VIETNAM BUSINESS NEWS MAY 9
15:23 Crude oil output
exceeds target by 23 percent in four months
The Vietnam Oil and Gas Group (PetroVietnam) has
reported that its crude oil output reached 3.63 million tonnes in the first
four months of this year, surpassing the set target by 23 percent. Vietnam striving to remove bottlenecks
from digital government development Deputy
Prime Minister Vu Duc Dam recently signed a directive regarding e-Government
development towards digital governance and transformation. Despite
recent positive results, major bottlenecks remain in the implementation of
the work, with data sharing being one of the main issues. In
addition, due focus has yet to be paid on ensuring cyber security, human
resources and a budget for information technology applications, as well as
the building of e-Government. As
a result, relevant agencies have been ordered to prepare infrastructure and
fulfil cyber security conditions to connect national databases. They
have been instructed to use data for the implementation of online public
services by December. Ministries
and agencies must work to improve their capacity and quality of services, as
well as expand connectivity, surveillance and access control over data
transmission networks by September. Agencies
have also been asked to make more efforts in IPv6 adoption, work on
information systems and the establishment of a communal digital technology
network. Vietnamese wood exports forecast to
enjoy positive growth in first half Among
the top 5 agro-fishery products with an export turnover of over one US$ billion,
wood exports are anticipated to grow by between 5% and 8% in the first half
of 2022. According
to data provided by the General Department of Customs, the export turnover of
wood and wood products in April alone reached an estimated US$ 1.5 billion,
up 7.3% compared to the same period from last year, bringing the export
turnover during the first 4 months of 2022 to US$5.48 billion, an increase of
4.9% on-year. The
Ministry of Agriculture and Rural Development said that throughout the
reviewed period, there were 5 products and product groups with export value
of over US$1 billion, including timber and wood products. According
to the Vietnam Timber and Forest Product Association (VIFORES) currently, the
export trend of wood and wood products is focusing on high value-added items
such as wooden frame chairs, living room and dining room furniture, and
bedroom furniture which are all products of Vietnam's strengths. According
to Do Xuan Lap, chairman of the VIFORES, Vietnam's wood production and export
activities are promoted by a series of free trade agreements (FTAs) being
carried out such as the EU-Vietnam Fee Trade Agreement (EVFTA) and the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
(CPTPP), thereby creating competitive advantages for wood products when the
tax rate is gradually reduced to 0%. Petroleum demand forecast 5.2 million
m3 in Q2 The
Ministry of Industry and Trade has informed the situation of the petroleum
market in the second quarter, after supply uncertainties in the first
quarter. Total
petroleum demand for the domestic market is about 20.6 million m3 this year.
Meanwhile, the Ministry of Industry and Trade said that the supply would
reach about 6.7 million m3 this quarter. The
Ministry of Industry and Trade affirmed that the above supply would meet the
consumption demand in the second quarter. The inventory will be about 1.5
million m3 in the third quarter. To
ensure the domestic petroleum supply, the Ministry of Industry and Trade said
it would continue to direct petroleum dealers in allocating total sources and
additional minimum import quotas, which the Ministry of Industry and Trade
assigned in the second quarter. Ha Noi supports farmers in
digitalisation of production and sales Vice
President of Ha Noi Farmer’s Union Duong Thi Hang said Ha Noi’s farmers are
actively applying digital technology to production and setting up groups to
sell products online. During the peak time of the pandemic, farmers in
districts connected and sold thousands of tonnes of farm produce through
websites. Many farmers have actively built their electronic sales channels
and connected with businesses to develop an online brand identity (including
website, email system, Facebook fanpage and landing page). To
date, the Ministry of Agriculture and Rural Development (MARD) in
coordination with the Ministry of Information and Communications have created
digital booths for 2.5 million farming households on Vietnam Post’s
e-commerce platform Postmart.vn. Besides
providing a digital platform and instructions on how to trade online, Vietnam
Post also supports farmers in integrating solutions such as marketing,
communication, packaging, transportation and payment. Currently, nearly
50,000 agricultural products have been sold on this platform, demonstrating
the early effectiveness of digital transformation in the agriculture sector. To
meet the increasing requirements in the future, MARD will develop a framework
programme for training on digital technology and digital transformation for
agricultural enterprises and agricultural cooperatives. Vietnamese goods dominate domestic
market Nguyen
Ho Hai, deputy secretary of the HCM City Party Committee and head of the
“Vietnamese people give priority to using Vietnamese goods” campaign’s
steering committee, said this at a review conference held last week. He
said that amidst the harsh impacts of the COVID-19 pandemic, the city had
made efforts last year to stabilise the market and strengthen links with
provinces and cities across the country to have reputed, quality Vietnamese
goods reach consumers. Association
of the campaign with the city’s 2021-2022 market stabilisation programme in
2021-2022 helped balance supply and demand and contributed to boosting the
profile of Vietnamese goods, he said. Domestically
produced goods account for 80-90 per cent of goods sold in supermarket
systems compared to 60-70 per cent 5-10 years ago, the conference heard. Nguyen
Thi Bich Van, head of communications at Central Retail Vietnam, said the
percentage of Vietnamese products in its retail system (including GO!, Big C
and Tops Market supermarket chains) was above 90 per cent. The
retailer has consistently implemented "the livelihood for the
community" and other programmes that support signature products of
villages, communes and localities to meet standard requirements so that they
can enter its retail chains, she said. Similarly,
Le Truong Son, deputy general director of Saigon Co.op, said the percentage
of Vietnamese goods in its retail systems, including Co.opmart, Co.opXtra,
Co.op Food, and others, has been maintained at over 90 per cent for many
years. Ly
Kim Chi, chairwoman of the Food and Foodstuff Association of HCM City,
suggested that to improve the campaign’s efficiency, the city should step up
dissemination and make it more regular instead of doing it at specific times
in a year. To
encourage more local consumers to opt for Vietnamese goods, businesses need
to further improve product design and quality up to international standards,
achieving equality between the quality of good produced for export and
domestic consumption, other speakers said at the conference. The
conference honoured several collectives and individuals for their active
contribution to the campaign. Binh Duong FDI quadruples from 2021 It
includes more than $1 billion by toy manufacturer LEGO Group in a 44ha
factory at the Vietnam-Singapore Industrial Park III in Binh Duong. It is expected
to generate 4,000 jobs in the next 15 years. The
province has 29 concentrated industrial parks with nearly 13,000 ha of land
and average occupancy rates exceeding 83.4 per cent. Binh
Duong ranks third in FDI this year after HCM City and Ha Noi with its efforts
to improve administrative procedures and create a favourable investment
climate paying off. Vietnam attends 18th congress of World
Federation of Trade Unions in Italy A
delegation of the Vietnam General Confederation of Labour (VGCL) attended the
18th congress of the World Federation of Trade Unions (WFTU) that took place
in Rome, Italy, from May 6 to 8. Opening
the event that was participated by 435 delegates from 106 countries, WFTU
General Secretary Georges Mavrikos highlighted the federation’s strong
development in both quantity and quality over the past years, noting that
since 2005, the WFTU membership has surged by 175 percent to over 105 million
in 133 countries, making it the world’s largest organisation of trade unions. He
also highly valued Vietnam’s active contributions to maintaining and
strengthening the WFTU’s pioneer role in the fight for the interests of
workers around the world. In
his speech, VGCL President Nguyen Dinh Khang stressed the importance of
solidarity and unanimity in the progressive working class and global trade
unions. Vietnam emerges as Taiwan’s largest
tea exporter Vietnam
represented the largest supplier of tea to Taiwan (China) last year with its
tea exports accounting for up to 55.23% of the territory’s tea import value,
according to Taiwan's Bureau of Foreign Trade (BOFT). The
BOFT statistics show Vietnamese businesses shipped 18,330 tonnes of tea worth
US$28.91 million to the market, increasing by 7.1% in volume and 7.47% in
value compared to 2020. In
the opening two months of this year, they exported 2,000 tonnes worth US$3
million, up 3.5% in volume and 0.9% in value year on year. However,
their export proportion to the market decreased by 8% compared to nine years
ago. Experts attributed the decline to the impact of the COVID-19 pandemic
and Taiwan’s tightened control over product quality and pesticide residue
level over imports. According
to Taiwan's regulations, imported tea products are required to comply with
food safety and hygiene standards set by the Taiwan Food and Drug
Administration (TFDA). VCCI suggests adding regulations to
draft amendments to Law on Intellectual Property The
Vietnam Chamber of Commerce and Industry (VCCI) has suggested adding
regulations related to digital transformation to the draft law on amending
and supplementing a number of articles in the Law on Intellectual Property
(IP). They
include a number of procedures that need to be conducted online such as
registration and establishment of IP rights. The
Law on IP was promulgated in 2005 and was amended and supplemented in 2009
and 2019. However, it should be adjusted to meet the new development
requirements of the country, institutionalise the guidelines of the Party and
State, and overcome the inadequacies of the current law, especially in the
context of the Fourth Industrial Revolution, according to the VCCI. The
amendments also aim to meet international commitments related to IP rights
and ensure harmony and consistency in the Vietnamese legal system. Currently,
the draft law only regulates the submission of copyright registration
dossiers through the online public service portal, while data on trademarks
and industrial designs are incomplete and haven’t been updated by the
National Office of Intellectual Property, the VCCI said. VCCI suggests adding regulations to draft amendments to
Law on Intellectual Property hinh anh 2The Vietnam Chamber of Commerce and
Industry has suggested adding regulations related to digital transformation
to the draft law on amending and supplementing a number of articles in the
Law on Intellectual Property. (Photo: VNA) According
to the VCCI, IP protection for digital economic development is important to
promoting investment in the fields of industry and high-tech agriculture. Therefore,
it is necessary to consider adding to the Law on IP the institutions that
recognise and protect all kinds of IP in the digital environment towards
protecting personal property rights. Businesses seek stable tax policies
for sustainable recovery in new normal The
Vietnam Alcohol-Beer-Beverage Association (VBA) on May 6 held a seminar on
the sector’s recovery and development in the new normal. The event attracted
state management agencies, senior economists, experts, and organisations in
the field. During
the seminar, participants focused on possible solutions and measures to
facilitate businesses, thus contributing to an economic growth rate of 6.5-7
per cent in 2021-2025. As
Vietnam is reopening its economy to facilitate business recovery, the economic
picture is now brighter and more optimistic. According to the Ministry of
Planning and Investment (MPI), driven by the growth momentum in the first
quarter, economic development in April continues to be bright in almost all
sectors and industries. However,
the MPI forecast that, in 2022, Vietnam will still face difficulties from the
unpredictable developments of new COVID-19 variants, strict prevention and
control measures from countries which border Vietnam, global inflation, and
other factors. Therefore,
in order to obtain the economic growth rate of 6-6.5 per cent as set by the
National Assembly, it is necessary to have an additional support package for
businesses to help them recover, mainly focusing on fiscal policy, refunds,
and tax refunds which are being implemented and to be implemented in the
upcoming time. Nguyen
Van Viet, chairman of the VBA, said that like businesses in other sectors,
those in the alcoholic beverage sector are still facing many negative impacts
due to the pandemic. Moreover,
some regulations, including on the prevention and control of alcohol-related
harm, and Decree No.100/2019/ND-CP, regulating strict fines for drunk driving
still affect them as consumption has been reduced by 20-30 per cent. The
Russia-Ukraine conflict also increasingly affected the sector due to the
interruption of the global supply chain, and related fuel hikes. Viet
added that the sector’s production has yet to recover due to the interruption
in the supply chain, rising input costs, and a lack of materials for
production, among others. However,
businesses in the beverage sector are concerned about recent proposals on
increasing the special consumption tax (SCT) for several products such as
alcoholic drinks, tobacco, and others. Some
experts say that this is a suitable time for such a hike to protect people’s
health, increase stage budget collection, and reduce social consequences.
Others say that any proposal on increasing the burden on businesses in the
next few years, such as an increase in SCT for alcoholic drinks and other
products, needs to be carefully considered. Mekong Delta Resilient Business
Network officially debuts The
Vietnam Chamber of Commerce and Industry (VCCI) chapter in the Mekong Delta
city of Can Tho and The Asia Foundation have organised the official debut
ceremony for the Mekong Delta Resilient Business Network (MRBN) on May 6. The
network is in charge of updating information and techniques in the field,
bolstering firms’ operations and their role in policymaking and social
responsibility. Established
last July, the network, under the sponsorship of the UPS Group, is the first
for firms to seek measures to improve business capacity and contribute to
policy building in the backdrop of climate change. It combines 39 members, 24
of which are businesses. According
to the Department of Water Resources Management under the Ministry of Natural
Resources and Environment, saline intrusion in this dry season would affect
210,000 hectares of rice, orchards, and rice-shrimp fields in the region. At
its peak, saltwater intrusion will likely affect 60,000ha of rice fields in
the coastal provinces, including 11,900ha in Tien Giang, 12,000ha in Ben Tre,
15,000ha in Tra Vinh, and 20,000ha in Soc Trang. Meanwhile,
43,300ha of fruit growing areas would be affected, including 3,100ha in Long
An, 21,800ha in Tien Giang, 16,000ha in Ben Tre, and 3,400ha in Soc Trang.
Around 107,400ha of integrated rice-shrimp fields would be hit in Kien Giang,
Ca Mau, Soc Trang, and Bac Lieu. By 2050, it is estimated that agricultural
output may decline by 30 per cent, equalling damages of over $520 million due
to desalination. Quang Tri province prioritises
investment in wind power to diversify energy sources The
central province of Quang Tri is striving to attract investment in the field
of renewable energy, especially wind power, to turn the locality into an
energy hub by 2030. Quang
Tri – The central province of Quang Tri is striving to attract investment in
the field of renewable energy, especially wind power, to turn the locality
into an energy hub by 2030. The
province’s western mountainous region has favourable conditions for wind
power development with an average wind speed of 6-8 metres per second and
vast terrain. The
number of wind power projects carried out in Quang Tri province increased
dramatically last year. Specifically, it has 17 more projects in operation,
bringing the total number of commercial wind power projects to 19 with a
total capacity of over 671 MW. Another 12 projects are under construction
this year. The
potential to attract investment in wind power in Quang Tri is still very
large. In addition to 31 wind power projects that have been put into
operation and are under construction, it has 53 projects that have been
submitted to the Ministry of Industry and Trade for consideration. Export sector is bright spot for
Vietnam economy New
statistics show that Vietnam’s exports in April expanded a staggering 25%
year-on-year at US$33.26 billion while imports reached US$32.19 billion, up
15.5%. In
the first 4 months of the year, Vietnam had a trade surplus of US$2.53
billion. A
Maybank Investment Securities (MIB) report said almost all sectors registered
positive export growth, with crude oil advancing 204% against March in which
it fell 6%, iron and steel rising 23.6%, textiles and garment surging 25.4%,
computers, electronics and components edging up 23.2% and phones and
components picking up 62.8%. Supply
chain disruptions caused by the military conflict between Russia and Ukraine
and China’s strict Covid lockdowns did not affect Vietnam’s export
performance. This was possibly because companies exported their inventories
to meet the demand of recovery, MIB’s report said. Statistics
from Mirae Asset Securities showed that April exports increased significantly
in main markets of Vietnam, including the U.S., the EU, China, South Korea
and Japan. Growth
was driven by businesses resuming operations, factories reopening and
capacity returning to normal. Increasing demands of international markets and
Vietnam’s better participation in global supply chains through key trade
agreements are others, according to Mirae Asset. Retail sales bounce back The
domestic retail market has bounced back after the Covid pandemic, fetching
VND1,777 trillion in total retail sales of consumer goods and services
between January and April, up 6.5% year-on-year. In
April alone, the country’s total retail sales amounted to VND455.5 trillion,
up 12.1% year-on-year and 3.1% month-on-month, according to data from the
General Statistics Office of Vietnam. During
the four-month period, the retail sales of goods grew 7.6% year-on-year. The
retail sales of food and foodstuffs saw a year-on-year increase of 13.2%,
while many other sectors suffered a decline in retail sales. Retail sales of
apparel and home appliances inched down 3.5% and 4.6% year-on-year,
respectively. The
Ministry of Industry and Trade attributed the decrease to the residents’
unstable income due to the impact of the pandemic. Some
major retailers said that customers returning to supermarkets are on the
rise. During the January-April period, AEON supermarkets saw the number of
shoppers rise by 10% against the pre-Covid period. US$364mln proposed for Dau Giay- Tan
Phu expressway construction The
Ministry of Transport (MoT) has just submitted to the Prime Minister the
first phase investment and construction project of Dau Giay- Tan Phu
expressway under the Public-Private Partnership (PPP) model for consideration
and approval. Accordingly,
the project has its starting point at the intersection with National Highway
No.1, which coincides with the ending point of the Ho Chi Minh City- Long
Thanh- Dau Giay expressway and the last point connecting with the Tan Phu-
Bao Loc expressway project through Dong Nai Province’s districts of Thong
Nhat, Dinh Quan, Xuan Loc and Tan Phu. Following
the road network development plan for the period of 2021-2030, with a vision
for 2050, Dau Giay- Tan Phu expressway project is designed with four lanes of
vehicles, 24.75- meter wide road surface; however, based on transport demand
and the ability to balance resources, the Ministry of Transport proposed a
scale of four lanes, 17-meter wide road surface, a maximum speed of 100
kilometers per hour and total investment capital of VND8,365 billion (US$364
million) for the first phase, including VND4,962 billion (US$216 million) for
construction cost and VND1,287 billion (US$56 million) for site clearance. The
MoT also proposed VND1,300 billion (nearly US$57 million) in support for site
clearance and construction costs from the State budget, an investment capital
of VND7,065 billion (US$307 million) mobilized by investors. The 20-
year-and- three-month payback period was also proposed for the investor with
starting price of VND1,700 (US$0.07) a kilometer. The price will increase to
VND3,400 (US$0.15) a kilometer for standard vehicles in 2042. It is expected
that the project will be started in 2023 and be completed in 2025. Shrimp, tra fish export growth seen
continuing in April Maintaining
an upward trend, Vietnam’s shrimp and tra fish exports continued to soar in
April, contributing to making seafood the spotlight of the export growth in
the year to date. The
overseas sales of tra fish in April amounted to US$297 million, more than
double the figure seen during the same period last year, according to data
released on May 6 by the Vietnam Association of Seafood Exporters and
Producers (VASEP). Between
January and April, Vietnam exported tra fish worth over US$950 million,
skyrocketing 94% year-on-year. April
saw the country’s outbound shipment of shrimp surging by 35% year-on-year at
US$406 million, raising the total shrimp export value in the first four
months of 2022 to US$1.36 billion, up 41.5% year-on-year. In
the four-month period, Vietnam’s seafood export turnover reached some US$3.6
billion, jumping 44.5% year-on-year. The export of shrimp and tra fish
accounted for US$2.31 billion of the total, according to VASEP. The
United States was Vietnam’s largest seafood buyer in the first four months of
the year, with a value of US$842 million, up 74% year-on-year. China came
second with a value of some US$578 million, a year-on-year upsurge of 94%. In
the first quarter of 2022, Vietnam’s seafood export fetched some US$2.5
billion, up 46% year-on-year. The shrimp export value during the
January-March period amounted to US$955 million, up 37% year-on-year, while
the country saw a year-on-year surge of 88% in tra fish outbound shipments
worth US$654 million. HCMC ready to welcome leading
investors After
the Covid-19 pandemic has been basically brought under control, HCMC has
continuously organized activities to call for investment and created
favorable conditions for businesses to carry out long-term projects,
contributing to the development of the country in general, HCMC and
enterprises particularly. The
city has many trade and investment promotion activities and seminars boosting
trade cooperation relations and promoting the city’s potential, strong
points, and typical products, including Investment promotion conferences in
Hoc Mon and Cu Chi districts. At
the conference, 10 investment registration certificates were handed over and
31 39 MoUs with a total investment capital of US$16 billion were signed
between the local authorities and foreign and domestic investors Besides,
there was the HCMC Economic Forum 2022 attracted the participation of over
900 delegates, including leaders of the Government, ministries and sectors,
and representatives from foreign diplomatic agencies and localities, and
international organizations; and a meeting between city leaders and 24 major
investors to collect suggestions from Investors about solutions for
socio-economic development of HCMC. Director
of HCMC Department of Planning and Investment Le Thi Huynh Mai informed that
the city has focused on attracting foreign investment for priority sectors,
including leading high tech companies taking a leadership role of the
production chain and using advanced technology, and having the strength in
the Research & Development (R&D) area; strong investors with latest
eco-friendly technologies; value-added services; the departments of IT and
industry using clean and renewable energy. From
the beginning to the present, HCMC has attracted US$1.28 billion FDI, up
12.18 percent of the total investment capital compared to the same period
last year. Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes |
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