VIETNAM BUSINESS NEWS OCTOBER 30
09:01 The World
Economic Forum (WEF)’s Country Strategic Dialogue on Vietnam, which was held
in both in-person and videoconference on October 29, was a success, according
to WEF President Borge Brende. The World
Economic Forum (WEF)’s Country Strategic Dialogue on Vietnam, which was held
in both in-person and videoconference on October 29, was a success, according
to WEF President Borge Brende. Prime
Minister Pham Minh Chinh on October 29 co-chaired the WEF’s Country
Strategic Dialogue on Vietnam 2021 for the first time via
videoconference at the invitation of WEF Founder and Executive Chairman Klaus
Schwab. Themed
“Public Private Partnership - The Key Driver for Comprehensive Recovery and
Sustainable, Resilient and Innovative Growth”, the dialogue saw the participation
of WEF President Borge Brende, ministers and leaders of Vietnamese agencies
along with 70 global and regional leaders of the world’s leading groups and
businesses In an
interview granted to Geneva-based Vietnam News Agency correspondents, Brende
said the Vietnamese Prime Minister’s message on the country’s development
plans and targets has received positive response from the business community. The WEF president
said he had received messages from many CEOs saying they were impressed by
the Vietnamese Government leader’s remarks and answers to questions raised at
the event. He added that it showed the great interest of the business
community in the dialogue. Brende said
Vietnam has been an important country for the WEF, and the cooperative ties
between the WEF and the country have been developing well, particularly after
the WEF-ASEAN 2018 hosted by Vietnam which was described as a great
success. He said it was the reason why the WEF invited Vietnam to co-chair
the important dialogue this time. Vietnam has
taken measures for safe and flexible adaptation to the COVID-19 pandemic,
implemented a vaccine strategy, and has entered a period of economic and
production recovery with the pandemic being contained, the WEF president
said. According to him, the country’s long-term policies reiterated the
Government’s aspirations, vision and efforts for development. He further
said Vietnam is considered a dynamic economy and a hub in the regional and
global value chain. The country has demonstrated its commitment to renewal
and reform through policies to promote new growth driving forces such as
green economy, smart solutions and renewable energy. The WEF will
continue to accompany Vietnam in promoting PPP and organize regular
cooperation programmes and annual activities in Davos, he affirmed./. Economic restructuring plan under examination at legislature on
October 30 National
Assembly deputies are engaging in online debate on a draft plan on
restructuring the economy for 2021-2025 on October 30, the last working day
of the first phase held in the form of videoconference of the second session
of the 15th legislature. Presenting
the draft plan on October 29, Minister of Planning and Investment Nguyen Chi
Dung said the scheme aims at creating breakthrough changes in the growth
model in the direction of raising the national economy’s productivity,
quality, competitiveness, resources use efficiency, self-reliance and
adaptability. The draft
scheme listed six groups of targets and specific indicators, with the
addition of indicators on developing types of markets, restructuring economic
space, and developing the digital economy and innovation. In the
afternoon October 30, the legislature will look into the draft national land
use plan for 2021-2030 with a vision to 2050, and the draft five-year land
use plan for 2021-2025. The land use
plans are designed with the goals of allocating land to sectors and
localities in accordance with socio-economic development needs while ensuring
national defence-security, environmental protection and climate change
adaptation. The land allocation must also meet the demand for infrastructure
development, industrialization and urbanization while protecting ecologies
and maintaining 3.5 million hectares of rice fields and a stable forest
coverage rate of 42-43 percent. HCM City’s CPI down 0.41 pct in October Ho Chi Minh
City’s consumer price index (CPI) in October went down 0.41 percent
month-on-month and moved up 2.02 percent year-on-year, reported the municipal
Statistics Office on October 29. In the
ten-month period, the index rose by 2.52 percent annually. Four
categories saw decrease in prices in October, including dining services down
0.8 percent; housing, electricity, water, fuels and construction materials
down 1.53 percent; household equipment and appliances 0.41 percent; and posts
and telecommunications 0.1 percent. The
remaining posted higher prices, with transport seeing the highest rise of
2.14 percent. During the
month, gold prices also hiked by 0.63 percent monthly and 2.6 percent yearly.
The USD prices inched up 0.13 percent month-on-month and down 0.21
percent year-on-year./. Minister presents national land use planning for 2021-2030 Minister of
Natural Resources and Environment Tran Hong Ha presented a report on
the draft national land use planning for the 2021-2030 period with
a vision to 2050, the 2021-2025 land use plan, and a verification report by
the NA’s Economic Committee, during the ongoing second session of the 15th
legislature on October 29. Minister Ha
said the draft planning and 2021-2025 land use plan aim to ensure enough land
for the country’s socio-economic development strategy, thus laying a
foundation to turn Vietnam into a high-income developed nation by 2045. Chairman of
the NA’s Economic Committee Vu Hong Thanh said the two drafts
basically meet requirements in the Law on Planning. He asked the
Government to drastically direct ministries, agencies and localities to
realise the Resolution on the national land use planning for 2021-2030 after
it is approved by the legislature. To prevent
overlapping in land planning, the committee suggested the Government urge
localities to promptly submit their own plans, and explain why protective
forest coverage in the north central and coastal central regions and the
southeastern region are reduced while they are hardest hit by disasters and
flooding each year. As illegal
deforestation and use of forestry land remain rampant, the committee proposed
the Government offer measures to closely control forest land, especially
natural forests. The
Government was also asked to report to the legislature the use of rice
farming land after they are used for other crops for 2011-2020./. CPI in October down 0.2 percent, may surge in remaining months:
GSO
The Consumer
Price Index (CPI) in October was down by 0.2 percent compared to
September but rose by 1.81 percent compared to the same period last year,
according to the General Statistics Office (GSO). The CPI in
the two remaining months of the year may surge as factors driving the figure
down during social distancing will no longer have any impacts. In October,
food and catering services decreased by 1.28 percent from the previous month
largely owing to drops of 0.25 percent and 9.38 percent in the prices of rice
and pork, respectively, thanks to abundant supplies. Housing and
construction materials fell by 0.26 percent, due to a cut in housing rental
rates to support people at the time when social distancing order
remained in place to stamp out the spread of COVID-19. Electricity
prices were also reduced because the arrival of autumn affected demand for
power and water compared to the previous month. Post and telecommunications
inched down 0.04 percent. Among eight
groups of commodities and services experiencing rising prices last month,
transport witnessed the highest month-on-month increase of 2.51 percent
attributed to the fuel price hike. Education
inched up 0.25 percent against September. The GSO also
pointed out that core inflation in October saw a month-on-month decline of
0.17 percent but a year-on-year rise of 0.5 percent. In the first 10 months,
the figure increased 0.84 percent compared to the same period last year,
reflecting price movements driven by the hikes of food, petrol and oil and
gas prices. Core
inflation in October and the first 10 months of 2021 compared to the previous
year stood at the lowest level since 2011. As
November-December will be a time to focus on production, travel and
procurement serving for major holidays, CPI in tourism services and
entertainment is projected to see growth./. Dutch firms seek logistic cooperation opportunities with Vietnam Many Dutch
businesses attending at a webinar on October 28 expressed their interest in
the Vietnamese market and wanted to seek logistic cooperation opportunities
with Vietnam. The “Vietnam
– Netherlands Logistics Webinar: Identifying Opportunities & Connecting
Partners” was jointly held by the Agency of Foreign Trade under the Ministry
of Industry and Trade (MoIT) and the Vietnamese Embassy in the Netherlands. At the
event, Permanent Vice President of the Vietnam Logistics Business Association
(VLA) Dao Trong Khoa suggested the two countries cooperate in the supply of
logistic services in the EU-Vietnam Free Agreement (EVFTA) area. The
Netherlands would serve as a gateway for Vietnam to access the European
market. Meanwhile, Vietnam is regarded as an entrepot for Dutch exports to
penetrate the Association of Southeast Asian Nations (ASEAN), he said. Khoa
encouraged Dutch logistics enterprises to invest in infrastructure
development, especially in logistics centres, in Vietnam. He also suggested
Vietnam learn from the Netherlands’ experience in logistics development in
agriculture and green logistics at seaports. Le Quang
Trung, Deputy General Director of the Vietnam Maritime Corporation (VIMC),
also proposed Vietnam and the Netherlands coordinate and build IT platforms
to provide chain solution packages for clients. Tran Thanh
Hai, Deputy Director of the Agency of Foreign Trade, said Vietnam’s
export-import turnover exceeded 500 billion USD in 2019. In the first nine
months of this year, despite impacts of the COVID-19 pandemic, the figure
still reached 483 billion USD, up 24.4 percent from 2020. He
highlighted the high growth rate of the domestic logistics sector over the
past years, at 14-16 percent, with about 30,000 businesses operating in this
field. The official
expressed his hope for solutions to improve Vietnam’s human resources quality
in logistics, and optimise the domestic transport system, especially in
seaports./. Dutch firms seek logistic cooperation opportunities with Vietnam Many Dutch
businesses attending at a webinar on October 28 expressed their interest in
the Vietnamese market and wanted to seek logistic cooperation opportunities
with Vietnam. The “Vietnam
– Netherlands Logistics Webinar: Identifying Opportunities & Connecting
Partners” was jointly held by the Agency of Foreign Trade under the Ministry
of Industry and Trade (MoIT) and the Vietnamese Embassy in the Netherlands. At the
event, Permanent Vice President of the Vietnam Logistics Business Association
(VLA) Dao Trong Khoa suggested the two countries cooperate in the supply of
logistic services in the EU-Vietnam Free Agreement (EVFTA) area. The
Netherlands would serve as a gateway for Vietnam to access the European
market. Meanwhile, Vietnam is regarded as an entrepot for Dutch exports to
penetrate the Association of Southeast Asian Nations (ASEAN), he said. Khoa
encouraged Dutch logistics enterprises to invest in infrastructure
development, especially in logistics centres, in Vietnam. He also suggested
Vietnam learn from the Netherlands’ experience in logistics development in
agriculture and green logistics at seaports. Le Quang
Trung, Deputy General Director of the Vietnam Maritime Corporation (VIMC),
also proposed Vietnam and the Netherlands coordinate and build IT platforms
to provide chain solution packages for clients. Tran Thanh
Hai, Deputy Director of the Agency of Foreign Trade, said Vietnam’s
export-import turnover exceeded 500 billion USD in 2019. In the first nine
months of this year, despite impacts of the COVID-19 pandemic, the figure
still reached 483 billion USD, up 24.4 percent from 2020. He
highlighted the high growth rate of the domestic logistics sector over the
past years, at 14-16 percent, with about 30,000 businesses operating in this
field. The official
expressed his hope for solutions to improve Vietnam’s human resources quality
in logistics, and optimise the domestic transport system, especially in
seaports. Da Nang city resolved to revive tourism sector Da Nang
city, a large tourist magnet in the central region, is taking various
measures in an effort to revive tourism in the new normal, after a long
hiatus caused by the fourth wave of COVID-19 infections. The tourism
recovery plan is divided into two phases, with the first implemented right in
the fourth quarter of 2021 and the second in 2022 - 2025, Deputy Director of
the municipal Tourism Department Nguyen Xuan Binh told a teleconference on
October 28. Da Nang has
resumed tourism activities to serve local visitors since the start of
October, and it plans to begin welcoming tourists from other localities back
in November. The city
will reopen to international travellers in accordance with the plan and
guidance issued by the Government and relevant ministries and sectors, he
noted, elaborating that it will receive foreign visitors through package
tours, charter flights, and regular commercial flights on a trial basis from
next month. Tourism
promotion plans have also been launched by the department, conveying the
messages of “Da Nang Now Open” in Phase 1 and “Enjoy Da Nang” in the
following one. On this
occasion, the Tourism Department debuted VR360 application at
https://danangfantasticity.com, which promises interesting experiences for
visitors who wish to explore the city online. At the
teleconference, the city’s Centre for Tourism Promotion and the Da Nang
branch of the Viettel Military Industry and Telecoms Group signed a
cooperation agreement on boosting digital transformation in tourism
promotion. The
municipal Tourism Association, the Da Nang Tourism Promotion Fund, and many
other agencies and travel companies also inked a deal to reactivate travel
activities, showing their determination to revitalise the sector in the new
normal. Tran Phuoc
Son, Vice Chairman of the municipal People’s Committee, said Da Nang views
tourism as one of the key industries, and it will harness every resource to
shore up the sector. He also
asked tourism service providers to seriously adopt anti-pandemic measures to
ensure travel safety and effectiveness./. Binh Duong draws over 1.5 billion USD in FDI so far this year Binh Duong
province, a major industrial hub in the southern region, has still managed to
attract over 1.5 billion USD in foreign direct investment (FDI) so far this
year despite considerable impacts of the COVID-19 pandemic. Of the sum,
more than 482 million USD has been poured into 44 new projects, over 799
million USD added to 23 existing projects, and 225.4 million USD spent on
contributing capital to or buying stakes in 81 projects. Notably, the
province has recorded 14 million USD in FDI since September 15, when it
returned to the new normal. Up to 88
percent of the surveyed FDI firms in Binh Duong believed that their
production and business situation in the fourth quarter will be stable or
improve compared to Q3, while 12 percent said they will face difficulties,
according to the latest survey conducted by local authorities. Bui Minh
Tri, Head of the Binh Duong Industrial Zones Authority, said as of October
28, 1,968 enterprises or over 96 percent those based in local industrial
parks had resumed operations. Nearly 373,000 labourers (76 percent) have
returned to work. Companies
have quickly restored production and business activities with COVID-19
prevention and control ensured, he noted. During the
first nine months of this year, the index of industrial production in Binh
Duong grew 2.9 percent year on year while total retail sales of goods and
consumer service revenue rose 1.9 percent, compared to the respective
increases of 6.7 percent and 10.9 percent in the same period of 2020. The province
posted a trade surplus of 4.62 billion USD in the nine-month period, compared
to a surplus of 4.48 billion USD during January - September last year./. NA deputies debate draft Law on Insurance Business (amended) on
October 29 The draft
Law on Insurance Business (amended) is the focus of the National Assembly
session on October 29 morning, as part of the ongoing second session of the
15th legislature. The bill is
set to consolidate legal regulations on insurance business and handle
contentious, overlapping contents in the current law, thus ensuring the
synchronicity of the legal system. With eight
chapters and 156 articles, the revised law is expected to contribute to
reforming administrative procedures in insurance business as well as the
management, supervision and inspection in this field. The Minister
of Finance will clarify a number of issues regarding the draft law to be
raised by the deputies. In the
afternoon, the lawmakers will look into the draft plan on economic
restructuring for 2021-2025, the draft national land use planning scheme for
2021-2030 with a vision towards 2050, and the 2021-2025 land use plan./. Denmark further supports Vietnam’s green energy development Deputy
Minister of Industry and Trade Dang Hoang An and Danish Ambassador to Vietnam
Kim Højlund Christensen on October 28 signed a new agreement to kick-start
the Danish Energy Partnership Programme between Denmark and Vietnam
2021-2025 (DEPP III). It is the
third phase of a long-term energy cooperation programme between the two
Governments launched in 2013. The programme will be jointly carried out by
the Vietnamese Ministry of Industry and Trade (MoIT) and the Danish
Energy Agency with a non-refundable aid of 60.3 million DDK (10 million USD)
in the form of Denmark’s technical assistance. At the
signing ceremony, An said the Vietnam-Denmark energy
cooperation has brought about positive results and benefited both
countries. The
implementation of the programme’s third phase will offer chances for Vietnam
to learn from Denmark's experience in strategic energy development policies,
thereby playing an important role in the sustainable transition of Vietnam’s
energy sector. For his
part, the Danish Ambassador affirmed that Denmark is a long-standing and
trustworthy partner of Vietnam in helping the Southeast Asian nation switch
to green energy and low-carbon economy. The DEPP
III will inherit the solid foundation of the two Governments’
partnership and continue to strengthen and develop achievements obtained so
far, he added. With more
than 50 years of experience in the field, Denmark is willing to share its
best solutions, know-hows and experience with Vietnam and help the country
realise its enormous potential in energy transition and improve Vietnam’s
commitment to climate change adaptation, the Danish diplomat said. Within the
framework of the programme, Vietnamese and Danish partners will continue to
collaborate in energy planning, integration of renewable energy into the
power grid and economical and effective use of energy in the industrial
sector. Offshore
wind energy development will continue to be a key area of the programme. It also
helps the MoIT’s Energy Efficiency and Sustainable Development Department
build a mechanism conducive for the application of economical and effective
energy solutions in energy-intensive industries of Vietnam. The DEPP is
part of the Danish commitment to fulfil the Paris Agreement by assisting a
number of emerging economies, including Vietnam, in their low-carbon
transition./. Vietnam's 10-month export value up 16.6 percent
Vietnam’s
export turnover in the first ten months of 2021 is estimated at nearly 268
billion USD, up 16.6 percent against the same period last year, the General
Statistics Office (GSO) announced on October 29. Meanwhile,
China was Vietnam’s biggest import market, with over 89 billion USD. It was
followed by the Republic of Korea, the ASEAN market and Japan. In October,
Vietnam enjoyed a trade surplus of 1.1 billion USD. However, in the first ten
months of 2021, the country posted a trade deficit of 1.45 billion USD./. Reference exchange rate stays stable The State
Bank of Vietnam set the daily reference exchange rate at 23,131 VND/USD on
October 29, unchanged from the previous day. With current
trading band of +/-3 percent, the ceiling rate applicable to commercial banks
during the day is 23,824 VND/USD and the floor rate 22,438 VND/USD. The
opening-hour rates listed at commercial banks dropped slightly. At 8:30am,
Vietcombank listed the buying rate at 22,620 VND/USD and the selling rate at
22,850 VND/USD, both down 5 VND from October 28. Meanwhile,
BIDV kept both rates unchanged at 22,655 VND/USD (buying) and 22,855 VND/USD
(selling). During the
week from October 25-29, the daily reference exchange rate fluctuated
variably and ended the week down 5 VND from that on Monday./. Additional capital by foreign firms up over 24 pct in 10 months Foreign
investors poured 23.74 billion USD in new projects, existing projects, and in
contribution of capital and share purchases as of October 20, up 1.1 percent
year-on-year, reported the Ministry of Planning and Investment (MPI). Of them, 13
billion USD was newly-registered capital, up 11.6 percent; over 7.09
billion USD was added to existing projects, up 24.2 percent; and 3.63 billion
USD was capital contribution, down 40.6 percent annually. During the
first ten months of this year, foreign investors disbursed 15.15 billion USD,
down 4.1 percent year-on-year. They poured
capital in 18 out of 21 economic sectors, mostly in manufacturing and
processing sector with 12.74 billion USD, or 53.7 percent of the total
registered capital. Electricity production and distribution followed with
5.54 billion USD, real estate 2.12 billion USD, wholesale and retail over 803
million USD. In terms of
the number of new projects, manufacturing and processing, wholesale and
retail, and science-technology attracted the most, accounting for a
respective 33.1 percent, 27.8 percent and 16 percent of the total. Among 97
countries and territories investing in Vietnam, Singapore took the lead with
6.77 billion USD, or 28.5 percent of total investment in Vietnam, down 9.9
percent year-on-year. It was followed by the Republic of Korea with 4.15
billion USD, up 21.3 percent and Japan with around 3.4 billion USD, up 89.9
percent. Among 58
cities and provinces receiving FDI, the southern province of Long An topped
the list with 3.68 billion USD, ahead of Ho Chi Minh City with more than 2.73
billion USD and the northern city of Hai Phong with 2.72 billion USD. Ho Chi Minh
City ranked first in terms of the number of new projects, projects with
additional capital and share purchases, equivalent to 34.1 percent, 17.7
percent and 59.4 percent, respectively. The capital city of Hanoi came second
in the number of new projects. According to
the MPI’s Foreign Investment Agency, the foreign-invested sector ran a trade
surplus of nearly 21.2 billion USD inclusive of crude oil, and roughly 19.8
billion USD exclusive of crude oil, in nine months of this year. Meanwhile,
the domestic sector posted a deficit of 23.2 billion USD./. Firms in south-east resume production as COVID-19 restrictions
ease With the
COVID-19 pandemic basically controlled, businesses in the south-eastern
region of Vietnam are gradually resuming production. The pandemic
has been gradually brought under control in hotspots such as Ho Chi Minh City
and Binh Duong, Dong Nai and Long An provinces, paving the way for them to
relax measures to revive the economy. They have
tweaked many policies to adapt to the new context, giving hope to businesses
during this hard period. Resolution
128 issued recently by the Government on ‘Safe adaptation, flexibility and
effective control of the COVID-19 pandemic,’ which lists criteria to assess
the level of pandemic risk and unified response measures by all localities,
agencies and businesses, is good news for enterprises. According to
businesses, the spelling out of risk levels lets them know when they can
continue operation and when they need to temporarily stop. Unified
regulations also prevent local authorities from creating their own
regulations, enabling companies to develop and implement business plans, they
said. In Binh
Duong province, 3,330 businesses with 331,585 workers have resumed
operations. The province has made efforts to sustain production to prevent
supply chain disruption. Local
authorities said they are striving to ensure 90 percent of businesses resume
operations by the end of this month and 100 percent by the end of this year. The
management of the province’s industrial parks is speeding up vaccination for
experts and workers to achieve the goal of returning to normal by early 2022. In Binh
Phuoc province, 42,540 workers at 166 enterprises in industrial parks have
returned to work. More than 3,000 businesses outside the parks with over
56,000 workers have also resumed operations. Nearly 100 companies have
announced plans to hire 9,200 workers. In Dong Nai
province 1,582 out of a total of 1,713 companies with 497,050 employees have
resumed operations. But they face
numerous challenges like a shortage of workers after a large number returned
to their hometowns during the lockdown, rising costs of inputs and lack of
funds. Businesses
have taken a cautious approach to reopening since the vaccination rate in
some localities is only 20 percent. Vo Tri
Thanh, Director of the Institute for Brand and Competitive Strategy, said
support policies need to be implemented quickly and in a co-ordinated manner
to help businesses recover and catch up with the rest of the world. “The most
important thing for businesses now is a support package which is big enough …
and is implemented quickly enough,” he told Vietnam News./. Banks record higher profits, some exceeding annual plan Multiple
banks recorded prosperous business results in the first nine months of 2021
despite the negative impacts caused by the COVID-19 pandemic, with some even
exceeding business targets for the whole year. Viet A
Commercial Joint Stock Bank (VietABank) reported 9-month pre-tax profit of
522 billion VND (22.9 million USD), up three times over the same period last
year. The profit from securities trading increased sharply, up 4.7 times over
the same period in 2020 with 107.6 billion VND. The total
accumulated banking income in nine months still decreased by 6.3 percent
year-on-year, while operating expenses increased by 5.1 percent. As a result,
the bank's net profit before provision expenses decreased by 12.3 percent
compared to the same period in 2020, reaching only 747 billion VND. VietABank
sharply reduced provision expenses in the past nine months, from 864 billion
VND in the same period last year to 225 billion VND by the end of the third
quarter of 2021. The sharp decrease in provision expenses was partly because
the bank had settled all bonds at the Vietnam Asset Management Company (VAMC)
since August, thus reducing the pressure on provisioning for VAMC bonds. In
the third quarter of 2021 alone, the risk provision was only 19 billion VND,
while in the third quarter of 2020, this number reached 476.5 billion VND. Bac A
Commercial Joint Stock Bank (BacABank) announced 9-month pre-tax profit of
702 billion VND, up 34 percent year-on-year, mainly thanks to the
provisioning for risks which decreased by 70 percent over the same period
last year. In the third
quarter, BacABank recorded profit of 94 billion VND from securities
activities, nearly 12 times higher than the level of the same period in 2020. Petrolimex
Group Commercial Joint Stock Bank (PG Bank) recorded pre-tax of 272 billion
VND in nine months, up 107 percent over the same period last year, completing
88 percent of the yearly plan. Provision expense dropped sharply by 64
percent year-on-year, to 93 billion VND. However, bad
debt increased by 13 percent compared to the beginning of the year to 708
billion VND, bringing the ratio of bad debt to total outstanding loans from
2.44 percent to 2.75 percent. Lien Viet
Post Bank Joint Stock Commercial Bank (LienVietPostBank)’s total operating
income reached 7.01 trillion VND in nine months of 2021 and increased 35
percent year-on-year, of which net interest income increased by 33.8 percent,
profit from service activities increased by 52.9 percent and profit from
forex trading increased by 86 percent. Although
LienVietPostBank's risk provisioning increased by 2.76 times over the same
period last year, the bank's pre-tax profit still reached 2.8 trillion VND,
up 61 percent over the same period in 2020 and nearing the target of 3.2
trillion VND for the this year. Orient
Commercial Joint Stock Bank (OCB) recorded 9-month pre-tax profit rising by
one and a half times against last year, reaching 3.77 trillion VND, reaching
68 percent of the year’s plan. OCB said
that the bank focused on the strategy of promoting asset quality rather than
scale, taking advantage of quality long-term capital with lower capital costs
from investment trusts and issuing valuable papers. Total net
revenue of OCB in the third quarter of 2021 increased by 23.3 percent against
last year, reaching 6.24 trillion VND. The bad debt ratio decreased from 2.15
percent from last year to 1.51 percent at the end of the third quarter. Vietnam
Technological and Commercial Joint Stock Bank (Techcombank) announced 9-month
profit of 17.1 trillion VND, up 60 percent compared to the same period last
year, completing 86 per cent of the whole year’s plan. In third quarter
alone, Techcombank's pre-tax profit reached 5.56 trillion VND, up 40 percent
over the same period last year. The bank
also has the highest current account savings account (CASA) in the banking
industry with 49 percent at the end of the third quarter of 2021, up from
46.1 percent in the previous quarter. CASA at Techcombank has increased by
59.1 percent in the past 12 months and reached 155 trillion VND; in which
deposits of individual and corporate customers increased by 27 percent and
114.8 percent respectively over the same period last year. Setting a
target of 135 billion VND in pre-tax profit for this year, Saigon Industrial
and Commercial Joint Stock Bank (Saigonbank) has just announced its 9-month
pre-tax profit of 194 billion VND, up by 9.6 percent over the same period in
2020, exceeding the yearly plan by 44 percent. The latest
report of VietCapitalBank also recorded a 9-month pre-tax profit of 385
billion VND, up 181 percent year-on-year, higher than the yearly target of
290 billion VND. Maritime
Commercial Joint Stock Bank (MSB) reported 4.1 trillion VND of pre-tax profit
in nine months, which has far exceeded the yearly plan of 3.2 trillion VND.
Compared to the same period of 2020, MSB's profit increased more than 2.5
times. Southeast
Asia Commercial Joint Stock Bank (SeABank) announced 9-month pre-tax profit
of 2.53 trillion VND, up 123 percent over the same period in 2020 and
exceeding 5 percent of the yearly plan. Particularly in the third quarter,
the bank's pre-tax profit was 974 billion VND, up 110 percent over the same
period last year./. Additional capital by foreign firms up over 24% in 10 months
According
to the Ministry of Planning and Investment foreign investors poured nearly 24
billion USD in new projects, existing projects, and in contribution of
capital and share purchases as of October 20, up more than 1 percent
year-on-year. Of them, 13
billion USD was newly-registered capital, up roundly 12 percent; over 7.1
billion USD was added to existing projects, and 3.6 billion USD was capital
contribution. During the
first ten months of this year, foreign investors disbursed over 15 billion
USD, down more than 4 percent year-on-year. In terms of
the number of new projects, manufacturing and processing, wholesale and
retail, and science-technology attracted the most. Among the
countries and territories investing in Vietnam, Singapore took the lead. It
was followed by the Republic of Korea and Japan. Among the
cities and provinces receiving foreign direct investment, the southern
province of Long An topped the list. It was followed by Ho Chi Minh City and
the northern city of Hai Phong. Ho Chi Minh
City ranked first in terms of the number of new projects, projects with
additional capital and share purchases, the capital city of Hanoi came second
in the number of new projects./. Green growth strategy promotes post-COVID-19 economic recovery The national
strategy on green growth for 2021-2030, with a vision to 2050 plays a crucial
role in promoting economic restructuring alongside growth model renovation,
said Minister of Planning and Investment Nguyen Chi Dung. “It is an
important approach to pursue sustainable development, thus contributing to
post-COVID-19 economic recovery, transitioning to green economic development,
and at the same time creating a premise to realise the long-term targets of
low-carbon emissions and carbon neutrality so as to contribute to limiting
global temperature rise,” he said. Minister
Dung made the statement at a conference to implement the strategy chaired by
the Ministry of Planning and Investment in Hanoi on October 29. Attendees at
the conference included representatives from ministries, sectors, localities,
embassies of the UK, Germany, the Republic of Korea, international
organisations, the World Bank, Asian Development Bank, UNDP, UNIDO, UNICEF,
GIZ, KOICA, AFD, USAID, as well as representatives from businesses, academia,
and researchers. In light of
the approved orientation, the strategy was developed on the basis of
extensive consultations with stakeholders in ways consistent with recent
COVID-19-pandemic prevention regulations, the minister said. The
development process of the strategy received strong support, cooperation and
input from ministries, sectors, localities, relevant industry associations,
embassies, international organisations, and development partners, he said. By
acknowledging and taking into consideration the inputs from stakeholders, the
Ministry of Planning and Investment has completed the strategy and submitted
it to the Prime Minister for promulgation under Decision No 1658/QDTTg dated
October 1, 2021. The Prime
Minister's approval of the strategy on the threshold of the 26th Conference
of the Parties to the United Nations Framework Convention on Climate Change
(COP26) in Glasgow, UK, which will take place in the next few days, has
demonstrated Vietnam's strong commitment to reducing greenhouse gas emissions
through practical and concrete actions. “The
strategy sets four important goals, namely reducing greenhouse gas emissions,
greening economic sectors; greening lifestyles and promoting sustainable
consumption, and greening the transition,” said Le Viet Anh, Director of the
Department of Science, Education, Natural Resources and Environment under the
Ministry of Planning and Investment. “The first
objective of the strategy is to reduce the intensity of greenhouse gas
emissions per GDP, which was also the objective of the previous strategy.
This aims to assess comparative greenhouse gases (GHG) emission mitigation
potential per unit of economic output, helping to determine the extent of environmentally-friendliness
of the economy as its size is increasing, contributing to realising the dual
goal of protecting the environment and developing “rapidly and sustainably,”
he said. Under the
strategy, by 2030, the intensity of greenhouse gas emissions per GDP will
decrease by at least 15 percent compared to that of 2014. By 2050, the
intensity of greenhouse gas emissions per GDP will reduce at least 30 percent
compared to that of 2014. Hai Phong
was the first locality to develop and implement a green growth plan for the
2014-2020 period. The city has succeeded in attracting a number of
sustainable investment projects in accordance with the local economic
development conditions. Vice Chairman
of the Hai Phong municipal People's Committee Le Khac Nam said that the city
had implemented a number of outstanding projects in the 2014-2020 period,
such as waste treatment projects and an electric bus on Cat Ba island. International
organisations have supported and co-ordinated with Hai Phong to implement
green and environmentally friendly projects. The city will move towards
applying digital technology, digital transformation, transforming the
economic model towards greening, comprehensively implementing green economic
development models including green ports, green islands,
environmentally-friendly production model, reducing energy consumption in
production activities, and applying renewable energy sources such as wind and
wave energy. Representatives
from ministries, sectors, localities, embassies, international organisations,
development partners, and businesses spoke highly of the new approach which
was employed to determine the feasibility of the goals set forth in the
strategy. They also
agreed with the plan and roadmap for the implementation of the strategy and
believe that the Strategy will help realise the goals that Vietnam had set
for 2030 and 2045. Ministries, sectors, localities, agencies and relevant
organisations agreed to work together immediately to devise a National Green
Growth Action Plan and Action Plans on sectoral and local levels. Development
partners and international organisations are committed to accompanying and
supporting Vietnam to implement the strategy. To conclude
the meeting, Minister Dung emphasised the importance of collaboration during
the implementation process, saying the support and close coordination of
ministries, sectors, domestic and international organisations, the business
community and experts play a fundamental role to ensure that the
implementation of the strategy adheres to the views and orientations of the
Resolution of the 13th National Party Congress, the 10-year socio-economic
development strategy 2021-2030, and the 5-year socio-economic development plan
2021-2025. Following
the conference, the Ministry of Planning and Investment will preside over and
coordinate with ministries, sectors and localities to research and propose to
the Prime Minister to establish a national steering committee on green growth,
make arrangements to devise a national green growth action plan, and
implement other important contents./. Reform should be maintained in post-COVID-19 economic recovery:
workshop Reform
should be the top priority for Vietnam in the 2021-2025 period, heard a
workshop held by the Central Institute for Economic
Management (CIEM) in Hanoi on October 29. Participants
at the high-level consultative workshop on “Reform towards
sustainable development and international economic integration: focus and
roadmap to 2025”, emphasised the need to maintain reform during the recovery
process and the requirement to reform in parallel with economic recovery. They
highlighted the importance of mobising resources for new economic activities
in a sustainable way. It is necessary
to implement effective international economic integration, create impetus for
institutional reform, take advantage of incentives from new-generation free
trade agreements and improve the internal strength of the economy, they said,
adding that attention should be paid to the private sector and the autonomy
of the economy. Tran Thi
Hong Minh, director of CIEM, said economic difficulties have once again
tested the will and determination of Vietnam. “We still
see bright spots in economic institutional reform thinking by the adoption of
many solutions to create motivation for economic recovery and development,
effectively carry out international economic integration, promote green
growth and sustainable development”, Minh said. According to
Can Van Luc, chief economist of the Bank for Investment and Development of
Vietnam, the COVID-19 pandemic has left a negative impact on the economy in
recent times and may last for the next few years. Currently,
Vietnam has to ensure three goals, namely pandemic prevention, economic
recovery and social welfare. Luc said
that it is necessary to quickly overcome the consequences of COVID-19.
Accordingly, digital transformation and digital skills should be carried out.
A better social safety net system should be created together with the
resilience of the financial system. Countries
that can adjust their model appropriately and have the ability to coordinate
between health and the economic policies as well as promulgate a quick and
consistent policy mechanism will overcome the pandemic more effectively, he
said. According to
Luc the quality of legal documents and slow implementation of policies are
the bottleneck that should be dealt with./. Da Nang city resolved to revive tourism sector Da Nang
city, a large tourist magnet in the central region, is taking various
measures in an effort to revive tourism in the new normal, after a long
hiatus caused by the fourth wave of COVID-19 infections. The tourism
recovery plan is divided into two phases, with the first implemented right in
the fourth quarter of 2021 and the second in 2022 - 2025, Deputy Director of
the municipal Tourism Department Nguyen Xuan Binh told a teleconference on
October 28. Da Nang has
resumed tourism activities to serve local visitors since the start of October,
and it plans to begin welcoming tourists from other localities back in
November. The city
will reopen to international travellers in accordance with the plan and
guidance issued by the Government and relevant ministries and sectors, he
noted, elaborating that it will receive foreign visitors through package
tours, charter flights, and regular commercial flights on a trial basis from
next month. Tourism
promotion plans have also been launched by the department, conveying the
messages of “Da Nang Now Open” in Phase 1 and “Enjoy Da Nang” in the
following one. On this
occasion, the Tourism Department debuted VR360 application at
https://danangfantasticity.com, which promises interesting experiences for
visitors who wish to explore the city online. At the teleconference,
the city’s Centre for Tourism Promotion and the Da Nang branch of the Viettel
Military Industry and Telecoms Group signed a cooperation agreement on
boosting digital transformation in tourism promotion. The
municipal Tourism Association, the Da Nang Tourism Promotion Fund, and many
other agencies and travel companies also inked a deal to reactivate travel
activities, showing their determination to revitalise the sector in the new
normal. Tran Phuoc
Son, Vice Chairman of the municipal People’s Committee, said Da Nang views
tourism as one of the key industries, and it will harness every resource to
shore up the sector. He also
asked tourism service providers to seriously adopt anti-pandemic measures to
ensure travel safety and effectiveness./. Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan |
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