The F.I.T and Crystal Bay groups on February 25 began the construction of the over-1-billion-USD Cap Padaran Mui Dinh project in the south-central coastal province of Ninh Thuan’s Thuan Nam district.

In its first phase, the 64ha Bai Trang resort will be built at a cost of about 150 million USD.

Emmanuel Delarue, CEO of the NDA Group – the design unit of the Cap Padaran Mui Dinh project, said that the design of Bai Trang hotel, which reflects the local Champa architecture, won the first prize at the 2019 Cityscape Awards.

Vietnam to import 2.4 million cubic meters of fuel in Q2

The Ministry of Industry and Trade has decided to ramp up fuel imports and asked 10 firms to import 2.4 million cubic meters of petrol and oil in the second quarter of 2022 to secure supply in the local market.

The increased imports are meant to ease the fuel shortage faced by many parts of the country due to falling domestic production, local media reported.

The 10 wholesale fuel firms are Petrolimex, PVOil, Hai Ha Waterway Transport Co, Hai Linh Company, Nam Song Hau Trading Investing Petroleum JSC, Xuyen Viet Oil Travel and Transport Trading Co., Thanh Le Corporation, PETIMEX, Thien Minh Duc Group, and MIPEC.

The firms have been asked to ensure that the fuel they import is not lower than the assigned volume, comply with regulations on fuel trading, and furnish their invoices and import-export receipts.

Over 55,000 tonnes of Vietnamese rice exported to RoK to enjoy 5 percent tax rate

The Republic of Korea (RoK) has offered a preferential tax rate of 5 percent for 55,112 tonnes of rice imported from Vietnam, according to the Asia-Africa Market Department under the Ministry of Industry and Trade.

The RoK’s Agro-Fisheries & Food Trade Corp (aT) has issued an international tender to purchase 27,791 tonnes of rice sourced from Vietnam. The rice includes non-glutinous brown long grain and long grain rice.

The deadline for registration to participate in the tender is February 25. Businesses can submit documents directly to the aT or through its electronic bidding system at www.atbid.co.kr. They should deliver five bags of rice samples with 2kg each to the corporation.

The RoK has applied a preferential tax rate of 5 percent for 408,700 tonnes of imported rice since 2020, the department said, adding that the tax rate applied for others is 513 percent.

Stocks tumble on Russia-Ukraine military conflict

The VN-Index of the Hochiminh Stock Exchange dropped 1.15%, or 17.45 points, to close at 1,494.85 points today, February 24.

Losing stocks outnumbered winning ones by 396 to 75. Some 1,160 million shares worth more than VND35 trillion changed hands on the southern market, soaring 67% in volume and 56% in value against the previous session.

In the VN30 basket, which comprises the 30 largest caps, 24 tickers dived and only five gained ground. Bank stocks TPB, HDB and CTG suffered the steepest decline as they ended 2.9-3.2% lower.

On the Hanoi Stock Exchange, the HNX-Index lost 1.73%, or 7.66 points, to close at 434,88 points, with 185 losing stocks and only 64 winning ones. More than 158.8 million shares worth some VND4.74 trillion were transacted on the northern market.

PM urges Dong Nai to hand over land for Long Thanh airport

The prime minister has urged Dong Nai Province to hand over land for the Long Thanh International Airport project by no later than September this year. For the big-ticket project, the Government requires 5,000 hectares of land in the province.

The chairman of the provincial government has been asked to be in charge of the land handover to ensure that 1,810 hectares, or a part of the total land required, is handed over in February, according to a recent announcement from the Government Office.

After the land handover, it would be necessary to start work on site leveling and speed up the design work for the traffic connectivity systems. In addition, preparedness for selecting contractors will need to be fast-tracked.

Lang Son to continue denying entry to fresh fruit trucks till Mar 5

According to the department, although it had issued a document announcing that it would stop allowing passage to vehicles transporting fresh fruits for export to China from February 16 to 25, around 50 vehicles transported fresh fruits to the province per day during the period, Thanh Nien newspaper reported.

It was expected that the fresh fruits would be consumed locally or transported to Cao Bang Province for export to China. However, the vehicles ended up being parked in Lang Son City as their drivers waited for opening of access to border gates, creating difficulties for the provincial authority in ensuring traffic safety and dealing with the backlog at border gates.

At present, an average of 90–100 vehicles have been completing customs procedures per day, officials said.

Meanwhile, more than 1,900 vehicles are currently stuck at the border gates in Lang Son, they informed. It will take 15–17 days to clear the backlog, they said.

Vehicles transporting fresh fruits to Lang Son for local consumption will not be allowed to travel to the border gates during the new suspension period, they added.

Some train services to be curtailed due to low passenger demand

The local railway sector will continue to suspend some train trips on the north-south route from March 1 due to a sharp decline in the number of passengers, said a representative for Saigon Railway Transport JSC.

On the Hanoi-HCMC route, trips on the following pairs of trains will be operated daily–SE3/SE4, SE5/SE6, SE7/SE8, and SE11/SE12. Meanwhile, the SE21/SE22 trains on the HCMC-Danang route will be suspended, Lao Dong newspaper reported.

Besides, trains linking HCMC and Nha Trang will only be operated on the weekends. The SNT2 train, which runs from Saigon to Nha Trang station, will depart on Thursdays and Fridays, while the SNT1 train on the other leg will depart on Fridays and Sundays.

On the HCMC-Phan Thiet rail route, the SPT1/SPT2 trains will offer services on Fridays, Saturdays, and Sundays.

In the north, Hanoi Railway Transport JSC has suspended the NA1/NA2 trains on the Hanoi-Vinh route since February 21.

FLC Group cooperates with RoK firm in service packages

Bamboo Airways and TD&T Co.,Ltd of the Republic of Korea (RoK) will cooperate in conducting charter flights bringing tourists from the RoK’s Incheon to Quy Nhon city in the south-central province of Binh Dinh for golf and leisure services of the FLC Group.

A comprehensive cooperation agreement was reached by FLC Group, its Bamboo Airways and TD&T within a seminar on Vietnam’s aviation in Quy Nhon on February 24.

Golf FLC Biscom and FLC Hotels & Resorts will also ink contracts with TD&T to provide FLC Group’s golf and luxury tour packages for Korean holidaymakers.

First study on consumer sentiment in real estate in Vietnam released

The Vietnam Consumer Sentiment Study was announced by Batdongsan.com.vn in a virtual event on February 24. It is the first of its kind in Vietnam looking into consumers’ sentiment in real estate.

In Vietnam, the study had been conducted online since last November, attracting 1,000 respondents. It aims to measure consumers’ perception on the property market and their expectations about the market outlook and future trends. The study will be released twice a year.

The study also shows that 52 percent of the respondents find property prices in Vietnam too high and the high prices remain the biggest challenge to potential buyers. Up to 72 percent believe that the prices are going down because of COVID-19, while 31 percent expect that property prices will continue to rise by over 10 percent within the next 5 years.

Vietnam, Chinese province eye to build safe export process at border gates

Representatives of the Ministry of Industry and Trade has coordinated with authorities of China’s Yunnan province in holding a teleconference on customs clearance of goods and pandemic prevention and control cooperation at border gates between the two sides.

During the event, they agreed to study a safe export process, and coordinate in building “green (safe) zones” at the border gates.

A mechanism for information exchange between border localities of Vietnam and Yunnan province will be created.

The ministry proposed permitting a third party to conduct COVID-19 tests using the RT-PCR method for Vietnam’s vehicles and exports.

It also asked the Chinese side to resume and extend the customs clearance time at several suspended border gates, and speed up the signing of a memorandum of understanding on cooperation between it and Yunnan authorities to create a framework for comprehensive collaboration in bilateral trade and economics.

The Yunnan side stress the need for both sides to maintain efforts to ensure pandemic prevention and control for the safety of both peoples.

Bright prospects ahead for coffee exports due to high export prices

There are bright prospects moving forward for local coffee exports this year with export turnover reaching US$3 million last year, according to the General Department of Vietnam Customs.

Especifically, coffee exports during the last month of 2021 witnessed a spectacular jump with 169,000 tonnes worth US$379 million, an increase of 57.6% in volume and 56.9% in value compared to November, 2021.

Most notably, processed coffee exports last year surged by 2.9% to reach US$569.46 million on-year. The nation currently exports processed coffee to more than 100 countries and territories globally, with the major markets including ASEAN, Europe, China, and the United States.

Gold prices climb to approximately VND67 million per tael

Local gold prices continued to rise on February 25, reaching approximately VND67 million per tael.

This comes following the morning trading session in which the Saigon Gold and Jewelry Company quoted its SJC gold price at VND65.5 million for buying and VND66.4 for selling.

These latest price changes represent rises of VND550,000 for buying and VND750,000 for selling in comparison with the prices recorded on February 24.

Furthermore, DOJI Group listed each tael of SJC gold at between VND65 million and VND66.4 million for buying and selling, thereby marking respective decreases of VND200,000 and VND1.1 million compared to the previous trading day.

Vietnamese specialty spices set to enter US supermarkets

Various types of salt and dipping sauce from various Vietnamese regions will hit the shelves of many supermarkets and restaurants in the United States from the third quarter of this year.

Food manufacturer Dh Foods recently signed a co-operation agreement with Heritage Beverage (HB), an importer and distributor of high-end Vietnamese products in the US.

The deal will see HB exclusively distribute Dh Foods' Vietnamese specialty spices to the US through such channels as Whole Foods, Costco, Cost Plus, Safeway, Albertson's, and Kroger, along with a number of Vietnamese restaurants in the US.

Tuna exports to US soar by 210%

Vietnamese tuna exports to the United States saw a year-on-year surge of 210% in January to reach nearly US$44 million, accounting for roughly 50% of the total export value of the product, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Frozen tuna fillets coded HS0304 remain the key export product, accounting for more than 66% of total export value.

Most notably, some products such as frozen tuna fillets coded HS0304 and HS16 increased by 172% and 278%, respectively, against the same period last year.

Farm profits threatened by soaring fertiliser prices

This year, due to higher fertiliser prices and low rice prices, the costs rose to VND3 million per sao while the revenues fell to VND5 million per sao, dragging down his profits.

Not only rice and coffee farmers are being hard-hit by high fertiliser prices, but also dragon fruit farmers. Dragon fruit farmers have been selling their produce at a loss since China tightened its COVID-19 preventive measures. Now, mounting fertiliser bills are adding to their woes. Many dragon fruit farmers in Binh Thuan Province said that they were likely to go bankrupt if the situation did not improve.

Parts of fertiliser used in Viet Nam are imports so its fertiliser prices normally move in line with the world market’s prices. Vietnamese fertiliser importer and supplier Vinacam forecasted that DAP fertiliser prices would continue to rise until China gets its exports back to normal.

In response to the continuously soaring prices, the Ministry of Agriculture and Rural Development has issued Directive No.653, urging authorities to instruct farmers how to efficiently use fertiliser to reduce farming costs.

Farmers have been called on to replace inorganic fertiliser with that made from domestic waste and compost, and organic fertiliser to cut costs further.

Viet Nam-India trade exceeds $13 billion

Two-way trade between Viet Nam and India in 2021 surpassed US$13 billion for the first time, up 36.5 per cent compared to the previous year.

The Viet Nam Trade Office in India cited data from the General Department of Viet Nam Customs, saying that Viet Nam exported $6.25 billion worth of goods in the year, up 20 per cent year-on-year; while India’s figure was $6.95 billion, up 56 per cent.

Viet Nam’s main exports to India in December last year were metals ($79.3 million); computers, electronic products and components ($78.8 million), phones and components ($76.7 million), other goods ($75.2 million), machinery, equipment, tools and spare parts ($49.8 million). Those that recorded strong growth included pepper (up 101 per cent), coffee (up 90 per cent), and rubber products (up 88 per cent).

Plastic raw materials, chemicals, rubber, and coal were Vietnamese items that witnessed the strongest growth in 2021, surging 231 per cent, 162 per cent and 138 per cent, respectively.

Meanwhile, mobile phones and components continued to record the largest export turnover, hitting more than $1.28 billion, accounting for about 21 per cent of Viet Nam’s total export value to India in 2021, the department said.

Bamboo Airways launches regular direct flights to Germany

Bamboo Airways has launched a direct route between Vietnam and Germany, with the first flight on the route taking off from Noi Bai International Airport in Hanoi on February 25 morning.

This is also the first regular direct fight to Europe conducted by the carrier this year, as part of its plan to expand the international network in the time ahead.

Initially, there will be two flights per week between Hanoi and Frankfurt. The frequency will be increased based on market demand.

An Giang official suggests building trademark for Mekong Delta catfish

Director of An Giang province's Department of Agriculture and Rural Development (DARD) Nguyen Sy Lam has suggested the Ministry of Agriculture and Rural Development (MARD) collaborate with relevant agencies to accelerate the building of a trademark for tra fish (catfish) in the Mekong Delta.

He made the proposal during a working session on February 23 with a delegation from the MARD led by Deputy Minister of Agriculture and Rural Development Phung Duc Tien, which reviewed the province's production in 2021 and launched tasks for 2022.

An Giang province has 1,230 hectares of catfish farming of which enterprises and affiliate households account for 1,049 hectares producing 400,000 – 450,000 tonnes of catfish per year. There are 21 processing plants with a capacity of 323,000 tonnes of catfish in the locality.

Banks to leverage EVFTA adjustments

With commitments under the EU-Vietnam Free Trade Agreement, local authorities are contemplating relaxing foreign ownership constraints that have previously hindered bank mergers as mandated by the accord.

Several local institutions are assertively attempting to bolster their overseas space to be more competitive on an elite scale. But Viet Capital Securities (VCSC) expressed concerns that the foreign ownership limit (FOL) legislation would make it impossible for all Vietnamese banks to expand their foreign space.

Sacombank and HDBank, however, might be the exception, as they are being rumoured to be among potential lenders to partner with international financial institutions rooted in Europe.

SOCBs, particularly VietinBank, which is the only one whose state ownership percentage is now close to the 65 per cent limit, would reap the benefits due to the vast potential of international deep-pocketed financiers. However, in February 2021, Decision No.22/NQ-CP superseded Decision 58, which mandated that at least 65 per cent of the voting shares in SOCBs must be held by the state, effective to 2025. Thus, VCSC does not anticipate any significant growth in FOL available for them in the near term.

For this EVFTA manifesto, VCSC perceives that Sacombank is the most sensible candidate, given that 32.5 per cent of the bank’s outstanding shares are now held as collateral for an unpaid obligation that has been settled with the Vietnam Asset Management Company (VAMC).

In late January, the International Finance Corporation (IFC), LeapFrog Investments, and DEG invested $165 million in convertible Tier 2 bonds issued by HDBank. IFC and its asset management company, as well as LeapFrog Investments and DEG, have subscribed $95 million, $60 million, and $10 million respectively to US dollar-denominated five-year-plus-one-day convertible Tier 2 bonds. The investors will have the option to convert the bonds into common shares of HDBank over the mutually agreed period.

F88 targets to go public in 2024 to reach $1 billion valuation

Phung Anh Tuan, chairman cum CEO of F88 – a major pawnshop chain in Vietnam – revealed that the company is aiming for a market valuation of roughly $1 billion if its plan to go public in 2024.

Specifically, the company targets to file for an initial public offering on the Ho Chi Minh Stock Exchange, according to Bloomberg.

Tuan said that F88 is in discussions with possible strategic shareholders, but he refused to provide further details. Mekong Capital and Granite Oak Advisors Ltd. are the company's major investors at this time.

F88 intends to boost its countrywide shop count to 800 by the end of this year, up from 521 by the end of 2021. Tuan went on to say that, in addition to its own branded locations, F88 would continue to develop via collaborations with prominent merchants and technology businesses, as Bloomberg reported.

With 521 transaction points, F88 is the biggest pawnshop chain in Vietnam, at least for the time being. However, the majority of the chain's business capital is raised via the issuance of bonds, which carry a hefty interest rate of 12 per cent per year.

More IPOs anticipated in coming months

Along with new stock issuances from listed firms, the market has been fuelled with lucrative initial public offerings (IPOs) from up-and-coming players.

The IPOs of Ton Dong A JSC and Nova Consumer JSC are expected to land within the next two weeks. Both firms opt for applying the book-building method for price discovery.

Ton Dong A plans to offer a total of 15.3 million stocks, of which nearly 3 million would be sold to existing shareholders and the remainder to the public.

According to Nova Consumer’s IPO plan, the company will sell 10.9 million shares entirely to the public at a starting price of $1.89, to raise around $20 million.

The majority of the sum would be used to acquire Sunrise Foods Co., Ltd., which owns more than 99 per cent of Anco Family Food, aiming at developing the company’s food chain.

On February 22, Picomat Plastic JSC, a leading PVC foam board manufacturer, finalised its IPO in auction form at the Hanoi Stock Exchange. With 120 individual investors joining the auction, ordered volume surpassed what was offered by 14.6 per cent.

Through a traditional auction, the Binh Duong Trading and Development JSC (TDC), in which leading contractor Becamex holds a 60 per cent stake, also completed its IPO on the same day. With 35 million stocks on offer, only four local individuals took part in the auction, buying out 50,000 shares.

Thu Thiem auctions: Two winners yet to pay land use costs

Two of the four enterprises that won the auctions for four land lots in the Thu Thiem New Urban Area in HCMC’s Thu Duc City on December 10 last year have proposed canceling their purchase contracts, while the remaining two have yet to pay the land use entitlement costs, according to the HCMC Tax Department. Seventeen days have passed since the deadline for the payment of the entitlement, it said.

On December 12 last year, Dream Republic Corporation won the auction for the 3-5 land lot and Sheen Mega JSC for the 3-8 land lot. The two lots spanning some 6,400 and 8,500 square meters, respectively, were auctioned for VND3.82 trillion and VND4 trillion, or 6.6 and four times higher than the starting price of over VND578 billion and VND1 trillion, respectively.

Meanwhile, lots 3-9 and 3-12 covering an area of over 5,000 and 10,000 square meters, respectively, fetched more than VND5 trillion and VND24.5 trillion, or seven and 8.3 times higher than the starting price, respectively.

However, Viet Star Real Estate Investment Co. Ltd, a subsidiary of Tan Hoang Minh Group, and Binh Minh Trading and Development Investment Co. Ltd., who won the auctions for the two plots, have proposed canceling their purchase contracts, which would entail their losing their deposits of nearly VND600 billion and VND140 billion, respectively.

On January 6, the HCMC Tax Department had asked the winners of the land auctions to pay the registration fee and half the land use cost by no later than 30 days. The remaining land use cost was to be submitted within 90 days of the announcement.

Though the first deadline passed 17 days ago, the enterprises have yet to fulfill their obligations.

After the April 6 deadline for the payment of the remaining land use cost, if Dream Republic Corporation and Sheen Mega JSC fail to pay the fee and cost, the HCMC Tax Department may freeze their bank accounts, seize their invoice amount, or even revoke their licenses. However, the penalties will need to be in line with the articles of the land sale contracts.

Rules of Origin of RCEP defined

The Minister of Industry and Trade has promulgated Circular No. 05/2022/TT-BCT on Rules of Origin of the Regional Comprehensive Economic Partnership (RCEP).

The Circular, which is scheduled to take effect on April 4, 2022, stipulates the Rules of Origin, including cases of originating goods, De Minimis, minimal operations and processes, direct consignment and operational certification procedures.

Accordingly, originating goods of Viet Nam exported to member countries of RCEP are considered for preferential tariff under the RCEP Agreement when a C/O is issued in accordance with the provisions of this Circular.

Originating goods imported into Viet Nam from member countries shall be considered for preferential tariff under the RCEP Agreement upon submission of C/O or self-certification of origin of goods issued by the approved exporter.

The Ministry of Industry and Trade internalized the provisions on tax differences because some countries in the RCEP such as China, the Republic of Korea, Japan, Indonesia, the Philippines, Thailand and Viet Nam apply different import tariff rates for the same product from the partner countries.

Source: VNA/SGT/VNS/VOV/VGP/VIR

VIETNAM BUSINESS NEWS FEBRUARY 24

VN rubber industry experiences strong profit growth in 2021