HCM City’s third I-Star Award for creativity, innovation and business start-ups is open to entries until August 31.

The annual contest was announced by the city Department of Science and Technology on Monday, and it will honour outstanding start-up achievements by individuals and organisations.

The awards are divided into four categories: business start-ups showing creativity and economic efficiency; organisations or individuals offering solutions that benefit the community; media works that have great impacts on the community; and investors, consulting experts, and incubator organisations that support innovation and start-ups.

There will be three prizes in each category worth VNĐ50 million (US$2,150) each.

A jury of experts and online votes from the community will decide the winners.

Individuals and organisations can register online until August 31 by filling out the form at www.doimoisangtao.vn/giaithuong2020

The organisers encourage participants to attach articles, photos, videos, and links related to their work.

People can vote on the website until the end of September.

More information is available at 2839320121, www.doimoisangtao.vn/giaithuong2020 and giaithuong@doimoisangtao.vn.

The awards ceremony will be held on the sidelines of the city’s Innovation, Startup and Entrepreneurship Week, which is expected to be organised at the end of this year.

The contest attracted nearly 300 entries last year.

Non-stop toll collection on BOT highways stutters

All build-operate-transfer (BOT) highways across Việt Nam are scheduled to use electronic toll collection systems by the end of this year, but many seem set to fall short of the goal.

In 2017, the Government assigned the Ministry of Transport to run a project on automated non-stop toll collection at all the BOT highways it oversees.

The two-phased project aimed to deal with 77 toll stations and it was targeted that by the end of last year, all stations would use electronic toll collection (ETC). However, the deadline was missed.

Now, only 40 out of 44 toll stations in the first phase of the project have installed and used ETC. In the first phase, the project was implemented by Việt Nam Electronic Toll Collection Company (VETC), dealing with 44 stations including 26 stations on National Highway No 1 and on part of HCM Highway in the Central Highlands region and another 18 stations on national highways and expressway across the country.

In the second phase, after opening the bidding, the Ministry of Transport chose Viettel and some other companies to implement the project which would deal with 33 stations.

According to the ministry, in the first phase of the project, VETC lacked funding to invest in ETC systems for toll stations. In the second phase, the difficulty was forming a joint venture company with agreement from all involved parties.

To solve the difficulty, Viettel and involved companies negotiated and agreed to form a joint venture company with 86 per cent of its capital contributed by Viettel and the remaining 14 per cent of its capital from partners.

Nguyễn Viết Huy, vice head of the Public-Private Partnership Department under the Ministry of Transport, said the joint venture company led by Viettel was a necessary move allowing them to join the automated non-stop toll collection project.

“As Viettel is one of the leading information and technology companies in Việt Nam, it’s reasonable to believe the non-stop toll collection project will meet its deadline this year,” he said.

Viet Nam’s garment exports down in two months

Viet Nam saw a year on year reduction of 3.5 per cent in textile and garment exports of the first two months this year to US$5.3 billion due to the impact of the novel coronavirus (COVID-19) outbreak.

According to the Viet Nam National Textile and Garment Group (Vinatex), of which, yarn exports fell 16 per cent to $512 million while clothes dropped 2.3 per cent to $4.2 billion.

The group stated that the supply of input materials for the domestic garment industry had been resumed and would be sufficient for the manufacturing demand in March and April.

However, the sector is facing the risk of reduced global demand for garment products due to the COVID-19 outbreak, which is expected to affect orders and prices in the coming months.

Vinatex managing director Cao Huu Hieu said this pandemic had caused a lot of difficulty for the domestic textile and garment industry’s production and business but it would be an opportunity for the textile and garment enterprises to look back themselves and restructure their production and supply chains. That would avoid dependence of input material on China as before. The textile industry sources a significant proportion of feedstock from China.

With the current situation, the group had requested its member companies find new resources of input materials, dealing with the shortage of the materials at present, he said.

Meanwhile, according to Tran Viet, general director of the Dong Xuan Knitting Company, the company has organised production chains from fabric production to finished products and exported 90 per cent of its products to Japan. Therefore, the pandemic had not created a great impact on the company.

This pandemic had even created more opportunities for it to promote knitting fabric supply for other companies and mask production to meet increasing demand on this product, he said.

Nguyen Van Thoi, chairman of TNG Investment and Trading Joint Stock Company, said TNG had enough input materials to ensure production until the second quarter of this year. It was preparing materials for production in the third quarter, reported the Dau tu (Investment) newspaper.

Thoi said this year, many traditional customers of the company had increased their orders for it, including orders of Decathlon (France) up by 29 per cent year on year and Spormaster (Russia) up by 73 per cent.

Though having the pandemic, in the first two months this year, TNG's revenue still reached nearly VND560 billion, a year on year increase of 4 per cent, he said. The company expects this year to gain revenue growth of 10 per cent, or VND4.9 trillion.

GVR shares debut on HOSE

Vietnam Rubber Group today, March 17 started trading four billion shares on the Hochiminh Stock Exchange (HOSE) under the code GVR at the reference price of VND11,570 per share.

The GVR shares had earlier been traded on the Market for Unlisted Public Companies (UPCoM).

The move is expected to open a wider door for the firm to attract more investors and help solidify its position on the local market.

The main business operations of GVR, a large-scale State-run enterprise, are to grow and process rubber, produce various products from rubber, process wood products, develop industrial park infrastructure and invest in the hi-tech agricultural field.

In 2019, the group reported its consolidated revenue at an estimated VND23.1 trillion, up 0.64% against 2018, and its after-tax profit rose by 19.7% at VND3.9 trillion.

The group looks to obtain over VND24.6 trillion in consolidated revenue and VND4 trillion in after-tax profit this year.

MSB completes all three pillars of Basel II

The Vietnam Maritime Commercial Joint Stock Bank (MSB) said it has completed the second pillar of Basel II standards that is supervisory review nearly one year ahead of the schedule set by the State Bank of Vietnam.

Together with the realisation of the first and third pillars of Basel II - minimum capital requirement and market discipline – in July 2019, MSB has become one of the first banks to complete all of the three pillars.

Basel II is the second edition of the Basel Accords, which are recommendations on banking law and regulations issued by the Basel Committee on banking supervision. It aims to enhance competition and transparency in the banking system and make banks more resistant to market changes.

Under the second pillar, a bank must have an Internal Capital Adequacy Assessment Process (ICAAP) in place. A bank must conduct periodic internal capital adequacy assessments in accordance with their risk profile and determine a strategy for maintaining the necessary capital level.

To meet the standards, the MSB has adopted a risk governance model based on big data analysis using artificial intelligence to seek and assess potential clients for credit card products. Accordingly, clients could apply online for credit cards within 24 working hours without submitting income statement or visiting its branches or transaction offices.

Nguyen Hoang Linh, MSB Acting General Director, said the early completion of the three pillars of Basel II will create a premise and momentum for the bank to gear towards higher international risk governance standards like Basel III, while helping the bank operate in a transparent, safe and sustainable way.

The bank’s net profit before provisioning of MSB in 2019 exceeded 2.2 trillion VND (94.3 million USD), up 23.5 percent over 2018. Its total assets reached nearly 157 trillion VND, up 14 percent year-on-year and surpassing its target by 3 percent.

The bank’s total pre-tax profit was 1.28 trillion VND, up more than 20 percent over 2018./.

Vietnam boasts opportunities to expand exports to Sweden

It is forecast that Vietnam will have great opportunities to export more types of products to Sweden when the European Union-Vietnam Free Trade Agreement (EVFTA) takes effect.

Analyzing 25 groups of products that Sweden imported the most in the past five years shows there is great potential for Vietnam to ship textiles, footwear, farm produce and food, handicrafts, and chemicals to the Swedish market.

However, the Vietnamese Trade Office in Sweden said the export turnover and market share of these items are still quite modest.

Market surveys said that Swedish people spend a large amount of money on textile products. They also have great demand for agricultural products such as rice, tea, coffee, cocoa, fruits and vegetables.

The office said Vietnamese exporters need to meet regulations on quality and packaging standards required by Swedish distributors if they want to sell their products in the country’s supermarkets.

In 2019, two-way trade between Vietnam and Sweden hit 1.56 billion USD, with Vietnam’s export valued at 1.2 billion USD, up 2.4 percent year-on-year.

Vietnam is ranked 24th among the biggest exporters to Sweden./

Bac Giang looks to attract 1 billion USD of investment in 2020

The northern province of Bac Giang is striving to attract 1 billion USD of new and additional investment capital to both FDI and domestically invested projects in 2020, said Director of the provincial Department of Planning and Investment Trinh Huu Thang.

In terms of industry, the province prioritises attracting investment to the Quang Chau and Hoa Phu industrial parks, along with industrial clusters in Bac Giang city and the districts of Viet Yen, Yen Dung, Luc Nam, Lang Giang, Tan Yen and Hiep Hoa.

It is calling for more projects in mechanics, manufacturing, electronics, electricity production, agro-forestry-food processing, textile-garment, and support industries, the official noted.

In the field of energy, Bac Giang is offering incentives for investors in thermal power plants in Luc Nam and Son Dong districts, clean and renewable energy projects in Yen The and Son Dong districts, and solar power projects in the Quang Chau and Hoa Phu industrial parks.

It is working to promote investment in the development of urban areas, trading centres, high-end hotels, entertainment services, and financial, health care and insurance services in Bac Giang city; as well as resort projects in Lang Giang, Luc Ngan and Luc Nam districts, which boast advantages in this regard.

Meanwhile, the province is also inviting investment to tourist sites such as the Suoi Mo tourism area in Luc Nam; the ecological and resort tourism areas of Cam Son and Khuon Than lakes in Luc Ngan; the entertainment, resort and spiritual tourism area on Nham Bien Mountain in Yen Dung; and golf courses in Luc Nam, Viet Yen, Lang Giang and Luc Ngan districts.

Thang said it also welcomes more investment to agro-forestry-fishery processing projects that apply high technology, along with waste, wastewater and exhaust gas treatment.

To achieve this year’s plan, Bac Giang is pressing on with improving the business and investment climate, reforming administrative procedures, implementing investment promotion policies, assisting investors and firms in removing obstacles facing their operations, and speeding up licensed projects.

Additionally, it is mobilising resources and preparing infrastructure, clean land funds and material supply zones to create the best possible conditions for those intending to do business in the province, the department director noted, adding that the province is working hard to improve local transport infrastructure and accelerate the completion of facilities at industrial parks, especially the Quang Chau, Van Trung and Hoa Phu.

Since the beginning of this year, Bac Giang has approved in principle and granted investment registration certificates to 17 projects, including 10 domestic projects worth 302 billion VND (nearly 13 million USD) and seven FDI ones worth 69.5 million USD. Meanwhile, two domestic projects have had their capital increased by 142 billion VND, and 73.1 million USD has been added to six existing FDI projects.

By the end of February, the province had attracted 263.8 billion VND of domestic capital and 237.4 million USD of FDI capital in total. The new and additional capital of domestic projects grew 1.99-fold while that of FDI investments was equivalent to 60 percent of the figure in the same period of 2019.

So far this year, the locality has attracted just one large project which is the CE Link Vietnam No. 02 factory project worth 49.84 million USD.

Bac Giang is currently home to 1,242 domestically invested projects with combined registered capital of over 84.4 trillion VND and 451 FDI projects worth over 5.8 billion USD.

In the first two months of 2020, aside from the considerable impact of the COVID-19 outbreak, some major projects encountered other problems in mobilising capital such as the An Khanh Bac Giang thermal power plant of the An Khanh Bac Giang JSC; the logistics infrastructure project in Bac Giang city of the Bac Giang International Logistics Co. Ltd; and the port, coal processing, mechanical equipment production and medium-density fireboard manufacturing complex of the Thien Lam Dat JSC./.

Can Tho looks to accelerate public investment disbursement

Authorities in the Mekong Delta city of Can Tho held a meeting with municipal departments and agencies on March 18 to discuss the disbursement of public investment for key local works in 2019 and to launch their 2020 disbursement plan.

Speaking at the event, Chairman of the municipal People’s Committee Le Quang Manh asked for 90 percent of the disbursement plan to be completed by late 2020.

The Department of Planning and Investment was assigned to review the progress of commitment delivery by investors. In case they fail to disburse capital on schedule, they will be removed from the list of investors for 2021-2025 projects.

According to the department, only 2.1 trillion VND (91,300 USD) out of the nearly 5.7 trillion VND had been disbursed as of the late December, or about 42 percent of the yearly target.

Vice Chairman of the committee Dao Anh Dung said most projects had encountered difficulties in compensation and support for resettlement.

He suggested investors hire independent consulting firms capable of appraising land prices.

Director of the municipal State Treasury Vu Hai Son also called on local authorities to follow recommendations by State inspection and auditing units to avoid contradicting with medium-term public investment plans./.

HCM City pledges to use Japan’s ODA effectively

Ho Chi Minh City will do its utmost to effectively implement projects funded by Japan’s official development assistance (ODA), Chairman of the municipal People’s Committee Nguyen Thanh Phong has committed.

Phong made the pledge when receiving outgoing Chief Representative of the Japan International Cooperation Agency (JICA)’s Vietnam Office Konaka Tetsuo on March 18.

He spoke highly of Tetsuo’s contributions to the disbursement of ODA in Ho Chi Minh City such as the Metro Line No.1 project, a project to restore sewers by no-dig technology.

Thanking the city leaders for their support to speed up Vietnam-Japan cooperation projects during his working tenure, Tetsuo expressed his hope that the city will continue helping JICA in Vietnam in general and in Ho Chi Minh City in particular./.

Vietnam achieves highest rice yield in Southeast Asia

Vietnam has successfully recorded the highest rice yield in Southeast Asia, harvesting 5.6 tonnes per hectare, almost doubling that of Thailand, and 1.5 times greater than India, according to a Agricultural Ministry report delivered at a conference in Hanoi on March 18.

The ministry said after 10 years of implementing the national master plan on food security, Vietnam has achieved encouraging results in agricultral production, with rice output and exports in 2009 surpassing estimates, reaching 43.4 million tonnes and 6.34 million tonnes respectively.

Notably, total land area for rice cultivation expanded to nearly 4.2 million ha as of 2008, vastly exceeding the initially set target of 3.76 million ha.

Between 2009 and 2019, income per capita in rural areas increased by 4.3 times, whilst the gap between urban and rural areas narrowed from 2.1 times to 1.8 times.

Notably, the value and output of agricultural products increased sharply during the reviewed period, with coffee yield tripling that of Colombia and Indonesia and 1.5 times higher than Brazil. Tra fish alone yielded 209 tonnes per ha, the highest in the world.

Meanwhile, agricultural exports continued to experience an upward trajectory with seven items raking in turnover of over US$1 billion per year.

The ministry said thanks to the emergence of hi-tech agricultural models and organic farming, the country is capable of ensuring food self-sufficiency with a relatively high average food output per capita, ranking sixth in the world. It helped stabilise the market, curb inflation, create jobs, and reduce poverty.

Aside from these results, the ministry acknowledged a number of inadequacies, including low income from agricultural production, unsteady land policies, and the negative impact of climate change on agricultural production.

At the conference, delegates discussed ways to achieve sustainable agricultural production in the context of global complications, including socio-political instability and diseases. They agreed that with a population of close to 100 million, it is a must for Vietnam to ensure national food security.

Products to join forces with large retailers, e-commerce platforms

As the outbreak of the novel coronavirus (COVID-19) has become a global pandemic, Vietnamese firms must find an alternative to export their products as countries around the world tighten regulations to monitor trade flow. Working together with large retailers and setting up shops online seem to hold the answers.

Traditionally a large exporter by volume, Vietnam, however, has little to show for its collaboration with international retail and supermarket chains.

A project initiated by the Ministry of Industry and Trade (MoIT) aims to address this issue by helping Vietnamese firms to connect with and participate in international distribution networks.

The project, which was approved by Prime Minister Nguyen Xuan Phuc, has been working closely with major retailers such as AEON, Auchan and Central Group, among others.

Ta Hoang Linh, head of the US, EU market department under the MoIT, said the project’s goal is to help Vietnamese firms gain a better understanding of international consumers’ demands, acquire modern management techniques and meet international retail standards.

It’s also an opportunity for retailers to work directly with Vietnamese firms to diversify supply sources and improve product quality, especially agricultural products which require rigorous monitoring to ensure consumer safety.

“This is a win-win situation as both sides can reduce business costs by eliminating the need for a middleman,” said Linh.

Tran Duy Dong, head of the domestic market department under the MoIT, said the SARS-CoV-2 outbreak had severely disrupted Vietnam’s exports, especially agricultural products which put farmers in a vulnerable position in an increasingly volatile market.

Dong urged firms to work closely with farmers to strictly enforce quality standards and origin rules so that Vietnamese products could integrate in international retail chains and foreign markets.

A MoIT’s report showed retail chains could play an important role in helping Vietnamese products reach new markets.

For example, the Thai-owned MM Mega Market, formerly known as Metro Cash & Carry Vietnam, has set up four major purchasing centres for agricultural products across Vietnam. Last year, MM Mega Market exported over 1,000 tonnes of products.

Saigon Co.op and its partner NTUC FairPrice, a large supermarket chain based in Singapore, have been exporting hundreds of containers of agricultural products to the island city-state in recent years.

Notably, Japan's AEON Group and its TOPVALU brand are exporting Vietnamese goods worth up to a quarter of a billion dollars every year. The group has pledged to ramp up the export value of Vietnamese goods to one billion dollars in 2025.

According to trade experts, this was also an opportunity to ensure Vietnamese products meet international quality standards. However, as of right now only large firms with the required resources and infrastructure could take advantage of it.

Nguyen Ngoc Luan, director of Lam San Agricultural Co.op in the southern province of Dong Nai, said access to the EU market had brought greater profit and stability. The co-op was now actively seeking new clients in the EU to work directly with them.

MoIT’s deputy minister Do Thang Hai said the ministry would continue to support Vietnamese firms by setting them up with large international retailers and e-commerce platforms. Overseas trade officials were told to stay in touch with domestic firms to keep them informed of new developments, demands and opportunities in foreign markets.

The ministry would also try to issue timely warnings and advisories to alarm Vietnamese firms of technical barriers and changes in regulations to help minimise risks.

Startup contest VietChallenge 2020 launched in Hanoi

The fifth VietChallenge 2020 - the global entrepreneurship competition for Vietnamese, was launched at a virtual ceremony in Hanoi on March 21.

The contest is jointly organised by the Association of Vietnamese Students in the US, the Ho Chi Minh Communist Youth Union - Hanoi chapter and the office of Project 844 of the Ministry of Science and Technology.

Speaking at the launching ceremony, Tran Quang Hung, Vice Secretary of the Ho Chi Minh Communist Youth Union - Hanoi chapter said VietChallenge 2020 will witness new changes, including the division of startups into teams of different fields, a community funding platform for the first time in Vietnam, as well as the debut of a “startups arena 100” and the Vietnam Startup Championship in the US.

The platform Jong Ventures will help startups directly get funding from the community in a quickest manner, and open a new investment channel for individuals and organisations in Vietnam.

Meanwhile, the “startups arena 100” will offer a chance for 100 best startups in Vietnam to meet directly with representatives from domestic and international investment funds, startup incubators and investors.

A six-month-mentoring programme will also be available within the framework of the contest to provide financial support and expertise advice for startups.

VietChallenge 2019 begins receiving applications from March 21 via http://vietchalenge.org/ or http://jong.ventures/. A winning team will take 50,000 USD.

The final round of VietChallenge 2020 in Hanoi and the startups arena 100 are scheduled for August 28-29. The top teams at the final round will attend the Vietnam Startups Championship in the US from October 21-26.

In the four previous editions, VietChallenge attracted more than 800 entries of Vietnamese from 21 nations.

Hanoi approves establishment of two industrial clusters

he Hanoi People’s Committee has approved the establishment of Dong La Industrial Cluster (IC) and the second phase of Duong Lieu IC on the outskirts district of Hoai Duc.

The committee has directed the Hoai Duc People's Committee to select investors with sufficient financial capacity to develop technical infrastructure of the two ICs.

Meanwhile, the municipal Department of Industry and Trade is responsible for appraising documents related to IC development and submitting them to the municipal People's Committee.

Local authorities have made great efforts to attract foreign and domestic enterprises to ICs over the years.

The city is now home to 70 operational ICs, covering more than 1,680ha, with a total of 3,864 businesses. These firms have created 60,000 local jobs thus far./.

Cabinet seeks ways to stabilise pork price

Prime Minister Nguyen Xuan Phuc on March 20 stressed the need to regulate price of pork by the market price with certain management, and to prevent speculation and unreasonable price hiking in this sector.

Speaking at a meeting of the permanent Cabinet members in Hanoi, the leader pointed out the adverse impact of pork price hike on people’s daily lives as well as the consumer price index (CPI).

He asked the Ministries of Agriculture and Rural Development, and Industry and Trade to take drastic measures in order to reduce live pig price to below 60,000 VND (2.26 USD) per kg.

The leader suggested stepping up the restoration of pig herds and offering tax and bank loan incentives to businesses and households in order to increase the supply of the meat.

He also urged the Ministry of Agriculture and Rural Development to push ahead with pork processing, and control export.

According to the General Statistics Office, live pig price ranges from 72,000 VND to 85,000 VND per kg in the domestic market.

The price hike was due to the impact of the African swine fever, avian influenza and COVID-19./.

Khanh Hoa’s tuna fishermen net high profits

Tuna-fishing boats in the central province of Khanh Hoa are busy with the ongoing season, as a vessel can earn nearly 100 million VND (4,300 USD) per trip, Dan Viet online newspaper reports.

On average, a boat using a net can harvest from 5 to 10 tonnes of tuna per trip.

High and stable prices, as well as favourable weather, are the main reasons for an expected bumper tuna season, according to a local fisherman.

The main fishing ground is the Truong Sa (Spratly) Islands and DK1 rigs (about 250-350 nautical miles from the mainland).

Tuna boats using nets are different from ocean fishing vessels.

Vo Khac En, deputy director of Khanh Hoa province’s Fisheries Sub-department, said that there are 170 tuna-fishing boats operating regularly in the area.

Unlike ocean tuna-fishing ships, those using nets can be used all year and achieve a stable output.

According to En, at present, the average cost for a 15-day tuna-fishing trip is about 100 million VND per boat.

A boat can harvest several tonnes to more than 10 tonnes of tuna per trip. After deducting all expenses, it has an average profit of up to 100 million VND.

At Hon Ro fishing port, Phuoc Dong commune, Nha Trang city, boats full of fish are constantly docking after successful fishing trips.

The Management Board of Hon Ro Fishing Port reported there have been about 100 tuna fishing boats docking at the port over the last 10 days. There are 5-7 boats docking at the port per day, with an average output of 5 to 10 tonnes each.

According to fishermen, the current tuna price and purchasing market is stable. The wholesale price ranges from 30,000-40,000 VND per kilogram. Price of Grade #1 tuna can reach up to 50,000 VND per kilogram.

Fisherman Tran Van Nuoi, captain of a fishing boat in Huong Xuan ward, Nha Trang city, said the current weather is very favourable for tuna-fishing.

Familiar fishing grounds have abundant sources of tuna. Therefore, the tuna-fishing trips last from 10 to 15 days.

“My boat harvested five tonnes of tuna on the last trip. After deducting expenses, I gained profit of 50-60 million VND," said Nuoi.

Another fisherman, Tran Van Tuan, in Hon Ro, Phuoc Dong commune, said on the last trip he caught about eight tonnes of tuna, earning more than 100 million VND after deducting all expenses.

Tuan said: “Previously, tuna-fishing trips lasted longer than 15 days, with output of 10 to 20 tonnes.”

“But, due to the boats’ poor storage equipment, the tuna was damaged, so the low quality meant low prices.”

Recently, each trip lasted just 7 to 12 days. Although the output was lower, the quality of well-preserved fish means they can be sold at a higher price, Tuan said.

“Previously, fishing boats landed at the same time, regularly from the 7th to the 15th lunar calendar. But, recently, fishermen told each other to dock throughout the month, so output is not overloaded, and prices are better,” a representative of the Hon Ro Fishing Port’s Management Board said./.

Commercial banks cut down deposit rates

Commercial banks continued to cut deposit rates on September 19 after the State bank revised down benchmark rates.

Accordingly, annual rate for deposits from one to six months stands at 4.75 percent while those for medium- and long-term ones are also lowered.

Specifically, Vietcombank and VietinBank offer a 4.3 percent yield per year for one-month and two-month deposits, 4.7 percent for the three-month term and 4.75 percent for the 3-6 month term.

Techcombank and VIB apply a rate of 4.3-4.75 percent for the 1-6 month term, and 0.5 percent for those below one month and non-term ones.

For deposits above six months, the rate remains high at over 7 percent.

Lending rates will be also brought down to facilitate businesses’ access to low-cost credit./.

Businesses urged to prepare plans to resume activities after COVID-19

Businesses should keep a close watch on the developments of COVID-19 to have appropriate production recovery plans after the pandemic declines and ends, according to the Ministry of Industry and Trade.

The ministry advised enterprises to take advantage of online advertising and connection to maintain and develop the market even when the pandemic is raging through.

The EU is the second biggest export market of Vietnam, and its recent closure of external borders amid the COVID-19 spread is forecast to limit trade activities between the block and its partners, including Vietnam.

Vietnam’s exports to the market are expected to decline from 6 to 8 percent in the first and second quarters of 2020 if the pandemic lingers on until June.

Key export commodities such as garment-textile, footwear, timber products, and mobile phones are projected to decline.

However, the demand for farm produce and food is likely to be maintained, according to the ministry.

Experts said Vietnam’s export growth in the second half of 2020 would be more optimistic when the pandemic is repelled and the EU-Vietnam Free Trade Agreement (EVFTA) takes effect./.

Hanoi, JICA work to accelerate ODA projects

Projects invested by Japanese investors or funded by Japanese official development assistance (ODA) capital have played a crucial role in economic development of Vietnam and Hanoi in particular, said Chairman of the municipal People’s Committee Nguyen Duc Chung.

The Hanoi leader affirmed this at a reception on March 20 for Chief Representative of the Japan International Cooperation Agency (JICA)’s Vietnam Office Konaka Tetsuo.

According to Chung, effects caused by the COVID-19 epidemic on the world’s top ten economies, including Japan, will impact greatly on Vietnam's economy.

He expressed the hope that the two sides will work closely together to accelerate the implementation of Japan’s investment projects in the city, thus further strengthening their cooperation and reducing losses caused by the pandemic.

Hanoi is doing its utmost to prevent the spread of the COVID-19, Chung said, adding that the experience of Japan, China and the Republic of Korea in this work has proven effective.

For his part, Konaka praised the Vietnamese Government and Hanoi for their efforts in the fight against the epidemic, saying that Vietnam’s performance is even better than Japan’s.

The JICA official noted that Japan’s ODA funds have been used effectively in Hanoi, citing the Yen Xa water plant as an example.

He added that when the Hoa Lac Hi-Tech Zone project is completed, Hanoi will have many opportunities to attract investment from foreign technology companies.

He also asked the municipal authority to quickly address existing shortcomings in projects funded by Japanese ODA in the city, and continue to support JICA’s activities in the coming time./.

Tax reductions proposed for HCM City enterprises

HCM City authorities are seeking Prime Minister Nguyen Xuan Phuc’s approval for extending tax payments and slashing different kinds of taxes for local businesses amid the worsening Covid-19 epidemic.

Under the HCM City People’s Committee’s proposal, tax payment deadlines should be extended to the third or fourth quarter of this year for companies in different areas such as tourism, agriculture and rural development supporting industry and small and medium-sized enterprises.

The committee also recommended the exemption or the 50% reduction of value-added tax, corporate income tax and import tax for these enterprises. Employees working in the tourism sector have been recommended to enjoy personal income tax cuts based on the level of impact they have faced.

The committee has asked for permission to access the VND250 trillion (USD10.7 billion) credit package designed to support those affected by the Covid-19 outbreak.

According to the committee, companies in the most affected sectors need to be offered interest rate cuts and preferential loans, particularly those in the tourism sector.

People working at companies hit by the epidemic were proposed to be given an extension on social insurance payments, while enterprises are recommended a discount of 50% on social insurance payments, unemployment insurance, and health insurance.

The committee has suggested the 50% discount on land rental for companies in 2020 and 2021 and the same reduction for electricity prices at peak hours between March and May.

Panasonic Vietnam temporarily closes facility to conduct sterilisation

Panasonic Vietnam has decided to temporarily close its factory of Panasonic Appliances Vietnam to conduct sterilisation starting March 19 as two of its employees are suspected to have contracted the Covid-19 after an overseas business trip.

Under the latest notification of Hanoi’s Dong Anh district, where Panasonic Vietnam is located, two workers of the company were quarantined at the hospital after they developed coughing and mild fever.

The two people travelled to Malaysia on a business trip on March 12 and returned to Vietnam on March 17. One of them went to work at the company office in the morning of March 18 before beginning to have a headache.

They voluntarily went to the hospital for monitoring and testing for possible infection. Today, they have received negative results from the first test, but will continue to have monitoring and treatment at the hospital. However, under regulations, they will have to spend 14 days in isolation.

Panasonic Vietnam has decided to temporarily close the factory of Panasonic Appliances Vietnam (PAPVN) located in Thang Long 1 Industry Park. The company also requested its employees who came in contact with the potentially infected employees in self-quarantine and follow the guidance of the Vietnamese government.

Talking with VIR, Panasonic Vietnam confirmed that, “Right after detecting the potential danger, we have compiled a list of all related employees of PAPVN who had contact with the two employees, instructing them to self-isolate and work from home, in accordance with guidance from the Vietnamese government.”

The Japanese company added that at the same time, they also informed the Management Board of Thang Long Industrial Park 1 and co-operated closely with them in declaring and applying the necessary preventive measures.

“We have decided to temporarily close the PAPVN in Thang Long IP 1 since March 19 and instructed all employees to stay at home to monitor their health,” Panasonic Vietnam told VIR and confirmed that the company will do everything in its power to safeguard the health and rights of its employees by following the tenets of the Labour Code, working regulations, and collective labour agreement.

In the context of the spreading global epidemic, Panasonic Vietnam has suffered unexpected impacts as logistic capacity is getting reduced in line with shrinking of air flight.

“We hope the government will take action to recover and secure the logistics sector. At other subsidiaries of Panasonic Vietnam Group, we continue business as usual. At present, except for the above-mentioned two employees, all of our employees are in good health,” Panasonic Vietnam said.

Panasonic Vietnam Group comprised of eight companies including Panasonic Vietnam and its sales division of Panasonic Sales Vietnam (PSV), Panasonic Research & Development Center Vietnam (PRDCV), and five manufacturing companies including Panasonic AVC Networks Vietnam (PAVCV), Panasonic Appliances Vietnam (PAPVN), Panasonic System Networks Vietnam (PSNV), Panasonic Industrial Devices Vietnam (PIDVN), Panasonic Life Solutions Vietnam (PLSVN), and Panasonic Insurance Service Vietnam (PISVN). The group currently employs a total workforce of about 8,000 people according to its website.

Vietnam is trying hard to stop the virus from spreading to other areas and provinces. So far, Vietnam has recorded today 85 cases of infection, with 16 discharged from hospital after making a full recovery.

Grab issues unique contactless delivery service in Vietnam

Contactless delivery, a service exclusively provided by GrabFood, is one of efforts of Grab to ensure customer safety in the context of the COVID-19 pandemic.

Grab, Southeast Asia’s leading superapp, has officially launched the “contactless delivery” service on the GrabFood app in order to decrease contact between customers and shippers. This programme is implemented for the first time in Hanoi and then, from March 20, will be rolled out in other cities and provinces where GrabFood is available.

Accordingly, when customers order food on GrabFood, they can select where the driver needs to leave their meal, and they can even ask drivers to place them in front of their door or to leave them at the reception of the building. The two parties can contact each other by free calls and the GrabChat service. Shippers will leave the meals at the required position and then standing 2-3 metres away to waiting for customers.

Grab encourages customers to use the Moca e-wallet or a credit card in order to limit contact with shippers. Drivers are required to wash their hands before and after completing each delivery.

Nguyen Thai Hai Van, operating director of Grab Vietnam, said, “At Grab, the safety of our customers and shippers is our first priority. Contactless delivery is an essential solution to ensure the health of the community. Thanks to this method, we expect that customers can still order their favourite food in safety despite the epidemic.”

Vietnam is the next country where Grab applies this delivery method after success in Indonesia, Singapore, the Philippines, and Thailand. Along with offering contactless delivery, Grab and GrabFood recommend customers and partner restaurants to comply with food safety regulations as well as regulation to use masks and antiseptic.

Previously, Grab gave out over 30,000 gift packages including gloves and hand sanitisers to drivers as part of its “Safeter Everyday” project.

In upcoming time, Grab will continue to follow the happen of epidemic and issue on-time solution to ensure safety for customers, drivers and restaurants.

PetroVietnam draws up scenarios to cope with double impact on oil and gas industry

PetroVietnam has set up many scenarios to cope with the double impact of the Covid-19 epidemic and the nosedive of oil prices in the world market.

According to PetroVietnam general director Le Manh Hung, with the two difficulties, PetroVietnam is passing through the hardest times in its history.

“However, there are always opportunities in challenges, and we have to seize them in order to overcome this difficult time,” Hung said.

Hung required PetroVietnam (PVN) and its members to restructure business activities in case Covid-19 spreads and to drive the group’s business in the safest and most effective direction.

The group’s members were instructed to review the work, strengthen governance, implement solutions to reduce costs and research, propose solutions to remove difficulties, offer scenarios to cope with each situation, and prepare with a contingency plan for the worst-case scenario of a shutdown of oil fields and refineries.

PVN's members have prepared carefully calculated plans to begin buying crude oil and petroleum products as soon as the price hits the bottom in anticipation of a bounce back and a return to normalcy.

The world and the Vietnamese oil and gas industries are coping with great difficulties.

In the first three months of 2020, under the negative impact of the COVID-19 epidemic, many major economies in the world and in Vietnam are witnessing a direct downturn in all business sectors as the value chains are seriously affected by disruptions on both the supply and demand side of goods and raw materials.

On March 18, 2020, the price of Brent oil dropped heavily to approximately $24-25 per barrel. With the current reduction rate of 7-8 per cent per day, the world crude oil price is likely to drop to below $20 in the coming days.

In Vietnam, under the impact of the COVID-19 epidemic and the sharp decline in oil prices, many sectors have been facing difficulties, especially oil and gas, taking price to the lowest level in the last more than 17 years.

According to PetroVietnam, if the price of oil is at $60 per barrel, it will have a revenue of $4.668 billion. But if the price of oil drops to $30 per barrel its revenue from selling crude oil will be only $2.362 billion.

The company's state budget contributions will also reduce from $1.594 billion to $806 million only. PetroVietnam, meanwhile, has been strongly impacted by both factors, from exploration and exploitation to manufacturing activities and services.

Currently, Nghi Son petroleum refinery has a very high inventory of about 70-85 per cent and its storage facilities are nearing their capacity in March. The inventory of Dung Quat oil refinery is also increasing rapidly as customers delay hand over timelines due to low consumption and insufficient storage systems.

In terms of oil and gas technical services, similar difficulties are encountered as investors and contractors tend to cut and optimise production costs.

Nearly 298 million USD earmarked for container berths in Hai Phong

Hai Phong Port Joint Stock Company has recently signed a pre-investment consulting contract to build container berths No 3 and 4 in Hai Phong International Gateway Port.

The contract will be carried out by the Construction Consultation Joint Stock Company for Maritime Building (CMB).

In October 2019, the Prime Minister approved an investment project worth nearly 6.95 trillion VND (297.6 million USD) to construct container berths No 3 and 4 in the Hai Phong International Gateway Port. The project is invested by the Hai Phong Port Joint Stock Company, a subsidiary of the Vietnam National Shipping Lines (Vinalines)

The project includes the two berths, which are capable of receiving container vessels of up to 100,000 DWT, and a barge berth which is able to welcome barges of 160 TEUs and handle 1.1 million TEUs of goods per year.

It is scheduled to be completed by 2025 and the container berth No 3 will be put into operation in 2022.

The first two container berths in the Hai Phong International Gateway Port were inaugurated in 2018, serving container ships of up to 50,000 DWT./.