BUSINESS NEWS HEADLINES JAN. 21

Local wood industry should focus on design and branding

BUSINESS NEWS HEADLINES JAN. 21

The wood industry needs to focus on developing design, branding and distribution to achieve the goal of US$20 billion in export value by 2025, according to experts. 

Vietnamese wood processing enterprises have so far not invested in human resources for product research and design, the experts said. Therefore, the designs of wooden products are often monotonous, so their value is low.

Exported wooden products have been processed under contracts with foreign partners, so the products have low value and competitiveness on the global market. Few companies have their own designs and brands to sell directly to customers.

The issue of branding has become an obstacle for local enterprises to increase exports, while free trade agreements signed between Vietnam and foreign partners open more export markets for local products, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Local products without their own brands have lower competitiveness on the world market.

Nguyen Chanh Phuong, deputy chairman of the Handicrafts and Wood Industry Association of HCM City (HAWA), said the furniture demand on the global market has shown signs of slowing down, consumer trends have changed and productivity has continued to be low.

Therefore, local enterprises need to renew their production models to meet global demand, Phuong said. They should pay attention to technology in the processing industry, corporate operation, and design and trading of goods. New technologies can help manufacturers create flexible design and production systems.

Online trading is also a trend that has started to develop in the wooden product processing industry, changing local enterprises' measures of production and design, he said.

Local enterprises could increase the value of products by changing production models and developing brands.

Vietnam gained a total export value of $11.5 billion from wooden products in 2019, exceeding the industry’s own target of $10.5 billion, a 20 per cent increase compared to 2018, according to the Vietnam Timber and Forest Product Association (VTFPA).

Exports of wood products to the US saw a sharp rise in 2019, as well as robust growth to markets including Japan, the UK, Canada, Germany and the Netherlands, said the department of import-export under the Ministry of Industry and Trade.

The department has set a target of $12 billion for wood exports in 2020, a year-on-year increase of 20 per cent, saying the fast growth of large markets such as the US and the EU are major drivers for the industry.

RCEP expected to be signed in Vietnam this year

Countries involved in the Regional Comprehensive Economic Partnership (RCEP) have begun a legal review aimed at signing the trade pact this year in Vietnam, said Deputy Prime Minister and Foreign Minister Pham Binh Minh at a press conference held in Nha Trang city on January 17 to unveil the outcomes of the ASEAN Foreign Ministers' Meeting.

In response to questions by reporters regarding the possibility of signing the RCEP in 2020 – Vietnam’s ASEAN Chairmanship Year, Foreign Minister Binh Minh noted that during a meeting held on the sidelines of the 35th ASEAN summit in Bangkok last year, RCEP countries issued a joint statement.

Under the joint statement, 15 out of the 16 RCEP signatories have text-based negotiations of all 20 chapters and agreed on the essential issues such as market access while they have also begun a legal review to finalize the the megal deal in 2020 in Vietnam.

At present, all participating countries are conducting discussions on the issue. If the RCEP is signed with all 16 countries, the trade deal will serve to bring economic and trade benefits to all RCEP member states.

Deputy PM Binh Minh emphasised that during the process of conducting RCEP negotiations, Vietnam has always been active in co-operating with other countries and attempting to move towards a comprehensive and high-quality agreement that can ensure bespoke benefits for each of the participating nations.

First launched in 2012, the RCEP includes the 10 ASEAN members, in addition to China, the Republic of Korea, Japan, Australia, and New Zealand.

Once signed, the deal will create the globe’s largest free trade area, containing approximately 3.5 billion people and making up roughly 30 per cent of the world’s GDP.

Online Friday 2020 launched

The Department of E-commerce and Digital Economy under the Ministry of Industry and Trade announced on January 17 that the Online Friday 2020 program was deployed on January 3 through the website www.onlinefriday.vn and via Online Friday apps on both iOS and Android.

The organisers of the program state that the implementation of regular promotional activities will allow customers to enjoy a safe shopping experience and provide them with transparent information regarding product origin at exclusive preferential prices. 

Businesses that choose to participate in the program will receive additional support in terms of advertisements and delivery through television channels such as VTV3 and VTV6, digital marketing solution providers as well as Viettel Post and VnPost.

To participate in the program, businesses must produce and distribute genuine products with exclusive price programs.

Last year's Online Friday (December 6, 2019) gathered many e-commerce floors with 95,000 genuine products joining the program while 720 new businesses had signed up for the scheme, bringing the total number of the participating businesses to 3,840.

According to statistics from 50 businesses participating in the program, the number of orders of the whole market reached over 3 million, up 67% compared to 2018.

Multiple solutions put forth to develop fishing industry

The Law on Fisheries has been enforced and solutions to remove the European Commission’s "yellow card" have been aggressively implemented by localities.

Kien Giang province has the largest number of fishing vessels in Vietnam. Over the years, the  fishing industry has contributed greatly to  the local socio-economic development. 

Last year, more than 1,000 of the total 9,800 local fishing vessels were docked at ports because of unprofitable fishing. In Ca Mau, statistics show that by October the province had caught more than 150,000 tons of fisheries, about 7,000 tons of which were shrimp, 21% lower than the previous year. The result is mainly attributed to the exhaustion of seafood sources.

The enforcement of the Fisheries Law and the prevention of illegal fishing to remove the EC’s "yellow card" have impacted fishing activities. In Ca Mau province, for example, fishing vessels of 15 meters or longer must be equipped with tracking devices.

To address these difficulties, fishermen in the Mekong Delta provinces  have received support to reduce their fisheries  costs and increase export product values.

Nguyen Huu Tuat of My Thuyen Company said his company has been financed by the Ca Mau Industry and Trade Promotion Center to invest in a Japanese squid drier and roller model.

As a result, Tuat said, the company's dried squid product quality has improved, so have the design and production capacity, helping the company expand its export markets and gain greater profits.                  

“Dried cuttlefish products are in high demand so the company has invested in modern equipment to meet customer needs. We are expanding to markets in the Republic of Korea, Japan, and other Southeast Asian countries,” said Tuat.

Kien Giang’s Department of Agriculture and Rural Development said that the province is tightening  regulations under the Fisheries Law and promulgating the regulations on fishing management and protection of local aquatic resources. The regulations will include the restructuring of fishing operation.

At a recent working session with the provincial administration, Deputy Prime Minister Trinh Dinh Dung said “In the long-term, we must restructure the fisheries sector. In the maritime strategy, we will focus on restructuring toward increasing aquaculture and reducing  fishing exploitation. Coastal localities should increase the productivity of aquaculture.”

Private economic sector – important driver of economy

Just one month after the founding of the Democratic Republic of Vietnam, on October 13, 1945, President Ho Chi Minh wrote a letter to the industrial and business circles in the country, in which he stressed their great role in the cause of national construction. 

“While other segments of the nation are working to regain full independence for the country, the industrial and business circles should work to build a firm and prosperous economy and finance. The Government, the people and I myself will do our best to help the industrial and business circles in this construction cause,” he wrote.

The reality over the past more than 70 years has proven that the President’s letter remains relevant nowadays, demonstrating his sound strategic guideline and instruction to the cause of national construction, especially in the current trend of international economic integration.

President Ho Chi Minh’s thinking on the position and role of the industrial and business circles has been concretised in many guidelines and policies. The 6th National Party Congress (in December 1986) initiated the Doi Moi (Renewal) process with a policy on multiple economic sectors.

Later, the 7th National Party Congress, and especially the second plenum of the 7th –tenure Party Central Committee attached importance to the private economic sector and encouraged its development without any limitation on scale and areas of operation in fields not banned by the law.

The 8th National Party Congress (in July 1996) continued to affirm the long-term consistency of the multi-sectoral economy policy based on equal treatment for all economic sectors.

The issue of private economic sector was repeatedly tabled for discussion at the 9th, 10th, 11th and 12th National Party Congresses in order to complete the policies and mechanisms facilitating the sector’s development in all economic branches and fields, and turning it into an important driver of the national economy.

The position of the private economic sector has been affirmed not only in the Party’s documents but also in the 2013 Constitution. Article 51 of the constitution stipulates: “1. The Vietnamese economy is a socialist-oriented market economy with varied forms of ownership and economic sectors; the state economy plays the leading role. 

2. All economic sectors are important components of the national economy. Entities in different economic sectors are equal before law and shall cooperate and compete with one another in accordance with law. 

3. The State shall encourage and create the conditions for businesspeople, enterprises or other individuals or organisations to carry out investment, production or business activities; and develop economic branches in a sustainable manner in order to contribute to national construction. The legal property of individuals and organisations engaged in investment, production or business activities is protected by law and is not subjected to nationalisation.”

Continuing to affirm the position and role of the private economic sector in the socialist-oriented market economy, the 12th National Party Congress emphasized the completion of mechanisms and policies to encourage and facilitate the development of the private economic sector in most economic branches and fields, turning it into an important driver of the economy.

The 12th National Party Congress’s viewpoint that the private economic sector is an important driver of the national economy demonstrated a breakthrough in the Party’s perception compared to the previous period when the private economic sector was considered one of the drivers of the economy.

The fourth plenum of the 12th-tenure Party Central Committee continued to require boosting the private economic sector’s development in both quantity and quality, so that it really becomes an important driving force of the economy.

The fifth plenum of the 12th-tenure Party Central Committee issued thematic resolutions on perfecting institutions of the socialist-oriented market economy, and on restructuring, reforming and enhancing the efficiency of State-owned enterprises. In particular, the plenum issued Resolution 10/NQ-TW (June 2017) on developing the private economic sector into an important driving force of the socialist-oriented market economy. The resolution is said to be a drastic step in renewing the thinking on the private economic sector towards creating conditions for this sector to gain equal access to all opportunities and resources, particularly capital, land and natural resources.

The resolution defined the general goal of developing the private economic sector in a healthy, effective and sustainable manner, turning it into an important driving force of the socialist-oriented market economy, helping achieve rapid and sustainable socio-economic development, constant improve the people’s living conditions, realize social progress and equity, ensure national defence-security and early turn the country into an industrialised nation towards modernity.

To concretise the Party’s resolution, the Government issued Resolution 98-NQ/CP on October 3, 2019 on a plan of actions to implement Resolution 10/NQ-TW. The Government defined concrete tasks to develop the private economic sector, focusing on three major policies: creating favourable environment for the private economic sector to develop; assisting the sector in innovation, technology modernization, human resources development and enhancement of productivity; and enhancing efficiency and effectiveness of State management.

Over the past two years, with the spirit of accompanying enterprises, the entire political system has taken drastic actions to support the development of the private economic sector. Many new mechanisms and policies have been promulgated and solutions undertaken, all towards bettering the business environment and timely tackling difficulties and obstacles for the development of the private economic sector in accordance with the Party’s guideline and policies.

Vietnam attends fair on electrical equipment, energy in India

Over 40 enterprises, policy-making agencies and trade promotion organizations of Vietnam are participating in an electrical and energy equipment fair which opened on January 18 in India. 

Covering an area of 80,000 sq.m, the Elecrama 2020 attracts over 1,200 enterprises, agencies and organizations from 60 countries and territories worldwide exhibiting products, machines, equipment, technical solutions and services in the field of electricity and electronics.

Apart from displaying traditional products such as household electricity, power transmission technology and railway power, the fair also introduces equipment and technology related to new and renewable energy.

In the framework of the event, many conferences, workshops and forums introducing new technologies and future consumer trends, exchanges and business matching events have been also arranged to promote partnerships in this field.

Elecrama is a specialized fair sponsored by the Indian government. It is held every two years in rotation in major cities of India. This year's fair will last until January 22.

Vietnam aims for 9 bln USD worth of fishery exports in 2020

Vietnam has targeted to earn 9 billion USD from fishery exports in 2020, a year-on-year increase of 7 percent, according to the Directorate of Fisheries. 

Vietnam’s aquatic product export value reached 8.6 billion USD last year in 2019, down 2.3 percent from the previous year.

However, Vietnam’s seafood export value reached 3.2 billion USD last year, an 8-percent increase from a year earlier, the highest rate ever, according to the Vietnam Association of Seafood Exporters and Producers.

Tuna contributed 728 million USD to total exports, a year-on-year increase of 12 percent, while exports of other saltwater fish reached 1.65 billion USD, representing 19.4 percent of the total and surging 15.8 percent year on year.

The US, EU and ASEAN remained the largest buyers of Vietnamese tuna, importing 71 percent of the total last year compared to 67 percent in 2018. The US topped the markets with 46 percent.

Exports of seafood and fishery products to the EU plunged by about 11.5 percent in 2019, with tuna and octopus experiencing the biggest contractions with 11 percent and 20 percent, respectively.

From being the second largest importer of Vietnam’s aquatic products, the EU fell to fifth, after the US, Japan, the Republic of Korea, and China, as a consequence of the EU’s yellow card.

Fruit and vegetable sector eyes export target of US$5 billion this year

Despite failing to meet the targets for 2019, the fruit and vegetable sector is aiming to achieve an export target of US$5 billion during 2020 thanks to several advantages that will come with the signing of new Free Trade Agreements (FTAs).

Throughout 2019, Vietnam’s fruit and vegetable exports failed to achieve the expected results due to exports falling by 1 per cent to only US$3.8 billion in comparison to 2018. 

This decrease can be attributed to the fallout of the ongoing trade war between the United States and China, while the sector has struggled to take full advantage of the opportunities gained from newly signed FTAs. In addition, the existing inadequacies has made the industry fail to meet the set target of US$4 billion.

This year , the Vietnam Fruit and Vegetable Association is sanguine about the industry's export value which is expected to reach approximately US$5 billion with the Europe-Vietnam Free Trade Agreement (EVFTA) poised to come into force.

When the EVFTA takes full effect, the country’s export tariff on fruit and vegetable products being exported to Europe will instantly be slashed to zero per cent.

According to a statement issued by the Vietnam Fruit and Vegetable Association, several local vegetable and fruit products have started to make inroads into more demanding markets.

For example, mangoes have officially risen to become the nation’s sixth fresh fruit that is exported to the US market, following litchi, longan, rambutan, star apples, and dragon fruit.

Elsewhere, the Ministry of Agriculture, Forestry and Fisheries of Japan has sent a letter to the Plant Protection Department under Vietnam’s Ministry of Agriculture and Rural Development, indicating that there is a market in the Far East country for Vietnamese lychee.

The move is expected to open up a wealth of opportunities for the fruit and vegetable industry to enjoy major breakthroughs over the coming year.

Despite these positives, the sector must work to overcome shortcomings that still exist within production activities to meet international standards.  

In fact, the cultivation area under GlobalGAP standards makes up only 5 per cent of roughly 1 million hectares of land.

Therefore, in order to increase the output of fruit and vegetable exports to Europe, the agricultural sector must encourage residents to increase the cultivation area that is used for fruit and vegetables to fall in line with these standards.

PM Phuc has working session with economic advisory group

Prime Minister Nguyen Xuan Phuc on January 20 had a working session with his economic advisory group in Hanoi.

Head of the group Nguyen Duc Kien said last year, the group joined the World Bank, the Ho Chi Minh National Political Academny and the Vietnam Social Science Academy completed their research on the new growth model, provided consultation to the PM on measures to stabilise the macro economy, push up growth, take advantage of the movement of the foreign capital flow and enterprises in the US- China trade conflict, as well as on orientations to be included into the socio-economic development strategy.

In 2020, the group will analyse, assess and forecast the situation as well as the results of the implementation of the strategy so as to provide the Government leader with measures to achieve the goals set, especially those on stabilising the macro economy and accelerating growth, Kien said.

It will closely watch the domestic and foreign economic development to help the PM make directions in face of the arising issues, he stressed, adding the group will provide consultations on medium- and long-term issues.

Speaking highly of the group’s work, PM Phuc expressed his hope that the group will help him with measures to achieve a high growth in the context of the complex development of the world situation.

The group should continue providing new initiatives and ideas, and should closely follow the domestic and foreign economic situation so as to find out new issues. It should also have a long vision in close association with the 2021-2025 plan, the PM stressed, adding he is ready to listen to its ideas.

Tho Xuan Airport welcomes first wide-body aircraft

 

The second Bamboo Airways Boeing 787-9 Dreamliner aircraft carrying passengers from Ho Chi Minh City landed at Tho Xuan airport in the north central province of Thanh Hoa last weekend, making it the first wide-body aircraft to arrive at the airport.

In his speech, Mai Xuan Lien, Vice Chairman of the provincial People's Committee, praised the efforts of FLC Group and Bamboo Airways in using the aircraft on the HCM City-Thanh Hoa route via Tho Xuan Airport.

That does not only affirm that Tho Xuan airport has the capacity to welcome large aircraft, but also helps speed up the province's air transport industry, creating more opportunities for passengers, Lien said.

The Boeing 787-9 Dreamliner is reportedly the world’s most fuel-efficient aircraft, with advanced technologies applied to minimise weight and reduce the frequency of maintenance. It can carry about 294 passengers up to a distance of 13,950 km.

According to Bamboo Airways, this aircraft model plays a key role in the future operation of the airline’s medium and long-haul routes to Asia, Europe and America in 2020. The airline plans to receive 12 Boeing 787-9 Dreamliner aircraft by the end of this year.

The first one used on the carrier's Hanoi-HCM City route entered service in late December.

Currently, Bamboo Airways is the first private airline to operate wide-body aircraft. It is providing flights on 40 domestic and international routes.

The carrier has conducted more than 20,000 flights thus far, carrying three million passengers with an on-time performance rate (OTP) of 94 percent.

Private economic sector – important driver of economy

Just one month after the founding of the Democratic Republic of Vietnam, on October 13, 1945, President Ho Chi Minh wrote a letter to the industrial and business circles in the country, in which he stressed their great role in the cause of national construction.

“While other segments of the nation are working to regain full independence for the country, the industrial and business circles should work to build a firm and prosperous economy and finance. The Government, the people and I myself will do our best to help the industrial and business circles in this construction cause,” he wrote.

The reality over the past more than 70 years has proven that the President’s letter remains relevant nowadays, demonstrating his sound strategic guideline and instruction to the cause of national construction, especially in the current trend of international economic integration.

President Ho Chi Minh’s thinking on the position and role of the industrial and business circles has been concretised in many guidelines and policies. The 6th National Party Congress (in December 1986) initiated the Doi Moi (Renewal) process with a policy on multiple economic sectors.

Later, the 7th National Party Congress, and especially the second plenum of the 7th –tenure Party Central Committee attached importance to the private economic sector and encouraged its development without any limitation on scale and areas of operation in fields not banned by the law.

The 8th National Party Congress (in July 1996) continued to affirm the long-term consistency of the multi-sectoral economy policy based on equal treatment for all economic sectors.

The issue of private economic sector was repeatedly tabled for discussion at the 9th, 10th, 11th and 12th National Party Congresses in order to complete the policies and mechanisms facilitating the sector’s development in all economic branches and fields, and turning it into an important driver of the national economy.

The position of the private economic sector has been affirmed not only in the Party’s documents but also in the 2013 Constitution. Article 51 of the constitution stipulates: “1. The Vietnamese economy is a socialist-oriented market economy with varied forms of ownership and economic sectors; the state economy plays the leading role.

2. All economic sectors are important components of the national economy. Entities in different economic sectors are equal before law and shall cooperate and compete with one another in accordance with law.

3. The State shall encourage and create the conditions for businesspeople, enterprises or other individuals or organisations to carry out investment, production or business activities; and develop economic branches in a sustainable manner in order to contribute to national construction. The legal property of individuals and organisations engaged in investment, production or business activities is protected by law and is not subjected to nationalisation.”

Continuing to affirm the position and role of the private economic sector in the socialist-oriented market economy, the 12th National Party Congress emphasized the completion of mechanisms and policies to encourage and facilitate the development of the private economic sector in most economic branches and fields, turning it into an important driver of the economy.

The 12th National Party Congress’s viewpoint that the private economic sector is an important driver of the national economy demonstrated a breakthrough in the Party’s perception compared to the previous period when the private economic sector was considered one of the drivers of the economy.

The fourth plenum of the 12th-tenure Party Central Committee continued to require boosting the private economic sector’s development in both quantity and quality, so that it really becomes an important driving force of the economy.

The fifth plenum of the 12th-tenure Party Central Committee issued thematic resolutions on perfecting institutions of the socialist-oriented market economy, and on restructuring, reforming and enhancing the efficiency of State-owned enterprises. In particular, the plenum issued Resolution 10/NQ-TW (June 2017) on developing the private economic sector into an important driving force of the socialist-oriented market economy. The resolution is said to be a drastic step in renewing the thinking on the private economic sector towards creating conditions for this sector to gain equal access to all opportunities and resources, particularly capital, land and natural resources.

The resolution defined the general goal of developing the private economic sector in a healthy, effective and sustainable manner, turning it into an important driving force of the socialist-oriented market economy, helping achieve rapid and sustainable socio-economic development, constant improve the people’s living conditions, realize social progress and equity, ensure national defence-security and early turn the country into an industrialised nation towards modernity.

To concretise the Party’s resolution, the Government issued Resolution 98-NQ/CP on October 3, 2019 on a plan of actions to implement Resolution 10/NQ-TW. The Government defined concrete tasks to develop the private economic sector, focusing on three major policies: creating favourable environment for the private economic sector to develop; assisting the sector in innovation, technology modernization, human resources development and enhancement of productivity; and enhancing efficiency and effectiveness of State management.

Over the past two years, with the spirit of accompanying enterprises, the entire political system has taken drastic actions to support the development of the private economic sector. Many new mechanisms and policies have been promulgated and solutions undertaken, all towards bettering the business environment and timely tackling difficulties and obstacles for the development of the private economic sector in accordance with the Party’s guideline and policies.

Maintaining exports critical to cement industry this year

Maintaining exports would be critical for the cement industry amid rising production output and anticipated sluggish domestic sales this year.

According to Nguyen Quang Cung, President of the Viet Nam Cement Association, two new cement projects would go into operation this year, one in Tan Thang Commune, the central province of Nghe An with a capacity of 2-2.5 million tonnes per year, and one in Bim Son Commune, Thanh Hoa Province with a capacity of 4.6 million tonnes.

This would give the domestic cement industry total production capacity of more than 100 million tonnes, while local demand was estimated at around 70 million tonnes.

“Maintaining exports would be critical for the cement industry this year,” Cung said.

The Ministry of Construction forecast that cement sales would increase by around five per cent to reach 103 million tonnes in 2020, around 70 million tonnes of which would be sold to the domestic market.

According to Cung, domestic cement sales were anticipated to remain sluggish this year due to stagnant construction of infrastructure projects and the slowdown of the property market.

The association also predicted a five per cent growth rate for the cement industry in 2020.

Regarding exports, Cung said that cement export volume would be around 34 million tonnes this year but fall to 25 million tonnes in 2021.

“The lower cement export forecast in 2021 is based on expectation that domestic sales would increase,” Cung said, adding that reducing cement exports would be important in the long run because of the Government’s policy not to encourage exports of fully processed resources.

To cope with increasing pressure, Cung said cement producers should apply advanced technologies in production to enhance quality and added value while reducing environmental production, which would significantly help boost competitiveness.

Vietnamese cement was also facing rising pressure in international markets due to increasing production in China and Thailand, according to the ministry.

The ministry urged domestic firms to monitor the cement market and adjust their production plans accordingly to keep prices from falling. In addition, cement firms should also work out long-term development strategies.

FiinGroup predicted that cement demand would increase by around five per cent per year till 2030. An excess of supply over demand would continue until a balance was reached in 2028, the company forecast.

Statistics from the Import-Export Department under the Ministry of Industry and Trade showed that cement sales reached more than 99 million tonnes in 2019, up two per cent over 2018. Domestic sales accounted for 66 million tonnes.

Nearly 34 million tonnes were exported last year for nearly US$1.4 billion, $148 million higher than in 2018 and a record high. It was the second consecutive year Viet Nam saw cement exports to hit a new record.

Vietnam increases coal, ore and mineral imports

Vietnam had a trade deficit of more than 1 billion USD with Australia last year, one year after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect. 

Of which, coal was the imported commodity with the highest value of 1.45 billion USD in the first 11 months of last year, rocketing by 96.8 percent over the previous year, accounting for 35 percent of total import turnover of goods from this market.

Ore and minerals ranked second, valued at 517 million USD, accounting for 12.5 percent of the total import turnover from Australia.

Metal products ranked third in turnover, followed by wheat and iron and steel scrap.

Two-way trade between Vietnam and Australia has changed significantly a year after the CPTPP came into effect, said the Import-Export Department under the Ministry of Industry and Trade.

Accordingly, the trade balance has shifted from a trade surplus to a trade deficit.

Vietnam had a trade surplus with Australia of 215 million USD in 2018.

Two-way trade reached nearly 8.1 billion USD last year.

Vietnam’s export turnover to Australia was 3.5 billion USD last year, down sharply from nearly 4 billion USD in 2018.

On the opposite side, Vietnam’s imports from Australia increased to 4.56 billion USD from 3.75 billion USD in 2018.

PV Power strives to guarantee inputs for thermal power plants

PetroVietnam Power Corporation (PV Power) will take drastic measures aimed to allocate inputs like gas and coal for its thermal power plants during 2020.

This target was underlined by PV Power officials at a meeting held on January 16 to review its performance to media in Hanoi. 

PV Power, an arm of the state-run Vietnam Oil and Gas Group, focuses on ensuring efficient operation of its power plants in order to reach the business targets set for this year.

This power firm looks to gain the total electricity ouput of 21.6 billion kWh during 2020 with the total revenue reaching VND36.793 trillion (US$1.58 billion) and the post-tax profits at VND2.154 trillion (US$92.8 million).

It has planned to tackle thoroughly the ash emitted by Vung Ang 1 coal-fired power plant in the central province of Ha Tinh while hastening the implementation of Nhon Trach 3 and Nhon Trach 4 liquefied natural gas – fired power projects and new ones.

Last year, PV Power made VND35.884 trillion ($1.54 billion) in revenues and earned VND3.121 trillion (US$134.46 million) in pre-tax profits.

The power developer also managed to shift its listing from the Unlisted Public Company Market (UPCoM) on the Hanoi Stock Exchange to the Ho Chi Minh Stock Exchange while being named as one of the top 50 best listed firms 2019 in Vietnam honoured by Forbes Vietnam.

PV Power, with the stock code POW, has enjoyed a strong performance and increased financial capacity in the wake of its initial public offering (IPO) which took place in January 2018.

Global Finance names VietinBank as Best Trade Finance Provider in Vietnam

The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has been honoured by the Global Finance magazine of the United States as the Best Trade Finance Provider in Vietnam for 2020. 

The award marks the third consecutive year VietinBank has been named the only Vietnamese bank to be honoured by the publication.

A ceremony to announce the winner of the award was held as part of the Europe Bank to Bank Forum which was organised by the Bankers Association for Finance and Trade in Frankfurt, Germany, on January 15.

In attendance at the forum were over 300 major banks, and 130 financial service providers from 95 countries globally.

Last year VietinBank became the first domestic bank to develop an Internet Banking Trade Finance Portal suitable for use by corporate customers which allows them to both send and receive documents, in addition to viewing transactions online.

The portal benefits customers in terms of saving time and cost due to the ability to perform transactions anywhere and at any time.

Recent years have seen VietinBank rack up a number of prestigious awards, winning The Best Trade Finance Bank award of The Asian Banker in 2017, 2018, and 2019. Moreover, the bank also received awards from a number of reputable magazines and banks globally, including the International Finance Corporation.

Global Finance, a US-based magazine is a world leader on reporting on the world of finance and has a history of 30 years with a global readership of 50,000. Some of the publication’s readers of Global Finance include Chairmen of various Board of Directors, CEOs, CFOs, economists, and financial analysts from 191 countries.

The awards held by Global Finance are highly valued and lauded by the global financial community, with the results being based on a rigorous and transparent evaluation conducted by leading experts in the banking-financial institution society.

Majority of groups, corporations fulfil 2019 targets

A majority of groups and corporations fulfilled 2019 targets assigned by the Committee for Management of State Capital at Enterprises (CMSC), heard a conference in Hanoi on January 16.

CMSC Vice Chairman Ho Sy Hung said the total revenue of 19 groups and corporations surpassed 1.48 quadrillion VND (64.2 billion USD) in 2019, up 6.4 percent year-on-year. Their before-tax profit went up 28 percent to over 99.8 trillion VND.

Their revenue to the State budget surpassed 221 trillion VND, up 17.6 percent from 2018.

The CMSC pointed out that several works are less efficient, causing losses of State capital and assets, while restructuring, equitisation and divestment in State-owned enterprises (SOEs) remain slow.

Speaking at the event, Prime Minister Nguyen Xuan Phuc asked the enterprises to perform better in terms of revenue and governance, as well as promptly deal with existing difficulties.

CMSC Nguyen Hoang Anh said the committee will continue suggesting amendments and supplements to laws to facilitate restructuring, equitisation and divestment; strengthen managerial staff and representatives of State capital at SOEs, as well as rotate and deploy qualified personnel between the CMSC and SOEs.

PM urges better coordination in managing State capital

Prime Minister Nguyen Xuan Phuc urged better coordination between the Commission for the Management of State Capital at Enterprises (CMSC) and ministries, sectors and corporations at a review conference of the CMSC on January 16. 

Speaking in conclusion of the conference, the PM said the weak coordination is a reason for the delay in performing a number of important tasks.

He noted that though starting operations for just over one year, the commission has focused on instructing State-own groups and corporations in performing production and business tasks in 2019, resulting in higher revenues and profits, and State capital kept intact and expanded.

The CMSC also received 12 loss-making projects from the Ministry of Industry and Trade and proposed solutions to those projects.

Regarding problems facing the commission, PM Phuc pointed to the delay in some important tasks, such as the approval of managerial positions in some groups and corporation, equitisation and capital divestment, and approval of financial assessment reports. Some groups and corporations failed to fulfill their assigned targets in profit, revenue and contribution to the State budget.

In particular, the PM noted that all groups and corporations have not fulfilled the plans on development investment.

It is the responsibility of ministries, sectors and localities to cooperate with the CMSC, he said, urging the commission to report to him on ministries, sectors and localities which are not cooperative.

The PM again stressed the importance of State-owned enterprises to national development, and the need to continue restructuring and reforming SOEs in order to keep their key role in the economy.

The commission reported that the 19 groups and corporations in which it holds the State capital generated combined revenues of nearly 1,500 trillion VND (64.7 billion USD) in 2019, up nearly 6.4 percent from 2018. Their combined pre-tax profit came to nearly 100 trillion VND, up 28 percent from the yearly plan. The groups and corporations contributed a total 221 trillion VND to the State budget.

Da Nang airport serves 15.5 million passengers in 2019

Da Nang International Airport served a total of 99,000 domestic and international flight arrivals, carrying 15.5 million passengers and about 40,000 tonnes of goods and parcels in total last year, according to Danang Today. 

Also in 2019, five international airlines and a national flag air carrier launched 20 new routes connecting Da Nang with other destinations at both home and abroad.

To date, five domestic airlines have offered new nonstop services connecting Da Nang with 10 destinations nationwide. Meanwhile, 33 foreign and national flag air carriers operated international routes between Da Nang and 48 destinations worldwide.

In 2020, new air routes from Da Nang to Australia, Russia, India and Japan will be launched.

 
 

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