The Can Tho People’s Committee has called for industrial reform as the city’s Industrial Production Index (IPI) is not growing as quickly as in other cities.

At a meeting of the People’s Committee, departments and district officials on Tuesday, the city’s Department of Planning and Investment reported that Can Tho’s IPI was 4.4 per cent lower than in January.

In addition, the overall IPI in the first two months was only 5.63 per cent higher compared to the same period last year. This was the lowest IPI increase among other big cities in the country.

Nguyen Minh Toai, director of the city’s Department of Industry and Trade, said the city’s rice harvest season had not arrived yet and workers were either on Tet (Lunar New Year) break or spending their time maintaining machinery for the harvest season.

The city’s IPI is mostly tied to rice and fishery production and processing, and will increase once the harvest season starts and workers resume their normal work load after Tet break, he said.

However, the People’s Committee said the city’s low IPI was due to over-reliance on the rice and fishery sectors, which are insufficiently profitable and slowing the city’s growth.

The committee said the Department of Industry and Trade should work with other departments to introduce more advanced technologies and reform the city’s industrial production towards industries with higher added value, moving away from reliance on rice and fishery.

The departments are expected to propose policies that would help achieve these results by the end of March.

The leaders of the city’s districts have also been urged to help locals and businesses begin construction projects, since the IPI also includes the construction sector. 

Tra fish prices high on low supply, processers face shortage
     
The price of tra fish in the Cuu Long (Mekong) Delta has increased to a record high of VND30,000 (US$1.3) a kilogramme while processors face a shortage of fresh fish.

A processing company executive in Chau Doc City said his company needs around 200 tonnes of fish a day to meet export demand but is unable to buy that volume now despite paying high prices at many places.

Duong Nghia Quoc, chairman of the Viet Nam Pangasius Association, said the shortage has hit not just processors who do not have their own fish farming areas but even those who do.

He blamed the shortage on a severe shortage of fish fries, whose breeding in the delta has failed to meet demand because of several reasons.

The supply of tra fish for processing for export this year would be limited, he said.

Export prices could remain high this year because it is not easy to increase the farming area rapidly since tra farming requires many conditions and a lot of investment, he said.

In the delta, the farming areas mostly belong to processors and households that have tied up with processors.

The number of households farming tra is small because of stringent requirements from processors, according to the Viet Nam Pangasius Association.

Nguyen Ngoc Hai, chairman of the Thoi An Tra Fish Co-operative in Can Tho City’s O Mon District, said the breeding of fish fires faced many difficulties in the fourth quarter of last year because of bad weather.

The price of fries remains high, with the 30-per-kilogramme category costing VND60,000, he said.

But it is expected to decline in the second quarter of this year, he said.

In 2016, tra farmers had suffered losses because of low prices, and early last year many stopped raising the fish since they were afraid of further losses.

However, exports to China rose since early last year, immediately leading to a shortage of fish for processing. Since then, prices have increased sharply.

Last year, tra exports to China were worth US$410 million, a 34.8 per cent rise from 2016, according to the Directorate of Fisheries.

Truong Van Phu, deputy head of the O Mon District Economic Bureau in Can Tho City, said with tra prices at VND27,000-29,000 a kilogramme, farmers earn high profits.

Nguyen Huu Nguyen, director of the Chau Phu District Tra Fish Co-operative in An Giang Province, said most tra farmers had a good Tet (Lunar New Year) this year because of the high prices.

Tra exports have shown good signs this year but farmers have to wait until the second quarter of the year to get enough fish for breeding further, he added. 

Viet Nam to export longans to Australia
     
Vietnamese longans may be exported to Australia in 2019, said a delegation of the Australian Department of Agriculture and Water Resources.

According to the Viet Nam Trade Office in Australia, the delegation last month visited two longan farming, processing and packaging facilities in northern Hung Yen Province and southern Ben Tre Province. They are completing evaluation data and are likely to grant a licence to allow Vietnamese longan to be exported to Australia.

The Ministry of Industry and Trade said this was good news for Viet Nam’s fruit sector as Australia is a potential market for fruit export. Vietnamese fruits can be sold at high price in the market. Earlier, Australia has permitted the import of fresh lychees, mangoes and dragon fruits from the Southeast Asian nation.

Last year, fruit and vegetable exports set a record of US$3.5 billion, rising by 40 per cent from the previous year. Vietnamese fruits and vegetables are sold in 40 countries and territories around the world.

February’s Viet Nam PMI hits 10-month high on improved demand
     
Local business conditions have strengthened continuously since December 2015, pushing the Viet Nam Purchasing Managers’ Index (PMI) to a 10-month high of 53.5.

According to a survey of Nikkei’s IHS Markit released on Thursday, this was a fractional increase from a PMI of 53.4 in February.

“The Vietnamese manufacturing sector continued its solid start to the year in February, with many of the survey’s indices pointing to gathering growth momentum,” said Andrew Harker, Associate Director at IHS Markit.

Output rose at the fastest pace in 10 months, while the expansion in purchasing activity was the sharpest since the end of 2016 as firms reported efforts to build inventories, Harker said, adding this was suggestive of manufacturers being optimistic regarding near-term prospects for client demand, while data on output expectations also signalled positive sentiment.

The survey showed that a pick-up in the rate of production growth was recorded as panellists reported stronger client demand. There was evidence of stock building in February as manufacturers raised their purchasing activity sharply, and pre-production inventories increased at the fastest pace for a year. Meanwhile, the rate of input cost inflation remained elevated and firms raised their selling prices again, albeit at a slightly reduced pace.

The rate of growth in manufacturing output quickened to a 10-month high during February, with panellists reporting improved customer demand. This was also a factor behind another solid increase in new orders. New business has now risen in each of the past 27 months, with new export orders also expanding solidly in February.

Despite further growth of new orders, backlogs of work decreased amidst reports from firms of efforts to clear outstanding businesses. Moreover, the rate of depletion was the sharpest in 20 months. Employment continued to rise at a solid pace in February, although the rate of job creation eased from that seen in January. Where employment increased, this was mainly linked to higher output requirements.

Alongside higher employment, firms also raised their purchasing activity to support output growth, while efforts to build inventories were also mentioned. The rise in input purchase supported a solid increase in stocks of purchases, the most marked for a year. Meanwhile, stocks of finished goods decreased, but at a marginal pace that was the weakest in the current eight-month sequence of decline.

A further steep rise in input costs was recorded in February, with the rate of inflation only slightly lower than January’s 81-month high. Panellists mainly attributed higher input prices to a rise in raw material costs. There were some reports that suppliers had responded to a stronger demand for inputs by raising their prices.

With input prices increasing, manufacturers raised their output charges accordingly. Selling price inflation was recorded for the sixth month running, with the latest rise only slightly slower than at the start of the year.

Suppliers’ delivery times were broadly unchanged over the month. While a reported scarcity of raw materials resulted in longer lead times in some cases, other respondents noted faster deliveries. Vietnamese manufacturers remained optimistic that output would increase over the coming year in line with company plans. That said, sentiment dipped to the lowest since last June. 

NSRP project achieves ready for start-up milestone
     
 Nghi Son Refinery and Petrochemical Limited Liability Company on Wednesday received the Ready For Start Up (RFSU) certificate for its Nghi Son Refinery and Petrochemical Complex Project (NSRP project).

The RFSU certificate, together with a satisfactory safety record, is an important milestone for the project given its complexity, even by international standards.

Mr. Turki Alajmi, CEO of the company, said: “We are proud to achieve this critical milestone for the NSRP project today. The project is strategically important to meet the growing domestic demand for refined and petrochemical products driven by rapid industrialisation and modernisation of the country.”

“On this occasion, on behalf of NSRP, I would like to thank all the stakeholders in the NSRP project, including the government of Viet Nam and Thanh Hoa authorities, who have provided the most favourable investment environment for the project. I would also like to thank NSRP’s international lenders who have been very supportive of NSRP by providing funding to the project. I would like to thank our sponsors for their strong support and for providing us with the manpower and world-class experience enabling the success of the NSRP Project,” Mr. Alajmi said.

He was also thankful to EPC Contractor JGCS and its subcontractors for their hardwork to fulfil the requirements of the EPC contract, meeting the strict international standards of the NSRP Project and cooperating with NSRP to achieve the milestone.

“Last but not the least, I am extremely grateful to all the employees of NSRP who have been working hard to achieve this milestone and make the refinery operational to produce fuel for the Vietnamese market”, Mr. Alajmi added.

Speaking at the ceremony, Mr. Junzo Yamamoto, general manager of NSRP Refinery, said: “I am very excited to be here today after the construction and commissioning of the NSRP project. This is an important milestone with international health and safety standards leading to the smooth operation of the project. The project is now ready for performance tests, after which the operational phase will begin. Following the RFSU, we will try our best to ensure that the start-up and operations of the refinery complex will be safe, smooth and efficient. The first commercial product is expected to be out in May 2018.”

By achieving RFSU, the NSRP Project is one step closer to the goal of achieving energy security for the Government.

The NSRP project is a joint venture sponsored by four internationally reputed corporations including Viet Nam Oil and Gas Group, Kuwait Petroleum Europe B.V. from Kuwait, Idemitsu Kosan Co. Ltd and Mitsui Chemical, Inc. from Japan.

The NSRP Complex is located in the Nghi Son Economic Zone in Hai Yen Commune, Tinh Gia District, Thanh Hoa Province. The refinery has a capacity to process 200,000 barrels of crude oil per day imported from Kuwait, equivalent to 10 million tonnes per year. Premium diesel accounts for the highest, followed by regular diesel, RON 92, RON 95, LPG, jet fuel and numerous petrochemical products.

The total estimated cost of the project is US$9 billion, which makes it the largest foreign direct investment in Viet Nam to date. 

HDBank offers 0.7% extra interest
     
In continuation of its efforts to bring happiness to customers at the beginning of the lunar new year, HDBank launched the Bach nien phat tai (100 years of prosperity) programme, which offers extra interest of up to 0.7 percentage points to depositors.

The programme is applicable to individual customers aged 28 and above who make deposits for six-13 months until March 15.

Customers will get interest commensurate with their ages and deposit amount.

With the incentive rate, the maximum interest rate will be 7.1 per cent for six months and 7.6 per cent for 13 months.

The bank also has the “A Spring of Union - Prosperous Tet, Win Kilo of Gold” programme running from February 8 to April 13.

Customers who deposit at the bank and meet certain conditions will also get scratch cards with attractive gifts and go into a lucky draw that offers prizes including a kilogramme of SJC gold. 

FLC to increase 30% property supply in 2018
     
Estate developer FLC Group will increase its property product supply by 30 per cent this year, said Trinh Van Quyet, FLC’s chairman.

According to Quyet, the group’s integrated revenue reached VND110 trillion (US$4.83 billion) last year, most of which came from real estate projects.

“In recent years, FLC has become one of the branded property names, with high evaluation from the market and breakthrough developments. Hotels and villas in resorts have been one of our main sources of revenue,” he said.

In 2017, FLC completed the construction of FLC Ha Long in Quang Ninh Province. The group currently has resort complexes in Vinh Phuc, Thanh Hoa and Binh Dinh provinces. It has provided some 2,800 hotel apartments, 1,800 villas and 2,000 commercial apartments to the market.

FLC targets a revenue of VND14 trillion in 2018 to maintain its leading position in the resort property segment in Viet Nam, said Pham Van Nam, deputy head of FLC’s marketing department.

Nam said FLC had more than 20 agents distributing estates nationwide.

“Our revenue of resort complexes in the last two quarters of 2017 reached record levels. Most of our events to introduce or sell our projects attracted 500 to 1,500 investors,” he said.

Condotel to be main business

According to FLC, condotel will continue to be the biggest segment of the group’s estate projects in 2018 as the business model has proved effective for investors.

The group will also give priority to developing middle-income property projects to meet the increasing demand in the market.

“FLC will continue to complete and expand projects, including FLC Quy Nhon, FLC Sam Son, FLC Ha Long and FLC Vinh Phuc, as well as introduce a range of new projects, including FLC Quang Binh and FLC Do Son,” the group said in a statement. 

VIS to up foreign ownership
     
The Vietnam-Italy Steel JSC (VIS) plans to lift the cap of foreign ownership in the company from the current limit of 49 per cent.

The plan aims to attract more capital, improve the liquidity for the firm shares on the stock market and serve further business development.

The company’s management board will propose shareholders at the coming annual shareholders’ meeting approve the company’s request to withdraw from some of the business sectors involved in national security and safety such as transportation.

In 2017, VIS earned VND6.1 trillion (US$271 million) in net revenue, a yearly increase of 64 per cent and equal to 98 per cent of its full-year targeted figure.

The company recorded VND55.3 billion in pre-tax profit, a decrease of 26 per cent year on year and equal to 36 per cent of the target for 2017.

VIS also plans to pay VND36.9 billion in dividend for shareholders, equal to a 5 per cent dividend payout ratio.

The company targets its revenue will increase by 16 per cent annually to VND7.09 trillion this year and its pre-tax profit will rise 64 per cent to VND90.4 billion.

Vinacomin ups coal stake
     
The Vietnam National Coal and Minerals Group (Vinacomin) on Thursday registered to buy more than 4.47 million shares of its subsidiary Nui Beo Coal JSC (HNX: NBC).

The share purchase will be carried out between Thursday and March 30 via order-matching transactions.

Vinacomin now holds more than 19.5 million shares of Nui Beo Coal JSC, equal to a 52.9 per cent stake in the mining firm.

The deal may help increase Vinacomin’s stake in the local mining business to 65 per cent.

Vinacomin had previously failed to buy that amount of NBC shares between December 29, 2017 and January 26, 2018 due to unfavourable market trading condition.

In late January, Nui Beo Coal JSC reported it earned VND415 billion (US$18.4 million) in revenue and VND57.6 billion in net profit for the fourth quarter of 2017, up 25 per cent and 203 per cent year on year.

The fourth-quarter earnings figures helped the company raise its full-year revenue to VND1.49 trillion and pre-tax profit to VND99.3 billion, up 22.6 per cent and 101.67 per cent year on year. 

Wood export growth recorded in most markets

Vietnam exported wood and timber products worth 1.48 billion USD to 38 markets in the first two months of 2018, a year-on-year rise of 38.3 percent.

Growth was reported in most markets, including the US (29 percent), China (29.6 percent), Japan (34.5 percent) and the Republic of Korea (48 percent).

Strong hikes were recorded in Switzerland (508 percent), Finland (486.5 percent), Turkey (187.6 percent), Saudi Arabia (187.4 percent), Malaysia (138 percent) and the Czech Republic (104.8 percent).

Chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA) Nguyen Quoc Khanh advised wood companies to pay more attention to international standards to reach out further to the world.

He noted that since major global wood producers are shifting to other industries, it would not be difficult for the Vietnamese wood sector to increase its market share in the global market.

Vietnam hopes to enjoy wood export growth of 13 percent in 2018, 13.7 percent in 2019 and 14.5 percent in 2020, he added.

To realise these goals, wood firms should invest in technology to reduce production costs and increase quality of products and their added value, Khanh recommended.

It is necessary to study a long-term strategy of material production, improve competitiveness, encourage forestry development and say no to illegal logging, he added.

Hoa Phat exports more than 30,000 tonnes of steel in February

Hoa Phat Group, a major industrial group in Vietnam, announced that it exported 30,800 tonnes of steel to the US, Australia and Asian countries in February.

In the month, the group produced 163,500 tonnes of steel. It sold nearly 50,000 tonnes in three days, from February 21-23, 15,000 tonnes of which were shipped to the US.

As the group aims to produce 2.3 million tonnes and export 250,000 tonnes in 2018, it will optimise production at its plants, especially the Hoa Phat Integrated Complex in Kinh Mon district, Hai Duong province, while pushing the construction of the Hoa Phat Dung Quat iron and steel production complex in Quang Ngai province.

Hoa Phat Group said it hopes to earn more than 100 trillion VND (4.4 billion USD) in revenue by 2020, the year the Hoa Phat Dung Quat iron and steel production complex is expected to become fully operational.

In 2017, the group earned 46.8 trillion VND (2.05 billion USD), up 38 percent from 2016, and hit a record post-tax profit of 8 trillion VND (351 million USD), surpassing its target by 33 percent, up 21 percent year on year.

Over the past ten years, subsidiaries of ​the group have contributed more than 20 trillion VND (878 million USD) to the State budget, equivalent to the amount of the central province of Quang Nam, one of the nation’s top 10 contributing provinces.

Heated debate over new pharmaceutical FIE regulation

Decree No.54/2017/ND-CP, which was issued in 2017 to guide the implementation of the Law on Pharmaceuticals and took effect on July 2017, has caused great concerns among foreign pharmaceutical companies.

The draft circular to guide the implementation of Decree 54 is being formulated to provide further guidance to Article 91(10).

According to Article 91(10) of the decree, foreign invested enterprises (FIEs) holding import rights but no distribution rights are prohibited from conducting “activities directly related to the distribution of drugs or drug materials in Vietnam.” Distribution is defined by Article 91(10) to include “transporting or providing storage services for drugs/medicinal materials.”

At the workshop on the new policy for pharmaceutical FIEs jointly held by the American Chamber of Commerce in Vietnam (Amcham) and the Vietnam Association of Foreign Invested Enterprises (VAFIE) this morning, Chung Yee Seck, lawyer of Baker & McKenzie, said that according to Dispatch No.9436, the FIEs in question need to adjust their current business model to satisfy Article 91(10) of Decree 54.

Thereby, FIEs had to stop providing drug storage and transportation services to third parties starting from July 2017 and change their business model to that of a drug importing company.

Additionally, Decree 54 has retroactive effect on FIEs that are already licensed to provide drug storage and transportation services to third parties and this is a problem under Vietnamese laws.

Article 91(10) noted that if it is applied retroactively and if it will be implemented in a way that suspends or stops the operation of already-licensed FIEs, it could give rise to claims under international investment protection treaties for inappropriate cancellation, resulting in international arbitration.

Thereby, in the draft circular to guide Decree 54, FIEs suggest removing “cannot transport drugs” and to formulate the law to ensure that FIEs have the freedom of negotiation with a local wholesaler regarding the place of delivery, which should not be restricted to the FIE’s warehouse.

However, Nguyen Thu Trang, director of the WTO Centre and Economic Integration at the Vietnam Chamber of Commerce and Industry (VCCI), said “According to the services commitments form of the WTO, Vietnam did not commit to allow FIEs to conduct drug distribution services.

In order to ensure that Vietnam’s regulations are in line with international commitments, the contents of Article 2(3) of the draft circular guiding Article 44(1d) of the Pharmaceutical Law and Article 91(10-12) of Decree 54 need to be considered carefully.”

Trang confirmed, “Vietnam has never licensed FIEs to conduct distribution activities. With this draft circular, FIEs are allowed to import drugs but not distribute them, and Vietnam does not violate any commitments to the WTO.”

“This circular will be applied for FIEs with import rights but no distribution rights. In Vietnam’s WTO commitments, distribution services include transportation and storage. Therefore, if Vietnam does not allow FIEs to conduct distribution services, Vietnam cannot allow transportation and storage services under distribution services,” she added.

On the topic of (non-) retroactivity, lawyer Le Net said that Articles 152 and 156 of the Law on the Enactment of Legal Normative Documents stipulates that retro-activity is not allowed in case a new legislation introduces new legal obligations on actions happening at a time when such legal obligations had not been provided by law.

Retroactivity is also not allowed in case a new legislation introduces new legal obligations which were higher than those applied at the time when the actions took place.

In the opinion of economist Vo Tri Thanh, policy-makers should go beyond the country's commitments to the WTO and other partners and establish a more progressive legal framework.

Along with the integration process, Vietnam’s legal system has changed positively in line with economic development and international commitments and practices, which facilitate businesses in general and create a fair business environment for both foreign and domestic enterprises.

ASEAN economic ministers meet in Singapore

Economic chiefs of the 10 ASEAN countries gathered in Singapore on March 1 for the 24th ASEAN Economic Ministers’ Retreat (AEM Retreat).

The Vietnamese delegation was led by Minister of Industry and Trade Tran Tuan Anh.

Opening the event, Singapore's Minister for Trade and Industry Lim Hng Kiang said that the retreat is a chance for the ministers to discuss matters related to the ASEAN Economic Community (AEC), including the implementation of the AEC Blueprint 2025 in deepening economic integration.

He held that the recovering world economy will facilitate exports and growth of the member countries. 

The Singaporean minister said that ASEAN, as a well-connected region, is poised to benefit from the rise in investment, manufacturing activities and trade. This has helped the association to lure enterprises from all over the world and grasp new opportunities.

He stressed that the promotion of AEC construction will benefit the whole region, calling for the member countries to continue pursuing the economic facilitation and integration, thus everyone can benefit from the community.

As the ASEAN Chair in 2018, Singapore pledged to work with other member countries to build a “self-reliant and innovative” ASEAN with solidarity to overcome challenges and head to the future.

According to Lim, Singapore's economic objectives for 2018 are to deepen regional connectivity to position ASEAN as the region for increasingly seamless economic activity and growing opportunities.

The minister said innovation and the digital economy are key areas that Singapore intends to pursue under its chairmanship. The country aims to promote innovation, build up digital connectivity, and facilitate e-commerce flows.

Digital economy’s potential growth may reach US$200 billion, while e-commerce may hit about US$88 billion in 2025. 

Within the two-day retreat’s framework, the 16th AEM-European Union Trade Commissioner Consultations will be held on March 2 to speed up negotiations for a free trade deal between the two sides.

ASEAN, or the Association of Southeast Asian Nations, groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Planning row engulfs expansion of Vietnam's largest airport

The French consulting firm hired by Vietnam’s transport ministry to forecast the demand at the country's largest airport has said it should be prepared to handle 51 million passengers and one million tons of cargo per year by 2025.

Tan Son Nhat Airport in Ho Chi Minh City already handles 36 million passengers per year, way above its design capacity, according to ADPi Engineering.

ADPi has proposed enlarging the airport but limiting its capacity to 50 million passengers by 2025 to avoid the need for a new runway. It said the construction of a new runway would be expensive and cause increased environmental and noise pollution.

Instead the company has proposed building a new terminal with a capacity of 20 million passengers to the south of the airport, and more cargo terminals and plane maintenance facilities to the north.

Under the proposal, the expansion would cost over VND30 trillion (US$1.3 billion), excluding site clearance costs, ADPi estimated.

The proposal is similar to one made by the defense ministry’s Airport Design and Construction Company (ADCC), which also included new terminals, parking areas and technical facilities, while leaving out the construction of a new runway. Under ADCC's proposal, the expansion would need 24 hectares of land currently controlled by the defense ministry, and would cost VND19 trillion (US$830 million). The proposed expansion would take 2-3 years and would increase the airport's capacity to 43-45 million passengers per year.

Dr Nguyen Thien Tong, former head of the Department of Aviation Technology under the Technology University of Ho Chi Minh City, said the city wants to expand Tan Son Nhat Airport to the north, regardless of if there's a new runway or not.

Around 157 hectares of land controlled by the defense ministry lies to the north of the airport, including a golf course. 

The location is suitable for transport connections and the construction of more terminals, explained Tong, who is member of an expert group set up by Ho Chi Minh City's Party leader Nguyen Thien Nhan to advise the city on the expansion of Tan Son Nhat.

The group has submitted two proposals to the Prime Minister for consideration. Under the first proposal, no new runways would be built. Under the second proposal, a third runway would be constructed. However, both proposals suggest expanding the airport to the north, he said.

“The proposal compiled by Ho Chi Minh City differs from the one put forward by the French consultant, but both proposals should be considered,” Tong said, without mentioning the proposal commissioned by the defense ministry.

Under Ho Chi Minh City’s proposal, Vietnam should build a third terminal with capacity of 10 million passengers from 2018- 2020, and a fourth terminal with capacity of 20 million passengers from 2020-2022, raising the airport’s combined capacity to 55 million passengers. It should then construct a third runway and expand the fourth terminal from 2022-2025, increasing the airport’s capacity to 70 million passengers.

However, ADPi said that massive expansion would be too costly and unnecessary as the country already plans to build Long Thanh Airport in the neighboring province of Dong Nai.

To increase Tan Son Nhat’s annual capacity to 60-70 million passengers, Vietnam would need to build a new runway and a terminal with a capacity of 30-40 million people, which would cost VND35 trillion (US$1.54 billion), excluding site clearance costs, acording to ADPi.

Echoing ADPi at a meeting with the Ministry of Transport on February 27, experts said the construction of a new runway would be too costly, and that site clearance and relocation for thousands of households alone would cost some VND45 trillion (US$1.98 billion).

Long Thanh Airport is expected to go into operation in 2025 and help ease the pressure on Tan Son Nhat, ADPi said.

Long Thanh Airport, which will cover 5,000 hectares (12,400 acres), is expected to replace Tan Son Nhat as the country’s largest airport with an annual capacity of 100 million passengers and five million tons of cargo. The first part is scheduled for completion in 2025 and will be able to handle 25 million passengers a year.

But Tong said there are no guarantees that Long Thanh will go into operation in 2025 as planned.

Despite the airport being approved by the National Assembly two years ago, no feasibilty studies have been conducted, so we don't know where funding for the airport will come from, Tong said.

“No one can guarantee that Long Thanh Airport will go into operation by 2025,” he noted.

If Long Thanh Airport is not put into operation by 2025, Tan Son Nhat needs to have a third runway to ensure it can serve 70 million passengers per year. The economic loss would be enormous if it's unable to do so, he added.

The transport ministry will collect relevant opinions from consulting groups on the matter and report them to Deputy Prime Minister Trinh Dinh Dung for consideration before submitting to the government’s standing committee for final decision later this month.

Covering 800 hectares, Tan Son Nhat currently has two terminals that serve 32 million passengers annually, well above its design capacity of 25 million.

It also only has two runways that are sometimes closed due to flooding or lightning strikes. The airport has space for 57 aircraft at a time, but sometimes it has to handle more than 70.

Vietnam’s airline market is the third fastest growing in Asia-Pacific, and the country is grappling with a severe lack of airport capacity.

Vietnam’s aviation industry served 46.4 million passengers in 2017, up 14.1% over the previous year, according to the General Statistics Office.

Mobile users go ‘all-in’ on last day of 50% top-up bonus

Widespread network jams were reported across online banking services and electronic payment systems in Vietnam on February 28 as mobile users rushed to top-up their prepaid account balance on the last day that local carriers could offer bonuses of up to 50% the top-up value.

A circular issued in December by the Ministry of Information and Communications restricts the maximum top-up bonus to 20% across all prepaid accounts, effective from March 1 this year.

Previously, the promotion ceiling was 50% of the top-up value.

Advertisements and social media campaigns orchestrated by top Vietnamese network operators had been calling February’s promotions “the last chance” for mobile users to get 50% more for what they pay before the circular goes into effect.

“I’ve already bought six top-up cards with the face value of VND500,000 [US$22] each this morning. It’s my last chance to enjoy a 50% bonus, so it pays to spend a little more than usual,” said Hoang Tung, a resident in Ho Chi Minh City.

Others with a bank account capable of making online transactions opted to top up their balance via the carriers’ online payment gateways, causing widespread network jams.

The online edition of Tuoi Tre (Youth) newspaper reported on February 28 that network congestion was an issue for all the three biggest network operators in Vietnam – Viettel, MobiFone and Vinaphone.

Meanwhile, online banking systems of local banks and other third-party payment applications also suffered from the same problem on the ‘national top-up day,’ as dubbed by Vietnamese netizens.

A spokesperson from ZaloPay, a digital wallet service run by Vietnamese technology giant VNG, told Tuoi Tre there was an unusual surge in transactions made on February 28 as a result of ‘final’ promotion campaigns run by mobile carriers.

According to the spokesperson, on Wednesday morning alone there were ten times more top-up requests made through the payment system than usual, with the total top-up value being 20 times higher than a normal day.

“The large volume of transactions happening at the same time led to a temporary jam in the network. A short delay is expected as the system takes time to process all the payments,” the spokesperson said.