VIETNAM BUSINESS NEWS OCTOBER 9
08:34
Four scenarios for Vietnam’s cloud computing market
The Ministry of Information and
Communications is collecting feedback on a draft master plan on
information and communications (ICT) infrastructure for 2021-2030 with a
vision to 2050, which outlines four scenarios for the growth of the market. In the first
scenario, the market will keep growing with a total revenue of 653 million
USD by 2025. Vietnam will be among the top 50 countries globally in terms of
the sector’s contribution to the gross domestic product (GDP). With
nearly 46,600 racks that need to be installed by 2025, it is necessary to
have at least 17,000 Gbps for domestic broadband connection. Under the
second scenario, digital applications will become popular in the entire
population and industries. In terms of the sector’s contribution to the GDP,
Vietnam will be one of the top 30 countries worldwide. By 2025, the total
revenue from cloud computing services will reach 1.1 billion USD and about
80,000 racks need to the installed, thus requiring at least 22,000 Gbps for
domestic broadband connection. With digital
applications widely used in all sectors and thriving digital transformation,
Vietnam is expected to be among 10 countries worldwide in the contribution of
the cloud computing market to the GDP in the third scenario. By 2025, the
total revenue is estimated at 4.3 billion USD while 327,000 racks need at
least 62,000 Gbps. According to
the fourth scenario, Vietnam will strive to become a digital hub in the
region and earn 4.7 billion USD by 2025. With about 335,000 racks, the demand
for domestic broadband connection is equivalent to that in the third
scenario. Statistics
showed that Vietnam’s cloud computing market was worth about 200
million USD in late 2020 with a growth of 20.67 percent during the 2016-2020
period./. Vietnam Motor Show 2021 likely to be delayed till 2022 Vietnam
Motor Show 2021 (VMS 2021) is likely to be postponed until next year due to
the complicated developments of the COVID-19 pandemic. Last year,
the motor show, the largest of its kind in Vietnam, was postponed amid
COVID-19 fears. The latest
auto show was held in 2019 in Ho Chi Minh City that attracted 15 car brands
that such as Audi, Ford, Honda, Jaguar, Land Rover, Lexus, Mercedes -Benz,
Mitsubishi, Nissan, Subaru, Suzuki, Toyota, VinFast, Volkswagen, and Volvo. Unlike the
world’s auto shows which introduce new models and new technologies, Vietnam
Motor Show is considered as a market where car manufacturers introduce and
sell their products. India’s Adani Group seeks to expand investment in Vietnam Asia’s
second richest billionaire, Gautam Adani, expressed his desire to expand
investment in Vietnam during his recent meeting with Vietnamese Ambassador to
India Pham Sanh Chau. Ambassador
Chau said the embassy will soon establish an Ad hoc group and work with
Vietnamese ministries and agencies in order to realize the Indian group’s
ideas. If these projects are successful, India will soon become one of the
top 10 foreign investors in Vietnam. Adani Group
has invested in a wind power project and a solar power project in Ninh Thuan
province. Forbes has
ranked Gautam Adani, Chairman of Adani Group, as the 24th richest billionaire
in the world and second in Asia, with a total fortune of about US$74 billion. The Indian
billionaire is said to control almost a quarter of aviation operations in
India. His main source of wealth comes from power generation, renewable
energy and transportation. Established
in 1988, Adani Group originally got involved in import-export activities.
Over the years, the multinational group has positioned itself to be the
market leader in its transport logistics and energy utility portfolio
businesses focusing on large scale infrastructure development in India. The group is
now present in more than 70 countries and territories around the world with
annual revenue of more than US$15 billion. Philippines drops probes on safeguard measures for some imported
steel products The Philippines
Department of Trade and Industry (DTI) has announced that it will
suspend three safeguard investigations on some imported steel products,
according to the Trade Remedies Authority of Vietnam (TRAV) under
the Ministry of Industry and Trade. The DTI on
June 15 last year initiated three safeguard investigations on steel products,
namely galvanised steel, galvanized aluminum alloy steel, and
metallic-coated galvanised steel products, imported into the country,
including those from Vietnam, after domestic manufacturers filed a lawsuit
alleging that the sudden increase in imports from other countries causing
serious damage to the country’s industry, the TRAV said. The
authority emphasised that steel exporters can continue their export
activities without the concern about the imposition of safeguard duties on
these products from the Philippines. As of 2020,
the Philippines had investigated 13 trade remedy cases against Vietnamese
exports, including an anti-dumping investigation and 12 safeguard
investigations. The Philippines initiated investigations into four trade remedy
cases against Vietnamese exports last year. The items investigated by the
Philippines were mainly steel products. Vietnam's
exports to the Philippines market in 2020 reached more than 3.5 billion USD,
accounting for 1.26 percent of Vietnam's total export turnover. Of which, the
turnover affected by trade remedy-related lawsuits initiated or reviewed in
2020 is about 2 million USD./. Plenty of room for Vietnamese products to enter Mexico There are
bright prospects ahead for exporting Vietnamese goods to Mexico by taking
full advantage of tariff incentives set out within the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to
industry insiders. Following
the enforcement of the CPTPP, Mexico is committed to eliminating 77% of
tariff lines as of January 14, 2018. Due to this change Vietnamese seafood
exporters are striving to make positive use of tariff incentives from the
terms of the trade deal. Most
notably, seafood exports to Mexico during the opening eight months of the
year soared by 77% to over US$59 million, according to the Vietnam
Association of Seafood Exporters and Producers (VASEP). Along with
seafood products, rice, textiles and leather shoes have also seen a wealth of
opportunities to penetrate deep into this market, Khang said. Nguyen Son
Tra, deputy head of the WTO and Trade Negotiation Division at the
Multilateral Trade Policy Department, advised local businesses to better
grasp consumer tastes and select suitable products to export to this market. She also
emphasised the need to become increasingly proactive in gaining greater
insights into the trade pact’s preferential import duties, and use e-commerce
platforms in a bid to strengthen connectivity with Mexican businesses amid
the complex nature of the COVID-19 pandemic. Vietnam’s
trade surplus with Mexico has been maintained over the years as the Central
American country is one of the few markets in the region that has recorded a
trade surplus of more than US$2 billion annually. Bilateral
trade turnover during the first eight months of the year reached US$3.24
billion, up 36.08% against the same period from last year, making Mexico the
second largest Vietnamese trading partner in Latin America and the fourth
biggest in the Americas, behind only the United States, Canada, and Brazil. At present,
Vietnam’s market share in this market accounts for only 1.3% of the total. Vietnam works towards responsible, sustainable fishery sector Vietnam’s
fishermen, businesses and government have joined hands in implementing
fishing regulations, in a bid to have the European Commission (EC)’s illegal,
unreported and unregulated (IUU) fishing “yellow card” removed. According to
the Directorate of Fisheries under the Ministry of Agriculture and Rural
Development, the EC has lauded Vietnam’s efforts in fighting IUU fishing over
the past four years, saying the country has made progress in implementing
domestic regulations and laws in this regard. Vietnam’s
legal framework has basically matched international regulations, thus
facilitating the building of a sustainable, responsible fishery sector with
international integration. The
implementation of relevant regulations in the Law on Fisheries 2017 and
documents guiding the enforcement of the law has borne fruits. More than 87
percent of fishing boats measuring at least 15m in length have been equipped
with journey monitoring devices, and all fishing boats with a length of 24m
and above have completed the installation of the devices. Forty-nine
fishing ports in 28 coastal cities and provinces have traced the origin of
caught products. Exports to the European markets have undergone thorough
inspections. Moreover,
the IUU Committee of the Vietnam Association of Seafood Exporters and
Producers (VASEP) has intensified communications among the business
community. For the
Government, Prime Minister Pham Minh Chinh has issued Decision No. 339/QD-TTg
dated March 11, 2021 approving the fishery development strategy to 2030 and a
vision to 2045. He asked
relevant ministries and agencies and People’s Committees of the 28 coastal
cities and provinces to raise the sense of responsibility to complete key
tasks and solutions. Accordingly,
the domestic fishery sector aims to reduce the exploitation volume from 3.8
million tonnes to 2.8 million tonnes. Ministries,
agencies, sectors and localities were requested to synchronously carry out
solutions to combat IUU fishing, towards a sustainable fishery sector./. Measures suggested to boost GDP growth amid COVID-19 The General
Statistics Office (GSO) has proposed the Government prioritise effective
pandemic prevention and control, and continue aid packages for enterprises in
a bid to boost GDP growth given difficulties caused by COVID-19. GSO Director
General Nguyen Thi Huong advised domestic firms to closely work with
multinational foreign direct investment (FDI) businesses like Samsung and
Toyota to seek material suppliers in Vietnam capable of fulfilling their
needs in both short and long terms. Vietnam’s
gross domestic product (GDP) declined by 6.17 percent year-on-year in the
third quarter, the sharpest drop since the country began announcing its
quarterly GDP figures in 2000. However, the
overall GDP expanded by 1.42 percent in the first nine months of 2021 from
the same period last year, marking a great success of the country in the
fight against the COVID-19 pandemic and maintaining production and business
amid the prolonged period of social distancing in many provinces and cities. During the
period, the agro-forestry-fishery sector posted an expansion rate of 2.74
percent, contributing 23.52 percent to the overall growth; with the figures
for industry and construction being 3.57 percent and 98.53 percent,
respectively. Huong said a
number of sectors could recover in the fourth quarter if COVID-19 is brought
under control, public investment disbursement is accelerated, and financial
aid packages are promptly implemented. Notably,
when the world demand in the last months of the year tends to increase,
Vietnam will have the conditions to strive for the highest possible growth
amid its combat against the epidemic, the official noted./. Singapore becomes leading investor in Vietnamese manufacturing
sector By September
2021 Singaporean financiers have injected US$23.5 billion across 690 projects
in Vietnam’s processing and manufacturing industry, accounting for nearly 40%
of Singapore’s total investment capital in the country, according to the
Foreign Investment Agency. Ho Chi Minh
City topped 50 provinces and cities attracting FDI from Singapore with 1,445
projects capitalised at US$11.55 billion, followed by Hanoi in the north and
Binh Duong in the south. Prominent
large-scale Singaporean projects included Bac Lieu liquefied natural gas
(LNG) power plant which has a total registered capital of up to US$4 billion,
South Hoi An Resort with total investment of US$4 billion, and Long An
liquefied natural gas power plant worth US$3.1 billion. According to
economic experts, Vietnam boasts bright prospects for attracting FDI from
Singapore, particularly following the launch of the Singapore-Vietnam Business
Council in July 2019, which has contributed to enhancing trade and investment
promotion between the two countries. To woo
further Singaporean investment, the experts suggest that Vietnam simplify
administrative procedures for existing financiers and facilitate investment
in advantageous Singaporean fields such as infrastructure development,
logistics, finance, banking, education, health care, tourism, the marine
industry, aerospace, and startups. The Foreign
Investment Agency reports that Singapore has had 2,769 valid FDI projects
valued at US$62.61 billion in Vietnam, ranking third among 141 countries and
territories investing in the country. Geographical indication of Binh Thuan dragon fruit protected in
Japan The Japanese
Ministry of Agriculture, Forestry and Fisheries (MAFF) on October 7 granted a
Geographical Indication (GI) certification for dragon fruit grown in the
south central province of Binh Thuan of Vietnam after three years the Binh
Thuan Dragon Fruit Association had submitted the application for the status
in Japan. The
protected status is hoped to be a "passport" for the trademark
“Binh Thuan dragon fruit” to make inroads into the Japanese market, and at
the same time affirms the prestige of the product. It is also
expected to offer new opportunities to Binh Thuan to promote export of dragon
fruit to other markets, especially choosy markets such as Europe, the
Republic of Korea, and New Zealand. Dinh Huu
Phi, General Director of the National Office of Intellectual Property under
the Ministry of Science and Technology, emphasised that the GI certification
for Binh Thuan dragon fruit has contributed to increasing the value,
competitiveness and export advantage for Vietnamese products. According to
Phi, the GI certification allows Binh Thuan’s dragon fruit to gain a stronger
foothold in the Japan market. This is also an important milestone, paving the
way for the promotion of appying for the protected status for other Vietnam’s
agricultural products in this fastidious market. Binh Thuan
is among the provinces producing the most dragon fruit in Vietnam with an
annual output of nearly 700,000 tonnes. Many dragon
fruit co-operatives in the locality, such as Thuan Tien, Hoa Le, Hong Son,
and Ham Tinh, were granted Collective Trademark by the National Office of
Intellectual Property of Vietnam. Earlier,
Thieu lychee grown in Luc Ngan district in the northern province of Bac Giang
was granted a GI certificate from the MAFF./. Seafood exports in September down, recovery slow Vietnam’s
seafood exports continued falling 23 percent in September, following a
significant decline of 36 percent in August, according to the Vietnam
Association of Seafood Exporters and Producers (VASEP). The
association attributed the decrease to shrinking production as the southern
localities had to impose social distancing measures to fight the COVID-19
pandemic. Specifically,
in the first half of September, most of the southern localities applied
social distancing under the Prime Minister’s Directive 16, many processing
factories suspended operations, leading to a decrease of 31 percent in the
nation’s total seafood export turnover. In the second half of the month,
several localities began loosening social distancing, which helped restore
some production activities. Seafood export turnover in the whole month
reached over 628 million USD, down 23 percent over the same period in 2020. In the
month, seafood exports to the US recovered with a slight increase of 3
percent year-on-year to 159 million USD, while those to other markets
continued to decline, with China seeing the biggest drop (nearly 50 percent),
and Japan, Canada, the UK and Australia also experiencing decreases of
between 35 and 45 percent. During
January-September, the export of aquatic products hit 6.2 billion USD, up 3
percent year-on-year. Notably, shrimp exports reached 2.76 billion USD, up
2.6 percent, the exports of tra fish and tuna rose by 3.2 percent and 9
percent to 1 billion USD and 520 million USD, respectively. VASEP said
that the best outlook for seafood exports this year is to be equal to that of
2020, or 8.4 billion USD./. Central bank proposes new law on bad debt settlement The State
Bank of Vietnam (SBV) has proposed to issue a separate law on bad debt
settlement. The new law
would be based on the provisions of Resolution 42/2017/QH14 to ease the work
of settling bad debts. In a recent
report sent to the National Assembly, the SBV said existing policies on bad
debt settlement of credit institutions are currently regulated in many
different legal documents. Resolution
42 piloting the bad debt settlement of credit institutions, which was
approved by the National Assembly in 2017, will also expire next year. The SBV,
therefore, has proposed to legislate the policies specified in Resolution 42
into a new law to continually enable the banking industry to settle bad debts
of credit institutions. The issuance of a new law on bad debt handling will
help maintain the settlement of bad debts after the expiry of Resolution 42,
helping credit institutions accelerate the handling of bad debts to avoid
potential risks for the economy. Experts also
suggested streamlining Resolution 42 to better deal with bad debts. According to
banking expert Can Van Luc, one of the major problems when dealing with bad
debts currently is the handling of collateral. The right to seize security
assets of a credit institution is one of the key contents in Resolution 42,
but it does not specify regulations when the borrowers do not cooperate.
Therefore, as Resolution 42 will expire next year, Luc said it is necessary
to have a law on bad debt settlement with a stronger legal framework. Lawyer
Truong Thanh Duc, director of ANVI Law Firm, said Resolution 42 has a good
effect in dealing with bad debts, however, the policy still needs to be
further streamlined to improve the handling of bad debts of the banking
industry. Though the
banking industry has still actively taken measures to handle bad debts and
limit newly arising bad debts, the debts tended to increase in the first
months of the year due to the impact of the COVID-19 pandemic. By the end of
June 2021, the bad debt ratio was 1.73 percent against 1.69 percent at the
end of 2020. Banks
handled 78.86 trillion VND in the first six months of 2021 through provisions
and debt sales. From August
15, 2017 to June 30, 2021, 359.41 trillion VND of bad debt was recovered
according to Resolution 42. The results
are positive, but many warnings showed bad debt will continue to rise again
due to the COVID-19 pandemic. According to
the SBV’s statistics, banks restructured loans worth about VNĐ350 trillion
for COVID-19-affected borrowers. Industry insiders estimated if half of the
loans became bad loans, the bad debt ratio of the banking system would
increase to more than 3 percent by the end of this year./. Retail sales to increase 3-4% by the year-end, says MoIT The retail
sale of consumer goods and services is likely to increase by 3-4 per cent by
the end of this year, the Ministry of Industry and Trade (MoIT) has forecast. According to
the MoIT, growth will however be lower than the 8 per cent target set earlier
in this year, reported the online newspaper Kinh te & Do thi. From now
until the end of the year, the ministry said it would focus on removing
difficulties for manufacturing enterprises, especially for larger businesses
operating in industrial zones, allowing them to resume production in time for
the expected increase in demand at the end of the year. It is hoped that this
increase will offset the economic decline caused by months of COVID-19
restrictions. The ministry
will utilise opportunities created by free trade agreements and focus on
removing obstacles to penetrate new markets. It will also closely monitor
supply and demand and the prices of essential commodities to draw up
regulatory measures, as well as ensuring sufficient distribution of essential
goods among regions, especially in pandemic-affected areas. Top priority
will be given to bettering market inspection and supervision in the remaining
months of this year, promptly detecting violations relating to speculation,
smuggling, counterfeit and poor quality goods, to facilitate the presence of
Vietnamese goods in the domestic market. Importance
will also be placed on the gradual reopening markets, trade centres,
supermarkets and convenience stores which have ensured pandemic prevention
and control measures, and implementing price-stabilisation programmes and
promotional events for the upcoming Tet holiday (which falls on Feburary 1,
2022). The ministry
will also help businesses participate in online trade promotion programmes
and business matching events, both at home and abroad. The utilisation of
digital platforms will help increase the consumption of goods in the last
months of the year, and next year as well. According to
the MoIT, total retail from consumer goods and services in September
increased 65.5 per cent against August, as production, business and services
resumed in some localities. However, the
country’s total retail sales and services revenue saw a year-on-year slump of
7.1 per cent to VND3.336 quadrillion (US$148 billion) in the first nine
months of this year, due to the COVID-19 pandemic. Retail sales
of goods in the period was estimated at over VND2.77 quadrillion, accounting
for 82.54 per cent of total retail sales of goods and services, and a decline
of 3.38 per cent compared with last year’s figure. Revenue from
accommodation and catering services reached VND279.4 trillion, down 22.14 per
cent year-on-year. Revenue from tourism and other services reached VND4.63
trillion and VND303.97 trillion, falling 64 per cent and 19.3 per cent
respectively compared with the same period last year. Domestic
trade’s proportion of the country’s GDP is expected to rise to 15 -15.5 per
cent in the next 10 years, under an approved strategy for developing domestic
trade between 2021 and 2030. By 2030,
domestic trade via e-commerce will likely increase by about 20-21 per cent
annually to account for 10.5-11 per cent of total retail sales of goods and
consumer service revenue. The percentage of small and medium-sized
enterprises involved in trading activities is hoped to surpass 40-45 per
cent. The strategy
looks to achieve fast and sustainable growth of domestic trade, build brands
for Vietnamese goods, and protect the interests of consumers, businesses, and
the national economy. Among the
main orientations to develop domestic trade, authorities are set to press on
with improving the investment and business climate, form a market order
adaptable to the new operating conditions, develop domestic trade stably and
sustainably, keep domestic trade’s growth faster than GDP growth, and develop
e-commerce into the main form of trading. Vietnam leaves impression at M-Tech Osaka 2021 A Vietnamese
stall at the Mechanical Components & Materials Technology Expo (M-Tech)
in Japan’s Osaka Prefecture has attracted numerous visitors who sought
cooperation opportunities. The stall introduced
products made by the Viet Au Engineering Joint Stock Company. This year, due
to COVID-19, a large number of Vietnamese firms could not attend the annual
event – one of the largest of its kind in Japan. The M-Tech concluded on
October 8. Ta Minh Duc
from the Vietnamese Embassy in Japan said in recent times, with support from
the Vietnamese trade office in Japan, many Vietnamese companies have had the
chance to join expos, introducing their products and seeking partnerships. In 2020,
Vietnam's export turnover of supporting industry products to Japan reached
1.1 billion USD, accounting for about 5 percent of Vietnam's total value of
exports to this country./. Dong Nai Province factories reopen but face labour
shortage
Thousands of
workers in the southern province of Dong Nai returned to work on Tuesday
after a three-month furlough due to COVID-19. The Dong Nai
Industrial Zones Authority has allowed 11 companies with more than 17,500
workers to resume production without requiring them to live on-site. Twenty one
enterprises that had workers to live on-site now allow them to commute from
home. Pousung Viet
Nam Co., Ltd in Bau Xeo Industrial Park on Tuesday did COVID rapid tests that
provide results within minutes of more than 5,500 workers before resuming
operations. But Le Nhat
Truong, chairman of its trade union, said the company is struggling with a
labour shortage with only 20 per cent of workers turning up. It hopes the
number would gradually increase, but that depends on the vaccination rate, he
said. Only workers
living in COVID low-risk areas are allowed to come to work, making it
difficult for enterprises, he said. Most
enterprises in the province have urged the administration to give priority to
fully vaccinating workers in the manufacturing sector to ramp up production,
Le Van Danh, deputy head of the Dong Nai Industrial ZonesAuthority, told a
meeting on Monday. They also
want the Government to partly subsidise the cost of rapid tests since it puts
a large financial burden on them, he said. More than
1,254 enterprises in the province followed the so-called ‘three on-site’
model that required workers to stay at the workplace and not go home during
the pandemic, while 600 remained closed, he said. The
industrial zones authority has urged provincial authorities to set up
quarantine and health centres at industrial parks in preparation for a
possible spike in new cases as movement restrictions are lifted. The
province, a manufacturing hub, has 31 industrial parks with 630,000 workers. Cao Tien
Dung, chairman of the province People’s Committee, said support for workers
would be stepped up to stop their exodus to their hometowns. The People’s
Committee has instructed industrial zones to allow enterprises with safety
plans to reopen soon. Numerous Japanese firms consider moving part of their production
chains to Vietnam A number of
Japanese companies are in the process of considering plans to move part of
their production chains to the nation in the near future, according to the
Vietnam Trade Office in Japan. The
three-day event is running from October 6 to October 8 and offers Vietnamese
enterprises an ideal opportunity to introduce various products, seek greater
co-operation opportunities, and fully engage in the global value chain, while
simultaneously gaining access to advanced and modern production technologies. An issue
this year is Vietnamese businesses finding it challenging to attend the
latest version of the trade show and deal directly with foreign partners due
to the impact of the COVID-19 pandemic. However,
with the support from the Vietnam Trade Office in Japan, Vietnam-Europe
Mechanical Joint Stock Company managed to successfully register for a booth
at the exhibition, with the function drawing the attention of visitors who
are keen to learn and seek greater co-operation opportunities with the firm. According to
statistics, the export value of products relating to the support industry
between the country and Japan in 2020 reached US$1.1 billion, thereby
accounting for 5% of total Vietnamese export turnover to the Far East nation. This is
therefore considered a remarkable result coming from the efforts of the two
Governments to promote bilateral co-operation in this field. Of the six
priority sectors of the industrialisation strategy within the framework of
joint co-operation, three relate to the support industry, including
electronics, agricultural machinery, and automobile manufacturing. The initial
outbreak of the COVID-19 pandemic in early 2020 served to severely disrupt
and break some parts of the supply chain, thereby causing a wave of Japanese
businesses to shift their supply chains from China to neighbouring countries
in Southeast Asia, including the Vietnamese market and Thailand. According to
information given by the Vietnam Trade Office in Japan, the Vietnamese
support industry, as well as businesses in this field, must remain active to
seize new opportunities for investment attraction and business co-operation. Businesses in HCM City welcome back workers Enterprises
based in industrial parks, export processing, and high-tech zones have fully
met the requirements according to Ho Chi Minh City's set of criteria for
disease prevention when welcoming staff back to work. Since early
October a number of enterprises located in industrial parks, export
processing, and high-tech processing zones in the southern metropolis have
begun the process of welcoming back workers to resume production and business
activities. In total, 18
industrial parks, export processing, and high-tech zones have roughly 1,500
enterprises with approximately 288,000 employees between them, in which, over
650 firms with 51,000 workers are running under the "three on-site"
option. According to
Nguyen Van Be, chairman of the Business Association in industrial parks in Ho
Chi Minh City, these businesses now fully met the southern city's
requirements relating to COVID-19 prevention and control. Most
notably, in addition to 110 out of 170 factories with 6,000 employees in Hiep
Phuoc industrial park of Nha Be district, a total of 40 further factories
have resumed operation since early October, with roughly 30 businesses
resuming operations in Linh Trung export processing zone of Thu Duc City. Furthermore,
in the Tan Thuan export processing zone, several industrial parks, including
Cat Lai II, Le Minh Xuan, Binh Chieu, and An Ha, 80% of office department
employees are working at their company' headquarters. Moreover,
vaccinated workers in provinces bordering Ho Chi Minh City, such as Long An,
Dong Nai, and Binh Duong, are also set to start work in the near future. “Businesses
must meet all requirements for disease prevention when re-operating. The
Management Board is responsible for appraisal and post-inspection. Currently,
businesses are also preparing machinery and hygiene safety to welcome workers
back in accordance with regulations. Workers who have received 1 or 2 doses
of vaccines must undergo testing before getting to work," Be added. Viettel to invest in 16 potential solutions, products of Viet
Solutions Contest Viettel
Group will partner with businesses whose the best solutions and projects are
selected from the ongoing third Viet Solutions Contest 2021. Co-organised
by Viettel and the Ministry of Information and Communications from June 10,
the contest looks for technological ideas and products in the fields of
healthcare, education, finance-banking, agriculture, transport - logistics,
energy, natural resources - environment, industrial production, entertainment
solutions - utilities, and business management. It attracted
257 entries from eight countries around the world after three months, and 16
potential solutions and products have been selected so far. The
organisers said products and solutions for health, education, entertainment
and utilities accounted for more than 40 percent of the total, while entries
related to technology in business management made up 26 percent. The 32 best
teams in the preliminary round competed in Pitch Day, which took place on
October 5 and 6, to select the ten most potential teams for the final round
of the competition on October 16. The
contest’s winner will receive a cash prize of 300 million VND (12,000 USD),
meanwhile winners of the second and third prize will be awarded 200 million
VND and 150 million VND, respectively. Banks improve credit growth in last months of 2021 Credit
growth by the end of September 2021 reached 7.17 percent, much higher than
the level of 4.99 percent in the same period last year. However, in
September, due to the impact of the pandemic and social distancing, the total
outstanding balance of the whole economy decreased by VND23 trillion. Although
credit growth in the past nine months remained optimistic, especially in the
context of complicated developments of the Covid-19 pandemic, compared to the
end of August, credit in September recorded a negative growth when the
outstanding balance of the whole economy fell by VND23 trillion. In Ho Chi
Minh City alone, nine-month credit increased by about 6.41 percent compared
to the end of last year, but much lower than the growth rate of the whole
industry while it was always higher. In the third quarter of this year alone,
credit in HCMC only increased by 0.76 percent compared to the second quarter
of this year and the lowest compared to the previous two quarters. Mr. Nguyen
Hoang Minh, Deputy Director of the State Bank of Vietnam (SBV)-HCMC Branch,
explained that the pandemic had caused all production and business activities
in the area to stall. Many factories had had to reduce capacity or halt
production to fight the pandemic, so it had a significant impact on the
credit activities of banks. Moreover, banking operations also encountered
difficulties and obstacles related to travel restrictions, making access to
the disbursement of new loans grueling, thereby affecting credit growth. According to
the SBV-HCMC Branch, with the Covid-19 pandemic gradually being controlled,
along with the plan to reopen the economy, credit growth in HCMC is
forecasted to recover in the fourth quarter. At present, some districts in
HCMC, namely District 7, Can Gio District, and Cu Chi District, have
controlled the pandemic and are on a roadmap to restore production and
business activities. This trend
will expand when the pandemic situation is improved, and herd immunity is
achieved, as the ratio of people in HCMC getting the first dose of the
Covid-19 vaccine is on the increase. Under such conditions, capital demand
will rise again. Mr. Nguyen
Hoang Minh also said that this agency would direct commercial banks to deploy
the program to connect banks and businesses to best meet the capital needs to
restore and develop production and business activities in the new normal
state. At the same
time, it would promote business support programs under the direction of the
Government, the SBV, and the People's Committee of HCMC to contribute to the
economic recovery of the city. Mr. Nguyen
Tuan Anh, Director of the SBV Department for Credit for Economic Sectors,
forecasted that the credit scenario would recover strongly from October and
the last two months of 2021. The SBV will
have an interest rate compensation package of VND3 trillion, equivalent to an
outstanding balance of more than VND100 trillion, to be pumped into the
economy in the near future to support people and businesses. “The credit
target of this year is 12 percent, but it is flexible. If necessary, it can
still be expanded to create the most favorable conditions for businesses to
borrow capital," said Mr. Anh. Mr. Dao Minh
Tu, Standing Deputy Governor of the SBV, said that he would consider and adjust
the credit room for commercial banks to ensure sufficient capital supply for
enterprises to resume production and business activities. However, he
emphasized that this expansion of the credit growth room relies on the basis
that commercial banks must balance capital sources, evaluate the
effectiveness of loan plans, and take responsibility for credit grant
decisions. Therefore,
the SBV has recently required commercial banks to strictly control the growth
rate of credit balance and credit quality for sectors with potential risks or
seriously affected by the Covid-19 pandemic, especially outstanding loans in
the real estate sector for personal use purposes. It
prioritizes and focuses on giving loans to industries and sectors that
encourage and serve production, import-export, and international payment to
create conditions for businesses and people to access credit sources to
recover production and business activities after the Covid-19 pandemic. Analysts of
SSI Securities Company assessed that the SBV would continue to maintain the
loose monetary policy in the coming time. And one of the main measures is to
increase the credit room to facilitate commercial banks to cut lending
interest rates further. Lately, it is recorded that many commercial banks
have been granted additional credit rooms by the SBV. Specifically,
Techcombank and TPBank have just been granted the highest credit room at over
17 percent. Some other commercial banks, such as MSB, MBBank, and ACB, are
also allowed to increase their credit room to 9.5-15 percent. SBV’s
permission will help commercial banks have more room to finance businesses to
restore production and business activities. The leader
of a commercial bank in HCMC said that the bank's credit room remained
available, so it would consider giving loans to businesses that need and
qualify for loans according to regulations. Credit growth may recover in the
last three months of the year. However, it will not make a breakthrough like
in previous years because credit growth depends heavily on Covid-19 control
and the capital absorption capacity of the economy. HCMC, provinces enjoy smooth transportation thanks to ease of
Covid restrictions The
transport connection between HCMC and provinces, including Binh Duong, Dong
Nai, Ba Ria-Vung Tau, Lam Dong, Long An and Tien Giang has become more
convenient, comfortable and accessible in these days. There are still a few
Covid-19 checkpoints at gateways to localities. Functional
units establish lanes and organize traffic flow on main roads running through
Binh Duong Province, including National Highway 13 and DT 743. Vehicles
owners are required to display negative test result for covid-19 that is
taken once a week at provincial-transport checkpoints at Vinh Binh Bridge in
Thu Duc City’s Hiep Binh Chanh Ward, Phu Long Bridge in District 12 in HCMC
and roads in Binh Duong Province. Ba Ria-Vung
Tau Province has also asked for strict control of truck drivers due to an
increase in new Covid-19 cases related to drivers of lorries transporting
goods. In Long An
Province, vehicles transporting commodities have to continuously register for
the green lane while drivers and people on the vehicles must present a valid
negative coronavirus test result. The
Department of Transport of Tien Giang Province has required traffic
participants of vehicles carrying goods and agricultural products to stay at
their temporary accommodation after returning to the province. According to
the Department of Transport of HCMC, transport operators must register for
new identification paper with QR code at the website vantai.drvn.gov.vn for
vehicles transporting goods between HCMC and provinces starting on October
10. On the same
day, the People’s Committee of Binh Duong Province has issued a document on
agreeing with the HCMC’s traffic draft plan of picking up specialists and
workers between the two localities and the use of personal vehicles in border
areas among HCMC’s Thu Duc City and Thuan An and Di An cities in Binh Duong. The People’s
Committee of Dong Nai Province alson came to an agreement on HCMC’s plan of
the use of automobile for carrying workers among the southern economic hub,
provinces of Binh Duong, Dong Nai, Long An and Tay Ninh. ASEAN – major hub for India's global economic engagement:
Minister The
Association of Southeast Asian Nations (ASEAN) is one of the major hubs for
India's global economic engagement, Indian Minister of External Affairs S.
Jaishankar said on October 7. Speaking at
the Indo-ASEAN Business Summit, Jaishankar noted that India's ties with ASEAN
are rooted in history, geography and culture. What has
energised them in recent years is a growing awareness of the potential they
hold for mutual interests and development, he stated. “From the
prolonged crisis of the last two years, four areas have come into sharp focus
for international business cooperation: resilient and reliable supply chains,
health security, digital for development, and green and sustainable
recovery,” he said. The minister
said India's economic resurgence is driven by reformations in several sectors
including manufacturing, labour, agriculture, education, skills, and of
course, improving the ease of doing business. Ties between
India and ASEAN have intensified during the past few years with attention to
ramping up cooperation in the areas of trade and investment as well as
security and defence, he added./. More firms in Binh Duong register to resume operations An
increasing number of factories in the southern province of Binh Duong has
registered to resume operations, according to the Binh Duong Industrial Park
(IP) Authority. In addition
to enterprises working under “three-on-site” and “one route, two
destinations” models, there are nearly 200 businesses that have signed up to
reopen under the “three green” model. Enterprises
outside IPs have also begun to follow suit and each case will be thoroughly
considered by local authorities in order to ensure safety. The
province’s employment centre said local enterprises need about 50,000 workers
in the coming time. Binh Duong
has worked to administer the second COVID-19 jabs to its residents,
with priority given to workers at IPs./. Experts discuss tourism management at heritage sites The Vietnam
National Administration of Tourism (VNAT) and the Colombian Embassy in
Vietnam on October 8 held a webinar discussing the role of central and local
management agencies and enterprises in managing tourism at heritage sites. The event,
part of activities to realise the memorandum of understanding on tourism
cooperation between the Vietnamese Ministry of Culture, Sports and Tourism
and the Colombian Ministry of Commerce, Industry and Tourism, attracted the
participation of hundreds of experts and delegates from the two countries. They shared
information, policies and experience in the role of central and local
management agencies and businesses in tourism management at the
UNESCO-recognised heritage sites, including Vietnam’s Trang An Landscape
Complex – a World Cultural and Natural Heritage Site - in Ninh Binh province. The
delegates focused discussions on issues related to tourism management such as
promoting the cultural and spiritual values of heritage sites, and preserving
these values in a sustainable way. Speaking at
the webinar, deputy head of the VNAT Ha Van Sieu said that although the
COVID-19 pandemic has had a heavy impact on the tourism industry, the world
has the right to hope for the sector’s recovery and development in the near
future. This series
of events will be the premise to clearly orient the recovery and development
of the tourism industry of the two countries. Director of
the Ninh Binh Department of Tourism Bui Van Manh said that the title of world
heritage has created an important highlight, making Ninh Binh a bright spot
on the tourist map of Vietnam (top 10 localities with the highest number of
visitors in Vietnam). In order to
actively respond to COVID-19 and prepare resources to develop tourism after
the pandemic is put under control, the provincial Department of Tourism and
the Management Board of the Trang An Landscape Complex have implemented many
measures to stimulate tourism, including offering attractive products at
preferential prices and ensuring service quality to attract domestic
visitors. The province
is also developing new products to attract international tourists, especially
those from regions that are not affected by the pandemic./. Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes |
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