Viet Nam’s stock market finished lower on Friday as selling pressure strengthened in the afternoon session, affecting investors' sentiment. Meanwhile, foreign investors still fled the market.

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index decreased by 7.17 points, or 0.53 per cent, to 1,344.89 points. The market’s breadth was negative with 269 stocks declining, while 137 stocks rose.

However, the liquidity increased sharply as nearly 738.2 million shares were traded on the southern bourse, worth more than VND23.3 trillion (US$1.02 billion).

The index fell as bank stocks faced a strong sell-off yesterday, weighing on the whole market. The VN30-Index lost 11.93 points, or 0.82 per cent, to 1,441.83 points. Nineteen of the 30 biggest stocks in the VN30 basket declined, while ten stocks rose and one ended flat.

Many big bank stocks posted losses of more than 1 per cent in the last trading session of the week. Of which Vietcombank (VCB) fell the most in market capitalisation, down 1.34 per cent to VND95,900 per share. VPBank (VPB), Vietinbank (CTG), Vietnam International Commercial Joint Stock Bank (VIB) and Sacombank (STB) reported losses of more than 2 per cent.

Other big names in the sector including Techcombank (TCB), BIDV (BID) and MBBank (MBB) also plunged more than 1 per cent.

Also adding to the pressure, some pillar stocks in real estate and manufacturing such as Vinhomes (VHM), Masan Group (MSN) and Saigon Beer - Alcohol - Beverage Corporation (SAB) recorded sharp falls in a range of 1.41 - 1.82 per cent.

The rise in energy stocks was the bright spot yesterday as they still received support from higher oil prices and global recovering fuel demand.

PetroVietnam Gas (PVGas, GAS) was the biggest gainer yesterday, up 6.7 per cent. PetroVietnam Power Corporation (POW) also climbed nearly 2.1 per cent, while PetroVietnam Drilling & Well Services Corporation (PVD) jumped 3.51 per cent.

The HNX-Index on the Ha Noi Stock Exchange (HNX) also edged down yesterday on strong selling force. The index dropped 0.24 per cent to 356.49 points.

During the trading session, over VND2.8 trillion was poured into the market, equivalent to a trading volume of nearly 129 million shares.

On the other hand, foreign investors continued to be net sellers on HOSE as they net sold a value of VND536.61 billion. However, they net bought a value of VND123.18 million on the northern market.

The fleeing of foreign investors was the downside of the market in the third quarter.

Data compiled by ndh.vn showed that foreign investors bought nearly 2.38 billion shares, worth over VND112.3 trillion, while selling more than 2.53 billion shares, worth nearly VND122.2 trillion. Therefore, they net sold a total of 157.4 million shares last quarter, equivalent to a net sold value of VND9.86 trillion.

HCMC issues Directive 18 on gradual economic recovery from Oct 1

HCMC Chairman Phan Van Mai this afternoon, October 1, signed Directive No. 18 on adjusting Covid infection prevention and control measures and gradually reopening the economy.
VNEID, Y te HCM mobile apps while commuting on streets

Residents have been asked to use the VNEID and Y te HCM mobile apps to declare their destinations and health conditions before going out. 

If they do not have smartphones to download the above two apps, they can show proof of their recovery from Covid-19 in the last 180 days or their partial or full vaccination done 14 days before.

When the newly developed mobile app PC-Covid is ready for use, it would replace the VNEID and Y te HCM apps. PC-Covid would be a single mobility and health declaration app which people would have to use when they travel within Vietnam.

Resumption of eight groups of services

Directive No. 18 contains a list of eight groups of entities or services that are allowed to resume operations from October 1, including:

Governmental agencies and state organizations that need to have employees at work.

Foreign commissions, international organizations and foreign economic and cultural offices in the city.
Medical facilities and public and private facilities trading in pharmaceuticals, medical supplies and equipment.
Manufacturing and trading facilities.

Religious organizations, resorts, hotels, motels, cultural and sporting services, weddings and funerals.
Education and training activities for fully vaccinated people.Indoor conventions and seminars with 10 attendees at most; in case 90% of the attendees have been fully vaccinated against Covid, 60 people at most will be allowed.

Outdoor events with 15 attendees at most; in case 90% of the attendees have been fully vaccinated against Covid, 90 people will be allowed.

Special cases must be approved by the competent agencies. 
Some services remain shut

Directive No. 18 regulates that some services are not allowed to reopen, including:

Bars, beer clubs, pubs, spas, massage parlors, beauty services, dine-in services, cinemas, circuses, dance clubs, karaoke parlors and game parlors.
Makeshift markets, street vendors and lottery ticket sellers.
Other activities except eight groups of services allowed to reopen in accordance with this directive.
The People’s Committee of HCMC asked the districts’ authorities to effectively apply Directive No. 18 and establish inspection teams to regularly inspect manufacturing and trading facilities and service providers, and immediately handle violations. 

MoH recommends not testing fully vaccinated workers

The Ministry of Health (MoH) has recommended not conducting periodic SARS-CoV-2 testing for fully vaccinated workers who received the last shot at least 14 days but not more than 12 months ago, or former patients who have recovered from the disease in the last six months.

The recommendation was made as part of an urgent document sent on September 30 by the ministry to governmental agencies, sectors, provinces and centrally-run cities regarding SARS-CoV-2 testing for business and production facilities.

The move was made after Prime Minister Phạm Minh Chính directed the MoH to urgently issue COVID-19 self-testing guidelines for enterprises, thus creating favourable conditions for them to stay proactive in their business activities while ensuring safety in pandemic prevention and control.

According to the COVID-19 self-testing guidance issued on September 30, the ministry has proposed conducting screening tests for all cases of employees with suspected COVID-19 symptoms such as cough, fever, and shortness of breath, and those with related epidemiological factors.

For enterprises in high-risk provinces and cities, real time RT-PCR or rapid antigen tests are required every week for 20 per cent of high-risk workers and all direct service providers to the facilities.

For those in localities at risk, real time RT-PCR or rapid antigen tests are required at least twice a week for at least 5-10 per cent of high-risk workers and all direct service providers to the facilities.

The ministry said enterprises must be solely responsible for the quality of antigen tests, testing procedures and results.

If enterprises implement the SARS-CoV-2 antigen rapid test themselves, they must take guidance from the provincial centre for disease control or the district health centre, it said.

Meanwhile, drivers transporting goods from an area with social distancing measures to neighbouring areas with lower risk of infection must have this testing performed at medical facilities.

Recently, several local media outlets said enterprises had faced difficulties in production recovery due to the serious shortage of workers and different COVID-19 testing requirements in localities. 

Vietnam calls for more EU investments in agriculture

Minister of Agriculture and Rural Development Le Minh Hoan on October 1 suggested EU firms increase investments in Vietnam’s agriculture, in the direction of high-technology, green standards and environmental sustainability.

At a working session with Ambassador Pier Giorgio Aliberti, head of the EU Delegation to Vietnam, Hoan also called on the EU to help Vietnam improve capacity for its cooperatives and upgrade small-scale agricultural production infrastructure.

Vietnam is gearing towards transparent, responsible and green agriculture, and is making efforts to promote a quality-based and multivalued agricultural sector, according to the minister.

He suggested FDI firms from the EU export machinery, equipment, technologies and materials to Vietnam.

For Vietnam’s exports to the EU, the official proposed the EU send experts to Vietnam or establish a representative office in the Southeast Asian country to supervise food safety before the shipment.

Hoan described the EU as a potential market for tropical agricultural products, including those from Vietnam, noting that the EU-Vietnam Free Trade Agreement (EVFTA) has created more opportunities and momentum for trade cooperation between the two sides.

In the first eight months of this year, Vietnam earned 2.38 billion USD from agro-forestry-fishery export to the EU, up 8.11 percent year-on-year. Its import value also reached 542 million VND, a rise of 2.24 percent.

During the working session, Hoan also highlighted Vietnam’s efforts in implementing recommendations by the European Commission (EC) to fight illegal, unreported and unregulated (IUU) fishing.

Combating the IUU fishing is a central task of the agricultural sector and an urgent need for Vietnam to help the country develop the fishery sector sustainably, demonstrate its responsibility and promote its prestige in the international arena.

The ministered thanked the EU for its support to Vietnam in this regard, and affirmed that Vietnam will make all-out efforts to implement relevant recommendations.

He appealed to the EU to soon remove the “yellow card” warning imposed on Vietnam as soon as possible.

Hoan suggested the EU help Vietnam build smart cold chain logistics connecting the Mekong Delta and Southeastern localities with Cai Mep-Thi Vai Port to boost Vietnam’s fruit export to Europe and the Middle East.

For his part, Aliberti said after two years of realising the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT), the two sides have cooperated and expected to have more in-depth, effective dialogues in the time ahead.

Vietnam will effectively implement the timber legality assurance (VNTLAS), he believed.

The EU would provide Vietnam with technical assistance to ensure cold storage for fruits and vegetables for export to the EU, he said, suggesting the two sides continue to seek solutions regarding animal and plant quarantine.

The minister and ambassador shared the view that there is ample room for trade cooperation between Vietnam and the EU in agriculture./.

Six wind power plants put into commercial operation by September end

Six wind power plants with a total capacity of 272.4 MW have come into commercial operation by the end of September, according to Vietnam Electricity (EVN).

They are Hoa Binh 1 – phase 2 with a capacity of 42.2 MW, Ninh Thuan 5 (46.2 MW), 7A (33.4 MW), Dong Hai 1 – phase 2 (50 MW), Ea Nam (12.6 MW) and BIM (88 MW).

The EVN said 106 wind power plants have submitted applications for accepting commercial operation date (COD) with a total capacity of 5,655.5 MW.  It will continue to update the progress of COD acceptance for the wind power projects before October 31./.

Vietnamese aquatic products gain favour in Australia

Vietnam’s aquatic products have gained the favour of Australian consumers, Secretary of the Australian Department of Agriculture, Water and the Environment Andrew Metcalfe told a workshop on October 1.

The event was jointly organised by the Vietnamese Ministry of Foreign Affairs and the Vietnam Association of Seafood Exporters and Producers (VASEP) in both in-person and teleconference formats.

To increase Vietnamese aquatic products’ presence in Australia, Metcalfe suggested the two sides step up information sharing and technical assistance, thus helping Vietnamese producers better satisfy quarantine standards set by Australia.

Enhancing vaccinations would help Vietnamese and Australian businesses, including those operating in the fishery sector, step up trading activities, the official said.

Vietnamese Deputy Minister of Foreign Affairs Vu Quang Minh said Australia has become one of Vietnam’s ten biggest trade partners, adding that Vietnam’s fishery export to the country expanded by 35 percent in the first eight months of this year despite impacts of the COVID-19 pandemic.

He used the occasion to thank Australia for its donation of COVID-19 vaccines and medical supplies to Vietnam.

Head of the Vietnamese Directorate of Fisheries Nguyen Dinh Luan said Vietnam’s aquatic products have met Global Gap and ASC standards as well as those on product origin.

According to VASEP Deputy Secretary To Thi Tuong Lan, Vietnam will intensify technological application, work harder to satisfy requirements on production and environmental protection, boost cooperation with international organisations to supervise production, and step up research to ensure food safety.

The participating Australian businesses suggested Vietnamese firms foster cooperation in procedures as prescribed in such agreements as the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), the Comprehensive and Progressive Agreement for Trans-Pacific (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP) to which both countries are signatories.

Vietnam needs to quickly apply electronic certification to facilitate its fishery export amid the pandemic spread, they said./.

Vietnam GDP to grow at 5.4 per cent: English chartered accountants institute

Vietnam’s GDP is likely to grow by 5.4 per cent this year, according to the Global Economic Forecast Report from the Institute of Chartered Accountants in England and Wales and Oxford Economics. 

The ICAEW said the forecast has been revised downwards from the 7.6 per cent in its previous report.

The growth would accelerate to 7.5 per cent in 2022, with the pick-up driven by easing restrictions and industrial recovery gaining traction around mid-2022, it said.

Prospects remain dim in the short term for countries like Việt Nam, the Philippines and Thailand which continue to battle the spread of the COVID-19 virus.

Heavily export-oriented economies like Việt Nam remain dependent on the recovery of the manufacturing sector.

The spread of the highly contagious Delta variant has cast a shadow on Southeast Asia and limited economic recovery this year, especially for countries with low levels of COVID-19 immunity. 

Several economies are expected to contract in the third quarter, but the outlook in 2022 is more positive. 

Asian economies have experienced varying degrees of success in containing the Delta variant because of differing rates of vaccination and social distancing restrictions.

At one end of the spectrum, significant waves of infections in Việt Nam, Malaysia, the Philippines, and Thailand in the last quarter mean they face delayed recovery in 2021, but they should see a significant rebound in 2022 once vaccination rates are higher and lockdowns are lifted. 

Mark Billington, ICAEW’s managing director international, said: “The COVID-19 Delta variant has derailed the recovery process for most South-East Asian economies and the reality of living with COVID-19 as endemic is proving to be complex.

“Not only do governments have to implement appropriate restrictions and measures to curb the spread of the variant, but they also need to speed up their vaccination rollouts to achieve immunity, in order to improve their prospects for growth.”

Global GDP grew by 1.4 per cent in the second quarter of 2021, exceeding the rate of growth seen in the 15 years prior to the pandemic, including the pace of recovery seen after the global financial crisis of 2008. 

However, there are signs that momentum may be faltering, driven by tighter restrictions and concerns about the Delta variant, and supply chain disruptions that are affecting key sectors such as manufacturing. 

The report expects the global economy to expand by around 5.8 per cent in 2021 and 4.7 per cent in 2022. 

Q3 2021 bank profits forecast to decline by 19 per cent due to pandemic

Profits of the banking industry in the third quarter of 2021 would decrease by 19 per cent compared to the previous quarter due to slowing credit growth and increasing provision expenses, Yuanta Securities Vietnam estimated.

In a report on Q3 2021 profits of the banking industry, Yuanta said it was not too surprising about the decline as the credit growth of the whole industry had slowed down due to the impact of the pandemic.

The State Bank of Viet Nam (SBV)’s data showed by the end of last month, credit growth of the entire banking industry was 7.4 per cent, of which the rise in the third quarter of 2021 was driven primarily by loans to pandemic affected borrowers and corporate bonds.

Accordingly, Yuanta analysts forecast net interest income in Q3 2021 of banks will decrease by 2 per cent compared to the previous quarter and net interest margin (NIM) will be under the same trend as banks had to cut interest rates to support customers affected by the pandemic.

Besides, the company also predicted provision expenses of banks in the third quarter this year would increase by 20 per cent compared to the previous quarter, especially at banks with relatively low loan loss reserve (LLR) ratio. However, it noted declining asset quality is inevitable in the context of the ongoing pandemic and the implementation of social distancing.

According to Yuanta, Circular 14/2021/TT-NHNN issued by the SBV allowed banks to extend the debt restructuring period to June 30, 2022 instead of the original plan of December 31, 2021. Therefore, bad debts, which have been made public, may still be at a low level, but it will be better if banks make provisions now to limit the possibility of asset quality deterioration in the future.

However, the analysts expected credit growth would recover in the fourth quarter of 2021 when the economy reopens.

In fact, the credit growth in July and August was more positive than that in June with respective rising rates of 0.69 per cent and 1.13 per cent.

The demand for credit is expected to increase strongly in the last months of the year, similar to what happened in the fourth quarter of 2020. The SBV has so far also increased credit growth limit for many commercial banks.

Nguyen Tuan Anh, director of the SBV’s Credit Department of Economic Sectors, also affirmed banks haven’t tightened lending, but created favourable conditions for firms to access bank loans.

Anh said the credit growth target this year was at 12 per cent, but if necessary, the rate could be adjusted to create favourable conditions for firms.

"We expect the central bank will continually loosen monetary policy at least until the end of this year, which will help improve banks’ NIM slightly in the fourth quarter of 2021 when credit demand increase again. In addition, banks’ fee income is also expected to increase since the third quarter of 2021 and the source will be the main driver to help boost banks’ profits in the fourth quarter," said the Yuanta analysts.

The expected loose monetary policy would help cut the lending interest rates next months, the analysts forecast. 

VinaCapital Ventures buys stakes in DutyCast

VinaCapital Ventures has bought an undisclosed share of Dutycast, the creator of a tool that eases the cross-border e-commerce experience for shoppers by providing transparency around final prices, duties, taxes, and logistics expenses. 

Created in 2020 the app enables customers to buy goods from certain global e-commerce sites and marketplaces with ease. 

In some countries, cross-border shopping comes with hidden surprises around foreign exchange rates, customs duties and local taxes, and shipping and other logistics fees, making the online shopping experience more expensive than planned and creating significant challenges for consumers. 

Dutycast eliminates those surprises as well as other common hindrances such as language and payment methods, with its transaction processing tool providing users with a secure and transparent, end-to-end international shopping experience.

Customers can shop at multiple stores in different countries and checkout once, paying in their local currency via trusted payment methods and without worrying about foreign exchange fluctuations.   

Hoàng Đức Trung, partner at VinaCapital Ventures, said: “E-commerce is growing rapidly in Việt Nam , especially as a result of the pandemic. Anyone living here or in other countries knows how difficult and sometimes frustrating it can be to order from online retailers based overseas. 

“Dutycast provides a very simple solution to that. It is a tool that will be very valuable and useful, not just in Việt Nam but potentially in many countries in the region and around the world where online shopping is not as easy as it should be. We look forward to assisting the founders on scaling up and realising the full potential of their business.”

The global cross-border e-commerce market was valued at US$994 billion in 2020, and is expected to top $2 trillion by 2026. 

In Việt Nam, e-commerce was valued at nearly $12 billion, or 5.5 per cent of all retail sales, according to the Department of E-commerce and Digital Economy.

Việt Nam is one of the world’s fastest growing e-commerce markets due to its young, digitally savvy population and rapidly expanding middle class.

Rise of vital telehealth services providing much-needed access

Telehealth startups are popping up more than ever before, aiming to innovate the healthcare sector and cater to the huge demand.

Docosan, a startup based in Ho Chi Minh City, enables patients to search for doctors and book appointments on its platform. The firm has experienced 200 per cent growth in bookings in the last two months.

Beth Ann Lopez, co-founder and CEO of Docosan said, “COVID-19 has changed the way that healthcare is delivered in Vietnam, and the innovations that have emerged during this time are here to stay. Telemedicine can be used by doctors to conduct initial consultations, as well as for remote monitoring and aftercare.”

Telehealth allows patients with mild symptoms to manage their condition from the comfort of their homes, while freeing up resources from busy hospitals and quarantine areas.

“We currently have over 140 medical providers who are offering teleconsultations across special fields, ranging from paediatrics over dentistry to oncology,” Lopez added.

Meanwhile, Doctor Anywhere, a regional tech-led healthcare company, has raised $65.7 million in its Series C financing round to expand its footprint in Southeast Asia, including Vietnam.

According to Le Ngoc Hai, CEO of Doctor Anywhere Vietnam, digital healthcare has proven its usefulness by delivering high-quality, cost-effective, and seamlessly accessible services.

“We have witnessed significant growth in the number of users and partners. The figures for new sign-ups and downloads increased two-fold per month. Previously, around 200 online consultations were made on the app daily. But these days, the number has doubled, surging to 500 calls on our busiest days,” he said.

MedPro is another startup that has sprung up to meet the surging demand for online healthcare. Nguyen Xuan Quang, chairman and CEO of MedPro shared, “As many people have to be treated at home, telehealth is currently the optimal solution.”

Registrations for online medical examinations through MedPro are increasing strongly, not only for COVID-19 but also other illnesses that people have been suffering with.

To ease the burden, the Ministry of Health has proposed that local hospitals in virus-hit cities and provinces set up remote clinics to advise and treat patients at home.

Doctors will use online apps such as Zalo, Zoom, Viber, and Facebook in combination with electronic health management records to provide the most effective support for patients. Frontline hospitals are also requested to publish their phone numbers on public media, so that people can contact them for help.

In response to the campaign, some medical facilities have set up virtual clinic systems to cater to the growing demand.

Meanwhile, Doctor Anywhere also engages in this campaign by expanding its network. “With more efforts put on improving core services like virtual consultations and online pharmacies, Doctor Anywhere could provide prompt and helpful assistance for people,” Hai said.

Meanwhile, MedPro has partnered with hospitals in Ho Chi Minh City, Dong Nai, Ba Ria-Vung Tau, and other localities to deploy the MedPro online booking system and launch the free telehealth feature to support COVID-19 patients.

According to the Digital Healthcare in Vietnam report by KPMG, telehealth will play an important role in supporting diagnosis and treatment of non-communicable diseases across the population. However, this poses a challenge for lower-income groups with less access to tech advances, particularly those in remote, underdeveloped, or rural areas.

As telehealth is a fairly new option in Vietnam, some operations will need time for both medical staff and patients to get used to. On top of that, doctors may also not be comfortable using digital technology due to their years of in-person experience.

“We see medical providers as partners,” Lopez of Docosan said. “We do not have brick and mortar clinics and have no desire to compete. Rather, we hope to enable them to expand their businesses by connecting them with new patients.”

Wood and forestry exports surge over nine-month period

Vietnamese timber and forestry exports during the nine months of the year surged by 31.9% to US$11.97 billion, with these products enjoying a trade surplus of US$9.699 billion, a rise of 45%, according to the Ministry of Agriculture and Rural Development.

Of the figure, the country raked in US$11.14 billion from exporting timber and wood products, representing an increase of 30.9%, while forestry exports reached US$832 million, an annual boost 46.4% compared to the same period from last year.

However, wood and forest exports in September endured a decline of 8.2% to US$821 million compared to the previous month

The nation's major export markets for timber and forestry products include the United States, Japan, China, the EU, and the Republic of Korea, all of which combine to account for over 90% of the total export value.

Furthermore, the import value of timber and wood products during the nine-month period is estimated at stand at over US$2,275 billion, representing a rise of 30% against the same period last year.

The main import markets of these products include China, the US, Cameroon, Thailand, and Chile, accounting for roughly 55% of the total import value in the reviewed period.

HCM City logistics association comes into being

The Logistics Association of Ho Chi Minh City has been officially established with its first congress, for the 2021 - 2026 tenure, taking place on September 30.

Vice Chairwoman of the municipal People’s Committee Phan Thi Thang said HCM City views logistics as a main artery of its economy. Given this, the establishment of a logistics association in the city is an urgent need so that it can serve as the mouthpiece for local logistics businesses and accompany the city in future logistics development projects.

HCM City aims for growth rates of 15 percent and 20 percent in logistics services’ revenue by 2025 and 2030, respectively. It looks to raise logistics’ contribution to its gross regional domestic product (GRDP) to 10 percent by 2025 and 12 percent by 2030.

To that end, the southern economic hub will focus on three groups of key solutions: forming logistics centres; applying information technology, setting up a logistics ecosystem early, and using common data for all enterprises; and striving to become a centre for logistics personnel training and provision in the southern region and the whole country.

All the above-mentioned solutions require close cooperation from logistics enterprises, Thang said.

She requested that apart from developing export and import logistics, businesses and the association should pay due attention to the services serving the domestic goods circulation, as well as the logistics infrastructure for e-commerce./.

Vietnam welcomes only 114,500 foreign visitors in nine months

 

Vietnam welcomed about 114,500 foreign visitors in the first nine months of this year, a year-on-year plunge of 97 percent, announced the General Statistics Office (GSO) on September 29.

In the third quarter alone, the country greeted some 26,300 foreigners, slipping 40.3 percent compared to the same period last year.

According to the Vietnam National Administration of Tourism, as the pandemic has been gradually brought under control since early September, it has called on the Ministry of Culture, Sports and Tourism to roll out tourism recovery policies, with safety being the top priority in the new normal.

Three important factors of the recovery plan include COVID-19 vaccine coverage, safety at tourism destinations, and optimal conditions for domestic and foreign tourists holding vaccination certificates./.

Vietnam considers ODA important capital source: Deputy PM

The Vietnamese Government continues to consider official development assistance (ODA) as an important capital source and allocate part of it for socio-economic development in the mid-term public investment plan, said Permanent Deputy Prime Minister Pham Binh Minh.

Minh made the statement during a meeting between the Government and six foreign development banks in Hanoi on September 30 to discuss their recommendations about ODA, foreign preferential loans and a draft Decree replacing the Government’s Decree dated May 25, 2020 on the use and management of ODA and preferential loans provided by foreign sponsors.

Deputy Minister of Planning and Investment Tran Quoc Phuong said 2021 is the first year to perform tasks in the mid-term public investment plan for the 2021-2025 period. Since late 2020 and especially mid-May, the COVID-19 pandemic has broken out again in localities, thus affecting the progress of foreign capital disbursement.

Data from the Finance Ministry showed that about 287.6 million USD of foreign capital was disbursed in the first nine months of this year, or 12.69 percent of the yearly capital plan.

Representatives from development banks spoke highly of the Vietnamese Government’s efforts in the process of institution building, project implementation and ODA disbursement. Some of them suggested approving projects with regional connectivity and on a large scale in each locality to achieve efficiency.

World Bank Country Director in Vietnam Carolyn Turk expressed her wish to cooperate with the Vietnamese Government in big projects with greater impacts.

Minh said several laws regarding ODA and public investment are being proposed for amendment.

The Vietnamese Government will consider simplifying procedures while ensuring the efficiency of projects, he said, expressed his hope that six development banks and agencies, including the WB, ADB, JICA, KEXIM, AFD and KfW, would consider harmonising their procedures with Vietnam’s ones.

About ODA mobilisation for 2021-2025, Minh said the Vietnamese Government built priority areas in need of ODA and hoped that the banks will offer loans to projects that match Vietnam’s development goals in the period./. 

Vinfast & Europe's AUTOBEST enter new strategic partnership

VinFast Trading And Service Limited Liability Company and Europe's oldest automobile rating organization - AUTOBEST - officially announced a strategic partnership agreement today, demonstrating their mutual commitment to accelerating the transition from internal combustion engine (ICE) cars to environment friendly electric vehicles in the European market.

AUTOBEST is an organization representing European consumers' voices in the automotive field, capable of assisting VinFast in identifying customer needs and behaviour in the local market. By entering the strategic partnership with VinFast, AUTOBEST will receive extended support to carry out its mission of transitioning from traditional ICE cars to electric vehicles, pushing forward the clean energy and sustainable mobility trend in Europe.

For VinFast, the partnership with AUTOBEST affirms that Europe is one of the key markets in the company’s global expansion strategy and that VinFast EV models can totally satisfy the standards in the world's most demanding automobile market. Cooperating with AUTOBEST will also allow VinFast more opportunities to participate in the organization's events and agendas, thereby rapidly promoting its presence in Europe.

AUTOBEST Chairman Dan Vardie said: “We are amazed at the development of VinFast since its debut at the 2018 Paris Motor Show. In its return to Europe, VinFast has shown its vision, and clear strategy with a mission to promote smart electric car models in one of the most advanced markets in the world. We appreciate VinFast's approach when focusing on developing smart electric vehicles and expect VinFast to move deeper into the European market very soon.”

"With a strategy to develop a global smart electric car brand, VinFast always chooses to cooperate and connect with the world’s leading organizations.” - said Tran Thi Hong Bich – CEO of VinFast Europe. “The strategic partnership with AUTOBEST is one of the first steps in VinFast's strategy of international cooperation and global expertise sharing. We are committed to providing smart electric cars with trendy and classy designs, in line with the development trends in the European and global markets.”

In 2018, VinFast first attended the prestigious Paris Motor Show and received the "A Star is Born" award from AUTOBEST. VinFast is the first winner of this award category, which is dedicated to newly established brands with impressive achievements in the automotive industry. After more than 2 years, VinFast has become one of the top automobile manufacturers in Việt Nam, leading in all of its participating segments. This is a solid foundation for growing into a global smart electric car company, according to company management.

On March 24, VinFast officially received pre-orders for VF e34 - the very first smart electric car model in the Vietnamese market, with an outstanding battery subscription policy. Nearly 4,000 pre-orders for VF e34 had been placed within the first 12 hours. As scheduled, VinFast will officially launch its next smart electric vehicles in global markets including the US, Canada, Germany, France, and the Netherlands in 2022.

VinFast’s strategic partnership with AUTOBEST and participation in sustainable development projects reaffirm its consistent and well-thought-out strategy to connect with the most prestigious global organisations and to jointly build a greener, smarter and more sustainable world.

AUTOBEST is a leading European motoring media organization - representing 32 European countries.  Founded in 2000, AUTOBEST has continuously created new trends and compelling movements in the industry. It is considered an organization that represents the views of Europeans in the automotive field, and influences 91 per cent of vehicle purchases in Europe. In recent years, AUTOBEST has also been a pioneer in promoting the future of the electric vehicle industry, positioning and leading sustainable development trends.

VinFast is a member of Vingroup - the largest private conglomerate in Việt Nam. It is the country's leading manufacturer of premium automobiles and the first Vietnamese automotive brand to launch in global markets. Established in 2017, VinFast’s state-of-the-art, 90 per cent automated manufacturing complex in northern Việt Nam is one of the largest in Southeast Asia. VinFast currently produces several models of electric scooters and buses, and will launch three new electric SUVs - VF e34, VF e35 and VF e36 respectively of C, D and E classes - in Việtnam, North America and Europe in 2021 and 2022. 

Official: Vietnam could achieve trade balance this year

Vietnam could achieve trade balance, or even a trade surplus this year, deputy head of the Ministry of Industry and Trade’s Agency of Foreign Trade Tran Thanh Hai told a regular press conference of the ministry in Hanoi on September 30.

In September, the country earned 27 billion USD from exports, down 0.8 percent month-on-month and 0.6 percent year-on-year. It was also the second consecutive month that exports declined from the same period last year.

However, the nine-month figure still showed an 18.8 percent increase year on year to an estimated 240.5 billion USD.

Meanwhile, import was estimated at 26.5 billion USD in September, down 3.1 percent monthly, but the nine-month figure hiked by 30.5 percent annually to 242.65 billion USD.

Given such situation, Vietnam ran a trade surplus of 500 million USD in September and a deficit of 2.13 billion USD in nine months of this year.

According to Hai, the current trade deficit is not a cause for concern, considering that trade deficit dropped to 100 million USD in August after topping 2 billion USD in July, and September saw the return of trade surplus. 

Vietnam’s exports are in favourable conditions thanks to opportunities from free trade agreements and rising market demand during year’s end, especially for goods of the country’s strength. Therefore, if there is no major change in the pandemic situation, export activities in southern localities are expected to regain speed in the last quarter of the year, helping balance trade, and even bring a trade surplus, he said./. 

Hanoi sees September CPI down 0.6 percent over previous month

Hanoi's consumer price index (CPI) in September decreased by 0.6 percent compared to the previous month and increased by 2 percent over the same period last year, according to the city's Department of Statistics.

Eight out of 11 commodity groups in the price basket posted price decreases month-on-month, with biggest reduction in the education group (3.27 percent) because a number of schools reduced tuition fees for the 2021-2022 school year in order to alleviate difficulties caused by the COVID-19 pandemic.

Prices of housing, electricity, water, fuel and construction materials decreased by 1.71 percent as the city implemented a reduction in electricity prices to support customers affected by the COVID-19 pandemic.

Three commodity groups, namely culture, entertainment and tourism; food and catering services; medicine and health services, saw their prices go up slightly compared to the previous month.

The average CPI in the first 9 months of 2021 of the capital city increased by 1.54 percent compared to the same period in 2020. Commodity groups with high price increases were transport (7.71 percent); housing, electricity, water, fuel and construction materials (up 3.47 percent) and education (2.1 percent).

Three commodity groups saw price decreases, which were culture, entertainment and tourism (down 2.76 percent); post and telecoms (down 1.06 percent) and restaurant and catering services (down 0.09 percent). /.

Vietnam's import-export turnover up 24 percent in nine months

 

Vietnam’s trade turnover in the first nine months of this year reached 483.17 billion USD, a year-on-year increase of 24.4 percent, according to the General Statistics Office.

During the period, 31 products recorded an export value of over 1 billion USD each and together they accounted for 92.5 percent of the nation’s total export.

The US remained the biggest export market of Vietnam, spending 69.8 billion USD on imports of Vietnamese products, a year-on-year rise of 27.6 percent. China came second with 38.5 billion USD, up 18.3 percent. The EU and ASEAN followed with 28.8 billion USD and 20.6 billion USD, increasing by 11.6 percent and 21.2 percent, respectively.

The import turnover in the nine-month period reached 242.65 billion USD, a hike of 30.5 percent compared to the same period last year./.

Turning Viet Nam's macadamias into an efficient and sustainable industry

A project is underway to continue developing the macadamia industry in Viet Nam during the period of 2021-2030.

The Deputy Minister of Agriculture and Rural Development Le Quoc Doanh met with the Viet Nam Administration of Forestry and the Viet Nam Macadamia Association on the development of the project earlier this week.

A total of 18,840ha of land across 28 of Viet Nam's provinces is dedicated to growing macadamia, mainly in the northwest and Central Highlands. Annual output is estimated to be at 8,840 tonnes of nuts this year.

The market for these macadamia products is both foreign, in countries and territories such as Japan, South Korea, mainland China and Taiwan, and domestic.

In recent years the macadamia industry has shown positive signs of development as both the size and output of macadamia crops increased, creating jobs and increased turnover for producers.

Many macadamia producers generate a stable income, which in turn promotes economic benefits such as social development and environmental protection, especially important in the mountainous areas of the northwest and Central Highlands provinces.

However, some plantations can further improve their operations to increase output. Improvements can be made in many parts of the process, including choosing optimum sites for planting, using varieties most appropriate to the soil and refining the processing procedure. Neglecting these corrections has led to some farmers suffering poor yields or low-quality products.

The consumption market could also be expanded further. There is a lack of synchronisation in policies that are designed to encourage investment from businesses into the industry. These shortcomings need to be addressed.

It is expected that, after completion, the project will be submitted to the Prime Minister for consideration and approval.

Deputy Minister Le Quoc Doanh emphasised that an in-depth assessment of the situation was needed, encompassing the economic, technological and farming practices in recent years.

In addition, Doanh suggested that clarification was needed on the adaptation, efficiency, and land funding available to develop macadamia trees in different localities.

State budget sees over VND58 trillion surplus in nine months

The State budget saw a surplus of over VND58 trillion in the first nine months of this year, a decrease of about VND24 trillion over the first eight months of this year, according to the General Statistics Office (GSO).
By September 15, State budget revenue was reported at over VND1,034 trillion, equivalent to 77% of the year’s estimate.

Of the total, revenue from domestic activities reached over VND836 trillion, equivalent to 73.8% of the year’s estimate, revenue from crude oil was estimated at over VND27 trillion, equivalent to 118% of the year’s plan and the remaining amount was from import and export activities.

Meanwhile, total spending was posted at over VND975 trillion, equivalent to 57.8% of the year’s estimate, resulting in a surplus of over VND58 trillion.

Previously, during the first eight months of the year, the budget surplus was about VND83 trillion, an increase of VND21 trillion compared to the previous month.

According to the GSO, the complicated developments of the COVID-19 pandemic in many localities nationwide, particularly in localities under social distancing order, have affected business activities and budget revenue in the nine-month period.

Budget spending was prioritised for the prevention and control of the COVID-19 pandemic, national defence and security, and the implementation of social security policies.

Viet Nam, Australia work towards balanced, sustainable trade

 Viet Nam-Australia trade posted growth in 2021 despite the impact of COVID-19, Director of the Asia-Africa Market Department under the Ministry of Industry and Trade (MoIT) Le Hoang Oanh has said.

She made the remarks during the third session of a trade working group within the framework of the Ministerial-level Viet Nam-Australia Economic Partnership Meeting, which was recently held via videoconference by the MoIT.

The growth was attributed to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to which the two countries are signatories, she added.

Ridwaan Jadwat, First Assistant Secretary at the Australian Department of Foreign Affairs and Trade affirmed that Viet Nam is an important trade and investment partner of Australia, and expressed a hope to tighten bilateral relations.

Amid the complex developments of COVID-19, the two nations need to bolster co-operation so as to devise suitable strategies to surmount difficulties, he underlined.

Two-way trade surpassed US$8 billion in the first eight months of 2021, posting a year-on-year increase of 50.7 per cent, thereby making Australia among ten leading trade partners of Viet Nam.

However, as Viet Nam recorded a trade deficit of nearly $2.5 billion in the period, the two countries need to foster bilateral trade development in a more balanced and sustainable manner.

At present, Viet Nam’s shipments of fresh shrimp and fruits to Australia remain stagnant, although the exports of such products have been tabled during the working group’s 2020 session as well as meetings of the countries’ ministers.

Oanh urged the Australian side to speed up procedures to grant permission for Viet Nam’s fresh shrimp to enter Australia and provide Viet Nam with technical support in terms of disease prevention in shrimp farming.

In addition, Viet Nam hopes that Australia will soon complete necessary steps to open its door for passion fruit from the Southeast Asian nation, paving the way for other fruits like rambutan and star apple.

The Vietnamese side also called on the Australian counterpart to closely work with the former’s Ministry of Agriculture and Rural Development to allow the use of alternatives to glyphosate in lilium cultivation before exporting to Australia.

At the event, the countries agreed to promote investment in mining, as it is viewed as a strategic field of potential, especially of charcoal, iron and liquefied natural gas.

Given numerous firms of Viet Nam are keen on investing in Australia in such fields, the Vietnamese side asked to receive information and regulations in mining for foreign investors, to which the Australian side agreed. 

Vinh Long works to support business in local IPs amid COVID-19 

 

The Mekong Delta province of Vinh Long has applied various measures to support pandemic-hit enterprises to recover and develop business and production, especially those in industrial parks.

Currently, 40 out of 46 local businesses in Vinh Long industrial parks are applying the “three-on-site” and “two-on-site - green zone” models, with nearly 7,300 workers, accounting for about 16 per cent of total labourers working in local firms.

According to Vice Director of the provincial Department of Planning and Investment Luong Trong Nghia, the province will consider allowing the firms that have halted their operations or applied the “three-on-site” models to switch to the “two-on-site - green zone” model, maintaining 10-25 per cent of labourers working on site.

Meanwhile, the province has ensured quick processing of procedures supporting foreign experts and labourers to enter the province, while assisting local firms in recruiting and receiving labourers returning to work.

At the same time, Vinh Long has sped up vaccination among workers in businesses applying COVID-19 prevention and control models in local industrial parks. So far, nearly 5,000 labourers have received the first vaccine shots.

The province plans to increase trade promotion activities, connecting supply-demand sources and assisting local firms in selling goods on e-commerce platforms.

In the first nine months of 2021, businesses in local industrial parks earned over VND14 trillion (US$612.4 million) in revenue, up 2.81 per cent year on year. Their industrial production value hit over VND9.62 trillion ($420.86 million), a year-on-year rise of 13.58 per cent, while their export revenue reached $335 million, nearly 70 per cent of the yearly target.

According to Pham Thanh Khon, head of the Vinh Long Industrial Park Management Board, local firms have faced many difficulties due to COVID-19, including a shortage of production materials and labourers, affecting their operations. 

Power company Truong Thanh list more 10.8 million shares on HoSE

Truong Thanh Development and Construction Investment Joint Stock Company (TTA) has just approved a plan to list additional shares on the Ho Chi Minh Stock Exchange (HoSE).

The company will list an additionally 10,799,904 dividend-paying shares, bringing the total number of listed shares on the exchange to nearly 145.8 million shares.

In the first 6 months of 2021, TTA achieved revenue of VND331.1 billion (US$14.5 million), profit after tax of VND76.7 billion, up 88.6 per cent and 95.7 per cent respectively compared to the first 6 months of 2020.

In 2021, Truong Thanh sets a revenue target of VND680 billion, profit after tax of VND150 billion, up 37 per cent and 16.2 per cent, respectively compared to 2020. After the first half of 2021, the business completed 51.1 per cent of the annual profit plan.

Closing the session on Thursday, TTA stock was priced at VND14,850 per share, down 30 per cent compared to the closing session of January 4.

In recent years, in parallel with the efficient operation of hydropower plants, Truong Thanh has expanded to develop clean energy projects such as solar power and wind power.

Vietnam still sees optimistic economic outlook in 2022: scholar

Vietnam's economy has slowed down due to the prolonged impacts of the COVID-19 pandemic, but there are still many optimistic forecasts about the country’s economic outlook in 2022, Dr Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM), told the Vietnam News Agency (VNA).

Minh called attention to a number of factors that will affect the Vietnamese economy in 2022, including the capacity to control the pandemic, the capacity to ensure production recovery, and the capacity to keep pace with the implementation of an extensive programme on economic recovery and development until 2023.

This programme not only helps remove difficulties and creates motivation in the short term, but also ensures macroeconomic stability and lays the foundation for stronger economic institutional reforms in the next 3-5 years, she added.

However, in order to achieve firm economic recovery in 2022, Minh stressed the need to continue giving priority to effectively preventing and controlling the COVID-19 pandemic, along with speeding up the vaccination process.

She proposed building and implementing early a master programme on economic recovery and development during and after the pandemic in three phases as specified in research outcomes announced by the CIEM earlier this year.

Accordingly, the first phase will last until the first quarter of 2022, during which priority will be given to pandemic prevention and control in combination with macro-economic policies to help businesses survive the difficult situation.

The second phase will last through 2023, during which macroeconomic policies should be relaxed to stimulate demand for the economy and create momentum for businesses.

In the third phase in the years after 2023, macroeconomic policies will be normalised, the macroeconomic foundation strengthened and more intensive economic institutional reform promoted.

Minh also emphasized the importance of applying flexible macroeconomic policies in line with scenarios to cope with adverse developments of the world and regional economies; diversifying exports; and speeding up the implementation of support packages for people and businesses./.

Thai major beverage firm hails Vietnam’s COVID-19 control measures

CEO and President of Thai Beverage (ThaiBev) Thapana Sirivadhanabhakdi has spoken highly of the Vietnamese Government’s measures to curb the spread of COVID-19 and pledged to support Vietnam in the fight.

He made the remark during a working session with Vietnamese Ambassador to Thailand Phan Chi Thanh on September 29 to discuss methods to bolster investment of the Thai company in Vietnam amid COVID-19.

Sirivadhanabhakdi informed the Vietnamese diplomat on ThaiBev’s investment strategy in Vietnam as well as its measures to maintain operations against the backdrop of the ongoing pandemic.

He affirmed that the Thai company will continue its long-term investment in Vietnam, not only in beverage but also other fields of agriculture, real estate, tourism and finance-insurance.

It will work to attract major investors from developed countries to Vietnam so as to set up partnership for green and sustainable development targets.

On the occasion, ThaiBev announced its decision to present 3 million surgical masks worth about 10 billion VND (about 440,000 USD) manufactured by the firm to the Vietnamese Government.

The Thai firm has rolled out activities to support the Vietnamese community in Thailand in the fight against COVID-19.

For his part, Ambassador Thanh assured that the Vietnamese Government is exerting efforts in containing the spread of COVID-19 and creating favourable conditions for businesses in the ‘new normal’.

The Vietnamese Government stands ready to receive recommendations from and work with Thai companies operating in Vietnam amid difficulties caused by the pandemic, as well as to discuss with ThaiBev measures to maintain and recover its operation in Vienam, the diplomat stated.

Firms of TCC Group, ThaiBev’s parent company, previously donated 1 million USD to Vietnam’s COVID-19 vaccine fund and 3,000 welfare packages totalling 900 million VND./.

Major opportunities for Vietnam’s farm exports to UK

 

Vietnam has great opportunities to export rice, fruits and other agricultural products to the UK, one of the world’s 10 largest markets in the world, heard a recent conference to promote Vietnamese farm produce in the UK.

The event entitled “Discovering tropical specialties” aimed at discussing the potential, requirements, and standards of the UK market for imported agricultural products. It was held together with the introduction of Vietnamese agricultural products through numerous videos on agricultural production in the country under global GAP standards.

British experts and businesses also answered questions from Vietnamese exporters about the UK market.

Vietnamese agricultural products have been highly evaluated for their quality, but many enterprises still face challenges penetrating into the European market in general and the UK in particular./.

Dak Nong to accelerate land clearance for wind power projects

Dak Nong People’s Committee has promised to thoroughly deal with bottlenecks in land clearance to unlock wind power project development.

According to Ho Van Muoi, Chairman of Dak Nong People’s Committee, the investors of wind power projects in Dak Song district and other districts are facing numerous difficulties and challenges in project implementation.

Notably, the People’s Committee of Dak Song district have made an effort to clear land for wind farms, however, the coordination remains lacking between the local authorities and investors. Besides, land management is not strict enough, as a result of which numerous illegal building works were implemented in the corridor of high voltage lines.

Chairman Muoi asked the People’s Committees of Dak Song, Tuy Duc, and Dak R’lap districts to co-operate with investors on land clearance. The investors have to complete compensation and support impacted households. Local authorities have been directed to crack down on illegal activities, including houses and other buildings constructed on the project land.

Chairman Muoi asked localities to ensure land for project implementation and approve the development of 220kV and 35kV lines.

Dak N'drung Dak Nong Energy One Member Co., Ltd., Nam Binh Wind Farm JSC, and Dak Nong Quang Minh Wind Power Ltd. have been directed to complete the final procedures related to construction and land. These investors also have to complete land lease procedures soon.

The Department of Natural Resources and Environment has been tasked with proposing specific policies and mechanisms to deal with unprecedented difficulties facing wind farm projects in Dak Song. The proposals will have to be completed before October 5.

According to a report by Dak Nong People’s Committee, numerous wind farms are running behind the construction schedule due to the challenges in land clearance. For instance, a 430MW wind farm with a total investment capital of VND15 trillion ($652.17 million)is scheduled to be put into operation this November,however, construction work is only 20-30 per cent complete due to land clearance, compensation, and land lease issues.

At present, six wind farms are being constructed in the province, including Dak N’Drung 1, Dak N’Drung 2, and Dak N’Drung 3 with the total capacity of 300MW, Asian Dak Song 1 (50MW), Dak Hoa (50MW) and Binh 1 (30MW).

Experts define legal risks for local exporters in e-commerce transactions

Though e-commerce channels are considered one of the best solutions to sell local products amid the pandemic, legal risks from the activities remain a concern.

According to experts during an online seminar titled "Solutions for exporters in the digital transformation process" organised by the Vietnam International Arbitration Center (VIAC) and the Vietnam E-commerce Association (VECOM) yesterday, the pandemic had a negative impact on economic development nationwide, especially the manufacturing industry. However it also drove local digital transformation and created many breakthroughs in smart manufacturing, while businesses have found new directions by applying digital transformation in their production activities.

Chau Viet Bac, Deputy Secretary-General of VIAC, said that cross-border e-commerce in 2021 will increase by 25.7 percent from 2020, adding traditional import and export transactions were gradually replaced by websites and e-commerce platforms.

Bac said: "Contracts using electronic signatures also increased by 17 percent compared to before the pandemic,” adding “timely digital transformation will help businesses maintain operations.”

Nguyen Ngoc Dung, Vice President of VECOM, said the trend of global cross-border e-commerce from 2014-2020 has increased from 17 percent to 41 percent and global cross-border e-commerce transactions in 2021 to date was estimated at 1.25 trillion USD.

At the same time, he said Vietnamese e-commerce platforms are gradually developing, with many high-value products being offered for sale online such as cars, electronic equipment and technology.

VECOM's leader added the world's largest e-commerce platform Amazon has invested in and supported Vietnam by using Vietnamese domain names and Vietnamese language, saying: "This shows that the Vietnamese market has potential for development. Many Vietnamese products such as kitchenware and traditional products are popular and have sold well on Amazon.”

In Vietnam, e-commerce was becoming a more and more effective channel for local products, especially agricultural ones, with Ben Tre coconut sold on Lazada, Dong Thap lotus sold on Tiki and clean dragon fruits of cooperatives in Binh Thuan sold online too.

Dung said many farmers didn't think they could sell dragon fruit with livestreams, but after training, they started to gain orders both domestically and from abroad.

Dung, however, mentioned that e-commerce in rural localities, the production hubs, only accounted for 30 percent of the e-commerce structure while the remaining 70 percent of growth was in big cities of Hanoi and Ho Chi Minh City, adding: “It is necessary to narrow the gap.”

Bac said: “An effective digital transformation process must have a reasonable strategy and action, especially paying attention to the legal mechanism to be safe and effective”

Nguyen Tuan Hoa, arbitrator of VIAC, said that businesses that wanted to convert digitally for export needed to know how to approach platforms and have reasonable solutions. He said major requirements to be met were to have a product traceability system and maintain the quality and competitiveness of products.

Hoa said in the context that the local production and business process was mainly manually produced with low labour productivity while production was still consuming raw materials and energy, causing environmental pollution, “things must be changed”.

Hoa said the future-oriented production process must be intelligent automatic production, high labour productivity, low consumption of raw materials and energy, especially to improve the customer experience.

To do this, Hoa said: “It is necessary to have digital platforms to develop physical-digital systems, digital infrastructure, digital policies, digital human resources.

"Digital transformation is a revolution in every business where they must have pioneering leaders, connect experts, develop new production methods, integrate technology solutions and have a data management system," the expert said.

Hoa continued: “In the near future, the Government will issue a National Strategy on the development of the digital economy and digital society. In the strategy, there is a plan to develop a team of consultants for digital transformation, advising all industries and professions."

Nguyen Trung Nam, Executive Director of Tinh Tú Associates Law Firm (EP Legal), said that there are many potential inadequacies and risks in commercial activities with the element of digitisation.

Nam considered one as identity risk as it would be more difficult to verify the identity of a partner, which could lead to illegal activities such as money laundering and forging documents.

Nam added: "Also, gathering evidence in the event of a dispute is also difficult. Data can be difficult to access or inaccessible. In addition, it can be deleted, overwritten, encrypted or hidden," he said.

Therefore, he said e-commerce transactions need to pay attention to verify the electronic identity and find information about the trading floor of exporting goods, adding: “It is necessary to pay attention to customs and tax procedures and to note the separate regulations of each e-commerce platform.”

"VIAC encourages the parties to agree on sessions, including preliminary meetings and online dispute resolution through available platforms," he said./.

Wide room for Vietnamese agricultural products to be exported to UK

Vietnam has great opportunities to export rice, fruits and other agricultural products to the UK, one of the world’s 10 largest markets with an annual food import turnover of more than 65 billion USD, heard a recent conference to promote Vietnamese farm produce in the UK.

The event, organised by the Embassy of Vietnam in the UK on September 28 under the theme ‘Exploring tropical specialties’, attracted the participation of representatives from the UK-ASEAN Business Council (UKABC), South East Asian Trade Facilitation Organisation (SEATFO), businesses in the UK and more than 100 Vietnamese exporters of agricultural products.

The participants discussed the potential, requirements and standards of the UK market for imported agricultural products. They were also introduced to various Vietnamese farm produce.

Speaking at the event, Vietnamese Ambassador to the UK Nguyen Hoang Long said that Vietnam-UK bilateral trade is expected to see remarkable growth after the UK-Vietnam Free Trade Agreement (UKVFTA) was signed in December 2020.

He stated that bilateral trade in agriculture has great potential for development as Vietnam has an advantage in terms of agricultural products while the UK is a large market for these types of products.

While giving advice to Vietnamese exporters, CEO of UKABC Ian Gibbons said businesses need to carry out thorough market research to ensure their products are suitable and competitive on the import market.

He also stressed the importance of building trust with UK partners through developing long-term and sustainable relationship.

Meanwhile, SEATFO Director John Gavin pointed out that it is important for businesses to ensure their products meet market requirements while providing good customer services and on-time delivery.

British businesses also value partners who uphold environmental protection and participate in social activities, he added./.

US-funded project to boost local economic growth through technological transformation

The US Agency for International Development (USAID) and the Ministry of Planning and Investment have launched the Vietnam Workforce for an Innovation and Start-up Ecosystem (WISE) project.

At a ceremony to launch the Vietnam Workforce for an Innovation and Start-up Ecosystem (WISE) project.
It is a two-year, USAID-funded initiative that will support the nation’s Industry 4.0 strategy to advance continued economic transformation.

After decades as one of the world’s fastest-growing economies, the country’s industry and services sectors are entering a new phase of growth propelled by the brain power of an ever-expanding youthful workforce.

With Industry 4.0 at the country’s doorstep, it creates immense opportunities and challenges to upskill and reskill the local workforce to take advantage of new technologies, which in turn will advance and build new competitive advantages. Whilst COVID-19 has accelerated the movement to digital businesses and transformation, the pandemic has made it even more imperative to retool workers for the digital economy moving into the new normal.

At the launch of the event, Ann Marie Yastishock, mission director of the USAID/Vietnam, said, “USAID WISE showcases the U.S. Government’s commitment to partnering with Vietnam along its economic transformation, and will help advance this strategy, which centers on mastering and integrating new advanced technologies, spurring innovation, and accelerating the growth of the digital economy.”

USAID WISE will therefore support scalable, market-driven, and sustainable models in which to prepare the nation’s workers for Industry 4.0 via partnerships with the private sector. The project will build basic digital literacy, provide Industry 4.0 career pathways information to make smart talent investments, offer information and communication technologies, upskilling and reskilling for lifelong learning, and explore innovative financing mechanisms for relevant skills acquisition.

The Ministry of Planning and Investment’s National Innovation Center (MPI/NIC) will be the key partner of the Vietnamese Government for USAID WISE. The project will build the capacity of the MPI/NIC and associate Government agencies in human resource development as a means of enabling them to work effectively on upskilling and reskilling the workforce for innovation.

Equally important, the USAID WISE will also support Vietnamese efforts to emphasise Industry 4.0 skills development opportunities to all demographics by devoting a special focus on women and vulnerable groups in order to help narrow the country’s digital divide. This priority is consistent with the USAID Digital Strategy and will deliver a long-term impact in the nation through an information and communication technology sector that features leaders, coders, designers, and technicians that advance the use and development of Industry 4.0 as it takes root across the Vietnamese economy.

Zuru Group keen on investment venture in Nghe An province

Kiwi toy manufacturing and consumer packaged goods firm Zuru Group is considering an investment venture in Nghe An, the largest province in Vietnam’s North-Central Coast.

The news was confirmed after a recent a recent online meeting between the Nghe An Investment, Trade and Tourism Promotion Centre (NAPC) and Zuru Group.

After the meeting, Bui Duy Dong, director of NAP shared that the foreign partner was keen to know about Nghe An province’s natural resources, human resources, as well as the state of infrastructure at the province's industrial zones (IZs) and related policies. The investor also asked about investment attraction policies.

According to a Zuru Group representative, the group has developed an extensive network of 26 representative offices around the world and posted nearly $1 billion in revenue in 2020.

Since 2020, despite COVID-19, a sharp rise was spotted in the number of projects asking for business expansion and capital addition in Nghe An province.
The representative also discussed the group's advantages in the production of equipment for building houses and household appliances using cutting-edge equipment and modern software.

In Nghe An province, the foreign partner envisages building a factory that manufactures prefab materials for smart houses following Industry 4.0 standards, with an estimated investment value reaching $400 million.

Zuru Group aims to disrupt the global housing market with smart, eco-friendly homes at competitive prices. It has been working on the project since 2007 with the target of selling ready-made houses to the world.

Based on the investor's criteria, NAPC presented them with two potential sites for the project: a 40-hectare plot at the planned area for Dong Hoi deep-water port and associated logistics facilities in Hoang Mai town and a 100ha space at Hoang Mai II IZ.

In recent months, Nghe An has been working with several major local and foreign partners like Japan’s Mitsui Sumitomo Banking Corporation, SunGroup, and Nha Trang Bay Investment and Construction JSC to accelerate investment procedures.

Currently, one of the eminent investment destinations in Nghe An is Vietnam Singapore Industrial Park (VSIP) Nghe An which has lured 30 investment projects (including 14 by foreign investors) over 131.14ha of leased space, employing more than 40,000 local labourers.

20 of these projects are already operational, providing jobs to over 11,800 labourers. Three other investors are building factories and the remaining seven have finalised investment procedures and are about to begin construction.

Since 2020, despite COVID-19, a sharp rise was spotted in the number of projects asking for business expansion and capital addition in Nghe An province.

Aside from luring in the $200 million project from Taiwanese investor Ju Teng Group to build an electronic component manufacturing plant in Hoang Mai I IZ, in the first nine months this year, Nghe An has granted new investment certificates to 77 projects, and greenlit capital additions for 95 projects with a total new committed and supplemental capital of VND13.789 trillion ($600 million), up 19 per cent in the number of projects and more than triple in total investment value.

Opportunities for Vietnamese agricultural products in Thailand

Despite being a powerhouse in exporting agricultural products, Thailand also has huge demand for imported fresh fruit and vegetables. There is an opportunity for Vietnamese agricultural exporters to explore this market worth billions of US dollars.

In 2020, Thailand exported fresh and processed vegetables and fruit worth more than US$4.2 billion. With relatively similar climate and geographical conditions, Thai and Vietnamese agricultural products share many similarities. However, Thai products often have a higher level of competitiveness.

However, Commercial Counselor of the Vietnamese Embassy in Thailand Tran Thanh My affirmed that Thailand has the potential to be a significant export market for Vietnamese enterprises. Although Thailand exports many agricultural products, the country also imports a large amount of vegetables, tubers and fruits.

Thailand imported more than US$2.6 billion worth of fresh and processed vegetables and fruit in 2020. Meanwhile, Vietnam has several strong products that Thailand cannot compete with, such as lychee and dragon fruit.

Many Thai enterprises have long imported dragon fruit and lychee from Vietnam to sell in large supermarket systems. They also import agricultural raw materials to Thailand for processing.

Attending the 5th Vietnamese Goods Week in Thailand – Udon Thani 2021 organised by the Vietnamese Embassy in Thailand in collaboration with Central Group, we witnessed the preference of Thai consumers for Vietnamese agricultural products. Stalls selling lychee, dragon fruit, and coffee always attracted a large number of Thai customers seeking information and buying products.

The Bac Giang lychee, although its price is two to three times higher than that of Thailand, still won favour in this market. Wanchai, a Thai customer said: “Although the price is a bit expensive, I find Vietnamese lychee very delicious. Vietnamese lychee exported to Thailand has become a specialty.”

This event is one of a series of trade promotion activities the Vietnamese Embassy’s Trade Office organised in recent years to promote the export of Vietnamese agricultural products to Thailand. Because of the COVID-19 pandemic, Vietnamese enterprises could not be present in Thailand, but they still sent their products to the event. The Vietnam Trade Office affirmed that such events have achieved very positive initial results.

Chief Merchandising Officer of Central Food Retail Emmanuel Couronne said: “Central Food Retail has imported Vietnamese agricultural products into Thailand since 2006 including dragon fruit and sweet potatoes. We have brought lychee to the Thai market since 2017. Currently, we are negotiating with Vietnamese enterprises to import more agricultural products.”

Besides Thai customers, Vietnamese goods are also consumed by another group of , the Vietnamese Thai community, according to Tran Thanh My. “We chose Udon Thani to hold this Vietnamese Goods Week as there is a large Vietnamese Thai community here. This is a customer group with high potential because they have great demand for Vietnamese products and they also have many small shops and supermarkets to distribute Vietnamese products,” My added.

She noted that although Vietnamese agricultural products have good quality and competitive prices, they have yet to achieve any great advantage over Thai products. “Vietnamese businesses need to learn more carefully about market demand to meet the set standards. That means we should export and sell what the market needs but not what we have,” My added.

Emmanuel also shared that “For Vietnamese agricultural products, we choose products that have strengths and do not face much competition from Thai products. At the same time, we focus on importing value-added products such as agricultural products with geographical origin, or with advantages such as high-class flavors or out-of-season fruits.”

He said that Vietnamese businesses need to focus on improving food safety and complying with Thai standards as well as ensuring continuous supply to expand the presence of Vietnamese products in the Thai market.

According to Tran Thanh My, when exporting goods to Thailand, Vietnamese enterprises need to find reliable partners and agencies to assist them in registering the import and circulation of these products in Thailand. The import process also has many other regulations and the Trade Office of the Vietnamese Embassy is always ready to support Vietnamese enterprises.

Conference seeks to revive economy with long-term measures

The Ministry of Planning and Investment (MPI) held a consultation conference in Hanoi on October 1 on its draft programme on economic recovery and development in combination with improving internal capacity and resilience of the economy for the 2022-2023 period.

Speaking at the event, Minister of Planning and Investment Nguyen Chi Dung said the Government has issued a number of corporate support policies and measures, but most of them are short-term while there is not any comprehensive or long-term programme to gradually recover the economy and spur development after the pandemic is put under control.

The MPI’s programme aims to help Vietnam avoid missing opportunities when entering the new normal, Dung said.

Deputy Minister of Planning and Investment Tran Quoc Phuong said Vietnam needs to learn from lessons in pandemic prevention and control to revive the economy, focusing on promising fields such as processing industry, logistics and tourism to make breakthroughs.

He suggested combining both short and long-term goals, improving the capacity of workers and providing support for firms based on order of importance and priority.

The ministry also wished to collect feedback to develop green economy and step up the disbursement of public investment capital, Phuong said.

He outlined eight categories of measures, including controlling the pandemic, improving the capacity of medical system, maintaining macro-economic stability, controlling inflation, continuing with fiscal and monetary policies, and ensuring national financial safety.

Others include stepping up administrative reform, stimulating domestic consumption, facilitating digital transformation, attracting foreign investment, and improving workforce quality to meet requirements of the fourth industrial revolution.

Country Director of the Asian Development Bank in Vietnam Andrew Jeffries said Vietnam’s major trade partners are quickly recovering while domestic vaccination coverage is increasing, thus contributing to promoting growth.

He proposed Vietnam actively tap free trade agreements to boost exports, join the global supply chain more deeply. At the same time, the country should re-open in a safely manner, ensure healthy relations between banks and enterprises and take caution with bad debts./. 

Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes