More Japanese stores enter Vietnam - Lessons from Hello to Thank You  16:21                                   The local retail market used to have many famous foreign brands. Some have left while others have maintained moderate operations, but many Japanese retail brands have been successful in the market. Impressive display areas made entirely of bamboo at the first Uniqlo store in Hanoi have "snatched the hearts" of young people at beautiful check-in counters. The Japanese brand has shown its understanding of the history and culture of Hanoi.   At an Uniqlo store in Vietnam. And at Muji stores, in addition to fashion and furniture, they offer customers special services such as a coffee shop with a fine selection of tea and coffee, rice flour cakes and Japanese confectionery. The stores also sell a variety of fresh, quality and healthy fruit and vegetable products. At Muji in Hanoi, consumers can choose their favorite embroidery pattern from more than 300 available designs and letters and order embroidery on products they choose. Another example that shows how Japanese businesses please their customers is a story from Aeon Long Bien in Hanoi. A short video that showed hundreds of people flocking to the store to lie on the floor to avoid the scorching heat outside went viral. The very next day, this store added tables and chairs at the location where people had previously rested. The Vietnamese retail market used to have many famous foreign brands such as Metro Cash & Carry, Auchan, Bourbon, Lotte Mart, Familymart, Emart... Some have left while others have maintained moderate operations, while many Japanese retail brands have been successful in the market, perhaps from the ways they please Vietnamese consumers. Hello – Thank you In Japanese language, "Omotenashi" means welcoming and taking care of customers, with utmost dedication and sophistication. Entering any Uniqlo store, Vietnamese customers will be greeted with a warm "Welcome to Uniqlo!". And then there are caring and considerate sentences such as: "Have you found everything you need?" or "Thanks for waiting". The brand also uses the concept of "kaizen" which means constant search for perfection, and applies this to the in-store experience. When shopping, customers can easily find their favorite clothes through stacks of shirts and pants arranged by color and size in each area. Muji follows the principle of "cheaper is better for a reason". Mr. Tetsuya Nagaiwa, General Director of Muji Vietnam, says this brand steadfastly pursues three core principles, including: selecting the most suitable raw materials, optimizing production processes, and simplifying packaging. In particular, some items have very affordable prices thanks to supplies from local partners. The "one destination" model of Aeon Mall has brought new experiences to Vietnamese customers. Serving the masses, Aeon Mall has ordinary goods, with stalls of fashion goods. As they focus on the lower-end segment, they don't emphasize the brand-name factor. In addition, they integrate entertainment elements such as weekend events to draw crowds and create an environment for family members. The Japanese have succeeded in the Vietnamese market, and despite Covid-19, their stores are always packed with customers. Mr. Hirai Shinji, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, said Japanese corporations have expanded their business in Vietnam in recent years. After only two years, the famous casual retail chain Uniqlo now has 10 stores in the country and is a purchasing partner of 45 garment factories in Vietnam. At the end of October 2021, Uniqlo launched a new store in a shopping center in Ha Dong district, Hanoi. In early November, Uniqlo opened an online store in Vietnam with more than 15,000 products. Despite the pandemic and the gloomy situation of the retail market, Muji, a famous Japanese brand for household and life products, has opened new stores in Vietnam. Muji recently opened its first store in Hanoi and its second store in Vietnam after opening its first store in HCM City. The first store of Japan's largest cosmetic chain, Matsumoto Kiyoshi, also opened its doors to customers at Vincom Dong Khoi in HCM City. Matsumoto Kiyoshi plans to open about 10 standard stores with an area of 500-2,000 m2 within the next 3-5 years in major cities in Vietnam, besides hundreds of other stores in the country. Aeon Vietnam, since opening its first shopping center in Aeon Tan Phu Celadon in 2014, has expanded its system to six provinces and cities across the country. Aeon Vietnam is currently operating three shopping malls, three department stores and supermarkets, and 29 specialized stores. Takashimaya Group has invested about 5 billion yen ($47 million) in Vietnam since 2012, including Saigon Center Shopping Mall and other real estate. Takashimaya in Vietnam has a chain of flagship stores with 58 product brands appearing for the first time in Vietnam, including 31 Japanese brands. Many other Japanese retailers have started to expand their business in Vietnam as many localities have eased social distancing measures and the vaccination pace has increased rapidly. The joint venture between BRG Group and Sumitomo is expanding the FujiMart supermarket system. Takashimaya, Family Mart, MiniStop, 7-Eleven are also expanding. Mr. Hiroyuki Ono, representative of ACA Investment Fund, said the fund is looking to invest in good companies in the field of fashion retail and consumer services in Vietnam. With Japanese investors already earning market share in Vietnam, they are confident about the future. Mr. Tetsuya Nagaiwa, General Director of Muji Vietnam, said the Vietnam retail market potential is one of the best in the world. Vietnam has attracted many investors as the economy continues to grow and the population of young people with middle incomes is constantly increasing. Founder and CEO of Fast Retailing Tadashi Yanai emphasized that Vietnam is the company's leading important production base in Southeast Asia. The continuous expansion in the Vietnamese market of old and new names from Japan shows that the Vietnamese retail market is a "magnet" for Japanese retail giants. The increase in market share of Japanese retailers is a warning for domestic players. If Vietnamese businesses do not develop a methodical and long-term investment strategy, they will lose their position at home. VNN

 

Domestic investors help to create records in Vietnam's securities market  13:19  The stock market has set records in terms of scores, liquidity and the number of new accounts this year, as investors have seen it a shelter amid complex developments of the COVID-19 pandemic. The stock market has set records in terms of scores, liquidity and the number of new accounts this year. The stock market has set records in terms of scores, liquidity and the number of new accounts this year, as investors have seen it a shelter amid complex developments of the COVID-19 pandemic. The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HOSE) reached a new record high of 1,500.8 on November 25, up nearly 36 percent from late 2020. Liquidity is regularly at 1 billion USD, even hitting nearly 53 trillion VND (roughly 2.3 billion USD) on December 23. According to the Vietnam Securities Depository (VSD), by November 30, there were 4,083,325 accounts in Vietnam’s securities market, 1.3 million higher than the number in late 2020. Mirae Asset Securities (MAS) said in 2021, the VN-Index has successfully surpassed the 1,200 point mark and conquered the 1,500 point threshold, despite the economy experiencing two consecutive pandemic outbreaks. Banking, real estate, materials, basic construction, financial services were the market leaders, contributing 31 percent, 23 percent, 15 percent, 10 percent, and 8 percent, respectively to the growth of VN-Index. The firm reported that by the end of November 2021, VN-Index increased by nearly 34 percent compared to 2020 and was named among the markets with the highest profitability in the world. Foreign investors have maintained a net selling strategy in 2021, with a total net selling value of nearly 61.6 trillion VND by December 17, more than four times higher than the net selling level last year. Domestic individual investors net bought more than 84 trillion VND in the first 11 months of the year, which was the main driving force to increase market liquidity and VN-Index continuously set new peaks in 2021. In the context of low interest rates, the population’s idle money shifted to the securities investment channel, with the number of new accounts opened by domestic individuals remaining above 100,000 accounts each month. Experts from the Vietcombank Securities Company (VCBS) forecast that the securities market will continue to be an attractive investment channel, especially for individuals. Nguyen Thi Hoa, from ACB Securities Company (ACBS), held that the increasing engagement of domestic investors has signaled the continuous development of the market. A new trading platform of the HOSE, scheduled to be put into operation in the second quarter of 2022, will help to facilitate the development of new products and lure more investments in the market, she said. Echoing Hoa’s view, Tran Khanh Hien, Research Director of VNDirect Securities Corporation, said the growth pace would be maintained thanks to economic recovery and the participation of domestic individuals. However, the main risk for the market in 2022 is still higher-than-expected inflation, which may lead to the roll out of tightened monetary policies, she said./. VNA

 

Extending the dream of modernization  16:22                                  The goal of industrialization and modernization of the country to 2020 was set at the 8th National Party Congress in 1996 and it has gone through to the 13th National Party Congress in 2021. The Central Economic Commission recently held a series of events related to the country's industrialization program. On this occasion, VietNamNet introduces perspectives on the advantages and challenges for realizing Vietnam’s industrialization goals from now to 2045. Talking numbers According to the World Bank (WB), among enterprises in the manufacturing industry in Vietnam, 70% use machines controlled by humans, 20% work manually, 9% use machines controlled by computers and less than 1% use more advanced technology such as robots. More than 75% of small and medium enterprises (SMEs), and two thirds of large enterprises surveyed are skeptical about the economic benefits of investing in new technology. A report published in November by the Commonwealth Scientific and Industrial Research Organization (CSIRO) of Australia and the Vietnamese Ministry of Science and Technology shows that the percentage of Vietnamese with research and development activities in manufacturing industries is very low: electrical equipment manufacturing 17%, chemical manufacturing 15%, food processing 9%, rubber and plastic products 7%, leather and related products 6%, and textile and garment 5%. Dr. Nguyen Duc Hien, Deputy Head of the Central Economic Commission, quoted these reports at the third Industry 4.0 Summit and commented: “These facts show that development of smart production in the process of industrialization and modernization to 2030, with a vision to 2045, will face many difficulties and challenges.” The goal of industrialization and modernization of the country to 2020 was set at the 8th National Party Congress in 1996 and it has gone through to the 13th National Party Congress in 2021.   The structure of Vietnam's industry has changed positively. Three-decade target Through more than 25 years of implementing this goal, industry has obtained certain achievements. According to the Ministry of Industry and Trade, the manufacturing industry’s contribution to Vietnam’s GDP rose from 13% in 2010 to 16.7% in 2020. The industrial structure has changed positively in the direction of industrialization and modernization, gradually reducing the proportion of resource-intensive industries and low-tech industries, and increasing the proportion of medium- and high-tech industries. Industrial competitiveness has improved significantly. The Industrial Competition Report of the United Nations Industrial Development Organization (UNIDO) has brought Vietnam from the group of "developing economies" to the group of " emerging industrial economies”. However, the process of industrialization and modernization is still slow, the capacity and technological level of the economy is still poor, the creation of a foundation to basically become a modern industrialized country by 2020 "has not yet reached the goal". "Moreover, we have not been able to narrow the development gap and catch up with other countries in the region," said Dr. Nguyen Duc Hien, Deputy Head of the Central Economic Commission. Awareness of the process of industrialization and modernization is inadequate. Industrial development has not met the requirements of industrialization. The growth model is not yet based on science, technology and innovation; the autonomy of the economy is still low; the economy is still heavily dependent on outsiders; Vietnam has not paid due attention to the value chain and domestic supply... in order to improve labor productivity and competitiveness of the economy. The quality of human resources, especially high-quality human resources, has not yet met the requirements. Science, technology and innovation have not become the driving force for development. Dr. Hien’s comments are not new, but these are all thorny issues in the foundation of the economy. Barriers to overcome Deputy Minister of Industry and Trade Do Thang Hai said that the process of industrialization and modernization faces obstacles that need to be removed. The internal strength of the industry is still weak, the competitiveness of domestic industrial enterprises is not high, the added value created in the country is still low, the local industry mainly depends on external resources such as foreign direct investment capital, imported spare parts and components, and imported raw materials. In addition, industrial human resources are still weak, the percentage of trained workers is low, there is a lack of linkage between enterprises and training institutions, and managers of industrial enterprises are still inexperienced for competition in the global market. There is a lack of scientific theoretical background on production management, with no opportunity to access effective production management methods. A survey by the Ministry of Industry and Trade on the readiness of Vietnam’s industries before the 4th Industrial Revolution shows that the majority of Vietnamese enterprises are still standing outside this revolution, and industrial enterprises have low access to all the pillars of a smart manufacturing platform.   The new context poses requirement to implement industrialization and modernization with a new mindset and new approach. Photo: Le Anh Dung He said that industrial production faces difficulties in accessing capital, and the nature of the manufacturing sector requires a large amount of long-term investment capital, while social resources invested in production are very limited due to slow capital recovery and profit margins that are less attractive compared to investment in other fields such as real estate and finance. The Ministry of Industry and Trade said the cause of these bottlenecks is first of all the lack of a complete and attractive legal framework and policies to support domestic industrial enterprises to improve their competitiveness, to perform technological innovation, and to grow to become an important driving force for the development of the country. Moreover, the domestic sector lacks linkages with the FDI sector and the world market to be able to take advantage of technology transfer, and modern and effective production management methods. The lack of orientation in the allocation of social resources from the central to local levels and the private sector prevents investment flows from entering the production sector to create material wealth and prosperity for country. Long-term goals The Resolution of the 13th National Party Congress sets the goal that by 2025 the manufacturing industry will account for 25% of Vietnam’s GDP and the task of "Continuing to promote industrialization and modernization based on the foundation of science and technology, innovation and technological achievements of the fourth industrial revolution", and "Restructuring industry, raising technology levels, accelerating the transformation to digital technology, improving the self-control of the economy to be capable of deeply and effectively participating in global value chains”. Deputy Minister Hai said the target set for 2025 is quite challenging for Vietnam, which will require great effort and the participation of all stakeholders, as well as breakthroughs in policies to strongly promote the growth of the manufacturing industry, so that in 5 years, the contribution of the manufacturing industry to GDP will increase from 16.7% in 2020 to 25% in 2025. In the next strategic period, Vietnam’s industrialization and modernization process will be placed in a new context. It is the rise of protectionism, shifting investment flows, restructuring of the global supply chain, and the 4th Industrial Revolution that have changed production methods around the world. Domestically, there exists a changing population structure with a dynamic market of 100 million people, an expanding middle class, and a ‘golden’ population structure that will remain for the next two decades. Meanwhile, Vietnam’s labor and land costs are increasingly less competitive compared to emerging countries, and competition at home is increasing as the Vietnamese economy deeply integrates with the world. "This new context requires Vietnam to carry out industrialization and modernization with a new mindset and new approach," Hai said. VNN

 

Another corruption case in healthcare sector revealed  16:19                                  A new criminal case in which suspects inflated the price of rapid-test kit prices has been discovered. Previously, newspapers had reported turmoil in test kit prices. The suspects in the case The investigation agency has filed charges against and detained Phan Quoc Viet, CEO of Viet A Technology JSC, and Pham Duy Tuyen, Director of CDC Hai Duong, and others. Earlier, on December 10, the C03 Agency conducted an urgent search of 16 locations in eight localities, including Hanoi, HCM City, Hai Duong, Thua Thien - Hue, Binh Duong, Long An, Can Tho and Nghe An, and summoned testimony from 30 related subjects. According to the investigation agency, Viet inflated the prices of equipment, input materials and set the price at a high level of VND470,000; and promised to pay commissions to hospital leaders and provincial CDCs that bought its products. Viet A provided Covid-19 test kits to CDC (Centers for Disease Control and Prevention) and other medical units in 62 cities and provinces with revenue of VND4 trillion. Tuyen alone received a ‘commission’ of VND30 billion. The same ‘rule’ have been applied to other cities and provinces. In April 2020, CDC Hanoi official Nguyen Nhat Cam was detained for violations of regulations on bidding, causing serious consequences in Covid-19 testing procurement. The profit of several billions of dong Cam tried to pocket last year was small compared with the VND30 billion Tuyen collected from hundreds of thousands of test kits. All of this activity occurred in the midst of millions of people suffering from Covid-19, and thousands of medical staff, soldiers, police and volunteers working in epicenters to help people overcome the pandemic. Medical workers are struggling to fight the pandemic and working in dangerous conditions. Around VND5-6 million is the average monthly wage paid to one worker with 15-20 years of experience at grassroots healthcare units. Low pay and hard work are the reasons why many ward medical workers want to resign. In 2020, as many as 597 workers resigned from their post, while the figure was 968 in the first 10 months of the year. The total amount of money budgeted to support medical workers in HCM City is VND8.5 billion a month, which is just one quarter of the amount Tuyen pocketed from the business deal with Viet. Not only Hai Duong but other cities and provinces also bought test kits from Viet A at the price of VND470,000 and higher.  VNN

 

High inflation poses challenges  16:13 Large economies such as the US, the major partners of Vietnam, are recovering rapidly, which could bring more trade and investment opportunities to Vietnam. But economists have warned of high inflation. The Asian Development Bank (ADB) on December 14 adjusted its prediction about the economic growth rate in Southeast Asia in 2021 as countries in the region imposed restrictions to cope with the Delta variant. The predicted growth rate for 2021 was lowered by 0.1 percent to 3 percent. Meanwhile, the predicted rate for next year has been lifted to 5.1 percent as the economies are expected to loosen restrictions and recover business activities. The inflation rate is expected to be 2.1 percent this year and 2.7 percent next year, which will permit a more adaptable monetary policy and support the efforts to recover the economy after the pandemic. The major risk for growth prospects is the increase in the number of Covid-19 cases. The US economy is predicted to grow by 5 percent in the fourth quarter compared with the third quarter’s growth rate (which was 2 percent compared with the previous quarter). The Conference Board has predicted a 5.5 percent growth rate for 2021. The results confirm the US expects to recover the economy from the minus growth rate of last year. China is expected to have a stable recovery, but experts warn of risks. Its policies on management of the real estate sector, its strict zero-Covid policy, and the risk of energy shortages may put pressure on inflation and consumption. International financial institutions have lowered the growth rate in China in the fourth quarter and 2022. Oxford Economics has lowered the rate to 3.6 percent in the fourth quarter, while Goldman Sachs and Nomura have predicted a growth rate of under 5 percent for 2022. Europe is facing difficulties, including power price increases, supply chain disruptions, and a new Covid wave. However, European economies are still expected to have a strong recovery. In late November, the EU raised its expected growth rate from 4.8 percent to 5 percent. However, the strong recovery in Europe may lead to material shortages and price increases on goods. Inflation is expected to reach its peak of 2.6 percent this year before decreasing slightly in 2022. Meanwhile, Japan’s economy for the fifth time in the last eight quarters saw a minus 3 percent in growth rate in the third quarter. IMF, in its October forecast, reduced the growth rate of the economy to 2.4 percent from 2.8 percent. The ‘living together with Covid’ approach requires agencies to continue to act cautiously and quickly in terms of vaccinations, social distancing, testing and medical quarantine. ASEAN countries are seeing production going up again as restrictions have been loosened. Indonesia has reported a PMI (purchasing managers’ index)of 57.2 (it was 52.2 in September), and Singapore 54.5. Adapting to new circumstances Vietnam’s economy in the next months will still be affected by the pandemic. The country has changed from a zero-Covid approach to safe adaptation to new circumstances, and is expanding vaccination coverage. In the December report on Vietnam’s macroeconomy, the World Bank (WB) said the number of deaths out of the total number of Covid cases is on the decrease thanks to better vaccination coverage. The economic situation has improved, while the IIP and total goods and service retail turnover increased for the third consecutive month. Vietnam’s goods export turnover reached a record high of $31.9 billion, which helped the country maintain a trade surplus for the second consecutive month. Meanwhile, registered FDI recovered after falling in October. The CPI has increased slightly because of higher fuel demand, the recovery of non-food and foodstuff products and an increase in logistics costs, while credit growth remains stable, providing ample liquidity. The budget has had one more month of surplus thanks to higher state budget collections. The ‘living together with Covid’ approach requires agencies to continue to act cautiously and quickly in terms of vaccinations, social distancing, testing and medical quarantine. A reasonable fiscal policy is also necessary to stimulate demand from the private sector, which will help the economy recover. To reach that goal, economists have suggested providing financial support to workers and households adversely affected by Covid-19. With the current fiscal situation and concern about budget expenditures, one solution is reducing the VAT in 2022 to help increase private consumption. European businesses are now more optimistic about Vietnam’s business environment after the lockdown was lifted. The optimism is shown in EuroCham’s Q3 BCI (Business Climate Index) which increased slightly from a record low level in September. The retail decline slowed down in October when the government’s Resolution 128 on adaptation to the pandemic was released. However, economists predict the decline will prevail for the entire year of 2021. Businesses are still facing problems arising during the fourth Covid wave, including production chain disruptions, higher operation costs, a productivity decrease and labor shortages. In such conditions, there are risks of more bad debts. Regarding the size of the proposed economic stimulus package, economists believe that it should be from 2-3 percent to 8-10 percent of GDP for 2022 and 2023. However, no final decision has been made.  VNN

 

Private capital important for building electricity transmission lines in VN  15:21                If private investors build electricity transmission lines, this would help ease the burden on the state. However, there must be a clear investment policy that will ensure benefits for the state, businesses and people.   The National Assembly Standing Committee has convened its sixth session to discuss the amendment of eight laws, including the Electricity Law. The Government proposed amending the law to allow all economic sectors to invest in electricity transmission lines. National Assembly Chair Vuong Dinh Hue said the State is holding a monopoly in electricity transmission, including construction, operation and management. If the State opens the field (transmission lines and transmission stations, including backbone lines such as the 500 KV North-South) to all economic sectors, including foreign investors, it needs to specify which kinds of projects private investors can build as well as the projects the State will assign to the Electricity of Vietnam (EVN). Minister of Investment and Trade Nguyen Hong Dien said the draft law would specify the types of transmission grid works allowed for private investors. Allowing private investors to develop electricity transmission lines proves to be the best solution to settle the electricity shortage. If private investors are allowed to participate in the development of electricity transmission network, this would help the State control electricity prices, and prevent price fluctuations and threats to the electricity system. People will not have to incur additional costs, while state-owned companies would be relieved of the burden of developing transmission lines. The amount of money to be saved would be up to VND11 trillion a year. Foreign investors now make up more than half of privately run electricity generation projects, so they will also invest in electricity transmission projects as well. “They will pour money into the electricity transmission network, while the State will still control the electricity regulatory unit. This will allow the system to operate effectively,” Dien said. The Ministry of Industry and Trade (MOIT) is drafting the eighth national electricity development plan. Localities have registered many electricity generation projects with total capacity of hundreds of thousand of MW. However, the development of transmission lines has not been mentioned. Analysts say that while wind and solar power projects are booming, the investment in the transmission network is modest. This will lead to overloading of the transmission network, which will forces electricity plants to reduce generation capacity. Tran Dang Khoa from EVN said that investment in electricity generation proceeds faster than investment in transmission lines. It takes 5-7 years to develop an electricity generation project using traditional fuel, but only six months to develop a solar power project, and 12-18 months to develop wind power. Regarding investment in transmission lines, EVN has to strictly follow the procedures. It took 2-3 years to complete the 220 KV line. Trung Nam Group was the first private investor to invest in transmission lines. It built the 500 KV Trung Nam – Thuan Nam transmission line that receives input from its 450 MW solar power plant and other renewable power plants nearby. The electricity volume transmitted from its 450 MW plant via the 500 KV transformer station and transmission line over the last year accounts for only 8 percent of the transmission capacity. In the future, it will transmit the electricity of other plants as well the electricity from Van Phong Thermopower Plant. However, there can be problems when private investors build transmission networks. Trung Nam Group is facing problems, including the arrangement of funding sources to maintain the operation of the 500 KV Thuan Nam transmission network, since the electricity selling price has not been fixed for the capacity of 172.12 MW (only 277.88 MW out of 450 MW have electricity selling prices fixed). In a document to the Prime Minister, Ninh Thuan People’s Committee said while waiting for the handover of the Thuan Nam – Vinh Tan 500 KV line at zero dong to EVN, the plant transmits electricity to other projects in the province and bears transmission costs for the 500KV transformer station. “It’s unfair for Trung Nam Group which has to bear the same electricity output cuts as other solar power projects,” the document said. Local authorities have proposed that EVN prioritize using electricity from the 450 MW plant at the highest possible level, and set an electricity selling price for the 172.12 MW capacity.  VNN

 

VIETNAM BUSINESS NEWS DECEMBER 21  17:20                                  IFC invests $30 million in waste-to-energy plant in Vietnam The International Finance Corporation (IFC) has committed 30 million USD to the construction of a waste-to-energy plant in the northern province of Bac Ninh as part of support for Vietnam to help it reach net-zero carbon emissions by 2050. The financing package will allow T&J Green Energy Company Limited - a joint venture between Thuan Thanh Environment JSC, a Bac Ninh-based recycling company, and JFE Engineering Corporation, a leading Japanese company in the construction and operation of waste treatment facilities - to develop a modern waste-to-energy plant in Thuan Thanh district. The plant is expected to begin operations in 2024 and will incinerate 500 tonnes of daily and industrial solid waste every day. It aims to increase the province’s waste treatment capacity and reduce negative impact on the environment while protecting locals’ health. HCM City seeks to improve its lowly competitiveness ranking HCM City officials last week discussed ways to improve the city’s ranking in the Provincial Competitiveness Index (PCI). The city was in 14th place in 2020 and 2019 after slipping from 10th in 2018. HCM City will seek ways to improve the investment and business environment to make things easier, more transparent and fairer, and expects to become one of the top five in the list by 2025. It particularly aims to do well in the rankings for socio-economic management quality by speeding up digital transformation. It will make public all administrative procedures to make it easier for the public and businesses, reduce processing time and generally improve the quality of public services. The People’s Committee has instructed the Department of Planning and Investment to work with the VCCI to create benchmarks to assess the quality of work done by various departments and localities to improve the business environment and rise in the PCI through 2025.  Three packages to help businesses with digital transformation Three aid packages will be carried out in 2022 to help promote digital transformation in Vietnamese enterprises, according to the Ministry of Planning and Investment (MPI). Of the three packages to be launched, the first is designed for small-scaled firms, helping them embark on digital transformation. Each enterprise will be provided with 20 million - 50 million VND (870 - 2,180 USD) funded by the State budget per year. The second one will assist medium-sized ones with a maximum of 100 million VND per year. Meanwhile, the third targets exporters and will cover a maximum of 50 percent of the costs to open and maintain their accounts on transnational e-commerce platforms. Ministry of Planning and Investment to assess industrial zones’ operations The Ministry of Planning and Investment (MPI) has asked the management boards of industrial and economic zones in provinces and centrally-run cities to submit reports on the construction and development of industrial and coastal economic zones this year to make a comprehensive evaluation on their operations. Specifically, they are requested to focus on clarifying the achievements, shortcomings and suggest solutions (if any). It is necessary for the management boards to provide information on investment attraction at coastal economic zones, the use of land as well as the implementation of industrial part infrastructure this year. Reports should be submitted to the MPI before December 27, the ministry said.  Tra fish export value estimated at $1.54 billion this year Vietnam would earn 1.54 billion USD from tra fish export this year, up 3 percent from 2020, the Vietnam Association of Seafood Exporters and Producers (VASEP) forecast. The association attributed the rise to the demand in major markets such as the US, Europe and China reaching the pre-pandemic level. Vietnam’s tra fish shipments to China have begun to bounce back since March and April 2021, and the neighbouring country continues to be the biggest importer of Vietnamese tra fish. By late 2021, China is expected to account for 28 percent of Vietnam’s total tra fish exports, the association said. Reference exchange rate up VND6  The State Bank of Vietnam set the daily reference exchange rate at 23,190 VND/USD on December 21, up 6 VND from the previous day. With the current trading band of +/- 3 percent, the ceiling rate applicable to commercial banks during the day is 23,885 VND/USD and the floor rate 22,494 VND/USD. Exhibition promotes Vietnamese Pangasius exports in Australia The Viet Nam Pangasius Expo, held by the Vietnamese Embassy in Australia, has offered Australian visitors 100 virtual stalls of Vietnamese processed tra and basa (Pangasius) fish products. Taking place between December 16 and 20, the online exhibition was part of a series of activities to build the trademark of Vietnamese tra and basa fish in the market. It is scheduled to reopen on the website www.onlineworldexpo.com throughout January 2022. President’s Cambodia visit to boost bilateral economic-trade ties President Nguyen Xuan Phuc’s visit to Cambodia from December 21-22 affords both sides a chance to discuss major orientations and measures to further boost bilateral ties in the new period. According to the Ministry of Industry and Trade’s Department of Asian-African Markets, Vietnam was one of the leading trade partners of Cambodia. During the 2016-2020 period, two-way trade expanded by 17 percent annually on average, from 2.92 billion USD in 2015 to 5.32 billion USD in 2020. Apart from boosting exports to Cambodia, Vietnam continued offering preferential tariff on Cambodia’s exports to Vietnam. At present, Vietnam has 188 valid investment projects with a total registered capital of nearly 2.85 billion USD in Cambodia. Vietnam and Cambodia have supported each other in the fight against COVID-19. Vietnam presented PCR test kits worth around 300,000 USD together with 500,000 USD in cash and medical supplies to Cambodia. Meanwhile, Cambodia also gave Vietnam 200,000 Sinopharm vaccine doses, 1 million medical and 100,000 N95 masks, 100 oxygen generators and 350,000 USD in cash to Vietnam. Conference reviews ties between Vietnam, Middle East – Africa The Foreign Ministry chaired a mid-term review conference in both online and offline formats on December 20 on the implementation of a project on developing ties between Vietnam and the Middle East – Africa countries for the 2016-2025 period. Economic and investment ties between Vietnam and the region have seen big progress, with two-way trade between both sides surging nearly 1.4-fold over the past five years. A number of regional development funds have provided official development assistance for infrastructure and poverty reduction projects in Vietnam’s remote and mountainous areas. Concluding the event, Deputy Minister Hieu said the Foreign Ministry will actively coordinate with ministries, sectors and agencies to support localities and enterprises in enhancing cooperation with countries in the Middle East - African region. Vietnam International Arbitration Centre pledges support to FDI firms Vietnam should improve its legal framework to maintain the attractiveness of the domestic investment environment to foreign firms, Vu Tien Loc, President of the Vietnam International Arbitration Centre (VIAC) has said. According to Loc, foreign investors are still confident in the long-term prospect of the Vietnamese market, as well as the Vietnamese Government’s capacity to bring the pandemic under control. Statistics show that as of November 2021, foreign investors poured 26.46 billion USD into new projects, existing projects and share purchase, of which newly-registered capital was up 26.7 percent year-on-year. Russia’s pork exports to Vietnam fall significantly in November Russia’s pork exports to Vietnam plunged 39 percent year-on-year in November due to the latter’ abundant domestic supply and increasing competition from the US, according to the Russian Federal Center for the Development of Export of Agricultural Products (Agroexport). The weakening shipments were atrributed to Vietnamese importers not making advance payment as a result of falling global prices and difficulties in logistics. Russia remained Vietnam’s largest pork supplier from January to September 2021, accounting for 41 percent of the Southeast Asian country’s total imports, Agroexport said. However, the figure is on the decline due to competition from American rivals after Vietnam lowered its US frozen pork import tariffs to 10 percent from 15 percent. Exhibition promotes Vietnamese Pangasius exports in Australia The Viet Nam Pangasius Expo, held by the Vietnamese Embassy in Australia, has offered Australian visitors 100 virtual stalls of Vietnamese processed tra and basa (Pangasius) fish products. Taking place between December 16 and 20, the online exhibition was part of a series of activities to build the trademark of Vietnamese tra and basa fish in the market. It is scheduled to reopen on the website www.onlineworldexpo.com throughout January 2022. Vietnamese bivalve molluscs conquers demanding markets Due to an abundance of domestic raw materials, Vietnamese bivalve mollusc products continue to enjoy numerous advantages to increase exports, especially to the EU market According to details given by the Vietnam Association of Seafood Exporters and Producers (VASEP), the EU remains the largest consumer of Vietnamese bivalve molluscs, duly accounting for 62% of the country’s total export value. Vietnamese bivalve mollusk exports to the EU market by mid-November surged by 38.5% to reach US$73.7 million against the same period from last year, with key export products including white clams and frozen cooked brown clams. Experts attributed the rise in bivalve mollusc exports to the EU to the growing market demand, stable production of clams, and tax incentives following the implementation of the EU-Vietnam Free Trade Agreement (EVFTA). Vietnamese Goods Exhibition 2021 opens The Vietnamese Goods 2021 exhibition kicked off in Ho Chi Minh City on December 20 to introduce an array of high-quality products and services to consumers, whilst simultaneously elevating the profile of domestically-produced brands. The exhibition has also been an activity to support local businesses in strengthening linkages of production chains whilst seeking partners to conduct transactions. During the opening ceremony, the HCM City Business Association, the Ho Chi Minh City Department of External Relations, and the Vietnam Entrepreneurs Association in Australia signed a co-operation agreement to promote Vietnamese goods in the Australian market. There will be several business-to-business (B2B) and business-to-customer (B2C) schemes held during the event to provide an ideal venue for  firms to meet and promote the consumption of products. MARD to expand VietGap-standard agricultural production The Ministry of Agriculture and Rural Development is considering a project expanding 10 million hectares  of agricultural production with VietGap standards. The project will help the country’s agricultural sector acquire VietGap certificates for 3 million hectares of forests, 30,000 hectares of aquaculture and 15,000 livestock facilities by the year 2025. The project will also increase the percentage of semi-process and process agricultural, forestry and fishery product establishments getting Hazard Analysis and Critical Control Points (HACCP) and ISO 2200 or equivalent certificates by 10-15 per cent per year and about 80 per cent of co-operatives will be informed and updated on SPS regulations of the import market. By the year 2030, 10 million hectares of growing areas, 100,000 hectares of aquaculture and 25,000 livestock establishments will get VietGap certificates.  BB Group to invest $5 billion into project cluster in Quang Tri BB Group JSC has proposed investing in a 170 ha gas industry centre and 305 ha general port in Quang Tri Province. BB Group’s investment projects will include the BBG Quang Tri gas treatment plant, an LNG production plant, onshore gas depots and a floating gas storage unit with an estimated total investment of about US$4 billion to $5 billion over two different phases, from 2022-2025 and 2025-2030. BB Group also proposed the BBG Quang Tri general port project, which is planned to receive a series of ships, containers and bulk cargoes up to 100,000 DWT and liquid cargo ships with a tonnage of up to 180,000 DWT, at an estimated total investment of VND10 trillion ($434 million) from 2022 to 2025. Viet Nam looks to promote export to Brazil Vietnamese businesses need to work closer with partners in South America to boost exports to Brazil in the last month of 2021, according to the Viet Nam Trade Office in Brazil. Two-way trade between Viet Nam and Brazil hit US$5.74 billion in the last 11 months, up nearly 36.8 per cent year-on-year, while Viet Nam's exports to Brazil was valued at $2.04 billion, up 24.7 per cent year-on-year. Sharp increases were seen in the shipment of items such as iron and steel, furniture products, computers, electronic products, bamboo and rattan products, sedge carpets, vehicles and spare parts, technical fabrics, rubber, textile fibres, aquatic products, textile raw materials, footwear, rubber products, and bags. Central Highlands eyes sustainable coffee cultivation, higher export value The Central Highlands region, which includes Lam Dong, Dak Nong, Gia Lai, Kon Tum and Dak Lak, has 639,000ha of coffee, accounting for 92 per cent of Viet Nam’s total coffee area. The provinces in the region are facing the impact of climate change, high prices of input materials, and shortages of infrastructure and labourers for coffee cultivation and processing. Most coffee growing areas are planted by individual farmers on small farms. The linkages among farmers and companies are weak and the capacity of coffee farmers, farms, co-operatives and co-operative groups is limited. Viet Nam exports coffee products to more than 80 countries and territories, accounting for 20 - 22 per cent of the world’s total coffee export revenue. Masan appoints new group CFO  Masan Group Corporation (HSX: MSN) has announced a change of leadership in its financial organisation. In preparation for its next stage of development, Masan Group has appointed Do Thi Quynh Trang as group CFO to continue the development of the finance function and Michael H. Nguyen will be enabled to lead strategic initiatives and transactions. Accordingly, Michael H. Nguyen will continue as deputy CEO of Masan Group. Meanwhile, Do Thi Quynh Trang will be appointed as group CFO. In addition, Doan My Duyen will be tasked with focusing on her role as deputy CFO, resigning from her previous position as Masan’s chief accountant. Nguyen Huy Hung will be appointed as chief accountant. In this position, Hung will be responsible for the developing the financial reporting platform of the company. VinaCapital Ventures invests in Hub Global JSC VinaCapital Ventures, the technology investment platform of VinaCapital Group, on December 21 announced that it has invested in Hub Global JSC, a blockchain eco-platform that is focused on supporting the development of promising Vietnamese startups creating blockchain solutions across a range of verticals. The terms of the investment were not disclosed, although VinaCapital Ventures will become Hub Global’s largest external shareholder and will have a seat on its Board of Directors. Hyosung Vina Chemical launches $1.3 billion PP plant and LPG storage cavern Hyosung Vina Chemicals officially put its PP plant and underground LPG storage cavern into operation On December 17 at Cai Mep Industrial Park in the south-central province of Ba Ria-Vung Tau. The project was approved in principle in May 2018 with the total investment capital of $1.3 billion and the construction began later the same year. The PP 1 plant officially came into operation in March 2020, meanwhile, the above plant and LPG storage cavern started pilot operation in September this year. Once fully operational, the complex will operate with the capacity 650,000 tonnes of PP each year, 300,000 of which will be supplied to the Vietnamese market, helping to raise the competitiveness of domestic producers. Ho Chi Minh City honours exemplary products and services The Ho Chi Minh City Union of Business Associations (HUBA) held a ceremony on December 20 to honour notable products and services in the city in 2021. This is the third time that such an event has been held, aiming to discover and introduce Ho Chi Minh City’s notable products and services and encourage the development of the Ho Chi Minh City brand. This year the jury selected 86 products, 29 services and 8 property projects of 96 enterprises to honour. Cho Gao Canal upgrade project’s phase 2 gets off ground Work began on December 19, on the Cho Gao Canal upgrade project’s second phase, with a total investment of over VND1.3 trillion. The canal is an arterial inland waterway linking the Mekong Delta and HCMC. To implement the project, the government of Cho Gao District in Tien Giang had worked out costs for site clearance and compensation, built five resettlement areas for around 600 local households impacted by the project, with total funding for site clearance reaching around VND683 billion. The project is expected to reach completion in 2023. Currently, around 2,000 watercraft transport goods on this 28-kilometer-long canal per day. Transport operators start selling tickets for Tet with few passengers Bus transport operators in HCMC have started selling tickets for the upcoming Tet (Lunar New Year) holiday and seen only a few passengers. Because the Covid-19 pandemic remains complicated, passengers still fear coronavirus exposure. Many coaches have only 5-6 passengers on each trip. According to a representative of the Mien Tay (Westearn) Coach Station, only 50 percent of the transport operators have completed their plans of ticket selling for Tet, mainly transport of goods. The station sees around 120-130 buses departed per day carrying more than 1,000 paseengers, less than five percent compared to the prepandemic period. Carrires have offered cheap flight tickets but they have not attracted customers. VietJet Air’s return ticket on HCMC-Hanoi route for flights departed from January 25-31, 2022 and February 2-10 is VND3.8 million (US$165.6), decreased by half compared with the same period last year while Bamboo Airways costs VND5.3 million, VND3.3 lower million lower than the same period in the previous year. Vietnam Airlines offers a promotional price of VND5.68 million, down VND3.8 million compared to the same period last year. Vietnam's GDP growth in 2021 set to hit 3% in 2021 With Vietnam’s GDP growth in the fourth quarter set to rebound to 7% year-on-year, the country’s 2021 full-year economic expansion may go up to 3%, according to Singapore-based United Overseas Bank (UOB). The positive economic performance was due to the fact that business activities have gradually resumed to normalcy since early October, after having suffered from an unprecedented contraction in headline GDP growth in the third quarter of -6.17%, as a result of the nationwide lockdowns and mobility restrictions in response to the fourth wave of Covid-19 infections, noted the UOB in its latest macro report. Barring any major disruptions such as those from the Omicron variant, Vietnam is likely to move towards a more “normal” economic expansion of 7.4% in 2022, higher than the Government’s targets of 6-6.5%, considering the low bases in 2020 and 2021 as well as the strength of its external sectors. Source: VNS/VNA/VOV/SGT/SGGP/VIR/Hanoitimes