Even though casinos have been legalised in Vietnam, they still are failing to attract investment and visitors. 

In early 2017, Government Resolution 3 legalised casino business in Vietnam along with regulations and fines for violations. The PM also approved the pilot plan allowing Vietnamese to enter casinos.

Nguyen Mai, Chairman of the Vietnam Association of Foreign Invested Enterprises said casinos were now operational in 43 hotels and resorts in Vietnam. The sector has had rapid growth and doubled in size since 2017. However, Mai said the socio-economic effects were still much lower than expected.

"Because this is a sensitive business so there's a lack of agreement about attracting foreign investment. We haven't been able to access or be in sync with international practices to adjust regulations over this business," Mai said.

With a population of nearly 100 million people and a growing middle class, Vietnam is a potential market for casinos. According to the firms, many people who earn from VND10m (USD426) to VND20m a month are willing to spend VND1m to VND3m on gambling.

Vietnamese people spend about USD3bn a year on buying lotto tickets, USD1bn on gaming and USD1bn on gambling overseas. Vietnam also attracts millions of visitors thanks to the beautiful scenery and some want to spend money in casinos.

According to Mai, the casino business is managed by the Ministry of Finance but due to lack of personnel, evaluating and issuing business permits have been slow.

"We need to revise and further complete the legal framework by learning from other countries. It will encourage foreign as well as Vietnamese individuals and organisations to invest in casinos and attract more tourists," Mai said. "We can learn from Singapore and set up a national council on gambling or allow city and provincial authorities to issue permits and manage the casinos as Australia does."

He went on to say that a national council on gambling problems is more suitable for Vietnam. The deputy prime minister can be the council's chairman and the members will be representatives of various ministries and associations.

This council will consult the prime minister on legal frameworks and management process in order to prevent any possible problems.

Meeting talks easing difficulties for PetroVietnam, Vietnam Airlines

Prime Minister Nguyen Xuan Phuc on May 21 chaired a meeting with permanent Government members to discuss measures to tackle difficulties faced by the Vietnam Oil and Gas Group (PetroVietnam) and the national flag carrier Vietnam Airlines.

Speaking at the event, PM Phuc said he recently attended online and offline meetings with business community and the Government has issued a resolution to remove obstacles for them.

He hailed PetroVietnam and Vietnam Airlines for proactively designing plans to overcome challenges and maintain operations.

The Government leader shared the difficulties faced by the two corporations and stressed that there are many opportunities ahead.

He suggested they continue with internal restructuring, including market and labour restructuring, saving costs, further improving operation efficiency, and maintaining key workforce.

Ministries and agencies were also asked to join hands to remove difficulties for PetroVietnam and Vietnam Airlines.

The PM also gave opinions on proposals by the two groups at the working session./.

Hanoi welcomes RoK investors

Hanoi welcomes more investors from the Republic of Korea (RoK), Secretary of the municipal Party Committee Vuong Dinh Hue said and invited RoK businesses to participate in an investment promotion forum hosted by the city in June.

When receiving RoK Ambassador to Vietnam Park Noh-wan on May 21, Hue affirmed that Hanoi has basically put the COVID-19 pandemic under control, which is the outcome of joint efforts between the Government and people, including Koreans living in Hanoi.

The city is working on the dual tasks of preventing the disease and taking economic development measures at the same time, he stated, adding that it aims to maintain a growth pace 1.3 times higher than Vietnam’s average growth rate.

The city leader also asked the Ambassador to coordinate in restoring the supply chain for Vietnamese businesses and Korean businesses operating in Vietnam.

Ambassador Park thanked the city leader’s directions and attention to ensure safety for Koreans living in Hanoi and help Korean enterprises maintain their operations./.

Danang launches appealing promotions to lure domestic visitors

The central city of Danang has offered very attractive promotional programmes to entice domestic tourists while international flights remain suspended due to Covid-19.

Since early this month, Mai Linh Tourism Company in Danang has started receiving the first travellers after a long closure due to the pandemic. Nguyen Viet Trai, director of the firm, said that international flights were still banned, so Vietnam would have to focus on domestic tourists. Before Covid-19, the company’s major customers were Taiwanese.  

Hai Van Cat International Travel Company, which specialises in providing tours for visitors from China, Hong Kong and South Korea, has turned to servicing domestic tourists. The company has offered a 40% discount for a three-day and two-night package.

A range of three and four-star hotels in Danang have sharply cut their room tariffs. Before Covid-19, some four local four-star hotels charged more than VND3 million (USD130,434), but now the figure has fallen to just less than VND1 million.

It is quite easy for tourists to find rooms priced at around VND500,000 in Danang at this time. Most of the hotels do not require deposits and offer free breakfast.

According to Nguyen Xuan Binh, deputy director of Danang’s Department of Tourism, the top priority for the local tourism sector is drawing domestic visitors, particularly from the key markets of Hanoi and HCM City.

In the first four months of this year, Danang welcomed roughly one million visitors, down 58% on-year. International tourists saw a drop of 50%.

Businesses respond to Quang Ninh’s tourism promotion campaign

Major businesses such as Vingroup and Sungroup have launched various summer discount programmes in response to the tourism promotion campaign of the north-eastern province of Quang Ninh in 2020.

From May 16, Vingroup, a real estate giant in Vietnam, offers seven preferential packages for vacationers, including free return air tickets and free entrance into Vinwonders and Vinpearl Safari parks for those who book rooms for two nights or more at resort areas of Vinpearl Nha Trang, Phu Quoc, and Da Nang-Hoi An.

Meanwhile, Sungroup - one of the largest real estate developers in Vietnam, will provide a free programme worth VND290,000 per passenger when they visit Ha Long Bay through Ha Long International Cruise Port.

On May 14, the provincial People’s Council approved a tourism stimulus package worth VND200 billion (US$8.5 million) with the aim of attracting more visitors at home and abroad.

Under the incentive, starting from May 15, ticket fees will be exempted for all visitors, both Vietnamese and foreigners, to Ha Long Bay, Quang Ninh Museum and the complex of Yen Tu monuments and landscape until the end of the month and upcoming holidays.

In addition, passengers going through Van Don International Airport will receive free round-trip bus rides to Ha Long and Uong Bi cities until the year's end.

Quang Ninh is endowed with natural advantages for sea and island tourism. It has a coastline of more than 250 kilometres and more than 2,000 islands and islets which account for two-thirds of the total number in Vietnam.

It is home to popular destinations such as Ha Long Bay, Bai Tu Long, Ha Long Bay National Park and some islands.

In particular, Ha Long Bay was twice recognised as a World Natural Heritage site by UNESCO in 1994 and 2000. The bay spans 1,553 square kilometres and includes 1,969 islands of various sizes. It features thousands of limestone karsts and islets in various shapes and sizes. The limestone in the bay has gone through 500 million years of formation in different conditions and environments.

Quang Ninh welcomed only 1.54 million holidaymakers in the first four months of 2020, a year-on-year decline of 77%, due to COVID-19. 

Decisive reforms needed for Vietnam to get full EVFTA benefits: WB

Vietnam needs to fill major legal gaps and address key implementation issues to reap the full benefits of the European Union Vietnam Free Trade Agreement (EVFTA) to be ratified by Vietnam’s National Assembly in May, according to a new World Bank report.

The report, “Deepening International Integration and Implementing the EVFTA”, released on May 19, estimates that by simply enjoying the tariff reduction as agreed, EVFTA could boost Vietnam’s GDP and exports by 2.4% and 12% respectively by 2030, while lifting an additional 100,000-800,000 people out of poverty by 2030. Such benefits are particularly urgent to lock in positive economic gains as the country responds to the COVID-19 pandemic. 

The report argues that Vietnam could benefit even more from the next-generation trade deals such as EVFTA and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) if it stimulates a comprehensive agenda of economic and institutional reforms to facilitate compliance with non-tariff agreements.

The report estimates that such reforms would result in a “productivity kick”, increasing GDP by 6.8%, relative to the baseline scenario, by 2030. It highlights the need for Vietnam to increase capacity to handle certain key issues, including rules of origin, animal and plant sanitary standards, and investor-state dispute settlement.

“If Vietnam can act in a decisive manner to close legal and implementation capacity gaps, it can capitalize a trade deal whose direct benefits are estimated to be largest in the country’s history,” said Ousmane Dione, World Bank Country Director for Vietnam.

“With COVID-19 acting as a reset button and EVFTA as an accelerator, now is the perfect time to embrace deeper domestic reforms”, Ousmane noted. 

The report cites the rules of origin requirement as one of the key challenges for Vietnam to overcome. Even if a product is produced in Vietnam, EU importers might not determine it as such due to the high dependence on imported materials.

The report finds that in key export manufacturing industries, a majority of inputs are sourced from foreign countries (for instance, 62% in electronics and 53% in the automotive sector). It calls for greater efforts to improve linkages between domestic suppliers and foreign enterprises as lead firms in major global value chains.

At the same time, rigorous European food safety standards make it imperative for Vietnam to improve the clarity and consistency of its sanitary measures. By one estimate, the cost of full compliance with existing non-tariff measures in Vietnam will be equivalent to a 16.6% tariff (compared to a regional average of 5.4%).

The introduction of EVFTA is expected to bring more investors into Vietnam both from Europe and the rest of the world. As the flow of foreign investment increase, so does the number of commercial grievances. The report calls for accelerated development of a Systemic Investment Response Mechanism to settle disputes between investors and the state.

The report also makes the case for prioritizing key sectors that make up the bulk of Vietnamese exports to the European market for COVID-19 economic recovery efforts, to maximize the benefits of the trade deal.

Import turnover climbs to over US$78 billion during four-month period

The opening four months of the year have seen the nation’s total import turnover rise to over US$78 billion, a drop of 0.3%, with China maintaining its place as the country’s largest import market, according to figures released by the General Department of Customs.

Elsewhere, in terms of turnover scale, Asia represents the largest trading market for the nation. 

Throughout the reviewed period Vietnamese trade with the Asian market reached US$103.61 billion. Despite suffering a slight annual decrease of 0.4%, the continent accounted for 65.2% of overall import and export turnover for the country.

Most notably, although declines occurred in the majority of major markets, Asia still maintains 80.1% of the nation’s total import turnover.

With a general decline occurring across the board, several import groups recorded slow or negative growth.

The only commodity group to enjoy increases over the four-month period were computers along with electronic products and components. Indeed, these items represent the nation’s largest import group of the reviewed period.

Since the start of the year, imports of computers, electronic products and components reached approximately US$17.6 billion, representing a 11.5% increase on-year.

In particular, FDI enterprises spent a total of US$14.7 billion during the period, equivalent to 84% of the total import value of computers, electronic products and components, an increase of 11.7% from last year.

The Republic of Korea remains the largest consumer of Vietnamese computers, electronic products and components with a value of US$5.44 billion, a drop of 6.1%, followed by China, Taiwan (China), and the United States.

Other import items which recorded remarkable growth include crude oil, in addition to telephones and components.

Despite a number of items recording growth, the General Department of Customs noted that several key import groups endured a decrease in turnover of up to hundreds of millions of dollars during the reviewed period.

The commodity group that suffered the largest fall in turnover was petroleum, with a total import volume of 2.4 million tonnes over the four-month period, a sharp decline of 41.7%, equivalent to US$800 million, in comparison with last year’s same period.

Completely built-up automobiles, along with iron and steel, also recorded sharp drops, with falls of US$430 million and US$290 million, respectively.

Indeed, the commodity groups which suffered the biggest drops in import turnover are those that make major contributions to the customs sector’s revenue. 

Fresh injection of foreign investment set for local property sector

Despite unpredictable developments relating to the novel coronavirus (COVID-19) epidemic, the domestic real estate market is anticipated to attract a fresh wave of foreign investment due to its high-growth potential, reasonable prices, and relative safety as an investment destination, according to insiders.

Experts believe that there are indications that current real estate prices are beginning to bottom out, with prices predicted to increase gradually in the near future, therefore providing an unique opportunity for foreign investors. 

The past 40 years have seen local house prices experience an upward trajectory with statistics of research units indicating that over the past 16 years, the real estate prices in Hoan Kiem district of Hanoi and in District 1 of Ho Chi Minh city have undergone a 27-fold increase and a 22-fold rise, respectively.

In comparison, gold prices over the same period have only increased by just over five times.

Most notably, real estate prices in hotspots such as in Duong Dong town close to the night market of Phu Quoc island have enjoyed a surge of up to 300% over the course of the past two years.

These rising prices nationwide can be attributed to the historic trends of Vietnamese people moving to hoard assets, with the savings rate of local people reaching nearly 50% of their income, double the figure seen in other nations.

Statistics show that even during the peak of the COVID-19 outbreak, investors continued to seek out real estate in areas close to ongoing projects such as transport infrastructure, largely due to their clear legal regulations, reputable investors, and high profitability in the future.

Indeed, foreign investors have also shown their keen interest in the nation’s real estate market.

Dr. Su Ngoc Khuong, Senior Director at Savills Vietnam , said that since 2019, a number of projects worth over US$500 million in both Hanoi and Ho Chi Minh City are in the process of negotiating transactions which are expected to occur in the third quarter of this year.

The majority of notable foreign investors keen on these projects come from Japan, the Republic of Korea, Hong Kong (China), Singapore, and a number of European nations.

The Vietnamese real estate market is projected to become a magnet which attracts billions of dollars’ worth of foreign investment capital in the near future, according to real estate experts. 

Domestic market offers solution for businesses following COVID-19 pandemic

The domestic market is poised to play an important role in getting the nation’s socio-economic development back on track following the easing of the novel coronavirus (COVID-19) pandemic, with local firms needing to pay close attention to developing trends due to the ongoing economic impact caused by the virus.

The country’s economy has been experiencing a difficult and challenging period since the first COVID-19 outbreak was detected. Indeed, the past three months have seen the majority of the production and business sectors encounter plenty of difficulties caused by the negative impact of the epidemic. This has resulted in both exports and domestic consumption enduring a slowdown with a number of items having an excess supply, leading to losses or an overall decrease in profits. As a result, a number of enterprises have been unable to survive and have either suspended operations or gone bankrupt. 

According to figures released by the General Statistics Office, the first four months of the year saw the number of companies ceasing operations or facing bankruptcy higher than the rate of newly-established firms. Most notably, in domestic trade many stores were either forced to close, open at reduced hours for a long period of time, or completely halt operations. Due to the recent economic downturn sales at many supermarkets, shopping centres, and stores have suffered a sharp fall.

The latest report by the Ministry of Industry and Trade indicates that total retail sales of goods and social consumer services for the entire country over the past four months has dropped by 4.27% in comparison to last year’s figures. This represents an unprecedented decline in revenue within the domestic market, the most potential and important feature of the national economy.

Facing up to the consequences of the COVID-19 pandemic, Vu Vinh Phu, former Chairman of the Hanoi Supermarket Association, believes that in order to achieve greater global market penetration, it is essential for domestic businesses to place a major focus on developing the domestic market. If problems occur within the distribution system along with links between production and distribution, then companies will face serious hurdles, especially in the context of the ongoing spread of the COVID-19 globally.

Phu suggests that ministries, sectors, and localities should continue to improve the local business environment by making it more public and transparent, whilst simultaneously taking on monopolies occurring in sectors, the hoarding of goods, speculation, transfer pricing, and tax evasion.

“Enterprises need to continue building a strong domestic retail brand, bolster confidence of buyers and sellers in a long-term and sustainable manner. That is a firm foundation for the fast and effective development of each business organisation and individual in the market,” he added.

Vu Tien Loc, Chairman of Vietnam Chamber of Commerce and Industry (VCCI), stated that the market represents a vital issue for Vietnamese enterprises. In the context of the country’s deeper integration into the global economy following the signing and implementation of dozens of free trade agreements, this is seen as opportunities for local firms to gain a greater foothold within the global market.

As a means of enjoying a level playing field, with many opportunities coming alongside challenges and tough competitors, ways in which to secure a firm foothold within the domestic market looks to be an issue of major importance.

According to economic experts, the domestic market’s increasing demand over recent years and ahead in the future means its development will promote the production of Vietnamese goods in a strong and highly competitive fashion, therefore serving domestic consumption and exports. As a result, the domestic market will play an important role in the nation’s socio-economic development throughout 2020 and in subsequent years.

Vietnam, a safe post COVID-19 investment destination

Vietnam has effectively controlled the spread of the COVID-19 epidemic and maintained a safe environment for production and trade. With many natural advantages, the country is a promising place for foreign investors to expand their supply chains.

International media has praised Vietnam’s effective COVID-19 response. Economists say Vietnam’s small number of COVID-19 infections and no deaths will enable it to recover the economy before most other countries. 

Frederick Burke, Managing Partner of the international law firm Baker McKenzie, says Vietnam’s response to the epidemic has made foreign enterprises feel safer doing business in Vietnam.

Michael Sieburg, a partner at Asia-focused consultancy firm YCP Solidiance, reveals there is a sense in many of his discussions that Vietnam, relative to many other countries, will move on the investors’ radar.

A representative of the Kizuna Joint Development Corp, which builds factories in Vietnam, says given its fast response to the virus, they expect foreign investment to pour into Vietnam after the pandemic. The company is speeding up plans to finish a 100,000-square-metre factory in southern Vietnam in July in anticipation of an increase in post-pandemic demand.

Before the epidemic, many businesses with factories in China had eyed Vietnam and other ASEAN countries.

Nguyen Anh Van, an official of the Van Trung 2 Industrial Park in Bac Giang province, says they have heard from a growing number of foreign investors wishing to invest in the industrial park.

“The first thing foreign investors ask about is the provincial investment policies, whether they’re favorable or not. The second matter of their concern is the location and infrastructure of the industrial park. Third, they want to know about labour quality and availability,” Van explains.

Successful containment of the COVID-19 epidemic has confirmed Vietnam’s ability to ensure a stable, safe environment.

Nikkei Asian Review reports shifting of investment is inevitable after the COVID-19 pandemic and ASEAN countries like Vietnam will be favored destinations. The IMF’s World Economic Outlook report for 2020 agrees Vietnam has the best growth prospect in ASEAN. Meanwhile, the World Bank concludes Vietnam’s economy was resilient to external shocks in the first few months of this year and its economy will rebound.

Director of the American Chamber of Commerce Adam Sitkoff says Vietnam is a lucrative investment destination in Asia.

According to Hirai Shinji, Chief Representative of Japan’s External Trade Organization in Ho Chi Minh City, Vietnam has successfully contained the epidemic and will now receive more foreign direct investment.

ChosunBiz, an economic newspaper published by the Republic of Korea’s Chosun Group, points out that the Vietnamese government’s determination to fight the epidemic received strong support from foreign investors. It gives as example Samsung’s closure of factories elsewhere in the world, but not in Vietnam.

Bloomberg predicts the Vietnamese economy will bounce back because Vietnam is a favored destination for foreign investors. It says US$12 billion was registered in Vietnam in the first four months of this year.

The Vietnamese government has set a GDP growth target of 5%. Fitch Ratings has kept the outlook for Vietnam at “stable” as they expect a strong recovery in 2021, with growth forecast at 7.3%.

Higher workforce quality needed to seize on EVFTA opportunities

Whilst the EU-Vietnam Free Trade Agreement (EVFTA) is anticipated to offer a wealth of opportunities through an expansion of export markets and greater job creation, the quality of human resources must improve in order to meet stringent requirements regarding the overall quality of goods and services, insiders state.

According to a study conducted by the Ministry of Planning and Investment, the EVFTA is poised to create an additional 146,000 jobs each year, with the majority focusing on labour-intensive industries that enjoy high export rates to the EU, including garment and textiles, leather and footwear, and aviation transport. 

The Multilateral Trade Assistance Project (MUTRAP) believes that aside from increased job opportunities, Vietnamese workers will be granted the chance to play a part in a wider job market and enjoy ways in which to improve their skills.

Despite these benefits, the MUTRAP recommends that the EU enforce stringent requirements based on product quality and production processes, which in itself will impose pressure with regard to labour competition on local enterprises as they seek higher-quality human resources as a means of meeting strict requirements.

Most notably, challenges in terms of high quality and skilled human resources remain a thorny issue for both domestic firms and foreign-invested businesses in the country.

Luu Thi Thu Huyen, CEO of Blue Sea, says the company plans to approach a number of markets within the EU as soon as the novel coronavirus pandemic subsides, noting that the workforce should be carefully chosen to ensure that strict standards set forth by the EU in relation to product quality and human resources are met.

With regard to labour issues, Takeo Nakajima, the Chief Representative of the Japan External Trade Organization Office (JETRO) in Hanoi, says that plenty of Japanese enterprises continue to appreciate the attractive investment environment in Vietnam. At present, up to 54% of Japanese firms are taking advantage of free trade agreements (FTAs) signed by Vietnam.

He notes that Japanese investors are to turn their attentions to areas such as export processing, retail, technology, construction, healthcare, and tourism to take advantage of the market from FTAs, especially the EVFTA, in the near future.

Despite this, Nakajima remains concerned about labour costs and the recruitment of personnel while investing in the country. Indeed, several Japanese businesses forecast that the current job market will make it harder to recruit workers than in previous years, which is considered to be one of the investment risks in Vietnam.

As such, many Japanese enterprises believe that resolving the problem of human resources remains one of the most important factors to consider when deciding on whether or not to continue expanding production and business activities in Vietnam, Nakajima said.

As a way of improving the quality of human resource and seizing on the opportunities brought about by the EVFTA, a number of schools under the Ministry of Industry and Trade have been actively investing in training, teaching, and providing human resources to adapt to the new situation. This is being done alongside efforts to strengthen connectivity with other firms, including large corporations such as Toyota, Samsung, and Canon.

A representative from Red Star University emphasises the importance of co-operating with enterprises in training activities due to the potential for the skills of students to be greatly improved in order to meet relevant job requirements set by companies.

Bamboo Airways to go public on stock market in Q4

Bamboo Airways is expected to be listed on the Ho Chi Minh City Stock Exchange ahead in the fourth quarter of the year, with the firm aiming to double its number of domestic routes in addition to restarting its air routes to the United States by the end of 2021 or in early 2022.

The move comes after the airline’s original plan to be listed as a public company was postponed due to the effects of the novel coronavirus (COVID-19) which hit during the second quarter of the year. 

Currently, Bamboo Airways is planning to purchase 60 engines worth US$2 billion from the General Electric Group of the United States for its Boeing 787-9 Dreamliner wide-body fleet. The firm will also continue to expand its operation once the COVID-19 has been fully brought under control locally, according to Trinh Van Quyet, CEO of Bamboo Airways.

In addition, the airline is poised to hire more aircraft over the course of the year as it seeks to expand operations. Indeed, the airline is currently operating between 45 and 50 domestic flights each day, with this figure expected to increase to over 100 flights per day by early June, which is equivalent to 80% of its flights in the pre-epidemic period.

Despite suffering revenue losses of more than VND 1,500 billion during the first quarter, the airline plans to double its number of domestic and international routes to 60 and 25, respectively, by the end of the year.

Noting that Vietnam is one of the global aviation markets that are recovering well post COVID-19, Bamboo Airways CEO Quyet said air passengers feel secure after the COVID-19 epidemic has been brought under control.

 “Domestic tourism is expected to enjoy robust growth in the near future due to the country’s ban on international commercial flights,” said the CEO, citing statistics that domestic airlines served 55 million passengers last year, an annual rise of 11%.

Over 1,000 projects to call for investment at 2nd Industrial Real Estate Forum

More than 1,000 projects will call for investment at the second Vietnam Industrial Real Estate Forum scheduled for June 19 in Hanoi.

The forum will be jointly held by the Vietnam National Real Estate Association, the Central Institute for Economic Management and the Entrepreneur Magazine under the theme of “Golden Opportunities in New Era”.

It is expected to share information and put forward solutions helping investors grasp golden opportunities of Vietnam’s industrial real estate market in the 2020-2022 period.

The forum will also act as a venue connecting State management agencies, local People’s Committees, Management Boards of Economic and Industrial Zones, international organisations, FDI firms, banks, financial institutions, and investors.

Although the property market is facing a lot of difficulties caused by the COVID-19 pandemic, the industrial real estate is assessed to be a potential and attractive segment for investors.

According to a report of the Economic Zone Management Department under the Ministry of Planning and Investment, by the end of March 2020, Vietnam had 335 industrial zones, with 260 put into operation and 75 being constructed./.

Labour market sees positive signs of growth

Experts have predicted the labour market will improve in the near future based on a series of upbeat signals.

According to the Ministry of Labour, Invalids and Social Affairs, between 70,000 and 80,000 workers who had previously lost their jobs will rejoin the workforce every month from May.

Statistics from the Hanoi Centre for Employment Services (HCES) showed that from February to April this year, 1,945 firms registered to recruit for 13,562 positions. Most of the jobs offered were in production, mechanical engineering, manufacturing and garment making.

Ta Van Thao, director of the centre, said the demand for new workers is mostly coming from small- and medium-sized enterprises.

He added that once the COVID-19 pandemic is under control it will lead to a more positive economic outlook and increased demand in the labour market.

Vietnamworks, a popular website for online human resources and recruiting services in Vietnam, has carried out a post-COVID-19-social-distancing survey of 400 companies and 3,400 job seekers. Accordingly, up to 25 percent of firms questioned said they would soon restart their recruitment efforts and 14 percent said they had already resumed.

Vietnamworks said despite a 20-percent growth in the number of jobs offered in the first week of May, a supply-demand balance is yet to be achieved thus competition is higher than ever.

Vietnam has gone 34 straight days without any new COVID-19 infection cases in the community, according to the National Steering Committee for COVID-19 Prevention and Control. As of May 20 morning, the total infections in the country remained at 324, including 184 imported cases that were quarantined upon their arrival. More than 80 percent of the patients have recovered, and zero deaths have been reported, said the committee’s treatment subcommittee./.

Thailand to build desalination plant to serve industrial production

The Industrial Estate Authority of Thailand (IEAT) is planning to invest in a water desalination plant to supply the Eastern Economic Corridor (EEC) in response to ongoing and future droughts.

The plant, capable of desalinating 300,000 cubic metres of seawater per day, will be set up through a joint venture. It will supply water to factories in the area that has had to reduce water consumption in the past year due to extreme drought.

The EEC covers three provinces – Rayong, Chon Buri and Chachoengsao, with 34 industrial estates and 6,033 factories. It is an ambitious project of the Thai Government to stimulate the local economy.

IEAT governor Somchint Pilouk said Thailand has been hit hard by what may be its worst drought in four decades, which has increased the risk of water shortages for industries in the country’s central and eastern localities and agriculture in the North and Northeast.

She said the desalination plant will solve the water shortage in the long term and guarantee the eastern areas will not face future shortages.

IEAT expects to finalise the investment budget and joint venture partnership for the project in the next few months.

The plant uses reverse osmosis to convert seawater to freshwater, removing salt and other minerals. Its capacity can be expanded if demand grows in the future, said Somchint.

IEAT began a feasibility study in March to determine the viability of using desalinated water to solve water shortages for the industrial sector. /.

Australia to impose new regulations on prawn imports

Prawn and uncooked prawn products for human consumption exported to Australia will have to follow new regulations from the Australian Department of Agriculture, Water and the Environment from July 1, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

The regulations are designed to manage bio-security risks related to Enterocytozoon hepatopenaei (EHP), a microsporidian parasite that affects the growth rate and sizes of prawns.

The current importing requirements related to EHP for prawn products were seen as too lax.

Prawn and uncooked prawn products will have to be deveined and certified by authorised organisations. Deveining is considered the most practical and effective method to reduce the amount of EHP that may exist in infected prawns.

Customs clearance procedures in Australia will require checking of the products to ensure that packages are sealed.

Australia's model health certificate for prawns and prawn meat for human consumption has been updated with the new criteria: “Uncooked prawns have been deveined (removal of the digestive tract to at least the last shell segment)”.

The importing changes do not apply to cooked products, or to deep processed, ground or battered products, nor to prawn products originating from Australia that have been processed at Thai Union-approved facilities.

Australia is Vietnam's seventh largest prawn importer, accounting for 3.8 percent of total prawn export value. In 2019, Vietnam exported over 127 million USD worth of prawn to the country, a 10.8 percent increase from 2018./.

Hanoi leader receives AEONMALL Vietnam General Director

Secretary of the Hanoi municipal Party Committee Vuong Dinh Hue on May 19 hosted a reception for General Director of AEONMALL Vietnam Co. Ltd. Tetsuyuki Nakagawa.

Nakagawa said AEON Group considers Vietnam a key market to expand operations, especially in retail.

Noting that AEON currently has five shopping malls in Vietnam, including two in Hanoi, he wished that leaders of the city would continue offering support to AEONMALL Vietnam to expand its operations. In the near future, he hoped that the city will soon approve the company’s parking area and shopping mall project at Giap Bat bus terminal in Hoang Mai district.

If allowed, it will be the largest project implemented by the company in Vietnam, he said, adding that AEONMALL Vietnam is also studying more shopping mall projects in Hanoi in the future.

Hue, for his part, said the project at the bus terminal will be submitted to the municipal Party Committee for consideration, so that the license certificate could be handed over to the company at the city’s investment promotion conference scheduled for late June and early July.

He suggested that the company should consider expanding investment into consumption credit and cashless payment to best serve local residents./.

Vietnam Airlines launches new routes from Vinh city to Central Highlands

National flag carrier Vietnam Airlines has launched two domestic flights connecting Vinh city in the central province of Nghe An where President Ho Chi Minh was born with cities in the Central Highlands to mark his 130th birthday (May 19).

The first flight from Vinh to Buon Ma Thuot in Dak Lak province departed at 16:05 on May 19 while the first flight from Vinh to Da Lat in Lam Dong province took off at 17:25.

There will be four flights per week on the Vinh – Buon Ma Thuot route on Mondays, Tuesdays, Thursdays and Saturdays and three on the Vinh – Da Lat route on Wednesdays, Fridays and Sundays.

To prevent the transmission of the COVID-19 pandemic, Vietnam Airlines conducts daily disinfection of all its operating aircraft as well as screening of passengers’ health at airports in line with regulations of the Civil Aviation Authority of Vietnam.

All passengers are required to wear face masks during their journeys, while crews are also equipped with face masks and gloves.

For more information about the new services, passengers can visit its official website at www.vietnamairlines.com, Facebook fanpage www.facebook/VietnamAirlines or call Customer Services hotline 1900 1100./.

WB advises Vietnam on maximising benefits of EVFTA

The World Bank (WB) has issued several recommendations to help Vietnam enhance its international integration and capitalise on the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to come into effect shortly.

In a recently-released report entitled “Vietnam: Deepening International Integration and Implementing the EVFTA”, the WB suggested the country perfect its legal framework and improve its implementation capability so as to fully reap the benefits.

The report estimated that full implementation of the EVFTA could increase Vietnam’s GDP by 2.4 percent, boost exports by 12 percent, and lift an additional 100,000 to 800,000 people out of poverty by 2030. These benefits are necessary for sustaining economic achievements while the country is dealing with the COVID-19 pandemic.

Benefits from its participation in new-generation FTAs such as the EVFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) would be even greater if Vietnam implemented a comprehensive economic and institutional reform programme, according to the WB. These reforms would give a boost to productivity, helping its GDP increase by a further 6.8 percent to 2030.

It also said Vietnam should promote its capacity to comply with rules of origin, sanitary and phytosanitary measures, and the State-investor dispute settlement mechanism.

The report called on the country to bolster links between domestic suppliers and foreign-invested enterprises that are lead firms in major global value chains. The EU’s strict food safety requirements also require that Vietnam improve sanitary and phytosanitary measures in a more transparent and consistent manner.

Thanks to the EVFTA, Vietnam will become a destination for a number of investors from Europe and around the world, and when the inflow of foreign investment surges, grievances, complaints, and lawsuits will also increase, the report noted, advising that Vietnam accelerate the development of a systemic investment response mechanism for resolving investor-State disputes.

The WB also suggested that to maximise the benefits, support policies for post-COVID-19 economic recovery should prioritise key sectors that account for the majority of Vietnam’s exports to Europe./.

Hai Phong international terminal welcomes super-heavy vessels

The Cang Hai Phong International Container Terminal Co., Ltd (TC-HICT) on May 19 berthed a super tonnage ship called ONE CONTRIBUTION.

TC-HICT had already successfully berthed a mother vessel, CSCL BOHAI SEA, of COSCO shipping, which directly connects Hai Phong and California, in late April.

With a capacity of 8,560 TEUs and a length of 316 metres, ONE CONTRIBUTION is one of 11 super-heavy vessels belonging to a joint venture between Taiwan (China)’s Yang Ming, Japan’s ONE, Germany’s LIoyd, and HMM from the Republic of Korea. It provides direct services from the northern and southern regions of Vietnam to the west coast of the US.

TC-HICT is a joint venture between the Tan Cang Saigon (Saigon Newport) Corporation, MOL Shipping and the Itochu Group from Japan, and Wan Hai Lines Ltd. from Taiwan.

Commencing operations on May 13, 2018, TC-HICT is the first deep-water port in the northern key economic region and boasts two 750-metre-long container terminals, a 13.4-metre-deep access channel, and a 660-metre turning basin.

The port can accommodate mother vessels of up to 12,000 TEUs and ensure a cargo throughput of 1.1 million TEUs each year.

TC-HICT currently provides eight direct service routes a week, including three trans-Pacific routes, two to India, and three intra-Asia routes for Vietnam’s exports and imports, shortening the lead time by three to five days compared to current services and substantially minimising logistics costs and risks./.

Thai Airways International’s restructuring plan approved

The Thai Cabinet on May 19 approved a plan to restructure Thai Airways International (THAI) following the Transport Ministry's proposal that it must undergo rehabilitation under the Bankruptcy Act.

Prime Minister Prayut Chan-o-cha said that the Government supports THAI’s efforts to continue operating, but refused to give details of the rehab plan.

"The Government has reviewed all dimensions. We have decided to petition for restructuring and not let Thai Airways go bankrupt. The airline will continue to operate," he told reporters at a news briefing.

The Cabinet has reportedly approved a plan by the Finance Ministry, which is the major shareholder in THAI, to sell 3 percent of its shares in the carrier to the second largest shareholder, the Vayupak Fund.

The ministry currently holds 51.03 percent of THAI shares, while the Vayupak Fund owns around 15 percent, and the Government Savings Bank (GSB) holds around 2.1 percent.

Once among the state-owned enterprises gaining profits in Thailand, THAI is now in debt of nearly 300 billion THB (nearly 10 billion USD). The national flag carrier reported a net loss of 2.11 billion THB in 2017, and this figure increased to 11.6 billion THB in 2018 and 12 billion THB in 2019. Due to the impact of the COVID-19 pandemic, THAI has been forced to cease operations until the end of May./.

Strategic oil reserve remains a priority for Philippines

Establishing a strategic petroleum reserve remains a top priority of the Philippines despite the difficulties in implementing the plan to do so, according to the Philippines’ Energy Secretary Alfonso Cusi.

He stressed that the plan is not aimed at meeting the Philippines’ overall fuel needs but will be exploited as a backup and preventive measure.

The Philippine National Oil Company (PNOC) will continue to accelerate the process of setting up a previously planned strategic petroleum reserve. It has been conducting a comprehensive feasibility study for the project after the Department of Energy (DOE) issued a document in December last year.

The PNOC is in the process of finalising the feasibility study and will give relevant and timely notice as requested, Cusi said.

The DOE previously said that technical and budgetary difficulties needed to be resolved in order to build a strategic petroleum stockpile./.