VIETNAM BUSINESS NEWS JUNE 10
16:58  Ambassador Pier Giorgio Aliberti, Head of the European Union (EU) Delegation to Vietnam, on June 9 had a working session with representatives of the People's Committee of Binh Duong to discuss investment opportunities in the southern province, especially in hi-technology and green industry development and environmental protection. Ambassador Aliberti expressed his
impression of Binh Duong’s dynamic development over the years, and said he
hopes that through the session, the EU Delegation will understand more about
the province’s needs as well as step up cooperation programmes and increase
priorities in areas that can attract investors to Binh Duong, such as energy,
renewable energy and green economic development. There is huge potential and
opportunities for the EU and Binh Duong to strengthen cooperation in
the coming time, he noted. Aliberti promised to continue to be a
bridge promoting cooperation between the EU and Vietnam in general and Binh
Duong in particular through specific and practical projects. Binh Duong has so far attracted 4,049
FDI projects with total registered capital of 39.5 billion USD from 65
countries and territories, including 403 projects worth over 6.7 billion USD
from 24 European countries and territories. Vietnam-Laos trade turnover on the
rise Trade revenue between Vietnam and Laos
in the first five months of this year stood at 690.6 million USD, up 21
percent year-on-year. According to the Vietnamese Trade
Office in Laos, Vietnam’s export value reached 255.02 million USD, down 9 percent,
but its import hit nearly 435.58 million USD, up 50 percent. Vietnam’s major export items included
iron and steel (36.5 million USD); oil and gas, fertilizer, fruits and
vegetables (nearly 20 million USD); and ceramics, electrical wires and
cables, paper, textiles and garments (nearly 7 million USD), among others. Meanwhile, it imported ore and other
minerals, fertiliser, wood and timber products, rubber, fruits and vegetables
from the neighbouring country. In May alone, bilateral trade was
valued at nearly 132.5 million USD, a year-on-year rise of 16.5 percent, of
which Vietnam’s exports were worth close to 62.8 million USD, up 0.8 percent,
and imports 69.7 million USD, up 35.5 percent. Int’l exhibitions on telecom,
electronic products and film begin in HCM City The international trade show on
information technology, telecommunication and electronic products (ICT COMM)
and the International Exhibition of Film and Television Technology (Telefilm
Vietnam) opened on June 9 at the Saigon Exhibition and Convention Centre. They feature nearly 200 booths by more
than 150 local and foreign exhibitors, including those from the US, Germany,
Russia, Japan, the Republic of Korea, India, China, Singapore, Indonesia,
Malaysia, the Philippines, Hong Kong (China), and Taiwan (China). Returning after a two-year gap due to
COVID-19, the shows, despite having a smaller scale compared to before the
pandemic, showcase the latest products and technologies in the
telecommunication, IT, media sectors, as well as products, services and
technologies used in film and television, TV content and programmes, and
broadcasting equipment and technology. Several companies who have
participated in all five previous editions such as Konica Minolta Business
Solutions, Du Hung Technology JCS, C-FIBER, and South Telecommunications
Software JSC, are displaying software, mobile applications, technology
solutions, hard drive devices, wireless technologies, internet services,
electronic products and services, radio and television services, and network
infrastructure. Visitors will have a chance to
experience innovative television application systems on the internet
inherited from the strong development of information technology and future TV
channels, and modern post-production special effects, they added. This year, the exhibition will also be
held online for 15 days to offer local and foreign firms in the
telecommunications, information technology, and TV and broadcasting sectors
greater opportunities to exchange information, learn, share experiences,
transfer technologies, and contribute to improving their competitiveness, he
said. Over 24 trillion VND worth of business
bonds issued in May Vietnamese businesses mobilised 24.1
trillion VND (1.08 billion USD) in May through one public and 34 private
corporate bond issuances, according to the Vietnam Bond Market Association
(VBMA). The association reported that
commercial banks took the lead in terms of value of bond issuance with nearly
14.63 trillion VND (631.26 million USD), accounting for 60.68 percent of the
total bond value. They were followed by real estate
firms with nearly 6.88 trillion VND, or 28.53 percent of the total value. Banks and real estate groups clinched
the top and second positions in terms of issuance values with 42.38 trillion
VND and 37.39 trillion VND, respectively. Top legislator urges for healthy
banking system National Assembly Chairman Vuong Dinh
Hue urged for a healthy banking system in which domestic lenders act as key
players and operate in a healthy, effective and transparent manner when
assessing the answers of State Bank Governor Nguyen Thi Hong during the
Q&A session of the 15th NA in Hanoi on June 9. Vietnamese lenders must meet banking
and safety standards and adopt international practices, Hue said, noting that
Vietnam is eyeing to enter the top four ASEAN countries in banking
development by 2025. He also emphasised that attention must be paid to
formulating, approving and implementing a project on restructuring
poor-performing banks with an aim of completing the project by the end of
2025. Hue asked the Government, the State
Bank of Vietnam (SBV) and ministries to actively, flexibly and
comprehensively employ monetary tools and policies; and combine them with
fiscal and macro-economic policies to keep inflation under control, stabilise
the macro-economy, support economic recovery and promptly respond to
fluctuations in both the international and local markets. The top legislator also required the
lenders to reduce operation costs and lower interest rates while regulators
must revise and amend related legal documents to improve legal framework on
monetary issues, foreign exchange governance and banking operation, thus
ensuring the safety of the credit institutions. It is critical to raise financial
capacity of the lenders, provide additional charter capital for state-owned
banks and prevent cross-investment, cross-ownership and ownership
manipulation, he said. The NA chairman also requested the SBV
to intensify inspection and supervision of the credit institutions, study the
use of cryptocurrency, promote financial technologies (fintech) in banking
and ensure information security for the banking system. Monetary policies to be managed
flexibly to rein in inflation: Deputy PM Deputy Prime Minister Le Minh Khai
clarified a number of issues raised by National Assembly (NA) deputies
regarding banking activities on June 9 as part of the ongoing NA third
meeting's question-and-answer session. The Deputy PM cited the State Bank of
Vietnam (SBV) Governor’s affirmation as saying that the increasing inflation
does not come from recent monetary policies, especially in the first five
months of this year, but from the rise in prices of commodities. He said that the Government will
continue to stick to NA resolutions and keep a close watch on the domestic
situation to manage monetary tools and policies in an active, flexible and
synchronous manner, aiming to curb inflation, stabilise the monetary and
foreign exchange markets, while drastically implementing monetary policy
solutions to support the implementation of the socio-economic recovery and
development programme. The Government will also make sure
that interest rate management will match macro balances as well as inflation
and monetary policy targets, and continue to remove difficulties for and support
COVID-19-hit businesses and ensure safety for banking activities, he stated. Regarding credit room, an issue that
draws NA deputies’ attention, Deputy PM asked the SBV to consider the
regulations, conditions and criteria for granting more credit rooms to ensure
coherence. Amazon and iDEA collaborate on
initiative to support e-commerce manpower development for VN The “Cross-border E-commerce: the
Breakthrough Era” initiative, launched by Amazon and acknowledged by the
Ministry of Industry and Trade, is a five-year programme with online and
offline training boot camps across Viet Nam. It aims to support cross-border
e-commerce talent for 10,000 businesses in the next five years from 2022 to
2026. The global e-commerce market is
forecast to grow strongly to reach US$7.4 trillion by 2025, driven by the
impacts of new-generation free trade agreements and the shift in business
models from traditional to digital platforms. This provides an opportunity
for Vietnamese companies to penetrate and expand export markets on the back
of Viet Nam's deep integration into the world economy. According to Deputy Minister of
Industry and Trade Nguyen Sinh Nhat Tan, e-commerce plays an important role
in driving Viet Nam’s economic development post-pandemic. In 2021, e-commerce sales increased 16
per cent to reach $13.7 billion, of which B2C (business-to-customers)
accounted for 6.5 per cent of total retail sales and service revenue. Viet
Nam’s e-commerce is forecast to grow by an average of 25 per cent per year
during 2022-25, reaching $35 billion by 2025 and occupying 10 per cent of
total retail sales and service revenue. Tan said the ministry has actively
applied information technology to reform administrative procedures in the
export sector to alleviate costs for export businesses, then boosting Viet
Nam’s imports and exports. Sizeable opportunities for e-commerce
exports in Viet Nam Amazon released the “Local Sellers,
Global Consumers: Capturing Viet Nam’s e-commerce export opportunity” report,
which surveyed more than 300 micro, small and medium enterprises (MSMEs) from
Viet Nam. According to the report, the annual
value of B2C e-commerce exports in Viet Nam is expected to grow by over 20
per cent to reach VND256.1 trillion ($11.1 billion) in 2026, from VND75.4
trillion ($3.3 billion) in 2021. “If B2C e-commerce was considered an
export category, it could be the fifth largest export category in Viet Nam in
five years,” the report said, noting that 64 per cent of this value could be
earned by MSMEs. About 88 per cent of surveyed firms
feel e-commerce is critical for their ability to export. Vietnamese MSMEs
also anticipated a greater sales growth forecast overseas (42 per cent) than
at home (11 per cent). However, amid the opportunities for
global expansion, the report revealed key challenges for enterprises to
overcome, including barriers in cost, regulations, information and
capabilities. More than 80 per cent of surveyed
firms admitted they lack information on relevant regulations overseas while
85 per cent believe they lack the ability to compete with other sellers
globally. The report is expected to give an
insightful base for authorities, policymakers and industry players to come up
with comprehensive recommendations and solutions supporting e-commerce
exporters. South Korean FDI into Vietnam boosted South Korea was among the three
largest foreign investors in Vietnam during the past three years, according
to the Vietnamese Ministry of Planning and Investment (MPI). The MPI reported that in the first
five months of this year, South Korean foreign direct investment (FDI) into
Vietnam was estimated at USD2.06 billion, up 12.6 percent on-year. South Korean firms have also increased
investment in Vietnam’s real estate sector. By late November last year, real
estate projects accounted for 13 percent of the country’s total FDI in
Vietnam, double the figure in 2018. Agriculture continues to spearhead
backbone of economy Minister of Planning and Investment
Nguyen Chi Dung emphasised that Vietnam's agricultural sector has seen the
strongest development ever, transforming from producing enough food to meet
the needs of the people to exporting at a high percentage. The minister also said that the
countryside has changed rapidly, and people's living standards have improved
markedly. He asserted that this result is
contributed by the hard work and creativity of farmers, the Party's
leadership, and the direction of the government. However, at the third session of the
15th National Assembly, the minister also agreed with the comments of some
delegates that the agricultural sector is facing a lot of difficulties and
challenges at present. Belt roads deemed driving force for
socioeconomic development At the third session of the 15th
National Assembly, Minister of Planning and Investment Nguyen Chi Dung
presented the investment plan for the belt roads 3 and 4 in Hanoi and Ho Chi
Minh City. Minister Dung said that the Belt Road
4 project around Hanoi and Belt Road 3 around Ho Chi Minh City link the
regions, promote the development of urbanisation, and have great significance
for socioeconomic development. These projects were planned initially
planned to be constructed in 2011-2020; however, due to various reasons, both
projects were delayed. The two roads are meant to shorten
transport distances, facilitate traffic connections with provinces and
cities, reduce the load on the radial traffic system of Hanoi and Ho Chi Minh
City, and promote investment efficiency for ongoing projects as well as
create new room for the development of available land. Belt Road 4 around Hanoi has a total length
of about 112.8 km. Belt Road 3 surrounding Ho Chi Minh City has a total
length of 76.34km. HCMC’s May retail sales at four-year
high May saw HCMC’s retail sales of goods
reaching an estimated VND57.8 trillion, up 3.1% month-on-month and 13.8%
year-on-year, the highest single-month growth rate since January 2019, the
HCMC Department of Industry and Trade told a press briefing on June 9. The city’s retail sales made a strong
rally two years after the Covid pandemic hit the country, the local media
reported. Numerous Covid economic recovery
measures aimed at supporting firms, improving the business climate, speeding
up digitalization and simplifying administrative procedures drove up the
performance of enterprises in HCMC in the first five months of 2022,
according to the department. Between January and May, the city’s
retail sales neared VND576 trillion, up 8.1% year-on-year. The retail sales
of food and foodstuffs saw a year-on-year increase of 14.2%, while cultural
and educational products enjoyed a 14.9% hike in retail sales. The retail
sales of wood and construction material, and automobiles expanded 8.5% and
14.3% year-on-year, respectively. These figures showed trade and service
activities in HCMC were bouncing back, said Bui Ta Hoang Vu, director of the
department. DGW to issue 72.5 million bonus shares Digiworld Corporation, which is listed
on the Hochiminh Stock Exchange with stock code DGW, has passed a plan to
issue 72.5 million bonus shares to its existing shareholders, with the ratio
of 8:10. The bonus shares will be issued out of
the company’s undistributed after-tax profit on its audited 2021 financial
statement. After the share issue, DGW expects to see its charter capital
rising from VND907 billion to over VND1.63 trillion. The company will issue the shares in
June or July this year after it receives the State Securities Commission’s
approval. In the first quarter of 2022, DGW gained
over VND7 trillion in revenue and nearly VND211 billion in after-tax profit,
reaching 27% and 26% of its 2022 targets, respectively. DGW’s share price hit its record high
of VND158,000 in April, but then the stock has seen much volatility. Internet-themed conference to gather
over 300 tech experts VNNIC Internet Conference 2022, a
series of events specializing in technology, will take place from June 22 to
25 in the central city of Danang, with over 300 tech experts at home and
abroad taking part. The event, organized by the Vietnam
Internet Network Information Center (VNNIC) under the Ministry of Information
and Communications, aims to open a new forum for Vietnam’s Internet
community, where experts meet and share their views to develop a sustainable
Internet network in Vietnam. Given the ongoing recovery from the
Covid pandemic, “The Future of the Internet” is chosen as the main theme of
this year’s event to discuss major issues and solutions for the Internet in
Vietnam. The event will comprise three workshops and one conference. It is expected to connect all members
of the Vietnam Internet community, from State-run agencies in charge of
information technology management to providers of Internet, mobile, and cloud
services, as well as major tech and Internet firms in the world such as
Cloudflare, NTT and Infoblox. VND1.5 trillion poured into key road
linking Ninh Thuan, Lam Dong Ninh Thuan Province is speeding up
work on a 62.5 kilometer-long road connecting it with Lam Dong Province, with
a total investment of some VND1.5 trillion. The Ninh Thuan Management Board of
Investment and Construction of Traffic Projects, the investor of the project,
said on June 9 that the road, which is set to start from Ninh Son District in
Ninh Thuan and end in Duc Trong District in Lam Dong, got off the ground in
early 2022. Around 45.5 kilometers of the road
will be built in Ninh Son District and over 17 kilometers in Duc Trong
District with capital to be sourced from the mid-term public investment fund
for the 2021-2025 period, the local media reported. The project comprises two components,
with the first running from Tan Son Town to Ma Noi Commune in Ninh Son
District. This section will be over 22 kilometers long and require more than
VND486 billion in investment. The second component is a section
stretching from Ma Noi Commune to Ta Nang Intersection in Duc Trong District,
with a total length of 40 kilometers. The first component of the road is set
to be completed and opened to traffic in June 2023, while the second component
is seeing the investor expedite the design process and make relevant
construction procedures to put it in operation in 2025. Firms in SHTP voice outcry over
procedures At a conference themed “Day for
Resolving Administrative Procedures” at the Saigon Hi-Tech Park in HCMC on
June 8, many enterprises active in the park decried obstacles over
administrative procedures and general and detailed planning, which have
delayed their projects for several years. Roundabout procedures and directives
from relevant agencies have annoyed firms and hindered them from carrying out
their projects. Thai Thanh Hai, a representative of
the Vietnam-Japan High Technology Investment Company, said that one of the
firm’s projects in the park was licensed by the Saigon Hi-Tech Park
management board in 2019, but until now, the project has yet to be conducted
due to obstacles over procedure adjustment planning. Several other firms are facing the
same fate, seeing their projects prolonged for many years due to complicated
administrative procedures and inconsistency between agencies. Another firm complained that its
detailed plan was passed by the management board, but was assessed as failing
to meet technical infrastructure standards by the Thu Duc government. The
firm received feedback from the Thu Duc government 17 months after submitting
the plan to the government. Responding to these complaints, a
representative of the Thu Duc City planning management division concluded
that most obstacles were related to general and detailed planning procedures. HCMC keens on developing waterway
tourism From the beginning of the year to the
present, more than 262,000 international tourists visited HCMC, up 100
percent compared to the same period last year. While the number of domestic
travelers was over two million, presenting a year-on-year increase of 108
percent. A wide range of different tourist products is launched, including
waterway tours. The dining and sightseeing boat tour
at night on the Saigon River is one of the highlight tourist products of the
TSTtourist Company. The 2.5 hour-long trip costing VND2.5 million per person
begins at the Bach Dang Wharf in District 1 and ends at Mui Den Do in
District 7. The tour returning to the departure point will run through Thu
Thiem Bridge 2 and Binh Loi Bridge in Binh Thanh District, said
communications director of TSTtourist Nguyen Minh Man. The new service gives a chance to
visitors to enjoy the city’s beautiful attractions in the glow of the evening
lights that are not less beautiful than other countries in the region, said
visitor Nguyen Thai of District 3 in HCMC. HCMC to consider adjustment of seaport
infrastructure fees in July Deputy Prime Minister Le Minh Khai
asked the HCMC People’s Committee to consider an adjustment of seaport
infrastructure fees for use of infrastructure facilities and public services
at seaport terminals for import-export activities in the city in July. The city suspended the collection of
fees for using infrastructure facilities and public services at seaports two
times and has officially collected seaport fees from April 1. Enterprises proposed a reduction of
seaport infrastructure fees to relieve the burden on companies due to the
Covid-19 pandemic and other domestic and global impacts, such as sharp fuel
price hike, high logistics costs. HCMC has officially conducted a
program on collecting infrastructure fees at seaports starting on April 1.
Revenue from collecting fees from businesses and individuals for use of
infrastructure facilities and public services at seaport terminals for
import-export activities will be used to upgrade transport infrastructure
systems and invest in technology and services. Activities for charitable
purposes, disaster relief, disease prevention, security and defense works
will be free of charge, said the municipal Department of Transport. The Port Authority of Inland Waterway
will take responsibility for collecting fees with the support and inspection
of the HCMC Department of Customs, port and logistics firms. Enterprises access the fee collection
system at the site thuphihatang.tphcm.gov.vn:8092/Home to find payment
receipt, and thuphihatang.tphcm.gov.vn:8081/Home to complete the declaration
form for fees of import or export goods as well as contact with the hotline
number 19001286 operated 24 hours a day for further information. Gov’t promotes M&A in banking
sector for higher competitiveness The Government would continue to
encourage banks to pursue M&A deals in the sector to enhance
competitiveness and sizes of operation. The move was part of the Government’s
project for restructuring credit institutions and addressing bad debts during
the 2021-2025 period that was signed off by Deputy Prime Minister Le Minh
Khai. The main objective of the project is
to ensure all banks adopting the Basel II standards have a capital adequacy
ratio (CAR) of at least 10-11% by 2023, and eventually to 11-12% by 2025. To reach these targets, the Government
called for banks to take measures to increase charter capital and CAR, along
with higher corporate governance capability of international standards. Based on supervision data and
assessment from independent auditing firms, banks, and financial companies
would be divided into three groups, including banks with high financial
muscles; mid-size banks; and weak banks with high risks. Germany’s DW considers Vietnam new
destination for European companies Vietnam's active economic performance
in recent years has captured the attention of some major European firms, said
German English-language news site DW in a June 8 article. Vietnam was one of the few Asian
countries that did not experience an economic contraction during the
coronavirus pandemic in 2020 and 2021, it said. This year, the country’s GDP
is expected to grow by around 5.5 percent, according to the World Bank. German automotive supplier Brose,
which has 11 factories in China, is currently deciding between Thailand and
Vietnam for a new production location. In December, Denmark's Lego announced
it will build a 1 billion USD factory near the southern business hub of Ho
Chi Minh City, one of the largest European investment projects in Vietnam to
date. It quoted Daniel Müller, manager at
the German Asia-Pacific Business Association, as saying: "It currently
looks as if, in particular, medium-sized companies are increasingly striving
to enter the Vietnam market.” Vietnam has become a more attractive
destination for investors, Raphael Mok, head of Asia Country Risk at Fitch
Solutions, told DW. RoK promotes transit tourism products
for Vietnamese travelers Airports in the Republic of Korea
(RoK) are set to provide a free transit experience for passengers traveling
from Vietnam to the United States, Canada, or Japan, including discounts on
services in lounges, free services guides, and tours. The statement was made by Lee Jae-hoon,
chief representative in Vietnam of the Korean Tourism Organisation (KTO), at
a seminar on “Vietnam-Korea Air Travel Promotion” held in Hanoi on June 9. Statistics indicate that the number of
passengers travelling from Vietnam to Incheon International Airport in 2019
stood at 7.62 million, including 500,000 transit passengers, ranking first
and second in Southeast Asia, respectively. Among the passengers, those from Hanoi
and Ho Chi Minh City numbered 3.8 million, making up half the total. In addition,
the two cities also accounted for 96% of transit passengers, equivalent to
400,000 travelers. Hanoi and Ho Chi Minh City are widely
considered to be strategic areas, with the number of tourists from these two
major cities anticipated to increase rapidly during the post-pandemic period. The recent trend of easing pandemic
prevention measures in both Vietnam and the RoK can be seen as laying the
groundwork for the revival of the air travel industry. Seminar promotes Vietnamese market to
RoK tourists More than 80 representatives of
various travel firms and partners in the Republic of Korea (RoK) gathered at
a seminar titled “Rediscover Vietnam” on June 9 as part of efforts to promote
Vietnamese aviation and tourism services in the RoK. The event was primarily aimed at
introducing aviation, tourism, and resort products by Vietnam Airlines, Thien
Minh Group, and Sun Group to the RoK’s outbound tourism market. Addressing the event, Vietnamese
Ambassador to the RoK Nguyen Vu Tung affirmed that Vietnam is a convenient,
safe, and attractive destination for international tourists, noting the
country has lifted all travel and entry restrictions for foreign visitors. Korean tourists who travel to Vietnam
for under 15 days do not require visas and will not be subject to quarantine
requirements or COVID-19 tests, he announced. The diplomat predicted that, alongside
efforts to improve the overall quality of tourism services and the
qualifications of tour guides, Vietnam is likely to welcome 4.3 million
visitors from the RoK this year, just as it had done before the COVID-19
pandemic. Source:
VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes |
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