The logistics industry in Vietnam, especially HCM City, continues to face challenges like red tape and traffic congestion near border gates despite progress made in facilitating trade, Dinh Ngoc Thang, head of the city Department of Customs, told a recent conference.

The Government had been issuing many policies to facilitate trade by improving the business climate and businesses' competitiveness, he said, but admitted that the logistics sector faced "too many inspection procedures" and "the inspections themselves take too long, sometimes up to a week."

Besides, standard regulations had not been issued yet for some products, he said.

"International trade takes place mostly through one fourth of Vietnam’s entry points, and congestion is worsening as trade increases," he said.

Vietnamese logistics businesses lack service quality compared to their international competitors, according to Thang.

Businesses are not adequately aware of free trade agreements, new government regulations or trade laws of other countries.

Le Duy Hiep, Chairman of the Vietnam Logistics Business Association, said the cost of logistics in Vietnam was higher than in neighbouring countries.

The customs department was carrying out a programme to relieve congestion at Cat Lai Port in HCM City, Vietnam’s biggest international port, and develop logistics, he said.

It aimed to ease procedures, reduce the time they require, and also reduce costs like storage and transportation, he said.

Around 200 import-export businesses were taking part in the programme, and more would join in future, he said.

They received numerous benefits such as getting their own area without needing to join queues, submitting fewer paper documents, having 24/7 access to professional staff, and having their own storage areas in the port and prioritised lanes for container trucks.

They could also keep track of custom progress of their goods and documents, and rate individual employees for customer service.

Thang said goods inspection needed to be revamped, the list of goods that have to be inspected should be re-examined and administrative procedures needed to be further simplified.

A comprehensive plan for IT infrastructure development to reduce customs clearance time should be looked at, and more scanners should be provided to customs officials at border gates, he said.

More favourable taxes and land lease policies could be created to help foster the logistics industry, he added.

The conference was organised by the department and the USAID Trade Facilitation Programme./.

Czech Deputy PM values Vietnamese firms’ law-abiding awareness

Deputy Prime Minister and Finance Minister of the Czech Republic Alena Schillerova spoke highly of Vietnamese businesses’ adherence to her country’s laws while attending a workshop in Prague on February 29.

The workshop focused on the Electronic Records of Sales (EET), aiming to provide information and counseling about issues relevant to local laws and business environment to Vietnamese firms in the Czech Republic.

The EET attracts great attention from the Vietnamese community there as the third and fourth phases of this law will be implemented on May 1 and cover more professions like lawyer, accountant, doctor, craftsman and taxi driver.

The first and second phases of the EET has been carried out since it came into force on December 1, 2016, applicable to those doing business in the fields of restaurant, hotel, wholesale and retail.

Deputy PM Schillerova stressed that the EET helps create a fair business environment and increase budget for the Czech Government.

She also appreciated Vietnamese businesses’ cooperation with her country’s Finance Ministry in the EET enforcement since the law took effect, expressing her belief that they will be able to understand and apply the EET in its third and fourth phases soon.

Meanwhile, Chairman of the Vietnamese Business Association in the Czech Republic Pham Thanh Long thanked the Czech Government, especially Deputy PM Schillerova, for giving practical support to Vietnamese firms in the country to better adapt to the local business climate.

At the workshop, the Deputy PM and experts from the Czech Finance Ministry fielded questions about the EET from Vietnamese people.

On this occasion, Schillerova also visited business facilities of Vietnamese people at the SAPA trading centre, where the event was held.

Talking to Vietnam News Agency, the Deputy PM noted the association of young Vietnamese entrepreneurs coordinated with the Czech Finance Ministry to provide translations of the EET and videos guiding the law application for Vietnamese firms.

She highly valued the awareness and sense of responsibility of the Vietnamese community in her country, 90 percent of whom are doing business, in learning about and complying with the EET./.

Vietnam seeks stronger economic cooperation with UK, India

A Vietnamese delegation led by Minister of Planning and Investment Nguyen Chi Dung had working trips to the UK and India from February 23 to March 1 to boost cooperation in economy, trade and investment.

The officials learned experience in developing national development policies and strategies in service of the building of the 10-year socio-economic development strategy (2021-2030) and the five-year socio-economic development plan (2021-2025) for submission to the upcoming 13th National Party Congress.

They also studied the implementation of innovation activities and the establishment of the startup ecosystem.

During their stay in the UK, the Vietnamese delegation met with some major groups such as KPMG, HSBC, and ARUP.

The British enterprises said that such factors as the openess of the market, the high-quality human resources, and the transparency in business environment will contribute to promoting socio-economic development as well as attracting foreign investors.

Development policies should focus on long-term investment, green and sustainable development, they added.

Minister Nguyen Chi Dung chaired a seminar on innovation and creativity with UK businesses who expressed their willingness to partner with Vietnam in the field.

The UK side agreed to send a business delegation through Harvey Nash and Nash Tech to Vietnam to work with the country’s National Innovation Centre to step up bilateral collaboration in the coming time.

The Vietnamese delegation also worked with the UK Department for International Trade and met with potential investors.

The British side described Vietnam as a new emerging market that has received a lot of attention from UK businesses in the Southeast Asian region.
It said the UK wants to cooperate with Vietnam in education, climate change, capital market, renewable energy, and infrastructure building.

The Vietnamese delegation later coordinated with the Vietnamese Embassy in the UK to host a meeting with Vietnamese intellectuals in the UK.

In India, Minister Nguyen Chi Dung and his entourage had working sessions with leaders of the host's Ministry of Commerce and Industry, National Institue for Transforming India (NITI Aayog), and Delhi Mumbai Industrial Corridor.

They also visited India’s tech giants such as NASSCOM and Wipro.

Within the working trip to India, Minister Dung presided over two workshops on business investment opportunities in Vietnam, which were co-organised by the Vietnamese Embassy in India and the Confederation of Indian Industry (CII)/.

Competition for global Vietnamese startups launched

The 6th edition of VietChallenge, a competition for Vietnamese startups around the world, was launched in Hanoi on February 29.

The competition is organised by the Hanoi committee of the Ho Chi Minh Communist Youth Union (HCYU), the Hanoi chapter of the Vietnam Youth Federation, the Association of Vietnamese Students and Professionals in the US, and the Office of Project 844 on supporting the national startup and innovation ecosystem until 2025.

Secretary of the Hanoi HCYU committee Nguyen Ngoc Viet said since the first edition in 2015, VietChallenge has attracted 800 startup projects from 21 countries. Its total prizes have amounted to 180,000 USD.

At the launching ceremony, the committee also introduced Jóng Ventures, a crowdfunding platform, to startups and small- and medium-sized enterprises.

Several documents were also signed at the event, including an MoU on supporting startups of young Hanoians among the municipal HCYU committee, the Office of Project 844, and the National Startup Support Centre, along with an investment contract for a crowdfunding platform between Jóng Ventures and HLH Holding Co. Ltd.

Organisers hope that this programme will prove useful for assisting young people to develop startups and connect with investors, thus contributing to the startup and innovation ecosystem in Vietnam./.

Gia Lai seeks investment into 166 projects

The People's Committee of Gia Lai province has published a list of 166 projects that are calling for domestic and foreign investment this year.

Of the total, 91 projects are in the industrial and energy sectors; 28 are in infrastructure development; 16 in sports, culture and tourism; 15 in agro-forestry-fisheries; nine in seafood and agricultural processing; and seven in the production of construction materials and consumer goods.

Large projects which need investment include the 210ha Gia Lai Border Gate Economic Zone and 31ha industrial cluster in Dak Khoa District, valued at 500 billion VND (21.5 million USD) each; an urban area in An Tan district, capitalised at 900 billion VND (39 million USd); a 26 million USD fruit processing plant in Pleiku city with an annual capacity of 100,000 tonnes; and a 3ha animal feed production factory, worth 13 million USD.

Others include a 210ha hi-tech forestry project, valued at 21.5 million USD, in Mang Yang district, and two other hi-tech farming projects worth a combined 126 million USD in Pleiku city and Chu Prong district.

Covering 15,500 sq.km, Gia Lai is the country’s second largest province and has a population of more than 1.4 million, including 14 ethnic groups.

The province’s favourable location and the development of the Cambodia-Laos-Vietnam triangle, including the Le Thanh international border gate adjoining Cambodia’s Ratanakiri province, makes it convenient for trade.

In recent years, the province had reformed administrative procedures and public services to create the best conditions for investors, local authorities said.

Besides Government mechanisms and policies, the province had created its own policies and mechanisms to create favourable conditions for investors and businesses to make long-term investments, they said.

Last year, the provincial People's Committee granted licences to 53 investment projects with total registered capital of 8.2 trillion VND. Ten of them, worth 560 billion VND, have gone into operation./.

Vinacomin strives to earn 2 trillion VND in pre-tax profit in 2020

The Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) is striving to earn 2 trillion VND (86 million USD) in pre-tax profit this year.

It aims to produce 24.9 million tonnes of coal and sell 60.7 million tonnes to gross a total revenue of over 114.3 trillion VND (4.9 billion USD).

To realise the targets, Vinacomin will push ahead with equitisation and divestment this year, while continously improving productivity and income for workers.

It will review the porfolio of investment projects in 2020 and only select ones that are essential for business and production activities.

Vinacomin was listed among the top 500 largest enterprises in Vietnam (VNR500) in 2019.

Its coal production was 40.5 million tonnes in 2019, while coal sales reached 44 million tonnes. The corporation raked in 4 trillion VND in profit, around 1 trillion VND higher than the target./.

Vinatex completes plan of producing 6 million face marks

As of March 1, the Vietnam National Textile and Garment Group (Vinatex) and its subsidiaries produced three more million antibacteria face masks, completing its plan of selling about 6 million face masks to the market amid the outbreak of the acute respiratory disease caused by SARS-CoV-2 (COVID-19).

Deputy Director of Vinatex Cao Huu Hieu said the group has sold nearly 2.5 million antibacterial face masks and produced antibacteria fabric to supply to its member companies.

The group, along with its three subsidiaries namely Dong Xuan Knitting Sole Member Limited Liability Company, Dong Phuong Knitting Sole Member Limited Liability Company, and Hanoximex Knitting Joint Stock Company, has produced and supplied about 30 tonnes of antibateria knitted fabric per day.

Vinatex has offered 500,000 free face masks to those in need.

It aims to provide nearly 12 million face masks for the market in March./.

Data should be shared to serve digital economy

Data is considered a core element of Vietnam's digital economy; however, it is not well shared and connected to serve the country.

Speaking at an online seminar held by the Government Web Portal on February 28, Nguyen The Trung, CEO of DTT Technology Joint Stock Company said: “Vietnam has not yet seen the power of exploiting data.”

Trung said many places still managed data in the traditional way, in an ask-give manner instead of sharing data, so “a national database is still an impossible mission.”

Seeing changes in the awareness of sharing information in many places, Trung said: “National digital data will take place soon. It will be a waste if the information is closed, not shared.”

Nguyen Hong Thang, deputy director of the Department of Computerisation, Ministry of Information and Communications, thought Vietnam could develop a digital economy with well-grown technology in which data is the basis for change.

He said: “Local data infrastructure was not built with an overall strategy and data is still distributed in different places.”

The official added: “It is still difficult to connect all the data now, as not all the data is secure. Vietnam has to have a well-protected overall data system first.”

Thang confirmed: “Local technology could now protect the data,” but what was needed was “determined minds from all the decision makers,” he added.

Thang considered Vietnam one of the leading countries in approaching and moving forward to make regulations on open data management that help people, businesses and the whole society.

Nguyen Hoang Phuong, deputy director of the Information Technology Centre of the Vietnam Social Security, said his agency had been aware of the role of data sharing for a long time.

Phuong said their database included 86 million people with health insurance and about 15 million people participating in social insurance, which is one of the largest data stores in Vietnam.

The Vietnam Social Security has worked on connection and data sharing. Currently, it is connecting and sharing data with eight service providers.

Phuong also said they worked with the tax agencies and the Ministry of Justice in connecting data of their clients with nearly 13,000 medical examination and treatment facilities.

He said: “It is necessary to connect with more and more agencies to enrich the database.”

Praising the efforts of Phuong’s agency, experts at the seminar agreed that national databases on agriculture, finance and population and land management were still needed.

Thang told the seminar: “The Ministry of Information and Communications is drafting a decree on management, connection and sharing of digital data, in which it makes it compulsory for all state agencies to share data with other state agencies.”/.

Vietnam Airlines reports huge loss amid Covid-19 outbreak

As many as 40% of planes of the national flag carrier Vietnam Airlines are being left idle and leaders' wages cut by 40% amid falling customers due to the virus outbreak.

Duong Tri Thanh, general director of Vietnam Airlines, announced the numbers during the meeting with the Committee for the Management of State Capital at Enterprises about the impact of Covid-19 outbreak on the economy on February 28.

"This is the worst situation that we've ever had in the local aviation industry," Thanh said. As China market closes, South Korea and Japan are the two most important markets for Vietnam in Northeast Asia. Moreover, the Italy outbreak has created more challenges for European flights.

In South Korea, starting from February 24, Vietnam Airlines evacuated many employees and only maintain a minimal number of employees working at its representative offices. The number of flights from Seoul and Busan with the Boeing 787 and Airbus 350 used to be six flights a day but has now been reduced to four flights a day using Airbus 321s.

"The aviation and tourism sectors are affected first and foremost. Previously, we estimated that the situation might pick up in the summer. But since pupils are given a long break from school, it's likely that there will be no summer holiday or peak season for travelling," he said.

China is the hardest hit. 3,300 out of 3,800 planes in China are being left idle and 30,000 pilots are not working. Average plane tickets have dropped by 70%. According to Thanh, the outbreak has hampered the development of the aviation sector by 3 to 4 years.

Vietnam Airlines can't rent out their planes either. "We were just about to complete the negotiation to rent 10 planes to our partner in the EU. But then they cancelled the deal because there is an outbreak in the EU too," Thanh said.

The carrier's current goal is how to maintain business and overcome this difficult time. Foreign pilots will take unpaid leave for two weeks. Vietnamese employees in other countries will take a two-week to one-month leave.

"The wages of the top leaders will be cut by 40% and 30% for lower positions. Employees will alternatively take a leave and wages will be cut by 20% gradually," he said.

About 20,000 employees are being affected by the outbreak, forcing the carrier to implement unprecedented solutions.

Competitiveness strengthened for successful integration into EVFTA

The recently ratified EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) will give the Vietnamese business community an opportunity to improve its competitiveness in global value chains.

The deals will also create long-term bilateral cooperation frameworks toward mutually beneficial partnership and sustainable international economic links.

Once the EVFTA takes effect, the EU will eliminate import taxes on nearly 86% of tariff lines from Vietnam, increasing to 99% of tariff lines after 7 years. The rest of Vietnam’s export products will be liberalised via tariff quotas.

In return, Vietnam will remove 48.5% of tariff lines for EU goods in the first year, increasing to 92% of tariff lines after 7 years and more than 98% of tariff lines after a decade.

Deputy Foreign Minister Bui Thanh Son underscored the need for functional agencies to complete the necessary procedures to be submitted to the National Assembly for approval. He called for detailed plans to enable Vietnamese businesses to make full use of the opportunities and prepare for the challenges of the agreements.

If the National Assembly approves the deals at its May meeting and required legal procedures are completed by June, the EVFTA will take effect on July 1.

Luong Hoang Thai, Director of the Multilateral Trade Policy Department of the Ministry of Industry and Trade, said “We need to ensure our policies to be in line with the new conditions created by this new-generation free trade agreement. In simple words, Vietnam should harmonize institution reform and administrative procedure reform towards improving competitiveness and making the most of the agreement’s opportunities. The Prime Minister has stressed the importance of policy and institution reform during the preparation for the EVFTA and EVIPA.”

The removal of 99% of tariff lines under the EVFTA will create more opportunities for Vietnam’s exports to the EU, but will also increase competition for the domestic market.

Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry, said “Domestic companies must prepare for the new competition and do their best to improve their competitiveness instead of waiting for state subsidy. Our renewal and open-door process has proved that those who dare to accept competition, open the door, and give up subsidy early can develop strongly. These are practical lessons for the current integration process.”

In order to enter the European Union, a demanding market with the world’s highest standards, and enjoy its preferential tariffs, Vietnamese products must meet stringent conditions in quality, production process, and input materials.

Nguyen Thi Huyen, Director of the VinaSamex Company, which specialises in cinnamon and star-aniseed production and export, said that Vinasamex is ready for major export orders that will enjoy tariff reduction from 14% to 0% when the EVFTA takes effect.

“The EU is our target market. Since 2013 we have been developing value chains of material growing areas, production factories, and exports to foreign customers. The EU requires a lot of certifications, for example, in food safety, hygiene, and fair trade. To date we have already earned many international certifications,” said Huyen.

Businesses maintain stable production amid impact of COVID-19 epidemic

The production activities of firms in several localities nationwide have been greatly affected by the novel coronavirus (COVID-19) epidemic as enterprises with partners in China and throughout Asia have had numerous orders cancelled.

businesses maintain stable production amid impact of covid-19 epidemic hinh 0Whilst simultaneously promoting an image of being a safe travel destination, the central province of Quang Nam along with Da Nang city have been focusing on maintaining stable production activities.
At present, Quang Nam province is home to over 100 industrial garment enterprises that employ more than 30,000 labourers. These businesses have grossed an export turnover that makes up over 30 per cent of the province’s total export revenue.

Due to the adverse effects caused by the COVID-19 epidemic, the garment and textile industry is facing numerous challenges although several firms had previously conducted training for workers regarding preventive steps against the disease.

These measures include asking workers to don anti-bacterial face masks and measuring the body temperature of staff upon their arrival for work.

Many companies whose managers are either Taiwanese or Chinese have been forced to put any labourers who have recently arrived in the country from epidemic areas into quarantine in line with regulations.

Moreover, upon their return to work, all workers are required to wear masks and regularly wash their hands with soap or hand sanitiser.

Currently, the COVID-19 epidemic is causing a serious impact on enterprises that import raw materials from China or on companies that export to the northern neighbour.

A number of businesses have begun to shift their import of raw materials from other ASEAN member states as opposed to China, while export activities have also been redirected to Europe and other nations.

At present, the central coastal city of Da Nang is home to six industrial parks, including one high-tech park that hosts 53 businesses which employ Chinese workers. Nguyen Van An, deputy director of Da Nang City's Department of Labour, Invalids and Social Affairs, said 19 Chinese people have recently returned to work in Da Nang following the Lunar New Year, of which 10 people work in industrial zones.

As a means of ensuring the safety of workers, the Department has co-ordinated efforts with the Management Board of industrial parks to request that enterprises which receive Chinese engineers and workers move to put them into quarantine in line with regulations set out by the health sector.

Following a period of 14 days in isolation, these people are permitted to return to work.

An said all businesses have so far stabilised their production activities, adding that the total number of Chinese workers under monitoring has reached 201.

Vietnam Consumer Confidence down in the face of COVID-19

The COVID-19 outbreak has cost 54 points in the 2020 Vietnam Consumer Confidence, foreshadowing huge downturns in many domestic sectors.

Prior to the COVID-19 outbreak in China, 70 per cent of the more than 7,000 local consumers surveyed by Infocus Mekong Research thought the Vietnamese economy would do better in 2020 than in 2019.

Four weeks later, in a survey of the same consumers, less than 20 per cent were upbeat about Vietnam's economic prospects, with 62 per cent stating the economy would be worse in 2020 than in 2019. The survey was released on February 20 at the CanCham Crystal Ball Luncheon.

The turnaround in sentiment has been unprecedented. Even the SARS outbreak in 2003 could best be described as only a blip on Vietnam’s Consumer Confidence radar.

Prior to the outbreak, Vietnamese consumers' biggest fears and reservations concerning 2020 were environmental pollution, the reduction of healthcare/education services and Infrastructure development in the country. Now consumer fears are completely focused on being Infected by the coronavirus and its negative business impact.

Education, food and beverages, healthcare, and personal care remain the top spending categories for 2020. However, the growth of these categories seems to be in decline, especially for all forms of communications, with the advent of Viber, WhatsApp, or Zalo Chat, digging into communications revenues.

As 90 per cent of the Vietnamese population above 18 already own smartphones, even Thegioididong a.k.a. Mobile World is resorting to selling watches to stem the bleeding.

Almost all entertainment activities will suffer significantly in 2020, from travel/tourism, hospitality, and restaurants to bars and cinemas, as Vietnamese consumers avoid public places.

However, due to the corona health scare, healthcare and personal care products could rebound as consumers go out of their way to protect their families from infection.

There is also a decline in personal loans. In 2019, 54 per cent of those surveyed took out some form of loan from either a bank, consumer credit institution, or from other non-institutional sources, only a growth of 2 per cent against 2018. Considering the cautious sentiment in the Year of the Rat, this may well decline in 2020.

Historically, Vietnamese are very optimistic people, consistently ranking among the top 10 percentile in Asia, and are resolute and resourceful. However, with public schools potentially being shut down till March, creating a huge impact on productivity and parental burdens, and due to the daily coronavirus warnings from the Ministry of Health, fear has struck at the hearts of Vietnamese consumers.

Hence, consumerism growth will be down versus 2019 by an estimated 10-15 per cent, predicated by the Year of the Rat conservatism and the coronavirus' negative impacts on consumer purchasing behaviour.

Some sectors will be impacted much worse than others, and the end result will not be positive for overall consumption growth in 2020.

Yeah1 sells six million stocks to undisclosed strategic partner

Yeah1 stocks (HSX: YEG) produced a minuscule rise after the company chairman and general director sold six million shares to an unnamed strategic partner for VND300 billion ($13 million).

Yeah1 (HSX: YEG) closed the afternoon session on February 12 at VND50,200 ($2.18), up VND200 (0.9 US cent) against the previous session. The rise took place after Yeah1 chairman Nguyen Anh Nhuong Tong and general director Dao Phuc Tri sold more than six million stocks for VND50,000 ($2.17) per share. The amount included Tong’s 5.05 million and Tri’s one million shares.

As a result, their ownership rates in Yeah1 Group have narrowed to 30.3 per cent, followed by Ancla Assets Ltd. (10.93 per cent) and venture investment fund DFJ VinaCapital Venture (9.74 per cent).

According to Yeah1, the shares were picked up by its new strategic partners, however, the firm refused to disclose names.

Yeah1 held up by plunging stockYeah1 acquires MediaOne despite consecutive quarterly lossesYeah1 suffers sizeable losses from break up with YouTube
Yeah1 reported VND435 billion ($18.9 million) of revenue in the fourth quarter of 2019, down 32 per cent on-year. Notably, the spike in management costs and the $3.6 million provision resulted in losses of nearly VND158 billion ($6.87 million) in the quarter.

For the whole year, Yeah1 made VND1.449 trillion ($63 million) in revenue and VND372 billion ($16.17 million) in losses.

YEG recently approved the plan of developing frameworks for celebrities, which includes establishing Your Entertainment Platform JSC (YEP) and Super Star Yeah1 JSC (YSS) both worth VND14 billion ($608,700) each. Yeah1’s ownership rates in the two subsidiaries are 99.98 and 50.98 per cent, respectively.

PetroVietnam Power Nhon Trach 2 JSC gets tax penalties

The General Department of Taxation has slapped a hefty fine on PetroVietnam Power Nhon Trach 2 JSC (HSX: NT2) for submitting a false declaration, collecting VND17.9 billion ($778,260) in total penalties.

According to the tax authorities, PetroVietnam Power Nhon Trach 2 submitted a false declaration resulting in a lack of tax payable and was thus fined for 20 per cent of the difference in payables, corresponding to a fine of VND2.74 billion ($119,130) and VND6 million ($260) for to improper invoicing.

In addition, the authorities retrospectively collected VND13.7 billion ($595,650) of corporate income tax, value-added tax, and contractor tax. The late payment interest for these arrears is more than VND1.44 billion ($62,600), calculated by the end of January 14, 2020.

The total amount of fines for administrative violations, tax arrears, and late payment interest is VND17.9 billion ($778,260).

In the fourth quarter of 2019, PetroVietnam Power Nhon Trach 2 achieved a consolidated revenue of VND1.91 trillion ($83 million), down 8 per cent on-year.

The company's after-tax profit reached VND210.8 billion ($9.17 million), declining 17 per cent compared to the final quarter of 2018.

The company said that the profit in the last quarter of 2019 decreased compared to the year before when the company had a reversal of provisions to pay while the fourth quarter of 2019 did not have such an amount.

In addition, exchange rate differences due to revaluation of accounts payable in foreign currencies in the fourth quarter of 2019 decreased by VND60.7 billion ($2.64 million).

Throughout 2019, the company earned nearly VND7.65 trillion ($332.6 million) in revenue, about VND20 billion ($870,570) less than in the corresponding period in the year prior, with VND759 billion ($33 million) of after-tax profit, down 3 per cent. 

Kienlong Bank to sell 176 million shares of Sacombank

The Kienlong Commercial Joint-Stock Bank (Kienlong Bank) will put up more than 176.4 million shares of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) for sale at a starting price of VND21,600 per share (US$0.93).

Kienlong Bank will offer the shares, which are collateral assets of some individuals, to retrieve debts. This is the second attempt by Kienlong Bank to offload Sacombank’s shares since its failure at the end of January.

If the sale is successful, Kienlong Bank will collect more than VND3.8 trillion.

Compared to the previous offering, Kienlong Bank has discounted the share price by 10 per cent. However, the price of VND21,000 is still nearly double the current transaction price of Sacombank shares on the stock market.

In 2019, Kienlong Bank's total revenue touched VND1.2 trillion, down 4 per cent compared to the same period in 2018. The bank’s consolidated post-tax profit reached only VND68 billion, down 71 per cent year-on-year.

If the sale is completed within 2020, Kienlong Bank estimates that the bank's pre-tax profit this year could reach about VND750 billion.

SSI Securities to issue 83 million shares to pay dividends

SSI Securities Corporation (SSI) plans to issue nearly 82.89 million shares to pay dividends to shareholders at a rate of 16 per cent.

This means each shareholder who owns 100 shares will receive 16 new shares. Value issued by par value is nearly VND829 billion (US$35.7 million).

Capital for the issuance is sourced from the company’s accumulated undistributed after-tax profit as of December 31, 2018.

After the issuance, SSI’s chartered capital will be raised to nearly VND6.03 trillion.

The company recorded revenue of VND3.2 trillion in 2019, a decrease of nearly 12 per cent year-on-year. Post-tax profit reached more than VND907 billion, a decrease of 30 per cent compared to 2018.

In 2018, SSI’s revenue reached VND3.67 trillion, up 26.7 per cent compared to the previous year, of which earnings from brokerage activities was VND1.13 trillion, an increase of 45 per cent over the same period last year and contributed nearly 31 per cent to the company’s total revenue. Post-tax profit reached VND1.3 trillion, an increase of 12.2 per cent compared to 2017.

BIDV offers assistance to individual customers amid coronavirus outbreak

The Joint Stock Commercial Bank for Investment and Development of Viet Nam (BIDV) has announced a credit package worth VND5 trillion (US$215 million) for its individual customers hurt by the acute respiratory disease caused by novel coronavirus (Covid-19).

The capital is prioritised for customers operating in the fields of agriculture, export and tourism.

Customers are able to take BIDV loans for production and trading of agricultural products such as dragon fruit, watermelon, jack fruit and banana as well as several aquatic products like tra fish.

The package also includes support for operators of restaurants and hotels, while aiding those with trade activities with China.

Under the package, customers will enjoy a stable annual interest rate of 5.5 per cent for a maximum of four months since the first disbursement.

The epidemic could cause losses of $5.9-7.7 billion for the domestic tourism sector in the next three months, according to the Viet Nam National Administration of Tourism (VNAT).

The tourism sector has estimated a 90 per cent decrease in the number of Chinese visitors due to the disease, and a 50-70 per cent drop in holidaymakers from other countries. The number of domestic holidaymakers is also likely to suffer a fall of 50-70 per cent.

VN needs to improve structural reform, competitiveness to tap CPTPP opportunities

Vietnam should improve structural reforms and businesses’ competitiveness to efficiently implement the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), heard a conference held by the Central Institute for Economic Management (CIEM) in Hanoi on February 19.

CIEM Director Tran Thi Hong Minh said the CPTPP, which took effect in early 2019, is expected to create new impetus for trade and investment development and boost economic reform in Vietnam.

However, Minh said efficiency in implementing CPTPP and competence in taking advantage of opportunities provided by the trade deal was heavily dependent on institutional capacities, the competitiveness and domestic firms' ability to adapt.

According to Nguyen Anh Dương, head of the CIEM’s General Research Department, it is necessary for Vietnam to handle several institution-related problems to efficiently implement the CPTPP, including fully understanding the trade deal, enhancing coordination among ministries and agencies and timely issuing legal documents.

Duong added that the trade deal provides significant opportunities to businesses but firms must make more preparations to realise the opportunities. Firms are paying more attention to taxes and tariff liberalisation but must also fully understand origin rules, he said.

Duong said opportunities will come first from businesses’ efforts to change their thinking and improve their competitiveness, adding that room for businesses to take advantage of the trade deal remains large.

Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy, said that as the CPTPP will push structural reform, implementing the trade deal must follow the commitments then more importantly, go beyond commitments for efficiency.

Nguyen Thi Thu Trang, Director of WTO and Integration Centre under the Vietnam Chamber of Commerce and Industry, said the CPTPP set requirements and created pressure for structural reforms in Vietnam.

Together with the European Union – Vietnam Free Trade Agreement, the country has significant economic opportunities, Trang said, adding that it is critical to speed up institutional reforms.

Tariff incentives provided by the trade deal will provide opportunities to boost the development of the part-supply industry, Trang said.

Trade between Vietnam and CPTPP members reached 77.4 billion USD in 2019, a year-on-year rise of 3.9 percent, statistics of the Ministry of Industry and Trade revealed./.

Smart tourism - a lever to develop Hanoi’s non-smoke industry

The Hanoi Department of Tourism and the Vietnam Posts and Telecommunications Group’s Hanoi branch (VNPT Hanoi) have worked together to carry out a smart tourism project with a view to promoting the capital city’s non-smoke industry.

Both sides completed the update of the tourism department’s database management system, which provides competent authorities and visitors with information about 3,494 qualified lodging facilities, 20 standard restaurants, seven standard entertainment zones, and one qualified sport area.

Besides, information about 1,346 domestic and international travel agents, 5,722 tour guides, 10 foreign travel representative offices, and 10 tourist sites are also available on the system.

Under the project, the Visit Hanoi application has been developed and piloted on IOS and Android, allowing users to get access to information about standout tourism events, destinations and tourism services in the city. The tourism department is cooperating with VNPT Hanoi in building the Myhanoi application on App Store and Google Store.

In addition, the e-portals “sodulich.hanoi.gov.vn” and “tourism.hanoi.gov.vn” are completed and available in Vietnamese, English and French, updating information about state management on tourism and operation of travel firms.

The tourism department and VNPT Hanoi has also put free wifi in operation in 12 tourist spots, including the pedestrian space around Hoan Kiem Lake, Huong Son Landscape Complex in My Duc district, Bat Trang ceramics village in Gia Lam district, Duong Lam ancient village in Son Tay town and Co Do artist village in Ba Vi district.

Furthermore, the automatic guiding system has been launched for visitors to key tourist attractions like Thang Long Imperial Citadel, the Temple of Literature and Vietnam Women’s Museum./.