VIETNAM BUSINESS NEWS MARCH 14
15:03
Gov’t approves draft
resolution on environmental protection tax on petrol The Government has passed a draft resolution on the environmental protection tax rates on gasoline, oil and lubricants, which will be submitted to the the National Assembly Standing Committee for approval on March 14. Under the draft, the Ministry of Finance
proposes to cut the tax rates for gasoline by 2,000 VND (0.088 USD) per
litre; diesel, fuel oil, and lubricant by 1,000 VND per litre; grease by
1,000 VND per kg; and kerosene by 700 VND per litre. The ministry recommended that the
resolution should take effect from April 1 to December 31, 2022. With the adjustments, the estimated
amount of environmental tax on the products will reduce by over 29 trillion
VND (1.26 million USD) per year, leading to a fall in the State budget
collection. Shares to continue downward
trend amid Ukraine conflict The market benchmark VN-Index on the
Ho Chi Minh Stock Exchange (HoSE) declined 0.85 per cent to close Friday at
1,466.54 points. The index had declined 2.58 per cent last week. An average of 896 million shares were
traded on the southern exchange during each session last week, worth VND29
trillion (US$1.3 billion). According to Vietcombank Securities
Limited Company (VCBS), the sharp drop in Viet Nam’s stock market last week
was also in line with the general trend of stock markets in the world, as it
was mainly affected by the Russia-Ukraine conflict. The liquidity of each session last
week and the whole week’s liquidity decreased, showing that the cash flow is
still choosing to stay out of sight. In general, the market still witnesses
divergence, with stocks benefiting from the escalation of commodity prices on
the international market, going against the movement of the general index and
large-cap group. VCBS recommends that investors can
take advantage of the downward correction to disburse with a small
proportion, in order to gradually accumulate target stocks that are being
traded at discounted price ranges for the medium and long-term portfolio. According to SSI Securities Joint
Stock Company (SSI), at the end of last week, the VN-Index broke through the
support level of 1,470 points. With the above developments, the VN-Index is
likely to continue correcting to the first support zone at 1,445 - 1,450
points and the next strong support zone at 1,425 - 1,400 points. However, SHS is still optimistic about
the market's prospects in the long term as Viet Nam's macroeconomy is still
stable compared to other countries in the world. Prime Minister requests PPP
facilitation for Van Phong EZ development Prime Minister Pham Minh Chinh on
March 12 demanded favourable mechanisms be issued to facilitate public -
private partnership (PPP) in infrastructure building, so as to boost the
development of the Van Phong Economic Zone (EZ). Established in 2006, the Van Phong EZ
is located in Van Ninh district and Ninh Hoa town of central Khanh Hoa
province. It is a multi-sectoral EZ with an
international container port, an oil refinery industry, and a point of
transit for petroleum and petroleum products playing the key role. It also
includes tourism, services, industry, aquaculture, and other economic
sectors. Van Phong serves as the economic centre of Khanh Hoa, an investment
magnet, and a driving force for economic development in neighbouring areas. As of 2021, it attracted more than 150
investment projects with registered capital totaling over 4 billion USD,
including over 120 domestic projects and 30 foreign ones. Most of the nearly
100 projects already operational are small ones. Improving business
environment, the key to economic growth Continuing to improve the country’s
business environment and viewing it as the "key" to economic
recovery and growth in the new normal are strong messages given by
organizations and the business community at the recent Vietnam Business Forum
(VBF). Acknowledging the nation’s efforts in
improving the local business environment in recent times, Amy Luinstra,
acting country director of the International Finance Corporation (IFC), said
that despite facing complicated developments relating to the COVID-19
pandemic, Vietnam still recorded remarkable achievements. These can be seen
through its improvements of the business environment and the overall
competitiveness of enterprises. Alain Cany, chairman of the European
Chamber of Commerce in Vietnam (EuroCham), emphasised that more than 1,200
EuroCham members all gave optimistic signals for the nation’s "new
normal", as shown through the business climate index of EuroCham (BCI)
which increased from 42 points to 61 points in January. John Rockhold, chairman of the
American Chamber of Commerce in Vietnam (AmCham Vietnam), said the most
important factor in creating a favourable business environment, as well as
maintaining the supply chain is that the legal environment that must be fair,
transparent, and requires innovation. According to Pham Tan Cong, chairman
of the Vietnam Chamber of Commerce and Industry (VCCI), as a means of
contributing to realising the goals and effectively implementing the tasks
and solutions set out by the Government, the VCCI has proposed that the
Government facilitate enterprises’ access to information, policies, and
regulations. This can serve as a way of helping them to access capital in
order to restore production and business activities. This is forecast to be an important
premise for the Vietnamese economy to recover and make further breakthroughs
moving forward. Vietnam seeks US investment
in renewable energy Energy is among potential fields for
investment cooperation between Vietnamese and US firms, with Prime Minister
Pham Minh Chinh announcing that Vietnam gives high priority to sustainable
energy development to maintain national energy security and reduce greenhouse
gas emissions. Director of the Ministry of Industry
and Trade’s Department of Electricity and Renewable Energy Hoang Tien Dung
noted Vietnam has set a target that by 2030, renewable electricity will
account for 45 percent of the national power generation capacity, reflecting
its orientation towards renewable energy. The implementation of the power source
and grid development programme will cost an estimated 14 billion USD, so
Vietnam needs the participation of businesses, especially those from the US,
in resources and technology sharing. Ken Haig, Head of Energy and
Environment Policy for Asia-Pacific & Japan at Amazon Web Services (AWS),
suggested to boost investment attraction in the sector, Vietnam needs a
long-term strategy. Kris Karafa, Chief Operating Officer
at Gen X Energy, said the firm is willing and ready to pour capital into wind
power projects, particularly offshore ones. Gen X Energy has partnered with
Binh Thuan province in many renewable energy projects. Up to 83.3 percent of FAST500
firms optimistic about 2022 outlook Some 83.3 percent of the 500
fastest-growing companies in Vietnam (FAST500) are optimistic about the
outlook and growth opportunities of the domestic market this year, given that
the economy is on course to recover to the pre-pandemic level, according a
recent survey conducted by Vietnam Report. Some 89.2 percent of them are planning
to expand business while 86.5 percent said they have contingents of
highly-qualified, experienced and disciplined personnel, the survey shows. About 67.6 percent of the survey
companies are confident about their competitive edge as they boast good
relations with partners and customers, and high-quality and
competitive-priced products. Around 62.2 percent show changes in
their awareness of the strong wave of digital transformation in all areas,
and that they must have clear visions and business strategies to catch up
with the market trends. The survey also reveals that FAST500
expects this year, the government will continue stabilising the
macro-economy, keeping inflation under control, expanding trade promotion,
launching more support packages and accelerating public administrative
reforms, so as to facilitate their business activities. They also hope that government will
build a better business environment and help unleash more potential resources
to provide momentum for sustainable growth. Hanoi supports human
resources development serving tourism The Hanoi Department of Tourism will
support human resources development to meet tourism recovery requirements in
the capital city, according to director of the department Dang Huong Giang. The issue is considered one of the key
tasks of the municipal tourism sector now that local travel agencies are
seeking to resume their activities. Due to the COVID-19 pandemic, many
firms had to stop operating. Most of the workers in the industry, especially
at travel and transportation businesses, have temporarily quit and changed
jobs, causing a sharp decrease in the number of labourers. Over 95 percent of
travel businesses and agents have closed or suspended their operations. For accommodation establishments,
about 1,550 establishments temporarily halted their operation or changed
occupations, causing nearly 21,500 labourers to lose their job temporarily FPT Group gains permission to
build education complex in Ha Nam The People’s Committee of Ha Nam
province on March 13 handed over an investment registration certificate to
FPT Education of the technology service company FPT Group to invest in Nam
Cao University Area in Phu Ly city. Chairman of the provincial People’s
Committee Truong Quoc Huy said that an area of 400ha was earmarked at the
1,000-ha Nam Cao University Area to attract investment from universities. He pledged that local authorities will
create the best conditions for the prompt implementation of the project,
asking relevant agencies to work with the FPT Group to soon complete
administrative procedures. Construction of the 10-ha FPT
UniSchool Ha Nam education complex is set to begin this year and finish one
year later. Upon its completion, the complex is
projected to create about 1,000 jobs in Ha Nam and surrounding localities,
and welcome up to 10,000 students per year. Banks cooperate with
securities firms for expansion The strong development of the stock
market, with rising retail investors and financial investment demand, has
prompted many banks to cooperate with securities firms and fund management
companies to add more cross-selling products. Saigon Commercial Joint Stock Bank
(SCB) has just signed a cooperation agreement with Tan Viet Fund Management
JSC (TVFM) in the field of providing product services, based on the principle
of priority commitment to using each other's products and services, ensuring
effective competition in terms of quality and cost. Meanwhile, TVFM also signed a
cooperation agreement with Tan Viet Securities JSC (TVSI) to cross-sell
traditional products. In the next stage, the parties will proceed to develop
specialised products in line with the business orientations of TVSI, SCB, and
TVFM. Previously, HSBC Viet Nam also
confirmed the strategic cooperation relationship with VinaCapital Fund
Management SJC in connecting retail investors with VinaCapital's fund
certificates. Initially, the cooperation is aimed at supporting HSBC Premier
customers, opening up many opportunities for HSBC's customers to access
investment products. In February, SSI Securities
Corporation (SSI) also announced that it had successfully signed a loan
contract with a limit of VND10 trillion (US$437.1 million) with the Ha Noi
branch of Vietinbank. This is the largest credit line
contract of SSI to date with a joint-stock commercial bank in Viet Nam,
promising to open up a more comprehensive cooperation direction in the future
between the two financial institutions. Another deal attracting attention
recently is the return to the securities sector of VPBank through the
acquisition of more than 97 per cent of stakes in ASC Securities Corporation
and changed its name to VPBank Securities Company. MUFG, Mizuho, SMFG, and Grab
vying to acquire Home Credit Japanese financial behemoths and Grab
have allegedly shown their appetite to acquire Home Credit in Southeast Asian
countries, including Vietnam and India. The three Japanese megabanks
Mitsubishi UFJ Financial Group, Mizuho Financial Group, and Sumitomo Mitsui
Financial Group are reportedly among the eligible candidates for Home
Credit's assets in Southeast Asia and India, cited Bloomberg. Furthermore, according to industry
insiders, the Southeast Asian ride-hailing and delivery giant Grab has
proceeded to the next step of a potential acquisition deal. Home Credit expects its subsidiaries
in Indonesia, Vietnam, the Philippines, and India to be worth between $2
billion and $2.5 billion when they are fully operational. Freight rates to go up 10-30
percent due to surge in price of petroleum The Saigon Newport Corporation
yesterday said that the continuous rise in petroleum price has led to a surge
in the input costs on fuel, freight, loading and unloading at the ports and
Inland Container Depot (ICD). Therefore, the unit would be forced to increase
the container freight rates from ten to 30 percent over the current price
from April 1. Accordingly, the Saigon Newport
Corporation will increase container freight rate by ten percent to the
shipping route from Dong Nai Port to Cat Lai Port, and 30 percent to the
shipping route from IDC to Saigon Newport. In the Mien Dong (Eastern) coach
station, dozens of transport businesses announced to adjust the fee up by 20
percent from the end of March. The enterprises recorded that the number of
passengers recently reduced 50 percent along with the continuous rise in fuel
would spell trouble for the business. Besides, transport businesses at the
Mien Tay (Western) coach station will also perform the price adjustment. A representative of the Ho Chi Minh
City Cargo Transport Association said that its transport units will have to
increase freight rates in the next few days amid the rise in petroleum
prices. Credit growth in HCMC nearly
double national average The State Bank of Vietnam (SBV) Ho Chi
Minh City Branch informed that by the end of February 2022, the total credit
balance of city-based credit institutions was estimated at over VND2.93
quadrillion, up 1 percent compared to the end of January and 3.54 percent
compared to the end of 2021. This growth shows that HCMC's economy has a
quite strong recovery because it is nearly twice as high as the national
average. According to the SBV- HCMC Branch, the
above growth rate is reasonable when production and business activities have
returned to normalcy after the pandemic is under control. At the same time,
policies to support businesses have come into play, bringing positive signals
about socio-economic recovery and growth. Priority credit flows have been
poured into production and business sectors to support business recovery. In addition, commercial banks in HCMC
also focused on supporting businesses with two main groups, including
reducing interest rates and restructuring debts, keeping the debt group
unchanged. By early February 2022, outstanding loans that HCMC-based banks
supported businesses exceeded VND3.2 quadrillion. According to the SBV, the credit of
the whole industry by the end of February 2022 increased by 1.82 percent
compared to the end of 2021, lower than the level of 2.74 percent recorded at
the end of January 2022. Thus, the credit balance in February decreased by
about VND96 trillion compared to January. Online tourism fair to
advertise attractions of Da Nang, Central region An online tourism fair, Da Nang
FantastiCity 2022 promoting destinations and tourist attractions of Da Nang
City and Central region will be held on March 17-23. Travelers can visit the website at
danangfantasticity.com or travelbook.vn/danang to learn about tourist
products that will be offered by domestic travel companies and more than 60
others from countries of Japan, South Korea, China, India and Southeast Asian
nations at over 150 stalls. The event will include many
activities, such as exhibition of online display booths, connection among
businesses, Fantastic Hour promotional program, virtual sightseeing tours and
more. HCMC ready for int’l tourists
post-Covid-19 From March 15, 2022, Vietnam allows
the tourism industry to reopen for international visitors after two years of
lockdown due to Covid-19. The reopening is carried out in
accordance with the direction of the Government and the Prime Minister on
“flexibly and safely adapting, effectively keeping Covid-19 under
control." Up to this point, tourist companies in
HCMC including travel agencies, hotels, or tourist attractions are prepared
to welcome visitors from abroad. HCMC has inspected and allowed 13
hotels from 3 to 5 stars to open for international guests again. The
accommodation sectors have prepared their welcoming scripts and ensured Covid
safety for their guests. HCMC is one of the seven localities
across the country allowed to pilot the welcoming of international visitors
to Vietnam. Currently, another six hotels, 45 attractions and 10
international tourism businesses have registered for this pilot program. Vietnam’s power output up 6%
in Jan-Feb Vietnam’s electricity output in the
first two months of this year rose 6.1% to 39.59 billion kWh. In February, the volume increased by
14.9% to 18.6 billion kWh, according to the country’s sole power distributor
Vietnam Electricity (EVN). Of the Jan-Feb volume, 43.6% was from
coal, the highest portion, followed by hydropower with 27.4%, renewables
(16.8%), gas-fired power (11.1%), and 0.8% imported. As many as 40% of the electricity
generation in the two-month period came from EVN. As estimated by EVN, the power
consumed in March will increase largely due to warm weather. Accordingly, the
average electricity consumption volume will be 752.8 million kWh/day while
the load capacity reached 39,729 megawatts (MW). Source:
VNA/SGT/VNS/VOV/VGP/SGGP/Dtinews |
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