VIETNAM BUSINESS NEWS JANUARY 24
16:32
Tax authorities clamping down
on foreign evaders
The total tax debt under the management of tax
authorities is estimated at VND104 trillion (US$4.5 billion) as of December
31 last year, a year-on-year increase of 9.3 per cent.
The General Department of Taxation reported that it
collected VND25.1 trillion by December 31, reaching 83.4 per cent of the
assigned debt collection target.
The total amount of tax and late payment handled was
VND33 trillion, equal to 117.8 per cent of the assigned task.
A representative of the General Department of Taxation
said that the increase in tax debt was due to the pandemic.
Many localities had to apply social distance in
accordance with Directive 15/CT-TTg and Directive 16/CT-TTg of the Prime
Minister, leading to many difficulties in production and business.
Many enterprises fell into a state of loss and
insolvency, or their property was mortgaged at banks, leading to taxes not
being paid promptly to the State budget.
Quadria Capital invests $90 million
into Vietnam's mom and baby retailer Con Cung
Quadria Capital, Asia’s leading healthcare
investment firm, this week announced the completion of its $90-million
investment in Con Cung, Vietnam’s largest and fastest-growing mom and baby
retail network.
The fund will be used to support Con Cung’s ambition to
launch 2,000 local stores by 2025, expand its product portfolio, as well as
develop an all-in-one super app that provides personalised products and
services for over five million Vietnamese mothers.
Founded in 2011, Con Cung is a household name in the
mother and baby products industry with over 600 fully-owned stores across 45
provinces and cities in Vietnam.
ATMs not busy, banking apps
congested as Tet nears
Although the Lunar New Year (Tet) is nearing, long
queues of people are no longer seen at automated teller machines (ATMs) like
in previous years. Instead, online transactions on banking applications are
facing difficulties, with network congestion frequently reported by users.
Regarding faults of banking apps, representatives of
some banks said that the sudden increase in transaction demand in recent days
has caused overload of the system sometimes, disrupting services. All banks
have urgently taken measures to stabilise their services soon.
To avoid network congestion when doing online
transactions or having to wait in line to withdraw money at ATMs or
transaction offices, banks recommend that users plan ahead and avoid peak
times.
Nearly 55 per cent of Japanese firms
in Vietnam gained profits despite pandemic
The Japan Trade Promotion Organization (JETRO) has just
published a study of 4,600 Japanese businesses operating in roughly 20
Asia-Pacific regions, including 700 in Vietnam.
According to the findings, 54.3 per cent of Japanese
enterprises in Vietnam are expected to have been profitable in 2021, up 4.7
percentage points from the previous year. While the rate of businesses that
suffered losses was 28.6 per cent, it was down 1.5 percentage points from the
previous year.
Amid fears that businesses would be irreparably impeded
as a result of the strict and prolonged social distancing period, according
to Takeo Nakajima, chief representative of JETRO, more than 55 per cent of
Japanese businesses still want to expand their operations in Vietnam in the
next 1-2 years (the highest proportion among ASEAN nations); and 42.5 per
cent of businesses plan to remain at their current size while only 1.9 per
cent want to trim down or close their operations.
As a result of its market size and development
potential, Vietnam consistently ranks among the top destinations for Japanese
companies looking to expand their operations abroad. Furthermore, as compared
to other nations, Vietnam's socio-political stability and high quality of
labour are distinguishing characteristics, said Takeo.
When it comes to the future of Japan's investment flow,
Takeo is fairly optimistic. He believed a large number of agreements between
Vietnamese and Japanese enterprises worth billions of dollars were made
during Vietnamese Prime Minister Pham Minh Chinh's visit to Japan in
November, particularly during his visit to Tokyo. This would be a critical
precondition for any new Japanese investment projects in Vietnam.
Lossmaking plants to afloat thanks
to Government scheme
Thanks to a scheme for state-owned enterprise (SOEs)
restructuring during 2016-2020, many unprofitable plants have been
reinvigorated, according to reports.
Viet Nam Oil and Gas Group (PVN) revealed that in 2021
four of its plants were taken off the list of 12 large-scale lossmaking
plants in the industrial and commercial sector.
These four plants include the Dinh Vu polyester plant
under Viet Nam Petrochemical and Fiber JSC (VNPOLY) and Dung Quat bioethanol
plant under Central Petroleum Biofuel JSC.
DAP-1 Hai Phong under DAP VINACHEM JSC was another
plant that did quite well last year.
DAP-1 Hai Phong produced its first fertiliser batch in
April 2009. It made the first loss of VND461.8 billion ($20.4 million) in
2016 and found itself among the 12 ailing plants of the industrial and
commercial sectors.
After restructuring, the plant began to operate
profitably and had its name removed from the list. By late Q3 2021, its
earnings hit around VND158 billion ($7 million), 232 per cent higher than the
full-year target. Eleven-month output reached 239,362 tons, up 31 per cent
compared to 2020.
It is also worth noting that the Government has urged
agencies to clear all the backlogs to have Thai Binh 2 thermal plant
connected to the national power grid in 2022.
Thai Binh 2 is an unfinished billion-dollar project
that incurs a daily expense of billions of dong to the State Budget to
service its debts. The project began construction in March 2011 but was
unable to finish after ten years. Its financial burden caused public dismay.
“Generator Number 1 will connect to the power grid on
May 19, 2022. Coal combustion starts on June 16 and power generation in
Number 1 begins on November 30. Generator Number 2 follows suit on December
31,” said the manager in charge of the project.
Currently, the overall project is 87 per cent complete,
construction 85 per cent and design 100 per cent. The number of workers
employed on the ground stays at 459, the manager added.
Thai Binh 2 power plant is expected to add 1,200
megawatts of power to the national grid.
Securities companies report record
profits
Securities companies reported huge revenues and profits
last year on the back of impressive growth by the stock market.
SSI Securities Corporation achieved revenues and
pre-tax profits of VND7.77 trillion (US$342 million) and VND3.33 trillion
($146.57 million), increases of 71.7 per cent and 112.6 per cent from 2020.
Viet Capital Securities reported profit before tax of
VND1.85 trillion ($81.43 million) on net revenues of VND 3.73 trillion
($164.18 million), 95 per cent and 115 per cent up.
Viet Dragon Securities Corporation said its revenues
were 123 per cent up at nearly VND1.04 trillion and pre-tax profit wasVND
534.9 billion, 185 per cent up.
Agribank Securities Corporation and KB Securities Vietnam
JSC and Tecom Securities also reported higher profits.
Despite being affected by the COVID-19 pandemic, the
stock market saw a record year. The VN-Index repeatedly rose to new highs,
market capitalisation rose sharply, liquidity continued to rise after
starting in 2020, and the number of investors exploded.
S.Korean firms keen to enhance
investment in HCMC
Many South Korean enterprises have chosen HCMC as a
destination to develop their business and will increase their investment in
the city in the coming years, said South Korean Ambassador to Vietnam Park
Noh Wan.
At a meeting with HCMC Chairman Phan Van Mai on January
21, Park said South Korea was interested in the HCMC market and would hold a
seminar to promote investment, trade and technology development in HCMC with
the participation of 50 South Korean businesses.
South Korean firms which have been operating in HCMC
also have plans to expand their operations in the city. A representative of
CJ Group said the firm would develop a large industrial and cultural complex
in Tan Phu District.
Park also mentioned some difficulties facing South
Korean investors in HCMC. Specifically, after the city brought the pandemic
under control, many firms sought to send their experts and technicians to
Vietnam, so Park proposed the HCMC government ease regulations to facilitate
foreign firms.
He added that when representatives of South Korean
companies come to the city, they tend to bring along their families.
However, the international school in District 7, where
many South Korean people live, is overcrowded, so the city should make
conditions easy to expand the school.
Work starts on Dien Bien airport
expansion project
The Airports Corporation of Vietnam (ACV), the Ministry
of Transport and the government of the northern mountainous province of Dien
Bien today, January 22, began work on a project to expand the Dien Bien
Airport, which costs over VND1.4 trillion.
The airport will be upgraded to receive larger aircraft
such as Airbus A320s and A321s and the like. The current runway will be
expanded from 1,830×30 meters to 2,400×45 meters, the local media reported.
In addition, the passenger terminal will be upgraded to
have two floors, with the first floor serving passengers arriving at the airport
and departing from the airport and the second floor for lounges, trade and
auxiliary services. The terminal’s capacity will be increased from 300,000 to
500,000 passengers per year.
The investment for the airport expansion project will
be sourced from ACV’s budget, while site clearance will cost nearly VND1.6
trillion, sourced from the Dien Bien province’s budget. The project is
expected to be completed in the third quarter of 2023.
Axis road project in Soc Trang gets
off the ground
The construction of an axis east-west road project
running through Soc Trang Province began today, January 21, with a total
investment of around VND2 trillion.
The 57-kilometer route will start from Nga Nam Town,
pass through the districts of My Xuyen and Tran De, and end at Vinh Chau Town
in the Mekong Delta province. At nine meters in width, the two-lane route
will allow vehicles to travel at a maximum speed of 60 kilometers per hour.
Of the total investment, construction costs will
account for VND1.5 trillion, while the cost for resettlement exceeds VND220
billion. The project is slated for completion by mid-2025.
The route will connect Soc Trang with the neighboring
provinces of Hau Giang, Bac Lieu and Ca Mau in the delta, promote trade at
the Tran De Port as well as wind power projects in Vinh Chau Town, said a
representative of the Project Management Unit 2 in Soc Trang, which is the
project’s investor.
U.S. spends US$96 billion on imports
from Vietnam in 2021
The United States remained Vietnam’s largest importer
in 2021, with an import value of over US$96.2 billion, up 24.9% year-on-year,
according to statistics from the General Department of Vietnam Customs.
Last year, the United States imported smartphones and
accessories worth a total of nearly US$9.7 billion from Vietnam, rising by
10.3% year-on-year, while the former was the latter’s largest importer of
computers, electronics products and accessories, with a value of US$12.7
billion, up 23% against the previous year.
In addition, the United States’ imports of machinery,
equipment and components from Vietnam last year soared by 45.9% year-on-year,
at US$17.8 billion.
The United States took the lead in apparel imports from
Vietnam at US$16.1 billion in 2021, and spent US$8.8 billion buying wooden
products from the latter, up 22.4% against 2020.
Meanwhile, the United States shipped goods worth
US$15.3 billion to Vietnam in 2021, up 11.4% against 2020. Vietnam enjoyed a
trade surplus of over US$81 billion with the United States in 2021.
FDI rebound is key to economic
growth in 2021
The Ministry of Planning and Investment reported that
foreign investment inflows reached US$ 31.15 billion in 2021, representing a
year-on-year increase of 9.2%.
Specifically, the country granted licenses to 1,738 FDI
projects with a total registered capital of US$ 15.25 billion, down 31.1% in
number but up 4.1% in value. As many as 985 projects increased investment
capital by US$ 9.01 billion, up 40.5%.
Meanwhile, the amount of FDI disbursement hit US$ 19.74
billion, a year-on-year decline of 1.2%.
The FDI sector also gained a trade surplus of nearly
US$ 28.5 billion, contributing to offsetting the trade gap of the domestic
sector.
Noticeably, Viet Nam attracted a series of large-scale
FDI projects including Long An Power Station Project (US$ 3.1 billion), LG
Display Hai Phong's project (adding US$ 2.15 billion), and a US$1.6-billion
semiconductor plant of Amkor Technology.
In 2022, Viet Nam will continue to pursue selective FDI
attraction policies which focus on quality of projects, said Minister of
Planning and Investment Nguyen Chi Dung.
Viet Nam will enable investment in the high-tech sector
and source technology so that the FDI sector would make greater contribution
to structure transformation and economic modernization.
Gov’t extends payment deadlines for
US$5.3 billion worth of land rental fees in 2021
The Vietnamese Government in 2021 extended the payment
deadlines for VND121 trillion (US$5.3 billion) worth of land rental fees for
businesses and individual households affected by the pandemic.
Businesses eligible to these programs are of micro,
small and medium-size, said Phung, adding the extension of payment deadlines
of taxes and fees also subject to foreign banks and credit institutions
providing support for enterprises and people affected by the pandemic.
Data from the MoF revealed nearly VND130 trillion
($5.74 billion) in land rental fees were waived or had payment deadline
extended in 2020, including around VND31.5 trillion ($1.4 billion) being
waived for businesses and VND97.5 trillion ($4.3 billion) whose payment
deadlines extended.
In 2021, the Government decided to extend the validity
of the program and expand its scope to help enterprises and people cope with
the Covid-19 pandemic.
The MoF also pushed for greater administrative reform efforts
to aid taxpayers, including the removal of 30 fees and expenses for
businesses worth a total of VND1 trillion ($44.2 million).
Hanoi to push for comprehensive
digitalization in 2022
Hanoi plans to push for a comprehensive digitalization
in every public department and unit and eventually to every socio-economic
activity in 2022.
Vice-Chairman of the Hanoi People’s Committee Chu Xuan
Dung gave the remarks at a conference held by the municipal Department of
Information and Communications to discuss the objectives set for 2022 on
January 21.
To realize this goal, Dung called for the Department to
accelerate the formation of the e-government model and the digital
transformation program in the capital city in the 2021-2025 period, along
with the proposal of making Hanoi a smart city by 2025, with a vision to
2030.
In this regard, Dung expected a strong development of
information and communication technologies would serve as the foundation for
the establishment of Hanoi’s e-government.
At the meeting, Vice Director of the Hanoi’s Department
of Information and Technology Nguyen Viet Hung said IT application has been
one of Hanoi’s main instruments in pushing for both Covid-19 containment and
socio-economic recovery in 2021.
As of December 31, 2021, Hanoi is home to nearly 8,500
IT companies. Last year, the city’s IT sector posted combined revenue of
VND321.3 trillion ($14.2 billion) and created jobs for 189,500 people.
More than VND200 trillion of loans
on stock market
According to the Vietnam Securities Depository (VSD),
outstanding loans (mainly margin loans) on the stock market by the end of
2021 were about VND193 trillion (equivalent to US$8.4 billion).
If including third-party loans, the outstanding loan
balance on the stock market would be more than VND200 trillion.
Accordingly, the outstanding loans of securities
companies at the end of 2021 increased by about VND100 trillion compared to
the previous year. Some securities companies had high margin loans at the end
of 2021, such as SSI with nearly VND23.7 trillion, Mirae Asset with more than
VND17.28 trillion, TCBS with more than VND15.85 trillion, VNDirect with more
than VND15.47 trillion, and HSC with VND13.69 trillion.
According to the VSD, the number of new securities
accounts opened by domestic investors in 2021 hit a record, with more than
1.5 million accounts, much higher than the total number of new accounts
opened in many previous years.
Vietnam striving to regain foothold
for pepper industry
Vietnam is seeking ways to revive the billion-dollar
pepper industry which has been struggling against unfavorable weather
conditions and the Covid-19 pandemic for over the last several years.
The Vietnam Pepper Association (VPA) is considering
importing pepper from neighboring countries to ensure sufficient supply for
domestic processing, according to Chairman Nguyen Hai Nam. Last year,
Vietnam’s pepper imports from Cambodia soared 111 percent compared to 2020,
he said.
Pepper output in Cambodian provinces bordering with
Vietnam can reach 30,000 tons per year. Despite the fact that the number only
accounts for one-tenth of Vietnam’s output, it can help ease the shortage in
the coming time.
Data from the VPA shows that pepper was sold at
VND90,000 (US$3.98) per kg last year, almost doubling the previous year’s
VND48,000 per kg, after constant reduction over the last few years.
In 2021, Vietnam exported 260,000 tons of pepper for
some $950 million, down 9 percent in volume and up 44 percent in value
against 2020.
Reference exchange rate down 15 VND
at week’s beginning
The State Bank of Vietnam set the daily reference
exchange rate for the US dollar at 23,062 VND/USD on January 24, down 15 VND
from the last working day of previous week (January 21).
With the current trading band of +/-3 percent, the
ceiling rate applicable to commercial banks during the day is 23,754 VND/USD
and the floor rate 22,370 VND/USD.
Lam Dong sets to welcome 5 million
visitors in 2022
The Central Highlands province of Lam Dong eyes to
welcome 5 million visitors, including 150,000 foreigners, this year, heard at
the conference held by the provincial Department of Culture, Sports and
Tourism on January 23.
To this end, the province plans to restore some
traditional festivals of local ethnic minority groups and launch various new
tourism products, such as adventure tours in Tuyen Lam Lake in the resort
city of Da Lat and Bidoup Nui Ba National Park, and healthcare, camping and
glamping tours in Da Lat.
It will also introduce a week-long travel festival this
year and develop Da Lat as a smart tourism city.
Lam Dong has received a large number of vacationers at
the end of last year, signaling a good start for the industry recovery in
2022, said Deputy Director of the provincial Department of Culture, Sports
and Tourism Nguyen Thi Bich Ngoc.
The province will not only improve its service quality
and create new products but also provide visitors with the best conditions
when it comes to COVID-19 rules, given the relatively high vaccine coverage,
she said.
Vietnam exports over 453 million
medical maks in 2021
Vietnam exported a total of 453.1 million medical face
masks of all kinds in 2021, according to the General Department of Vietnam
Customs (GDVC).
With 44.8 million pieces sold to foreign markets last
December, down 8.6 percent against the previous month, the export declined
after rising for four consecutive months.
The masks were shipped abroad by 12 businesses.
More than 1.37 billion medical face masks were shipped in 2020, with the peak
coming in June that saw over 236 million pieces exported.
Civil construction to benefit from
public investment wave
Civil construction is likely to be one of the sectors
that enjoy direct or indirect benefits from the Government’s public
investment wave, according to insiders.
A report by Mordor Intelligence showed that Vietnamese
construction market value reached 57.5 billion USD in 2020 and is expected to
hit 94.9 billion USD in 2026, with an annual growth rate of 8.7 percent in
the 2021-2026 period. The sector made up 8 percent to the country’s growth on
the average in the past 10 years, it said
Meanwhile, the General Statistics Office revealed that
in 2021, the production value of the sector topped 1.9 quadrillion VND (83.6
billion USD), up 5.1 percent year on year despite COVID-19 impacts.
In the coming time, public investment will be a great
resource that the Government pours into infrastructure projects to promote
growth and support economic recovery.
In 2022, the Ministry of Transport is allocated the
largest ever middle-term public investment captial amount of over 50 trillion
VND. In the next five years, it plans to implement 67 new projects, including
12 ones belonging to the North-South Expressway.
Vietnam-China trade enjoys strong
growth in 2021
Bilateral trade between Vietnam and China still
recorded strong growth in 2021, despite the negative impacts of COVID-19 on
global trade, according to Vietnamese commercial counsellor in China Nong Duc
Lai.
He cited data from Vietnam’s customs, stating that
two-way trade reached 165.8 billion USD in 2021, up 33.5% from a year
earlier, while data according to China’s customs showed that bilateral trade
exceeded the 200 billion USD mark for the first time, reaching 230.2 billion
USD, up 19.7% from 2020.
With such figures, China continues to be Vietnam’s
largest trading partner and second largest export market, while Vietnam was
China’s largest trading partner in ASEAN and its sixth largest trading
partner in the world.
According to Lai, the bright spot for bilateral trade
in 2021 was the high growth rate of 33.5% according Vietnam’s statistics and
20% according to China’s data.
These figures demonstrate the stability in trade
between Vietnam and China despite the difficulties due to coronavirus
restrictions over the past few years.
Six Vietnamese sectors obliged to
keep greenhouse gas inventories
The energy, transportation, construction, industry,
agriculture, and waste sector are now legally required to establish and
report their greenhouse gas (GHG) inventories to relevant authorities since
January 18.
Deputy Prime Minister Le Van Thanh has signed Decision
No.01/2022/QĐ-TTg on the list of sectors and facilities subject to greenhouse
gas (GHG) inventories, effective since January 18.
Accordingly, the list includes the six aforementioned
sectors and hundreds of facilities. The facilities include 1,662 in the
industry and trade sector, 70 facilities in the transport sector, 104 in the
construction sector, and 76 in the natural resources and environment sector.
Accordingly, the facilities must carry out GHG
inventories and provide related information for the Ministry of Natural
Resources and Environment (MoNRE) about the total energy consumption and
working capacity, which the MoNRE will gather and produce reports for the
prime minister.
Seaports handle over 60 million
tonnes of goods in January
Vietnam’s seaports are projected to handle more than 60
million tonnes of goods in the first month of 2022, equivalent to the same
period last year, announced the Vietnam Maritime Administration (VMA).
The total volume of container cargo going through
seaports is estimated to hit 2 million TEUs in the period.
The expansion of the containers shipping market, which
is forecast to last until the end of this year, along with a trend in raising
vessels’ capacity, will open up major opportunities for Vietnam’s seaports,
notably gateway ones of Cai Mep-Thi Vai in Ba Ria-Vung Tau southern province
and Lach Huyen in the northern port city of Hai Phong, said Tran Khanh Hoang,
Vice Chairman of the Vietnam Seaports Association.
Source:
VIR/VNS/VNA/VOV/SGT/SGGP/Hanoitimes
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