VIETNAM BUSINESS NEWS APRIL 11 15:01                 Two more wind power plants put into operation in Soc Trang Two wind power plants were put into operation in the Mekong Delta province of Soc Trang’s Vinh Chau township on April 8. One of them is located in ward 2 and run by the Vinh Chau Renewable Energy JSC – TDC. Costing more than 2.4 trillion VND, the plant’s first phase began in December 2019 to install six turbines with a total capacity of 30MW, one 22/110 kV - 40 MVA transformer station, and a 9km 110 kV transmission line. The second, operated by Quoc Vinh Soc Trang Wind Power Company Limited, is situated in Vinh Hai town. The 1,420 trillion VND plant consists of six turbines with a capacity of 30MW. Speaking at a ceremony to open the two facilities, Vice Chairman of the Soc Trang People’s Committee Vuong Quoc Nam asked the investors to effectively manage and operate the plants. He said the province is currently implementing 20 wind power projects with a total capacity of 1,435 MW. To date, four projects, together capable of generating 110.8 MW, have been put into commercial operation. Vietnam, Russia seek ways to enhance agricultural cooperation Vietnamese Ambassador to Russia Dang Minh Khoi and Russian Deputy Minister of Agriculture Sergey Levin discussed measures to beef up agricultural cooperation between the two countries during a meeting in Moscow on April 7. According to Ambassador Khoi, as of late 2021, Russia had allowed 50 Vietnamese firms to ship aquatic products to Russia. Meanwhile, 55 Russian enterprises were permitted to export meat and 77 others aquatic products to the Southeast Asian nation. For his part, Levin held that Vietnam and Russia hold substantial potential to boost their partnership in agricultural trade, noting that many of their products could be exported to the respective markets. Reviewing a range of events and measures taken last year to boost the collaboration, the official emphasised that such measures have significantly contributed to bilateral agricultural trade. Vietnam’s agricultural exports to Russia reached 612.7 million USD last year, up 25 percent from 2020. Meanwhile, Russia shipped 523.1 million USD worth of farm produce to Vietnam, a year-on-year rise of 21 percent. Vietnam is Russia’s leading supplier of coffee, aquatic products, cashew nuts, pepper and tea, among others. Russia is a major meat supplier for Vietnam, with revenue of 137 million USD in 2021, accounting for 43 percent of Russia’s total pork export value. Russia’s fertilizer exports to Vietnam also surged 162 percent last year to reach 153.3 million USD. Vietnam – Hong Kong trade expands 64.6 percent in six years Hong Kong (China) is viewed as a promising market for Vietnamese exporters as bilateral trade experienced growth of 64.6 percent, from over 8.28 billion USD in 2015 to nearly 13.63 billion USD in 2021. Last year, Vietnam’s export of agricultural and aquatic products alone advanced 3.08 percent to near 310 million USD. Vegetables and fruits recorded the highest growth of 32.94 percent, followed by aquatic products (7.71 percent), cashew nut (7.32 percent), and rice (0.53 percent), according to the Vietnamese trade office in Hong Kong and Macau. The office suggested that Vietnamese enterprises can enjoy various benefits when exporting to Hong Kong since it is an open market which is close to Vietnam and has no tariffs on imports. Plus, the market is a major importer of food and foodstuff and Hong Kong consumers have similar taste and behaviour as Vietnamese, providing a good chance for the Vietnamese firms, it added. US Ambassador visits Vinamilk’s factory in Can Tho US Ambassador to Vietnam Marc Evans Knapper visited a factory of Vietnam’s largest dairy producer Vinamilk in Can Tho on April 8 during his trip to the Mekong Delta city. Vinamilk boasts a large-scale network comprising 16 factories and 14 farms of international standards at home and abroad, including one in California of the US. The 2ha-factory in Can Tho city was put into operation in 2001 and capable of producing more than 202,000 tonnes of products per year. Vinamilk is among 40 largest dairy producer of the world in terms of revenues. Its products have been shipped to 57 countries and territories, including major markets of the US, Japan and China, with an export turnover in excess of 2.6 billion USD. The company purchased milk powder, cows and equipment from the US worth nearly 306 million USD from 2019 to 2021. Punctuality of Vietnamese airlines reaches 95.5 percent in Q1 The overall punctuality of the local aviation industry was 95.5 percent in the first quarter of this year, according to statistics from the Civil Aviation Authority of Vietnam (CAAV). In the period, Vietnam's six airlines operated 58,302 flights, a reduction of nearly 25 percent compared to last year’s figure. Bamboo Airways took the lead with 96.6 percent of its flights on time; Vietnam Airlines and Pacific Airlines ranked second and third with on-time performance (OTP) of 96 percent and 95.7 percent, respectively; and the OTP rate of Vietjet Air was 94.4 percent. According to CAAV, Bamboo Airways is also the carrier that has the lowest rate of flight delays among Vietnam’s three big airlines with 3.4 percent, a year-on-year decrease of 1.2 percent, while that of Vietnam Airlines and Vietjet Air was 4 percent and 5.6 percent, respectively. The overall rate of flight delays in the sector was 4.5 percent in the first three months of 2021, a decline of 7.3 percent compared with the same period. Meanwhile, the cancellation rate of the domestic aviation industry in the period was 1.3 percent, a year-on-year increase of 1.1 percent. Vietnam Airlines led the industry with 2.7 percent of the flights canceled. Wet market 4.0 model launched in Da Nang Traders at wet markets in the central city of Da Nang are now able to go cashless as they can use e-wallet mobile app Viettel Money under a 4.0 wet market model introduced on April 8. The new model was launched by the municipal Department of Industry and Trade and the Da Nang branch of military-run telecom group Viettel, aiming to accelerate digital transformation and use of the non-cash payment method at the city’s wet markets and provide more opportunities for local residents to experience modern payment services. Owners of over 1,000 stalls at Da Nang’s three major wet markets – Con, Han and Dong Da – have been provided with a QR code enabling users to make online payments through access with 37 banks and Viettel Money. As payments now only require scanning of the QR code, with no cash nor changes involved, they become very fast and convenient, said Khuc Thi Hien Khuyen, who runs a stall selling “gio” and “cha” (Vietnamese pork sausages) at Con Market. For every 10 buyers, 7 – 8 will scan to pay, she added. Deputy Director of the Department of Industry and Trade Nguyen Huu Hanh said the model will be scaled up at other wet markets citywide as a way to promote cashless payments and prevent the spread of COVID-19. The vendors will also receive help to promote their products on e-commerce sites while Viettel will open a post office at wet markets to support goods’ shipments and delivery, he revealed. Jetstar Airways resumes flights to Vietnam Australia’s Jetstar Airways has resumed regular flights to Vietnam from April 8 after two years of suspension due to COVID-19 impacts. The airline will operate five direct flights each week, with three on the Melbourne-Ho Chi Minh City route from April 8 and two on the Sydney-Ho Chi Minh route from April 9. Jetstar Group CEO Gareth Evans said that Vietnam is one of the favourite destinations for Australian people only after Bali of Indonesia. Before COVID-19 broke out, Vietnam was said to be one of the fastest growing tourist destinations in Southeast Asia, and the airline has seen strong bookings since Vietnam reopened its border, he said. Ho Chi Minh City has become the sixth international destination that Jetstar Airways has restarted flights to since it resumed international operations earlier this year. Winners of Golden Dragon Awards 2022 announced VSIP, Gamuda Land Vietnam, La Vie, DHL-VNPT and Best Express Vietnam are among the winners of the 21st Golden Dragon Awards. The Golden Dragon Awards 2022 winners include the top 10 foreign-invested enterprises (FIEs) in green growth and top 50 outstanding FIEs in Vietnam in 2021. Standard Chartered Bank, Deloitte, Citi Vietnam, KPMG, Honda, Zamil Steel, Prudential, Amway, Grab, Oppo Vietnam and GreenFeed Vietnam also won the awards. An award ceremony was jointly held by the Ministry of Foreign Affairs (MoFA) and Tap Chi Kinh Te Vietnam (VnEconomy) - Vietnam Economic Times – in Ho Chi Minh City on April 8. The enterprises are the pioneers in innovation, green transition and the application of digital technology in production, businesses and corporation administration. Forum talks resource convergence for green growth The awareness of localities, businesses and people about green, sustainable recovery and growth has been improved significantly over the past time, Deputy Minister of Foreign Affairs Ha Kim Ngoc told a forum in Ho Chi Minh City on April 8. The Connections for Development Forum 2022 (Vietnam Connect Forum 2022) was co-hosted by the Ministry of Foreign Affairs (MoFA) and Vietnam Economic Times (VnEconomy), with the theme “Resource Convergence for Promoting Green Growth and Sustainable Development.” The Deputy Minister said many localities have issued strategies and action plans on green growth, while enterprises have sought ways to diversify and reform their production models in a sustainable fashion. He also highlighted the resolve of the Party, State and Government to accelerate the economic transition towards green, sustainable development. Vo Van Hoan, Vice Chairman of the Ho Chi Minh City People’s Committee, briefed the participants on the southern economic hub’s efforts in sustainable development, covering economy, society and people, noting that the city is preparing an ecosystem to welcome green investment flows. The Ministry of Planning and Investment and the World Bank estimated that Vietnam needs some 30 billion USD to implement its green growth strategy by 2030. However, the state budget can meet only 30 percent of the amount. Experts at the forum stressed the need to consolidate policies and institutions on green growth, further improve the investment environment, create optimal conditions for businesses and people to access loans, and promote scientific research and technological transfer. PM orders acceleration of ODA, preferential loan disbursement Deputy Prime Minister Pham Binh Minh on April 8 signed the Prime Minister’s dispatch requesting the acceleration of disbursement of foreign official development assistance (ODA) and preferential loans. In the document, the PM noted that as the COVID-19 pandemic is basically put under control, the task of promoting the disbursement of public investment, including foreign ODA and preferential loans, is considered one of key solutions to economic recovery and socio-economic development in 2022. However, the ODA disbursement in 2022 remains slow, thus reducing the efficiency of public investment use as well as the attraction of other social resources, wasting resources, and affecting post-pandemic economic recovery momentum, said the dispatch, citing a report of the Ministry of Finance that as of March 31, the disbursement of ODA from the central budget reached only 0.99 percent of the yearly plan assigned by the PM. Therefore, to meet the plan, the Prime Minister asked ministries, sectors and localities to consider ODA disbursement one of the core political missions of 2022 and the following years, strengthen discipline, and uphold the responsibility of the leaders. It is necessary to intensify coordination between foreign donors and ministries and localities in drawing up detailed disbursement plans for each ODA project, especially key ones with large capital, and at the same time step up land clearance and focus on solving difficulties related to land and resources. The Finance Ministry was required to continue review regulations to simplify procedures and shorten the time to control spending and withdraw capital from sponsors. New circular on independent audits for foreign bank branches kicks in on April 15 A circular stipulating independent audits of credit institutions and foreign bank branches issued by the State Bank of Vietnam will take effect from April 15. Circular 24 amends and supplements several articles of the central bank’s Circular 39 dated December 15, 2011. Under the new circular, internal control systems, including mechanisms, policies and regulations, of credit institutions and foreign bank branches in Vietnam, will be subject to independent auditing. The performance of the internal control system during the preparation and presentation of financial reports, as well as the assessment of foreign bank branches’ capital capacity, will also be audited. The move aims to ensure efficient and safe operations of credit institutions and foreign bank branches, and protect, manage and effectively use assets and resources. Two new railways to connect to Long Thanh Int’l Airport Construction work on two light railway projects in the south is set to start, according to local authorities. Deputy Prime Minister Le Van Thanh requested the Ministry of Transport to work with the People’s Committees of Dong Nai and Ba Ria-Vung Tau provinces, along with Ho Chi Minh City and relevant ministries, on the investment plan for the two projects. The 38km Thu Thiem-Long Thanh International Airport light railway route, starting from Thu Thiem Station in Thu Duc city and going to Long Thanh International Airport, has been included in the plans. Total investment is expected to reach about 40.5 trillion VND (1.7 billion USD). Meanwhile, the Bien Hoa-Vung Tau railway line is 84km long, starting at Trang Bom Railway Station in Dong Nai province and ending at Cai Mep-Thi Vai International Port in Ba Ria-Vung Tau province. Total investment is expected to be more than 50 trillion VND. The two projects are expected to reduce pressure on road traffic and support economic development in the area. Tariff quotas for rice, dried tobacco imported from Cambodia announced The Ministry of Industry and Trade (MoIT) has issued a circular stipulating the import of rice and dried tobacco leaves originating from Cambodia under tariff quotas for 2021 and 2022. Circular No. 06/2022/TT-BCT specifies import quotas for rice and dried tobacco leaves originating from Cambodia that are entitled to special preferential import tax rates in Vietnam for the two years. The total import tariff quotas in 2021 and 2022 from Cambodia for rice of all kinds is 300,000 tonnes per year (for paddy, the conversion rate is 2kg, equal to 1kg of rice), while the import tariff quotas for dried tobacco leaves is 3,000 tonnes per year. The document says in order to enjoy the special preferential import tax rate, the products must have a Certificate of Origin form S issued by the Cambodian Ministry of Trade or an authorised agency, and their customs clearance procedures must be conducted at the border gate pairs specified in Appendix No. 2 attached with this circular. For dried tobacco leaves, importers must show a licence to import raw tobacco under tariff quotas issued by the MoIT in accordance with Decree No. 69/2018/ND-CP dated May 15, 2018. Circular No. 06/2022/TT-BCT will take effect from April 15 to the end of December 2022. Agro-forestry-fisheries exports triple in Q1 Vietnam’s agro-forestry-aquatic product export and import turnover was estimated at 22.6 billion USD in the first quarter of this year, up 6.3 percent compared to the same period last year, according to the Ministry of Agriculture and Rural Development (MARD). Of the figure, around 12.8 billion USD was worth of exports, an increase of 15.3 percent while about 9.8 billion USD was from imports, a decline of 3.5 percent against last year. In January-March period, exports of major farm produce hit nearly 5.5 billion USD, a rise of 12.8 percent, while that of major forestry products reached about 4.3 billion USD, up 4.4 percent; aquatic products nearly 2.4 billion USD, up 38.7 percent; and animal husbandry roughly 75.6 billion USD, down 22.4 percent. In the period, Asia remained the largest market for Vietnam's agro-forestry-fisheries products with 40.3 percent of the market share, followed by America and Europe with 29.5 percent and 13.1 percent, respectively. The US was the biggest consumer of the products with over 3.5 billion USD. China came second with nearly 2.1 billion USD, and Japan third with nearly 872 billion USD. Central region expanding organic farming Since the organic farming model introduced by the Que Lam Group in the central province of Thua Thien-Hue has proven efficient, farmers in the central region have been taking up organic agriculture for more sustainable development. With no chemical fertilisers, pesticides, or herbicides, Bảo’s orange orchard, which spans 4 hectares in Nam Dong district in the central province of Thua Thien-Hue, produces good quality fruit at high productivity, earning him up to 8,700 USD per hectare. Thua Thien-Hue was the first locality in the central region where the organic farming model has been developed for paddy fields and pig husbandry with support from the Que Lam Group. The model was then applied at orchards after proving its efficiency. Da Nang city - the largest market in the central region - is also shifting to organic farming. With organic products selling at more than twice the price of those cultivated using traditional methods, more farmers in the central region have taken up the organic model. Many localities in the region are developing products and models to extend organic production. Ministry supports businesses in economic recovery and development programme The Ministry of Finance (MoF) will support businesses when implementing the socio-economic recovery and development programme, Finance Minister Ho Duc Phoc said.Specific areas will include accessing markets, capital, labour and infrastructure as well as open administrative procedures. MoF will accompany firms with supportive solutions so that the domestic business community can overcome difficulties to restore and develop production. Thereby they can contribute to the economic recovery and development. Dang Ngoc Minh, deputy director of the General Department of Taxation, said the general department had built drafts of two decrees on extending the deadline for tax and land rent payments. They included the decree on extending payment of value added tax, corporate income tax, personal income tax, and land and water surface rent in 2022 and the decree extending the deadline for excise tax payment for domestically manufactured or assembled cars. Meanwhile, the customs sector has also continuously implemented reforms to create more favourable conditions for businesses. Hoang Viet Cuong, deputy director of the General Department of Customs, said that the General Department of Customs had proactively implemented solutions to create favourable conditions for trade activities, helping businesses and people in recovery and development of production, imports and exports. Overseas Vietnam returning home to contribute to the motherland In recent years, there has been a “wave” of overseas Vietnamese entrepreneurs and intellectuals returning to Vietnam in groups and organising trade and investment promotion activities, which connect overseas Vietnamese from all around the world. Sean Lam is an overseas Vietnamese who has lived in Maryland, the US, for more than 30 years. He previously returned to Vietnam almost every month to manage investments. Since the pandemic, he has not been able to return, but he has maintained his business, investment capital, and remittances.  Vietnam has attracted 376 FDI projects from OVs with total registered capital of 1.72 billion USD, focusing on energy, processing and manufacturing, and services. It is always in the top 10 countries in the world receiving the largest remittances. According to the State Bank of Vietnam, remittances in 2021 totalled 12.5 billion USD.  Compared to the total FDI Vietnam has attracted, the volume of investment from OVs remains modest. However, the opportunity to attract more FDI inflows from the community is still significant as it is growing and has the funds to access science and technology platforms in developed countries. Ministry moves to enhance economic, trade ties with European, American partners The Ministry of Industry and Trade will focus on solutions to tighten Vietnam’s economic and trade relations with European and American partners, Minister Nguyen Hong Dien has affirmed. Speaking at a recent meeting with partners from Europe and the Americas, Dien told participants that his ministry will maintain the flexible and effective implementation of the dual goal of COVID-19 prevention and control and economic recovery and development in the new normal. Attention will be paid to helping enterprises overcome difficulties and develop production and business, facilitating goods circulation and import and export, and developing the smart manufacturing industry. The sector will encourage the development of clean and renewable energies and form major energy centres, and focus on measures to diversify market and imported and exported commodities, bring into full play the signed free trade agreements, and develop e-commerce. To successfully implement theses solutions, in addition to its own efforts, the ministry wants to receive close and effective cooperation and support from both domestic and foreign partners, including those from Europe and America, Dien added. VPS Securities remains market leader VPS Securities remained the top brokerage in the first quarter with a 17.9 percent market share, according to data released by the HCM Stock Exchange. SSI Securities Corporation and VNDirect Securities Corporation were in second and third places with market shares of 9.66 percent and 8.01 percent.  Ho Chi Minh City Securities Company’s  market share fell to 5.24 percent, and it thus lost fourth place to Techcombank Securities JSC (5.56 percent). Mirae Asset’s market share continued to rise, reaching 5.01 percent and sixth place. The rest of the top 10 brokerage securities companies on HOSE were made up by MB Securities, Viet Capital Securities Company, KIS VietnamSecurities, and FPT Securities. Online searches for 'cryptocurrency' rise sharply during pandemic Google searches for “cryptocurrency” increased sharply in recent years as Vietnamese sought investment channels, especially during the pandemic with social distancing measures in place, which forced people to stay home. A recent report of Google showed that the total number of searches via Google in Vietnam rose by 37 percent from 2021 against 2019. Searches for financial investment-related keywords in general and “cryptocurrency” in particular were among the keywords that saw the highest increases over the same period. The trend of searching for “cryptocurrency” emerged at the end of 2020 and reached its peak in May 2021, with the number of searches for “tien dien tu” (cryptocurrency) jumping by 115 percent in 2021 compared to the pre-pandemic period. The southern province of Tien Giang had the highest number of Google searches for “cryptocurrency,” nearly doubling Quang Ninh, the northern province which came second. Other provinces in the top five were Ninh Binh, Dak Nong and Dak Lak while major cities including Hanoi, HCM City, Da Nang and Hai Phong were all in the top 20. Hanoi, HCM City, Da Nang, Dak Nong and Gia Lai were localities with the highest number of searches for the keyword “bitcoin.” Searches for “bitcoin” saw an increase by 38 percent and peaked in May 2021. The report showed that Vietnamese had more search interest in “bitcoin” than “cryptocurrency.” During the pandemic, Vietnamese were more interested in investing, especially the rural population, according to the report. Search interest in “chung khoan” (stocks) also grew by over 106 percent. A report of Chainalysis in 2021 showed that Vietnam ranked first in the Global Crypto Adoption Index. First ‘Vietnam Logistics Service’ pavilion to be erected at Vietnam Expo The Trade Promotion Agency and the Vietnam Logistics Business Association will first put up ‘Vietnam Logistics Service’ pavilion at the Vietnam Expo 2022 that is scheduled to take place from April 13 – 16. Six businesses specializing in logistics services have registered to take part in the pavilion, namely VINAFCO, Khai Minh Global, Knight Logistics, Logistics Co. of Vietnam Post, U&I Logistics, and Avina Logistics. They will introduce a variety of logistics services such as packaging, import and export, customs, multimodal transport, warehousing among others. According to the Vietnam Logistics Business Association (VLA), the domestic logistics industry will have ample room to prosper this year. Difficulties and challenges such as the congestion of road transport, the shortage of containers, the lack of space and the escalating prices of marine transport will shortly be addressed as soon as the COVID-19 outbreak is completely brought under control. Positive economic recovery following two years of COVID-19 impact Vietnam's ongoing economic recovery after being negatively affected by the COVID-19 pandemic for two years can be put down to the Government's efforts to create optimal conditions for local businesses to resume normal operations in line with safe pandemic control conditions. According to experts, Vietnamese GDP in the first quarter of this year reaching over 5% can be viewed as a very positive signal for the local economy, showing that the national economy is on the right track for recovery moving forward after two consecutive years suffering the adverse impacts of the COVID-19 pandemic. Statistics detailed by the General Statistics Office (GSO) in the first quarter of this year indicate that the country’s GDP was estimated to have expanded by 5.03% over the same period last year, higher than the growth rates of 4.72% and 3.66% recorded in the same quarters of 2021 and 2020. Furthermore, industrial production in the first quarter continued to prosper, with added value of the entire sector growing by 7.07% on year. This is in addition to the agriculture, forestry and fishery sector increasing by 2.45%, the industry and construction sector soaring by 6.38%, and the service sector rising by 4.58%. Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes