VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 19

Vietnam Airlines green-lighted to weather COVID-19 crisis

The National Assembly on November 17 endorsed a Government proposal to help national flag carrier Vietnam Airlines weather the COVID-19 crisis. 

The National Assembly allowed the State Bank of Vietnam to re-finance credit institutions that lend additional loans to Vietnam Airlines for its operation. It also permitted the airline to offer additional shares to existing shareholders to increase charter capital.

The Government will assign the State Capital Investment Corporation (SCIC) to purchase Vietnam Airlines shares on behalf of the Government.

Vietnam Airlines was required to continue with solutions to reduce losses, and pay attention to employees’ interests as the COVID-19 pandemic is yet to show signs of abating.

The two COVID-19 outbreaks have dealt a heavy blow to Vietnam Airlines’ operation, causing it a huge loss of VND10.75 trillion from January till September. By September 2020, the firm had transported 10.2 million passengers and just earned nearly VND24 trillion, correspondingly equivalent to 58.8% and 41.7% of passenger numbers and revenue of the same period last year.

Vietnam Airlines has submitted proposals to relevant State agencies, appealing for a relief package worth VND12 trillion to survive the crisis.

Vietnam Airlines was said to get VND4 trillion worth of additional loans for its operation. However, the NA Standing Committee maintained that it is the government that has the authority to resolve the airline’s difficulty.

Toyota Tsusho acquires 35 per cent of Vinaconex subsidary

Toyota’s trading arm Toyota Tsusho Corporation has scooped up a 35 per cent stake in Northern Electricity Development & Investment JSC No.2, a subsidiary of Vinaconex.

At an extraordinary general meeting of shareholders, Northern Electricity Development and Investment JSC No. 2 (ND2) were greenlighted to transfer 35 per cent stake, equivalent to 17.5 million shares, to Toyota Tsusho. The company's shareholders also approved adjusting the business lines, including electricity production, construction of electricity projects.

ND2 is operating in the electricity industry. The company's major undertakings include the development and management of the 72MW Ngoi Phat hydropower plant in Lao Cai province, the electricity output of which is directly transmitted into the national grid system.

Besides, ND2 is engaged in the development of other hydropower projects in the northern region of Vietnam, such as the Chu Linh-Coc San project, Su Pan project, and Ta Thang project. Apart from power plant management, ND2 partakes in the real estate business, with the investment in and the operation of Thuy Hoa Commercial Urban Area in Lao Cai province.

Meanwhile, Toyota Tsusho was established in 1948 in Japan. This is a general trading company belonging to Toyota Group, Japan’s largest automaker. Toyota Tsusho’s main businesses include auto trading, mining, logistics, machinery, energy, chemicals and electronics, food and consumer services.

Binh Duong seeks ADB’s cooperation in various fields

VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 19

Binh Duong plans to increase the clean water supply capacity serving socio-economic development

Vice Chairman of the Binh Duong provincial People’s Committee Nguyen Thanh Truc had a working session with representatives from the Asian Development Bank (ADB) on November 17, discussing cooperation orientation in development of smart cities, environmental protection, energy and job creation in the next five years.

During the meeting, Truc said the province is most interested in projects in developing smart urban areas and saving energy towards urban modernisation and operation of smart urban areas in the coming time.

He asked the ADB to support a specific project to meet the province’s development need.

Accordingly, the southern province has issued a list of priority projects calling for investment in the form of public-private partnership (PPP).

It also has planned to increase the clean water supply capacity serving socio-economic development to about 900,000 cu.m per day with a total investment of 2.48 trillion VND, focusing on the water plants namely Di An, Uyen Hung, Bau Bang and Phuoc Vinh, and a complex water plant.

Regarding waste collection and treatment, Binh Duong has set a target to ensure that 100 percent of waste is collected and treated with a capacity of about 3,000-3,500 tonnes per day.

It also expects to attract investment in projects in health care, training and job generation.

The local authorities will encourage private partners to join with the ADB in the area of environmental protection, Truc said./.

Food delivery apps vowing to provide safety and hygiene

The changing habits of customers due to the COVID-19 pandemic are pushing the food delivery market into a new race in which safety and hygiene are considered bigger priorities. 

Vietnam’s biggest cities are full of various food delivery options striving to offer the cleanest service
Last year market research consultant Bain & Company forecast that the number of customers using digital tools in Southeast Asia would reach 310 million by 2025. However, with the appearance of the coronavirus pandemic, both this consulting unit and Facebook have predicted that the milestone would be reached this year.

Along with an increase in use of digital tools, customers are also changing their habits due to the health crisis. A survey published by market research firm Nielsen in March showed that 62 per cent said they will continue to mostly eat meals at home instead of going to restaurants even after the pandemic is cleared up.

The changes may contribute to improving the growth of the food delivery sector. Another survey from market research firm Q&Me in May showed that 79 per cent of respondents order food via an app at least once a week. The colours of uniforms from food delivery service providers GrabFood, Now, and Baemin have slowly been covering every nook and cranny in the city to serve the increasing demand of ordering food, both day and night.

Similar to ride-hailing, the food delivery market has also been taking shape. Despite there being no official statistics relating to market share, Q&Me’s survey places GrabFood as the most popular food delivery provider, accounting for 79 per cent of users, followed by Now (56 per cent) and GoFood (41 per cent).

Being aware of the opportunity to impact current market share, delivery platforms have started to implement new strategies to lure users instead of just racing to burn money on promotion and incentive programmes like previously.

As market leader, GrabFood has been proactive and pioneered issuing policies and new standards for the food delivery industry in recent times, calling on merchant partners to join its Three Standards (delicious, fast, and hygienic) programme to ensure food quality. In order to join the campaign, partners must maintain a star rating of higher than 4.3; the cancel ratio must remain lower than 1 per cent; and the number of complaints regarding food safety from customers must remain at zero within one month of ordering.

Following GrabFood is Baemin, the latest player to become popular particularly in the centre of Ho Chi Minh City thanks to catching up with the trend of healthy eating to meet the demand from customers. Meanwhile, Loship is maintaining its service quietly, without yet experiencing breakthrough growth. Now – one of the first players in Vietnam’s food delivery market – still has chances to strengthen its position after partnering with Shopee last year. And regarding GoFood, it may take further advantage of its parent company’s support. However, the apps have yet to carve out distinct slices of the market.

Nielsen Vietnam has predicted that the change in eating behaviours will last beyond the pandemic, with healthy eating habits becoming the most important factor for customers.

As a result, a number of food delivery apps are being proactive in building relevant strategies. For example, Baemin’s tactics focus heavily on the healthy eating sector, while GrabFood considers safety and hygiene as a core value in order to exploit the market, with it being the key of its Three Standards initiative.

In fact, hygiene is the most crucial criteria for GrabFood’s Three Standards campaign. In order to join the programme, partners must also provide food safety certificates, images of cooking, delivery stalls, and their staff. In addition, Grab will test restaurants’ quality every two weeks to ensure the quality is maintained at a high level.

A representative of Grab said that, once its partners adhere to the strict criteria in its Three Standards campaign, this will be offset by other benefits that increase revenues and profit. In addition, Grab will support the increase of their restaurants’ presence on media channels including the Grab app, Facebook, and through email marketing and review channels. Furthermore, restaurants adhering to the Three Standards scheme will have the opportunity to lure more customers thanks to being a priority for promotional codes that can be offered for customers.

In general, COVID-19 has created a large market space for food delivery service providers in Vietnam, and this potential will expand further when ordering food via apps becomes the norm, the representative added. Thus, food delivery service providers with the deepest understanding of customer demands will be the ones to acquire solid growth.

Ample room for Vietnamese firms to operate in French-speaking African countries

Vietnamese businesses have huge opportunities to operate in French-speaking African countries, Trade Counsellor in Algeria Hoang Duc Nhuan has said.

Nhuan, who is also in charge of trade affairs in Gambia, Mali, Niger and Senegal, said with a combined population of 570 million, the 32 French-speaking countries in Africa are expected to form a new economic centre of the world.

In an interview granted to the Vietnam News Agency (VNA) on the sidelines of an online workshop on economic and trade cooperation potential and prospects between Vietnam and the French-speaking African countries, the official said Vietnam’s export revenue to the countries reached 1.7 billion USD in 2019, up 6.3 percent, and its import value, 2.8 billion USD, up 12 percent year-on-year.

According to the General Department of Vietnam Customs, the two-way trade increased from 2.7 billion USD in 2015 to 4.5 billion USD last year, making up 88 percent of the total trade between Vietnam and Africa, with an annual growth rate of 13.6 percent.

Vietnam has maintained trade ties with major partners in the region such as Ivory Coast, Ghana, Egypt, the Republic of Congo, Cameroon, Morocco, the Democratic Republic of the Congo, Togo, Mozambique and Benin.

Vietnam exports rice, mobile phones and components, computers, electronics and motorbikes to the countries, while importing production materials like crude cashew nuts, cotton, and wood and timber products.

At the workshop, representatives from African organisations and businesses spoke highly of Vietnam’s role and position in Southeast Asia, and expressed their wish for stronger economic, trade and investment ties.

They hailed the Vietnamese government’s efforts in containing COVID-19 and recovering the national economy post pandemic.

Chékou Oussouman, Regional representative of the Asia and Pacific office of the International Organisation of La Francophonie, said Vietnam has been seen as the gateway for African businesses to access Southeast Asia.

African countries would also become attractive destinations for Asian enterprises through Vietnam, he added.

Deputy Minister of Industry and Trade Cao Quoc Hung said Vietnam always attaches importance to cooperation with the French-speaking community, and will make more contributions for a stronger and united community.

Vietnam is an important partner of many African countries in the Asia-Pacific region, he said, adding that Vietnam is willing to work as a bridge between the French-speaking African nations and Asia-Pacific during the implementation of the Francophone economic development strategy./.

Vietnam and Oman to promote bilateral relations

Oman and Vietnam are in the final stages of negotiating agreements to promote bilateral relations in numerous sectors, including investment, education, trade, and tourism.

This was announced by Saleh Mohamed Ahmed al Suqri, Ambassador of the Sultanate of Oman in Vietnam at the ceremony to celebrate the 50th National Day of the Sultanate of Oman.

The relationship and economic cooperation between Vietnam and Oman in recent years has witnessed strong positive growth, especially in bilateral trade turnover. The two countries are in the process of finalising multiple bilateral agreements and memoranda in the areas of aviation, trade, human resources, mutual investment protection, and double taxation avoidance to promote bilateral relations.

Suqri said that bilateral relations have witnessed massive progress in many fields since their establishment in 1992, thanks to the efforts of the two governments.

Vietnam and the Sultanate of Oman have a long tradition of friendly cooperative relations with a potential strategic partnership on the cards. The two countries constantly support each other to maintain their leadership roles in Southeast Asia and the Middle East, as well as in the international arena.

His Majesty Sultan Haitham Bin Tariq reaffirmed the permanent stance of the Sultanate’s foreign policy, saying that the Sultanate advocates peaceful co-existence among nations, good neighbourliness and non-interference in the internal affairs of other countries.

The two countries continue to maintain comprehensive development in various fields such as diplomacy, investment, trade, and tourism, through the annual meetings of the Vietnam-Oman Intergovernmental Cooperation Committee.

In a March 2018 meeting, Minister of Industry and Trade of Vietnam Tran Tuan Anh and Minister of Trade and Industry of Oman Ali bin Masoud Al Sunaidy signed the Third Meeting Resolution of the Joint-Committee on Economic and Technical Cooperation between the two countries. After each session, many trade and investment projects have been initiated, the total of bilateral import and export turnover has increased sharply, bringing about great economic achievements for the two countries.

Proving this, bilateral trade has seen strong growth, reaching $117 million in 2017, $127 million in 2018, and $200 million in 2019.

In addition, Vietnam-Oman Investment JSC (VOI) established in 2008 is an important joint venture between the Oman Investment Authority, which was previously known as State General Reserve Fund of Oman, and the State Capital Investment Corporation of Vietnam. After more than 10 years of establishment, VOI has invested almost $300 million in Vietnam, focusing on essential sectors namely high-tech agriculture, infrastructure, water treatment plants, renewable energy, pharmaceuticals and healthcare, and education.

The achievements from both sides hailed the promising future of Vietnam-Oman relations in many areas, such as trade, investment, cultural cooperation, education-training, tourism, agriculture, and oil and gas, among others.

APEC economies urged to unite, build revitalised Asia-Pacific community

The Asia-Pacific Economic Cooperation (APEC)’s Business Advisory Council (ABAC) has recommended APEC economies to unite and build a revitalised Asia-Pacific economic community.

In a statement following a virtual meeting on November 17 ahead of the APEC Economic Leaders Meeting, ABAC said prioritisation of integration and trade friendly policies, innovation and inclusion are included in this year's report to APEC Economic Leaders.

These are unprecedented times, demanding bold responses. The world faces the greatest health and economic crisis of a hundred years, said Chair of ABAC Rohana Mahmood.

"We want a region that responds collectively to shared challenges. A region that values the connections between us – including free and open trade and investment, and a dynamic digital economy. Neighbors who help each other in times of need, respect each other's differences, and remain committed to greater inclusion and equity," she added.

Rohana also said these elements would go to building greater resilience, especially as the region faced not only the risk of future health crises, but also accelerating climate change.

"There is an urgent need to reverse the dramatic decline in the health of our planet and embrace the transition to a low-carbon economy," she said.

APEC is a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-Pacific. APEC's 21 members aim to create greater prosperity for the people of the region by promoting balanced, inclusive, sustainable, innovative and secure growth and by accelerating regional economic integration./.

Thai Vietjet adds two aircraft to its fleet to meet route expansion plan

Thai Vietjet has received two 180-seat A320 aircraft, increasing its current fleet to 13.

The airline expects to receive two more planes in December. The delivery is in line with the fleet and route expansion plans.

Vietjet is operating a young, modern fleet with an average age of only 2.7 years, and as one of the leading airlines in the world in terms of safety, quality and technical reliability. The carrier is constantly expanding its flight network and fleet to meet the recovering travel demand.

To celebrate the fleet expansion, the airline is offering ticket promotion for ‘Deluxe’ service' with a promotional price starting from 999 THB (33 USD) and 99 THB (3.3 USD) for economy class, available for booking from now until November 20, 2020 via its SkyFUN platform at SkyFUN.vietjetair.com.

The promotion is applied for all Thailand’s domestic routes with flight time from December 1, 2020 to June 30, 2021.

Thai Vietjet operates 14 routes connecting many attractive destinations across the Land of Smiles, from Bangkok to Chiang Mai/Chiang Rai/Phuket/Krabi/Udon Thani/Hat Yai/Khon Kaen/Nakhon Si Thammarat/Ubon Ratchathani/Surat Thani, from Chiang Rai to Phuket/Hat Yai/ Udon Thani, and the new route Chiang Mai - Nakhon Si Thammarat, which will be operated from November 30, 2020.

Bac Ninh steps up trade cooperation with Malaysia

Malaysian Ambassador to Vietnam Dato’ Shariffah Norhana Syed Mustaffa pledged to help businesses in Vietnam’s northern Bac Ninh province join the Halal industry during her meeting with Chairwoman of the provincial People’s Committee Nguyen Huong Giang on November 17.

The products that meet standards will be granted with Halal certificates in order to penetrate promising markets, she said.

The ambassador spoke highly of the achievements Bac Ninh has recorded in socio-economic development and investment attraction amidst the COVID-19 pandemic.

Giang briefed the guest on Bac Ninh’s socio-economic development over the past time, saying the province now counts nine valid Malaysian projects valued at about 80 million USD.

The two sides shared the views on the good relations between Vietnam and Malaysia across spheres since they established diplomatic ties in 1973.

Apart from the Halal industry, host and guest also looked at cooperation in education during the meeting./.

RCEP to bring significant benefits to members: experts

The Regional Comprehensive Economic Partnership (RCEP), signed by 15 Asia-Pacific countries on November 15, would bring economic benefits to these countries and help strengthen regional integration, experts have said.

"The RCEP will connect about 30 percent of the world's people and output and, in the right political context, will generate significant gains," said a report jointly issued on November 16 by Peter A. Petri, a nonresident senior fellow of the Brookings Institution and Michael Plummer, a professor of international economics at Johns Hopkins University.

The RCEP could add 209 billion USD annually to world incomes, and 500 billion dollars to world trade by 2030, according to computer simulations published by Petri and Plummer.

The report estimated that the RCEP, together with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) signed in 2018, will make the economies of North and Southeast Asia more efficient by linking their strengths.

North Asia's economies may benefit most, with other nations already covered by a patchwork of existing free trade agreements, said Mark Haefele, chief investment officer of UBS Global Wealth Management, on November 16.

Raj Bhala, a distinguished professor at the University of Kansas Law School, told Xinhua that the RCEP partners now have the opportunity to "write and revise international trade rules on 21st century issues," including IP protection, technical standards, sanitary and phytosanitary measures, and services liberalisation.

Jeffrey Sachs, an economics professor at Columbia University and a senior United Nations advisor, told Xinhua via email on November 16 that as the next step, the RCEP should strengthen cooperation on restoring tourism and trade, investing in renewable energy, and achieving sustainable development./.

Vietnam, RoK eye stronger ties

Vietnam and the Republic of Korea (RoK) sought measures to strengthen bilateral ties in a wide range of fields during the 18th Vietnam-Korea Economic Committee Meeting held online on November 17.

The meeting was co-organised by the Ministry of Planning and Investment, the RoK's Ministry of Foreign Affairs, and relevant agencies from the two countries.

Deputy Minister of Planning and Investment Tran Quoc Phuong placed emphasis on the strong development of Vietnam-RoK ties across fields, to the benefit of both sides.

Echoing Phuong’s view, Deputy Minister for Economic Affairs at the RoK Ministry of Foreign Affairs Lee Seong-ho said Vietnam and the RoK have cooperated fruitfully in areas such as industry-energy, infrastructure-transport-construction, agriculture, consular affairs-justice, finance-banking, science-technology, information-telecommunications, culture-sports-tourism, education, natural resources, and the environment.

The RoK was Vietnam’s third-largest trade partner last year, after China and the US, fourth-largest export market, and second-largest import source. Vietnam exported 19.7 billion USD worth of goods to the RoK and imported 47 billion USD worth.

Two-way trade stood at 47.5 billion USD in the first nine months of this year, down 5.1 percent year-on-year, of which export revenue was 14.5 billion USD, down 2.1 percent, and import value 33 billion USD, down 6.5 percent.

Many at the meeting proposed that the RoK help Vietnamese agricultural products and food penetrate into the country, thus raising bilateral trade to 100 billion USD, and that the RoK end its imposition of anti-dumping duties on Vietnamese plywood.

As of October, the RoK had some 8,900 valid projects in Vietnam, valued at about 70.4 billion USD, ranking it first in terms of both project numbers and registered capital.

RoK firms contributed about 30 percent of Vietnam’s export value in the first nine months.

Vietnam, meanwhile, has invested in 49 projects worth 35.24 million USD in the RoK, primarily in science-technology, mining, and processing and manufacturing.

The RoK Government has asked local firms to consider investing in Vietnam, especially in fields the Southeast Asian country has prioritised, such as high-tech, electronics, renewable energy, infrastructure, high-quality agriculture, healthcare, biology, and tourism.

Vietnam has remained the RoK’s priority development aid recipient, with about 20 percent of the total to date./.

 

Vinh Phuc IPs lure nearly 300 million USD in FDI in 10 months

Industrial parks (IPs) in the northern province of Vinh Phuc attracted nearly 300 million USD in FDI in the first ten months of this year, equal to 80 percent of the year’s target.

The sum included both new capital in 16 projects, and additional capital in 36 existing projects.

There were also six domestic direct investment projects with more than 700 billion VND (30.31 million USD) in total capital.

Local IPs now house 372 valid projects, including 307 FDI projects with registered capital in excess of 4.3 billion USD.

Vinh Phuc has bolstered its administrative reform efforts, built an open investment climate, and zoned off land lots for the wave of major investment expected upon the completion of the Thang Long Vinh Phuc Industrial Park Phase II and the Dong Soc industrial cluster.

The province is currently viewed as among four localities in Vietnam with the best infrastructure and conditions for industrial development./.

Vietnam, RoK eye stronger ties

Vietnam and the Republic of Korea (RoK) sought measures to strengthen bilateral ties in a wide range of fields during the 18th Vietnam-Korea Economic Committee Meeting held online on November 17.

The meeting was co-organised by the Ministry of Planning and Investment, the RoK's Ministry of Foreign Affairs, and relevant agencies from the two countries.

Deputy Minister of Planning and Investment Tran Quoc Phuong placed emphasis on the strong development of Vietnam-RoK ties across fields, to the benefit of both sides.

Echoing Phuong’s view, Deputy Minister for Economic Affairs at the RoK Ministry of Foreign Affairs Lee Seong-ho said Vietnam and the RoK have cooperated fruitfully in areas such as industry-energy, infrastructure-transport-construction, agriculture, consular affairs-justice, finance-banking, science-technology, information-telecommunications, culture-sports-tourism, education, natural resources, and the environment.

The RoK was Vietnam’s third-largest trade partner last year, after China and the US, fourth-largest export market, and second-largest import source. Vietnam exported 19.7 billion USD worth of goods to the RoK and imported 47 billion USD worth.

Two-way trade stood at 47.5 billion USD in the first nine months of this year, down 5.1 percent year-on-year, of which export revenue was 14.5 billion USD, down 2.1 percent, and import value 33 billion USD, down 6.5 percent.

Many at the meeting proposed that the RoK help Vietnamese agricultural products and food penetrate into the country, thus raising bilateral trade to 100 billion USD, and that the RoK end its imposition of anti-dumping duties on Vietnamese plywood.

As of October, the RoK had some 8,900 valid projects in Vietnam, valued at about 70.4 billion USD, ranking it first in terms of both project numbers and registered capital.

RoK firms contributed about 30 percent of Vietnam’s export value in the first nine months.

Vietnam, meanwhile, has invested in 49 projects worth 35.24 million USD in the RoK, primarily in science-technology, mining, and processing and manufacturing.

The RoK Government has asked local firms to consider investing in Vietnam, especially in fields the Southeast Asian country has prioritised, such as high-tech, electronics, renewable energy, infrastructure, high-quality agriculture, healthcare, biology, and tourism.

Vietnam has remained the RoK’s priority development aid recipient, with about 20 percent of the total to date./.

Firms urged to pay more attentiont to building brands

Firms should attach greater attention to building their brands to enhance competitiveness in the context of rapid global integration as Viet Nam has few globally-recognised brands.

A survey of more than 500 enterprises carried out by the Ministry of Industry and Trade found that only 20 per cent of the firms invested in building their brand with most focusing on registering brands in Viet Nam and ignoring registration in international markets. Firms also paid little attention to managing and exploiting brands.

According to Le Tat Chien from the National Office of Intellectual Property of Viet Nam under the Ministry of Science and Technology, despite having a position in the domestic market, many Vietnamese products were still struggling to expand in foreign markets because most firms still ignored brand promotion.

Deputy Head of the Party Central Committee’s Economic Commission Nguyen Huu Nghia said firms still lacked solutions to build and manage their brands. Some enterprises had not really considered brand as a way to bring products to consumers and some lacked awareness of the importance of brands, he said.

Mac Quoc Anh, Deputy President of the Ha Noi Association of Small and Medium-Sized Enterprises, said that 90 per cent of firms in Viet Nam were of small and medium scale, even micro-scale with limited financial capacity, making it difficult for them to invest in developing brands.

Anh said firms expected more effective mechanisms and policies would be introduced to protect domestic goods, adding that the legal framework also needed improving to ensure a fair business environment for domestic and imported products.

Director of the Viet Nam Trade Promotion Agency Vu Ba Phu said the Ministry of Industry and Trade was developing a national brand project which would focus on brand promotion for Vietnamese products via international media.

It was important that Vietnamese firms must be well aware of brand value and building recognition for Vietnamese products, to create prestige and confidence among domestic and foreign consumers, said Vo Tri Thanh, Director of the Institute for Brand and Competitiveness Strategy.

According to Brand Finance, the Vietnamese national brand was valued at US$247 billion in 2019, $12 billion higher than 2018, ranking 42nd in the world.

Companies to be honoured as national brands

After nine months of selection, 124 companies with a total of 283 products will be honoured as Viet Nam National Brand this year, according to a decision of the National Brand Council.

The figure this year was 27 higher than in 2019. Among them, 17 enterprises had products honoured as Viet Nam National Brand for seven consecutive times since the programme was launched.

The information was disclosed at a Tuesday conference held by the Ministry of Industry and Trade to introduce the ceremony honouring these companies which will be held on November 25 in Ha Noi.

Deputy Minister of Industry and Trade Do Thang Hai said with the recognition of national brands, firms could affirm their position in the domestic market and expand in global markets.

The programme significantly contributed to increasing the awareness of the business community about the importance of brands in increasing added value for products as well as corporate value, through which, enterprises’ competitiveness would be enhanced, Hai said.

Viet Nam needs solutions promoting sustainable seafood exports to the EU: experts

Viet Nam needs to strengthen measures to achieve the sustainable development of seafood exports to the EU market, especially after the EVFTA comes into effect, according to experts.

The country gained US$183.4 million in seafood export value to the EU in two months after the EU-Viet Nam Free Trade Agreement (EVFTA) came into force, said Phan Thi Thu Hien, lecturer and expert on EU market from the Foreign Trade University.

“The EUTR1 certificate of origin (C/O) applications of exported seafood accounted for nearly 80 per cent of total C/O applications, ranking second in the top export commodities,” Hien said.

Vietnamese exporters have had good compliance with the rules of origin to utilise the EVFTA, she said.

Meanwhile, the Ministry of Industry and Trade (MoIT) has also supported Vietnamese firms in complying and successfully applying the preferential EUTR1 C/O, including introduction and communications about the EVFTA and its rules of origin, training and consultancy, help desks, and manual and e-guidance publications.

The EU is one of the biggest export markets of Viet Nam’s fish and fish products with a value of US$1.3 billion in 2019, accounting for 15.1 per cent of the total seafood export value of Viet Nam.

However, Viet Nam’s seafood products exported to the EU are mainly semi-processed products, according to the Viet Nam Institute of Economics and Fisheries Planning.

In addition, the EU is a large market with many import orders while Viet Nam has not developed production and processing chains so it has missed many chances of exporting seafood to the EU.

To have efficient and sustainable seafood exports to the EU, the Government and competent authorities need to have training programmes and public-private dialogues about IUU and the EVFTA, Hien said.

They need to modernise and standardise documentation and fishery statistics, she said. They should also apply information technology (IT)-driven risk management and control and develop IT infrastructure, applications and platforms.

For local farmers and export processing firms, she said, they should know about fundamental principles of the EU’s IUU regulations, preventing violations. Those could ensure efficient seafood exports to the EU market.

They should also actively participate in training courses about IUU and the EVFTA.

Bach Van Hanh from the Directorate of Fisheries under the Ministry of Agriculture and Rural Development (MARD) said the directorate has enhanced control for imported raw materials of seafood to meet requirements on product origin.

It has improved existing processes to ensure traceability in processing plants and monitor certified materials for processing in factories, he said.

Besides that, Viet Nam should solve problems relating to residue levels of banned substances in export seafood products, said Dao Trong Hieu from the MARD’s Agricultural Product Processing and Market Development Department.

It needs to complete standards and regulations for Viet Nam's seafood products, meeting the EU market regulations, he said.

Viet Nam should also take full tax incentives from the EVFTA to promote seafood exports to the EU.

If Viet Nam removes the yellow card warning about implementing the IUU regulations and take full tariff incentives under the EVFTA, its seafood exports to the EU in the next five years are expected to reach between $1.2-1.5 billion each year, Hieu said. 

Vietnam’s exports of gemstone to Hong Kong skyrocket

Vietnam’s exports of gems and precious metals to Hong Kong (China) and Switzerland have seen a sharp upswing during the ten-month period, reaching US$2.54 billion in revenue and representing a year-on-year increase of 30.2%, according to the General Department of Vietnam Customs. 

Notably, the export of gems and precious metals to Hong Kong increased sharply with the export turnover to the  market in the reviewed period reaching US$ 2.03 billion, a 45-fold increase against the same period last year.

However, the export of gems and precious metals in October alone plunged 66.4% to US$71.7 million compared to the previous month.

Despite witnessing robust growth in the Asian market, the export of gemstones and precious metals to Switzerland plummeted in the opening ten months of the year with the export turnover to Switzerland standing only at US$103 million compared to last year’s figure of US$ 1.38 billion.

With a total revenue reaching up to US$2.133 billion, Hong Kong and Switzerland are the two major markets that have accounted for nearly 84% of the country’s total export value of gems, precious metals.

Vietnam supports multilateral trade at APEC meeting

The Asia-Pacific Economic Cooperation (APEC) forum should continue taking the lead in promoting free, open trade and investment while simultaneously strengthening regional economic connectivity and boosting people-centred economic growth.

Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh made the statement during the 31st APEC Ministerial Meeting that was held virtually on November 16.

Deputy PM Minh said APEC must play a leading role in promoting an open, rules-based multilateral trading system that is effective alongside the reform of the World Trade Organization (WTO), in order to ensure the adaptability of the multilateral trading system amid the rapid development of science and technology, and a profound transformation of economic and business models.

He added that the novel coronavirus (COVID–19) pandemic has had an enormous impact on all national economies worldwide, a further indication of the interdependence of different economies. He therefore called on all APEC members to unite for the purpose of upholding the spirit of solidarity and responsibility while making a practical contribution so that the Asia-Pacific region can rapidly overcome its current challenges and lead the globe’s economic recovery.

Deputy PM Minh cited ASEAN’s experience this year, outlining how the spirit of cohesion and proactive adaptation has served the bloc well and allowed it to get through the COVID-19 crisis and move forward.

He expressed his belief that with a fresh ambitious and well thought-out vision that will be endorsed by APEC leaders over the coming days, APEC will continue to assert its role as a leading economic co-operation mechanism in the region and go on to be an important driving force in building a peaceful, connected, resilient, and creative Asia-Pacific community.

During the event, Vietnam put forward a number proposals aimed at co-ordinating on tasks such as disease control, economic recovery efforts, ways to strengthen connectivity, methods to ensure the sustainability of supply chains, and structural reforms, alongside developing  the digital economy aimed at maintaining the region’s economic recovery and enhancing its resilience amid future crises and shocks.

As a non-permanent member of the United Nations Security Council and the ASEAN Chair in 2020, Vietnam will work closely with the international community to promote multilateral co-operation, including with APEC, Deputy PM Minh stressed.

The 31st APEC Ministerial Meeting endorsed a joint statement, affirming that all 21 APEC members have a strong resolve to unite to build a resilient Asia-Pacific community.

The APEC is an inter-governmental forum comprised of 21 member economies from throughout the Pacific Rim that aims to promote free trade throughout the Asia-Pacific region.

Malaysia has played host to APEC meetings from December 2019 until November 2020, marking the second occasion that it has hosted these meetings after its first time in 1998.

Vietnam joins French-speaking Africa in push for broader economic cooperation

Plenty of investment opportunities exist for Vietnamese firms in the 32 French-speaking nations in Africa, an area that boasts a large market and a total population of over 570 million people that is anticipated to develop into one of the world’s new economic development hubs in the time ahead.

Hoang Duc Nhuan, Vietnamese trade counselor in Algeria, Gambia, Mali, Niger, and Senegal, made the remarks during a recent online seminar aimed at discussing potential prospects for expanding economic and trade co-operation between the country and French-speaking territories in Africa.

Amid the global economic landscape and trade being seriously affected by the impact of the novel coronavirus (COVID-19) epidemic, the seminar enjoyed the participation of hundreds of agencies, businesses, and associations from both the nation and African states who are members of the International Orgnisation of the Francophonie (OIF).

According to data compiled by the Ministry of Industry and Trade, last year witnessed Vietnamese import and export turnover to the markets of 32 OIF members reach US$1.7 billion, a rise of 6.3%, with imports hitting US$2.8 billion, up 12% from the same period in 2018.

Meanwhile, statistics released by the General Department of Vietnam Customs indicate that during the 2015 to 2019 period, total two-way trade turnover between the country and OIF members increased from US$2.7 billion in 2015 to a figure of US$4.5 billion in 2019, representing 88% of overall trade turnover between Vietnam and Africa, with an average annual growth rate of 13.6%.

The value of import and export between the nation and the bloc makes up approximately 1.1% of its foreign trade globally. Most notably, Vietnamese trade exchanges with these countries focuses primarily on the 10 major partners, including the Ivory Coast, Ghana, Egypt, the Republic of Congo, Cameroon, Morocco, the Democratic Republic of the Congo (DRC), Togo, Mozambique, and Benin.

During the course of the event, African organisation and business representatives expressed their great appreciation for the country’s role and position in Southeast Asia, in addition to affirming their desire to further boost bilateral economic, trade, and investment ties with the nation. Indeed, the African side hailed the efforts of the Vietnamese Government to contain the COVID-19 pandemic in an effective manner as well as implementing solutions to post-pandemic economic recovery efforts.

As a means of rapidly recovering bilateral trade activities moving past the impact of COVID-19 and promoting stronger investment co-operation alongside two-way market development, many enterprises at the seminar showed a keen interest in a variety of aspects of future collaboration. This includes market access methods, product needs, payment methods, and risk prevention experience in the business co-operation process between firms from the two sides.                
Chekou Oussouman, chief representative of OIF's Asia-Pacific Regional Office in Hanoi, described the nation as a gateway for African businesses to gain entry into the Southeast Asian market. Similarly, African countries also represent attractive destinations for Asian businesses due to the Vietnamese influence.

Moving forward, both Africa and Asia have a wealth of opportunities whilst also having numerous similarities, such as young populations, diverse natural resources, rich cultures, and complementary economies. In particular, as the country is currently serving as ASEAN Chair 2020 at a time when the Francophone community is a partner for the bloc’s development, both sides want to reach the huge potential that exists for stronger economic and trade co-operation.

Upon addressing the seminar, Deputy Minister of Industry and Trade Cao Quoc Hung affirmed the nation’s recognition of the great importance of the co-operation relationship with the Francophone Community in Africa, pledging to progress with its contributions to the joint efforts for a stronger and increasingly united group of OIF members.

Many international organisations anticipate that Africa will soon become one of the world's new centres for economic development, Deputy Minister Hung noted.

Africa enjoys many opportunities for greater trade and investment co-operation with Vietnamese enterprises, with the nation being viewed as an important partner in the Asia-Pacific region for many African states due to its dynamically-developing economy that is connected to vast markets through numerous free trade agreements,.

Due to these factors, the country is ready to act as a bridge between the OIF bloc and the Asia-Pacific region through the implementation of the Francophone Economic Development Strategy, the Deputy Minister added.

According to Vietnamese trade counselor Nhuan, Africa in general and the French-speaking countries in this region in particular still have plenty of room for Vietnamese goods. Alongside normal trade, the continent is currently emerging as a potentially lucrative global investment destination.

This can be seen as many Vietnamese state-owned corporations and private enterprises have yielded positive results in their investment on the continent, with this being seen in the fields of oil and gas exploitation, telecommunications, hydropower, and wood processing, the trade official stated. 

Vietnam flower and gift market heats up ahead of Teachers’ Day

Sales promotion programs offered at supermarkets and online shops not only help customers easily buy things suitable to their needs, but also show their affection and love to teachers on this occasion.

As the Vietnamese Teachers’ Day [November 20] is fast approaching, the flowers and gift market is heating up with a variety of products offered at reasonable prices.

Many flower shops in Hanoi are selling diverse flower bouquets to meet customers’ preferences. A quick survey at these shops revealed demand for flowers in the next few days is set to rise by 10 – 20%.

At present, prices for a bouquet of ten lily flowers would vary from VND100,000 – 250.000 (US$4.31 – 10.78), up from VND50,000 – 100,000 (US$2.16 – 4.31) a few days ago.

Notably, Dalat rose prices now double compared to normal days to VND80,000 – 150,000 (US$3.45 – 6.47) for a bunch of ten; prices of Tay Tuu roses increase by VND20,000 – 40,000 (US$0.86 – 1.72) to VND50,000 – 80,000 (US$2.16 – 3.45).

“Over the past few days, many parents and students have ordered flowers to present to teachers, with prices of bouquets averaging from VND350,000 – 450,000 (US$15.09 – 19.4),” said Kim Oanh, a flower shop owner in Pham Ngoc Thanh street, Dong Da district.

Meanwhile, gift shops are also busy with a growing number of orders, ranging from purse, necktie, scarf, to cosmetic products such as perfume, shampoo, or make-up, which are later wrapped in colorful gift boxes.

A cosmetic seller in Thai Ha said during the Teachers’ Day, a package of shampoo – hair conditioner from brands of Clear, Dove, Enchanteur, Tresemme, Purite, Rejoice, or Double Rich, which are domestically produced, would be priced from VND300,000 – 700,000 (US$12.94 – 30.18), or skincare products from VND400,000 (US$17.25) and over.

Supermarkets and major online platforms such as Lazada, Shopee, Tiki are offering discounts of up to 50% for many types of gifts.

Director of Ha Dong Co.opmart Nguyen Thi Kim Dung said on the occasion of the Vietnamese Teachers’ Day, Co.opmart supermarkets are introducing combos of gift boxes from famous brands, such as Pantene, Elastine, Double Rich, Hazeline, Dove, Enchanteur, or Lux, among others, with prices from VND43,500 – 142,900 (US$1.88 – 6.16) per box.

At the same time, supermarkets also offer discounts of up to 40% for clothes, shirts, or decoration accessories as gift on this occasion.

“Sales promotion programs not only help customers to easily buy what suits their needs, but also show their affection and love to teachers on this occasion,” Dung noted.    

Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR  

 
 

Other News

.
Local auto industry needs support amid pandemic
Local auto industry needs support amid pandemic
BUSINESSicon  08/09/2021 

Domestic automobile manufacturers have urged the Ministry of Finance to revise criteria for production capacity so as to enjoy a preferential tax incentive policy for imported automobile parts.

Export outlook depends on virus control
Export outlook depends on virus control
BUSINESSicon  08/09/2021 

Vietnam's exports may reach as high as US$313 billion by the end of 2021, a 10.7 per cent increase year-on-year, only if the country manages to stop the spread of the novel coronavirus, according to a report by the Ministry of Industry and Trade. 

Authority warns about consumer lending amid pandemic
Authority warns about consumer lending amid pandemic
BUSINESSicon  08/09/2021 

The Ministry of Industry and Trade’s Department of Competition and Consumer Protection has recently warned consumers about signing consumer loan contracts.

Instant noodles recalled in Europe, manufacturers told to be cautious about use of ethylene oxide
Instant noodles recalled in Europe, manufacturers told to be cautious about use of ethylene oxide
BUSINESSicon  08/09/2021 

Vietnam does not have regulations about the use of ethylene oxide (EO) in agriculture production or limits on EO residue in food.

VN businesses need new measures for long-term fight against pandemic
VN businesses need new measures for long-term fight against pandemic
FEATUREicon  08/09/2021 

Businesses are bearing severe impacts from Covid-19 developments and social distancing campaigns.

Overseas Vietnamese firms are suppliers of Vietnamese goods to foreign markets
Overseas Vietnamese firms are suppliers of Vietnamese goods to foreign markets
BUSINESSicon  07/09/2021 

The overseas Vietnamese business community is an important distribution channel to bring Vietnamese goods to the world market, said Minister of Industry and Trade Nguyen Hong Dien.

Welcoming the 'upgraded' CAEXPO
Welcoming the 'upgraded' CAEXPO
BUSINESSicon  07/09/2021 

The 18th China-ASEAN Expo (CAEXPO) will kick off in Nanning, China as scheduled, and here comes the "CAEXPO Moment" again.

Bank stocks decline sharply during pandemic
Bank stocks decline sharply during pandemic
BUSINESSicon  07/09/2021 

Banking stocks have continuously corrected since the beginning of July, with market analysts forecasting the decline in bank asset quality as due to the COVID-19 pandemic.

VIETNAM BUSINESS NEWS SEPTEMBER 7
VIETNAM BUSINESS NEWS SEPTEMBER 7
BUSINESSicon  07/09/2021 

Market extends rally after long holiday on pillar stocks

Deposit interest rates fall, deposits drop to 10-year low
Deposit interest rates fall, deposits drop to 10-year low
BUSINESSicon  06/09/2021 

Commercial banks continued easing deposit interest rates in late August, causing deposits at banks to fall to a 10-year low.

45-day social distancing has hurt Hanoi's economy but public health has been protected
45-day social distancing has hurt Hanoi's economy but public health has been protected
FEATUREicon  07/09/2021 

Hanoi’s economy has suffered heavily from social distancing and travel restrictions over the last 45 days, but in exchange the Covid-19 outbreak has been under control.

All-round report on Vietnam’s startup ecosystem to be unveiled
All-round report on Vietnam’s startup ecosystem to be unveiled
BUSINESSicon  06/09/2021 

The Vietnam Open Innovation Landscape Report 2021, the most comprehensive and up-to-date overview of the local startup and innovation ecosystem so far, is set to be released in December.

Vietnam's steel sales increase due to exports
Vietnam's steel sales increase due to exports
BUSINESSicon  06/09/2021 

Steel enterprises have boosted exports while facing difficulties in domestic consumption due to the COVID-19 outbreak, according to the Vietnam Steel Association (VSA).

Pro-competitive policies in logistics sector can help Vietnam recover from the pandemic
Pro-competitive policies in logistics sector can help Vietnam recover from the pandemic
BUSINESSicon  06/09/2021 

Pro-competitive policies can help Vietnam continue its progress in logistics sector and help the country recover quickly from the impacts of the pandemic, the Organisation of Economic Co-operation and Development said in its two latest reports.

Foreign investors withdraw cash, but will return soon: experts
Foreign investors withdraw cash, but will return soon: experts
BUSINESSicon  07/09/2021 

Market experts forecast that foreign investors will undertake strong net buying in the fourth quarter of this year to prepare for next year’s economic recovery after large-scale immunisation campaigns.

VIETNAM BUSINESS NEWS SEPTEMBER 6
VIETNAM BUSINESS NEWS SEPTEMBER 6
BUSINESSicon  06/09/2021 

E-commerce sales in Vietnam expected to reach $56 billion in next five years

E-commerce platforms resume delivery in HCM City as ban is lifted in red zones
E-commerce platforms resume delivery in HCM City as ban is lifted in red zones
BUSINESSicon  06/09/2021 

E-commerce platforms have resumed deliveries in HCM City and some of the city’s extremely high risk areas (red zones) since August 30, a week after they were banned.

Mooncake makers face unprecedented difficulties
Mooncake makers face unprecedented difficulties
BUSINESSicon  06/09/2021 

Online sales are being implemented by mooncake businesses with a variety of products from the common to the high-end.

Vietnam manufacturing output declines on Covid-19 outbreak
Vietnam manufacturing output declines on Covid-19 outbreak
BUSINESSicon  05/09/2021 

Vietnam’s manufacturers are facing an uphill task to keep operation amid restriction measures.

VIETNAM BUSINESS NEWS SEPTEMBER 5
VIETNAM BUSINESS NEWS SEPTEMBER 5
BUSINESSicon  05/09/2021 

Ports see increase in goods handling despite COVID-19

 
 
 
Leave your comment on an article

OR QUICK LOGIN