Hanoi’s Gross Regional Domestic Products (GRDP) was estimated to increase by 6.69 percent in the fourth quarter of 2021, and by 2.92 percent in the whole year, the municipal Department of Planning and Investment reported.

According to director of the department Do Anh Tuan, total State budget collection of the city in 2021 almost hit 263 trillion VND, 11.7 percent higher than the amount assigned by the Government, and equivalent to 91.5 percent of last year's revenue.

As many as 160.2 trillion VND were channeled into development investment in the fourth quarter, up 88 percent compared to the previous quarter and 9.9 percent year-on-year, bringing the year's total to over 410 trillion VND, down 0.8 percent.

As of December 27, nearly 25.4 trillion VND of public investment sourced from the State budget was disbursed, equal to 60.9 percent of the plan assigned by the Prime Minister, the department said.

Reference exchange rate kept unchanged

The State Bank of Vietnam set the daily reference exchange rate at 23,145 VND/USD on December 31, unchanged from the previous day.

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,840 VND/USD and the floor rate 22,450 VND/USD.

Binh Duong posts 6.8 billion USD in trade surplus

With its import and export values growing 14.7 and 13.5 percent year-on-year to hit 24.6 and 31.5 billion USD in 2021, respectively, the southern province of Binh Duong recorded a trade surplus at 6.8 billion USD.

According to data released by the provincial Statistics Office on December 30, the province’s gross regional domestic product (GRDP) increased by 2.62 percent against last year, while its index of industrial production (IIP) and total goods retail and consumption services revenue picked up 4.5 percent and 3.3 percent annually, respectively.

During the year, Binh Duong contributed 61.2 trillion VND (2.68 billion USD) to the state budget, while its total local budget expenditure exceeded 32.2 trillion VND.

The local average annual GRDP per capita reached 152.2 million VND, an increase of 1.2 million VND compared to 2020.

Loc Troi Group ships over 4,000 tonnes of rice to Europe

Loc Troi Group (LTG) has announced that it completed the export of final batch of rice this year to Europe, including 4,170 tonnes of jasmine and white rice.

It was also the first batch shipped in the form of bulk carrier to save transport cost amid the pandemic.

LTG is now the only agri-business capable of farming rice on a large scale of at least 1,000ha via cooperatives with the instruction of agricultural engineers and optimal farming process from seed selection to harvest and transport, ensuring the supply of 1 million tonnes of rice to the market each year.

This year, LTG shipped over 80,000 tonnes of rice to the EU, the UK, Africa, Australia, the Middle East and Asia, earning over 1 trillion VND (43.47 million USD), or nearly 24 percent of the group's total revenue.

Vietnam's 2021 CPI lowest in five years: GSO

Vietnam's Consumer Price Index edged up 1.84 percent year-on-year in 2021, the lowest ever recorded since 2016, according to the General Statistics Office.

The CPI picked up compared to 2020 largely due to a 31.7 percent surge in fuel prices this year which made up a 1.14 percentage point increase in the overall CPI.

The CPI hike was also driven by domestic retail prices of gas which have been revised up nine times throughout the year.

Rice, construction materials and education service prices increased 5.79 percent, 7.03 percent and 1.87 percent, respectively, against last year. Meanwhile, prices of food dropped 0.54 percent year-on-year.

Export-import turnover tops 668 billion USD

Export-import turnover hit 668.5 billion USD this year, 123 billion USD higher than the previous year and posting the highest growth ever.

The General Department of Vietnam Customs said although various localities applied social distancing measures to curb the spread of COVID-19, export-import turnover of goods handled by customs offices of 19 southern provinces and cities expanded 16 percent against the previous year.

Ho Chi Minh City's customs office in particular handled more than 117 billion USD worth of goods, and Binh Duong office tackled over 47 billion USD.

State budget collection from imports and exports posted a year-on-year expansion of 19.2 percent.

SSC warns investors to beware of fraud in online groups

More and more fraud is occurring on various online platforms by investing groups, deceiving investors.

The State Securities Commission (SSC) thus urges investors to be vigilant at all times and not fall for scammers.

They are recommended to check official sources for verified information any time they exchange securities-related information with other persons.

They should also arm themselves with knowledge, notably the understanding of securities, corporate finance and legal regulations, to avoid being misinformed.

Japan’s Hokuriku enterprises want to invest in Vietnam

Enterprises in Japan’s Hokuriku region highly valued Vietnam’s business environment and pinned high hopes on the prospect of bilateral cooperation in the future, said Chairman of the Hokuriku Association of Investment Promotion with Vietnam Mitsuru Mitani during a conference held to review its performance in 2021.

Hokuriku enterprises are now investing in 96 projects in Vietnam. In a survey polling members of the Hokuriku Economic Federation in October 2019, 21.7 percent of respondents said they wanted to invest in Vietnam, higher than other countries such as India (10.8 percent), Thailand (8.3 percent), and China (7 percent). In another survey in October 2021, 26.8 percent of enterprises expected to do business in Vietnam compared to 20.4 percent for China, 16.9 percent for India and 14.1 percent for Indonesia.

More legal aid needed for SMEs: Experts

More legal aid needs to be provided to small and medium-sized enterprises (SMEs) to help them quickly recover business, production and become stronger after the COVID-19 pandemic, legal experts have said.

The comments were made during a conference held in Hanoi last week to discuss solutions to enhance legal aid for SMEs. The programme aims to promote awareness and legal compliance, and reduce legal risks and obstacles of SMEs, which account for the majority of the country’s businesses.

Under the programme, ministries, agencies and localities have to update policies and legal assistance programmes for SMEs, collect feedback regarding legal obstacles, and report to authorities to refine legal regulations.

Between 2021-2025, the programme aims to utilise the achievements of Industry 4.0 in providing legal aid for SMEs; direct legal aid activities for ministries, sectors and localities to apply legal knowledge to SMEs; and promote awareness and legal compliance while reducing legal risks and obstacles.

The programme will enhance SMEs' roles in improving the legal framework toward a better business climate, competitiveness and law enforcement.

Over 1,600 more businesses enter agricultural sector in 2021

A total of 1,640 agri-businesses were newly established and resumed operation in 2021, raising the number of firms in the sector to over 14,400, according to the Ministry of Agriculture and Rural Development.

The ministry said agribusinesses are growing strongly in Vietnam, becoming the core of the agricultural value chain. There are a number of major corporations expanding into hi-tech agriculture, such as Nafoods, TH, Dabaco Vietnam, Masan, Lavifood, Doveco, and Bien Dong Trading and Investment JSC.

This year, 1,250 new agricultural cooperatives were established. Vietnam now has 19,100 cooperatives, including 1,980 hi-tech agricultural cooperatives; 78 cooperative unions; over 30,000 cooperative groups; and nearly 19,700 farms.

The country also has 12 hi-tech agricultural zones; and 51 hi-tech agribusinesses, 23 of which have been recognised by the Ministry of Agriculture and Rural Development.

3.74 billion USD of FDI poured into HCM City in 2021

The inflow of foreign direct investment (FDI) into Ho Chi Minh City hit 3.74 billion USD in 2021, down 14.2 percent year-on-year, according to the municipal Department of Planning and Investment. However, the investment capital poured into new and adjusted projects in 2021 still remained high compared to the previous year. 

Of the total, 686.6 million USD went to 633 new projects, down 33.4 percent in the number of new projects, and up 7.7 percent in the capital compared to the previous year. Meanwhile, 1.125 billion USD was added to 178 existing projects.

The average registered capital of a project was 1.08 million USD, primarily in the fields of real estate business (214.1 million USD), information and communications (206.6 million USD), and commerce (123.2 million USD). 

Countries and territories posting high adjusted investments included Japan (281 million USD), Singapore (263 million USD), and the US (237 million USD).

New firms up 70.4 percent in Q4

The number of newly-established firms in the last quarter of this year reached 31,400 with total registered capital amounting to 415.3 trillion VND (18.21 billion USD), the General Statistics Office (GSO) has said.

The figures represent increases of 70.4 percent in the number of firms and 64.1 percent in capital as compared with the previous quarter.

The country counted 116,800 new firms in the year with combined investments of over 1.6 quadrillion VND and nearly 854,000 labourers, down 13.4 percent in enterprises, 27.9 percent in capital and 18.1 percent in workforce.

The average capital of new enterprises in 2021 was 13.8 billion VND, down 16.8 percent from a year earlier. In 2021, the number of enterprises returning to business was 43,100, down 2.2 percent year on year.

HCM City’s CPI goes up 2.36 percent this year

This year’s average consumer price index (CPI) in Ho Chi Minh City grew 2.36 percent from 2020, the municipal Statistics Office reported on December 30.

The CPI in December fell 0.3 percent month on month but still rose 1.24 percent from the same period last year.

During the month, prices of food and catering services declined 0.25 percent from November while those of housing, electricity, water, fuel, and construction materials down 0.38 percent. The transport category also saw a drop of 1.62 percent in prices, the office noted.

It said that in 2021, prices of some groups of commodities changed as a result of the complicated COVID-19 situation and the months-long social distancing, which led to the surge in demand for grain food and foodstuff in certain points of time.

Vietnam continues to dominate global pepper exports despite COVID-19

Vietnam raked in approximately US$950 million from exporting 260,000 tonnes of pepper this year, becoming the world’s largest supplier of pepper despite facing challenges relating to the COVID-19 pandemic, according to data given by the Vietnam Pepper Association (VPA).

Despite enduring an overall decline of 25% in pepper output, the country continues to maintain its dominant position as part of the global pepper industry, accounting for over 60% of global pepper exports.

During the 11-month period, the nation grossed US$867.2 million from exporting 245,975 tonnes of pepper, a drop of 7% in volume, but up 43.8% in turnover against the same period from last year.

The United States remains the largest import market for Vietnamese peppers, reaching 55,602 tonnes throughout the reviewed period, up 9.6%, followed by China, India, Pakistan, Egypt, Germany, the Netherlands, the UK, France, Russia, Spain, and Canada.

Less than half of industrial businesses in HCMC optimistic about Q1 2022

Less than half (43.6%) of industrial businesses in HCMC are optimistic about their business situation in the first quarter of 2022, according to a report of the HCMC Statistics Department on the city’s socioeconomic development.

Meanwhile, 28.1% expected their business situation to remain stable and the remainder felt their condition would worsen.

Some 41.7% of industrial businesses in the city expected to see an increase in new orders in Q1 2022, while 24.3% of businesses said they plan to scale down their workforce.

Regarding production cost, 33.3% forecast that it would increase, while 51.6% expected that it would stay stable and only 15.2% predicted a decrease in production cost.

HCMC’s economy has recovered after social distancing measures were relaxed, but the recovery remains weak.

Some 48.4% of the firms said their business situation improved in the fourth quarter of 2021 compared with the third quarter, while 19.3% said their condition was stable and 32.3% saw their situation worsen.

Nearly 40% of industrial businesses are facing financial hardships. Besides, 23.1% said interest rates were high and 7.6% had limited access to capital.

Number of Hanoi-based firms completing dissolution up 22%

The number of firms completing procedures for business closure in Hanoi City this year rose by 22% against last year at 3,075, while over 13,140 companies suspended their operations, up 29% compared with last year’s figure.

Besides, more than 3,530 firms halted their operations pending dissolution in 2021, up 20% year-on-year, Do Anh Tuan, director of the Hanoi Department of Planning and Investment, told a conference held by the Hanoi government on December 29.

The city saw nearly 11,000 firms return to the market in 2021, soaring by 80% against the year-ago figure, while over 24,000 firms were newly established, with total pledged capital of VND345 trillion, down 9% and 16% year-on-year, respectively.

Hanoi’s gross regional domestic product in 2021 inched up 2.92% year-on-year, well below the 7.5% target, Tuan said.

As of December 27, the city’s budget revenue had inched up 4.6% against last year at VND261.8 trillion, exceeding the target set by the Government by 11% and the target set by the city by 4%.

HCMC’s 2021 total state budget revenue increases three percent

According to a recent report released by the HCMC Statistical Office on December 29, the city’s total state budget revenue in 2021 increased by three percent compared to the same period last year.

The total state budget balancing revenues of this year reached VND383, 703 billion (US$16.8 billion), exceeding 5.2 percent of the estimates. The state revenue came from the sources of real estate, finance banking, securities and tax exemption policies to support businesses and people affected by Covid-19 pandemic.

From the beginning of this year until December 15, the city saw 30,829 newly registered enterprises with total registered capital of VND517, 695 billion (US$22.7 billion), presenting a decrease in the number of business registration certificate by 23.5 percent and amount of invested capital by 53.5 percent compared with the same period in 2020.

As of December 20, HCMC has granted investment registration certificates to 633 projects with the total foreign investment capital of US$686.6 million, showing a decline in the number of investment registration certificates by 33.4 percent and an increase in the newly registered capital by 7.7 percent compared to the same period last year.

Source: VIR/VNA/SGT/VNS/VOV/VGP/VNN

VIETNAM BUSINESS NEWS DECEMBER 30

Local airlines put tickets on sale for international flights