Bilateral trade between Viet Nam and the US set a new milestone, hitting US$111.56 billion in 2021, up nearly $21 billion over the previous year, according to the General Department of Customs.

The impressive figure made the US the second trade partner having import-export turnover with Viet Nam reaching the $100 billion mark after China.

Last year Viet Nam's exports to the US rose 25 per cent to nearly $96.3 billion, accounting for 28.6 per cent of the country's total exports.

Among Viet Nam's major export items to the US were machinery, equipment and parts with $17.82 billion, up 46 per cent; textiles and garments ($16,1 billion, up 15 per cent); computers, electronics and components ($12.76 billion; up 23 per cent); handsets and parts ($9.69 billion, up 10.3 per cent); footwear ($7.42 billion, up 18 per cent); and wood and wooden products ($8.8 billion, up 23 per cent).

Last year, the country imported nearly $15.27 billion worth of goods from the US, mainly computers, electronics and components as well as machinery, equipment and parts.

Reference exchange rate down 23 VND on January 21

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at 23,077 VND/USD on January 21, down 23 VND from the previous day.

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,769 VND/USD and the floor rate 22,384 VND/USD.

Ha Noi goods consumption to increase for Tet

Demand for goods for Tet in Ha Noi is forecast to increase by 3 - 20 per cent depending on products, according to the Ha Noi Department of Industry and Trade.

In a month, Ha Noi needs 92,970 tonnes of rice; 18,594 tonnes of live pigs; 5,350 tonnes of beef; 103,300 tonnes of vegetables; 52,000 tonnes of fruit; 123.9 million eggs; and 6,198 tonnes of poultry.

The capital can supply 66-94 per cent of the demand, excluding the supply of poultry, which is 72 per cent higher than demand.

About 44 producers, traders and cooperatives in Ha Noi have registered to supply the essential goods worth VND18 trillion, higher than the department's plan of VND5.6 trillion.

They will also bring price stabilised goods to more than 20,000 points of sale, including 123 supermarkets, 6,800 convenience stores, 13,000 specialised stores, 1,900 selling points at traditional markets, and 500 collective kitchens.

Room remains for Vietnam to boost exports to Hungary

Thanks to the EU - Viet Nam Free Trade Agreement (EVFTA) that took effect on August 1, 2020, bilateral trade topped US$1 billion for the first time in 2020 to hit $1.3 billion, surging 73.88 per cent from the previous year. The turnover included $925 million in Viet Nam’s exports, shooting up 126.69 per cent, according to the European-American Market Department at the Ministry of Industry and Trade.

Due to the COVID-19 pandemic, bilateral trade dropped 15.2 per cent to slightly over $1 billion in 2021. Viet Nam exported $570 million worth of goods to Hungary and imported $529 million in return, respectively declining 38.4 per cent and rising 42.4 per cent.

Pham Van Cong, Trade Counsellor and head of Viet Nam’s trade office in Hungary, said trade between the two countries has increased in recent years, with electronic devices making the largest contribution. Besides, agricultural and food products are also potential commodities.

VIB profits up 38 per cent in 2021

Vietnam International Bank (VIB) had a great performance in 2021 with a profit exceeding VND8 trillion (over US$343 million), up 38 per cent year-on-year, according to its business results released on Wednesday.

Last year, VIB's total operating income saw a positive yearly increase of 33 per cent to hit nearly VND15 trillion. Twenty per cent of which came from fee income thanks to its leading market share in many product and service segments such as bancassurance and cards.

Meanwhile, the bank's net interest income topped VND12 trillion, up 39 per cent year-on-year thanks to its net profit margin expansion of 4.4 per cent and funding costs which decreased 1.1 percentage point compared to the previous year.

As of December 31, 2021, VIB's total assets reached nearly VND310 trillion, up 27 per cent compared to the beginning of the year. Its outstanding credit balance hit more than VND200 trillion, up 19 per cent.

Vietnam, RoK businesses boost cooperation in tourism, economic recovery

The Vietnam-Korea Business and Investment Association (VKBIA) and Yongpyung Resort Group signed a Memorandum of Understanding (MoU) in Gangwon, the Republic of Korea on January 20 to boost cooperation between the Vietnamese and Korean businesses in tourism promotion and economic recovery post pandemic.

Under the deal, VKBIA and Yongpyung Resort will co-organise various culture and trade promotion events between Vietnam and the RoK, expand opportunities for cooperation and investment from each other’s members and partners, establish social support programmes, and foster tourism, cultural exchanges and market connection between the two countries, and in Southeast and Northeast Asia at large.

State strictly handles real-estate tax avoidance

The Ministry of Finance has proposed police coordinate with tax departments to investigate and handle tax avoidance in real estate buying and selling.

This is part of proposals that Minister of Finance Ho Duc Phoc sent to the Ministry of Public Security, the Ministry of Justice and the people's committees of the provinces and centrally-run cities to fight tax losses in real estate transactions.

This ministry has also proposed that justice departments and tax departments request notary agencies to guide individuals, real estate project investors and real estate trading enterprises in declaring actual transaction prices.

Income tax revenue from real estate transactions, inheritance and gift of real estate every year has ranked second among sources of income tax, accounting for over 10 per cent of total tax revenue.

However, the amount of just over VND10 trillion per year is inadequate compared to the actual transactions. It is common for the declaration of real estate prices to be lower than the actual transaction prices to reduce the amount of tax payable.

Airlines, tourism firms cooperate to offer attractive products

Deputy General Director at Saigontourist Group Truong Duc Hung said that his company has coordinated with national flag carrier Vietnam Airlines to supply promotional tour combo packages during Tet, including luxury hotel and airline ticket services at preferential prices in Ho Chi Minh City and several tourist destinations with direct flights.

Meanwhile, the collaboration between low-cost airline Vietjet Air and the Vinpearl offer package tours including round-trip airfare and 5-star vacation services to Vinpearl’s resorts in central Da Nang and Nha Trang cities, and Mekong Delta Phu Quoc city.

Sun Group and Vietnam Airlines have also enhanced cooperation to develop package travel products with many incentives for travellers. Sun Group has pledged to reduce at least 10 percent of service price for tourists using its services in Asia Park in Da Nang; and at least 5 percent for those staying at its accommodation in Fansispan (Lao Cai), Ha Long (Quang Ninh), Hon Thom (Phu Quoc) and Ba Den (Tay  Ninh).

Vietnam Airlines also promised a 30-percent discount on economy fares for all visitors who will stay at Sun Group’s facilities.

Quang Ninh province announces DDCI results in 2021

The northern province of Quang Ninh announced its District and Department Competitiveness Index (DDCI) in 2021 during a conference in Ha Long city on January 20.

Among 22 departments and sectors, the Department of Customs took the first position with 78.48 points, while Quang Yen township led 13 district-level localities across the province with 79.83 points.

2021 was the seventh year that Quang Ninh had conducted DDCI assessments, which also aimed to gather feedback from businesses on administrative services of each department and sector, as well as the province’s logistics services.

The DDCI rankings were based on the evaluation of 1,972 businesses, cooperatives and business households.

Fiber export turnover reach 5.5 billion USD in 2021

Vietnam’s export turnover of fiber of all types reached a record high of 5.5 billion USD in 2021, despite the severe impact of the COVID-19 pandemic. 

It was up 13 percent in volume and 50 percent in value against last year’s figures, Dau tu (Investment) newspaper reported.

Last year, the price of fiber rose by 25 percent compared to 2020. Of these, cotton experienced the highest growth, followed by polyviscose and polycotton. 

Mekong Delta localities promote investment, trade with US

A seminar was held in An Giang province on January 20 to promote trade and investment between the US and the Mekong Delta localities.

The event was hosted by the People’s Committee of An Giang, US Consulate General in HCM City’s Trade Office, and the Ministry of Planning and Investment’s Investment Promotion Centre for the south.

It aims to introduce business and investment opportunities in the Mekong Delta province of An Giang and some other regional localities to potential US partners and to effectively boost trade and investment between the two countries.

During the event, the US Trade Office briefed the regional businesses on investment programme SelectUSA, and SelectUSA Investment Summit to be held in National Harbour, the state of Maryland in June 2022.

French hypermarket introduces Vietnam’s cuisine, commodities

A programme to promote Vietnam’s Tet culture and cuisine kicked off at Carrefour Ormesson hypermarket in Ormesson city of France on January 20.

This is the first time a Vietnamese Lunar New Year festival has been held at the Carrefour retail distribution system. The event is part of the activities in the framework of tripartite cooperation between the Vietnam Trade Office in France, importers and retail distributors, to introduce the traditional culture and products of Vietnam to French people.

Ambassador Dinh Toan Thang affirmed this is a good opportunity for Carrefour to conquer the segment of consumers that have the demand to use healthy food.

According to Vu Anh Son, Head of Vietnam Trade Office in France, a project to promote enterprises to directly participate in foreign distribution networks has been deployed by the Ministry of Industry and Trade since 2015.

Masan Group reports $377.31 million profits for 2021

Masan Group Corporation’s consolidated net revenues increased by 14.8 per cent in fiscal 2021 to VND88.63 trillion (US$3.9 billion), driven by strong topline growth across nearly all businesses, preliminary unaudited financial results for the year released on January 19 show.

Consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) were up 57.7 per cent to VND16.28 trillion ($717.89 million).

Net profit post minority interest grew by 593.8 per cent to VND8.56 trillion ($377.31 million).

VN-Index grows for second day after realty stocks recover

Shares rose strongly in the latter half of the afternoon session, lifting the VN-Index up 1.56 per cent to close Thursday at 1,465.30 points.

On the Ha Noi Stock Exchange, the HNX-Index advanced for the first time in the past four sessions, up 0.61 per cent to end at 411.8 points.

Liquidity declined slightly compared to the previous sessions, totalling nearly 873 million shares worth VND24.8 trillion (US$1.1 billion) traded in the two markets.

According to MB Securities Co (MBS), the gaining momentum will likely spread to the whole market in the coming sessions when the selling pressure in speculative stocks is gradually decreasing.

Foreign traders were net sellers for a value of VND156 billion in HCM City’s market while they were responsible for a net buy value of VND21 billion on the Ha Noi’s bourse.

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

VIETNAM BUSINESS NEWS JANUARY 20

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