The Ministry of Industry and Trade (MoIT) has been active in implementing a range of measures aimed at boosting exports to China and the Republic of Korea (RoK), two markets where the ongoing battle against the COVID-19 epidemic has been brought under tighter control.

This comes after the Vietnam Trade Office in Singapore connected with business associations in both the island nation and back at home to capitalise on opportunities to bolster Vietnamese exports. Some of their activities include the trade office purchasing Singaporean fruit and vegetable importers to the country in February as a means of finding fresh supply sources.
Moreover the office has been trying to keep local firms updated during the process of getting public procurement orders from the Singaporean government.

March alone saw the Vietnam Trade Office in Singapore win over 20 orders for different products such as coffee, instant noodles, sweet potatoes, cabbages, squash, eggplant, pineapples, watermelon, and dragon fruit, with approximately 500 tonnes of goods imported from Vietnam.

Domestic enterprises operating abroad are taking measures in order to focus more on trade promotion, seeking orders, and supporting local exporters.

According to the MoIT, the first quarter of 2020 saw the country's merchandise exports reach US$59.08 billion, up 0.5% in comparison to the 5.2% figure recorded during the same period last year - the lowest level of growth since 2003.

This drop in Vietnamese exports matches the general trend internationally and regionally. The opening three months of 2020 saw China’s export turnover fall by 17%, the RoK’s by 1.5%, Thailand’s by 0.8%, Japan’s by 4.1%, Hong Kong (China) by 12%, and Taiwan (China) by 6.3%.

Despite being greatly affected by the COVID-19 epidemic, the nation’s exports in the first quarter were maintained, giving the country extra leverage to rebound in plenty of key export markets when the epidemic is over.

Primary focus should be on neighbouring markets

With China beginning to get to grips with the COVID-19 epidemic, there are no longer restrictions on import and export activities involving the northern neighbour, therefore providing a good opportunity for the country to boost exports to the highly lucrative Chinese market in the near future.

According to a report released by the MoIT, the situation regarding the customs clearance of exports to China through northern border gates is undergoing gradual improvements.

“Although the Chinese side still face a shortage of workers for loading and unloading goods and the trucks have to undergo strict quarantine procedures, the speed of goods clearance in recent days has improved much more than in early March,” said Tran Thanh Hai, Deputy Director of Import and Export Department under the MoIT.

In addition to the improvements in trading condition with China, other major markets such as the RoK and Japan have also shown clear signs of recovery in March with the epidemic gradually being controlled in each of the respective countries. During the first three months of the year, Vietnam’s exports to the Chinese and Japanese markets surged by 11.5%, and 3.5%, respectively, despite the bleak macroeconomic picture.

Indeed, the country has sets its sights on boosting exports to markets that have the potential to bounce back quickly after the epidemic, such as China and the RoK.

In terms of rice exports, the Vietnam Food Association stated the volume of rice exports in the first three months of the year reached over 1.4 million tonnes with a value of US$652 million, a 1.1% increase in volume and up 7.8% in value on-year.

Most notably, exports to China witnessed a dramatic upswing during the opening two months of the year, seeing rice exports to the Chinese market increase 595% in volume and 724% in value, reaching more than 66,000 tonnes with a value of US$37 million in the process.

Rice exports to China are carried out almost entirely in the form of an official quota due to export activities in the form of border exchanges stopping after the Lunar New Year.

Over the past two years, China has moved to restrict imports through unofficial channels, such as small quota, and moved them to official channels, official quota. Therefore, Vietnamese businesses are gradually adapting themself to the new situation and are taking steps to transform themselves so they can trade in line with international practices.

Ministry urges tighter border controls to stem COVID-19

Minister of Industry and Trade Tran Tuan Anh has asked People’s Committees of centrally-run cities and provinces to take stronger border control measures in an effort to stem the spread of COVID-19.

The Vietnamese Embassy in China on April 3 sent a notice to ministries, agencies and People’s Committees in northern provinces informing them about China’s decision to tighten and restrict entry at the border between the two countries.

China’s Guangxi province has also recently announced that it will intensify the management of passengers and vehicles passing through border gates between Vietnam’s Lang Son province and the locality to contain the pandemic.

Statistics reveal that as of April 8, about 1,698 trucks and a train, mainly carrying farm produce, were stuck at the northern border.

The Ministry of Industry and Trade (MoIT) is coordinating with relevant ministries and agencies and People’s Committees in border provinces to work with the Chinese side in order to ensure the flow of goods while observing COVID-19 countermeasures.

The ministry urged competent local agencies to keep abreast of the situation and step up information dissemination for farming households and production and business facilities.

Goods must be exported to China via official channels, it said, asking provinces to strictly follow regulations on product origin and other standards agreed by the two sides.

The ministry also ordered further observance to instructions on COVID-19 prevention and control at border gates, saying the work should not be played down just to disperse the stranded passengers and vehicles./.

Quang Nam prioritises green FDI projects

The central province of Quang Nam expects to welcome more FDI projects promoting green growth, according to Chairman of the provincial People’s Committee Le Tri Thanh.

He expressed his appreciation of all FDI projects in the province that have significantly contributed to local socio-economic development.

He cited the fact that FDI firms have contributed about 89.34 million USD to the provincial budget, exported 751.24 million USD worth of goods, and employed over 55,000 local workers.

The province plans to pursue green growth in the long term, he went on, so it is giving priority to investment in three industries - manufacturing and processing, electronics and telecommunications, and renewable energy - and will ensure the most suitable conditions possible are provided to investors.

The province also hopes to attract large-scale projects producing highly-competitive goods and forming part of global supply chains. It also welcomes projects in support industries and those using high technology.

Quang Nam raked in close to 19 million USD in FDI in the first quarter of this year, up 15.8 percent year-on-year, mostly in manufacturing and processing and services, despite the impact of the COVID-19 pandemic.

Most new manufacturing and processing projects are located at the Chu Lai Open Economic Zone, the Dien Nam - Dien Ngoc Industrial Park, and industrial clusters in Thang Binh and Duy Xuyen districts, while those in the services industry are primarily in Hoi An ancient town.

The province has also approved 16 domestic projects with combined registered capital of nearly 1.79 trillion VND (76.8 million USD)./.

Can Tho to simplify procedures for start-ups

Can Tho City is focusing on helping businesses prosper by simplifying procedures and facilitating start-ups.

The city People’s Committee has requested departments and districts to work on a directive issued by the Prime Minister on facilitating creative start-ups and reducing unimportant procedures and regulations, with the aim of helping businesses approach markets more easily.

Authorities will also issue documents to help small business households upgrade to official enterprises/companies without applying for another permit, and will facilitate non-cash payment methods such as through mobile devices and cards.

The Department of Natural Resources and Environment plans to create solutions to shorten the time needed for procedures involved in certifying land property ownership, property ownership transfer, and land-use rights registration.

Meanwhile, the Department of Science and Technology will help the city issue instructions on developing an innovative start-up ecosystem and connecting innovation networks both in and out of the country.

Over the past few years, Can Tho has been making progress on business development. There are more than 8,300 businesses in the city, accounting for 26 per cent of businesses in the Mekong Delta.

Fashion brands offer 'protective' clothing

Hit hard by the COVID-19 pandemic, domestic fashion brands and fashion shops are turning to sell protective suits and other anti-pandemic products, though it's unclear what protection they offer if any.

Local fashion brand Ivy Moda is offering protective suits for adults and children in white and blue colour. The one-time-use products are sold at VND80,000 (children) andVND100,000 (adult) each. The fashion company also produces face masks.

So far it has sold nearly 5,000 products.

Similarly, Format fashion company, which produces women clothes and accessories, also announced it will start selling face masks and purportedly protective headwear.

Each set of three masks printed with the national flag with the words 'Tu hao Viet Nam' (proud of Viet Nam) costs VND63,000 while the protective headwear costs VND45,000.

As one of the biggest garment firms in Viet Nam, Garment 10 Corporation Joint Stock Company announced it was offering white and light pink protective suits. Earlier, the firm also started manufacturing face masks.

This week the firm's director Than Duc Viet said they had invested in producing medical face masks as well as cloth masks with 10 production lines, adding it also received an export order for 400 million medical face masks worth US$52 million.

Amid increasing demand to feel protected amid the pandemic, unbranded protective suits have been sold online for about VND100,000 each.

Nguyen Thu Thao, the owner of a fashion shop in Kham Thien Street in Ha Noi, said she could only sell anti-virus products such as suits, masks, glasses and drop-proof hats instead of normal clothes. When her shop closed recently, she kept selling them online.

Thao said on her Facebook: “The clothes sale has been dropping badly since the beginning of the pandemic. Thankfully, the sale of anti-pandemic gear is growing or I would be badly hurt.”

Only Ivy Moda's products are made with materials certified by State-owned quality assessment agency of VInaControl.

It is unclear whether any of the products are considered protective in any way by medical professionals.

Digiworld enjoys bumper first quarter

Electronic and computing retailer Digiworld Corporation has estimated that its first-quarter revenue and post-tax profit increased 63 per cent and 80 per cent year-on-year.

The figures rose to VND2.24 trillion (US$96 million) and VND45 billion in the first three months, respectively.

Sales of laptops and tablets soared 69 per cent year-on-year to VND791 billion in the January-March period. Sales of mobile phones almost doubled to VND1.14 trillion in the same period, largely thanks to a promotional offer on Chinese-made Xiaomi products.

The company forecasts its whole-year revenue will be up a fifth to VND10.2 trillion from last year’s figure and post-tax profit will add nearly 24 per cent year-on-year to VND202 billion.

After the first three months, Digiworld has fulfilled 22 per cent of both its revenue and post-tax profit goals for 2020.

In 2019, total revenue was nearly VND8.5 trillion and post-tax profit was VND163.2 billion.

Digiworld had charter capital of VND419.5 billion and equity capital of VND924.8 billion on December 31, 2019. Total liabilities were worth VND1.48 trillion, including short-term liabilities of VND1.47 trillion.

Total assets were worth VND2.4 trillion with short-term assets accounting for 95 per cent of the total. Of all short-term assets, inventories were worth VND1.45 trillion.

Digiworld shares (HoSE: DGW) dropped 2.2 per cent to trade at VND21,900 apiece on Friday morning session.

Auto imports see record drop in Q1

Viet Nam imported 8,000 cars worth US$163 million in March, according to the General Department of Customs.

The figures were down 22 per cent in volume and 26.6 per cent in value respectively compared to the previous month.

It was estimated that auto imports in the first quarter of this year reached 23,000 worth $497 million. This also marked a record drop of 43.1 per cent in volume and 43.3 per cent in value from the same period last year.

The drop comes amid the complicated developments of the COVID-19 pandemic, which has hit domestic demand. This has also forced showrooms to cut their prices in a bid to reduce inventories.

Models such as the Toyota Fortuner, Honda CR-V, Ford Everest and Explorer and the Chevrolet Traiblazer have all been discounted by up to nearly VND300 million ($12,793) per vehicle.

In addition, a number of automobile assembly and manufacturing factories in Viet Nam, including Ford, Hyundai and Honda, have suspended production under direction from overseas corporations.

Photovoltaic application in aquaculture to be piloted in Mekong Delta

The German Agency for International Cooperation (GIZ) has signed a collaboration agreement with partners in Vietnam’s public and private sectors concerning the implementation of a project on combining aquaculture and solar photovoltaics in the Mekong Delta region.

The “SHRIMPS” project (Solar-Aquaculture Habitats as Resource-Efficient and Integrated Multilayer Production Systems) is part of the research cooperation between the Government of Vietnam and the Government of Germany.

It is funded by the German Federal Ministry of Education and Research (BMBF) under the Research for Sustainable Development Framework Programme, through supporting research and development activities of Fraunhofer Institute for Solar Energy Systems (ISE), the Thünen Institute of Fisheries Ecology, SMA Sunbelt Energy GmbH and Suntrace GmbH. Vietnamese partners include the Ho Chi Minh City University of Agriculture and Forestry, the National Energy Institute of Vietnam, a major shrimp production company in Vietnam, and the Department of Agriculture and Rural Development of Bac Lieu province.

Under the project, which is set to run for three years, photovoltaic modules will be installed on the roofs of shrimp greenhouses at a pilot plant in the Mekong Delta province of Bac Lieu.

The project aims to optimise the use of aquaculture land, helping to reduce freshwater consumption, wastewater generation and CO2 emissions while maintaining stable water temperature for shrimps to grow, as well as improve the working conditions for employees at the plant.

Tobias Cossen, Project Director at GIZ, affirmed that the project would provide a practical solution to optimise the simultaneous use of land for food and energy production in Vietnam, as well as enabling local aquaculture areas to better adapt to the impacts of climate change.

GIZ will oversee the installation of the pilot plant and then transfer the technology to small and medium-sized fishery enterprises in other provinces, and eventually replicate the model in other countries across Southeast Asia, he said.

Prior to signing the agreement, Fraunhofer ISE completed a pre-feasibility study on the potential for combining shrimp farming with photovoltaics in the Mekong Delta in 2018 on behalf of GIZ. Fraunhofer ISE also tested the technical and commercial feasibility of dual land use for solar power generation and commercial aquaculture on a specific shrimp farm run by a major Vietnamese company in the field.

Da Nang posts sharp increase in domestic investment

Da Nang has attracted four investment projects by domestic investors since early this year, with total registered capital of over VND8.6 trillion (US$369 million), 4.72 times higher than the same period last year.

Due to the impact of the COVID-19 pandemic, foreign direct investment (FDI) in the city has slowed down but domestic investment is on the rise.

So far, the city has attracted 335 projects by domestic investors with accumulated capital of over VND112.6 trillion (US$4.83 billion).

Meanwhile, the city attracted nearly US$83.5 million worth of FDI capital in the first quarter of this year, lower than expected. The pandemic has interrupted a series of large projects with registered capital totalling hundreds of millions of US dollars.

A bright note is that the disbursement of FDI capital in the first quarter of this year reached VND1.79 trillion (US$76.78 million), a year-on-year increase of 92.1%.

Several large FDI projects licensed in 2019 have made large disbursements in the first quarter of this year, including the Sunshine aerospace components plant at the Da Nang Hi-Tech Park and the Mikazuki Spa & Hotel Resort project.

Da Nang granted business certificates to 1,100 newly established enterprises in the first three months of 2020, with total registered capital of VND6.01 trillion (US$257.8 million), down 22% in terms of number of enterprises and 10% in terms of registered capital.

Province striving to hand over land for Phan Thiết – Dầu Giây Expressway

Authorities in the southern province of Đồng Nai are trying to hand over the lands required for the construction of the Phan Thiết – Dầu Giây Expressway before the end of May.

The sub-department of Land Management said it is working with local authorities and relevant agencies to quickly complete paperwork and procedures to hand over lands to the builder to start construction.

Nguyễn Hồng Quế, head of the sub-department, said a 51.5km portion of the 99km expressway would pass through Đồng Nai Province’s Xuân Lộc, Cẩm Mỹ and Thống Nhất districts and Long Khánh City.

More than 395 hectares of land have to be acquired from nearly 900 households.

Site clearance has been completed in Cẩm Mỹ and Thống Nhất districts and Long Khánh City, but is proceeding slowly in Xuân Lộc District.

The department will co-ordinate with Xuân Lộc District authorities to speed up clearance and compensation payment.

Local authorities have been instructed to complete relocation of infrastructure systems such as power grids, telecom networks and water supply by the end of April.

The Phan Thiết – Dầu Giây Expressway is an eastern section of the North-South Expressway, which begins at National Highway 1A in Bình Thuận Province and ends at the HCM City – Long Thành – Dầu Giây Expressway in Đồng Nai Province.

Its first phase will cost more than VNĐ14.4 trillion (US$615 million), including VNĐ2.5 trillion ($105 million) from the Government’s coffers and the rest from private investors. It will be built as a public-private partnership under a build-operate-transfer contract.

Construction is scheduled to begin in the third quarter of this year and take 36 months.

Government examines ways to revive production

Prime Minister Nguyen Xuan Phuc chaired an online national conference with localities on April 10 to discuss measures to cope with the (COVID-19) epidemic, with a major focus on removing difficulties in production and business, accelerating disbursement of over US$30 billion of public investment, ensuring social security, and maintaining law and order.

In his speech, PM Phuc called for greater combined efforts to cope with the ongoing epidemic by taking more drastic measures, adding that Vietnam’s determination has been recognized by the international community and many international organizations such as the World Bank, the Asian Development Bank, and Fitch Ratings they have all been optimistic about Vietnam's economic economy in the time to come.

Fitch expects Vietnam’s growth momentum to rebound in 2021, with growth projected at 7.3% as external and domestic demand gradually recovers in line with global and regional trends.

However, some international organisations have a pessimistic view on this year's global economy outlook, with the International Monetary Fund predicting growth will stand at 0% whilst some countries still endure negative growth. The United Nations anticipates that the latest global recession will be larger than that of 2008.

In the current economic climate, the majority of domestic businesses are facing severe challenges and disrupted production value chains. For example, so far during April the textile industry has suffered a 30% fall in orders, while 80% of educational institutions have seen sales halved.

Minister of Industry and Trade Tran Tuan Anh believes that the COVID-19 epidemic will have a direct impact on approximately four million workers in the textile and footwear industry. According to the footwear business associations, the current market situation will see businesses halt operations by mid-April, adversely affecting roughly 800,000 employees.

If there are no positive signs by the end of April, approximately 1.2 million people employed in the leather and footwear sector, in addition to roughly 2.8 million workers operating in the apparel industry, will suffer the consequences of the economic downturn caused by the epidemic.

Further difficulties have been encountered in other areas due to drought, saline intrusion, and the spread of African swine fever. The first quarter of the year saw the country record economic growth of a mere 3.82%, the lowest level in ten years.

Minister and Chairman of the Government Office Mai Tien Dung said that enterprises have proposed extending tax payments to 12 months rather than five months as previously planned, whilst also expanding extended taxes, including corporate income tax, personal income tax, and value added tax.

In many previous meetings, PM Phuc has emphasized that there must be strong measures taken to disburse more than US$30 billion of public investment. Therefore, it is imperative to clarify the responsibilities of various Ministers, Chairmen of the local People's Committees, and investors, especially for key projects such as the North-South expressway and construction work on Long Thanh airport.

During the conference a number of ministers offered specific measures on how to best overcome epidemic-related difficulties facing the respective industries under their management, whilst also listening to consultations and suggestions which could serve as a basis for the government to work out considered solutions in a timely manner.

Oversupply and COVID-19 pandemic combine to slow tea exports

Vietnam’s tea exports to major foreign markets such as Taiwan, China, and Russia have significantly dropped as a result of oversupply and the ongoing impact of the novel coronavirus (COVID-19) pandemic, according to the Agro Processing and Market Development Authority.

During the opening two months of the year, Pakistan, Russia, Taiwan, Indonesia, and the United States made up the five main export markets of Vietnamese tea products, accounting for 74.5% of the country’s overall tea export turnover in the process.

The average export price of tea during the reviewed period fell to US$1,481 per tonne, representing a 13.5% drop in comparison with last year’s corresponding period.

Most notably, tea exports to China plummeted as a result of fresh restrictions placed on goods passing through customs due to the impact of the COVID-19 pandemic and the long Lunar New Year holiday.

Indeed, the first two months of the year saw the country only ship 364 tonnes of tea to the Chinese market, bagging US$427,000, an annual decline of 54.1% in volume and 87.4% in value, resulting in China’s market share of the country’s total tea export turnover being only 1.7%.

According to the Vietnam Tea Association, the negative effects of the COVID-19 pandemic had rapidly spread to several of the country’s important markets by late March, leading to production and business disruptions.

A number of its major markets such as Taiwan, China, and Russia have been left almost frozen, while local businesses have seen many contracts either delayed, cancelled, or simply not available.

In the domestic market, the price of tea endured a downward trend in March, hovering between VND100,000 and VND220,000 per kilo depending on its quality.

The price of tea globally is projected to fall in the near future as a consequence of the COVID-19 epidemic which has also affected the export of Vietnamese tea, the East Africa Tea Trade Association says.

Electronics industry enjoys bright prospects despite COVID-19 challenges

The first quarter of the year has seen parts of the electronics industry, such as the manufacturing of electronic products, computers, and optical fiber products, enjoy a 14.3% growth despite the negative effects of the novel coronavirus (COVID-19) epidemic, according to the Ministry of Industry and Trade (MoIT).

electronics industry enjoys bright prospects despite covid-19 challenges hinh 0
Throughout the reviewed period, the industry faced a number of issues, including a shortage of input supply sources necessary for developing components in production due to the impact of the COIVD-19 epidemic.
Despite these challenges, the manufacturing industry and their electronic components have posted robust growth, the majority of which can be attributed to the launch of a new generation of smartphones by Samsung Vietnam.

In addition, a number of foreign-invested enterprises such as LG Electronics continue to shift their production lines to the country, while exports to traditional markets have also been boosted after China limited its exports amid the COVID-19 outbreak.

Despite recording a high growth, MoIT experts believe the COVID-19 epidemic will ultimately go on to negatively affect the industry in the year’s subsequent quarters as a result of a reduction in consumption demand from both the United States and the EU, which account for 17% and 24% of the export turnover of telephones and components, respectively.

Both the US and the EU also represent two key export markets for Samsung Electronics Vietnam, making up to 50% of the company’s total export value.

Indeed, Samsung's overall global sales and outputs are projected to suffer declines due to the impact of the ongoing epidemic on the electronics industry.

Samsung Vietnam is also expected to lower its export target to approximately US$45.5 billion in 2020, in contrast to the figure of US$51.38 billion obtained last year, according to the MoIT.

To minimise the impact of the COVID-19 epidemic, Truong Thanh Hoai, the MoIT Director of the Industry Department, underlines the importance of devising drastic measures in an attempt to protect the electronics market whilst also supporting promising domestic electronics firms to enjoy further growth.

Commercial banks cut profit target amid COVID-19 pandemic

Many banks in Vietnam have reduced their profit target for 2020, and plan to support companies severely impacted by the COVID-19 pandemic.

Besides, the State Bank of Vietnam (SBV) issued instructions on March 31 to banks to cut costs and bonus payments and not pay dividends in cash.

Nam A Bank has reviewed its 2019 performance and 2020 plans, and said it now targets pre-tax profit of only VND800 billion (US$34 million) in 2020, 13.5% down from last year.

But it plans to keep some other targets unchanged. The bank said it would seek to achieve the credit target it set based on the State Bank of Vietnam’s credit growth quota.

It is set to lower lending interest rates by 2 percentage points, with businesses in agriculture, hospitality and import-export benefiting the most from this.

It has also unveiled a VND1 trillion (US$42.5 million) loan package for individual customers at an interest rate of 9.9%.

Hoang Viet Cuong, deputy general director of the lender, said it is meant to enable borrowers to revive production and get their lives back to normalcy.

Bad debts this year would not exceed 3%, the bank said.

Sai Gon – Hanoi Commercial Joint Stock Bank (SHB) also plans to cut its 2020 profit target, adding that it would be by at least VND1 trillion.

It also plans to reduce operation costs. Its executives have volunteered a 50% wage cut until the pandemic ends, while department heads are amenable to 10-30% cuts.

The bank has earmarked VND25 trillion for loans with many preferential offers including a 2 percentage point interest rate cut. It also plans to restructure customers’ loans.

It is expected that more banks will announce changes to strategies and interest rate cuts to support clients in the coming days.

A report from the National Statistics Office said the credit growth this year has been only 0.68%, 1.22 percentage points down year-on-year.

Deposit growth has fallen to 0.51% from 1.72%, it added.

Real estate supply, demand in HCM City decrease amid COVID-19 outbreak

Real estate business and housing construction in Ho Chi Minh City have been hit hard by the COVID-19 pandemic, with significant decreases recorded in supply and demand, according to market watchers.

By the end of the first quarter, rent for the ground floor and first floor property in the downtown area of the city had fallen by 11% compared with the fourth quarter of 2019, while rent in the suburbs was down 15.9%.

For the office market, the average rent of Grade-A offices in Q1 was US$44.6 per sq.m per month, down 1.2% against the previous quarter and 3.6% year-on-year.

Senior Director and Head of Valuation and Market Research Services at CBRE Vietnam Duong Thuy Dung said that after the COVID-19 pandemic, the office market could reshape, with tenants starting to pay more attention to the health of employees by choosing high-quality buildings instead of just saving money as before.

So buildings which are environmentally friendly will be preferred, she added.

Regarding the apartment market, she said that the city’s market is continuing to witness a decline in supply. A number of projects in Nha Be district and Districts 2, 9 and 10 have postponed their launches in the first quarter because of regulations on large gathering. From January-March, 3,757 apartments were sold, down 32% against the previous quarter, with the mid-end segment accounting for 58% of the total supply.

The 15-day social distancing period, starting April 1, will force the projects to continue postponing their dates of release. In addition, the suspension of flights and the tighter granting of visas will keep foreign customers from accessing the real estate market in Vietnam.

Those who want to buy houses or apartments will face difficulties accessing bank loans due to fluctuating interest rates and the higher standards banks are setting to approve loans.

Amid the complicated developments of the pandemic, Dung gave two scenarios for the apartment segment in Ho Chi Minh City. If the pandemic is put under control before June, the supply of new apartments will reach approximately 28,000 units, an increase of 5% compared to 2019, and the average price will rise by 5%. In case the date is September, there will be only about 15,000 new apartments, equal to 40% compared to that of 2019, and the average price will decrease by 5%.

Recently, in the process of developing a draft on the extension of the deadline for paying taxes and land rents, the Ministry of Finance added real estate businesses as subject to the extension. This move is expected to help these businesses overcome difficulties to survive, recover and develop to meet local demand for housing.

Mong Cai Int’l Border Gate resumes customs clearance procedures

Customs officers working at the Mong Cai International Border Gate have resumed conducting customs clearance for 364 enterprises, with over 9,600 import and export customs declarations checked by the end of April 8, according to the border gate’s management.

Total value of goods checked at the border gate stood at an estimated US$765 million, representing a year-on-year drop of 30%. Despite the decline, import and export taxes brought back VND276 billion, increasing 36% from a year ago.

In addition to goods, the officers have also completed customs clearance procedures for approximately 8,900 vehicles transporting items through the border gate.

Some of the main export commodities to pass through the border gate include fresh farm produce, processed agricultural products, seafood, along with other items such as cotton thread and medical face masks.

With the Mong Cai International Border Gate resuming its operation, it has facilitated the export of Vietnamese agricultural products to China, whilst simultaneously helping domestic firms import input materials for production during the novel coronavirus (COVID-19) epidemic.

CPTPP presents challenges and opportunities for local firms

Over one year after coming into effect, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has posed both challenges and served to create a wealth of opportunities for domestic businesses, according to insiders.

The government's official report submitted to the National Assembly for ratification of the CPTPP to assess the impact of the trade pact outlines that exports to CPTPP markets are expected to increase by 4.04% by 2035, representing an annual rise of approximately US$700 million.

Since coming into force, Vietnam has made good use of the trade deal with the country’s export turnover to six CPTPP members surging by 8.3% to US$34.4 billion.

Most notably, exports to new markets that Vietnam had previously never signed free trade agreements with such as Canada and Mexico have enjoyed significant rises of 28.2% and 26.8%, respectively.

Luong Hoang Thai, Director of Multilateral Trade Policy Department under the Ministry of Industry and Trade, said the robust export growth enjoyed last year could be partly attributed to the implementation of the CPTPP.

The apparel and textile industry can be regarded as the biggest beneficiary of the trade pact which has also yielded remarkable results since coming into force.

According to Phan Thi Thanh Xuan, vice chairwoman and general secretary of the Vietnam Leather and Footwear Association, local businesses have successfully taken full advantage of the CPTPP, with garment and textile exports to CPTPP members increasing by 11%.

In spite of some bottlenecks emerging due to the rule of origin, garment and textile enterprises have been able to sign lucrative orders with CPTPP signatories.

Despite achieving initial success, experts believe that the country has yet to take full advantage of the opportunities brought about by the CPTPP, noting that the agree would operate in the same manner as the proposed Trans-Pacific Partnership Agreement which involved the participation of the United States.

Nguyen Thi Thu Trang, Director of WTO Integration Center under the Vietnam Chamber of Commerce and Industry, said that the CPTPP has served to create pressure for institutional reforms domestically, particularly those related to issues such as the environment and labour

She underscored the importance of the CPTPP in accelerating an improvement of the local business climate, adding that relevant ministries and agencies should come together to effectively co-ordinate and promptly promulgate legal documents regarding the implementation the CPTPP.

Thailand’s aviation industry turns COVID-19 crisis into opportunity

The COVID-19 crisis has shaken the thriving aviation industry in Thailand and forced it into hibernation. But local authority is using this rare hiatus to develop airport facilities in preparation for the post-pandemic world.

Don Mueang, Thailand’s second busiest airport after Suvarnabhumi, is turning the crisis into an opportunity by improving the interior of its international terminal while there are no passengers, said airport director Sampan Khuntranont.

The pandemic has forced the suspension of domestic and international flights, grinding air traffic into and out of Don Mueang airport to a complete halt.

So the airport has decided to push ahead with plans to revamp the interior of the international terminal, costing 126 million THB (3.85 million USD), he said.

The work involves three sub-projects – the 99-million-THB improvement of the air-conditioning system; a re-carpeting job priced at 18 million THB; and a nine-million-THB switch to LED lights to save energy.

The project is expected to begin in July and be completed by the end of the year.

The airport has reached its maximum capacity of 40 million passengers last year. A plan is also afoot to expand Don Mueang largely served by budget carriers.

Last month, it was reported the Airports of Thailand Plc (AoT) board approved a master plan for the third-phase development of Don Mueang airport costing an estimated 39 billion THB.

Earlier this week, the Thai Transport Ministry said it would ask the cabinet for a 250-million-THB budget to improve and upgrade facilities at Hua Hin airport in Prachuab Khiri Khan province to attract international airlines once the COVID-19 is contained.

Last year, the Thai cabinet okayed a project to build a third runway at Suvarnabhumi international airport in Bangkok with total investment of nearly 21.8 billion THB (667 million USD).

The project, part of the kingdom’s transport development plan in the 2015-2022 period, is scheduled to complete in 2021.

TC Motor’s March sales up 17 percent

TC Motor has announced that its sales increased 17 percent in March despite the COVID-19 pandemic, lifting its first-quarter sales to 15,362 units.

Hyundai Accent remained its best-selling model, with 1,543 sold in March, representing a month-on-month increase of 32.5 percent and taking the model’s total sales in the first quarter to 4,440.

Hyundai Grand i10 followed, with 3,860 units sold in the quarter.

Hyundai Tucson and Hyundai Elantra posted sales increases in March of 46.5 percent and 26 percent.

TC Motor is a subsidiary of the Thanh Cong TST Group specialising in distributing Hyundai motor vehicles in Vietnam and is also a partner of brands such as Hyundai Mobis, Doosan Infracore, Doosan Industrial Vehicles, Shell Lubricants, Nexen Tires, and Nexen Solid Tires.