VIETNAM BUSINESS NEWS NOVEMBER 2515:19 Foreign ship arrivals in Vietnam’s seaports rise 30 percent
The number of foreign ship arrivals in Vietnam’s seaports topped 59,100 in the first 10 months of 2021, up 30 percent year on year, according to the Vietnam Maritime Administration. Most of the foreign vessels are small ones, with capacity of less than 200 DWT, operating in the northern province of Quang Ninh. Meanwhile, the number of Vietnam-flagged vessels rose slightly, by 3 percent, with more than 52,500 arrivals. In contrast, arrivals by inland waterway vehicles declined by 6 percent to 292,300 as a result of the COVID-19 pandemic’s impacts. The number of river - sea compatible ship (VR-SB) arrivals at seaports in Vietnam stands at 40,558, equivalent to last year’s level. The Vietnam Maritime Administration said total cargo throughput at Vietnamese seaports exceeded 588 million tonnes during the reviewed period, up 3 percent from a year earlier. In particular, the volume of container goods grew 10 percent to over 20 million TEUs./. Reference exchange rate up 6 VND The State Bank of Vietnam set the daily reference exchange rate at 23,147 VND/USD on November 25, up 6 VND from the previous day. With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,831 VND/USD and the floor rate is 22,444 VND/USD. The opening-hour rates at commercial banks rose. At 8:30am, Vietcombank listed the buying rate at 22,555 VND/USD and the selling rate 22,785 VND/USD, both up 10 VND from November 24. BIDV also added 10 VND to both rates, listing the buying rate at 22,585 VND/USD and the selling rate 22,785 VND/USD./. Prime Minister meets with representatives of Japanese firms, universities Prime Minister Pham Minh Chinh had a dialogue with Japanese investors on November 24, during which the Vietnamese government leader affirmed that the Vietnam-Japan relationship has never been as good as it is now, and will even grow better in the future. According to the PM, Japan is currently the largest ODA donor to Vietnam, with nearly 27 billion USD, accounting for approximately 30 percent of the ODA that the Japanese government providing for countries worldwide. He highlighted that Japan is among the largest foreign investors in Vietnam, with about 4,800 projects totaling over 65 billion USD. Japan is also the third biggest tourism market of Vietnam, with about 1 million tourists visiting the Southeast Asian nation. Two-way trade between Vietnam and Japan has so far hit over 40 billion USD. The Government leader said Vietnam prioritises development in harmony with nature, climate change adaptation and digital transformation in the coming time, therefore, it urgently needs capital, technology and management methods, which are the strengths of Japanese investors, who have good understanding of and have a lot of success in the Vietnamese market. Early the same day, PM Chinh received representatives from leading economic corporations and universities of Japan that intend to invest in Vietnam. The general director of Shionogi Inc said that the group will continue to help Vietnam pilot the production of vaccines and drugs for COVID-19 treatment, adding that the firm wants to invest in a facility for vaccine and medicine research and production in Vietnam, the first of this kind of the group in Southeast Asia. Meanwhile, President of Hitachi Ltd., Higashihara Toshiaki proposed the Vietnamese Government allow the firm to expand its investment in projects on environment, health care, disaster risk reduction and railway in Vientam, thus contributing to the country’s development. Meeting with representatives from Sumitomo Corporation – a partner of BRG Vietnam, PM Chinh applauded the firm’s investment plan to develop urban areas in Vietnam. However, he suggested that the group should study to combine urban development with production and business, and development of cultural, sports and medical institutions. During meetings with representatives from Ryukyu University Okinawa, Jutendo University, Hokkaido University, Waseda University, Hiroshima University, and Kobuta, Paramount and Horiba and Azuma corporations, PM Chinh welcomed investment ideas of the establishments, saying that these are all areas that Vietnam is in need of investment./. Vietnam's industry-trade ministry, Japanese prefecture seal cooperation deal A Memorandum of Understanding (MoU) on strengthening cooperation in the field of trade and industry was signed on November 24 between the Vietnamese Ministry of Industry and Trade (MoIT) and the Japanese prefecture of Wakayama, on the sidelines of Prime Minister Pham Minh Chinh's official visit to Japan. Minister of Industry and Trade Nguyen Hong Dien and Governor of Wakayama Prefecture Nisaka Yoshinobu inked the MoU. Earlier, speaking at a meeting with Governor Nisaka, Dien spoke highly of the development potential of Wakayama - a locality with gross domestic product (GDP) ranked 20th out of 47 provinces and cities in Japan although it has just a population of over one million. The Vietnamese minister affirmed that there are still many opportunities for close cooperation between the two sides to turn that potential into substantial benefits for businesses of Vietnam and Japan. He asked the governor to encourage businesses in the prefecture to increase investment in Vietnam, saying that investing in Vietnam does not only help Wakayama’s enterprises exploit the market of nearly 100 million people, but also can reach out to the market of 600 million people of the Association of Southeast Asian Nations (ASEAN) or larger markets such as the Regional Comprehensive Economic Partnership (RCEP) or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). With investment from the prefecture’s firms, Vietnam will have access to new technologies in the production and processing of agricultural products and management expertise along with new human resources, he said. Dien also said he hopes that Wakayama Prefecture will cooperate in sharing experience, consulting on industrial development policies and promoting collaboration in the production of components and equipment for the textile industry. For his part, Governor Nisaka expressed his delight at the cooperation results between the two sides over the past time, and thanked the MoIT for the support in granting import permits for Unshiu's fresh tangerines from the prefecture. He also affirmed that Wakayama will facilitate the granting of licence for the import of Vietnam's fresh longan in 2022. Nisaka highlighted the significance of the cooperation framework between the MoIT and Trade and Wakayama Prefecture, and expressed his belief that through the MoU signed on this occasion, the two sides will closely coordinate to organise many specific activities to maximise the potential and strengths of Wakayama prefecture and Vietnam in the context that Vietnam and Japan are effectively implementing the CPTPP and preparing to implement the RCEP at the beginning of the next year. He also wished to welcome Vietnamese businesses to invest in Japan in general and Wakayama in particular in the near future./. Vietsovpetro welcomes first oil flow from BK-18A and BK-19 oil rigs Vietnam-Russia oil and gas joint venture Vietsovpetro on November 24 held an online ceremony to welcome the first flow of oil extracted from BK-18A and BK-19 oil rigs. The event marked the 40th founding anniversary of Vietsovpetro and the 60th anniversary of the traditional day of the Vietnam oil and gas industry (November 27, 1961 - November 27, 2021). Addressing the ceremony, Vietsovpetro Deputy General Director Vu Mai Khanh said new generation unmanned mini oil rigs BK-18A and other internal connection projects are constructed in Bach Ho oil field in Lot 09-1 in Vietnam’s continental shelf, about 125km southeast of Vung Tau city. BK-18A was designed and constructed by Vietsovpetro to exploit oil and gas from six wells with a total capacity of 1,360 tonnes. BK-19 was built and put into use to maintain the total oil production of Vietsovpetro at 3 million tonnes as set by the 2021 plan. The complicated developments of the COVID-19 pandemic has caused difficulties for the construction of the BK-18A and BK-19 oil rigs. However, Vietsovpetro has carried out a series of solutions, including reviewing the overall construction stages for the whole project and adopting three-on-site model. Thus, the projects have met the desired quality and were completed 48 days ahead of schedule./. Non-stop toll collection piloted on
certain expressways nationwide Accordingly, the Transport Ministry and the People’s Committee of corresponding provinces must direct investors of Build-Operate-Transfer (BOT) projects as well as toll collection service providers, especially those under the management of Vietnam Expressway Development Investment Corporation(VEC), to finish installing necessary equipment for the non-stop toll collection service on expressways in the first quarter of 2022 at the latest. All existing problems related to equipment operation must be thoroughly addressed to create convenience for users. Meanwhile, there must be propaganda campaigns to instruct vehicle owners and drivers moving on expressways with this service to use this service via a card stuck on the front of the vehicle. Service providers are asked to diversify payment methods for users to ensure that in June 2022, at least 90 percent of vehicles transporting on these expressways owning this card to pass non-stop toll collection stations. Deputy Prime Minister Le Van Thanh also assigned the Transport Ministry to select suitable expressways in each region of Vietnam to pilot this toll collection service for any eligible vehicles after at least 3 months propagandizing about it. The traffic flow should be reorganized to minimize potential negative effects on normal operation of those expressways and maintain legal benefits of investors. The Ministry of Public Security is directed to cooperate with BOT investors, toll collection service providers to strengthen traffic regulation and strictly fine ineligible vehicles entering the lane for non-stop toll collection. Phu Yen inks cooperation documents with two Japanese firms Vietnam’s central coastal province of Phu Yen will cooperate with two Japanese businesses in the aquatic sector and sorghum material area development, under memoranda of understanding reached on November 24 within the framework of the official visit to Japan by Prime Minister Pham Minh Chinh. Vietnamese Minister of Agriculture and Rural Development Le Minh Hoan and Secretary of the provincial Party Committee Pham Dai Duong witnessed the signing ceremony in Tokyo. Accordingly, Phu Yen will partner with Kiyomura Corporation in the aquatic sector, and with eREX Co., Ltd. in sorghum material area development, the two areas the province is focusing on to spur its economic growth post COVID-19. At a working session with leaders of the businesses earlier, Hoan affirmed his support for the projects, which, he said, are expected to contribute to boosting socio-economic development in Phu Yen and Vietnam at large. For his part, Duong said the projects would help to deal with difficulties to the supply chain and enhance cooperation between Vietnam and Japan, adding that Phu Yen’s competent agencies have completed the investment licence grant to the pilot project of eREX./. Tax rescheduling proposed to support local automobile industry The Ministry of Finance (MoF) has proposed rescheduling excise tax payments for local automobile manufactures and assemblers. The draft decree recommends that payments over 4.4 trillion VND (191 million USD) for October and November be delayed until late December. Under the draft decree the payment deadline of the October excise tax, or special consumption tax, for domestically manufactured or assembled cars will be extended to December 20, while the November deadline will be extended to December 30, according to the MoF. The draft decree was set up following the results of Decree No 109, which allowed local auto firms to enjoy excise tax payment extensions in 2020 to provide support for enterprises impacted by the COVID-19 pandemic. To be entitled to the extension, local automotive firms will have to submit online or written applications for extensions to tax agencies when making excise tax declarations, in line with current regulations. If the application is not submitted while making tax declarations, the firms will have to submit the applications before December 15. If automotive firms, who were not subject to the incentive during the extension period, are found to have obtained an extension, they will have to fully pay their excise taxes and delayed amounts. After the extension period, if tax agencies discover firms who are not subject to the incentive but still hold an extension, they will have to pay fines on top of fully paying their excise taxes and delayed amounts. Most of the relevant ministries and agencies agree with the MoF's draft decree. The Ministry of Foreign Affairs has agreed that it is essential to support businesses in overcoming the difficulties of the COVID-19 pandemic. By doing so, local automobile manufacturers and assemblers, as well as automobile joint-venture car makers and assemblers in Việt Nam, will benefit from the decree. This will allow them to gather more capital to maintain and expand their production. The Vietnam Chamber of Commerce and Industry (VCCI) has also come to a consensus on the extension policy to support businesses, as proposed by the Ministry of Finance. VCCI recognises that local automobile assemblers and manufacturers have played an important role in the country’s economic development. The manufacturers and assemblers have made great contributions to the State budget through the collection of all kinds of taxes and fees, as well as creating jobs for hundreds of thousands of people. Successfully maintaining a domestic automobile industry will also be an opportunity to transfer advanced technologies to the local auto industry./. Vietnam attends first Asia-Europe Economic and Business Forum Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan represented Vietnam to attend the first Asia-Europe Economic and Business Forum (AEEBF1), one of the side events of the 13th summit of the Asia-Europe Meeting (ASEM 13), held via video teleconference on November 24. Themed “Transitioning to a New Normal: Leveraging Global Value Chains, Multilateralism and the 4IR,” the event was hosted by Cambodia’s Ministry of Commerce under the support of the Council for the Development of Cambodia (CDC), the Asia-Europe Foundation (ASEF) and other partners. It brought together policymakers, economists and academics as well as representatives from nearly 500 corporations from 53 countries all over the world. The event, initiated by Cambodia, the host country of ASEM 13, addressed a variety of topics, for example, the advancement of digitalization fostering global value chains and its consequences; impacts of the COVID-19 pandemic on trade, investment and economy and the post-pandemic economic recovery; and the significant roles of the multilateral trading system and free trade agreements in the Fourth Industrial Revolution (4IR) and the New Normal. Speakers also discussed new growth opportunities for global trades and businesses, particularly start-ups and macro-, small- and medium-sized enterprises (MSMEs), in light of new technology and digitalization in the 4IR, with governments’ on-going adjustments and reforms; and investment in green infrastructure and green business to adapt to climate change and disaster management, thus building resilience to crises and ensuring sustainability and socio-economic development. The ASEM 13 will take place in Cambodia on November 25 – 26./. EVNCPC ranks fifth in ASEAN in Smart Grid Index The Central Power Corporation (EVNCPC) said on November 24 that it ranks fifth in ASEAN in the Smart Grid Index (SGI) with 64.3/100 points. The ranking was conducted by SP Group, a leading utilities group in the Asia Pacific, and provides a suite of sustainable energy solutions for customers in Singapore and the region. Since 2012, the corporation has begun to work on a project on the roadmap developing a smart power grid, which was officially approved in 2013. By the end of October 2021, EVNCPC had installed 4.2 million electronic meters, of which 4 million are telemeters using the RF Spider system, helping to raise the success of electrical data collection to 99.2 percent. The SGI is a simple and quantifiable framework that measures smartness of power grids globally, in seven key dimensions. The framework assesses proxies of each dimension using publicly available information. The index guides utilities to build smarter grids and deliver better value to customers. From the benchmarking results, best practices can be identified, and shared among peer utilities to drive smart grid advancement. The 2021 SGI benchmarks a total of 86 utilities across 37 countries/markets./. Central Bank injects $2.63 billion into forex reserves This resulted in trillions of dong being pumped into the economy and helped reduce the inter-banking lending rates. In the first three weeks in November, the State Bank of Vietnam (SBV), the country’s central bank, bought in a total of VND60 trillion ($2.63 billion) in foreign currencies. This resulted in trillions of dong were pumped into the economy, helping reduce the inter-banking lending rates by 0.04 percentage points to 0.65% per annum at the end of last week, and at 0.75% in overnight rate (down 0.03 percentage points) for the one-week loan, stated the SSI Securities Corporation (SSI) in a report. An update from the SBV revealed the capital mobilization rate has significantly reduced since April as the public continues to withdraw money from the baking system amid a low-interest-rate environment. It is estimated that the deposits from individual customers in the banking sector would expand by 4% in 2021, significantly down from the 7.5% growth rate recorded in 2020. However, total deposits in the sector as of September stayed positive at VND10,500 trillion ($461.56 billion), up 11.2% year-on-year. According to the SSI, the number of deposits would hardly see any significant changes during the last two months of this year. “The low GDP growth in 2021 may impact the financial situation of the people, which would translate into a modest growth in people’s deposits in banks compared to the pre-Covid-19 period,” noted the SSI. Meanwhile, the SBV has repeatedly reaffirmed its stance to maintain an easing monetary policy, for which the SSI expected the central bank would soon expand credit quota for banks with good financial situations. Banks are now offering interest rates of 3-4% per annum for loans of less than six months, 3.7-5% for six-12 months, and 4.2-6.5% for over 12 months. On the contrary, lending rates for short-term loans are 5-7% per annum and 9-11% for loans of over 12 months. The SSI also noted the exchange rate in the inter-banking market has been stabilized at around VND22,645/USD, while the rate in the free market was VND22,525/22,755 per USD. “Despite the trade balance falling into a deficit of $370 million in the first half of November, such trend is expected to be overturned in the last half of the month with a trade surplus taking over for the remainder of the year,” stated the SSI. The SSI also pointed out a strong remittance inflow during the year-end period and a balance of supply-demand of foreign currency during this period as key factors to maintaining a stable USD/VND exchange in late 2021 and early 2022. VND to remain on a gradual weakening trend in long-term Fitch Solutions, a subsidiary of Fitch Group, forecast the USD/VND exchange rate at 23,000 in 2021 from VND23,100/USD previously. “Strong inflows from trade surpluses and foreign direct investments (FDI) will continue to drive dong strength, but more importantly, the central bank appears to be favoring a stronger dong, in order to curb imported inflation and also likely caused by protracted pressure from the United States although the US Treasury removed Vietnam from its currency manipulator list,” it noted. In long term, Fitch Solutions expected the VND to remain on a gradual weakening trend against the US dollar, which would stand at VND23,200/USD, slightly weaker relative to 2021. “Higher structural inflation in Vietnam versus the US will also weigh on export competitiveness and incentivize imports, which combined will pressure the dong weaker,” stated Fitch Solutions. “We forecast inflation in Vietnam to average 3.6% between 2022 and 2023. Our forecasts for Vietnam lie above our 1.8% average forecast for the US over the same period,” it continued. Despite these slightly bearish drivers, Vietnam’s strong economic growth prospects, in which Fitch Solutions forecast real GDP growth of 6.6% in 2022 and 6.5% in 2023, exceeding the 3.7% and 1.9% the agency expects for the US. This suggests that continued strong investment flows to Vietnam will limit the scope for dong weakness, it concluded. Surge in supply of Vietnam’s green buildings Vietnam has a huge opportunity for the development of green buildings as sustainability is an important or top-level priority for their organization, foreign experts said. Speaking at a webinar “Vietnam green building market update Q3/2021 and Unlock green potential for existing properties” on November 23, Michelle M. Farrell, Global Marketing & Business Development Lead for EDGE green building at IFC revealed that, by September 2021, Vietnam has 201 certified green buildings, equivalent to 5.3 million square meters, an increase of 30% over the same period last year. Among these certified green building projects, EDGE (Excellence in Design for Greater Efficiencies) accounted for 50% of the total number, followed by LEED (Leadership in Energy and Environmental Design) (44%) and Lotus (Vietnam’s set of voluntary green building rating systems) (7%). “Real estate developers are increasingly interested in green buildings,” Farrell added. Six out of 14 top-listed developers in Vietnam have planned or implemented green building projects in their portfolio. These are Novaland (NVL), Nam Long (NLG), Khang Dien House (KDH), Van Phu Investment (VPI), Phat Dat (PDR), and DIG. Residential and industrial are greenest sectors, accounting for the majority of total areas certificated green building in Vietnam, with 41% and 37%, according to IFC. Regarding the demand of local tenants, Neil MacGregor, Managing Director of Savills Vietnam said a certain number of global businesses have stated net-zero carbon emissions. “That’s why businesses looking for offices or buildings to rent and build are always moving towards green certification. These tenants are willing to pay a higher fee for these buildings,” he added. He stated that the businesses wishing to rent an office in Vietnam are also interested in green building certification though this market is quite young. However, this poses a big challenge for the supply when investors are looking for green, friendly buildings to invest more, MacGregor said, adding there is also growing interested in upgrading existing buildings for the retail segment in Vietnam. Forecasting the green building market, Farrell from IFC said: “For Vietnam, we see a huge potential market opportunity in green building.” She added during the COP26 conference, many countries set emission reduction targets and the Vietnamese Prime Minister stated a goal of net-zero emissions for Vietnam by 2030. To be able to realize this goal, it is necessary to understand the trends in the coming time including green finance, zero carbon emissions, and upgrading existing buildings to achieve green criteria, she said. IFC estimated the country’s new green buildings represent an almost $80 billion investment opportunity. Potential investment in renewable energy totals $59 billion, with over half of this ($31 billion) in solar photovoltaic (PV) technology and another $19 billion for small hydropower projects, Vietnam’s climate-smart business investment potential is an estimated US$753 billion, with the majority ($571 billion) going towards the country’s transportation infrastructure needs by 2030, according to IFC. Currently, countries have set requirements for environment-social-government (ESG) reporting, which have become one of the important items on the agenda for sustainable development. ESG reporting including energy use and emissions, labor practices, board diversity, and management is now mandatory for Hong Kong (China) listed companies. Vietnam, China, New Zealand, Singapore, and India will be the followers in 2024-2025. MacGregor said Vietnam’s policy for ESG is new and has become clearer. According to Circular 96 issued by the Ministry of Finance, listed companies are required to submit and publish ESG credentials in their annual report, which includes corporate objectives with regard to the corporate environment, society, and community sustainability. The company may prepare a separate report on ESG. Dire need of essential housing for workers Since late September until early October a huge number of workers employed in manufacturing units across cities and industrial zones chose to return back to their countryside homes, citing poor accommodation facilities in urban areas. This proves that Vietnam's economic structure is prone to instability. Essential housing for workers is not guaranteed, and there is a dire need to resolve this housing problem if the production chain is to once again restart to lift the economy after months of lockdown due to the Covid-19 pandemic. Unrealistic policy Over the last many years we have made great efforts to promote industrialization and urbanization. As is seen, the inflow of workers relocating from rural to urban areas in order to work in industrial zones (IZ) and export processing zones (EPZ), has been an important driving force for Vietnam's economy and subsequent development. However, this recent shift creates instability for workers living in megacities and large construction sites. Currently, under the abnormal pandemic conditions, there has been an influx of workers returning back to their hometowns, of which number only some will return back to the big cities and IZs to resume work, with many still choosing to stay back in the countryside. One of the reasons why workers choose and prefer to return to their hometowns is because of lack of proper accommodation and uncomfortable living conditions in urban areas, for themselves as well as their families. Since 2014, the Ministry of Construction has introduced an ideal model for accommodation and housing of workers in the category of social housing, which can receive support from the state budget capital in planning and construction. This was meant to encourage businesses to resolve the huge problem of housing for workers in big cities like Hanoi, Ho Chi Minh City, and some provinces undergoing rapid industrial development such as Bac Ninh, Thai Nguyen, Vinh Phuc, Dong Nai, Binh Duong, and Long An. However, from actual policy making to realistic implementation of this scheme it has remained a distant dream. For this reason, a large number of low-income workers still have been unable to own a suitable roof over their heads in big cities, and continue to live in places that do not even have the minimum living facilities for them and their families. Recently, the Ministry of Construction sent the People's Committee of all provinces and cities a document calling to strengthen housing development for workers in industrial zones and export processing zones, in order to ensure resumption of production activities. The ministry has proposed to supplement a credit package of about VND30,000 bn in the form of refinancing for social housing investors and worker housing in industrial parks and export processing zones. However, the social housing projects, affordable housing schemes, or worker housing that have been deployed so far have not yet met this demand. One of the reasons why worker housing projects are difficult to implement is the low return on capital, and for this reason businesses are not interested in donating capital. New strategy This calls for a new development strategy, which will not follow the earlier development plan of megacities or large construction sites. In past times, there was more focus on labor intensive industries and outsourcing industries rather than high-tech, high value added industries, which was unreasonable in the building of Hanoi and Ho Chi Minh City into large urban areas with links to nearby industrial zones. This shows that, when focusing on labor-intensive industries with low added value, mainly outsourcing, it will create an overload on urban space and IZs, including the economy, society, and technology, and will create an unequal competition between Hanoi, Ho Chi Minh City, and other developing provinces and cities. It does not guarantee inclusive and pervasive development, because the growth and accumulation will focus more on IZs and big cities, leaving behind other provinces and cities. Therefore, it is important that major commercial centers of the country such as Hanoi and Ho Chi Minh City should focus on high-tech industries, industries with greater added value, while labor-intensive industries and outsourcing should move to rural areas. This will ensure that industrial centers and large urban centers are not overloaded. It will also ensure a greener and healthier lifestyle and a more sustainable economy. If workers in big cities or IZs have an income of around VND7 to 10 mn a month, they still have to pay a lot for food, housing, and social services. However, if they live in the countryside, they can be self-sufficient in food and housing, and then with their current income they will be much happier. Therefore, bringing industry to the countryside is the best way to develop the rural economy, narrowing the gap between urban and rural areas. By observing enterprises in the past it also shows that if the focus is only on cities and IZs, it will be very difficult for many enterprises. Enterprises can now disperse their production across several units in many provinces and cities. If there is a problem in one place, then another place will continue to produce and employees can still continue life without disruption. This is also a challenge for Vietnam to restructure the economy in the direction of not focusing on production in big cities and IZs only. Satellite cities must be formed, bringing industry to the countryside, promoting rural development, integrating industry and agriculture, and bringing happiness to employees as well as sustainable development for businesses. For businesses and industry to grow and develop and continue to attract a large workforce, it is absolutely essential to immediately solve the problem of where the workers will be accommodated, what type of social housing it will be, what worker houses will be like, and what State policies will support this project. Together with businesses, employers, and workers, the State must jointly coordinate to build a conducive living environment for workers and employees, so that the place they go to work in is not just a place where they operate machinery. Rural areas have a relatively good ecological environment, so by bringing in industry, the countryside may well turn into a concrete tarmac. All effort must therefore be made to save the countryside into turning into an IZ, where both the environment and society will suffer. Lateness in Long Thanh International
Airport construction due to land clearance Investigations show that there are signs of land sellers and buyers agreeing to fake earlier transaction dates to receive more land clearance compensation. A land investor in Bien Hoa City of Dong Nai Province informed that he was marketed a lot of over 1ha in Binh Son Commune, along with 2 resettlement lots, with the price of VND2 billion ($88,000). If agreeing with the deal, the two parties enter a handwritten contract with an earlier transaction date (before the National Assembly approved investment into Long Thanh International Airport project and July 1, 2014 when the 2013 Land Law was in effect). If all go well, this investor will receive VND4 billion ($176,000) of compensation. This action is not at all uncommon for land transactions in the neighborhood near Long Thanh International Airport project, creating more difficulties for land clearance tasks here. As scheduled, Long Thanh District of Dong Nai Province has to erase a whole commune named Suoi Trau and certain hamlets in the communes of Cam Duong, Long An, and Long Phuoc. Due to heavy workload, it is challenging for state officials to verify the precision of informal handwritten land contracts such as corrected details in a contract, one lot sold several times to several buyers all via handwritten contracts, and even disputed land. This has made land compensation an extremely difficult task. Dong Nai Province People’s Committee reported that until November 10, 2021, Long Thanh District approved requests of over 4,400 land compensation cases, 3,600 of which successfully received their money. The rest are waiting for further investigation and verification. Vice Chairman of Binh Son Commune People’s Committee Hoang Huu Minh stated that the most troublesome task is to track back the origin of handwritten land contracts since the land use right in these cases is not certified by authorized agencies. To accelerate the progress, Binh Son Commune People’s Committee has to post land recovery notices on its bulletin board. Within 15 days, if land owners do not come to complete necessary procedures, the localities will retrieve the lot and store the corresponding compensation in the local state treasury. To identify land owners precisely, the functional agencies have to collect ideas from the neighborhood and people working on that lot, followed by a comparison with details saved at the Center for Land Development Resource of Long Thanh District. In reality, only around half of the land is approved for compensation (57ha out of 104ha along the DA boundary and 342ha out of 722ha in the land reserve area). As informed by Chairman of Long Thanh District People’s Committee Le Van Tiep, when the airport construction project was approved by the National Assembly in 2015, all land transactions were instructed to temporarily halt. However, information land purchases via handwritten contracts have still continued. Therefore, the district is working with the task force assigned to handle problems related to this project in order to address any arisen land issues and arrange resettlements for citizens. Matters beyond power will be sent to Dong Nai Province People’s Committee before being submitted to the central agencies for further direction. In the recent virtual meeting about the land clearance task for Long Thanh International Airport construction project, Deputy Prime Minister Le Van Thanh asked that Dong Nai Province People’s Committee be responsible for completing this important task in the first quarter next year and prepare a report for the Government. He stressed that since this building project is critical in traffic infrastructure development for the southern region and the whole country in general, it has attracted much attention of all people nationwide. Hence, it is necessary to ensure the schedule of all stages so that the project can be finished in 2025. Ba Ria-Vung Tau emerges as attractive investment destination for Australian businesses Vietnam, especially the southern province of Ba Ria Vung
Tau, represents a promising investment location for Australian investors,
according to industry insiders. The report outlines that the Vietnamese economy is characterised by high-speed growth, open trade policies, and policy frameworks, all of which are designed to attract foreign investment, while the country’s participation in the international economic architecture has been instrumental behind its continued growth. This has therefore paved the way for the nation to become a preferred destination for firms seeking alternatives to China as a manufacturing hub under the so-called “China plus one” strategy. The industrialisation process represents an engine for continued high-speed growth of the kind that will propel the nation to join the ranks of the world’s top 20 economies by 2050, the report noted. It also pointed out several attractive factors in the eyes of Australian investors, such as an ideal geographic gateway for international trade for the greater Ho Chi Minh City metropolitan region, available infrastructure such as ports, international airports, and the location of national LNG import infrastructure. These factors, coupled with the province's policy aimed at supporting local investment, have contributed to making Ba Ria - Vung Tau province a vanguard in terms of economic linkages between both countries, thereby turning the locality into one of the most attractive Vietnamese locations for foreign financiers, Kyle Springer, a Policy Fellow at the Perth USAsia Centre stressed. Krista Dunstan, high commissioner in charge of Investment and Trade with ASEAN under the Government of Western Australian, revealed that bilateral trade ties have blossomed during the COVID-19 pandemic, particularly as exports surged by 25% to reach US$1.6 billion last year. Alongside Australian firms operating in the Vietnamese market such as BHP Group, BlueScope, and Interflour, other companies have continued to maintain a presence locally, including CBH Wheat Company and global shipbuilder Austal. Rebecca Ball, senior trade and investment commissioner in Vietnam, said Australian firms has viewed Ba Ria Vung Tau as a potential locality to promote co-operation in the fields of energy, supply chain, logistics, and education. Tran Van Tuan, vice chairman of the People's Committee of Ba Ria - Vung Tau province, shared that the locality is keen to attract foreign investment, including financiers from Australia, especially in four key economic sectors such as industry, seaport and logistics, tourism, and high-tech agriculture. Ba Ria - Vung Tau also has great potential for the export of processed forestry and fishery products, with the locality being keen to seek an Australian partner in the area, he noted. Vietnamese Ambassador to Australia Nguyen Tat Thanh emphasised that Ba Ria - Vung Tau is a locality with an important strategic geographical position, particularly as it is home to the country's largest seaport Cai Mep-Thi Vai. She pointed out that trading ties between both sides have been consistently growing, with turnover reaching US$10 billion during the initial 10 months of the year, up 50% against the same period from last year, noting that Australia-Vietnam Enhanced Economic Engagement Strategy has also opened up a wealth of opportunities for future economic co-operation. Furthermore, the establishment of strategic partnership framework in 2018, coupled with the participation in new-generation FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Partnership Agreement and the Regional Comprehensive Economic Partnership (RCEP), are expected to provide a solid foundation for further development of joint economic ties. Indeed, Ba Ria Vung Tau can be viewed as an ideal focal point for efforts to upgrade Australia-Vietnam economic ties. Vietnam, Egypt beef up trade and investment co-operation There are bright prospects ahead for greater
co-operation in the fields of economics, trade, and investment between the
nation and Egypt, according to Vietnamese Ambassador to Egypt Tran Thanh
Cong. At the function, the Vietnamese diplomat highlighted the long-standing relationship between both sides, while simultaneously urging Damietta province to ramp up co-operation with a Vietnamese locality in fields of strength. H suggested both sides provide information relating to investment opportunities among localities in a bid to step up co-operation in priority areas, such as electronics, industrial parks, logistics, and ports. In response, Governor Mikhail expressed his wish that Vietnamese localities will strive to boost co-operation with Damietta province in the fields of wooden furniture production, ship building, and fishing. As the largest wood processing industry in the Middle East and with strengths in fields such as aquaculture and tourism, Dameitta province is hopeful of co-operating with numerous Vietnamese localities and businesses in related fields in the near future, said the Egyptian Governor. Both sides also agreed to intensify the exchange of information and business delegations, and sign future co-operation agreements when the COVID-19 pandemic has been brought under control. Ambassador Cong also cut the ribbon inaugurating the "Vietnamese Book Corner" at the Damietta Public Library, while simultaneously presenting over 100 books on politics, diplomacy, economics, and culture for the library. Furthermore, the Vietnamese Embassy also hosted a photo exhibition aimed at introducing Vietnamese culture and people to an Egyptian audience. The local diplomat also took part in a business forum aimed at discussing potential and opportunities for joint co-operation, with the event witnessing the participation of representatives from roughly 100 businesses in the province. Upon addressing the forum, Ambassador Cong emphasised that thanks to the Doi Moi (Renewal) policy, the country has achieved an array of great economic achievements over the past four decades. With an annual economic growth rate of over 6%, the nation has become an attractive destination for international investors. He noted that two-way trade exchange now stands at just over US$500 million per year, a figure which remain below both sides' full potential. At the forum, Mohamed El Ziny, chairman of the Damietta Chamber of Commerce, suggested that Vietnamese and Egyptian firms sign an agreement between the Damietta Chamber of Commerce and a partner in Vietnam in a bid to strengthen connectivity. This would also contribute to gaining greater insights into preferential policies in order to further promote trade and investment co-operation between the two countries in the future, he added. Vietnam, Egypt look to beef up trade, investment ties Vietnamese Ambassador to Egypt Tran Thanh Cong led a delegation to visit Damietta province on November 22-23 with the aim to promote cooperation in terms of economy, trade, investment and culture between Vietnam and Egypt in general and localities of the two countries in particular. At a working session with Governor of Damietta Manal Awad Mikhail, Ambassador Cong emphasised the long-standing friendship between Vietnam and Egypt, saying that the two countries see many opportunities for economic and trade cooperation. He suggested the Egyptian locality promote cooperation with a locality of Vietnam in fields where the two sides have strengths, saying that the two sides should share information on potential and investment opportunities between their localities to advance cooperation in priority areas such as electronics, industrial park, logistics and seaport. For her part, Manal expressed her wish that Vietnam as well as its localities will promote cooperation with Damietta in the fields of wooden furniture production and shipbuilding. Boasting the largest wood processing industry in the Middle East, and its strengths in aquaculture and tourism, Dameitta province wishes to partner with localities and businesses of Vietnam, she said. The two sides jointly affirmed their desire to enhance information sharing and exchange of business delegations after the COVID-19 pandemic is controlled, towards signing cooperation agreements. In the framework of the visit, a business forum on potential and opportunities for Vietnam-Egypt cooperation was also arranged, attracting the participation of representatives from nearly 100 local businesses. Speaking at the event, Ambassador Cong said two-way trade between Vietnam and Egypt does not match their potential, noting that with Vietnam's open policy, Egyptian businesses have many opportunities to partner with Vietnamese companies. Participants were updated on investment attraction policies, policies on tax, customs, and incentives for investors, as well as potential and advantages of Vietnam. Chairman of Damietta’s Chambers of Commerce Mohamed El Ziny expressed a hope that his agency and a corresponding partner in Vietnam will sign a cooperation agreement to connect businesses, exchange information and learn about preferential policies of the two countries, thus promoting bilateral trade and investment cooperation. On the occasion, the Vietnamese diplomat cut a ribbon to inaugurate a “corner of Vietnamese Book” at the Damietta’s public library, and presented more than 100 book titles on politics, diplomacy, economy and culture to the library. The embassy also organised a painting exhibition to introduce Vietnamese culture and people to Egyptians and those in Damietta province in particular./. Banking sector embraces digital transformation to improve customer experience Faced with complicated developments of the COVID-19 outbreak in recent times, banks in Ho Chi Minh City and elsewhere in the country are strictly complying with social distancing regulations while also ensuring their systems operate smoothly and efficiently and fully meet the needs of individual and corporate customers. The recent social distancing period was also a time when HDBank speeded up transformation of its operations. So, despite reducing the number of employees working directly at the office and counter in accordance with the regulations on social distancing and epidemic prevention, the bank saw an increase in labour productivity and a reduction in costs while ensuring service quality and managing to serve customers in the best way. This was thanks to the bank's modern technology platform. HDBank has embraced digital transformation in all aspects like transaction processes, operations, human resources, and evaluation since 2020, and now seeks to make the digitisation faster and more comprehensive. HDBank has managed to speed up comprehensive digitisation through key projects such as digitising the customer journey to bring new and convenient experiences in opening a payment account and savings book online and offering loans online against deposits, digitising the online customer journey with pioneering technologies such as electronic know your customer (eKYC), advanced eKYC and integrated authentication via video call, digitising the internal communication system, big data collection and analysis, and virtual assistant switchboard. The use of robotic process automation technology with robot assistants has helped the bank reduce manual tasks by more than 80 percent and increase processing speed 30 times (from three minutes to only five seconds for a transaction) with an error rate of almost zero. According to the bank’s statistics, in the five months since the account opening process at the counter was digitised, the number of customers registering for e-banking rose to 67 percent from the earlier 50 percent. HDBank’s digital applications and automation of products and services have helped improve the efficiency of transactions and meet customers’ needs amid the social distancing and ‘new normal’. As a result, in the first six months of the year the number of e-banking transactions doubled from the same period last year with the transaction value tripling to nearly 60 trillion VND (2.6 billion USD). To support businesses after the restrictions were lifted and gradually revive production and business, HDBank continues to deploy credit promotion services such as cash flow management, issuing UPAS L/Cs to promote import and export and rapid payment through eBanking with a comprehensive digital solution package. It has also optimised services on digital platforms such as opening a business account online, 24/7 online lending (eCredit), issuing L/C online (eLC), and online international money transfer, all to support corporate customers with solutions and adapt to the new normal and digital society. HDBank has also digitised the operating process through the use of robots for timekeeping for employees, handling requests from customers and automatic order approval. In its internal operations too, HDBank has strongly digitised by applying Akabot, a comprehensive RPA platform that helps automate business processes involving a large number of repetitive tasks to increase productivity and improve cost savings; regularly organising online training, seminars and workshops; and enhancing communication on its internal communication channel, Workplace. The iPaper system is applied to almost all internal processes/regulations, saving the time and cost needed for paperwork and being of particular help during the social distancing period. Valuation, automatic and centralised accounting and document management are all optimised on the technology platform. Thanks to its accelerating digital transformation, HDBank has ensured the efficient operation of its internal systems and business activities and smooth operation of products and services on the digital platform, especially amid the pandemic-driven restrictions. Tran Thu Huong, director of the bank’s operations division, said: “To ensure smooth operations, the operations division in collaboration with other divisions has made improvements in everything starting from the most minor of them. “Thanks to that, we have created a new, scientific, systematic, and more comprehensive way of working, saving time in handling services provided to customers. With the goal of how to serve customers most effectively, we always strive to make today better than yesterday and tomorrow better than today.” HDBank has efficiently implemented the Government’s policy on waiver and reduction of loan interest rates to support customers in a number of areas directly affected by COVID and where there has been prolonged social distancing, with more than 18,000 customers owing a total of nearly 42 trillion VND in outstanding balance benefiting. The results have helped HDBank succeed in building a large loyal customer base. Reforming operations and improving services on a digital basis is one of HDBank’s efforts to make a difference in serving customers, making them happy and successful, and helping them achieve financial security./. Officials talk facilitation of Vietnam - Panama trade, investment ties Deputy Minister of Industry and Trade Do Thang Hai had an online meeting with Panamanian Deputy Minister of Commerce and Industry Juan Carlos Sosa on November 24 to discuss ways for bolstering bilateral trade and investment. Hai noted with satisfaction that trade between the two countries grew strongly in the first 10 months of 2021, by 21 percent year on year, to 337.26 million USD. Of the figure, Vietnam’s exports to Panama reached 336.23 million USD, rising 24.35 percent. However, he said, to develop economic and trade ties on par with potential, the two sides should increase coordination in trade and investment promotion both in person and via videoconference. They also need to share information about their product quality standards, boost mutual visits by enterprises, and increase business matching, especially when the COVID-19 pandemic is gradually brought under control. The Deputy PM also asked Panama to create favourable conditions for Vietnamese firms’ trade promotion activities in the country and help its businesses learn about the Vietnamese market. For his part, the Panamanian official said his country hopes to foster the export of some agricultural and aquatic products to Vietnam. He agreed that the two sides will coordinate closely to step up bilateral trade and investment via activities assisting their businesses to explore and access each other’s markets. Panama will organise the ExpoComer international trade exhibition in Panama City from March 23 to 26 next year, Sosa noted, inviting Vietnamese firms to attend the event to seek chances for trade and investment partnerships with the country and other Latin American nations. At the meeting, the officials agreed to keep working together to hold the second meeting of the Vietnam - Panama Joint Committee for Economic, Trade, and Investment Cooperation in 2022./. Symposium explores trade potential with Argentina The Vietnamese Embassy in Argentina hosted a symposium
on November 24 aimed at exploring development potential for trade between
Vietnam and Argentina. In his remarks, Vietnamese Ambassador Duong Quoc Thanh highlighted bilateral relations with Argentina over the past 50 years, noting that two-way trade turnover has increased from US$1 billion in 2010 to approximately US$4 billion last year following the establishment of their comprehensive partnership in 2010. However, the diplomat said trade exchanges largely focus on major commodities such as corn, soybeans, animal feed, and pharmaceuticals of Argentina, as well as phones and components from the Vietnamese side, while the two sides possess may other key commodities for export. He attributed these inadequacies to a general lack of information about market demand, a relevant approach, and consumer tastes. The symposium provides an ideal venue in which to resolve difficulties of market access, whilst simultaneously promoting trade exchanges in order to introduce high-quality products at reasonable prices, said Ambassador Thanh. In response, Argentina's Assistant Minister of Production Martin Schapiro affirmed that Argentina has always attached great importance to the partnership with Vietnam, adding fruitful cooperation between the two sides has been demonstrated through the effective implementation of joint schemes in various fields such as trade, culture, and health over recent years. Despite challenges posed by COVID-19, Argentina's economy remains a potential market for foreign partners, including Vietnam, emphasized the trade official. He expressed his hope that through this symposium, Vietnamese businesses will gain greater insights into useful information and will strive to devise new export directions to the Argentine market. Vietnam - Panama talks facilitate
trade, investment ties However, he said, to develop economic and trade ties on par with potential, the two sides should increase coordination in trade and investment promotion both in person and via videoconference. They also need to share information about their product quality standards, boost mutual visits by enterprises, and increase business matching, especially when the COVID-19 pandemic is gradually brought under control. The Deputy PM also asked Panama to create favourable conditions for Vietnamese firms’ trade promotion activities in the country and help its businesses learn about the Vietnamese market. For his part, the Panamanian official said his country hopes to foster the export of some agricultural and aquatic products to Vietnam. He agreed that the two sides will coordinate closely to step up bilateral trade and investment via activities assisting their businesses to explore and access each other’s markets. Panama will organise the ExpoComer international trade exhibition in Panama City from March 23 to 26 next year, Sosa noted, inviting Vietnamese firms to attend the event to seek chances for trade and investment partnerships with the country and other Latin American nations. At the meeting, the officials agreed to keep working together to hold the second meeting of the Vietnam - Panama Joint Committee for Economic, Trade, and Investment Cooperation in 2022. Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan |
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