danang College for Science and Technology. Earlier in
October, Nestlé Vietnam announced an extra $132 million investment in its
Nestlé Tri An factory in the southern province of Dong Nai to increase its
processing capacity of high-quality coffee lines. This investment has brought
the total foreign investment value of Nestlé Vietnam to nearly $730 million. According to
the Ministry of Planning and Investment, Vietnam wooed $22.15 billion in the
registered foreign direct investment in the first nine months of 2021, up 4.4
per cent on-year. Securities companies rush to promote margin lending The recent
flourish of the stock market is pushing demand for margin loans, thus
securities companies are preparing capital increases to meet the borrowing
demand of investors. Although the
number of margin loans peaked in June, experts from MB Securities Joint Stock
Company (MBS) forecast that securities companies will promote margin lending
due to improved liquidity and an increased number of fresh investors. Securities
firms are seeking ways to extend credit in the form of corporate bonds and
margin lending, with more flexible benefits than bank credit. According to
FiinGroup Joint Stock Company, margin loan value reached over VND126.3
trillion (US$5.6 billion) at the end of the second quarter of this year, but
accounting for only a small part of the current market liquidity. However, the
gradual increase in margin since the second quarter of 2020 shows the
expectation of securities companies towards the market. According to
FiinGroup's estimates, the total capital securities companies expect to
increase is VND18.8 trillion in 2021. Since the beginning of this year, they
have mobilised nearly VND12 trillion. This will allow securities companies to
promote margin lending activities, thus increase profits. Thanh Cong
Securities Joint Stock Company (TCI) recently announced a plan to pay
dividends in shares at the rate of 4 per cent, and at the same time offered
shares to existing shareholders at the rate of 100 per cent, in order to raise
charter capital to over VND1 trillion. Margin
lending is increasingly contributing to the revenue of securities businesses.
TCI estimates that revenue and profit before tax in the first nine months of
2021 will be about VND240 billion and more than VND175 billion, respectively,
exceeding the plan set at the beginning of the year by 129 per cent and 175
per cent, respectively. As for SSI
Securities Joint Stock Company, the margin loans as of September 30 reached
VND18.1 trillion, an increase of VND2.6 trillion compared to the previous
quarter, becoming the brokerage with the largest loan balance in the market. As of June
30, SSI lent nearly VND16.2 trillion, of which VND15.5 trillion was for
margin lending. Revenue from the 9-month margin lending segment in 2021 has
increased more than 4 times. According to
MB Securities Co, in order to compete with rivals and attract customers, many
securities companies have reduced lending interests and transaction fees. In 2019,
interest rates for margin lending usually fluctuated between 12-14 per cent
per year, but fell to below 12 per cent in 2020 and fluctuated around 10-12
per cent in 2021. At present, most securities are applying low transaction
fees, around 0.2 per cent, even some securities companies apply zero-fee such
as Pinetree Securities Joint Stock Company, AIS Securities Joint Stock
Company or VPS Securities Joint Stock Company. Trade surplus reaches US$360 million in September Vietnam
recorded a trade surplus of US$360 million in September, according to the
latest statistics compiled by the General Department of Customs. Over the
course of the opening nine months of the year, total Vietnamese export-import
turnover reached US$484 billion, with a deficit standing at over
US$2.5 billion. The export
figure from the review period showed an annual increase of 18.8% to reach an
estimated US$240.6 billion. Meanwhile, import value picked up by 30.8%
on-year to reach US$243.2 billion. Furthermore,
commodity exports have shown signs of slowing down since August. However, in
September the growth of total export turnover in this
period stood at much lower. During the reviewed
period, exports still witnessed a sharp increase, being a major
contributor to GDP growth in the three quarters of the year. Vietnamese
exports enjoy favourable conditions thanks to opportunities from free trade
agreements coupled with growing market demand during the end of the year,
especially for key products. FTA helps promote Vietnam – EU trade, investment ties: Gov’t
report Trade
exchange and investment between Vietnam and the European Union (EU) has
achieved positive outcomes since the enforcement of the EU-Vietnam Free Trade
Agreement (EVFTA) in August 2020, despite COVID-19 challenges, according to a
Government to be submitted to the Natiional Assembly. The total
import-export turnover between the two sides witnessed a surge of 11.9% to
reach US$54.6 billion against the same period from last year. In detail,
Vietnam’s exports to the EU rose 11.3% year on year to US$38.5 billion, while
its imports from the EU bloc also increased 12.4% year on year to US$16.2
billion. The opening
seven months of 2021 alone saw their two-way trade expanded 18% to US$32.4
billion, including US$22.8 billion worth of Vietnamese exports, up 17% year
on year, and US$9.6 billion worth of its imports, up 18.9%. As of
September, the EU had 2,242 valid projects valued at US$22.24 billion in
Vietnam, thereby accounting for 6.57% of project numbers and 5.58% of total
investment capital by countries and territories in the Vietnamese market. Most
notably, a number of large EU corporations are operating effectively in the
country, including Shell Group of the Netherlands, Total Elf Fina of France
and Belgium, Daimler Chrysler of Germany, in addition to Siemens and Alcatel
Comvik of Sweden. Typically,
their investment projects focus on high-tech and service industries, clean
energy, supporting industries, food processing, high-tech agriculture, and
pharmacy. In the
medium and long term, FDI inflows from the EU into the country are projected
to increase significantly with several high-quality projects, according to
the Government report. However, the
issuance rate of certificate of origin (C/O) for a number of key Vietnamese
export products, such as textiles, coffee, iron and steel to EU member states
remains relatively modest. For
instance, the C/O issuance rate for textile products in the first seven
months of this year stood at approximately 15.7%, while the rate for both
coffee and iron items was at 9%. At present,
only 38 out of 63 provinces and cities nationwide conduct import-export
activities with EU member states. Reference exchange rate down 4 VND The State
Bank of Vietnam set the daily reference exchange rate at 23,177 VND/USD on
October 14, down 4 VND from the previous day. With the
current trading band of +/- 3 percent, the ceiling rate applicable to
commercial banks during the day is 23,871 VND/USD and the ceiling rate 22,482
VND/USD. The
opening-hour rate at commercial banks saw increases. At 8:30 am,
Vietcombank listed the buying rate at 22,600 VND/USD, unchanged from October
13, and the selling rate at 22,860 VND/USD, up 10 VND. Meanwhile,
BIDV raised both rates by 5 VND, listing at 22,660 VND/USD (buying) and
22,860 VND/USD (selling)./. Quang Ninh to hold 50 tourism stimulus events by year’s end
Quang
Ninh province plans to organise 50 events and activities to stimulate travel
demand and promote tourism between now and the end of this year. It has also
completed a provisional set of criteria for COVID-19 safety evaluation for
tourism based on which a safe travel model will be devised to minimise
pandemic-related risks to locals and visitors. Quang Ninh
identified safety and risk control as the prerequisite for the local
administration, travel businesses, and residents to succeed in implementing
the tourism recovery plan because only when safety is ensured can tourism
activities be resumed. Quang Ninh
is striving to attract 1.9 - 2 million travellers in the fourth
quarter of this year. The province
is endowed with natural advantages for sea and island tourism. It has a
coastline of more than 250 kilometres and more than 2,000 islands and islets
which account for two-thirds of the total number in Vietnam. It is home
to popular destinations such as Ha Long Bay, Bai Tu Long Bay, Ha Long Bay
National Park and some islands. In
particular, Ha Long Bay was recognised twice as a World Natural Heritage site
by UNESCO, in 1994 and 2000./. SBV says no to more rate cuts this year Earlier, SBV
had implemented three rate cuts with a total reduction of 1.5-2 percentage
points per annum for regulatory interest rates, 0.6-1 point per year for term
deposits of less than six months and 1.5 points annually for short-term deposits
in priority sectors. As a result, the lending rates were adjusted downward by
around 1 percentage point last year and some 0.55 points in the first half of
2021. Lending
rates have fallen around 0.7 points and deposit rates have declined 0.4
points in the year to date. Credit
institutions have offered loans with lower interest rates compared to that of
the pre-COVID-19 period, with accumulated loans exceeding VND5.2
quadrillion for 800,000 borrowers from January 23 last year to this
September. They had also offered rate cuts and exemptions to some 1.7 million
customers affected by the pandemic with a total outstanding loan balance of
nearly VND2.5 quadrillion. Regarding
credit, the deputy governor said the banking system’s credit rose 7.42%
between the end of last year to October 7 this year, which was 1.94 points
higher than the same period in 2020. The total M2 payment instrument inched
up 5.65% against the end of 2020 and expanded 11.56% compared to the same
period last year. Tu said the
results were positive given the fact that many provinces and cities,
including the two major cities of Hanoi and HCMC, enforced the stay-at-home
mandate for several months under the prime minister’s Directive 16. As for
proposals to relax lending conditions, the SBV official said reducing the
loan quality and conditions would not ensure the safety of the banking
system. He said the central bank will create favorable conditions to expand
credit if necessary but will not ease lending conditions. Failing to overcome 1,400 threshold, VN-Index puts an end to
7-day rising streak Failing to
overcome the psychological threshold of 1,400 points on Wednesday, the
VN-Index dropped slightly, putting an end to its seven-day rising streak. On the Ho
Chi Minh Stock Exchange, the VN-Index edged down 0.21 per cent to close at
1,391.91 points. The southern market’s index had climbed more than 4.4 per
cent in the past seven sessions. By contrast,
the HNX-Index on the Ha Noi Stock Exchange extended its rally to eight
sessions in a row, rising 0.97 per cent to end at 379.34 points. It has
climbed by more than 6.2 per cent since early this month. Liquidity on
the stock market reached VND19.4 trillion (US$843.5 million), down 21.6 per
cent from the previous session, of which the trading value on the HCM City’s
exchange declined 13.6 per cent to VND17.5 trillion. Foreign
traders continued to offload shares with a net sell value of more than VND500
billion on the southern market. Vinhomes
(VHM) and Masan Group (MSN) were the two stocks pulling the VN-Index most.
MSN dropped 1.7 per cent and VHM fell 1.1 per cent. Other big
losers included Techcombank (TCB), down 1.1 per cent; PV Gas (GAS) and lender
BIDV (BID) each down 0.9 per cent; Petrolimex (PLX) down 2.2 per cent; Bao
Viet Holdings (BVH) down 3.1 per cent; and brewer Sabeco (SAB) down 1.2 per
cent. The VN-Index
could fall steeper without the cushion of Vingroup (VIC) which was up 0.2 per
cent; Mobile World Investment (MWG) up 1.4 per cent; and FPT Corp (FPT), up
0.4 per cent. According to
BIDV Securities Co, the phenomenon of domestic and foreign cash flow
weakening when the market reaches a large resistance level may make VN-Index
continue to move around the range of 1,380-1,400 in the next trading
sessions. However,
analysts at Viet Dragon Securities Co reckoned the market’s positive trend
will not likely change and investors still hold stocks that are on a good
trend, as well as make new disbursement options if there are optimistic
signals from stocks in the watchlist “The
VN-Index struggled between the cash inflow and the profit-taking pressure.
This struggle is a natural result after a rally,” they said in a note. “Overall,
the VN-Index is still in a positive trend in the short term,” they said,
suggesting investors take advantage of the situation to restructure the
portfolio and look for new opportunities in stocks that have a positive
accumulation. EVFTA helps buffer economic downturn impact: The Business Times Given the
COVID-19 epidemic, the EU-Vietnam Free Trade Agreement (EVFTA), which entered
into force in August 2020, has helped to boost two-way trade and buffer the
impact of the economic downturn, according to an article posted on October 13
by The Business Times of Singapore. The article
quoted the European Chamber of Commerce in Vietnam as saying that trade
between Vietnam and the EU amounted to 27 billion USD from January to June
this year, an increase of 18 percent annually and a remarkable achievement in
the midst of a global pandemic. Last month,
the Asian Development Bank (ADB) wrote in a report that it expects Vietnam's
economy to expand 3.8 percent in 2021. Notably, this was a sizable downgrade
from April's estimate of a 6.7 percent growth. This, however, still places
Vietnam above the regional average of 3.1 percent. According to
the article, the EVFTA, the second one that the EU has concluded with an
ASEAN country after Singapore, is not the only major free trade deal that is
driving Vietnam's growth. In the last few years, a string of FTAs have come
into force in Vietnam, including the Comprehensive and Progressive Agreement
for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic
Partnership (RCEP). Officials in Vietnam said this is part of the country's
long-term drive to build a modern and market-oriented economy, and signs show
that this strategy is bearing fruit. The author
continued citing a World Bank report, titled Vietnam: Deepening International
Integration and Implementing the EVFTA, as saying "In the case of
Vietnam, the benefits have been clear in terms of high and consistent
economic growth and a large reduction in poverty levels". The article
concluded that as the coronavirus pandemic subsides and international borders
gradually reopen, Vietnam is eyeing an even greater wave of trade with the
27-member EU bloc. The ADB's outlook for Vietnam's economy in 2022 sees it
returning close to its pre-COVID growth levels at 6.5 percent./. Vietnam persists with pandemic countermeasures, maintains
macro-economy: PM Prime
Minister Pham Minh Chinh on October 13 chaired a webinar discussing
measures to boost post-pandemic economic recovery, flexibly adapt to the COVID-19
pandemic, overcome economic disruption and strengthen locality-to-locality
connectivity. Co-hosted by
the Party Central Committee's Theoretical Council and the Ho Chi Minh
National Academy of Politics, the event was connected between Hanoi and the
Party Committees of 63 cities and provinces nationwide. Participants
said that over the past year, Vietnam has well controlled the pandemic and
maintained socio-economic development. However, the
pandemic remains complicated and unpredictable and Vietnam is facing a wide
range of heavy consequences in all aspects of the socio-economic life, they
said. Leaders of
localities and businesses shared effective anti-pandemic models as well as
experiences in removing difficulties to overcome economic disruptions, towards
achieving the dual goal in “new normal”. Foreign
experts and representatives of international organisations in Vietnam
expressed their optimism about Vietnam’s development prospects. They agreed
with and put forth initiatives to boost economic recovery and flexibly and
safely adapt to the COVID-19 pandemic, saying that policies need to
be built and performed consistently from the central to local levels. In his
conclusion, PM Chinh asked agencies to collect feedback at the event to serve
the building of policies and implementation of measures, towards flexibly and
safely adapting to the pandemic. He stressed
that nobody is safe when others are still contracting COVID-19 and no country
is safe when other nations in the region and the world are still fighting the
pandemic. As the
pandemic will prolong in the country and the region, he asked for continuing
with prevention and control measures, maintaining macro-economic stability,
increasing supply to recover the labour market, and seeking ways to reduce
input costs. The PM said
the Government will continue directing agencies and localities to ensure
social welfare for residents, maintain social safety and order, tackle
difficulties faced by enterprises, develop production and trade in the spirit
of “harmony of interests and sharing of risks”, contributing to the nation's
socio-economic development./. Vietnam, US seek to beef up business, trade cooperation Minister of
Public Security Gen. To Lam held an online meeting with a high-ranking
delegation of the US-ASEAN Business Council (USABC). Lam said
amid the COVID-19 pandemic, the online meeting showed the US private economic
sector’s good will and commitment to maintain and further promote Vietnam-US
bilateral ties in the mutually-beneficial spirit and realising Vietnam’s
priority goals, including digital transformation and sustainable development. He hailed
the US as one of the leading trade partners and importers of Vietnam thanks
to the two governments’ strategic visions as well as active and effective
participation of their private enterprises and organisations, including the
USABC. The
Vietnamese minister added that difficulties faced by US businesses and
foreign production partners in Vietnam due to the pandemic are only
short-term and temporary. He hoped
that the US business community would accompany Vietnam in the spirit of
“harmony of interests”, promptly seize opportunities and seek proper ways to
maintain and develop business and production in the new situation. Ambassador
Michael Michalak, Senior Vice President and Regional Managing Director of the
USABC, spoke highly of development strides in the US-Vietnam cooperative
relations in the recent past. He expressed
his wish that the Vietnamese Government and the Ministry of Public Security
in particular would continue offering favourable conditions for US
enterprises to do stable, long-term business in the country. At the
event, both sides discussed issues of shared concern such as the Law on Cyber
Security, the decree on personal data protection and intellectual property in
a constructive and open manner./. EDF Renewables invests in solar power in Vietnam French
renewable energy producer EDF Renewables has made a significant investment in
SkyX Energy, which is a subsidiary of VinaCapital Group and the owner of
rooftop solar power plant SkyX Solar. Assisted by
the new partnership, SkyX Solar is expected to invest at least 100 million
USD in developing 200 more MWp of solar rooftop electricity within the next
two to three years, serving industrial and commercial customers. Samresh
Kumar, Executive Chairman and CEO of SkyX Solar, said the company currently
has about 100MWp of rooftop solar power under development and operation. The firm
plans to cooperate with industrial parks in Vietnam to exploit hundreds of MW
of rooftop solar power in the coming time, he said, adding that EDF
Renewables’ experience and resources are hoped to boost SkyX Solar’s
expansion quickly. Yalim
Ozilhan, Southeast Asia Regional Director of EDF Renewables, said that
renewable energy sees great potential for development in Vietnam. With the
strength of rooftop solar power solutions globally, EDF is very interested
and wishes to invest in expanding its scope of operations in the market, he
added. In early
2021, the French group sealed a cooperation deal to invest in two wind power
plants in the Central Highlands provinces of Dak Lak./. FDI inflow into Vietnam still on upturn trend
Despite
impacts of the COVID-19 pandemic, the inflow of foreign direct investment
into Vietnam still rose 4.4 percent year on year in the first nine months of
this year to 22.15 billion USD. Specifically,
12.5 billion USD was poured into more than 2,200 newly-licensed projects, up
20.6 percent over the same period last year, while 6.4 billion USD was added
into underway projects, a rise of over 25 percent. Particularly,
Vietnam saw many large-scale FDI projects in the January-September period. Experts say
the result manifested the attractiveness of the Vietnamese market and foreign
investors’ confidence in Vietnam’s capacity in controlling the pandemic and
its economic recovery as well as the effectiveness of measures taken by the
Government to accompany and support businesses./. Hanoi accompanies with investors Hanoi, over
the years, has been one of the leading localities in foreign direct
investment (FDI) attraction thanks to the city’s efforts to accompany with
and support investors. Statistics
from the Hanoi Statistics Office, in September, the capital city granted
licences to three FDI projects worth 5.3 million USD, pushing the total FDI
value in the city in the first nine months to 927 million USD, including
162.6 million USD on 246 new projects and 492.4 million USD added to 93
underway ones. According to
the municipal Department of Planning and Investment, COVID-19 has posed
adverse impacts on foreign investment in Hanoi, causing a drop in the number
of capital. Meanwhile,
difficulties have been seen in the transport of goods from other countries to
Vietnam, while many businesses in industrial parks and clusters have faced
obstacles in carrying labourers from their residence to workplace or applying
the “three-on-site” and “one route – two destinations” models to maintain
their operations. At the same
time, FDI firms have suffered impacts from immigration policies on foreign
experts, the department noted. Since the
beginning of the year, Hanoi has seen the suspension of operation of about
200 FDI companies, mostly small and medium ones. However,
many large forms have still shown effective operations, while many foreign
investors have increased investment in projects in the city. As part of
efforts to deal with difficulties facing investors and creating best
investment environment for FDI businesses, along with preferential policies
from the Government, Hanoi has rolled out various measures to help them
overcome the pandemic. Besides
solutions to ensure safety against the pandemic, the department has given
advice to the city People’s Committee on a number of solutions to assist FDI
firms, including creating favourable conditions for them in administrative
procedures so that they can focus on designing their production plans. Alongside, the
city has directed relevant sectors to take measures to deal with businesses’
difficulties in processing the procedure to receive foreign experts, COVID-19
vaccination and testing, tax, and goods transport. In the
remaining months of the year, the city will concentrate on promoting economic
recovery and development as well as supporting local firms. The
municipal People’s Committee has asked sectors and localities to immediately
built their own recovery and development plans right from October, while designing
criteria of safe adaption to the pandemic and proposing mechanisms and
measures to assist businesses. Administrative
procedures must be simplified to save cost, while online public services
should be expanded to level three and four, thus giving maximum support to
enterprises, asked the committee. The
committee assigned the Department of Planning and Investment to submit
proposal on the organisation of a dialogue with local firms to seek ways to
deal with difficulties facing them, especially those caused by COVID-19
pandemic. Meanwhile,
the city plans to form four working groups to deal with difficulties facing
businesses in different areas, while speeding up the disbursement of
investment in capital construction. In order to
attract more foreign investment and give best conditions for FDI firms to
operate in Vietnam and Hanoi in particular, Do Anh Tuan, Director of the
Hanoi Department of Planning and Investment said that together with cutting
the number of administrative procedures and fostering coordination in the
field, the city will strengthen on-site investment promotion activities and
assist investors in all stages from business registering to project
implementing and settling arising problems. Hanoi will
increase incentives for investors in prioritised sectors, including
technology and supporting industry. Experts held
that COVID-19 has posed impacts to Vietnam and Hanoi in particular, but it
also created opportunities in foreign investment. Solutions
given by the Government, ministries and sectors and the city have shown
efficiency in encouraging economic recovery in the city, they said./.
Changes to break e-commerce stride Operators in
e-commerce are at odds over the impact of a new governmental decree, which
could render the booming e-commerce market more challenging for local and
foreign participants alike. According to
Samuel Son-Tung Vu, partner at law firm Bae, Kim & Lee Vietnam, Decree 85
creates additional barriers for foreign investors in the e-commerce market.
Those who wish to control one or more of the leading e-commerce enterprises
may face difficulties when applying or amending the respective licence. Thus, such
applications shall not only be reviewed by the Ministry of Industry and Trade
(MoIT) but shall also be appraised by the Ministry of Public Security (MoPS).
Furthermore, Decree 85 is silent on the duration for the MoPS to provide
their appraisal opinion, thus issuance of e-commerce licences for
foreign-invested enterprises could be more time-consuming and difficult. Vu added
that the new decree will likely hinder foreign investment activities in
Vietnam, especially for those planning to takeover one of the major
e-commerce platforms. In addition
to these obstacles, overseas enterprises may also face higher costs due to
the requirements to amend and upgrade their respective internal system,
regulations (for example, regulations on operation of e-commerce trading
floors), employee conduct training, and more. “Considering
the size and the number of processed transactions of major e-commerce
platforms, it can be a real challenge to ensure compliance with new
regulations in such short amount of time,” Vu stressed. In one
example, Decree 85 requires e-commerce platform providers in Vietnam to
verify the identity of foreign traders and organisations selling goods on the
platform. Previously, Decree52 only requested foreign sellers to provide such
information to e-commerce platforms but the latter was not obliged to verify
this. With a large number of foreign traders, it can be challenging for
e-commerce platforms to meet the deadline. However,
Filippo Bortoletti, senior manager of International Business Advisory at
Dezan Shira & Associates, told VIR that implementation of Decree 85 will
not hinder the majority of foreign investment into Vietnam’s e-commerce.
“Decree 85 has been under discussion for several years and the main goal of
the new prescriptions is to revise the local legal framework related to
e-commerce to regulate on-demand TV services and the cross-border provision
of such services like Netflix or Spotify.” Thus,
foreign businesses cannot provide cross-border e-commerce services in Vietnam
without registering their activities and establishing a representative office
or appoint an authorised representative in Vietnam. “Another
goal of Decree 85 is to protect local e-commerce players from new entrants,”
Bortoletti said. “Foreign players must comply with market access provisions
according to Decree 85, which means that those controlling one or more
enterprises in a group of five leading enterprises in Vietnam’s e-commerce
shall undergo an appraisal regarding national security matter. This surely
brings uncertainty over market entry for big e-commerce players.” According to
a study conducted by Malaysia’s e-commerce company iPrice Group and US-based
digital intelligence provider SimilarWeb, the e-commerce game is dominated by
foreign e-commerce businesses like Shopee and Lazada, followed by Tiki and
Sendo. These players already have local establishments to support their
business. In this case, they need to comply with the new obligations on
e-commerce trading. “However, as
such provisions are extended to all actors in the market, I think that new
regulations are not providing a clear advantage to local players,” Bortoletti
added. “Decree 85 is filling a gap in the local legal framework related to
cross-border provision of e-commerce services. Now those companies will have
to register their e-commerce activities in Vietnam and establish a
representative office.” According to
Facebook and Bain & Company’s annual Southeast Asia report, Vietnam’s
e-commerce sector is expected to reach $12 billion in 2021. The market ranks
second in size in the region after Indonesia, and is estimated to grow 4.5
times to reach $56 billion by 2026. “For
domestic players, with the new barriers on e-commerce license, they may avoid
hostile takeovers by foreign investors,” Samuel Son-Tung Vu said. “In terms of
e-commerce in general, new regulations have set forth a clear legal basis on
obligations of platforms to ensure a safe market for both sellers and buyers,
especially amid an increasing number of cross-border transactions conducted
via e-commerce,” he added. “Some newly-added requirements may certainly
provide additional protection to consumers and hold e-commerce platforms
responsible to supervise foreign traders.” Gov’t urges action to simplify business regulations Following
instructions of the prime minister, the Government Office has urged
ministers, leaders of ministerial-level agencies and the Vietnam Social
Security to complete plans to simplify business regulations and submit them
to the prime minister for approval. Under the
Government’s Resolutions 68 and 75 and the prime minister’s Directive 23,
ministries and State agencies must closely collaborate with the Government
Office to review all regulations related to business activities, calculate
law compliance costs, update data and map out a plan to streamline business
regulations. To date,
only three ministerial-level agencies have submitted their plans to the prime
minister, including the ministries of Health and Transport, and the State
Bank of Vietnam, with the plan by the Ministry of Health having obtained
approval, the Government’s news site reported. Besides, the
Government Office asked the ministries and ministerial-level agencies, which
have yet to formulate a plan, to direct their lower-level units to issue
guidelines over the implementation of the plans after the prime minister
approves them. Vietnam Entrepreneurs’ Day: businesses resolute to overcome
difficulties Experiencing
the ups and downs of history, recent times has given entrepreneurs and
businesses a chance to demonstrate their pioneering role in all fronts, as well
as serving an important driving force behind the development of the national
economy. In 1945,
immediately after the Democratic Republic of Vietnam was established, the
business circle actively supported the "Golden Week". This was
backed by not only rich merchants, but almost every family of small
businesses, whether small or large, also supported the establishment of the
"Independence Fund". That spirit
has become more evident over the past two years when the COVID-19 pandemic
hit like a terrible and unprecedented hurricane that swept around the globe.
For local businesses and entrepreneurs, the damaging impact of the pandemic
has caused many firms to face plenty of difficulties, challenges, and
exhaustion. In this
difficult context, many enterprises based in Ho Chi Minh City, Dong Nai, and
Binh Duong provinces, although facing many difficulties due to the impact of
the pandemic, still strive to fulfil their social community responsibilities.
This is done in the spirit of reinforcing mutual solidarity and uniting to
share with local administrations to contain the pandemic. As a result,
thousands of billions of VND have been donated by businesses to the COVID-19
Vaccine Fund, along with the construction of field hospitals and medical
isolation facilities. Furthermore when the pandemic is at its most stressful
time, there remains many resilient businesses and entrepreneurs which have
managed to stand firm and creatively adapt themselves to the pandemic
situation. The
management board of Truong Sinh Group, a multi-sectoral development
corporation, has meticulously outlined various scenarios, plans, and
solutions aimed at coping with the impact of the pandemic, while strictly
implementing safety measures in a range of production activities, promoting
the digital transformation process, and applying online sales to consume more
goods. Le Thanh
Thien, general director of Truong Sinh Group, revealed that the firm has
shared its difficulties with its partners in order to ensure that their
supply chain is not disrupted amid the ongoing disruption caused by the
pandemic, with the enterprise still fully able to perform its social
responsibilities. “The group
has made drastic changes in technology, digital transformation to adapt to
the reality, while finding proper solutions to both domestic business and
foreign export partners, and suspending production of non-essential items. During the
strong outbreaks in Ho Chi Minh City and its neighbour Binh Duong, the
Group's medical research products were given to F0 patients for home
treatment, with those with mild symptoms easing the disease. After this
pandemic wave, the Group will promote research on Vietnamese medicine and
pharmaceuticals in order to launch a range of new products for COVID-19
treatment within the community," Thien said. According to
Chu Tien Dung, chairman of the Ho Chi Minh City Business Association,
difficulties are also a test to create resilience for the domestic business
community. Being in the centre of the epidemic in the southern city,
enterprises have always "co-communicated with suffering" to
overcome the pandemic. Hundreds of
online discussions have also been held between associations, members, and
businesses, regardless of day or night, in order to come up with the most
optimal solutions, reasonable production models, as well as effective
pandemic prevention measures to continue maintaining production activities. Amid the
current context of the nation moving into the new normal, although there will
still be many difficulties and challenges ahead in the process of recovering
post-pandemic production, many firms have concluded that only innovation and
restructuring in management can enable them to continue to exist. This is
particularly true due to the many uncertain factors caused by the ongoing
COVID-19 pandemic. Economic
experts have stated their belief that the COVID-19 pandemic will have a
long-term impact on the way the national economy operates, on national
governance, social governance, and corporate governance. The economic
recovery process has been prolonged, while many countries have issued new
legal regulations and long-term special policies which aim to help businesses
resume operations. Domestically,
the restoration of production will represent a thorny problem with the risk
of many firms closing, jobs not being restored, and social security being
seriously impacted. According to
Pham Tan Cong, chairman of the Vietnam Chamber of Commerce and Industry
(VCCI), there should have been a new policy system put in place with the
"new normal" for businesses in order to secure a better positions
in the global value chain. Therefore,
it remains necessary to view COVID-19 as a driving force which can make a
breakthrough in building and fine-tuning institutions, the legal system,
along with regulations and policies to suit the conditions of the "new
normal". This should be done in order to create preferable opportunities
for enterprises to quickly restore production activities and economic growth
as a means of boosting the nation to a higher position in the global value
chain. "With
the pride of Vietnam Entrepreneurs Day, with the spirit of solidarity,
determination, creativity, along with the leadership and wise direction of
leaders of competent agencies, the Vietnamese business community believe that
they would be able to overcome all difficulties and challenges, maintain
stability and develop production and business, thereby making a worthy
contribution to the country's victory in the fight against the COVID-19
pandemic, as well as the successful implementation of socio-economic
development goals set out by Resolution adopted at the 13th Party Congress,”
the VCCI leader said. There is no
denying that many local businesses, including the likes of BIDV, Viettel,
VinGroup, Truong Hai, FPT, and Vinamilk have made great strides to gradually
keep abreast with their peers, both regionally and globally. The nation
also had six entrepreneurs listed among the world’s billionaires in 2021 as
selected by Forbes magazine. With an export turnover of US$281 billion in
2020 and a total import and export turnover of US$544 billion, the country
has risen to 22nd and 26th place in the world in terms of export scale and
international trade. This clearly
demonstrates the role of the business community in the cause of national
construction and economic development. Air and rail tickets sell well after services resume Both air and
railway tickets have been sold very well after fights and railway services
resumed following a long halt due to Covid-19. According to
Phan Quoc Anh, deputy director of the Vietnam Railways Corporation, tickets
for the SE7/8 train services on the Hanoi-HCM City route have mostly sold out
despite only going on sale at 8 am on Monday. The firm has had to arrange
train services SE5/6 to meet demand. Many people
have wanted to buy tickets for October 14-20. “Passengers
have to ensure a safe distance on trains, so only around 300 tickets are
allowed to be sold. However, travel demand is quite high so we’ve decided to
add the SE5/6 services on the Hanoi-HCM City route,” Quoc Anh said. Railway
companies have been told to co-operate with localities where trains call to
ensure Covid-19 prevention regulations. In Ho Chi
Minh City, up to 240 tickets for the SE7/S8 train services scheduled to
depart Saigon Station for Hanoi on Wednesday and on Friday were sold within
just an hour on Tuesday morning. The tickets were bought at stations and
online. Pham Thi Anh
Dao, head of Hanoi Railway Station said that many passengers had come to
Hanoi Station to buy tickets, mostly to central and southern localities such
as Nha Trang and HCM City. Hanoi
Station has arranged quarantine rooms for passengers and staff with
Covid-19-like symptoms. The station has also prepared an area for quick
Covid-19 testing. The same
situation has also been reported for airfares. Tickets for flights from Hanoi
to HCM City on October 11-13 were sold out quickly despite quite high prices. The
occupancy rate of Vietnam Airlines flights has reached around 90%. Dinh Viet
Thang, head of the Civil Aviation Authority of Vietnam (CAAV), said only a
small number of flights have been resumed. Social distancing and low
availability have pushed fares higher. CAAV also
suggested lifting the distancing regulations on flights to help passengers to
enjoy cheaper tickets as they have to pay for their Covid-19 test. Timber deal clearing path for US trade The
announcement that the United States has decided not to take any trade action
on Vietnamese timber following a 12-month investigation is helping to clear
the path for increased trading activity between the two. The
agreement is meant to secure Vietnam’s commitment to “keep illegally
harvested or traded timber out of the supply chain and protect the
environment and natural resources,” as stated by the Office of the US Trade
Representative (USTR). “Ambassador
Tai determined that the agreement provides a satisfactory resolution of the
matter subject to investigation and that no trade action is warranted at this
time,” noted the USTR. The
agreement that both countries signed ended a year of anxiety for Vietnamese
furniture exporters and recognises the partnership between Vietnamese
manufacturers and American buyers. Vietnam had
been tasked with solving issues related to illegally sourced or traded
timber, including improving the legal framework, removing confiscated timber,
verifying legality of domestically harvested timber, and working with
high-risk countries to improve border checks and law enforcement cooperation. “I commend
Vietnam for its commitment to address our concerns,” said Tai. “With this
agreement, Vietnam will provide a model, both for the Indo-Pacific and
globally, for comprehensive enforcement against illegal timber.” President
Joe Biden is helping Vietnam by gradually removing investigations of the
previous administration related to alleged violations of trade regulations. Last
October, the USTR launched an investigation under Section 301 of the US Trade
Act of 1974 to investigate Vietnam’s use of allegedly illegally harvested or
traded timber. This agreement – along with that between the US Treasury
Department and the State Bank of Vietnam in July to settle accusations of
currency manipulation – ensures that the door for exports to the US is opened
again. Vietnam’s
wood processing industry still relies on exports to the US market for
efficiency because this market represents the largest and fastest growing.
Despite the impacts of the pandemic, Vietnam’s timber exports in the first
eight months of 2021 reached $6.4 billion, up 58.8 per cent over the same
period in 2020. Last year, total exports of timber and products thereof to
the US reached $7.4 billion, accounting for 57 per cent of the total export in
the sector. “The signing
of the agreement marks the beginning of an era of tighter control within the
import-export supply chain more closely, including the domestic market, which
up to now was rather loose,” said Dr. To Xuan Phuc from non-profit organisation
Forest Trend. Though the
USTR does not impose sanctions on Vietnamese timber items exported to the US,
Vietnam’s government has to commit to several new conditions, some of which
are relatively strict, Phuc said. Tran Le Huy,
general secretary of the Binh Dinh Forest Products Association explained,
“Vietnam is trying to improve the legal framework, inspect, and supervise the
import of input materials more closely to ensure a transparent production
system.” Vietnam’s
legal system for the sector encompasses Decree No.102/2020-ND-CP, stipulating
the legal timber guarantee system as well as several other commitments that
Vietnamese manufacturers have to strictly comply with. Huy, who has
been observing forest-related policy development for more than two decades,
said, “I have never seen such a large number of timber investigations before.
Thus, we are required to reduce risks in the import of wood materials, and
this needs to be done with both policy adjustments and practical activities.” On average,
Vietnam annually imports 2-2.5 million cubic metres of round timber from
Africa, South America, Laos, Cambodia, and Papua New Guinea, equivalent to
40-50 per cent of the total volume of imported logs and sawn timber. Lenders energise foreign-owned power projects A handful of
local and foreign banks are leveraging their insights and optimising
financial resources to promote energy and power transition in Vietnam, thus
contributing to the country’s sustainable national energy policy. Nhon Trach 3
and Nhon Trach 4 power plants based in the southern province of based in Dong
Nai are the first and largest LNG projects in Vietnam with a combined
capacity of 1,300-1,760MW, and are slated to be the electric load centres for
the south of the country. “PV Power
expects the vast expertise of Techcombank and MB to smooth the path for it to
be proactive in credit sources, as well as reduce the state budget burden on
the national energy development path,” said Nguyen Duy Giang, deputy general
director of PV Power. MB board
member Pham Nhu Anh told VIR, “Clean and sustainable energy has always been a
strategic focus for us. With this collaboration, we will make great strides
to bring best-of-its-kind financial services to contribute to the country’s
energy development.” Anh noted
that MB has spent roughly $3 billion on key projects on wind power and solar
power with Nhon Trach 3 and Nhon Trach 4 being the first major chemical gas project
that MB has been involved in. In 2020,
Citibank and INGbank signed a letter of authorisation to provide financial
assistance to the project. French financial services multinational Societe
Generale also expressed its keen interest in lending for the two projects. Elsewhere,
HSBC Vietnam last week confirmed it would provide short-term green trade
finance in renewable energy construction for Power Construction JSC No.1
(PCC1), a leading Vietnamese engineering, procurement, and construction
company. This is the
first sustainable finance service that HSBC has offered to a local corporate
in the wind sector, and the third for Vietnamese businesses in renewable
energy in general, after two green facilities were provided to REE for its
rooftop solar project last year. Stephanie
Betant, head of Wholesale Banking at HSBC Vietnam, said, “This first for
renewable energy means we are particularly excited to provide green financing
to PCC1 for wind power, a Vietnamese leader and a promising source of energy
for Vietnam’s growing needs.” Betant
explained that the transaction reflects the efforts of HSBC Vietnam in
supporting the government’s Resolution No.55/2020 on Vietnam’s energy
development strategy for the decade, with a vision towards 2045, to
prioritise clean energy. The huge
potential of Vietnam’s renewable energy, and wind energy in particular,
continues to be acknowledged by foreign-owned financial institutions. Last month,
Proparco, a development finance group partly owned by the French Development
Agency, granted a $50 million loan package to HDBank to support the lender’s
portfolio of climate-friendly projects. “Proparco
has prioritised supporting private actors committed to the fight against
climate change. We are delighted to initiate the partnership, which will
contribute to the energy transition in Vietnam,” said Raphael de Guerre, head
of Proparco’s office for North and Southeast Asia. Strategies sought by insurers after mixed bag in growth Foreign
corporations are gaining their momentum in Vietnam’s insurance market, with
long-term commitments being paid off – however, the non-life insurance growth
rate reached a decade-long record low. Bao Viet
Life, the only Vietnamese insurer on the list, still holds the largest market
share, with 20.8 per cent. However, other foreign enterprises such as
Manulife, Prudential, Dai-ichi Life, and AIA have accelerated their
initiatives and international expertise to improve operational efficiency and
gain customer appetite. The five
largest companies accounted for 78.7 per cent of the whole life insurance
market share, with foreign insurers enhancing their position, while a number
of major Vietnamese insurers have diminished. In the past
five years, BaoViet Life’s market share has decreased by 6 per cent. On the
contrary, Canadian insurer Manulife has increased their segment from 6.9 to
19 per cent. AIA rose from 1.5 to 10.8 per cent, while Dai-ichi Life from 1.6
to 12.1 per cent. Other
insurance companies have also ramped up their presence in the past few years,
such as FWD, MB Ageas, and Sun Life. UK-backed Prudential also now boasts 16
per cent of the life insurance business segment. “The vibrant
domestic stock market has bolstered the financial investment activities of
insurance companies. However, low interest rates reduce financial income of
deposit-focused insurance companies,” BSC commented. “Most
insurers have set low or even negative growth targets in 2021 due to the low
interest rate environment as a result of loose monetary policy.” Notwithstanding,
BSC added, the forthcoming amended Law on Insurance Business is expected to
lift the foreign ownership cap, which would lay the concrete foundation for
foreign investors to penetrate the domestic market. Elsewhere,
the ongoing pandemic and its resulting economic crisis are hitting the
non-life insurance industry hard. In this
sector there are six leading insurers, accounting for about 60 per cent of
the market share. However, in the past three years, Bao Viet has gradually
lost its market share, from over 20 per cent in 2018 to 15 per cent by the
end of June 2021, which is equivalent to PVI. Some other insurers have raised
their rankings, such as MIC, surpassing Pjico. According to
preliminary data from the Insurance Association of Vietnam, in the first
eight months of this year, non-life insurance revenues were estimated at
VND37.28 trillion ($1.62 billion), up 3.61 per cent. However, this figure is
the lowest growth rate in nearly 10 years. Meanwhile,
compensation reached VND11.74 trillion ($510 million) with the rate at 31.5
per cent, not including compensation provision. In which,
motor vehicle insurance revenues reached VND10.28 trillion ($445 million),
accounting for 27.6 per cent of total market revenue, down 7.7 per cent over
the same period; with a compensation rate of 48 per cent. Health
insurance revenues hit VND11.05 trillion ($480.7 million) and occupied 29.7
per cent, up 3.39 per cent on-year, with a claim rate of 29.6 per cent, not
including compensation provision. Property
damage liability insurance revenue stood at VND5.4 trillion ($234.7 million),
accounting for 14.5 per cent, up 10.26 per cent. Fire and explosion insurance
revenues sat at VND4.9 trillion ($212.4 million), occupying 13.1 per cent, up
10.4 per cent; cargo insurance revenues hit VND1.8 trillion ($79.1 million),
making up 4.9 per cent and up nearly 23 per cent; and hull insurance and
shipowner’s civil liability attained over VND1.6 trillion ($71.5 million),
accounting for 4.4 per cent and up 18 per cent. Other
insurance services include liability insurance at VND899 billion ($39.1
million), up 24 per cent; aviation insurance at VND544 billion ($23.7
million), up 26 per cent; credit and financial risk insurance touched VND540
billion ($23.5 million), down nearly 7 per cent; and business damage
insurance hit VND157 billion ($6.8 million), down 2 per cent over the same
period. Thus, the
revenue growth of the non-life insurance market in the first eight months of
2021 was roughly equivalent to 50 per cent of last year’s period. “This
segment is forecasted to encounter a bumpy road as the automobile industry is
stuck in the mud due to the economic downturn. Under pandemic pressure,
customers tend to cancel insurance policies or fail to renew them,” BVSC
said. Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan |
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