The fifth Vietnam Business Forum will be held in both direct and virtual forms in Hanoi on December 17 by the Party Central Committee’s Economic Commission and the Government.

Organisers said the forum will look into ways to ensure major economic balances and the selection of suitable policies for 2023 and the following years.

There will be a plenary session, to be co-chaired by the Prime Minister, the head of the Economic Commission and leaders of the National Assembly, and four thematic workshops.

The hybrid event is expected to see the participation of more than 1,000 representatives from ministries, agencies, localities, international organisations, embassies, consulates general, businesses, associations, universities and research institutes, and domestic and foreign experts.

The five reports to be presented will look into Vietnam’s economic situation in 2022 and management orientations for 2023; the world’s economic prospects in 2023 and policy recommendations for Vietnam; Vietnam’s economic issues and Asia’s economic prospects next year; stabilising the financial market and making the financial and real estate markets healthy, creating a firm foundation for economic development in 2023; and speeding up public investment and paving way for corporate capital flows to create breakthroughs for Vietnam's economic growth in 2023.

Construction on Toto Vietnam faucet factory completed

Toto Vietnam Co. Ltd on December 12 held a ceremony to mark the completion of Toto Vietnam faucet factory in northern province of Vinh Phuc.

Work on the project, located at Thang Long Vinh Phuc Industrial Park, started in January this year. It has a total investment of 100 million USD.

Once operational, the factory is expected to manufacture 600,000 and assemble 1.3 million faucets, valves and accessories for toilets and kitchens a year.

Hoa Binh exports first batch of Dien pomelo to UK

The first batch of Dien pomelo from the northern province of Hoa Binh was exported to the United Kingdom (UK) on December 12.

The batch includes nearly 11 tonnes of Dien pomelo produced by farmers in Yen Thuy district’s Ngoc Luong commune.

Dien pomelo plantations cover about 2,300 ha, accounting for 45% of the total area in the province. Yen Thuy district alone is home to more than 800ha.

In 2019, the National Office of Intellectual Property issued a trademark certificate for Dien pomelo in Yen Thuy district. Of which, 30 ha of Dai Dong Agricultural Cooperative were granted codes and certified as meeting VietGAP standard.

Nguyen Thi Thu Huong, Director of RYN company, which involves in the export, said as the UK is the most demanding market in Europe and the shipment paves the way for the product to become more popular in the world.

Conference seeks to boost Vietnam-India trade

A trade promotion conference between Vietnam and India was held on December 12 in Ho Chi Minh City, aiming to foster trade and industrial cooperation among the business communities of the two countries.

According to Anil Agarwal, President of the Federation of Telangana Chambers of Commerce and Industry (FTCCI), Vietnam and India have a long-standing traditional relationship, with trade, industry and investment as important pillars.

India is one of Vietnam's eight largest trade partner, while Vietnam is India's 15th biggest trade partner and the fourth largest in Southeast Asia, showing the relationship between Vietnam and India is expanding towards a comprehensive strategic partnership in the future.

Vietnam mainly invests in India in pharmaceuticals, information technology, chemicals and construction materials. Meanwhile, India is creating more favorable conditions for Vietnamese enterprises to access the Indian pharmaceutical and agricultural product market, which is also an advantage for Telangana state to export its products.

Madan Mohan Sethi, Consul General of India in HCM City, said that India has mechanisms and policies in place to attract foreign investment, including in the Vietnamese business community. Indian diplomatic missions and promotion organisations are making efforts to promote trade, immigration procedures, and provide market information for businesses and foreign investors, he said.

Within the framework of the event, the Vietnam Chamber of Commerce and Industry’s Branch in HCM City and the FTCCI signed a Memorandum of Understanding to support businesses and promote trade between the two sides.

Vietnam attends 56th Hong Kong Consumer Goods Fair

A wide range of Vietnamese products have been put on display at the 56th Hong Kong (China) Consumer Goods Fair which is running from December 9 to January 1, 2023.

Nguyen Ngoc Ha, director of Viet Kwong Company cum representative of Hanoi Trade Joint Stock Corporation (Hapro) in Hong Kong, revealed that the company has participated in the fair for the past eight years, while Hapro has been joining the event for four years.

This year has seen Hapro become the third largest sponsor of the expo for the first time, with the company's products meeting the stringent requirements of the demanding market and proving popular among customers in Hong Kong (China).

All of the products on sale are unique and have all been imported from the Vietnamese market via official channels.

However, Ha has advised local businesses to strive to improve the overall quality of products on offer, and gain greater insights into consumer tastes in a bid to secure a long-term foothold in the demanding market.

Recently, she said Hong Kong consumers have become increasingly interested in Vietnamese condiments such as fish sauce, chili sauce, pepper, and satay, with the amount of consumption for these items enjoying a remarkable increase.

Nine new airports proposed by CAA
     
The Civil Aviation Authority (CAA) has proposed the Ministry of Transport add nine airports to the national airport planning for 2030 with a vision to 2050.

The proposed airports are in Ha Giang Province (Tan Quang), Yen Bai, Tuyen Quang (Na Hang), Ha Tinh, Kon Tum (Mang Den), Quang Ngai (Ly Son), Khanh Hoa (Van Phong), Dak Nong and Tay Ninh.

The proposal was raised after the CAA spent a month working directly with ten provinces on the proposal of developing airports in these provinces. One proposal for an airport in Moc Chau in Son La Province was eliminated because of the unfavourable weather conditions.

CAA urged localities to set up feasibility reports and capital-raising plans for building the airports, adding that the State budget would not provide capital for developing these airports.

According to the airport planning which the Ministry of Transport submitted to the Government, there will be 28 airports across the country by 2030 and 31 by 2050.

The transport ministry raised six standards for airport development, including cargo transportation demand, socio-economic development demand, national defence and security, emergency and relief response, natural condition and approach distance.

Pham Huu Son, General Director of TEDI, which was providing consultancy to airport planning, said that these standards aimed to prevent the waste of resources and served as the base for private investors to quantify the efficiency when investing in airport development following public–private partnerships.

Priority should be given to remote areas and islands or localities with large potential for tourism development, Son said.

He added that as the economy was developing rapidly, airport planning needed to be flexible and open to allow localities to actively call for investment in developing the infrastructure system.

Currently, there are 22 airports in Viet Nam, including 12 international and ten domestic ones. A new international airport, Long Thanh, is under construction. 

Sustainable development holds the key to the success of Vietnamese coffee
     
Vietnamese coffee industry has made steady headway in the international competitiveness rankings with a processing capacity of 2.36 million tonnes per year, according to Deputy Minister of Agriculture and Rural Development Phung Duc Tien.

Tien was speaking at the international conference on coffee on December 11.

The deputy minister said Viet Nam had 710,000ha of coffee with a yield of 2.7 tonnes per hectare in 2021, three times higher than the average global yield. Between 2021 and 2022, the country produced 1.7 million tonnes and exported US$3.9 billion worth of coffee, up 31.3 per cent year-by-year.

Amid the unfavourable global conditions, he urged the Vietnam Coffee Cocoa Association (Vicofa) to push ahead with sustainable development, focus on intensively-processing methods, and promote Vietnamese coffee culture to expand its global footprint.

Le Van Duc, deputy director of the Plant Cultivation Department, Ministry of Agriculture and Rural Development, said Viet Nam is among the countries with the highest coffee yield in the world. It also secures the 6th position in terms of coffee-growing areas.

The EU is its largest importer, consuming 42 per cent of its coffee export. Asian countries come second, and the US comes third with 10 per cent. By types of coffee, robusta makes up 75 per cent of the export whereas around 20 per cent go to processed coffee.

Do Ha Nam, vice president of Vicofa, remarked that Vietnamese coffee exports normally reach a peak between December and March and fall off peak afterward. In the first six months of 2022, the figure topped 1 million tonnes, the highest in the past several years.

Out of 10 large coffee exporters in Viet Nam, six are Vietnamese companies and four are foreign-direct-investment-financed ones, indicating that the latter are well positioned to expand domestically.

Vanusia Nogueira, executive director of the International Coffee Organisation (ICO), remarked that global coffee prices go up and down in a cycle of two to three years over the past 20 years.

The executive director suggested three likely scenarios for global coffee consumption by 2030. One of the scenarios was that the consumption would grow by 2.5 per cent annually in the next eight years, reaching 48 million 60-kg-bags in 2030.

Victor Mah, president of the ASEAN Coffee Federation and ASEAN Coffee Institute, claimed that the two organisations are committed to giving full support to all their members in promoting domestic coffee consumption as well as trade activities for ASEAN coffee.

ADB and BIWASE sign loan to support sustainable waste management
     
ADB and Binh Duong Water Environment Joint Stock Company (BIWASE) have signed a US$13 million loan to finance the construction and operation of a composting plant and waste-to-energy (WTE) facility in Binh Duong Province in Viet Nam.

The financing comprises $7 million from ADB’s ordinary capital resources and, $6 million from the Leading Asia’s Private Infrastructure Fund (LEAP) administered by ADB. The financing package also includes a parallel cofinancing of $7 million from the Japan International Co-operation Agency.

The composting plant will have a processing capacity of 840 tonnes daily while the WTE facility will be able to process 200 tonnes of industrial and municipal solid waste per day to generate 5MW of electricity for in-house use at the South Binh Duong Solid Waste Treatment Complex. Output from the compost facility will be sold as fertiliser for agricultural use.

Vietravel repurchases over $21 million in bonds before maturity
     
Vietnam Travel and Marketing Transports JSC (Vietravel) have announced it would buy back a batch of bonds before maturity.

Accordingly, Vietravel will repurchase an entire lot of bonds, worth VND500 billion (US$21.1 million), issued on December 21 last year with a term of 24 months and a maturity date of December 21, 2023.

Of which, the interest rate applied for the first two 6-month periods is 8.2 per cent per year. The rates are calculated at 2.5 per cent plus the average interest rate of regular postpaid savings deposits in subsequent periods.

This means Vietravel pays the bond interest to bondholders a year before maturity, which is a positive signal that Vietravel has been able to balance cash flow to pay off debts ahead of time, thanks to the recovery of the Vietnamese tourism industry.

VinFast launches official US VinFast community and test drives in California
     
VinFast has announced the launch of its official US VinFast Community - an online forum for VinFast electric car owners and enthusiasts in the US.

To celebrate the new milestone, VinFast organises a series of VF 8 test drive events for consumers in California from December 8 – 11, prior to the first customer deliveries.

An exclusive launch ceremony of the US VinFast Community took place on December 10, with the participation of 500 anticipated guests who are VinFast reservation holders along with experts and influencers in the automotive and technology field. The Official US VinFast Community is an online web forum, a valuable, inviting, and welcoming place for VinFast EV owners and enthusiasts to share knowledge, and build a dynamic VinFast community who share a passion for EVs.

Following the US VinFast Community launch, VinFast will continue to announce communities in other international markets such as Canada, Germany, France, and the Netherlands. 

Vietnam's visa policy yet to attract international tourists

While there are several explanations for the modest number of international visitors to Vietnam this year, experts have pointed out that the country's improper visa policy was the main cause.

A report from the General Statistics Office of Vietnam (GSO) said that the country received 2.95 million international tourists in the first 11 months of 2022. The total figure showed a 21.10 times increase against last year's, but is down 81.90 percent compared to the number of 18 million recorded in 2019 before the Covid-19 pandemic broke out. With these results, the country may fail to reach its plan of welcoming five million international visitors this year.

There have been some reasons explained by local authorities for the situation including the Russia-Ukraine war, China's tight Covid-19 prevention policy, and the rising inflation in Europe and the US which have affected the number of tourists coming from these markets.

However, a tourism expert, Nguyen Thai Minh, said that those explanations were not enough.

Talking about the issue, CEO of Image Travel & Events, Nguyen Ngoc Toan, noted that Vietnam’s visa policy should be more open in order to lure international tourists.

Director of the Ho Chi Minh City Department of Tourism Nguyen Thi Anh Hoa said that the list of 25 countries getting visa exemption to Vietnam is not competitive compared to that of other countries in the region. Singapore is offering visa exemption to visitors from 157 countries, Malaysia 155 countries, and Thailand 64 countries.

The official urged the government to expand the list of countries and territories qualified for visa exemption and e-visa. She proposed extending visa-free stay from the current 15 to 30 days to attract more tourists.

Nguyen Thien Phuc, Director of Product Research & Development at Vidotour Indochina Travel, said that, apart from the visa policy, a national communication strategy and contingent of trained personnel are needed for the domestic tourism sector.

State budget expanded thanks to production bouncing back

Bright colour has been seen in Vietnam’s state budget picture for the first 11 months of this year, with enterprises in general gradually weathering difficulties to stay afloat and go forward.

According to the General Statistics Office, a surplus of 12.26 billion USD was reaped in the total state budget in the January-November period, with spending estimated to be more than 59 billion USD – a year-on-year rise of 3.4%.

Meanwhile, the state budget revenue is estimated to reach 71.26 billion USD, equivalent to 116.1% of the year’s initial estimates and increasing 17.4% year-on-year. All types of revenues have expanded year-on-year, mirroring almost all sectors in the economy bouncing back.

Concretely, domestic revenues hit 56.55 billion USD, equal to 110.5% of the year’s initial estimates, and climbing 13.5% year-on-year.

Revenues from crude oil sat at 3 billion USD, or 244.6% of the year’s initial estimates and rising 77.6% year-on-year.

It is also forecasted that revenues from exports of crude oil for the whole year will be 2.96 billion USD, a year-on-year expansion of 141.1% as compared to the initial estimates and occupying 4.2% of total budget revenues. This is made possible on the back of an increase in crude oil prices, averaged at 107.05 USD per barrel.

What is more, revenues from export-import activities in the January-November period touched 11.45 billion USD, tantamount to 132.4% of the year’s initial estimates and up 25.1% in comparison with that in the same period last year.

Total 11-month export-import turnover hit 673.82 billion USD – representing a rise of 11.8% year-on-year. In which the export turnover reached 342.21 billion USD – up 13.4%, and the import turnover stood at USD 331.61% – a year-on-year 10.1% climb. This would mean 10.6 billion USD in trade surplus.

It is predicted that the revenues from export-import activities for the entire 2022 will be as much as 18.26 billion USD, a 23.6% increase year-on-year as compared to the initial estimates – holding 15.2% of the total state budget revenues.

The central and local budget revenues for the whole year are estimated to exceed by 3.47 billion USD and 5.65 billion USD, respectively.

Ho Chi Minh City sets growth target of 7.5-8% for 2023

The Ho Chi Minh City People’s Council has passed a resolution on socio-economic development tasks in 2023, aiming to achieve economic growth of between 7.5% and 8% next year.

The city also aims for labour productivity growth of 7% and will strive to maintain the proportion of services in its economic structure at above 60%.

The rate of public disbursement is set at 95% while social spending on science and technology will average 1%.

In other targets, Vietnam’s southern economic hub aims to welcome 4.5-5 million foreign visitors and generate tourism revenue of 120 trillion VND (5 billion USD).

In order to fulfil such targets, Ho Chi Minh City will continue stepping up administrative reform, improving public service delivery, enhancing the business environment, and addressing obstacles relating to investment.

The city will accelerate the progress of key infrastructure, transport and urban projects, and create breakthroughs in digital transformation and developing a knowledge-based economy.

In 2022, Ho Chi Minh City’s economy is expected to exceed the target and grow by 9.03%. The city’s government revenue is estimated at 457.5 trillion VND (19.4 billion USD), up 17.5% from last year.

Vietnam’s auto imports shoot up in November

The number of cars imported into Vietnam last month soared sharply, driven by the strong domestic demand.

Data from the General Department of Vietnam Customs showed the country imported over 22,700 completely-built-up (CBU) cars worth US$468 million in November, surging by 58.8% in volume and by 46.7% in value over October.

In January-November, the country imported 151,600 CBU cars for US$3.4 billion, up 4.7% in volume and 5.7% in value year-on-year.

Vietnam’s top three auto exporters were still Indonesia, Thailand and China, accounting for over 93% of the nation’s auto imports.

This year, Indonesia has emerged as the biggest auto seller of Vietnam by volume, with nearly 64,000 cars valued at US$934.4 million, followed by Thailand with some 61,100 units worth US$1.2 billion.

China shipped over 16,200 cars worth US$670 million, most of which were trucks and special-use vehicles.

Heineken to invest US$500 million in Vietnam in next 10 years

Heineken has invested US$1 billion in Vietnam and will continue to pour US$500 million into Vietnam in the next 10 years, said Heineken CEO Dolf van den Brink.

On December 11, Vietnamese Prime Minister Pham Minh Chinh met Brink at the company headquarters in Amsterdam, Netherlands.

Chinh spoke highly of the Heineken-SATRA cooperation in Vietnam over the past 30 years. He lauded the efforts to implement a sustainable development strategy and circular economy into the business operation.

Brink said that Vietnam was an important and one of the most developing markets in the world. After 31 years of being present in Vietnam, the company has invested US$1 billion and has always ranked among the top three businesses with a remarkable contribution to the national budget and social security.

Brink expressed hope that Vietnam will remain a country with world-recognized business standards, especially in tax policy, to lure more investors. He also suggested the consideration of excise tax calculation on non-alcoholic beers.

In response to Brink’s speech, Chinh encouraged the company to continue to use technological advances in production and promised to create a favorable business environment for the company’s expansion, with the tax policy improvement in the spirit of win-win, “harmonious benefits, shared risks” with investors.

Expy project in Danang gets nod

The Ministry of Transport has given the nod to the Hoa Lien-Tuy Loan expressway project, which will run across Danang City and is part of the Eastern North-South expressway project, with a total investment of over VND2.1 trillion.

Of the total investment sourced from the State budget, over VND951 billion will be used for site clearance and compensation. The construction costs account for more than VND902 billion of the total, while the rest will be used to cover other costs.

The 11.5-kilometer-long expressway will start at Hoa Lien Intersection in Hoa Lien Commune in Hoa Vang District and end at Tuy Loan Intersection in Hoa Nhon Commune in the district, the local media reported.

The road project will get off the ground in 2023 for completion in 2025. It will have six lanes and allow a maximum speed of 80 kilometers per hour.

GEG disbands solar energy subsidiary

Gia Lai Electricity Joint Stock Company (GEG) has passed a resolution to disband its subsidiary Phong Dien Solar Energy Company, which is headquartered in Hue City, Thua Thien-Hue Province.

The Phong Dien solar energy company, founded in 2019, has total charter capital of VND120 billion and its legal representative is Tran Nguyen Quoc Huy.

Besides, to ensure interests of its shareholders, the board of GEG decided to suspend a plan to issue 30.3 million GEG shares to existing shareholders due to a decline in share price and will seek the nod for another share issue at its upcoming general meeting. On December 7, GEG closed at VND13,000 per share, lower than the price approved for the share issue at VND14,000.

On August 5 this year, GEG approved the plan of issuing over 30.3 million GEG shares with the par value of VND14,000 to mobilize VND425 billion. The proceeds would be contributed to Tien Giang Wind Energy Joint Stock Company to implement the Tan Phu Dong 1 power project.

As for its business performance, GEG in the third quarter this year saw its net revenue up 67% year-on-year at over VND521 billion and net profit up 2.4 times over the same period last year at VND125 billion.

China tightens regulations on agricultural imports

China has revised its regulations on agricultural imports, making it harder to sell the products to its market, the Plant Protection Department said.

Vietnam now has seven traditional export fruits, comprising mango, dragon fruit, longans, lychees, watermelons, rambutans and jackfruits, and five fruits exported via phytosanitary protocols, namely mangosteen, grass jelly, durian, bananas and sweet potatoes, that are allowed to be exported to the Chinese market, the news site Congthuong.vn reported, citing Dr. Phan Thi Thu Hien, a representative of the Department of Plant Protection.

She was speaking at a forum promoting agricultural exports to China held on December 10 by the department.

Currently, China is no longer an unfastidious market, as it requires farmers to meet its requirements on the planting area, including the Good Agricultural Practices standards. At the same time, exporters must specify planting area codes, the name of the packaging facility, and the registration numbers and satisfy the ISPM-15 standards.

Meanwhile, packaging facilities are told to set up quality management and traceability systems, and the contents of the package must be stored separately after applying pest control measures.

Besides, exporting items would be returned or revoked if they did not comply with China’s regulations.

The country also requests overseas food manufacturers, processors and storage facilities granted an HS code in 2021 to update their information before June 30, 2023, under Decree 248. The department has posted guidelines for registering for the HS code or giving additional information on its portal.

Cybersecurity product for families launched

Smart Cyber Security, a newly-established enterprise under the auspices of the National Innovation Center (NIC), has launched an Internet safety product for families called SafeGate Family.

SafeGate Family is the first cybersecurity solution for families to be introduced in Vietnam, featuring a high-quality Wifi 6 router and a cloud computing mobile app.

Unlike other cybersecurity solutions, SafeGate Family operates through Security Cloud services, helping protect all household devices.

The new cybersecurity product also protects families against cyberattacks and malware, preventing toxic and unsuitable content for children.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes