VIETNAM BUSINESS NEWS OCTOBER 2
14:34 Viet Nam’s
stock market finished lower on Friday as selling pressure strengthened in the
afternoon session, affecting investors' sentiment. Meanwhile, foreign
investors still fled the market. On the Ho
Chi Minh Stock Exchange (HoSE), the VN-Index decreased by 7.17 points, or
0.53 per cent, to 1,344.89 points. The market’s breadth was negative with 269
stocks declining, while 137 stocks rose. However, the
liquidity increased sharply as nearly 738.2 million shares were traded on the
southern bourse, worth more than VND23.3 trillion (US$1.02 billion). The index
fell as bank stocks faced a strong sell-off yesterday, weighing on the whole
market. The VN30-Index lost 11.93 points, or 0.82 per cent, to 1,441.83
points. Nineteen of the 30 biggest stocks in the VN30 basket declined, while
ten stocks rose and one ended flat. Many big
bank stocks posted losses of more than 1 per cent in the last trading session
of the week. Of which Vietcombank (VCB) fell the most in market
capitalisation, down 1.34 per cent to VND95,900 per share. VPBank (VPB),
Vietinbank (CTG), Vietnam International Commercial Joint Stock Bank (VIB) and
Sacombank (STB) reported losses of more than 2 per cent. Other big
names in the sector including Techcombank (TCB), BIDV (BID) and MBBank (MBB)
also plunged more than 1 per cent. Also adding
to the pressure, some pillar stocks in real estate and manufacturing such as
Vinhomes (VHM), Masan Group (MSN) and Saigon Beer - Alcohol - Beverage
Corporation (SAB) recorded sharp falls in a range of 1.41 - 1.82 per cent. The rise in
energy stocks was the bright spot yesterday as they still received support
from higher oil prices and global recovering fuel demand. PetroVietnam
Gas (PVGas, GAS) was the biggest gainer yesterday, up 6.7 per cent.
PetroVietnam Power Corporation (POW) also climbed nearly 2.1 per cent, while
PetroVietnam Drilling & Well Services Corporation (PVD) jumped 3.51 per
cent. The
HNX-Index on the Ha Noi Stock Exchange (HNX) also edged down yesterday on
strong selling force. The index dropped 0.24 per cent to 356.49 points. During the
trading session, over VND2.8 trillion was poured into the market, equivalent
to a trading volume of nearly 129 million shares. On the other
hand, foreign investors continued to be net sellers on HOSE as they net sold
a value of VND536.61 billion. However, they net bought a value of VND123.18
million on the northern market. The fleeing
of foreign investors was the downside of the market in the third quarter. Data
compiled by ndh.vn showed that foreign investors bought nearly 2.38 billion
shares, worth over VND112.3 trillion, while selling more than 2.53 billion
shares, worth nearly VND122.2 trillion. Therefore, they net sold a total of
157.4 million shares last quarter, equivalent to a net sold value of VND9.86
trillion. MoH recommends not testing fully vaccinated workers The Ministry
of Health (MoH) has recommended not conducting periodic SARS-CoV-2
testing for fully vaccinated workers who received the last shot at least 14
days but not more than 12 months ago, or former patients who have recovered
from the disease in the last six months. The
recommendation was made as part of an urgent document sent on September 30 by
the ministry to governmental agencies, sectors, provinces and centrally-run
cities regarding SARS-CoV-2 testing for business and production facilities. The move
was made after Prime Minister Phạm Minh Chính directed the MoH to
urgently issue COVID-19 self-testing guidelines for enterprises, thus
creating favourable conditions for them to stay proactive in their business
activities while ensuring safety in pandemic prevention and control. According to
the COVID-19 self-testing guidance issued on September 30, the ministry has
proposed conducting screening tests for all cases of employees with
suspected COVID-19 symptoms such as cough, fever, and shortness of breath,
and those with related epidemiological factors. For
enterprises in high-risk provinces and cities, real time RT-PCR or rapid
antigen tests are required every week for 20 per cent of high-risk workers and
all direct service providers to the facilities. For those in
localities at risk, real time RT-PCR or rapid antigen tests are required at
least twice a week for at least 5-10 per cent of high-risk workers and all
direct service providers to the facilities. The ministry
said enterprises must be solely responsible for the quality of antigen tests,
testing procedures and results. If
enterprises implement the SARS-CoV-2 antigen rapid test themselves, they must
take guidance from the provincial centre for disease control or the district
health centre, it said. Meanwhile,
drivers transporting goods from an area with social distancing measures to
neighbouring areas with lower risk of infection must have this testing
performed at medical facilities. Recently,
several local media outlets said enterprises had faced difficulties in
production recovery due to the serious shortage of workers and different
COVID-19 testing requirements in localities. Vietnam calls for more EU investments in agriculture Minister of
Agriculture and Rural Development Le Minh Hoan on October 1 suggested EU
firms increase investments in Vietnam’s agriculture, in the direction of
high-technology, green standards and environmental sustainability. At a working
session with Ambassador Pier Giorgio Aliberti, head of the EU Delegation to
Vietnam, Hoan also called on the EU to help Vietnam improve capacity for its
cooperatives and upgrade small-scale agricultural production infrastructure. Vietnam is
gearing towards transparent, responsible and green agriculture, and is making
efforts to promote a quality-based and multivalued agricultural sector,
according to the minister. He suggested
FDI firms from the EU export machinery, equipment, technologies and materials
to Vietnam. For Vietnam’s
exports to the EU, the official proposed the EU send experts to Vietnam or
establish a representative office in the Southeast Asian country to supervise
food safety before the shipment. Hoan
described the EU as a potential market for tropical agricultural products,
including those from Vietnam, noting that the EU-Vietnam Free Trade Agreement
(EVFTA) has created more opportunities and momentum for trade cooperation
between the two sides. In the first
eight months of this year, Vietnam earned 2.38 billion USD from
agro-forestry-fishery export to the EU, up 8.11 percent year-on-year. Its
import value also reached 542 million VND, a rise of 2.24 percent. During the
working session, Hoan also highlighted Vietnam’s efforts in implementing
recommendations by the European Commission (EC) to fight illegal, unreported
and unregulated (IUU) fishing. Combating
the IUU fishing is a central task of the agricultural sector and an urgent
need for Vietnam to help the country develop the fishery sector sustainably,
demonstrate its responsibility and promote its prestige in the international
arena. The
ministered thanked the EU for its support to Vietnam in this regard, and
affirmed that Vietnam will make all-out efforts to implement relevant
recommendations. He appealed
to the EU to soon remove the “yellow card” warning imposed on Vietnam as soon
as possible. Hoan
suggested the EU help Vietnam build smart cold chain logistics connecting the
Mekong Delta and Southeastern localities with Cai Mep-Thi Vai Port to boost
Vietnam’s fruit export to Europe and the Middle East. For his
part, Aliberti said after two years of realising the Voluntary Partnership
Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT), the
two sides have cooperated and expected to have more in-depth, effective
dialogues in the time ahead. Vietnam will
effectively implement the timber legality assurance (VNTLAS), he believed. The EU would
provide Vietnam with technical assistance to ensure cold storage for fruits
and vegetables for export to the EU, he said, suggesting the two sides
continue to seek solutions regarding animal and plant quarantine. The minister
and ambassador shared the view that there is ample room for trade cooperation
between Vietnam and the EU in agriculture./. Six wind power plants put into commercial operation by September
end Six wind
power plants with a total capacity of 272.4 MW have come into commercial
operation by the end of September, according
to Vietnam Electricity (EVN). They are Hoa
Binh 1 – phase 2 with a capacity of 42.2 MW, Ninh Thuan 5 (46.2 MW), 7A (33.4
MW), Dong Hai 1 – phase 2 (50 MW), Ea Nam (12.6 MW) and BIM (88 MW). The EVN said
106 wind power plants have submitted applications for
accepting commercial operation date (COD) with a total capacity of
5,655.5 MW. It will continue to update the progress
of COD acceptance for the wind power projects before October 31./. Vietnamese aquatic products gain favour in Australia Vietnam’s
aquatic products have gained the favour of Australian consumers, Secretary of
the Australian Department of Agriculture, Water and the Environment Andrew
Metcalfe told a workshop on October 1. The event
was jointly organised by the Vietnamese Ministry of Foreign Affairs and the
Vietnam Association of Seafood Exporters and Producers (VASEP) in both
in-person and teleconference formats. To increase
Vietnamese aquatic products’ presence in Australia, Metcalfe suggested the
two sides step up information sharing and technical assistance, thus helping
Vietnamese producers better satisfy quarantine standards set by Australia. Enhancing
vaccinations would help Vietnamese and Australian businesses, including those
operating in the fishery sector, step up trading activities, the official
said. Vietnamese
Deputy Minister of Foreign Affairs Vu Quang Minh said Australia has become
one of Vietnam’s ten biggest trade partners, adding that Vietnam’s fishery
export to the country expanded by 35 percent in the first eight months of
this year despite impacts of the COVID-19 pandemic. He used the
occasion to thank Australia for its donation of COVID-19 vaccines and medical
supplies to Vietnam. Head of the
Vietnamese Directorate of Fisheries Nguyen Dinh Luan said Vietnam’s aquatic
products have met Global Gap and ASC standards as well as those on product
origin. According to
VASEP Deputy Secretary To Thi Tuong Lan, Vietnam will intensify technological
application, work harder to satisfy requirements on production and environmental
protection, boost cooperation with international organisations to supervise
production, and step up research to ensure food safety. The
participating Australian businesses suggested Vietnamese firms foster
cooperation in procedures as prescribed in such agreements as the
ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), the Comprehensive
and Progressive Agreement for Trans-Pacific (CPTPP), and the Regional
Comprehensive Economic Partnership (RCEP) to which both countries are
signatories. Vietnam
needs to quickly apply electronic certification to facilitate its fishery
export amid the pandemic spread, they said./. Vietnam GDP to grow at 5.4 per cent: English chartered
accountants institute Vietnam’s
GDP is likely to grow by 5.4 per cent this year, according to the Global
Economic Forecast Report from the Institute of Chartered
Accountants in England and Wales and Oxford Economics. The ICAEW
said the forecast has been revised downwards from the 7.6 per cent in its
previous report. The growth
would accelerate to 7.5 per cent in 2022, with the pick-up driven by easing
restrictions and industrial recovery gaining traction around mid-2022, it
said. Prospects
remain dim in the short term for countries like Việt Nam, the Philippines and
Thailand which continue to battle the spread of the COVID-19 virus. Heavily
export-oriented economies like Việt Nam remain dependent on the recovery
of the manufacturing sector. The spread
of the highly contagious Delta variant has cast a
shadow on Southeast Asia and limited economic recovery
this year, especially for countries with low levels
of COVID-19 immunity. Several
economies are expected to contract in the third
quarter, but the outlook
in 2022 is more positive. Asian
economies have experienced varying degrees of success in containing the Delta
variant because of differing rates of vaccination and social
distancing restrictions. At one end
of the spectrum, significant waves of infections in Việt Nam,
Malaysia, the Philippines, and Thailand in the last quarter mean they
face delayed recovery in 2021, but they should see a
significant rebound in 2022 once vaccination rates are higher and lockdowns
are lifted. Mark
Billington, ICAEW’s managing director international, said: “The COVID-19
Delta variant has derailed the recovery process for most South-East
Asian economies and the reality of living with COVID-19 as endemic is
proving to be complex. “Not only do
governments have to implement appropriate restrictions and measures to curb
the spread of the variant, but they also need to speed up their
vaccination rollouts to achieve immunity, in order to improve their prospects
for growth.” Global GDP grew
by 1.4 per cent in the second quarter
of 2021, exceeding the rate of growth seen in
the 15 years prior to the pandemic, including the pace
of recovery seen after the global financial crisis
of 2008. However,
there are signs that momentum may be faltering, driven
by tighter restrictions and concerns about the Delta variant,
and supply chain disruptions that are affecting key sectors such as
manufacturing. The report
expects the global economy to expand
by around 5.8 per cent in 2021 and 4.7 per
cent in 2022. Q3 2021 bank profits forecast to decline by 19 per cent due to
pandemic Profits of
the banking industry in the third quarter of 2021 would decrease by 19 per
cent compared to the previous quarter due to slowing credit growth and
increasing provision expenses, Yuanta Securities Vietnam estimated. In a report
on Q3 2021 profits of the banking industry, Yuanta said it was not too
surprising about the decline as the credit growth of the whole industry had
slowed down due to the impact of the pandemic. The State
Bank of Viet Nam (SBV)’s data showed by the end of last month, credit growth
of the entire banking industry was 7.4 per cent, of which the rise in the
third quarter of 2021 was driven primarily by loans to pandemic affected
borrowers and corporate bonds. Accordingly,
Yuanta analysts forecast net interest income in Q3 2021 of banks will
decrease by 2 per cent compared to the previous quarter and net interest
margin (NIM) will be under the same trend as banks had to cut interest rates
to support customers affected by the pandemic. Besides, the
company also predicted provision expenses of banks in the third quarter this
year would increase by 20 per cent compared to the previous quarter,
especially at banks with relatively low loan loss reserve (LLR) ratio.
However, it noted declining asset quality is inevitable in the context of the
ongoing pandemic and the implementation of social distancing. According to
Yuanta, Circular 14/2021/TT-NHNN issued by the SBV allowed banks to extend
the debt restructuring period to June 30, 2022 instead of the original plan
of December 31, 2021. Therefore, bad debts, which have been made public, may
still be at a low level, but it will be better if banks make provisions now
to limit the possibility of asset quality deterioration in the future. However, the
analysts expected credit growth would recover in the fourth quarter of 2021
when the economy reopens. In fact, the
credit growth in July and August was more positive than that in June with
respective rising rates of 0.69 per cent and 1.13 per cent. The demand
for credit is expected to increase strongly in the last months of the year,
similar to what happened in the fourth quarter of 2020. The SBV has so far
also increased credit growth limit for many commercial banks. Nguyen Tuan
Anh, director of the SBV’s Credit Department of Economic Sectors, also
affirmed banks haven’t tightened lending, but created favourable conditions
for firms to access bank loans. Anh said the
credit growth target this year was at 12 per cent, but if necessary, the rate
could be adjusted to create favourable conditions for firms. "We
expect the central bank will continually loosen monetary policy at least
until the end of this year, which will help improve banks’ NIM slightly in
the fourth quarter of 2021 when credit demand increase again. In addition,
banks’ fee income is also expected to increase since the third quarter of
2021 and the source will be the main driver to help boost banks’ profits in
the fourth quarter," said the Yuanta analysts. The expected
loose monetary policy would help cut the lending interest rates next months,
the analysts forecast. VinaCapital Ventures buys stakes in DutyCast VinaCapital
Ventures has bought an undisclosed share of Dutycast, the
creator of a tool that eases the cross-border e-commerce experience for
shoppers by providing transparency around final prices, duties,
taxes, and logistics expenses. Created in
2020 the app enables customers to buy goods from certain global
e-commerce sites and marketplaces with ease. In some
countries, cross-border shopping comes with hidden surprises around foreign
exchange rates, customs duties and local taxes, and shipping and other
logistics fees, making the online shopping
experience more expensive than planned and creating significant
challenges for consumers. Dutycast eliminates
those surprises as well as other common hindrances such as language and
payment methods, with its transaction processing tool providing users
with a secure and transparent, end-to-end international shopping
experience. Customers can
shop at multiple stores in different countries and
checkout once, paying in their local currency via trusted payment
methods and without worrying about foreign exchange
fluctuations. Hoàng
Đức Trung, partner at VinaCapital Ventures, said: “E-commerce
is growing rapidly in Việt Nam , especially as a result of the
pandemic. Anyone living here or in other countries knows how
difficult and sometimes frustrating it can be to order
from online retailers based overseas. “Dutycast provides
a very simple solution to that. It is a tool that will be very valuable
and useful, not just in Việt Nam but potentially in many countries
in the region and around the world where online shopping is not as easy
as it should be. We look forward to assisting the founders on scaling up and
realising the full potential of their business.” The global
cross-border e-commerce market was valued at US$994 billion in 2020, and is
expected to top $2 trillion by 2026. In
Việt Nam, e-commerce was valued at nearly $12 billion, or
5.5 per cent of all retail sales, according to the Department of
E-commerce and Digital Economy. Việt Nam is
one of the world’s fastest growing e-commerce markets due to its young,
digitally savvy population and rapidly expanding middle class. Rise of vital telehealth services providing much-needed access Telehealth
startups are popping up more than ever before, aiming to innovate the
healthcare sector and cater to the huge demand. Beth Ann
Lopez, co-founder and CEO of Docosan said, “COVID-19 has changed the way that
healthcare is delivered in Vietnam, and the innovations that have emerged
during this time are here to stay. Telemedicine can be used by doctors to
conduct initial consultations, as well as for remote monitoring and
aftercare.” Telehealth
allows patients with mild symptoms to manage their condition from the comfort
of their homes, while freeing up resources from busy hospitals and quarantine
areas. “We
currently have over 140 medical providers who are offering teleconsultations
across special fields, ranging from paediatrics over dentistry to oncology,”
Lopez added. Meanwhile,
Doctor Anywhere, a regional tech-led healthcare company, has raised $65.7
million in its Series C financing round to expand its footprint in Southeast
Asia, including Vietnam. According to
Le Ngoc Hai, CEO of Doctor Anywhere Vietnam, digital healthcare has proven
its usefulness by delivering high-quality, cost-effective, and seamlessly
accessible services. “We have
witnessed significant growth in the number of users and partners. The figures
for new sign-ups and downloads increased two-fold per month. Previously,
around 200 online consultations were made on the app daily. But these days,
the number has doubled, surging to 500 calls on our busiest days,” he said. MedPro is
another startup that has sprung up to meet the surging demand for online healthcare.
Nguyen Xuan Quang, chairman and CEO of MedPro shared, “As many people have to
be treated at home, telehealth is currently the optimal solution.” Registrations
for online medical examinations through MedPro are increasing strongly, not
only for COVID-19 but also other illnesses that people have been suffering
with. To ease the
burden, the Ministry of Health has proposed that local hospitals in virus-hit
cities and provinces set up remote clinics to advise and treat patients at
home. Doctors will
use online apps such as Zalo, Zoom, Viber, and Facebook in combination with
electronic health management records to provide the most effective support
for patients. Frontline hospitals are also requested to publish their phone
numbers on public media, so that people can contact them for help. In response
to the campaign, some medical facilities have set up virtual clinic systems
to cater to the growing demand. Meanwhile,
Doctor Anywhere also engages in this campaign by expanding its network. “With
more efforts put on improving core services like virtual consultations and
online pharmacies, Doctor Anywhere could provide prompt and helpful
assistance for people,” Hai said. Meanwhile,
MedPro has partnered with hospitals in Ho Chi Minh City, Dong Nai, Ba
Ria-Vung Tau, and other localities to deploy the MedPro online booking system
and launch the free telehealth feature to support COVID-19 patients. According to
the Digital Healthcare in Vietnam report by KPMG, telehealth will play an
important role in supporting diagnosis and treatment of non-communicable
diseases across the population. However, this poses a challenge for
lower-income groups with less access to tech advances, particularly those in
remote, underdeveloped, or rural areas. As
telehealth is a fairly new option in Vietnam, some operations will need time
for both medical staff and patients to get used to. On top of that, doctors
may also not be comfortable using digital technology due to their years of
in-person experience. “We see
medical providers as partners,” Lopez of Docosan said. “We do not have brick
and mortar clinics and have no desire to compete. Rather, we hope to enable
them to expand their businesses by connecting them with new patients.” Wood and forestry exports surge over nine-month period Vietnamese
timber and forestry exports during the nine months of the year surged by
31.9% to US$11.97 billion, with these products enjoying a trade surplus of
US$9.699 billion, a rise of 45%, according to the Ministry of Agriculture and
Rural Development. Of the
figure, the country raked in US$11.14 billion from exporting timber and wood
products, representing an increase of 30.9%, while forestry exports reached
US$832 million, an annual boost 46.4% compared to the same period from last
year. However,
wood and forest exports in September endured a decline of 8.2% to US$821
million compared to the previous month The
nation's major export markets for timber and forestry products include
the United States, Japan, China, the EU, and the Republic of Korea, all of which
combine to account for over 90% of the total export value. Furthermore,
the import value of timber and wood products during the nine-month period is
estimated at stand at over US$2,275 billion, representing a rise of 30%
against the same period last year. The main
import markets of these products include China, the US, Cameroon, Thailand,
and Chile, accounting for roughly 55% of the total import value in the
reviewed period. HCM City logistics association comes into being The
Logistics Association of Ho Chi Minh City has been officially established
with its first congress, for the 2021 - 2026 tenure, taking place on
September 30. Vice
Chairwoman of the municipal People’s Committee Phan Thi Thang said HCM City
views logistics as a main artery of its economy. Given this, the
establishment of a logistics association in the city is an urgent need so
that it can serve as the mouthpiece for local logistics businesses and
accompany the city in future logistics development projects. HCM City
aims for growth rates of 15 percent and 20 percent in logistics services’
revenue by 2025 and 2030, respectively. It looks to raise logistics’
contribution to its gross regional domestic product (GRDP) to 10 percent by
2025 and 12 percent by 2030. To that end,
the southern economic hub will focus on three groups of key solutions:
forming logistics centres; applying information technology, setting up a
logistics ecosystem early, and using common data for all enterprises; and
striving to become a centre for logistics personnel training and provision in
the southern region and the whole country. All the
above-mentioned solutions require close cooperation from logistics
enterprises, Thang said. She
requested that apart from developing export and import logistics, businesses
and the association should pay due attention to the services serving the
domestic goods circulation, as well as the logistics infrastructure for
e-commerce./. Vietnam welcomes only 114,500 foreign visitors in nine months
Vietnam
welcomed about 114,500 foreign visitors in the first nine months of this
year, a year-on-year plunge of 97 percent, announced the General Statistics
Office (GSO) on September 29. In the third
quarter alone, the country greeted some 26,300 foreigners, slipping 40.3
percent compared to the same period last year. According to
the Vietnam National Administration of Tourism, as the pandemic has been
gradually brought under control since early September, it has called on the
Ministry of Culture, Sports and Tourism to roll out tourism recovery
policies, with safety being the top priority in the new normal. Three
important factors of the recovery plan include COVID-19 vaccine coverage,
safety at tourism destinations, and optimal conditions for domestic and
foreign tourists holding vaccination certificates./. Vietnam considers ODA important capital source: Deputy PM The
Vietnamese Government continues to consider official development
assistance (ODA) as an important capital source and allocate part of it
for socio-economic development in the mid-term public investment plan, said
Permanent Deputy Prime Minister Pham Binh Minh. Minh made
the statement during a meeting between the Government and six foreign
development banks in Hanoi on September 30 to discuss their recommendations
about ODA, foreign preferential loans and a draft Decree replacing the
Government’s Decree dated May 25, 2020 on the use and management of ODA and
preferential loans provided by foreign sponsors. Deputy
Minister of Planning and Investment Tran Quoc Phuong said 2021 is the first
year to perform tasks in the mid-term public investment plan for the
2021-2025 period. Since late 2020 and especially mid-May, the COVID-19
pandemic has broken out again in localities, thus affecting the progress of
foreign capital disbursement. Data from
the Finance Ministry showed that about 287.6 million USD of foreign capital
was disbursed in the first nine months of this year, or 12.69 percent of the
yearly capital plan. Representatives
from development banks spoke highly of the Vietnamese Government’s efforts in
the process of institution building, project implementation and ODA
disbursement. Some of them suggested approving projects with regional
connectivity and on a large scale in each locality to achieve efficiency. World Bank
Country Director in Vietnam Carolyn Turk expressed her wish to cooperate
with the Vietnamese Government in big projects with greater
impacts. Minh said
several laws regarding ODA and public investment are being proposed for
amendment. The
Vietnamese Government will consider simplifying procedures while ensuring the
efficiency of projects, he said, expressed his hope that six development
banks and agencies, including the WB, ADB, JICA, KEXIM, AFD and KfW, would
consider harmonising their procedures with Vietnam’s ones. About ODA
mobilisation for 2021-2025, Minh said the Vietnamese Government built
priority areas in need of ODA and hoped that the banks will offer
loans to projects that match Vietnam’s development goals in the
period./. Vinfast & Europe's AUTOBEST enter new strategic partnership VinFast
Trading And Service Limited Liability Company and Europe's oldest automobile
rating organization - AUTOBEST - officially announced a strategic partnership
agreement today, demonstrating their mutual commitment to accelerating the
transition from internal combustion engine (ICE) cars to
environment friendly electric vehicles in the European market. AUTOBEST is
an organization representing European consumers' voices in the automotive
field, capable of assisting VinFast in identifying customer needs and
behaviour in the local market. By entering the strategic partnership with
VinFast, AUTOBEST will receive extended support to carry out its mission of transitioning
from traditional ICE cars to electric vehicles, pushing forward the clean
energy and sustainable mobility trend in Europe. For VinFast,
the partnership with AUTOBEST affirms that Europe is one of the key markets
in the company’s global expansion strategy and that VinFast EV models can
totally satisfy the standards in the world's most demanding automobile
market. Cooperating with AUTOBEST will also allow VinFast more opportunities
to participate in the organization's events and agendas, thereby rapidly
promoting its presence in Europe. AUTOBEST
Chairman Dan Vardie said: “We are amazed at the development of VinFast since
its debut at the 2018 Paris Motor Show. In its return to Europe, VinFast has
shown its vision, and clear strategy with a mission to promote smart electric
car models in one of the most advanced markets in the world. We appreciate
VinFast's approach when focusing on developing smart electric vehicles and
expect VinFast to move deeper into the European market very soon.” "With a
strategy to develop a global smart electric car brand, VinFast always chooses
to cooperate and connect with the world’s leading organizations.” - said Tran
Thi Hong Bich – CEO of VinFast Europe. “The strategic partnership with
AUTOBEST is one of the first steps in VinFast's strategy of international
cooperation and global expertise sharing. We are committed to providing smart
electric cars with trendy and classy designs, in line with the development
trends in the European and global markets.” In 2018,
VinFast first attended the prestigious Paris Motor Show and received the
"A Star is Born" award from AUTOBEST. VinFast is the first winner
of this award category, which is dedicated to newly established brands with
impressive achievements in the automotive industry. After more than 2 years,
VinFast has become one of the top automobile manufacturers in Việt Nam,
leading in all of its participating segments. This is a solid foundation for
growing into a global smart electric car company, according to company management. On March 24,
VinFast officially received pre-orders for VF e34 - the very first smart
electric car model in the Vietnamese market, with an outstanding battery
subscription policy. Nearly 4,000 pre-orders for VF e34 had been placed
within the first 12 hours. As scheduled, VinFast will officially launch its
next smart electric vehicles in global markets including the US, Canada,
Germany, France, and the Netherlands in 2022. VinFast’s
strategic partnership with AUTOBEST and participation in sustainable development
projects reaffirm its consistent and well-thought-out strategy to connect
with the most prestigious global organisations and to jointly build a
greener, smarter and more sustainable world. AUTOBEST is
a leading European motoring media organization - representing 32 European
countries. Founded in 2000, AUTOBEST has continuously created new
trends and compelling movements in the industry. It is considered an
organization that represents the views of Europeans in the automotive field,
and influences 91 per cent of vehicle purchases in Europe. In recent years,
AUTOBEST has also been a pioneer in promoting the future of the electric
vehicle industry, positioning and leading sustainable development trends. VinFast is a
member of Vingroup - the largest private conglomerate in Việt Nam. It is the
country's leading manufacturer of premium automobiles and the first
Vietnamese automotive brand to launch in global markets. Established in 2017,
VinFast’s state-of-the-art, 90 per cent automated manufacturing complex in
northern Việt Nam is one of the largest in Southeast Asia. VinFast currently
produces several models of electric scooters and buses, and will launch three
new electric SUVs - VF e34, VF e35 and VF e36 respectively of C, D and E
classes - in Việtnam, North America and Europe in 2021 and 2022. Official: Vietnam could achieve trade balance this year Vietnam
could achieve trade balance, or even a trade surplus this year, deputy
head of the Ministry of Industry and Trade’s Agency of Foreign Trade Tran
Thanh Hai told a regular press conference of the ministry in Hanoi on
September 30. In
September, the country earned 27 billion USD from exports, down 0.8
percent month-on-month and 0.6 percent year-on-year. It was also
the second consecutive month that exports declined from the same period last
year. However, the
nine-month figure still showed an 18.8 percent increase year on year to an
estimated 240.5 billion USD. Meanwhile,
import was estimated at 26.5 billion USD in September, down 3.1 percent
monthly, but the nine-month figure hiked by 30.5 percent annually to 242.65
billion USD. Given such
situation, Vietnam ran a trade surplus of 500 million USD in September and a
deficit of 2.13 billion USD in nine months of this year. According to
Hai, the current trade deficit is not a cause for concern, considering that
trade deficit dropped to 100 million USD in August after topping 2 billion
USD in July, and September saw the return of trade surplus. Vietnam’s
exports are in favourable conditions thanks to opportunities from free trade
agreements and rising market demand during year’s end, especially for goods
of the country’s strength. Therefore, if there is no major change in the
pandemic situation, export activities in southern localities are expected to
regain speed in the last quarter of the year, helping balance trade, and even
bring a trade surplus, he said./. Hanoi sees September CPI down 0.6 percent over previous month Hanoi's
consumer price index (CPI) in September decreased by 0.6 percent compared to
the previous month and increased by 2 percent over the same period last year,
according to the city's Department of Statistics. Eight out of
11 commodity groups in the price basket posted price decreases
month-on-month, with biggest reduction in the education group (3.27 percent)
because a number of schools reduced tuition fees for the 2021-2022 school
year in order to alleviate difficulties caused by the COVID-19 pandemic. Prices of
housing, electricity, water, fuel and construction materials decreased by
1.71 percent as the city implemented a reduction in electricity prices to
support customers affected by the COVID-19 pandemic. Three
commodity groups, namely culture, entertainment and tourism; food and
catering services; medicine and health services, saw their prices go up
slightly compared to the previous month. The average
CPI in the first 9 months of 2021 of the capital city increased by 1.54
percent compared to the same period in 2020. Commodity groups with high price
increases were transport (7.71 percent); housing, electricity, water, fuel
and construction materials (up 3.47 percent) and education (2.1 percent). Vietnam's import-export turnover up 24 percent in nine months
Vietnam’s
trade turnover in the first nine months of this year reached 483.17 billion
USD, a year-on-year increase of 24.4 percent, according to the General
Statistics Office. The US
remained the biggest export market of Vietnam, spending 69.8 billion USD on
imports of Vietnamese products, a year-on-year rise of 27.6 percent. China
came second with 38.5 billion USD, up 18.3 percent. The EU and ASEAN followed
with 28.8 billion USD and 20.6 billion USD, increasing by 11.6 percent and
21.2 percent, respectively. The import
turnover in the nine-month period reached 242.65 billion USD, a hike of 30.5
percent compared to the same period last year./. Turning Viet Nam's macadamias into an efficient and sustainable
industry A project is
underway to continue developing the macadamia industry in Viet Nam during the
period of 2021-2030. The Deputy
Minister of Agriculture and Rural Development Le Quoc Doanh met with the Viet
Nam Administration of Forestry and the Viet Nam Macadamia Association on the
development of the project earlier this week. A total of
18,840ha of land across 28 of Viet Nam's provinces is dedicated to growing
macadamia, mainly in the northwest and Central Highlands. Annual output is
estimated to be at 8,840 tonnes of nuts this year. The market
for these macadamia products is both foreign, in countries and territories such
as Japan, South Korea, mainland China and Taiwan, and domestic. In recent
years the macadamia industry has shown positive signs of development as both
the size and output of macadamia crops increased, creating jobs and increased
turnover for producers. Many
macadamia producers generate a stable income, which in turn promotes economic
benefits such as social development and environmental protection, especially
important in the mountainous areas of the northwest and Central Highlands
provinces. However, some
plantations can further improve their operations to increase output.
Improvements can be made in many parts of the process, including choosing
optimum sites for planting, using varieties most appropriate to the soil and
refining the processing procedure. Neglecting these corrections has led to
some farmers suffering poor yields or low-quality products. The
consumption market could also be expanded further. There is a lack of
synchronisation in policies that are designed to encourage investment from
businesses into the industry. These shortcomings need to be addressed. It is
expected that, after completion, the project will be submitted to the Prime
Minister for consideration and approval. Deputy
Minister Le Quoc Doanh emphasised that an in-depth assessment of the
situation was needed, encompassing the economic, technological and farming
practices in recent years. In addition,
Doanh suggested that clarification was needed on the adaptation, efficiency,
and land funding available to develop macadamia trees in different
localities. State budget sees over VND58 trillion surplus in nine months The State
budget saw a surplus of over VND58 trillion in the first nine months of this
year, a decrease of about VND24 trillion over the first eight months of this
year, according to the General Statistics Office (GSO). Of the
total, revenue from domestic activities reached over VND836 trillion,
equivalent to 73.8% of the year’s estimate, revenue from crude oil was
estimated at over VND27 trillion, equivalent to 118% of the year’s plan and
the remaining amount was from import and export activities. Meanwhile,
total spending was posted at over VND975 trillion, equivalent to 57.8% of the
year’s estimate, resulting in a surplus of over VND58 trillion. Previously,
during the first eight months of the year, the budget surplus was about VND83
trillion, an increase of VND21 trillion compared to the previous month. According to
the GSO, the complicated developments of the COVID-19 pandemic in many
localities nationwide, particularly in localities under social distancing
order, have affected business activities and budget revenue in the nine-month
period. Budget
spending was prioritised for the prevention and control of the COVID-19
pandemic, national defence and security, and the implementation of social
security policies. Viet Nam, Australia work towards balanced, sustainable trade Viet
Nam-Australia trade posted growth in 2021 despite the impact of COVID-19,
Director of the Asia-Africa Market Department under the Ministry of Industry
and Trade (MoIT) Le Hoang Oanh has said. She made the
remarks during the third session of a trade working group within the
framework of the Ministerial-level Viet Nam-Australia Economic Partnership
Meeting, which was recently held via videoconference by the MoIT. The growth
was attributed to the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP), to which the two countries are
signatories, she added. Ridwaan
Jadwat, First Assistant Secretary at the Australian Department of Foreign
Affairs and Trade affirmed that Viet Nam is an important trade and investment
partner of Australia, and expressed a hope to tighten bilateral relations. Amid the
complex developments of COVID-19, the two nations need to bolster
co-operation so as to devise suitable strategies to surmount difficulties, he
underlined. Two-way
trade surpassed US$8 billion in the first eight months of 2021, posting a
year-on-year increase of 50.7 per cent, thereby making Australia among ten
leading trade partners of Viet Nam. However, as
Viet Nam recorded a trade deficit of nearly $2.5 billion in the period, the
two countries need to foster bilateral trade development in a more balanced
and sustainable manner. At present,
Viet Nam’s shipments of fresh shrimp and fruits to Australia remain stagnant,
although the exports of such products have been tabled during the working
group’s 2020 session as well as meetings of the countries’ ministers. Oanh urged
the Australian side to speed up procedures to grant permission for Viet Nam’s
fresh shrimp to enter Australia and provide Viet Nam with technical support
in terms of disease prevention in shrimp farming. In addition,
Viet Nam hopes that Australia will soon complete necessary steps to open its
door for passion fruit from the Southeast Asian nation, paving the way for
other fruits like rambutan and star apple. The
Vietnamese side also called on the Australian counterpart to closely work
with the former’s Ministry of Agriculture and Rural Development to allow the
use of alternatives to glyphosate in lilium cultivation before exporting to
Australia. At the
event, the countries agreed to promote investment in mining, as it is viewed
as a strategic field of potential, especially of charcoal, iron and liquefied
natural gas. Given
numerous firms of Viet Nam are keen on investing in Australia in such fields,
the Vietnamese side asked to receive information and regulations in mining
for foreign investors, to which the Australian side agreed. Vinh Long works to support business in local IPs amid
COVID-19
The Mekong
Delta province of Vinh Long has applied various measures to support
pandemic-hit enterprises to recover and develop business and production,
especially those in industrial parks. Currently,
40 out of 46 local businesses in Vinh Long industrial parks are applying the
“three-on-site” and “two-on-site - green zone” models, with nearly 7,300
workers, accounting for about 16 per cent of total labourers working in local
firms. According to
Vice Director of the provincial Department of Planning and Investment Luong
Trong Nghia, the province will consider allowing the firms that have halted
their operations or applied the “three-on-site” models to switch to the
“two-on-site - green zone” model, maintaining 10-25 per cent of labourers
working on site. Meanwhile,
the province has ensured quick processing of procedures supporting foreign
experts and labourers to enter the province, while assisting local firms in
recruiting and receiving labourers returning to work. At the same
time, Vinh Long has sped up vaccination among workers in businesses applying
COVID-19 prevention and control models in local industrial parks. So far,
nearly 5,000 labourers have received the first vaccine shots. The province
plans to increase trade promotion activities, connecting supply-demand
sources and assisting local firms in selling goods on e-commerce platforms. In the first
nine months of 2021, businesses in local industrial parks earned over VND14
trillion (US$612.4 million) in revenue, up 2.81 per cent year on year. Their
industrial production value hit over VND9.62 trillion ($420.86 million), a
year-on-year rise of 13.58 per cent, while their export revenue reached $335
million, nearly 70 per cent of the yearly target. According to
Pham Thanh Khon, head of the Vinh Long Industrial Park Management Board,
local firms have faced many difficulties due to COVID-19, including a
shortage of production materials and labourers, affecting their
operations. Power company Truong Thanh list more 10.8 million shares on HoSE Truong Thanh
Development and Construction Investment Joint Stock Company (TTA) has just
approved a plan to list additional shares on the Ho Chi Minh Stock Exchange
(HoSE). The company
will list an additionally 10,799,904 dividend-paying shares, bringing the
total number of listed shares on the exchange to nearly 145.8 million shares. In the first
6 months of 2021, TTA achieved revenue of VND331.1 billion (US$14.5 million),
profit after tax of VND76.7 billion, up 88.6 per cent and 95.7 per cent
respectively compared to the first 6 months of 2020. In 2021,
Truong Thanh sets a revenue target of VND680 billion, profit after tax of
VND150 billion, up 37 per cent and 16.2 per cent, respectively compared to
2020. After the first half of 2021, the business completed 51.1 per cent of
the annual profit plan. Closing the
session on Thursday, TTA stock was priced at VND14,850 per share, down 30 per
cent compared to the closing session of January 4. In recent
years, in parallel with the efficient operation of hydropower plants, Truong
Thanh has expanded to develop clean energy projects such as solar power and
wind power. Vietnam still sees optimistic economic outlook in 2022: scholar Vietnam's
economy has slowed down due to the prolonged impacts of the COVID-19
pandemic, but there are still many optimistic forecasts about the country’s
economic outlook in 2022, Dr Tran Thi Hong Minh, Director of the Central
Institute for Economic Management (CIEM), told the Vietnam News Agency (VNA). Minh called
attention to a number of factors that will affect the Vietnamese economy in
2022, including the capacity to control the pandemic, the capacity to ensure
production recovery, and the capacity to keep pace with the implementation of
an extensive programme on economic recovery and development until 2023. This
programme not only helps remove difficulties and creates motivation in the
short term, but also ensures macroeconomic stability and lays the foundation
for stronger economic institutional reforms in the next 3-5 years, she added. However, in
order to achieve firm economic recovery in 2022, Minh stressed the need to
continue giving priority to effectively preventing and controlling the
COVID-19 pandemic, along with speeding up the vaccination process. She proposed
building and implementing early a master programme on economic recovery and
development during and after the pandemic in three phases as specified in
research outcomes announced by the CIEM earlier this year. Accordingly,
the first phase will last until the first quarter of 2022, during which
priority will be given to pandemic prevention and control in combination with
macro-economic policies to help businesses survive the difficult situation. The second
phase will last through 2023, during which macroeconomic policies should be
relaxed to stimulate demand for the economy and create momentum for
businesses. In the third
phase in the years after 2023, macroeconomic policies will be normalised, the
macroeconomic foundation strengthened and more intensive economic
institutional reform promoted. Minh also
emphasized the importance of applying flexible macroeconomic policies in line
with scenarios to cope with adverse developments of the world and regional
economies; diversifying exports; and speeding up the implementation of
support packages for people and businesses./. Thai major beverage firm hails Vietnam’s COVID-19 control
measures CEO and
President of Thai Beverage (ThaiBev) Thapana Sirivadhanabhakdi has spoken
highly of the Vietnamese Government’s measures to curb the spread
of COVID-19 and pledged to support Vietnam in the fight. He made the
remark during a working session with Vietnamese Ambassador to Thailand Phan
Chi Thanh on September 29 to discuss methods to bolster investment of the
Thai company in Vietnam amid COVID-19. Sirivadhanabhakdi
informed the Vietnamese diplomat on ThaiBev’s investment strategy in Vietnam
as well as its measures to maintain operations against the backdrop of the
ongoing pandemic. He affirmed
that the Thai company will continue its long-term investment in Vietnam, not
only in beverage but also other fields of agriculture, real estate, tourism
and finance-insurance. It will work
to attract major investors from developed countries to Vietnam so as to set
up partnership for green and sustainable development targets. On the
occasion, ThaiBev announced its decision to present 3 million surgical masks
worth about 10 billion VND (about 440,000 USD) manufactured by the firm to
the Vietnamese Government. The Thai
firm has rolled out activities to support the Vietnamese community in
Thailand in the fight against COVID-19. For his
part, Ambassador Thanh assured that the Vietnamese Government is exerting
efforts in containing the spread of COVID-19 and creating favourable
conditions for businesses in the ‘new normal’. The
Vietnamese Government stands ready to receive recommendations from and work
with Thai companies operating in Vietnam amid difficulties caused by the
pandemic, as well as to discuss with ThaiBev measures to maintain
and recover its operation in Vienam, the diplomat stated. Firms of TCC
Group, ThaiBev’s parent company, previously donated 1 million USD to
Vietnam’s COVID-19 vaccine fund and 3,000 welfare packages totalling 900
million VND./. Major opportunities for Vietnam’s farm exports to UK
Vietnam
has great opportunities to export rice, fruits and other agricultural
products to the UK, one of the world’s 10 largest markets in the world, heard
a recent conference to promote Vietnamese farm produce in the UK. The event
entitled “Discovering tropical specialties” aimed at discussing the
potential, requirements, and standards of the UK market for imported
agricultural products. It was held together with the introduction of
Vietnamese agricultural products through numerous videos on agricultural
production in the country under global GAP standards. British
experts and businesses also answered questions from Vietnamese exporters
about the UK market. Vietnamese
agricultural products have been highly evaluated for their quality, but many
enterprises still face challenges penetrating into the European market in
general and the UK in particular./. Dak Nong to accelerate land clearance for wind power projects Dak Nong
People’s Committee has promised to thoroughly deal with bottlenecks in land
clearance to unlock wind power project development. Notably, the
People’s Committee of Dak Song district have made an effort to clear land for
wind farms, however, the coordination remains lacking between the local
authorities and investors. Besides, land management is not strict enough, as
a result of which numerous illegal building works were implemented in the
corridor of high voltage lines. Chairman
Muoi asked the People’s Committees of Dak Song, Tuy Duc, and Dak R’lap
districts to co-operate with investors on land clearance. The investors have
to complete compensation and support impacted households. Local authorities
have been directed to crack down on illegal activities, including houses and
other buildings constructed on the project land. Chairman
Muoi asked localities to ensure land for project implementation and approve
the development of 220kV and 35kV lines. Dak N'drung
Dak Nong Energy One Member Co., Ltd., Nam Binh Wind Farm JSC, and Dak Nong
Quang Minh Wind Power Ltd. have been directed to complete the final
procedures related to construction and land. These investors also have to
complete land lease procedures soon. The
Department of Natural Resources and Environment has been tasked with
proposing specific policies and mechanisms to deal with unprecedented
difficulties facing wind farm projects in Dak Song. The proposals will have
to be completed before October 5. According to
a report by Dak Nong People’s Committee, numerous wind farms are running
behind the construction schedule due to the challenges in land clearance. For
instance, a 430MW wind farm with a total investment capital of VND15 trillion
($652.17 million)is scheduled to be put into operation this November,however,
construction work is only 20-30 per cent complete due to land clearance,
compensation, and land lease issues. At present,
six wind farms are being constructed in the province, including Dak N’Drung
1, Dak N’Drung 2, and Dak N’Drung 3 with the total capacity of 300MW, Asian
Dak Song 1 (50MW), Dak Hoa (50MW) and Binh 1 (30MW). Experts define legal risks for local exporters in e-commerce
transactions Though
e-commerce channels are considered one of the best solutions to sell local
products amid the pandemic, legal risks from the activities remain a concern. According to
experts during an online seminar titled "Solutions for exporters in the
digital transformation process" organised by the Vietnam International
Arbitration Center (VIAC) and the Vietnam E-commerce Association (VECOM)
yesterday, the pandemic had a negative impact on economic development
nationwide, especially the manufacturing industry. However it also drove
local digital transformation and created many breakthroughs in smart manufacturing,
while businesses have found new directions by applying digital transformation
in their production activities. Chau Viet
Bac, Deputy Secretary-General of VIAC, said that cross-border e-commerce in
2021 will increase by 25.7 percent from 2020, adding traditional import and
export transactions were gradually replaced by websites and e-commerce
platforms. Bac said:
"Contracts using electronic signatures also increased by 17 percent
compared to before the pandemic,” adding “timely digital transformation will
help businesses maintain operations.” Nguyen Ngoc
Dung, Vice President of VECOM, said the trend of global cross-border
e-commerce from 2014-2020 has increased from 17 percent to 41 percent and
global cross-border e-commerce transactions in 2021 to date was estimated at
1.25 trillion USD. At the same
time, he said Vietnamese e-commerce platforms are gradually developing, with
many high-value products being offered for sale online such as cars,
electronic equipment and technology. VECOM's
leader added the world's largest e-commerce platform Amazon has invested in
and supported Vietnam by using Vietnamese domain names and Vietnamese
language, saying: "This shows that the Vietnamese market has potential
for development. Many Vietnamese products such as kitchenware and traditional
products are popular and have sold well on Amazon.” In Vietnam,
e-commerce was becoming a more and more effective channel for local products,
especially agricultural ones, with Ben Tre coconut sold on Lazada, Dong Thap
lotus sold on Tiki and clean dragon fruits of cooperatives in Binh Thuan sold
online too. Dung said
many farmers didn't think they could sell dragon fruit with livestreams, but
after training, they started to gain orders both domestically and from
abroad. Dung,
however, mentioned that e-commerce in rural localities, the production hubs,
only accounted for 30 percent of the e-commerce structure while the remaining
70 percent of growth was in big cities of Hanoi and Ho Chi Minh City, adding:
“It is necessary to narrow the gap.” Bac said:
“An effective digital transformation process must have a reasonable strategy
and action, especially paying attention to the legal mechanism to be safe and
effective” Nguyen Tuan
Hoa, arbitrator of VIAC, said that businesses that wanted to convert
digitally for export needed to know how to approach platforms and have
reasonable solutions. He said major requirements to be met were to have a
product traceability system and maintain the quality and competitiveness of
products. Hoa said in
the context that the local production and business process was mainly
manually produced with low labour productivity while production was still
consuming raw materials and energy, causing environmental pollution, “things
must be changed”. Hoa said the
future-oriented production process must be intelligent automatic production,
high labour productivity, low consumption of raw materials and energy,
especially to improve the customer experience. To do this,
Hoa said: “It is necessary to have digital platforms to develop
physical-digital systems, digital infrastructure, digital policies, digital
human resources. "Digital
transformation is a revolution in every business where they must have
pioneering leaders, connect experts, develop new production methods,
integrate technology solutions and have a data management system," the
expert said. Hoa
continued: “In the near future, the Government will issue a National Strategy
on the development of the digital economy and digital society. In the strategy,
there is a plan to develop a team of consultants for digital transformation,
advising all industries and professions." Nguyen Trung
Nam, Executive Director of Tinh Tú Associates Law Firm (EP Legal), said that
there are many potential inadequacies and risks in commercial activities with
the element of digitisation. Nam
considered one as identity risk as it would be more difficult to verify the
identity of a partner, which could lead to illegal activities such as money
laundering and forging documents. Nam added:
"Also, gathering evidence in the event of a dispute is also difficult.
Data can be difficult to access or inaccessible. In addition, it can be
deleted, overwritten, encrypted or hidden," he said. Therefore,
he said e-commerce transactions need to pay attention to verify the
electronic identity and find information about the trading floor of exporting
goods, adding: “It is necessary to pay attention to customs and tax
procedures and to note the separate regulations of each e-commerce platform.” "VIAC
encourages the parties to agree on sessions, including preliminary meetings
and online dispute resolution through available platforms," he said./. Wide room for Vietnamese agricultural products to be exported to
UK Vietnam has
great opportunities to export rice, fruits and other agricultural products to
the UK, one of the world’s 10 largest markets with an annual food import
turnover of more than 65 billion USD, heard a recent conference to promote
Vietnamese farm produce in the UK. The event,
organised by the Embassy of Vietnam in the UK on September 28 under the theme
‘Exploring tropical specialties’, attracted the participation of
representatives from the UK-ASEAN Business Council (UKABC), South East Asian
Trade Facilitation Organisation (SEATFO), businesses in the UK and more than
100 Vietnamese exporters of agricultural products. The
participants discussed the potential, requirements and standards of the UK
market for imported agricultural products. They were also introduced to
various Vietnamese farm produce. Speaking at
the event, Vietnamese Ambassador to the UK Nguyen Hoang Long said that
Vietnam-UK bilateral trade is expected to see remarkable growth after the
UK-Vietnam Free Trade Agreement (UKVFTA) was signed in December 2020. He stated
that bilateral trade in agriculture has great potential for development as
Vietnam has an advantage in terms of agricultural products while the UK is a
large market for these types of products. While giving
advice to Vietnamese exporters, CEO of UKABC Ian Gibbons said businesses need
to carry out thorough market research to ensure their products are suitable
and competitive on the import market. He also
stressed the importance of building trust with UK partners through developing
long-term and sustainable relationship. Meanwhile,
SEATFO Director John Gavin pointed out that it is important for businesses to
ensure their products meet market requirements while providing good customer
services and on-time delivery. British
businesses also value partners who uphold environmental protection and
participate in social activities, he added./. US-funded project to boost local economic growth through
technological transformation The US
Agency for International Development (USAID) and the Ministry of Planning and
Investment have launched the Vietnam Workforce for an Innovation and Start-up
Ecosystem (WISE) project. After
decades as one of the world’s fastest-growing economies, the country’s industry
and services sectors are entering a new phase of growth propelled by the
brain power of an ever-expanding youthful workforce. With
Industry 4.0 at the country’s doorstep, it creates immense opportunities and
challenges to upskill and reskill the local workforce to take advantage of
new technologies, which in turn will advance and build new competitive
advantages. Whilst COVID-19 has accelerated the movement to digital
businesses and transformation, the pandemic has made it even more imperative
to retool workers for the digital economy moving into the new normal. At the
launch of the event, Ann Marie Yastishock, mission director of the
USAID/Vietnam, said, “USAID WISE showcases the U.S. Government’s commitment
to partnering with Vietnam along its economic transformation, and will help
advance this strategy, which centers on mastering and integrating new
advanced technologies, spurring innovation, and accelerating the growth of
the digital economy.” USAID WISE
will therefore support scalable, market-driven, and sustainable models
in which to prepare the nation’s workers for Industry 4.0 via partnerships
with the private sector. The project will build basic digital literacy,
provide Industry 4.0 career pathways information to make smart talent
investments, offer information and communication technologies, upskilling and
reskilling for lifelong learning, and explore innovative financing mechanisms
for relevant skills acquisition. The Ministry
of Planning and Investment’s National Innovation Center (MPI/NIC) will be the
key partner of the Vietnamese Government for USAID WISE. The project will
build the capacity of the MPI/NIC and associate Government agencies in human
resource development as a means of enabling them to work effectively on
upskilling and reskilling the workforce for innovation. Equally
important, the USAID WISE will also support Vietnamese efforts to emphasise
Industry 4.0 skills development opportunities to all demographics by devoting
a special focus on women and vulnerable groups in order to help narrow the
country’s digital divide. This priority is consistent with the USAID Digital
Strategy and will deliver a long-term impact in the nation through an
information and communication technology sector that features leaders,
coders, designers, and technicians that advance the use and development of
Industry 4.0 as it takes root across the Vietnamese economy. Zuru Group keen on investment venture in Nghe An province Kiwi toy
manufacturing and consumer packaged goods firm Zuru Group is considering an
investment venture in Nghe An, the largest province in Vietnam’s
North-Central Coast. After the
meeting, Bui Duy Dong, director of NAP shared that the foreign partner was
keen to know about Nghe An province’s natural resources, human resources, as
well as the state of infrastructure at the province's industrial zones (IZs)
and related policies. The investor also asked about investment attraction
policies. According to
a Zuru Group representative, the group has developed an extensive network of
26 representative offices around the world and posted nearly $1 billion in
revenue in 2020. Since 2020,
despite COVID-19, a sharp rise was spotted in the number of projects asking
for business expansion and capital addition in Nghe An province. In Nghe An
province, the foreign partner envisages building a factory that manufactures
prefab materials for smart houses following Industry 4.0 standards, with an
estimated investment value reaching $400 million. Zuru Group
aims to disrupt the global housing market with smart, eco-friendly homes at
competitive prices. It has been working on the project since 2007 with the
target of selling ready-made houses to the world. Based on the
investor's criteria, NAPC presented them with two potential sites for the
project: a 40-hectare plot at the planned area for Dong Hoi deep-water port
and associated logistics facilities in Hoang Mai town and a 100ha space at
Hoang Mai II IZ. In recent
months, Nghe An has been working with several major local and foreign
partners like Japan’s Mitsui Sumitomo Banking Corporation, SunGroup, and Nha
Trang Bay Investment and Construction JSC to accelerate investment
procedures. Currently,
one of the eminent investment destinations in Nghe An is Vietnam Singapore
Industrial Park (VSIP) Nghe An which has lured 30 investment projects
(including 14 by foreign investors) over 131.14ha of leased space, employing
more than 40,000 local labourers. 20 of these
projects are already operational, providing jobs to over 11,800 labourers.
Three other investors are building factories and the remaining seven have
finalised investment procedures and are about to begin construction. Since 2020,
despite COVID-19, a sharp rise was spotted in the number of projects asking
for business expansion and capital addition in Nghe An province. Aside from
luring in the $200 million project from Taiwanese investor Ju Teng Group to
build an electronic component manufacturing plant in Hoang Mai I IZ, in the
first nine months this year, Nghe An has granted new investment certificates
to 77 projects, and greenlit capital additions for 95 projects with a total
new committed and supplemental capital of VND13.789 trillion ($600 million),
up 19 per cent in the number of projects and more than triple in total
investment value. Opportunities for Vietnamese agricultural products in Thailand Despite
being a powerhouse in exporting agricultural products, Thailand also has huge
demand for imported fresh fruit and vegetables. There is an opportunity for
Vietnamese agricultural exporters to explore this market worth billions of US
dollars. In 2020,
Thailand exported fresh and processed vegetables and fruit worth more than
US$4.2 billion. With relatively similar climate and geographical conditions,
Thai and Vietnamese agricultural products share many similarities. However,
Thai products often have a higher level of competitiveness. However,
Commercial Counselor of the Vietnamese Embassy in Thailand Tran Thanh My
affirmed that Thailand has the potential to be a significant export market
for Vietnamese enterprises. Although Thailand exports many agricultural
products, the country also imports a large amount of vegetables, tubers and
fruits. Thailand
imported more than US$2.6 billion worth of fresh and processed vegetables and
fruit in 2020. Meanwhile, Vietnam has several strong products that Thailand
cannot compete with, such as lychee and dragon fruit. Many Thai
enterprises have long imported dragon fruit and lychee from Vietnam to sell
in large supermarket systems. They also import agricultural raw materials to
Thailand for processing. Attending
the 5th Vietnamese Goods Week in Thailand – Udon Thani 2021 organised by the
Vietnamese Embassy in Thailand in collaboration with Central Group, we
witnessed the preference of Thai consumers for Vietnamese agricultural
products. Stalls selling lychee, dragon fruit, and coffee always attracted a
large number of Thai customers seeking information and buying products. The Bac
Giang lychee, although its price is two to three times higher than that of
Thailand, still won favour in this market. Wanchai, a Thai customer said:
“Although the price is a bit expensive, I find Vietnamese lychee very
delicious. Vietnamese lychee exported to Thailand has become a specialty.” This event
is one of a series of trade promotion activities the Vietnamese Embassy’s
Trade Office organised in recent years to promote the export of Vietnamese
agricultural products to Thailand. Because of the COVID-19 pandemic,
Vietnamese enterprises could not be present in Thailand, but they still sent
their products to the event. The Vietnam Trade Office affirmed that such
events have achieved very positive initial results. Chief
Merchandising Officer of Central Food Retail Emmanuel Couronne said: “Central
Food Retail has imported Vietnamese agricultural products into Thailand since
2006 including dragon fruit and sweet potatoes. We have brought lychee to the
Thai market since 2017. Currently, we are negotiating with Vietnamese
enterprises to import more agricultural products.” Besides Thai
customers, Vietnamese goods are also consumed by another group of , the
Vietnamese Thai community, according to Tran Thanh My. “We chose Udon Thani
to hold this Vietnamese Goods Week as there is a large Vietnamese Thai
community here. This is a customer group with high potential because they
have great demand for Vietnamese products and they also have many small shops
and supermarkets to distribute Vietnamese products,” My added. She noted
that although Vietnamese agricultural products have good quality and
competitive prices, they have yet to achieve any great advantage over Thai
products. “Vietnamese businesses need to learn more carefully about market
demand to meet the set standards. That means we should export and sell what
the market needs but not what we have,” My added. Emmanuel
also shared that “For Vietnamese agricultural products, we choose products
that have strengths and do not face much competition from Thai products. At
the same time, we focus on importing value-added products such as
agricultural products with geographical origin, or with advantages such as
high-class flavors or out-of-season fruits.” He said that
Vietnamese businesses need to focus on improving food safety and complying
with Thai standards as well as ensuring continuous supply to expand the
presence of Vietnamese products in the Thai market. According to
Tran Thanh My, when exporting goods to Thailand, Vietnamese enterprises need
to find reliable partners and agencies to assist them in registering the
import and circulation of these products in Thailand. The import process also
has many other regulations and the Trade Office of the Vietnamese Embassy is
always ready to support Vietnamese enterprises. Conference seeks to revive economy with long-term measures The Ministry
of Planning and Investment (MPI) held a consultation conference in
Hanoi on October 1 on its draft programme on economic recovery and
development in combination with improving internal capacity and resilience of
the economy for the 2022-2023 period. Speaking at
the event, Minister of Planning and Investment Nguyen Chi Dung said the
Government has issued a number of corporate support policies and measures,
but most of them are short-term while there is not any comprehensive or
long-term programme to gradually recover the economy and spur development
after the pandemic is put under control. The MPI’s
programme aims to help Vietnam avoid missing opportunities when entering the
new normal, Dung said. Deputy
Minister of Planning and Investment Tran Quoc Phuong said Vietnam needs to
learn from lessons in pandemic prevention and control to revive the economy,
focusing on promising fields such as processing industry, logistics and
tourism to make breakthroughs. He suggested
combining both short and long-term goals, improving the capacity of workers
and providing support for firms based on order of importance and priority. The ministry
also wished to collect feedback to develop green economy and step up the
disbursement of public investment capital, Phuong said. He outlined
eight categories of measures, including controlling the pandemic, improving
the capacity of medical system, maintaining macro-economic stability,
controlling inflation, continuing with fiscal and monetary policies, and
ensuring national financial safety. Others
include stepping up administrative reform, stimulating domestic consumption,
facilitating digital transformation, attracting foreign investment, and
improving workforce quality to meet requirements of the fourth industrial
revolution. Country
Director of the Asian Development Bank in Vietnam Andrew Jeffries said
Vietnam’s major trade partners are quickly recovering while domestic
vaccination coverage is increasing, thus contributing to promoting growth. He proposed
Vietnam actively tap free trade agreements to boost exports, join the global
supply chain more deeply. At the same time, the country should re-open in a
safely manner, ensure healthy relations between banks and enterprises and
take caution with bad debts./. Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes |
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