VIETNAM BUSINESS NEWS MARCH 4
09:00
Retail sales of goods,
services up 1.7 percent in January – February The total retail sales of consumer
goods and services in the first two months of 2022 posted a year-on-year
increase of 1.7 percent, hitting 876 trillion VND (over 38.35 billion USD),
according to the General Statistics Office (GSO). Of which, retail sales of goods
expanded by 3.1 percent, with significant growth seen in multiple groups,
including cultural and educational items (12.7 percent), food and foodstuff
(9.0 percent), and vehicles (4.3 percent). Meanwhile, revenue of clothing and
household appliances respectively shrank 8.1 percent, and 9.1 percent. Due to increased demand for food on
the occasion of the Lunar New Year festival in early February, the prices of
food surged at some points of time but then returned to the pre-Tet level.
Prices of energy and fuel products have also tended to increase following the
global price trend. Hai Phong has new logistics
centre KM Cargo Services (KMCS), a new
logistics centre covering an area of two hectares, has been established at
Dinh Vu Industrial Park in Hai An District, the northern port city of Hai
Phong. It is a joint venture among harbour
operator Port of Hai Phong JSC, Sao A D.C Investment JSC from Viet Nam and
marine transport company Korean Marine Transport Co Ltd with registered
capital of VND34.8 billion (US$1.5 million). The centre is located at Dinh Vu
Industrial Park which houses a large number of factories and is near Hai
Phong’s largest ports, such as Tan Vu and Dinh Vu. Travel to the facility by
road is also easy as it is situated near the Ha Noi-Hai Phong Expressway and
just 3km from Cat Bi International Airport. Market extends rallies on
pillar stocks The stock market inched higher in the
last minutes of Monday morning trading, boosted by gains in some large-cap
stocks. On the Ho Chi Minh Stock Exchange
(HoSE), the VN-Index rose slightly 0.85 points, or 0.06 per cent, to 1,505.85
points. The index opened the session on a
positive note, then reversed course, down 1.09 points, on the strong selling
force of many pillar stocks. However, the benchmark ended the morning higher
as rallies in some blue-chip stocks overweighed selling pressure. The market breadth was positive, with
252 stocks climbing, while 202 declined. Liquidity remained at a high level
as more than 579.4 million shares were traded on HoSE, worth over VND18.8
trillion (US$824.4 million). Gains in some large-cap stocks drove
the index's uptrend. The VN30-Index, tracking the 30 biggest stocks in market
capitalisation on the southern bourse, edged higher despite there being more
stocks decreasing. The VN30-Index increased by 1.91
points, or 0.13 per cent, to 1,524.4 points. In the VN30 basket, ten stocks
jumped, while 19 slid, and one ended flat. On the Ha Noi Stock Exchange (HNX),
the HNX-Index also extended gains, up 1.83 points or 0.41 per cent, to 451.14
points. Demand for insurance remains
high in Viet Nam Two years after the COVID-19 outbreak
began in Viet Nam, people believe the end is in sight and they are in good
shape healthwise, but concerns around personal finances remain, particularly
among single women, according to new research from Manulife. Manulife did the third Asia Care
Survey, and more than two thirds (69 per cent) said it would be gone within a
year and 77 per cent expected restrictions to be lifted within that timeframe. Vietnamese had the most optimistic
outlook in the region, including about the time it will take for the economy
to recover with just a quarter (26 per cent) fearing it would take a long
time, the lowest in the region. The survey was done just as the Omicron
variant was starting to spread. Despite the generally sanguine
outlook, 15 per cent said they had experienced job loss and 70 per cent said
their income had fallen as a result of COVID. Only 19 per cent of single women had
savings on hand to last more than a year, well below the 33 per cent national
average. It also found that three quarters (75 per cent) of single women were
struggling to cope with COVID. SoPa acquires Handycart Society Pass Incorporated (SoPa), a
leading Southeast Asian data-driven loyalty platform, announced that it had
acquired the Ha Noi based Dream Space Trading Company Limited, the operator
of Handycart, a leading online grocery delivery platform. The newly acquired company will be
integrated into SoPa’s F&B delivery vertical with SoPa’s existing
merchant software platform #HOTTAB. Handycart founder and CEO, Seo Jun Ho,
has been named Head of the new Business Unit, managing Handycart and #HOTTAB
in Viet Nam. Founded in 2019, Handycart is an
online grocery delivery app with a fleet of delivery vehicles that focuses on
servicing the Korean restaurant market and F&B sector in Ha Noi. Finance Ministry proposes
reducing environmental protection tax on fuel The Ministry of Finance has proposed
reducing the environmental protection tax by VND500-1,000 on each liter of
fuel until the end of this year to absorb the fuel price surge. The ministry has announced a draft
resolution on adjusting the environmental protection tax on fuel, except
aviation fuel. Related agencies are requested to give feedback on the
resolution no later than March 4. The ministry proposed cutting the
environmental protection tax from VND4,000 to VND3,000 per liter for
gasoline, except ethanol, and from VND2,000 to VND1,500 per liter or kilogram
for diesel oil, heavy fuel and lubricating oil. Besides, the environmental protection
tax would be halved from VND1,000 to VND500 per liter for kerosene, and from
VND2,000 to VND1,500 for lubricant grease. According to the Finance Ministry, if
the tax cut is applied from April 1 until the end of this year, the State
budget would lose some VND12 trillion, including value-added tax. However, the ministry said fuel is the
input of most industries, so cutting the environmental protection tax on fuel
will help reduce production costs. Trade Ministry says fuel
supply adequate until end-Mar Do Thang Hai, Deputy Minister of
Industry and Trade, confirmed this at a Government press briefing yesterday,
March 3, amid concerns over fuel undersupply in the country and many local
gas stations having to shut down over inadequate fuel replenishment. The fuel supply from domestic
production meets 70-75% of the demand, even up to 80% sometimes. Domestic
fuel production mainly comes from the Dung Quat and Nghi Son refineries. In early January, due to financial
woes, Nghi Son Refinery and Petrochemical LLC cut the output of its refinery
to 80% and the refinery is now operating at 55-60% capacity. This has
affected the domestic fuel supply, as the volume of fuel supplied to local
fuel wholesalers under signed contracts declined. To make up for the fuel shortage after
the Nghi Son Refinery cut its production capacity, the Dung Quat Refinery had
to increase its capacity to 105%. However, the 5% increase has yet to make up
for the fuel shortage. Regarding a scenario of domestic fuel
supply in the upcoming time, Hai said the ministry had asked 10 fuel
wholesalers with a major market share to import an additional 2.4 million
cubic meters of fuel in the second quarter. The move is aimed at ensuring a
sufficient fuel supply for local use even if the Nghi Son Refinery’s output
fails to meet the market demand after May. Vietnam to export two million
tonnes of coal this year The Ministry of Industry and Trade
(MoIT) has licensed the Vietnam National Coal-Mineral Industries Holding
Corp., Ltd. (Vinacomin) and Dong Bac Corporation to ship abroad more than two
million tonnes of coal this year. Vinacomin is allowed to export up to
1.2 million tonnes of coal dust and 800,000 tonnes of lump coal, while Dong
Bac, a business run by the Ministry of Defense, is set to export up to 30,000
tonnes of lump coal. As a result, the total amount of coal
exported by the two enterprises this year will increase by nearly half a
million tonnes compared to 2021. Last year both Vinacomin and Dong Bac
were allowed to ship abroad 1.55 million tonnes of coal. Oil and petroleum products
imports in Feb three times higher than ordinary months Vietnam imported 1.45 million cubic
meters of oil and petrolem products in February, three times higher than the
ordinary months amid global oil market uncertainties, according to the
Ministry of Industry and Trade. The ministry said the surging imports
helped ensure a sufficient supply of oil and petrolem products in the first
quarter of 2022. The ongoing Russia-Ukraine military
conflict, supply chain disruptions caused by the Covid-19 pandemic and
increasing demand for fuels among countries to boost economic recovery have
led to oil prices surging. In late January, the Ministry of
Industry and Trade asked fuel traders to take immediate action to replenish
fuel stockpiles, especially at a time when domestic fuel production is
falling. The ministry also assigned 10
wholesale fuel firms to import 2.4 million cubic meters of petrol and oil in
the second quarter of 2022 to secure supply in the local market. Electronics producer adds
over 305 mln USD in investment to Bac Ninh facility The northern province of Bac Ninh on
March 3 officially licensed electronics manufacturer Goertek Vina a to raise
its investment in its facility at Que Vo Industrial Park to 565.7 million USD
from 260 million USD. According to Goertek Vina CEO Yoshinaga
Kazuyoshi, the company, which produces electronic devices, network equipment
and multimedia audio products, now employs over 30,000 workers. Last year,
its revenue rose by 20.4 percent to 3.28 billion USD despite COVID-19. Bac Ninh raked in more than 1.3
billion USD in foreign direct investment (FDI) in the first two months of
this year, making it the country’s largest FDI recipient during the period. Vietjet joins hands with
Tourism Authority of Thailand (TAT) to promote tourism recovery Thai Vietjet, an affiliate of
Vietnamese budget airline Vietjet Air, in collaboration with the Tourism
Authority of Thailand (TAT), has signed a Letter of Intent (LoI) for
cooperation in the field of tourism as strategic partners in implementing
joint marketing activities, to promote and increase the number of inbound
tourists, specifically from Vietnam and Cambodia markets, to Thailand. The agreement was developed as a
result of relentless efforts and successful actions together for tourism
promotion in domestic and international markets, with aims to collaborate and
create joint promotional activities, and also to organise joint agent and
media familiarization trips to Thailand and share travel and tourism
information that contribute to the recovery of aviation and tourism industry
in the soonest time. Reference exchange rate up 8
VND on March 4 The State Bank of Vietnam set the
daily reference exchange rate for the US dollar at 23,151 VND/USD on March 4,
up 8 VND from the previous day. With the current trading band of +/- 3
percent, the ceiling rate applicable to commercial banks during the day is
23,845 VND/USD and the floor rate 22,457 VND/USD. Vietnamese firms join largest
event for professional online sellers Fourteen Vietnamese firms recently
showcased their products at the "White Label World Expo London
2022", which was the UK’s largest event for professional online sellers. The event, held on March 2-3 at the
Excel convention centre in London, attracted 500 businesses and 7,000
visitors. It offered a major opportunity for Vietnamese firms to promote
their products, and seek business partners and export chances to the UK and
Europe. At the expo, Vietnamese firms and
their UK partners signed three strategic economic cooperation agreements
totalling 300 million GBP (400.45 million USD). They comprised an agreement on credit
support for Vietnamese exporters, another on legal assistance for firms
joining the UK and European markets, and one on the provision of tourism
services on a cruise ship in the UK. Vietnam’s manufacturing
recovery continues in February In a report released on March 1, IHS
Markit said the Vietnam Manufacturing Purchasing Managers' Index (PMI) posted
54.3 in February, up from 53.7 in January and signalling a pick-up in growth
for the fourth month running. Business conditions have now improved
in each of the past five months following the disruption caused by the Delta
wave of the COVID-19 pandemic in 2021. According to the report, the improving
growth momentum overall was again supported by stronger customer demand. New
orders increased sharply and the rate of expansion quickened to a ten-month
high. Improving international demand was also reported in February, helping
lead to another marked rise in exports. Higher new orders and stable business
conditions contributed to a fifth successive increase in manufacturing
production. As was the case with new business, the rate of expansion in
output was the most marked since last April. Hopes of continued new order growth
should the COVID-19 pandemic be brought under control supported optimism in
the year-ahead outlook for production, with more than half of respondents
expecting output to increase over the coming year. Ministry looks to address
hurdles in agro-exports to Russia, Ukraine The Russia-Ukraine tension may deliver
a major blow to agricultural trade between Vietnam and both the countries,
the Ministry of Agriculture and Rural Development (MARD) said. The trade will be affected by Russia
being disconnected from the SWIFT payment system, the disruption of the
supply chain in export-import as major shipping companies have suspended
their service to Russia, rising transport cost, and declining demand in Russia,
Ukraine and related countries. Vietnam exported about 550 million USD
worth of agro-forestry-aquatic products to Russia last year. Of the figure,
coffee export raked in 173 million USD and aquatic products 164 million USD. Furthermore, Vietnam imported input
materials for agricultural production from Russia and Ukraine such as wheat,
maize and fertiliser. The country purchased about 500 million USD of
agro-forestry-aquatic products from Russia last year. The MARD will closely join hands with
trade associations and the State Bank of Vietnam to support payments for
businesses whose products have already been sent to Russia but payment is
being affected by stagnant financial transactions, the official added. HCM City steps up
communications to promote tourism Ho Chi Minh City's Department of
Tourism on March 3 announced a draft communications plan to promote a vibrant
southern destination on domestic and international media platforms this year. Accordingly, with a highlight on the
theme of Vibrant Ho Chi Minh City, the plan is expected to popularise local
destinations, people, cultural identities, products, and cuisine, targeting
domestic and foreign visitors. It features the production of television
commercials and under-60-second films about local destinations and tourism
products; the appointment of a tourism ambassador; and advertisements on
international media channels. Regarding the city’s welcoming of
foreign tourists, director of the department Nguyen Thi Anh Hoa said a number
of solutions have been prepared for the implementation of specific programmes
in line with the Government’s tourism reopening direction in the coming time. VN moves towards cashless
society National Payment Corporation of Viet
Nam statistics show that around 1.86 billion cashless payment transactions
worth VND23.6 quadrillion were made in 2021, rising by 169 per cent and 164
per cent, respectively, compared to 2020 and 2019. According to Deputy Minister of
Information and Communications Pham Duc Long, about 50 per cent of the
population do not have bank accounts and most use cash for payments worth
less than VND100,000. The project on the development of
cashless payments in Viet Nam for 2021-25 is creating a crucial legal
framework for the development of the cashless payment ecosystem. Governor of the State Bank of Viet Nam
Nguyen Thi Hong said that the central bank would improve the legal framework
on cashless payment and fintech sandboxes to promote cashless payment. In addition, the infrastructure will
be improved to enable linkage between banks and payment intermediaries with
goods and services providers ensuring instant processing and round-the-clock
operation. Textile and garment industry
focuses on domestic market With nearly 100 million people, the
domestic market is considered fertile land for textile enterprises to boost
production and dominate the market. However, in the face of increasingly
fierce competition from major fashion groups globally, domestic enterprises
need to have a roadmap and direction to avoid losses at home. Textile and garment enterprises have
mainly focused on exports and have not paid much attention to the domestic
market. Facing difficulties caused by the
pandemic, especially when the export market declined, businesses have boosted
investment in researching, changing product structure and promoting market development. The Viet Nam Textile and Apparel
Association will continue to accompany the business community on counterfeit
goods by linking with market management agencies and mobilising consumers
through communication channels. Source: VNA/SGT/VIR/VNA/VNS/SGGP |
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