VIETNAM BUSINESS NEWS MAY 4
16:32 Vietnam enjoys high
trade surplus in agricultural, forestry, aquatic exports  Total foreign trade in agricultural,
forestry and aquatic products hit some 31.8 billion USD in the first four
months of 2022, an increase of 7 percent against the same period last year,
according to the Ministry of Agriculture and Rural Development. Exports
were worth 17.9 billion USD, up 15.6 percent year-on-year, while imports
totalled 13.9 billion USD, down 2.3 percent. Vietnam
enjoyed a trade surplus of nearly 4 billion USD, 3.2 times higher than a year
earlier, the ministry reported. Aquatic
exports saw the highest growth during the period, surging 43.7 percent to
reach 3.6 billion USD. Shipments of key agricultural and forestry products
exceeded 7.4 billion USD and 5.9 billion USD, up 10.5 percent and 4.9
percent, respectively. Meanwhile, those of husbandry products plummeted 19
percent year-on-year to 105.4 million USD. Five
export items with revenue exceeding 1 billion USD included coffee, rice,
fruits and vegetables, shrimp and timber products. Notably,
exports of coffee and shrimp stood at 1.7 billion USD and 1.3 billion USD, a
year-on-year surge of 59.4 percent and 38.6 percent, respectively. Export
value of tra fish went up 89.6 percent to 894 million USD. The
US remained Vietnam’s largest importer with nearly 4.9 billion USD,
accounting for 27.3 percent of the market share. Some 68.2 percent of
Vietnam’s exports to the US were wood and timber products. China came second
with over 3.2 billion USD, representing 18.1 percent of total shipments. Vietnam yields 2.6 million tonnes of
aquatic products in four months Vietnam
produced over 2.6 million tonnes of aquatic products in the first four months
of this year, a year-on-year rise of 2.2 percent, according to the Ministry
of Agriculture and Rural Development (MARD). Of
the total, its aquaculture output was over 1.36 million tonnes, an increase
of 5.3 percent compared to the same period last year while catching nearly
1.2 million tonnes, down 1 percent. In
April alone, the country harvested 736,400 tonnes of aquatic products, up 2.6
percent year-on-year. The
MARD asked provinces and cities to encourage farmers to raise various aquatic
species and change the farming methods to minimise diseases. Localities
were requested to focus on marine economic development and push up the
implementation of solutions to lift the European Commission’s “yellow card”
for illegal, unreported and unregulated (IUU) fishing. Domestic timber key to a sustainable
industry Tight
timber supply, coupled with transport delays, has been holding back furniture
manufacturers, exposing the need for domestic substitution for imported
timber. Le
Quoc Doanh, Deputy Minister of Agriculture and Rural Development, estimated
timber demand between 2017 and 2021 rose from 34.2 to 41 million cubic
metres. Domestic timber accounts for 77.4 percent of timber supply and
imported timber takes up the rest. As
the latter has become more volatile in recent years, he believes Vietnam
should step up afforestation to become less dependent on foreign logs,
ensuring the stability of the furniture industry. The
minister said his ministry had been financially supporting forest owners to
boost the coverage of certified forests, notably those certified by the
Forest Stewardship Council and the Programme for the Endorsement of Forest
Certification, to meet the technical requirements of large furniture
importers. The
ministry also urged the Vietnam Timber and Forest Product Association (VTFPA)
to develop a data system of timber supply and demand to better monitor the
market, reducing price uncertainty. Chairman
of the VTFPA Do Xuan Lap underlined domestic timber as the key to the
sustainable furniture industry. He
said that the recent Russian military operations in Ukraine, coupled with a
prolonged pandemic, had been pushing up logistic costs and timber prices, putting
a strain on furniture manufacturers. Data
from the General Department of Customs shows that imported timber prices
increased by up to 52 percent in the first three months of this year. He
thus called for larger forest coverage and higher timber productivity to
promote a self-sufficient timber industry, reducing the dependence on
imported timber. The
chairman also suggested an official market for forestland transfers and
called for favourable policies to encourage more firms to invest in forest
plantations to push up timber output. Nguyen
Van Dien, director of the ministry's Forestry Production Development
Department, noted that Vietnam had 14.68 million hectares of forests by March
2022, of which 2.17 million hectares are special-use forests, 4.68 million
hectares are protection forests, and 7.82 million hectares are production
forests. Notably,
production forests are comprised of 3.69 million hectares of planted forests
and 4.13 million hectares of natural forests. Textile - garment sector sees strong
growth The
Vietnam National Textile and Garment Group (Vinatex) enjoyed a year-in-year
surge of 144.2 percent in revenue to over 5.15 trillion VND (224.26 million
USD) in the first quarter of 2022, completing 28.5 percent of its target for
the whole year. In
the first quarter, Vinatex earned a pre-tax profit of 376.7 billion VND (16.4
million USD), equivalent to 173.9 percent of the amount recorded in the same
period last year. Growth
was seen in both textile and garment industries. Specifically, the textile
industry increased 139 percent, while the garment industry rose 167 percent
over the same period last year. Vinatex
General Director Cao Huu Hieu attributed the growth to the good control of
COVID-19, enabling businesses to deliver the orders they received from 2021
and accept more orders, along with stable prices of cottons and labour cost. This
year, Vinatex plans to speed up digital transformation to improve its
operating efficiency, he said. Vietnam Manufacturing Expo, NEPCON to
attract 200 brands The
2022 Vietnam Manufacturing Expo and Vietnam’s Only Exhibition on SMT,
Testing Technologies, Equipment and Supporting Industries for Electronics
Manufacturing (NEPCON Vietnam 2022) will be held in Hanoi on August 10-12 and
September 14-16 respectively. They
are expected to attract the participation of nearly 200 brands in the
manufacturing and electronics industries from more than 10 countries and
territories, including Japan, the US, the Republic of Korea, mainland China,
Taiwan, Singapore, Thailand, Germany, and India and others, who will set up
international pavilions and remote booths. There
will also be a series of customised seminars, technology updates from leading
brands around the world and free business consulting sessions under the
Business Innovation Zone Project. Offshore wind power sees high
development potential The
draft National Power Development Plan for the 2021 - 2030 period with a
vision to 2045 (PDP VIII) clarifies the roadmap to cut down coal-fueled power
and increase renewable energy sources, especially wind and gas power,
offering a good chance for offshore wind power to thrive, according to
experts. During
a recent online conference with localities on finalising the PDP VIII, Deputy
Prime Minister Le Van Thanh said that calculations in the plan are optimal. By
2030, total power capacity is forecast to reach 146,000 MW. By
2045, coal-fueled power is expected to contribute only 9.6 percent of the
country’s energy sector, while the contribution of solar power is set to
reach 50.7 percent. International
organisations and experts said Vietnam has great advantages thanks to its
long coastline and high potential for wind power, especially offshore wind
power, which could reach a similar capacity to Vietnam’s hydropower projects. Mark
Hutchinson, Chair of the Southeast Asia Task Force at the Global Wind Energy
Council, said that the target of 10GW from offshore wind power is reachable.
This will help Vietnam become “safer” against risks of global fuel price fluctuations. Tran
Viet Ngai, Chairman of the Vietnam Energy Association, said that in the
future, offshore wind power will develop strongly thanks to its advantages
over onshore and solar power. According
to Mai Duy Thien, Chairman of the Vietnam Clean Energy Association, compared
to onshore wind power, offshore wind power is more prominent in quality and
stability. Meanwhile,
Stuart Livesey Country Director of Copenhagen Offshore Partners (COP) in
Vietnam and General Director of the La Gan offshore wind power project said
that large-scale offshore wind power projects can generate a significant
amount of electricity at a higher availability rate than other forms of
onshore renewable energy. He underlined the necessity of upgrading
transmission lines, along with specific plans as well as suitable funding for
the development of the renewable energy sector. Many
banks and financial institutions have already prioritised funding of
renewable energy projects, including offshore wind power plans, he noted. Experts
held that Vietnam’s commitment to net-zero emissions given at the United
Nations Climate Change Conference (COP26) is ambitious but reachable if the
country designs suitable legal frameworks and support policies. Consultation session seeks ways to
export rice to ASEAN market A
consultation session is set to get underway in the Mekong Delta province of
An Giang on May 5 in order to seek ways to boost rice exports to the ASEAN
market, according to the Vietnam Trade Promotion Agency (Vietrade). During
the event, Pham The Cuong, trade counselor of Vietnam in Indonesia, is
expected to provide local businesses with information and export
opportunities in the Indonesian rice market. Meanwhile,
Nguyen Thanh Huy, a representative from the Vietnamese Trade Office in
Thailand will share Thailand's rice cultivation and harvesting experience
with Vietnamese enterprises. Other
Vietnamese trade officials in Laos and Malaysia will put forth several
recommendations for businesses when exporting rice to these markets. Among
ASEAN countries, the Philippines is a leading consumer of Vietnamese rice,
spending over US$1.25 billion last year and US$311.08 million in the first
quarter of the year on the products, according to the Ministry of Industry
and Trade (MoIT). Apart
from the Philippines, Vietnam also ships rice to other regional markets such
as Malaysia, Singapore, Indonesia, and Brunei. The MoIT reported that
Vietnamese rice exports to Malaysia in January alone rose 163.4% in volume
and 156% in value compared to December 2021. Big trade surplus for
agro-forestry-fisheries over four months Vietnam
enjoyed a trade surplus of approximately US$4billion from agriculture,
forestry and fisheries during the opening four months of the year,
representing a 3.2 fold-increase over the same period last year, according to
the Ministry of Agriculture and Rural Development (MARD). Most
notably, the agro-forestry-fisheries sector’s import and export revenue during
the reviewed period reached roughly US$31.8 billion, an increase of 7% year
on year. Of
the figure, exports surged by 15.6% to US$17.9 billion, while imports
decreased by 2.3% to some US$13.9 billion. Major
agricultural export items soared 10.5% to over US$7.4 billion, while forestry
exports increased by 4.9% to approximately US$5.9 billion. Aquatic
exports saw a significance rise of 43.7% to roughly US$3.6 billion in value,
while livestock products raked in US$105.4 million, representing a decline of
19%. Moreover,
the export of production inputs skyrocketed 70.7% to US$883 million, of which
the export value of fertilizers reached about US$439 million, representing a
2.9 fold increase compared to last year’s corresponding period. The
commodities posting an export value of over US$1 billion each include coffee,
rice, vegetables, shrimp, and wood products. Agro-forestry-fishery
exports to markets throughout Asia, America, and Europe accounted for 41%,
29.7%, and 12.8% of the market share, respectively, while exports to the
African and Oceanian markets made up 1.8% and 1.7% of the market share,
respectively. The
United States remains the country’s biggest consumer of the products, with
export turnover reaching approximately US$4.9 billion, accounting for 27.3%
of the market share, followed by China with over US$3.2 billion. Vietnam remains attractive destination
for Japanese investors: JETRO chief Vietnam
in the eye of Japanese investors is a potential market that boasts factors
for steady growth, says Nobuhiko Sasaki, chairman and CEO of the Japan
External Trade Organisation – an agency that promotes Japanese trade and
investment. The
two countries’ ministries, agencies, localities and businesses had signed and
exchanged documents of cooperation, especially in new fields such as energy,
digital transformation and the environment that shows the investment trend in
both countries, he said. The
recent development of the Japanese supermarket chain Aeon Mall also shows
that Vietnam’s retail market is developing rapidly, even in rural areas, he
noted. According
to the JETRO executive, trade and investment cooperation between Japan and
Vietnam has made progress in recent years. Japan has poured US$64.5 billion
into 4,935 investment projects in Vietnam. Both Vietnam and Japan are
important trading partners of each other when Vietnam is Japan’s third
largest export market and the latter is the former’s fourth largest export
market. The
number of Japanese companies entering Vietnam is increasing, and the Japan
Business Association in Vietnam (JBAV) is now represented by approximately
2,000 Japanese enterprises. Sasaki
cited the results of a JETRO-run survey saying 55% of Japanese companies
operating in Vietnam have business expansion plans in the next one or two
years, the highest rate among Southeast Asian countries. EU represents largest export market
for Vietnamese clams The
EU is currently the nation’s largest clam export market with Vietnamese clam
exports to the bloc increasing sharply amid growing demand and stable production
of this product group locally. Most
notably, the past year has seen the export of shelled molluscs to the EU
market skyrocket by 37% to US$87 million due to clam exports surging by 42%
to reach US$78 million. Clams
have risen to have the fourth largest seafood export value to the EU market.
Of this, clam exports to the three largest markets in the bloc, including
Spain, Italy, and Portugal, have all soared by between 38% and 44%. According
to a representative of Oxfam Organization in Vietnam, valid Marine
Stewardship Council (MSC) certificate is viewed as a passport to ensure the
development of safe seafood and is a protective trademark for local seafood
products. Therefore,
in order to exploit the potential of the export market, along with supporting
businesses to effectively approach buyers, Oxfam in Vietnam and the Vietnam
Chamber of Commerce and Industry (VCCI) have conveyed messages related to the
goal of sustainable clam market development, in line with MSC standards. Cargo through seaports rises 3 per
cent in four months The
volume of container cargo reached about eight million TEUs during the period,
up 2 per cent year-on-year. The figure includes 2.8 million TEUs of imports
which saw a significant increase of 8 per cent compared to a year earlier. The
VMA noted that in April alone, the volume of cargo through seaports totalled
59 million tonnes, up 3 per cent. Container cargo hit some two million TEUs,
a hike of 2 per cent from 2020. Several
coastal provinces experiencing major growth in cargo volumes comprise
northern Quang Ninh (11 per cent), central Quang Nam (19 per cent), southern
Dong Nai (8 per cent), and north-central Thanh Hoa (6 per cent). Organic vegetables becoming popular in
HCM City Organic
foods are ubiquitous at modern retail outlets such as Co.opMart, Tops Market,
MM Mega Market, Bach Hoa Xanh, Kingfoodmart, and Satra supermarket systems,
and consumers could buy them at reasonable prices, they said. According
to market research company Nielsen, more and more consumers want products
that are good for their health and do not harm the environment. But companies
in the field face many challenges. Thai
Nhu Hiep, director of Vinh Hiep Co., Ltd, said: “Organic agricultural
products are favoured by global consumers and will be an inevitable
requirement for making agriculture sustainable, but organic production in our
country faces many difficulties. His
company has faced difficulties in expanding the scale of organic farming
because productivity and yields are not high, farmers do not have the habit
of taking notes about their daily farming activities and their knowledge
about organic production remains low, he said further. Inputs
such as fertilisers for use in organic production are still not widely
available and are expensive. HCM
City plans to make urban agriculture modern and sustainable, focusing on
restructuring and development of new-style rural areas, Nguyen Ho Hai, deputy
secretary of the Party Committee, has said. The
city would develop hi-tech and clean agriculture and foster research and use
of bio-technology to create high-yield and -quality varieties, he promised. Nguyen
Thanh Xuan, chairwoman of the city Farmers Association, said agricultural
output last year was worth nearly VND18.6 trillion (US$823 million), an
increase of 13.7 per cent from 2020. The city has 113,664 hectare of
agricultural lands and around 50,000 people working in the sector. Most
of its produce is consumed in the city, while items like ornamental fishes
and flowers and spices are also exported. Transport firms up charges amid
mounting fuel prices According
to the ministry, fuel prices have increased by VND4,625-7,030 per litre
(US$0.2-0.3), or 24.91-39.56 per cent, after six price adjustment periods
since early 2022. Due
to the price hikes, fuel costs have grown to an enormous proportion of the
total costs of roadway transport firms, accounting for 40-45 per cent of
their bills. The firms had no choice but to seek fare rises. The
situation is not better for airlines, whose fuel costs account for 39.5 per
cent of their total costs. The MoT estimated that airline fuel costs in April
climbed by 84 per cent compared to September 2015, effectively eroding their
profitability. The
Civil Aviation Authority of Vietnam has sent an appeal to the MoT, requesting
adjustments upward on ceiling airfares to help airlines to recover. Meanwhile,
railway firms have decided to keep their fares unchanged to attract more
passengers and stick to socio-economic targets set by railway authorities.
Rail freight rates rose slightly by 3-5 per cent. A
few shipping lines have begun to collect fuel surcharges since March to cover
higher costs, whereas others have not hiked their fares. Export drive catering to turnover
targets The
Ministry of Agriculture and Rural Development (MARD) is eager to work with
New Zealand to foster agro-product exports and learn experience to build
brands for agro-products. Deputy Minister of Agriculture and Rural
Development Le Quoc Doanh said, “Vietnam expects to receive technology
transfer from New Zealand – a country having developed agriculture to
modernise domestic agriculture. Besides that, we want to learn experience to
build the brand for the dragon fruit product like the way New Zealand
succeeded in creating a brand for kiwi fruit.” At
the second New Zealand-Vietnam Agricultural Dialogue organised in early
April, chief executive of the New Zealand Ministry for Primary Industries Ray
Smith, and Deputy Minister Doanh affirmed that more solutions are needed to
realise the goal of achieving a bilateral trade turnover of $2 billion by
2024. Vietnamese
relevant ministries have also coordinated in organising many seminars to
connect Vietnamese agricultural exporters with overseas markets. They
discussed supply and demand issues, legal factors in export activities,
consumer psychology, and local culture so that Vietnamese producers and
exporters can have a comprehensive view of the international markets in order
to effectively conquer this market with all its potential and value. The
MARD, in collaboration with the State Committee on Overseas Vietnamese under
the Ministry of Foreign Affairs, connects with the overseas Vietnamese
community to create a bridge to bring Vietnamese agricultural products higher
and further in the global value chain. Minister
of Agriculture and Rural Development Le Minh Hoan said, “At present, 20-30
per cent of domestic agricultural products go through processing for export.
Meanwhile, in Taiwan, nearly 80 per cent of processed agro-products are sold
on the market. We need to step up processing, which creates very high added
value and benefits for producers.” Currently,
there are 7,500 industrial-scale agricultural, forestry, and fishery
processing enterprises in the whole country associated with exports, and tens
of thousands of small-scale processing establishments and households on top
of that. It is estimated that each year the sector has the ability to process
and preserve about 120 million tonnes of related raw materials. Shinhan Financial Group acquires 10
per cent stake in Vietnam’s ecommerce platform Tiki With
Tiki as its first strategic partner in Vietnam, Shinhan Financial Group from
South Korea is looking to develop its digital capabilities beyond financial
services. Shinhan
Financial Group – South Korea's second-largest banking behemoth – said on May
2 that it has agreed to acquire a 10 per cent interest in Vietnam’s
e-commerce player Tiki, making it the company’s third-largest stakeholder.
The deal fee remains unknown, according to Kedglobal. Shinhan
Bank, which is the largest foreign lender in Vietnam in terms of assets, will
acquire a 7 per cent share in Tiki. Its affiliate Shinhan Card will be in
charge of the remaining 3 per cent. Sovico Group ties up with JERA Co.,
Inc. to explore opportunities to supply LNG Sovico
Corporation has signed a cooperation agreement with JERA to evaluate the
potential of supplying liquefied natural gas (LNG) for power projects in
Vietnam. The
signing of the agreement was witnessed by Vietnamese Prime Minister Pham Minh
Chinh and Japanese Prime Minister Kishida Fumio during his official visit. Sunny World signs strategic
cooperation agreement with Daiwha House, Haichang Ocean Park Holdings and
Medi Hub Sunny
World Infrastructure and Real Estate Investment and Development Group Corporation
– a member of the Van Thinh Phat ecosystem – organised a strategic
cooperation signing ceremony on May 2 with the aim to strengthen cooperation
in investment promotion between Vietnam and Japan towards the 50th
anniversary of the establishment of diplomatic relations between the two
nations. Sunny
World also signed a cooperation agreement with Haichang Ocean Park Holdings
from Hong Kong to jointly develop theme parks in Vietnam. Vietnamese economy rebounds but
challenges remain The
Vietnamese economy is rebounding strongly with impressive growth in newly
established enterprises, industrial production and export-import, but is
still faced with quite a few challenges and difficulties. According
to a report by the Ministry of Planning and Investment, the Vietnamese
economy continued to recover in April on top of the momentum recorded in the
first quarter of 2022. Specifically, industrial production rose 2% from the
previous month and 9.4% over the same month last year. Overall industrial
production grew 7.5% in the first four months of 2022 while manufacturing
expanded by 11.3%. The number of workers in factories also rose 1.3% month on
month and 3.9% from a year earlier. Total
retail sales and consumer services in April climbed 12.1%, which translated into
a 6.5% rise for the four months. Exports during January-April went up 16.4%
while imports rose 15.7%, with a trade surplus of 2.5 billion USD. Tourism
saw a strong recovery as international arrivals in April rose more than
twofold compared to March and over fivefold compared to the same month last
year. Disbursement of foreign direct investment was estimated at 5.92 billion
USD, the highest figure since 2018. Macroeconomic
stability continued to be maintained and inflation was kept in check although
Vietnam was facing considerable pressure. The consumer price index during the
January-April period rose by 2.64% year on year. Industrial land rents increase in Q1 Land
rents at industrial parks in southern Vietnam were US$120 per square meter on
average in the first quarter of the year, up 9% year-on-year, according to
property consulting firm Jones Lang LaSalle (JLL). In
a report on the industrial real estate market, JLL attributed the land rent
hike to a new wave of foreign direct investment into Vietnam after the
country reopened its economy and enterprises showed a higher demand for
expansion, news site VnExpress reported. Meanwhile,
real estate service provider Colliers Vietnam said the average industrial
land rent in HCMC alone reached US$190 per square meter and the occupancy
rate hit 90% in the January-March period. Land
rents in the industrial parks in the southern part of the country has grown
8%-9% per year over the past few years. Many
industrial parks in HCMC have run out of land for lease, paving the way for
neighboring provinces such as Binh Duong, Long An and Dong Nai to attract
more investors. SEA Games 31, a golden chance to boost
Vietnamese tourism The
31st Southeast Asian Games (SEA Games 31) to be hosted in Vietnam shall be a
great chance for the country to promote the images of the nation, people and
tourism to international friends. Deputy
Director General of Vietnam National Administration of Tourism Ha Van Sieu
said that the activities of destination and tourist product introduction
along with the activity of welcoming SEA Games 31, festivals, promotion
programs at the venues will be well elaborated to bring a positive impression
and sentiment to delegates and athletes. Especially,
12 localities hosting the SEA Games 31 have built tours for athletes and
sports managers. It will be free of charge for those holding SEA Games entry
cards. The
delegates and athletes competing at the SEA Games 31 will have chances to
enjoy the beautiful sceneries, the hospitality and the tourist attraction of
Vietnam. According
to Mr. Ha Van Sieu, there will be free-of-charge tours, on-demand tours for
fans, sports managers, athletes, sports delegates and so on. For example,
sports delegations in the capital city of Hanoi can travel to Lao Cai, Ninh
Binh, Ha Long or Hai Phong while sports delegations in Ha Long can perform
their trip to Hanoi. Top
travel agencies including Saigontourist, Vietravel and other enterprises have
well prepared appropriate tours for different customers and regularly updated
the information for delegates and visitors. There
will be also booths, information counters, cultural spaces and information
related to tours and destinations at the coming press conference. The travel
agencies will dedicate the city tour in Hanoi or a special tour of the Son
Doong Cave expedition for sports delegates. HCMC accelerates social housing
projects In
recent days, elsewhere in the southern largest city, local administration and
investors started several housing projects for workers, employees, and
resettlement houses for residents whose old houses were destroyed. Typically,
construction of worker accommodation projects in Linh Trung 2 Export
Processing Zone, Thu Duc City started on April 25 with pressing test piles. Chairman
of Thu Duc City People's Committee Hoang Tung said that through the analysis
of social housing needs of employees working in companies in the city, so
far, nearly 5,600 people registered to rent and buy social housing. Prior,
the People's Committee of Thu Duc City has issued a written request for a
policy to plan three locations for the construction of workers' accommodation
in Ho Chi Minh City's Hi-Tech Park with an area of about 90ha which can
provide accommodation for more than 80,000 workers and employees. Moreover,
at the same time, the city will continue to review the public land fund for
the construction of social housing and accommodation for workers. Similarly,
District 7 proposed that Ho Chi Minh City approve nine land plots to build
social housing and housing for workers, such as the 15,400 square meter land
plot at No. 4 Pham Huu Lau, the 6,400 square meter land area at 261A Lam Van
Ben and the land area on Nguyen Van Quy street with 29,700 square meters. In
particular, Ho Chi Minh City strives for the area of social housing to lease
at least 500,000 square meters of floor space, accounting for 20 percent of
the social housing area. Particularly in 2022, the floor area for the
construction of social housing will increase by 46,300 square meters with an
investment demand of VND698 billion. According
to Deputy Director of Ho Chi Minh City Department of Construction Huynh Thanh
Khiet, projects in Ho Chi Minh City will provide over 35,000 social housing
apartments from 2021 to 2025. Ho Chi Minh City also asked investors of 33
housing projects with a land area of over 10 hectares in a total area of over
105 hectares for building about 70,000 apartments to reserve 20 percent of
the land fund for the construction of social housing. The
Department of Construction of Ho Chi Minh City has submitted to the People's
Committee of Ho Chi Minh City shortened processes, speeding up the
implementation time of social housing projects to less than 6 months to
facilitate investors. Banks cut lending rates to support
businesses Credit
institutions in Hanoi have so far waived and lowered lending interest rates
for 316,000 customers with a total outstanding loan of VND521 trillion (US$22.7
billion), according to the State Bank of Vietnam – Hanoi Branch. In
addition, the banking sector also restructured debt payment schedules for
58,400 companies and individuals for VND60 trillion ($2.6 billion) and
provided new loans with preferential rates for 210,000 others. The
move came following the instruction from the State Bank of Vietnam (SBV) to
keep a low-interest-rate environment for businesses and individuals to access
loans at affordable rates. At
present, the average lending rates at banks are estimated at 5.5-7.5% per
annum for short-term loans; and 7.5-8.5% for mid-and long-term loans. Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes |
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