VIETNAM BUSINESS NEWS NOVEMBER 30
15:43
Time for securities firms to
raise charter capital
Many securities companies are planning to raise capital
through forms such as dividend payment, purchase rights and private offerings
to meet the growth of the stock market.
The Board of Directors of SSI Securities Corporation
(SSI) has just issued a resolution to submit to the General Meeting of
Shareholders a plan to increase charter capital to nearly 15 trillion VND
(661.4 million USD) through share offerings to existing shareholders.
Accordingly, the securities firm plans to offer about
497.4 million new shares to existing shareholders, with a ratio of 2:1 and
offering price of 15,000 VND per share. The total offering value at maximum
par value is approximately 4.97 trillion VND. Existing shareholders have the
right to transfer their rights to buy shares to others within a specified
time.
In September, SSI issued nearly 218.3 million shares to
increase capital from owner's equity and offered more than 109.55 million
shares to existing shareholders. Thereby, the company’s charter capital rose
to nearly 9.85 trillion VND.
With the new resolution, if the issuance is completed,
its charter capital will reach nearly 15 trillion VND, continuing to maintain
SSI's position as the largest securities company in Vietnam.
A representative of SSI said that the rise in charter
capital is to supplement business capital, improve underwriting capacity,
investment capacity and margin lending capacity. During the time when there
are no margin lending transactions, the money will be used to invest in bonds
and certificates of deposit to ensure efficient use of capital.
Also during the period, Yuanta Securities Vietnam
Company Limited (YSVN) has just been approved by the State Securities
Commission (SSC) to increase its charter capital from 1.5 trillion VND to 2
trillion VND.
Nguyen Thanh Tung, general director of YSVN, said that
higher charter capital will help YSVN increase its capacity to provide more
margin loans. It will also increase investment in technology, upgrade
systems, improve processes, hire more employees, conduct domestic and foreign
training and develop new products to bring the best experience to customers.
The document expected to be submitted to the 2021
Extraordinary General Meeting of Shareholders next month of VNDirect
Securities Corporation also said that its Board of Directors will submit to
the General Meeting of Shareholders for approval an offering plan of nearly
435 million shares to existing shareholders with a ratio of 1:1 and the
offering price equal to the par value of 10,000 VND share.
According to the plan, VNDirect will use 40 percent of
the fund to supplement capital for margin lending activities, while the rest
is for investment in valuable papers, underwriting securities activities,
supplementing capital for issuance and distribution of covered warrants.
VNDirect's Board of Directors will also submit a plan
to issue nearly 348 million shares to increase capital from equity sources
(bonus shares) with the expected rate of 80 percent, meaning shareholders
with 100 shares will be entitled to receive 80 new shares.
With these two issuances, the charter capital of
VNDirect can edge to more than 12 trillion VND. The execution time is in 2021
or 2022.
Many other securities companies also have significant
capital increase plans at this time.
Preliminary statistics showed that more than 30
securities companies have plans to raise capital in 2021, mainly through
forms like paying dividends, purchase rights, and private offerings.
YSVN said that the stock market is witnessing a
historic boom in both liquidity and trading value, becoming the most wanted
investment channel. Just in the first ten months of 2021, there were more
than one million new brokerage accounts opened, which was the highest figure
in history.
The rapid increase in the number of accounts and
positive movements of the market has boosted demand for margin loans.
However, due to tight capital sources and regulations
on the ceiling of outstanding loans for the activity, many securities
companies have not been able to meet investors' demand.
Therefore, YSVN believes that these raising charter
capital plans are made at the right time, helping companies to increase
margin lending, serving the rising capital demand.
Abundant capital will also improve the profit outlook
of securities companies.
In the first nine months of this year, income from
margin lending, brokerage and proprietary trading of securities companies
climbed dramatically compared to the same period last year, helping many
securities companies reach their profit plans for the whole year of 2021
three months ahead of scheduled./.
Economic forum to help Gov’t develop
recovery measures
The Vietnam Economic Forum 2021 is scheduled to take
place on December 5 to help the Government design a package of fiscal and
monetary solutions to shore up the economy.
Chairman of the National Assembly (NA) Vuong Dinh Hue
presided over a meeting in Hanoi on November 30 with standing members of the
NA’s Committee for Economic Affairs and a group of experts and researchers on
financial and monetary policies assisting the implementation of the
socio-economic recovery and development programme.
He said the forum will be organised by the NA’s
Committee for Economic Affairs, the Party Central Committee’s Economic
Commission, and the Vietnam Academy of Social Sciences.
The event will take place both in person and via
videoconference and gather domestic and foreign scholars, experts, and
researchers. It aims to help clarify scientific and practical grounds to help
the Government design a package of fiscal and monetary solutions.
Hue said it is necessary to have in-depth assessment
since the global economy has changed constantly amid the COVID-19 pandemic’s
impacts; as well as to identify the extent of damage and recovery capacity of
the economy, determine sectors needing more support to recover and develop,
and find out potential areas for accelerating recovery to fuel growth of the
economy.
Short-term solutions also need to take into account
long-term issues, macro-economic stability, and sustainable development, the
Chairman said, adding that the policies helping with economic recovery in the
short term should not cause macro-economic instability in the long term,
according to the top legislator.
The Government has built a plan to develop fiscal and
monetary mechanisms and policies for assisting the implementation of the
general socio-economic recovery and development programme./.
AmCham Chairwoman: Foreign companies
believe in Viet Nam’s long-term growth potential
Many foreign companies have stayed committed to Viet
Nam despite the pandemic situation back in the first half of 2021 because
they believe in the country’s long-term growth potential.
Ms. Virginia Foote, Chairwoman of the American Chamber
of Commerce in Viet Nam (AmCham) made the above statement in a
recent interview with VGP.
Regarding the Government’s efforts in fostering
economic recovery over the last few months, Virginia said: “The Vietnamese
government had done great work to encourage and fostering economic recovery
before the Delta variant hit, and of course new challenges emerged after.
During the high-ranking official working trips to U.S and to Europe, we can
see that the government is being proactive in engaging with foreign companies
to encourage businesses in Viet Nam, and many MoU have been signed with the
witnessing of the State President and the Prime Minister with American and
European companies.”
Additionally, in Viet Nam, the Prime Minister has held
meetings with most major foreign Chamber of Commerce such as AmCham, EuroCham
and KorCham to listening to the Foreign Invested Enterprises’ (FIE)
challenges and problems during the pandemic in Viet Nam, especially under the
delta variant period.
The Prime Minister not only acknowledged foreign
enterprises’ problems, he also direct relevant ministries/ministerial-level
addressing those problem and promises to improve the investment environment
for FIE in the upcoming time.
All member of Amcham was very grateful for the
productive meeting with the PM and it greatly reaffirms Viet Nam’s position
as a reliable investment destination with the FIE communities.
Ms. Virginia expressed her belief that Viet Nam still
has huge potential to develop under the new normal policy. Many foreign
companies have stayed committed to Viet Nam despite the pandemic situation
back in the first half of 2021 because they believe in the country’s
long-term growth potential. Naturally, they will utilize the new policy to
resume production as soon as possible.
With the potential of CTPPP became effective on
beginning of next year and the existing EVFTA, RCEP, these FTA would open
more opportunities for new FDI and expand the Vietnamese market, but ease of
cross border travel will need to come with it for vaccinated expats.
In additional, the Government is very active in
attracting more new investment with many favorable policies and the signing
of many MoUs in their foreign trips such as those by the Prime Minister, the
Sate President, the Chairman of the National Assembly and Ministers.
Thus if Viet Nam government continues to create
globally harmonized policies on digital economy, tax, clean energy, and clean
environment, the future is bright.
Questioned about how Viet Nam should address labor
shortage and supply chain disruption, Virginia said the problem of labor
shortage and supply chain disruption is not only Viet Nam problem but the
world problem post-pandemic age.
The Vietnamese Government and business can learn from
other countries’ cross border and cross provincial policies but adapt them to
fit in the situation of Viet Nam at the moment.
For in the short term, the Government and business have
to offer some such as provide free transportation, free Covid test, housing
aids for those who temporary cannot find accommodation after return, monthly
aids or other benefits to encourage workers to return to the city to work.
The Government should also listen to factories,
production and logistics companies to know their issues and concern and
address them accordingly in the policies supporting these businesses.
In the long run, Viet Nam should shift to greater use
of the digital economy, and focus on training and developing skilled labor
workforce to allow a broader range of workers skill sets in the future.
Vietnamese and FDI companies can work together to
identify strengths and weaknesses in the domestic and international supply
chairs to come up with appropriate and flexible strategies going forward.
Referring to measures AmCham should take to promote
investment and trade ties between enterprises of Viet Nam and the U.S.,
Virginia said: With work between the U.S. Chamber in Washington and AmCham
Viet Nam Ha Noi, we expect US$1 million of covid related medical equipment
will be donated to Viet Nam in the near term.
AmCham Viet Nam Ha Noi members have donated millions
more in equipment generally to Viet Nam and support for their workers in
particular.
Between December 2021 to the first quarter of 2022,
AmCham intended to jointly-organized a few investment/trade promotion events
to attract more American as well as other foreign investors into Viet Nam,
along with two additional programs set for early 2022.
AmCham is also working with provinces to help them
attract FDI and host trade shows and events.
AmCham is trying to working with the Government to come
up with more incentives or create more favorable conditions for our member to
increase their investment in Viet Nam./.
Bac Giang city strives to become
green urban area
Bac Giang city in the northern province of the same
name will mobilise all resources to develop in the direction of green and
smart urban area, Chairman of the municipal People’s Committee Dang Dinh Hoan
has said.
To realise the target, the city has set to basically
fulfil criteria for the first-tier urban area by 2025 and be recognised as
one by 2030.
It aims to raise per capita income of local residents
to 8,500-9,000 USD a year and call for more than 100 trillion VND (4.41
trillion USD) in social sources for development.
Bac Giang city will invest in and build two or three
green and smart urban areas, two to four three- and five-star hotels, two to
three nightlife economy zones and a 100-ha park.
It aims to be among top 10 provincial cities of the
country in terms of smart urban area index; and raise
the digital economy's share in the gross regional domestic product to
about 30 percent and at least 20 percent in each sector.
The city will work to put power lines underground,
build more parks, recreation sites and garbage depots in the city, and invest
in a waste-to-energy plant.
It is set to bolster management and supervision over
the quality of water in rivers and lakes, as well as the collection and
treatment of wastewater at urban areas, industrial parks and clusters. Due
attention will be paid to firms’ discharge activities and environmental
pollution treatment at craft villages, and safety and order in urban areas.
The application of new technologies in agricultural
production will be promoted and a smart urban management centre will be set
up to help with management work.
A security camera system will be installed in the
city's central area, key traffic spots and public places. Digitalisation in
archive is due to be carried out across all fields, together with
e-government applications.
In the coming time, Bac Giang city will mobilise all
resources to take the lead in digital transformation, particularly in
information technology (IT) and communications to meet demand for the
building of the digital government and the city’s socio-economic development.
Priorities will be given to investment in and
development of sectors that generate high added value like production of
hardware and software, and support services of IT and communication, with an
aim to create a smart urban foundation for Bac Giang city.
The city, spanning 66.77 sq.m, has 16 administrative
units of communal level. It is the political, economic and cultural hub
of Bac Giang province.
Situated on an artery road linking Hanoi with Lang Son,
and the Huu Nghi international border gate, the city has a favourable
location on an economic corridor running through the four localities of Lang
Son, Hanoi, Hai Phong and Quang Ninh.
Bac Giang city has made strides over the years,
with an average annual economic growth rate in the 2011-20 period hitting
11.7 percent. Meanwhile, budget collection surged 38 percent against the
estimates. Urban planning and management have improved as infrastructure has
been upgraded and rural area given a facelift.
Many major constructions and projects have been
completed and helped improve urban quality and landscape in the city, notably
the Hanoi-Bac Giang and Bac Giang-Lang Son expressways, the Dong Son bridge
and the southern urban area, among others.
A number of big investors such as Toyota, Honda and
Hyundai have channeled investment into the city. Bac Giang is now home to
about 100 cooperatives and more than 4,000 firms, of them 1,670 are newly
established ones with registered capital worth 7.54 trillion VND. There are
40 foreign direct investment projects totalling over 236 million USD.
Bac Giang city has to date earned 71.27 out of 100
points to become first-tier urban area./.
Wood exports unable to meet yearly
target
The severe impact of the Covid-19 pandemic
notwithstanding, wood and wooden products were still export items with a
growth rate of 21.4 percent in the last ten months of 2021, reaching
US$11.890 bn.
This number represents a ten-month increase, but it is
actually an increase from residuals of last year.
Since the outbreak of the fourth wave of the Covid-19
pandemic, after reaching the peak of $1.5 bn in June and July, it was down to
$1.3 bn through August, September, and October, dropping far below the level
of $1 bn per month.
This decline is seen in most of the top categories of
items such as furniture, seats, and plywood. The decline in most key markets
such as the US, South Korea, UK, and Canada is about 20 percent per month.
The decline was almost uniform, from large-scale enterprises to craft
villages and households. If November and December do not see a breakthrough,
the target of $14 bn for the whole year will be hard to achieve.
For a long time, the production of wooden furniture,
especially wooden products for export, have depended on imported wood
sources.
This situation is deepening because domestic wood
sources are increasingly becoming rare now while using foreign wood is
suitable and avoids being declassified on its origin. Since the Delta variant
of the Covid-19 pandemic broke out again, the supply was immediately
disrupted until recent months, affecting the production and timely delivery
of the right quantity, mainly of logs and planks.
The most common practice for furniture manufacturing
enterprises to respond in the current pandemic situation is to either shut
down completely or operate moderately, maintaining 20 percent to 50 percent
capacity as it is impossible to immediately reach 100 percent capacity.
According to a mid-October study, many enterprises have cleaned up their
workshops.
At the end of October, some enterprises restarted and
their productivity reached 50 percent to 55 percent, by the end of November
it reached 60 percent to 65 percent, by the end of December it was 70 percent
to 75 percent, and this momentum is expected to stay until the end of January
2022. It is forecast that by the end of February 2022, productivity will
reach over 80 percent.
Workers who have returned to their hometowns to avoid
the pandemic will find it difficult to immediately return back to factories,
while recruiting new workers who do not know their jobs will not be favorable
in the restarting process. It is known that some enterprises have overcome
this situation by overtime allowances and attractive incomes, but this can
only be a temporary solution.
Support from fiscal policies such tax payment
extensions, loan interest rate reduction, and debt repayment term extensions
can benefit only healthy businesses, while other businesses that have stopped
production, and are not exporting and not subject to tax, will not be able to
borrow.
Gasoline prices too increased suddenly on 10 November.
This is the fifth sharp price increase since the beginning of September.
Petrol is the input of most industries, production, and life itself, and
sooner or later it affects the cost of goods, especially export of goods.
Export prices cannot immediately increase in proportion
to the increase of domestic costs. European and American customers can
understand the situation but will still find it difficult to adjust. It is
believed though, that most exporters have already adjusted their price upto
early 2022.
Vietnam voices concerns over
multifaceted crises in Lebanon
Vietnam expressed concerns over the ongoing crises in
Lebanon and called on the country to redouble efforts to surmount challenges
during a UN Security Council (UNSC) meeting on November 29.
The event was attended by UN Under-Secretary for
Peacekeeping Operation Jean-Pierre Lacroix, UN Special Coordinator for
Lebanon Joanna Wronecka and UN Interim Force in Lebanon (UNIFIL) Force
Commander Maj. Gen. Stefano Del Gol, who briefed the UNSC on the situation in
Lebanon, UNIFIL operation and the implementation of Resolution 1701 (2006).
Speaking at the event, Ambassador Dang Dinh Quy,
Permanent Representative of Vietnam to the UN, welcomed the establishment of
a government in Lebanon but voiced concerns over the country’s multifaceted
crises despite the new government’s efforts.
If Lebanon’s current diplomatic row with Gulf states
cannot be solved soon, it would worsen the challenges the country is facing
and negatively affecting the regional situation, Quy said, urging regional
states and organisations to help ease the way for Lebanon to surmount its
difficulties.
He called on Lebanon to put forth reforms and well
prepare for the National Assembly election as planned in 2022.
The Vietnamese diplomat also showed worry about the
lack of progress made towards the implementation of Resolution 1701, urging
all stakeholders to strictly observe the resolution, respect the UNIFIL’s
right to freedom of movement and facilitate its full and timely access to
areas of interest.
Adopted in August 2006, Resolution 1701 calls for the
full cessation of hostilities, the deployment of Lebanese forces to Southern
Lebanon, parallel withdrawal of Israeli forces behind the Blue Line,
strengthening the UNIFIL to facilitate the entry of Lebanese forces in the
region and the establishment of a demilitarised zone between the Blue Line
and the Litani River./.
65 million USD poured into hi-tech
agricultural complex in Kon Tum
Hung Nhon Group and Netherlands-based De Heus
Group have signed a memorandum of understanding with the People's Committee
of Kon Tum province on investment cooperation in a complex of hi-tech
agricultural zones in Dak Lak.
Under the MoU, the two groups will engage in developing
a pig breeding farm which will cover 200ha and has a total
investment of 65 million USD. It will apply advanced technology to produce
high quality agricultural products following a closed chain meeting European
standards, as well as organic cattle feed and fertiliser.
Once completed and put into operation, the project will
create jobs for 250-300 local labourers, contributing to the economic
development of the province.
On this occasion, Hung Nhon Group and De Heus Group
have donated six monitors and 4,000 test kits worth 1 billion VND (44,120
USD) to the province’s COVID-19 prevention and control fund./.
Pressure on to develop feed
materials
Struggling with the sharp increase in the price of
animal feed materials, the husbandry industry has a headache figuring out
solutions for long-term, sustainable development.
Since 2020, the animal feed price in the country has already been adjusted
nine times, significantly affecting the production of farmers, especially
while the selling prices of poultry and live hogs are falling.
In the context of accelerating the recovery of
production and livestock, relying too much on imported raw materials will
keep the price of animal feed high. In the government’s Resolution
No.128/NQ-CP on interim regulations on safe and flexible adaption to the
pandemic released last month, the government highlighted that the
agricultural industry should seek local material resources for the production
of animal feed and mitigate the dependence on imports.
Instead of using industrial feed, Doai Phuong
Cooperative in Hanoi’s Son Tay town has fed 80,000 chickens with feed cooked
in the cooperative. This not only reduces livestock costs but also improves
quality. “Proactively controlling the supply of animal feed, we are managing
the process more easily and accounting for the costs for every stage,” said
Nguyen Huy Ba, director of Doai Phuong Cooperative.
Using available raw materials from domestic crop and
livestock, this cooperative has been producing self-mixed animal feed and
save costs for animal feed by 20 per cent.
Strengthening production in biosecurity to reduce
production costs has been promoted by some localities in recent times.
However, this may be the best solution for short-term and small- and
medium-sized farms only.
“Certainly, we believe there are certain raw materials
that are suitable for Vietnam’s climate. One example is corn, a key raw
material in animal feed that local supply cannot meet the demand yet,” Johan
van den Ban, general director of De Heus Vietnam and Cambodia, told VIR.
“Vietnam can consider moving low-productivity rice areas to grow corn, which
will be very beneficial for feed producers to reduce dependency on imports.”
However, corn productivity in Vietnam in general is
lower than worldwide (at about 80 per cent). “It is not necessarily something
negative for Vietnam to be dependent on imports for certain raw materials
that are produced more efficiently in other parts of the world, as long as
Vietnam can utilise its resources optimally,” said van den Ban.
He added this is already happening with agri-food
products such as basa fillet, shrimp, and other seafood, as well as other
important products like coffee, fruit, and vegetables.
Pham Thi Huan, CEO of Ba Huan JSC, said that for
Vietnam’s livestock industry to overcome difficulties and develop
sustainably, the industry must pay attention to self-growing corn, reducing
or even removing dependence on imports. “Vietnam is a top rice producer, so
it can afford to use cheaper rice when used as a raw material for animal feed
production,” she said.
Meanwhile, the cost of fuel and raw materials still
shows no sign of decline. Animal feed producers around the world are
importing minerals and vitamins from China, but these ingredients’ factories
have had operations halted in many areas due to sharp energy cost increases.
Van den Ban explained, “Therefore, we do expect the
price of these key materials to eventually come down. But right now, this is
a challenge for feed companies and farmers in controlling production prices
while adapting to the slow recovery of animal protein demand.”
Despite being one of the leading countries in producing
and exporting agricultural food, Vietnam depends heavily on imported
materials for animal feed at about 20 million tonnes imported every year,
mainly made up of soybeans, corn, and wheat.
Vice chairman of the Vietnam Animal Feed Association,
Nguyen Xuan Duong, said that Vietnam needs an additional 8 million tonnes of
biomass corn to make feed materials for buffaloes and cows. “This is a space
for localities to take advantage of and develop biomass maize, reducing the volume
of imported materials,” said Duong.
On average, the country has nearly 157 million tonnes
of agricultural by-products each year. In the coming time, it is necessary to
have more policies to encourage enterprises to invest in technology to turn
by-products into a source of feed for livestock.
“We should facilitate all organisations and individuals
to apply science and technology to make good use of agricultural
by-products,” said Tong Xuan Chinh, deputy director-general of the Department
of Livestock Production under the Ministry of Agriculture and Rural
Development.
In addition, experts also held that more supportive
policies are needed to form large raw material production areas and value
chains in the animal feed industry.
Along with the growth of the livestock industry, the
animal feed industry is growing at an average of 13-15 per cent per year, so
the pressure to develop input materials is relatively large. According to the
General Department of Vietnam Customs, as of October 15, Vietnam imported 13.54
million tonnes of wheat, corn, and soybeans, worth $4.328 billion, up 2.42
per cent in volume. Every year, the agricultural sector can only provide a
maximum of 13 million tonnes of corn, rice bran, and cassava for animal feed
production, while the annual demand stands at up to 27 million tonnes.
“Companies processing industrial animal feed are not
interested in collecting materials that are too small. The price of local raw
materials is up to 20 per cent higher than imported ones. Thousands of tonnes
of materials are imported at the same time and of the same quality,” said
Duong.
Manufacturing and processing driving
Thai Nguyen
Thanks to the efforts of the leadership, the business
community, and local residents in implementing the government’s targets on
pandemic containment and socioeconomic development, the northern province of
Thai Nguyen has posted upbeat achievements in the year to date.
The manufacturing and processing sector continues to drive local industrial
development. Thai Nguyen’s index of industrial production (IIP) expanded 8.4
per cent in October compared to September, and up 7.6 per cent on-year. That
of the manufacturing and processing industry grew 8.4 per cent over the
previous month and up 7.76 per cent on-year. Generally, the province’s IIP
rose 7.41 per cent in the first 10 months of 2021 compared to the same period
in 2020.
According to Thai Nguyen Department of Industry and
Trade, in October many of its key industrial products reported on-year
growth, such as steel and iron products reaching 132,200 tonnes, up 2.6 per
cent; television cameras amounted 6.5 million items, up 11.4 per cent;
motorised vehicles’ accessories reached 5.8 million items, up by the same
amount; and commercial power output came to 490 million kWh, equal to a 16.5
per cent jump on-year.
To lay a firm foundation for socioeconomic development,
Thai Nguyen has set industry as the spearhead. In light of this, the
resolution of Thai Nguyen’s latest Party Congress has envisaged turning the
province into one of the more modernity-oriented economic and industrial
centres in the northern region by 2030.
The province has set forth the target of reaching 9 per
cent growth in annual local gross industrial production, equal to $3.13
billion a year, with an ever-increasing proportion of the
industry-construction sector striving to reach 61 per cent of the local
economic structure by 2025.
Towards this goal, Thai Nguyen People’s Committee has
crafted and enacted an action programme to realise the resolution and
approved the province’s industry and handicraft development programme for
2021-2025, as well as devised growth scenarios focusing on the tasks to push
up industrial production.
Simultaneously, the province has presented a raft of
measures laying the bedrock to boost industrial development, such as
presenting specific mechanisms and policies for investment attraction, with
priority given to attracting investment into local industrial zones (IZs) and
clusters as well as prioritising the sectors and products with high tech application
and creating high added value, aside with export production.
Thai Nguyen is now home to seven IZs and 35 clusters
bringing together potential sectors for development including electrical and
electronics, mechanical manufacturing, mineral processing, and agro-forestry
attached to environmental protection, among others.
Trinh Viet Hung, Chairman of Thai Nguyen People’s
Committee, said that as the pandemic has left adverse impacts on business
performance, the government has presented many policies and mechanisms to
support people and businesses.
The province has made efforts for effective
implementation of set resolutions and decisions in order best support firms,
such as taking the initiative to get a grip of the impediments facing firms
to be able to present timely remedies, or giving priority to human resource
training based on firms’ demands, particularly big foreign investors based in
IZs to ensure efficient use of labour, Hung explained.
According to Nguyen Ba Chinh, director of Thai Nguyen
Department of Industry and Trade, the department along with other sectors and
counterparts have made efforts towards administrative procedure
simplification. The top target is that all administrative procedures at the
department will reach level 4 in the near future to best serve individuals
and businesses.
Dong Thap tourism model gets upgrade
Businesses in the Mekong Delta province of Dong Thap
are actively promoting tourism services and agricultural products on
e-commerce platforms to adapt to changing needs.
To ensure supply of necessities to customers, Dong Thap Department of
Information and Communications (DIC) has coordinated with relevant units to
support local businesses to list the key products on e-commerce platforms
like Postmart and Voso. Since the beginning of the pandemic, nearly 1,500
tonnes of agricultural products have been sold online with over 400 farmer
households engaging in e-commerce platforms.
Dong Thap has gained some achievements in supporting
farmer households to join e-commerce platforms, thereby contributing to the
development of the digital economy in the agricultural and rural sectors in
recent times. Riding on this success, the DIC has proposed the provincial
people’s committee to issue incentives for tourism service providers to participate
on e-commerce platforms. The goal is to promote the development of the local
tourism industry along with the consumption of local agricultural products
through postal and delivery services.
The province will assist local organisations and individuals
in doing business in tourism, including attractions, agencies, and
accommodation establishments. They will receive support to participate on
e-commerce platforms to introduce and advertise products and services to both
domestic and international markets (see box).
Under the “One Commune, One Product” programme, the
province will connect all of its communes to promote agricultural products
and specialities to tourists, contributing to promoting its delivery
services. Other measures include boosting advertisements and business
efficiency of both organisations and individuals offering tourism services on
such platforms. To replicate this relatively new model, the DIC has
coordinated with relevant units to pilot the scheme in Sa Dec city. The
department has organised training on digital skills for farming households
and tourism service providers.
Through training sessions, the participants can gain
basic skills to participate in the digital world. They will learn how to
register an account to list tourism products and services on e-commerce
platforms as well as open online payment accounts serving e-commerce
transactions.
The department will implement promotion and connection
campaigns to facilitate tourism service providers to buy and sell products
and services on the e-commerce platforms and, after training, the
representative of tourism service providers can set up their own accounts,
create online booths, and update products.
Homestay owner Thanh Hung expressed excitement that The
Frog Flower House is the first tourist facility to join the Postmart and Voso
platforms. He said that he will fully update the information and images of
the services at the facility to promote his homestay to attract more
tourists. At the same time, he will register for an online payment account
for convenience and efficiency.
Nguyen Lam Thanh Thuy, deputy director of DIC, said
that the initiative not only aims to promote local tourism products online so
that tourists can quickly access the latest information – local companies can
also expand their scope. In addition, the province is also promoting the
consumption of local specialities through these delivery services at a time
when the pandemic has greatly affected production and business activities in
the province. Dong Thap will replicate the model across communes in the
locality.
By the end of 2021, Dong Thap will boast at least 20
tourism service providers participating in e-commerce platforms and, next
year, the province aims to support at least 50 tourism service providers to join.
All tourism service providers will be trained to set up
their accounts on e-commerce platforms. They will not only have online
payment accounts but also learn how to promote their tourism services online.
Dong Thap wants to see half of all tourism service
providers receiving online orders via e-commerce platforms during the peak
tourism season. Tourists will get frequent updates and useful information
about Dong Thap’s tourism promotion campaigns and packages via these
platforms and mobile apps. The information will cover travel itineraries,
tourist attractions, accommodation facilities, restaurants, hotels, food and
beverages, shopping, and entertainment zones.
Seamless transport in Long An sights
Aside from gearing efforts towards administrative
procedure reform and business support, the Mekong Delta province of Long An
has focused on developing a seamless transport infrastructure system in
recent years, particularly that connecting industrial zones and clusters with
Long An International Port.
Through five years of implementation, many projects have been put into
operation, contributing a great deal to improving the rural transport
infrastructure system in Long An’s key economic zone and strengthening links
with different industrial zones (IZs) and clusters (ICs). These have laid the
foundation for investment attraction, gearing local economic structure
towards increased proportion of industry and services with lower agriculture
percentage, supplementing income sources for local budget, and pushing up the
province’s socioeconomic development.
Back in 2015, breakthrough programmes and several major
works were put into the pipeline for the province, mostly in transport
infrastructure development. Accordingly, the programmes on mobilising all
resources into building transport infrastructure featured a list of 14
arterial roads in diverse provincial districts such as Ben Luc, Duc Hoa, Can
Giuoc, and Can Duoc that connect to different IZs and ICs, and particularly
to Long An International Port and transport routes to Ho Chi Minh City.
The key works included the Provincial Road No.830 (the
Duc Hoa-Tan Tap section), the National Highway No.50, Tan An city’s ring
road; and an urban transport axis connecting to Ho Chi Minh City.
Leveraging these achievements, the Party Congress
resolution for the province covering 2020 towards 2025 has highlighted the
need to invest further in three more key transport infrastructure works: Tan
An city’s ring road and a bridge crossing Vam Co Tay River (remaining
section); the Provincial Road No.827E site clearance (section from beginning
of the road to Vam Co Dong River); and the Provincial Road 830E (section from
the T-junction to the Provincial Road No.830 in Can Duoc district).
The ring road and bridge crossing Vam Co Tay River is
being carried forward from the previous development period.
Efforts are meanwhile underway to build a section from
Thu Thua to the National Highway No.1 through the headquarters of Tan An
People’s Committee and using World Bank funding; and a section from the
National Highway No.1 to the Provincial Road No.827A with Long An Department
of Transport acting as the developer, with capital sourcing from the local
budget. The next step involves completion of site clearance, building a
bridge crossing Vam Co Tay River and a remaining road section. The project to
build the Provincial Road No.830E involves building over 32km of road
reaching urban highway standards. Construction consists of different phases,
in which phase 1 involves building the 9km four-lane road section.
The Provincial Road No.827E involves building over 35km
of road crossing the province. The road begins at Long Hau commune in Can
Giuoc district and ends at Hiep Thanh commune in Chau Thanh district. The
project consists of four components, of which three involve site clearance at
different road sections and one involves on investment construction.
In light of Long An’s Party Congress Resolution, during
2021-2025 efforts will be focused on site clearance and building the road
section from Tan Kim T-junction to Vam Co Dong River.
The total capital investment for site clearance work of
these three key projects comes to around $630.3 million, in which $10.86
million goes to Tan An city’s ring road, $96.5 million is allocated to the
Provincial Road No.830E, and the remainder is for the Provincial Road
No.827E.
The investment value for the construction part of these
three projects is estimated at $135.4 million, in which about $32.8 million
goes to building Tan An city’s ring road and $504.3 million goes to the
Provincial Road No.830E scheme. The remaining sum is for building the
Provincial Road No.827E’s section from the starting point in Can Giuoc
district to Vam Co Dong River. For the remaining parts, investment capital
would be raised from other sources.
According to Long An People’s Committee, the province
would scale up efforts to ensure sufficient capital sources for key transport
infrastructure projects along with the venture progress. Efforts are also
being made on assigning concrete tasks to each department, section, and the
people’s committees in relevant locations.
These key projects, once completed and put into use,
will create a seamless transport infrastructure system for the province,
ensuring smoother connection between different areas in the province and with
other localities, particularly Ho Chi Minh City, helping the province to
further allure investors.
Significantly, the Provincial Road No.827E connecting
Ho Chi Minh City and Long An with Tien Giang is of strategic importance. Once
completed, the road will not only create transport breakthroughs and help
ramp up investment attraction in industry-trade and services development in
relevant districts of the province, but will also greatly facilitate goods
transportation in the southwestern coastal provinces of Ca Mau, Soc Trang,
Tra Vinh, and Ben Tre.
Part of the southern key economic zone, Long An enjoys
a strategic position as a gateway from Ho Chi Minh City and southeastern
region to cities and provinces across the Mekong Delta. The province has a
border to Cambodia and is also home to Long An International Port, which is
accessible to 70,000DWT ships. The province has abundant material resources
favourable for the development of agricultural products and food processing
industries provided by agricultural production areas in the province and
other localities in the neighbourhood, with the delta being the country’s
most important agricultural production region.
In addition, Long An features a vast land fund for
industrial development, accommodating 62 ICs covering over 3,100ha in total
area. Some 35 IZs spanning nearly 12,000ha in total were added to the
national IZ development planning. These zones are positioned in a 30-40km
radius from Ho Chi Minh City, with ready-to-serve infrastructure that will
suit investors.
Contiguous to Ho Chi Minh City, Long An also
accommodates many arterial roads of regional and national significance such
as the national highways No.1 and No.50, Ho Chi Minh City-Trung Luong and Ben
Luc-Long Thanh expressways, among others.
FDI inflows at a very slight rise in
first 11 months
Newly- and additionally-registered foreign direct
investment (FDI) in the first 11 months reported increases of 3.76 and 26.7
per cent on-year.
As of November 20, total FDI inflows into Vietnam were up 0.1 per cent
on-year at $26.46 billion, according to the Ministry of Planning and
Investment's Foreign Investment Agency, with newly- and
additionally-registered capital both rising against the year previous.
Specifically, $14.1 billion was poured into 1,577
newly-licensed projects, a decrease of 31.8 per cent in number but a rise of
3.76 per cent in value. Besides this, $8 billion was added into 877 projects
currently underway, a decrease of 16.6 per cent in the number of projects and
a rise of 26.7 per cent in value. Foreign investors also poured $4.4 billion
into share purchase deals, down 33 per cent on-year.
The sharp decline in the latter category almost
countered increases in the other two sectors, with total FDI inflows only up
0.1 per cent on-year.
However, capital disbursement was down 4.2 per cent
on-year to $17.1 billion.
Among the 18 sectors receiving investment from foreign
investors in the first 11 months, processing and manufacturing took the lead
with $14 billion, accounting for 53 per cent of the total FDI. It was
followed by power production and distribution with over $5.7 billion, making
up 21.6 per cent, followed by real estate, wholesale, and retail.
Singapore led the 100 countries and territories
investing in Vietnam with a total investment capital of nearly $7.6 billion,
followed by South Korea ($4.36 billion), and Japan ($3.7 billion).
The Mekong Delta province of Long An attracted the
highest amount of FDI during the period with over $3.76 billion, including
$3.1 billion in a big energy projects. Ho Chi Minh City was second with $3.43
billion, followed by the northern port city of Haiphong with $2.8 billion.
The export turnover of foreign-invested enterprises
(FIEs) continued to increase in the first 11 months, however, on-year growth
for the period was lower than for the first 10 months with $220.2 billion
(including crude oil), up 19.7 per cent on-year, or $218.5 billion (excluding
crude oil), up 19.8 per cent.
FIEs' import turnover was estimated at $195.5 billion,
an increase of 29.5 per cent on-year. Generally, in the first 11 months, the
trade surplus of the FDI sector was about $24.6 billion (including crude
oil), or $23 billion (excluding crude oil), while the trade deficit of local
enterprises was $24.3 billion.
US businesses optimistic about
Vietnamese economic rebound
Approximately 80% of businesses from the United States
remain bullish on Vietnamese prospects in both the medium and long term,
according to a survey conducted by AmCham Vietnam.
Of the total, 29% of the respondents said they were planning to expand
operations, while 49% said they would stay and increase the size of their
investment. In addition, 18% said they would stay, although they may target
new investments elsewhere, and 3% will stay but will move to shift some of
their production elsewhere.
The survey was conducted between Nov. 15 and 17,
attracting the participation of more than 550 member companies and 2,000
personal representatives of AmCham Vietnam, including the Da Nang branch.
Of those surveyed, 25% of enterprises expect to get
back to normal by the end of the year, while 37%, 29%, and 6% expect to
resume normal operations in the first quarter of 2022, the second quarter of
2022, and the second half of 2022, respectively.
The Vietnamese market boasts favourable conditions to
both reopen and recover its economy due to the effective rollout of the
COVID-19 vaccine nationwide, said Mary Tarnowka, executive director of AmCham
Vietnam.
In contrast, international travel restrictions, supply
chain disruptions, domestic travel restrictions, and labour shortages
continue to be the key factors limiting operations of US businesses in
Vietnam.
Survey respondents said they were facing labour
shortages, as many workers left Ho Chi minh City and several other localities
that are home to industrial park complexes for hometowns following the easing
of travel restrictions. Many workers were struggling with managing work
virtually and their children’s online learning due to school closures
To solve the problems, four fifths of US businesses
suggested that local authorities speed up COVID-19 vaccinations to
ensure workers are fully vaccinated. In addition, 61% of respondents
suggested streamlining procedures for the travel of foreign experts,
reopening schools and offering transportation for workers back from their
hometowns.
Furthermore, roughly 80% of US businesses expressed
their concern about inconsistencies in anti-pandemic policies among
localities which they said need to be addressed soon.
The majority of American businesses thought consistent
policies throughout the country and herd immunity could be key to economic
recovery in Vietnam.
Car imports surge
According to Vietnam Customs, the number of imported
cars in Vietnam rose 61 percent to nearly 130,000 units in the first 10
months this year. Passenger vehicles saw a rise of 50 percent to more than
90,000 units.
Industry insiders said the rise came as customs activities resumed after
months of social distancing.
Companies were also importing more vehicles to prepare
for the end-of-year shopping season.
Vietnam also imported more than 4 billion USD worth of
car parts and equipment in the first 10 months, up 33.5 percent year-on-year.
Sales of imported, completely-built units rose 24
percent year-on-year to more than 97,000 in the first 10 months, according to
Vietnam Automobile Manufacturers Association./.
DEEP C, Bamboo Capital, Sojitz
cooperate to develop IP in Vietnam
Hong Duc Industry JSC, part of DEEP C Industrial Zones,
Bamboo Capital Group and Sojitz Corporation on November 25 signed a
Memorandum of Understanding (MoU) to develop an industrial park project and
ancillary infrastructure services with expected total investment capital of
approximately 250 million USD.
The signing was under the framework of the Investment
Promotion Conference held in Japan, under the witness of Prime Minister Pham
Minh Chinh.
Under the agreement, DEEP C Industrial Zones together
with Bamboo Capital Group and the Sojitz Corporation will cooperate to
develop an industrial park project and rooftop solar power as well as
ancillary infrastructure services in the northern region of Vietnam.
DEEP C is a cluster of industrial parks and seaports
developed and operated by the investment holding Infra Asia Investment Hong
Kong (IAI, majorly owned by Belgian company Ackermans van Haaren), in Hai Phong
city and Quang Ninh province - the most dynamic development area of north
Vietnam.
Over 24 years of establishment and development, DEEP C
has established its position as one of the most prestigious industrial zone
developers in Vietnam. Up until now, DEEP C has attracted over 140 secondary
investors in various manufacturing and logistics services, with total
registered capital of 4 billion USD. DEEP C is now operating five industrial
zone projects with a total area of 3,400 hectares, supported by a synchronised
infrastructure network and reliable utilities and services. The potential to
develop a rooftop solar network in factories and workshops in DEEP C
Industrial Zones is very promising and part of the sustainability vision
developed by the company.
Bamboo Capital (BCG) is a Vietnamese multi-industry
corporation, with a strong focus on the field of renewable energy. BCG
Energy, a subsidiary of BCG, is one of the pioneers in the development of
renewable energy in Vietnam. Today, BCG Energy owns over 500 MW in solar
energy capacity and aims to reach 1.5 GW generation capacity in 2023.
The third partner joining DEEP C and BCG is Sojitz
Corporation (Japan). Sojitz is one of the largest multi-industry corporations
in Japan and appears on the Forbes Global 2000 list. With nearly 440
subsidiaries and branches across Japan and 50 countries and regions globally,
Sojitz focuses on the field of automobiles, manufacture of machinery and
equipment; metal, energy; chemicals and industrial infrastructure, as well as
the fields of agriculture - forestry - fishery and consumer goods. Sojitz
Corporation is one of the Japanese pioneers investing in the Vietnamese
market since 1986, as well as the first foreign independent power producer
with the Phu My 3 Power Plant project in Ba Ria – Vung Tau. In addition,
Sojitz has a number of investment projects in industrial park infrastructure,
afforestation and timber production and trading in Vietnam.
The three-party agreement between DEEP C, BCG and
Sojitz will create synergy from each party’s strengths, aiming to develop
together with the Industrial Park project and ancillary infrastructure
services, including rooftop solar systems, as well as to conduct research
into other types of green energy and storage, so as to ensure the supply of
clean and stable electricity for the Industrial Zones operated by DEEP C.
All three parties, DEEP C, BCG and Sojitz, have set a
target to develop the first industrial zone in Vietnam that is fully energy
independent, enhancing the generation and consumption of renewable energy.
This collaboration will not only bring economic benefits to DEEP C, BCG and
Sojitz but also contribute to reducing emissions, moving towards carbon
neutrality and sustainable development of Vietnam in the future./.
There remains room for stronger
Vietnam-Switzerland economic, trade ties: Officials
Economic and trade ties between Vietnam and Switzerland
have developed strongly and effectively across spheres, and would grow
further in the time ahead.
The view was shared by Vietnamese Minister of Industry
and Trade Nguyen Hong Dien and Swiss State Secretary for Economic Affairs
Marie-Gabrielle Ineichen-Fleisch during their working session on November 26,
as part of President Nguyen Xuan Phuc’s ongoing official visit to
Switzerland.
Dien expressed his belief that economic and trade
cooperation will be the centre and main momentum of the relations between the
two countries, and suggested Switzerland work together with Vietnam to
successfully build up new cooperative foundations in the time ahead.
Both officials lauded efforts of the two countries’
negotiators during the talks on a free trade agreement between Vietnam and
the European Free Trade Association (EFTA). They held that after 16 rounds of
official negotiations and various online meetings since 2012, it is time to
conclude the talks.
Dien proposed Switzerland, with its great role and
prestige in the EFTA, urge other members to take a more practical approach,
especially in the fields where differences still remain like trade in goods,
public procurement, and intellectual property, to wrap up the talks at an
early date.
The two sides consented to work harder to speed up the
negotiations, considering this a priority task to create a firm legal
foundation for Vietnamese and Swiss enterprises to run long-term business.
They highlighted support to small-and
medium-enterprises in export, the development of fundamental industries and
technology transfer to Vietnam.
On this occasion, Dien invited the Swiss State
Secretary for Economic Affairs to lead a delegation of Swiss enterprises to
visit Vietnam as soon as possible.
The same day, Dien attended the Vietnam - Switzerland
Business Forum co-chaired by Vietnamese President Nguyen Xuan Phuc and his
Swiss counterpart Guy Parmelin.
At the forum, Dien reiterated Vietnam’s commitment to
net zero emissions by 2050, as presented at the at the 26th United Nations
Climate Change Conference of the Parties (COP26), held in Glasgow, the UK.
Vietnam will implement a programme on energy transformation
from now, he affirmed.
With its commitment and the pledge of the international
community to help the country achieve the target, Vietnam needs cooperation
in technology, governance and financial resources from partner countries and
investors, he said.
Vietnam welcomes investors from Switzerland, Europe and
developed countries in general to come to the country to boost cooperation in
these priority spheres, the minister stressed./.
Vietnam boats advantages in foreign
investment attraction
Vietnam is assessed to have plenty of room to compete
for foreign direct investment (FDI) against major competitors in the current
global production shift, said Nguyen Bich Lam, former Director General of the
General Statistics Office.
In an inclusive interview with the Vietnam News Agency,
Lam cited the 2021 investment report of the United Nations Conference on
Trade and Development (UNCTAD) which said in 2020, Vietnam attracted 16
billion USD of FDI, entering the top 20 countries in the world in terms of
FDI attraction for the first time.
Despite COVID-19, in the first ten months, 23.74
billion USD worth of FDI were poured into 18 sectors in Vietnam, with
processing and manufacturing obtaining the lion’s share of the sum, at 53.7
percent or 12.74 billion USD. This meant that foreign investors are placing
great trust in Vietnam as part of the global supply chain.
Also in the period, 7.09 billion USD were added to
existing FDI projects in the nation, up 24.2 percent year-on-year, while
foreign capital contribution and share purchase reached 3.63 billion USD.
In the ten months, Vietnam reeled in 267.93 billion USD
worth of export turnover, up 28.2 percent annually. Of the sum, the FDI
sector contributed more than 196.7 billion USD, an annual increase of 20.3
percent. The foreign-invested sector’s import value, meanwhile, reached
nearly 176.9 billion USD, up 31.3 percent over the same period last year and
accounting for 65.7 percent of the country’s total.
Regarding Vietnam's advantages in attracting foreign
investment, Lam said the macro environment and politics are stable, the
economy is dynamic, and the consumption market is expanding with abundant
supply sources. He also listed consistent policies for foreign investment
attraction and improving business climate.
In addition, Vietnam is a member of many large-scale
multilateral and bilateral trade agreements such as the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP); Vietnam – EU
Free Trade Agreement (EVFTA); and Vietnam’s several bilateral trade
agreements with the US, the Republic of Korea, Japan, and the UK.
Lam noted that in order to effectively attract and
maintain foreign investment in Vietnam, the Government and relevant
ministries, sectors, and localities need to implement a number of solutions.
Specifically, in the coming time, the Government should to review and
promptly adjust foreign investment policies to keep up with fluctuations of
the global economy and changes in FDI attraction strategies of other
countries.
He also stressed the necessity to build and maintain
such competitive advantages as open investment conditions and transparent
legal system; to consolidate the stable macro foundation; and to have the
right strategy in handling the COVID-19 epidemic and speed up the vaccination
process./.
Reference exchange rate down 4 VND
The State Bank of Vietnam set the daily reference
exchange rate at 23,139 VND/USD on November 30, down 4 VND from the previous
day.
With the current trading band of +/-3 percent, the
ceiling rate applicable to commercial banks during the day is 23,823 VND/USD
and the floor rate 22,436 VND/USD.
The opening-hour rate at commercial banks saw
increases.
At 8:30am, Vietcombank listed the buying rate at 22,560
VND/USD and the selling rate at 22,790 VND/USD, both up 15 VND from November
29.
BIDV also raised both rates by 40 VND, listing the
buying rate at 22,595 VND/USD and the selling rate at 22,755 VND/USD./.
Digital transformation helps Viettel
Store achieve 40 percent growth
Revenue of the Viettel Store system under Viettel Group
posted a 40 percent year-on-year increase, more than triple the average level
of the telecom market and marking record growth after 15 years of operation.
The results were thanks to its digital transformation
and customer-centric strategy. It is expected that its revenue this year
would reach 7.4 trillion VND (326.4 million USD), increasing 56 percent from
the previous year.
Its data system at over 700 agents and 7,000
transaction branches nationwide was synchronised to improve customer care.
As one of the four pillars in its development strategy,
logistics and e-commerce invested by Viettel to take the lead in retail
trends in the new normal period, including omni-channel store model;
restructuring operations from physical stores; and enhancing the digital
experience at stores and supermarkets.
Viettel Store system has been one of the retail chains
with the highest sales in the high-end segment in the market. It has been
ranked in the Top 10 most prestigious retail brands in Vietnam voted by
Vietnam Report and Vietnamnet online newspaper./.
Foreign capital flow in Vietnam tops
26 billion USD
Foreign direct investment registered in Vietnam reached
26.46 billion USD as of November 20, up 0.1 percent year on year.
Among 100 countries and territories having investment
in Vietnam in the period, Singapore took lead with 7.6 billion USD, making up
more than 28 percent of the total.
The Republic of Korea came second and Japan was the
third largest investor.
Localities that attracted the most FDI were Long An, Ho
Chi Minh City and Hai Phong city./.
Vietnam, Australia promote trade
ties
The total import-export turnover between
Vietnam and Australia reached a record of 14 billion AUD (10 billion USD) in
the first 10 months of this year, an increase of 50 percent over the same
period last year.
The figure was revealed by Nguyen Dang Thang,
Vietnamese Consul General in New South Wales, South Australia and
Queensland while addressing a business forum held by South Australia-Vietnam
Business Council on November 29. It aimed at introducing opportunities and
potential for trade with Vietnam to the Australian business community as well
as promoting bilateral investment.
Thang attributed the above-mentioned result to the
great efforts of businesses of both sides, adding that the bilateral trade
turnover between Vietnam and Australia continue to grow even in the difficult
time of the COVID-19 pandemic.
He called on Vietnamese and Australian enterprises to
make full use of the potential and available opportunities to raise bilateral
trade turnover to a new height in the context that the pandemic has been
better controlled.
He said that the two-way investment turnover between
the two countries has increased significantly, worth about 2.5 billion USD.
However, according to Thang, this number is still
modest compared to the potential of the two countries. He believed that
investment between Australia and Vietnam will mark a new milestone, doubling
two-way investment as set by the goal of the strategy to strengthen the
economic integration of two sides if opportunities were utilised.
The Consult General affirmed that he will support the
South Australia - Vietnam Business Council and Australian businesses wishing
to learn about the Vietnamese market.
Participants at the forum held that Vietnam is one of
the most potential markets for investment and trade. The cohesion between the
two countries, accompanied by advantages that new-generation multilateral
trade agreements, such as the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic
Partnership (RCEP), has increased the interest of Australian businesses in
the Vietnamese market.
John Ellis, Director of International Markets at
the South Australian Trade and Investment Authority, said Vietnam's
investment environment is open and the Vietnamese government always creates
favourable conditions for foreign investors.
The promotion of investment cooperation will bring
benefits not only to Australia but also to Vietnam, he said, noting that the
two countries need to further expand market for each other's goods.
Echoing his view, Ly Hoang Duy, director of 4 Ways
Fresh Company, an enterprise specialising in the field of trade and
agricultural production in Australia and an importer of fresh agricultural
products from Vietnam, expressed his wish to be able to import more fruits
from Vietnam to Australia. Duy suggested the two governments should speed up
discussion, further promote commitments and increase import licencing in
order to expand the market to each other./.
Volume of goods through seaports up
2 percent in 11 months
Vietnam’s seaports handled over 647 million tonnes of
goods in the first 11 months of this year, representing a year-on-year rise
of 2 percent, according to the Vietnam Maritime Administration (VMA).
Of the figure, the volume of exports was estimated to
hit over 168 million twenty-foot equivalent units (TEUs), rising 4
percent, and that of domestic goods 278 million TEUs, up 6 percent.
The total volume of container cargo going
through seaports rose 8 percent compared to the same period last year to more
than 22 million TEUs.
As COVID-19 was brought under control in
October and social distancing measures eased, business activities gradually
resumed, prompting a slight increase in the volume of export products.
According to the VMA, some seaport areas posting
positive growth in the volume of goods in the period included Quang Ngai with
an increase of 37 percent and Quy Nhon 16 percent.
The volume of container goods that went through
seaports in Vung Tau, Hai Phong and Dong Nai expanded 15 percent, 14 percent
and 6 percent./.
Vietnam's foreign trade up 22.3
percent in 11 months
Vietnam’s foreign trade surged 22.3 percent
year-on-year in the first 11 months of this year to exceed 599.1 billion USD,
according to the General Statistics Office (GSO).
The figure reached 59.7 billion USD in November, up 8.5
percent month-on-month and 19.7 percent year-on-year, the GSO announced on
November 29.
The country exported 29.9 billion USD worth of
commodities in November, up 3.6 percent month-on-month and 18.5 percent
year-on-year. It raised the 11-month export turnover to close to 299.7
billion USD, up 17.5 percent from a year earlier, with the foreign-invested
sector (including crude oil) contributing 73.6 percent of the total, or
220.68 billion USD, up 20 percent year-on-year.
Thirty-four commodity items earned export revenue of 1
billion USD upwards during the period, which together made up 93.5 percent of
the total. Industrial and processing products were the biggest currency
earners, with revenue accounting for 89 percent of the total exports, or
266.75 billion USD, up 18 percent.
The US remained the biggest buyer of Vietnamese
products, importing 84.8 billion USD worth of goods from the Southeast Asian
country in the period, a year-on-year increase of 22.2 percent. It was
followed by China (50.5 billion USD), the EU (35.7 billion USD), ASEAN (25.9
billion USD), the Republic of Korea (20 billion USD), and Japan (18 billion
USD).
In November, Vietnam spent 29.8 billion USD on imports,
up 14 percent month-on-month and 20.8 percent year-on-year. The 11-month
import revenue rose by 27.5 percent year-on-year to 299.45 billion USD, 93.6
percent of which were spent on purchasing inputs for production.
China was the largest supplier of products for Vietnam,
exporting to the Southeast Asian country 98.5 billion USD worth of goods, up
32 percent from the same period last year. It was followed by the Republic of
Korea (50.3 billion USD), ASEAN (37 billion USD), Japan (20.3 billion USD),
the EU (15.5 billion USD), and the US (14.2 billion USD).
The country posted a trade surplus of 225 million USD
from January to November, compared to 20.19 billion USD in the same period
last year./.
Positive outlook for local rice
exports by year-end
There are bright prospects ahead for Vietnamese rice
exports in the remaining months of the year due to higher export prices
coupled with a rising demand globally.
Vietnam exported over 5.183 million tonnes of rice
worth US$2.738 billion during the opening 10 months of the year, representing
an annual fall of 3.1% in volume but a rise of 3.7% in value, according to
figures given by the General Department of Vietnam Customs.
October alone saw the country ship 618,162 tonnes of
rice abroad worth US$322 million, an increase of 4.1% in volume and 9.8% year
on year.
With social distancing measures eased in southern
localities, recent times have seen rice exports enjoy positive signs of
growth.
Notably, Trung An High-Tech Agriculture Joint
Stock Company in the Mekong Delta city of Can Tho has won a bid to
export 15,000 tonnes to the Republic of Korea (RoK). The shipment is expected
to arrive at the RoK’s Port of Gwangyang between March and June, 2022. This
year sees the RoK implement a 50,000-tonne quota for rice imports from the
Vietnamese market.
As the largest local rice exporter, Loc Troi Group took
the lead in terms of exporting rice to the European Union during the opening
nine months of the year, accounting for approximately 70% of rice export
volume to the demanding market.
According to the Vietnam Food Association (VFA), there
will be high demand for rice imports from a number of major markets, such as
the Philippines, China, and the EU, ahead in the remaining months of the
year.
Along with the resumption of logistics and production
activities, the local rice sector is anticipated to achieve the export volume
target of between 6 - 6.2 million tonnes this year.
The enforcement of the EU-Vietnam Free Trade Agreement
(EVFTA), coupled with the EU’s rising demand for rice is predicted to create
a wealth of opportunities in order to boost exports to the fastidious market
this year.
However, experts have advised local enterprises to pay
special attention to meeting the EU’s stringent regulations in terms of
product quality, origin traceability, labelling, and packaging.
The issuance of stricter regulations regarding quality,
food safety, hygiene, traceability, and packaging by several markets,
including China, is anticipated to pose a number of challenges for local
businesses moving forward.
Exports witness robust growth amid
positive signs for FDI attraction
There were optimistic signs recorded in exports and
foreign direct investment (FDI) attraction in the opening 11 months of the
year, the General Statistics Office (GSO) said on November 29 announcing
Vietnam’s major socio-economic indicators for November and 11 months.
The GSO revealed that the country shipped US$299.67
billion worth of goods overseas in 11 months, representing a year-on-year
rise of 17.5%.
As many as 34 products recorded an export value of over
US$1 billion each, with seven items fetching over US$10 billion in turnover
each.
November alone witnessed export turnover reach US$29.9
billion, marking a rise of 3.6% from the previous month and 18.5% against the
same period from last year.
The United States remained Vietnam’s largest export
market throughout the reviewed period, followed by China, the European Union,
ASEAN, the Republic of Korea (RoK), and Japan.
Meanwhile, Vietnam imported goods worth US$299.45
billion during the 11-month period, up 27.5% year on year, with 43 imported
items grossing over US$1 billion in value each.
China retained its position as the country’s largest
import market spending US$98.5 billion, followed by the RoK, ASEAN, Japan,
the EU, and the US.
Vietnam also enjoyed a trade surplus of US$100 million
in November, thereby bringing the 11-month trade surplus to US$225 million.
Most notably, there were positive signs in terms of
foreign direct investment (FDI) inflows into Vietnam, demonstrating foreign
investors’ strong trust in the Vietnamese investment environment despite the
impact of the COVID-19 pandemic.
FDI inflows into the country during the 11-month period
surged by 0.1% to reach US$26.46 billion against the same period from last
year, while Vietnamese investment overseas totaled US$677.3 million, a
year-on-year rise of 38.1%.
Seeking solutions to improve
cooperatives economic efficiency
The key role of the collective in Việt
Nam's socialist-orientated market economy has been reinforced through
the success of cooperatives up and down the country, though their further
potential remains untapped.
The development of cooperatives was a key target of
localities. In order to promote the local economy and overcome the
ineffective operations of the current cooperatives, provinces focused on
training workforces, mobilising financial sources and fostering administrative
qualifications and management methods.
According to a report by the Việt Nam Cooperative
Alliance, by June 2021 there were over 26,000 cooperatives nationwide, of
which more than 17,000 were agricultural cooperatives, over 7,000 were
non-agricultural cooperatives and 1,100 were people's credit fund
cooperatives with over 6.8 million members, creating jobs for over 2.4
million employees.
It is clear that the cooperatives have been
participating in the One Commune, One Product (OCOP) programme, a national
programme for Hunger Eradication and Poverty Reduction and the Programme of
New Rural Development.
Many provinces have seen progress in the expansion of
cooperatives.
Currently, Bình Thuận Province has 201 cooperatives
engaging in all economic sectors and fields with total capital of over VNĐ3
trillion (US$132 million) and over 50,000 members.
In the agricultural production field, more than 30
cooperatives are participating in linkage chains to organise production
associated with the value chains, to create a larger volume of quality
agricultural products and higher economic value.
Many products of these cooperatives have been
recognised by the OCOP programme as provincial-level three and four-star
products.
In particular, 25 people's credit funds, which are
present in all communes and districts in the province, have played important
role in actively supporting cooperative members in production and business
activities, as well as contributing to the government to repel black credits.
However, Hồ Công Dương, chairman of the Bình Thuận
Province’s Co-operative Alliance, said that most cooperatives are small-scale
with little capital and outdated equipment, and have not yet built a
sustainable basis for operations.
Some cooperatives had not yet connected their
members with the market, Dương said.
This leads to a very loose bond between the members and
cooperatives, he said.
These are inherent limitations that the alliance had
noticed and was looking for solutions to remove the shortcomings, Dương
added.
Meanwhile, Nguyễn Thị Minh Ngọc, director of Supporting
Centre of Co-operative Alliance of Lâm Đồng Province, said that product
consumption was one of the most important service activities of the
co-operatives in order to help members overcome the situation of 'good
harvest, low prices', while alliances between cooperatives play an important
role in supporting product consumption.
“The coordination between the departments, agencies,
the alliance and the cooperatives is very important in bringing efficiency in
the promotion, advertisement and consumption of products,” Ngọc said.
“In addition, the cooperatives and their members needed
to realise the importance of linking members together and organising
production and consumption of the value chain as well as helping members
produce with co-operatives’ development drive,” she said.
According to Ngọc, the alliance should further promote
co-operatives’ products via fairs, seminars and exhibitions.
Võ Thị Ánh Hồng, chairwoman of the Co-operative
Alliance of Tây Ninh Province, said that the alliance needed to take
advantage of capital from the National Target Programme on Building a New
Countryside to coordinate with relevant agencies to build a new-style
cooperative that promoted production associating with value chains and high
technology application.
According to Thích Đức Thiện, National Assembly (NA) delegate
of Điện Biên Province, for Việt Nam's economy, in terms of size and the
relationship between the production groups, the development of cooperatives
is vital to solving the basic development issues of rural areas.
Developing the local economy and cooperatives is an
effective lever to assisting the central economy, including the state's key
economic groups, Thiện said.
This was even more evident during the recent COVID-19
pandemic, he said.
“When the cooperatives paid attention to developing,
they create a driving force for the country’s agriculture, including the
development of organic agriculture, OCOP programme and hi-tech agriculture,”
the NA delegate said.
The cooperative model is very suitable in rural areas
and will promote the efforts and creativity of farming households, who are
the owners of agricultural production activities.
These farming households will also receive effective
support from cooperatives and thereby receive maximum support from the State
via the National Target Programmes, Sustainable Poverty Reduction Programme,
National Programme of New Rural Development and Socio-economic Development
Programme in Ethnic Minority and Mountainous Areas, as well as being able to
promote links with businesses and fully meet the requirements of
international trade and economic integration.
However, there are also some shortcomings in developing
cooperatives.
Most cooperatives operate on a small scale with
little capital and poor management. This leads to weaknesses in setting up
production and business strategies, especially in the period of international
integration.
Therefore, fostering human and financial resources and
updating management methods need support and investment from the State.
Nguyễn Thành Nam, an NA delegate for Phú Thọ, said
that it is necessary to promote collective economic development with various
forms of cooperation, though success should be built around cooperatives
based on members' and collective ownership, and widely linking households to
promote production and business to adapt to the new situation.
In order for the cooperatives to properly develop their
role and promote the development of the household economy, the Government,
both ministries and branches, should continue to pay attention to this area,
including effectively implementing promulgated policies, especially those
related to improving human resources for co-operatives, application of
scientific and technology in production, investment, infrastructure
development in agricultural production, and sustainable product consumption,
Nam said.
CPI increases by just 1.84 per cent
in 11 months
CPI increased by just 1.84 per cent in 11 months of
2021 from the same period last year, making it the smallest increase since
2016, according to the General Statistics Office (GSO).
The main contributor to an increased CPI was rising
petrol prices. Since November 2020, petrol prices increased by 30.32 per
cent, which resulted in an increase of 1.09 per cent in CPI.
In addition, gas price has been on the rise. Since
November 2020, it has increased by 25.34 per cent and contributed to a 0.37
per cent increase in CPI.
Rice price has increased in anticipation of the
upcoming Tet holiday and higher demand due to stockpiling during the recent
lockdown. Construction materials including cement, steel and sand have also
been reported to have seen an uptick in price.
Educational services in November have increased by 2.44
per cent year-on-year. However, this has been expected as the new
government-mandated pricing started earlier this year. Gold price increased
by 2.65 per cent.
On the other hand, foodstuff prices decreased by 0.52
per cent in November, notably pork (-9.62 per cent) and chicken (-0.51 per
cent). Government support packages, which included discounts on electricity
bills for residents under lockdown, were implemented during the second
quarter of the year. Price for airline tickets decreased by 21.39 per cent
year-on-year and tour packages by 2.42 per cent.
According to the GSO, inflation in November has seen an
increase of 0.11 per cent from the previous month, bringing the year's
average so far to a 0.82 per cent increase year-on-year, the lowest inflation
recorded since 2011.
Nguyen Bich Lam, former head of the GSO, said price for
petrol, rice and foodstuff will likely rise from now until the Tet holiday.
As people tend to fix up their homes before Tet, construction materials will
also be in high demand and likely see an increase in price, driving CPI
slightly up. However, this year's CPI will likely top around 2 per cent, much
lower than the 4 per cent target.
Foreign capital flow in Viet Nam
hits US$26.46 billion in 11 months
Foreign direct investment (FDI) registered in Viet Nam
reached US$26.46 billion as of November 20, up 0.1 per cent year on year,
according to the Ministry of Planning and Investment.
Notably, the total additional registered capital stood
at over $8 billion, an annual rise of 26.7 per cent.
During the period, $14.1 billion was poured into 1,577
newly-licensed projects, up 3.76 per cent in value but down 31.8 per cent in
volume over the same period last year.
The remaining investment was used for capital
contribution and share purchases in a total 3,466 transactions.
Foreign investors landed investments in 18 sectors,
with processing and manufacturing absorbing the largest amount of capital
(over $14 billion or 53 per cent), followed by power generation and
distribution (over $5.7 billion), real estate ($2.41 billion), and wholesale
and retail ($1.27 billion).
Among 100 countries and territories investing in Viet
Nam in the period, Singapore took the lead with $7.6 billion, making up 28.7
per cent of the total. The Republic of Korea (RoK) came second with more than
$4.36 billion, and Japan was the third largest investor with $3.7 billion.
Localities that attracted the most FDI were Long An
($3.76 billion), HCM City (nearly $3.43 billion), and Hai Phong City (over
$2.8 billion).
Export turnover of the FDI sector (including crude oil)
was estimated at nearly $220.2 billion, up 19.7 per cent over the same period
and accounting for 73.6 per cent of Viet Nam’s total. The sector’s import
value (excluding crude oil), meanwhile, exceeded $195.5 billion, an annual increase
of 29.5 per cent and accounting for 65.5 per cent of the country’s
total.
First wind power plant in Ben Tre
put into operation
The V1-3 Ben Tre wind power plant, the first of its
kind in the Mekong Delta province of Ben Tre, was put into operation on
Sunday.
Construction of the 7-turbine wind power plant began in
April 2020 with total investment of VND1.5 trillion (over US$66.1 million).
It has a capacity of 30MW.
The plant is expected to generate an average output of
90 million kWh per year, and annually contribute VND20 billion (over
$882,000) to the State budget in the first 14 years of its operation.
Speaking at the inauguration ceremony, Chairman of the
provincial People’s Committee Tran Ngoc Tam said the operation of the plant
contributes to concretising the province’s goal of maritime economic
development, including the development of clean energy, thus helping promote
its socio-economic development.
He praised the investor, local authorities and sectors
for their efforts and support for the project, while asking the provincial
Department of Industry and Trade to coordinate with relevant agencies to
remove difficulties and obstacles to speed up construction of other wind
power plants in Ben Tre.
According to the provincial Department of Industry and
Trade, in the 2015-20 period, Ben Tre Province was approved by the Ministry
of Industry and Trade to develop wind power projects with a total capacity of
more than 1,000 MW.
Currently, 19 wind power projects are being implemented
in the province. In 2022 and the following years, 17 other projects will be
developed with a total capacity of more than 914 MW.
In addition, Ben Tre has proposed to add 26 projects
with a total capacity of 6,400 MW. By 2025, power projects in the province
are expected to generate an average power output of over 4.5 billion kWh with
a total revenue of more than VND10 trillion per year.
Credit room expected to be extended
at year-end
As companies and manufacturers accelerate production
after social distancing orders were lifted in most cities and provinces,
especially in the south, demand for capital is on the rise, boosting banks’
credit growth in the last months of 2021.
The value of seafood exports bounced back in October
after declining sharply for two months, said the Viet Nam Association of
Seafood Exporters and Producers (VASEP). Accordingly, the value of seafood
exports reached US$918 million in October, up 47 per cent compared to
September. By the end of October, the country's seafood exports climbed 2.4
per cent year-on-year to $7.1 billion.
The positive result was mainly thanks to rising orders
from key importing markets including the US and European Union (EU). Orders
keep coming while production cannot keep up with export demand.
Other sectors like leather and footwear, and wood
products also witnessed quick recovery after a long break due to the fourth
outbreak of COVID-19.
With the normally busier than usual period at year-end
with festivals and holidays, enterprises are speeding up production and
expansion to meet strong demand, resulting in higher need for capital.
Phan Dinh Tue, Deputy General Director of Sacombank,
said that after being affected by the pandemic in the third quarters, the
bank's credit business has recovered since October.
Many businesses need to borrow capital to serve the
recovery of production and business activities, while the bank also provides
loan packages with preferential interest rates to accompany customers.
Therefore many customers are more interested in credit capital.
Although banks have not lowered lending standards, they
focus on supporting businesses under Circular 14/2021/TT-NHNN issued on
September 7, amending and supplementing a number of articles of Circular No.
01/2020/TT-NHNN issued on March 13, 2020 on directing credit institutions and
foreign bank branches to reschedule debt payments, waive or reduce borrowing
interest and fees, and maintain debt groups to support customers affected by
the COVID-19 pandemic, Tue added.
Each bank also has its own incentive mechanism for customers.
“As long as customers meet the credit conditions, the
bank will disburse normally, even if customers who have debt restructured
according to Circular 14/2021/TT-NHNN need new capital to serve business, the
bank will still approve them," Tue said.
Nguyen Hoang Minh, Deputy Director of the State Bank of
Vietnam (SBV) branch in HCM City, said that after the social distancing
measures were loosened, the city recorded many new credit applications.
A recent report by SSI Securities Corporation (SSI)
estimated that in October, an additional VND77.7 trillion (US$3.4 billion) of
credit was injected into the economy, nearly double that of September. Of
which, the trade and service sectors accounted for the highest proportion
with about VND34.9 trillion of newly granted loans, followed by industry and
construction with VND15.6 trillion.
As of October 29, credit growth was 8.72 per cent
compared to the end of last year. "Credit growth is more positive than
expected, showing the recovery of the economy after social distancing,"
said SSI.
However, based on its calculations, SSI said that by
the end of the third quarter, most banks have reached their 2021 credit
limit. Therefore, the securities firm expected that SBV will soon extend the
credit limit for banks with good asset quality and safety indicators.
Can Van Luc, Director of BIDV Training School, said
that as the country is trying to boost economic recovery, the state bank
should consider increasing the credit limit for a number of banks, regardless
of size.
“Of course SBV has to make sure it doesn't rise too
much. I think somewhere around 12 – 13 per cent, even 14 per cent is
perfectly appropriate,” Luc added.
In its recently released report, KB Securities Vietnam
JSC (KBSV) said that the third quarter financial statements showed that the
asset quality of commercial banks, although it takes a few more quarters to
accurately assess, was not affected strongly by social distancing orders.
“This is the basis for SBV to soon grant more credit
room to banks,” KBSV said in the report.
At a meeting with investors held in early November,
Nguyen Hoang Linh, General Director of Vietnam Maritime Commercial Joint
Stock Bank (MSB), said that the bank expects to reach a credit limit of 25
per cent for the whole year, after credit grew nearly 16 per cent for the
first nine months, higher than 10.6 per cent at the end of June.
MSB is a bank with good risk management, focusing on
disbursement to sustainable development industries, actively participating in
activities and policies of the State Bank. Therefore the bank is expected to
get credit room extensions, based on the balance and allocation of the
management agency, at the end of the year, Linh said.
Many other banks are also waiting for the credit room
to be extended to meet businesses' capital needs at the end of the year.
On the interest rate front, experts said that although
the interest rate level continued to remain low in the last two months of the
year, it is difficult to see further declines, especially when other investment
channels such as stocks and gold are attracting cash flow in the
market.
Experts suggest solutions to remove
difficulties to real estate business
Experts in construction have been discussing solutions
to the difficulties currently facing the industry in terms of housing
development and the wider real estate market. The talks took place as part of
a seminar that was held in Ha Noi last week.
Deputy Minister of Construction Nguyen Van Sinh said
the seminar aimed to cement Government policies and contribute to the
completion of tasks assigned by the Government. Industry insiders learned
about the opportunities and challenges facing the real estate market and were
given the opportunity to outline recommendations for the stable development
of the real estate market.
Sinh said his ministry has researched and submitted
plans to the Prime Minister for the issuance of a National Strategy on
Housing Development through 2030, as well as amendments to the Law on Housing
and Law on Real Estate Trading.
He told participants that the ministry has introduced
many policies to ease difficulties facing Viet Nam’s real estate market. They
have encouraged and promoted the construction of social housing projects for
workers and low-income earners while boosting the renovation and
reconstruction of old buildings.
The Ministry of Construction recently proposed credit
packages of social housing projects for workers.
In addition, the ministry will also closely monitor the
issuance of real estate corporate bonds to control and revise its policies to
create a healthy and stable real estate market. The ministry will also
observe the source of finances poured into the real estate market to avoid
the risk of loans earmarked for production being used in real estate
development.
The Deputy Minister noted that cities and provinces
needed to approve and promote the implementation of the housing development
programme for 2021-2025 and the annual plans for housing development, in line
with the Law on Housing.
Sinh also mentioned that localities must urgently
review and shorten the time for consideration, approval and granting of
housing and real estate development projects, providing they meet the
requirements of the Construction Law. They are also asked to enhance the
development and supply of social housing for low-income earners in urban
areas and industrial parks, and commercial housing for middle-income earners
as well.
Cities and provinces are required to take bold measures
to manage and prevent the illegal allocation of land lots and strengthen
control of real estate agencies and brokers who have caused disturbances in
the real estate market, Sinh emphasised.
Also at the seminar was Nguyen Van Khoi, standing Vice
Chairman of the Viet Nam National Real Estate Association (VNREA). Khoi said
that Viet Nam’s real estate market has shown shortcomings and difficulties
and they have been taking place for a long time. Real estate firms need to
team up with industry insiders and the relevant ministries to help remove
these obstacles to the development of the real estate market.
During the fight against the COVID-19 pandemic, the
Government issued Resolution No.105/NQ-CP on supporting enterprises,
cooperatives and business households, and Resolution 128/NQ-CP 2021 on
Interim Regulation on safe and flexible adaptation to the COVID-19 pandemic.
The Ministry of Construction has outlined a specific action plan to support
businesses in the construction and real estate sectors, to keep the real
estate market stable.
Khoi also said that the most important task was
synchronising the amendments to the Law on Housing and Law on Real Estate
Trading because real estate firms need a clear legal framework for housing
development.
Nguyen Quoc Hiep, Chairman of GP Invest, said the real
estate and construction sectors are closely linked together. Construction
firms are interested in how to lift difficulties for real estate development.
He said much attention should be to Decree No.30/2021/ND-CP dated March 26,
2021, and Decree No. 99/2015/ND-CP dated October 20, 2015.
Sharing Hiep’s view, Deputy General Secretary of VNREA,
Nguyen Van Dinh, said that the Government should continue to review the laws
to avoid conflicts and barriers to the development of construction projects.
Dinh said to stabilise the real estate transaction
market, it was a need to publish information about approved projects, land
use plans and real estate projects to be allowed trading.
Dinh emphasised that it is time to make credit risk
assessments for real estate development due to the recent land fevers.
VN-Index extends losses on bank
stocks
The stock market ended mixed on Monday as some
profit-taking activities on bank stocks weighed on sentiment.
The VN-Index on the Ho Chi Minh Stock Exchange (HoSE)
edged 8.19 points, or 0.55 per cent, down to 1,484.84 points. The benchmark
lost 0.52 per cent in the last trading session after breaching the historical
peak of 1,500 points last Thursday.
The fall occurred after the new variant of coronavirus
was found in South Africa, raising concerns over the slowdown of the global
economy and disruptions in supply chains.
The market's breadth was negative as 187 stocks
increased, while 293 stocks declined. The liquidity remained high but still
fell slightly compared to the last session. Of which, the total trading value
on HoSE dropped 8.4 per cent to VND30.03 trillion (US$1.3 billion).
The index was weighed by losses in most large-cap
stocks, especially in banking, manufacturing and energy sectors.
The 30 biggest stocks tracker VN30-Index posted a loss
of 13.51 points, or 0.86 per cent, to 1,553.04 points. Data compiled by
vietstock.vn showed that only four stocks in the VN30 basket climbed
yesterday, while 26 stocks slid.
Bank stocks led the market's downtrend with Vietcombank
(VCB) posting the biggest losses of 3.71 per cent, followed by Techcombank
(TCB), down 3.15 per cent.
The market's benchmark was also weighed by other
stocks, including Masan Group (MSN), PetroVietnam Gas (PV Gas, GAS) and BIDV
(BID). These stocks dropped in a range of 2.09 - 3.17 per cent.
The positive point of the market yesterday was the
gains in the real estate sector. Two of the stocks in the trio Vin family,
including Vingroup (VIC) and Vinhomes (VHM), recorded the biggest gains, with
VIC hitting the maximum daily gain of 7 per cent.
However, on the Ha Noi Stock Exchange (HNX), the
HNX-Index rose 1.95 points, or 0.43 per cent, to 460.58 points.
During the trading session, nearly 163.6 million shares
were traded on the northern bourse, worth over VND4.8 trillion.
Meanwhile, foreign investors continued to be net
sellers on both main exchanges, with a total value of VND562.03 billion. Of
which, they net sold a value of VND352.41 billion on HoSE, and a value of
VND209.62 billion on HNX.
National Assembly approves new
mechanisms for breakthrough in Haiphong
The resolution allowing Haiphong to pilot a number of
policies for development was passed by the National Assembly with high
approval rate.
At its recent second session, the 15th National Assembly approved a
resolution on piloting some mechanisms and policies for the development of
Haiphong and three other localities to promote sustainable development and
create a model for other localities to follow.
Deputy head of the National Assembly’s Delegation of
Haiphong City La Thanh Tan said that the resolution has received a high
approval rate.
Haiphong’s geographical advantage as the main gateway
to the northern sea, plays an important role in the economic growth of
Vietnam.
Haiphong has witnessed high growth pace and achieved
financial self-sufficiency, with ample space for further development. The
city remained stable despite COVID-19, reporting one of the highest annual
economic growth rates in the country. The resolution promises to boost
development with spillover effects for the entire region.
The development directs pushing up the pace of
modernisation and industrialisation in Haiphong, along with living standard
improvementto be on par with leading Asian cities.
Leveraging incentive merchanisms in finance, salary
policy, land planning and management, Haiphong is expected to accelerate
socio-economic development in the forthcoming years.
Regarding financial and budgetary policies, Haiphong
would mobilise capital through local government bond issuances, loans from
domestic financial and non-financial organisations, and foreign loans taken
up by the government to relend to the city. The total balance will be a
maximum 60 per cent of the city's budgetary revenue. The city’s total annual
loan and budget deficit shall be decided by the National Assembly in
accordance with the Law on State Budget.
Annually, target-based budget supplementto the city
from the central budget would not exceed 70 per cent of the central budget
revenue increase. This allocation will be made unless the central budget
suffers a deficit. This budgetary supplement will be determined on the basis
of total gross revenue.
The Haiphong People's Council is also allowed to decide
on the collection of fees and charges excluded from the List attached to the
Law on Fees and Charges as well as adjust the rate of collection of the fees
and charges included in the above list. This particular policy does not apply
to court fees and charges.
The city budget will be able to keep all the increased
revenue from adjusting fees and charges for socioeconomic infrastructure
investment. This increase is not used to determine the distribution rate of
central and local budget revenues.
The resolution clearly states that the pilot policy on
fees and charges should follow a roadmap, creating a favourable business and
production environment for enterprises, especially small- and medium-sized
ones. Implementation will have to be consistent with market mechanisms and
not disrupt goods circulation while ensuring transparency and promoting state
administrative reforms.
Civil servants’ income will also be subject to a
special mechanism. If Haiphong can ensure a stable budget for salary reform
and social security policies for the whole period, the People's Council is
allowed to use the residual salary reform budget to increase the average
income for cadres, civil servants, and public employees according to their
work performance. The extra income must not exceed 0.8 times the salary level
by title and position. The income level of experts, scientists, and special
professionals talents shall be regulated by the People's Council.
Regarding land management, the City People's Council is
allowed to decide on changing the land use purpose of rice crop areas under
500 hectares, in accordance with the master planning and land use plans
approved by competent authorities. These activities must be public, voted by
the residents in question, and comply with relevant regulations. The change
order and procedures shall be prescribed by the prime minister.
At the same time, based on the city's construction
planning of functional and urban areas, the PM shall allow the city People's
Committee to approve the adjustment of local general planning of functional
and urban areas, ensuring the order and procedures regulated by the PM and
report the results. This mechanism shall take effect from January 1, 2022 and
would be implemented for five years.
At the meeting with voters in Hai An district this
mid-November, National Assembly Chairman Vuong Dinh Hue said that the newly
approved specific mechanisms and policies promise to boost Haiphong's
development, becoming a driving force not only of the region but also for the
whole country.
According to the NA Chairman, the Politburo has enacted
two thematic resolutions related to Haiphong which reflect a big change in
its status and development goals, not only serving as a growth pole but also
acting as a motivating force to spur the development of whole region and the
whole country.
The development directs pushing up the pace of
modernisation and industrialisation in Haiphong, along with living standard
improvementto be on par with leading Asian cities. Simultaneously, turning
Haiphong into a leading city regionally and internationally.
Setting the course for emissions
cuts
While the necessary course for a greener and more
sustainable future in global energy policies seems set, Vietnam’s energy
transition faces budgetary and capacity challenges, both of which need to be
overcome with suitable solutions.
Vietnam’s endeavour to reduce greenhouse gas (GHG) emissions by 30 per cent
by 2030 may be one of the biggest challenges for current Minister of Industry
and Trade, Nguyen Hong Dien.
Tran Tuan Anh, his predecessor, once supported the extension
of the feed-in tariff (FiT) mechanism for wind power projects. Meanwhile,
Minister Dien wants to only apply the FiT mechanism for a certain period, to
encourage only those projects that need investment.
The minister’s authority allows him to take several
measures to reduce energy imports, strengthen the asynchronous energy
infrastructure, and propose a mechanism for the development of new and
renewable energy sources. Dien promised to do all this when he took his
position.
However, “The Ministry of Industry and Trade (MoIT)
will not propose an extension for the FiT scheme for wind power projects
after October 31,” Dien said at a discussion of the National Assembly (NA) on
November 9. According to Dien, an extension would be “unreasonable” and that
such a mechanism would hurt other projects’ implementation.
Input prices of materials and equipment within the wind
power field have decreased as the support policy was promulgated and
continued a strong downward trend. The extension of this policy, said the
minister, would cause “legal consequences and economic damage” to the state
and electricity users.
Instead, Dien’s biggest wish seems to soon complete the
regulations on the development of wind and solar power projects under the Law
on Investment, with a bidding and auction mechanism to select investors and
determine electricity prices.
Investors would negotiate prices with Electricity of
Vietnam (EVN) within a set price bracket issued by the MoIT. This, however,
will need support from the government and the NA. Yet so far, “The MoIT has
not received an agreement from relevant ministries and agencies,” Dien said.
The rapid reduction of emissions necessary to cope with
climate change will have a huge impact on Vietnam’s energy industry, and is
possibly closely linked to short-term policies to develop new and renewable
energy sources, according to analysts.
In the past, the approach was to rely on
hydroelectricity to cut coal power plants’ generating capacity. But now,
cutting capacity from traditional sources and giving priority to solar and
wind power may help the MoIT to achieve the environmental goals, albeit
putting pressure on the system.
Firstly, the MoIT will have to remedy signs of
imbalance in regulating power sources. Data from EVN shows that by the end of
April, the total solar power capacity reached 17,000MW, exceeding the planned
capacity of the plan by 2030 by 5,000MW and accounting for nearly 25 per cent
of the system’s installed capacity.
Meanwhile, the market may continue to record a boom in
wind power projects in the last months of the year, when about 5,400MW are
added to the system.
However, this could bring the electricity price in
danger of being disrupted when the cost of mobilised renewable energy is
higher than the price of traditional power sources. For example, solar power
has a selling price of 9.35 US cents per kWh, rooftop solar power costs 8.38
US cents per kWh, and onshore wind power is about 8.5 US cents per kWh.
Meanwhile, the average prices of gas-powered thermal
plants like Nhon Trach, Ca Mau, and Phu My lies around 5.1-6.2 US cents per
kWh. The maximisation of high-priced renewable energy sources and the
reduction of gas-fired thermal power mobilisation has pushed up electricity
prices, while the average commercial electricity price has remained unchanged
since March 2019, standing at about 8.1 US cents per kWh. Also, the deep
decline in the mobilisation of gas power sources is dragging the budget
revenues from traditional energy sources to a lower level. For instance, the
Ca Mau 1 and 2 thermal power plants only mobilised 3.5 billion kWh in the
first eight months of this year.
With the current situation, it is expected that the
total mobilised output in 2021 will be at 4.53 billion kWh for 2021, equal to
about 65 per cent of the calculated capacity. Expected payments to the local
state budget would then be equivalent to a mere 32 per cent of the annual
average.
According to calculations by Vietnam Oil and Gas Group,
if gas output does not increase, the total gas output in 2021 is expected to
be about 7.9 billion cubic metres. However, the gas exploitation plan
assigned by the government expected 9.7 billion cu.m, with expected losses
amounting to around $365 million. In 2022, a continued sharp decrease in gas
production to around 6.52 billion cu.m could affect the state’s revenues by
another $675 million.
Another important point is that the uncertainty of
renewable energy will cause great challenges in frequency and voltage
regulation, as well as in ensuring stability for the power system.
Nguyen Duc Ninh, director of the National Load Dispatch
Centre, said that with the rapid and large increase in renewable energy,
traditional power sources must be flexible and regularly adjust the output.
According to Ninh, mechanisms to curtail renewable
energy sources has been applied by many countries around the world when their
ratios reached a certain level. “Considering such mechanisms is very
important for the stable operation of Vietnam’s power system when renewable
energy continues to increase,” Ninh said.
Vietnam has become the leading country in ASEAN in
terms of installed solar and wind power capacity. According to the
International Renewable Energy Agency, by the end of 2020, Vietnam’s total
solar capacity reached about 16,500MW, far exceeding the target of 850MW in
that year and even close to the target of 18,600MW set for 2030.
According to Dr. Bui Huy Phung from the Vietnam
Institute of Energy Sciences, “Minister Dien will need about two years to
develop a suitable bidding mechanism. During this transition, we must be very
careful to retain investors,” said Phung.
Phung, who has 40 years of research experience in
energy, believed that Vietnam’s transition to renewable energy will not be
smooth. “People have to be aware of the risks and drastic fluctuations
associated with it. Nevertheless, the direction remains unchanged, and the
world will use more renewable energy,” Phung said.
All-in-one energy storage solution
for renewable energy development in Vietnam
Recently, the workshop on the application of the energy
storage systems and efficiency technology of the renewable energy (RE)
projects in Vietnam" was grandly held by the Scientific Council of the
Vietnam Energy at the Hanoi International Convention Center.
Hopewind and its Vietnamese partner RedFOX Investment
Joint Stock Company were invited to participate in this workshop.
The workshop invited leading enterprises, experts and
scholars from Vietnam’s State central management agencies, the Ministry of Industry
and Trade (MOIT), the Electricity of Vietnam (EVN), National Load Dispatching
Center, Vietnam Energy Industry, to focus on Vietnam’s renewable energy
market policies, investment risks, project problems, and solutions, and
analyze the application of energy storage systems and technologies in
renewable energy to improve the utilization efficiency of renewable energy
projects in Vietnam.
Vietnam is one of the ASEAN countries with the most
abundant reserves of clean energy, such as wind and solar energy. In
addition, the government has continuously issued a number of encouragement
and incentive policies in recent years, making Vietnam the most potential
wind power and photovoltaic new energy development market in Southeast Asia.
However, the large-scale and high proportion of new
energy grid connection will inevitably bring great challenges to system
planning, consumption, and safe and stable operation for a long time. As a
key technology for energy structure transformation, energy storage technology
can effectively solve the instability and intermittent problems of renewable
energy power generation, smooth the output of new energy, and improve the
stability of the power system. Therefore, reasonable application and
technical investment of energy storage systems can improve the utilization
efficiency of renewable energy projects in Vietnam faster and better, which
has attracted great interest from new energy investors, managers and
operators.
At the workshop, Hopewind made a thematic sharing of
"All-in-one Energy Storage Solutions and Products", combined with
the status quo of the development of the Vietnamese market, shared product
advantages, typical project case sharing, and integration of solar and energy
storage. Participants discussed the application of energy storage systems in
Vietnam's renewable energy projects.
In addition to the carefully prepared special lectures,
Hopewind also set up a product display area outside the venue to bring energy
storage products and solutions to the guests. During the break of the
conference, the exhibition area ushered in the visits of experts, investors,
and operators in the new energy industry. The staff of Hopewind gave the
guests a detailed and professional product technical explanation, which was
widely favored. Among them, the outdoor energy storage integrated machine
solution received particularly enthusiastic response.
Hopewind energy storage has an early layout and large
shipments. Products cover PCS, EMS, energy storage integrated machines,
off-grid controllers and other equipment. The application scenarios involve
various sides, including power generation, power grid, users, and microgrid.
With the leading system integration capability in the industry, the company
won the 2021 Best New Energy Side Distribution Energy Storage Project Award,
2021 Best System Integration Solution Supplier Award, and other honors.
Looking forward to the future, Hopewind will continue
to uphold the corporate mission of "promoting technological progress in
the industry and creating a better life for mankind" and insist on
innovation in energy storage technology to make electricity more valuable and
make the system safer and more stable.
Source:
VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan
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