VIETNAM BUSINESS NEWS JUNE 11

Russia becomes largest pork supplier to Vietnamese market

VIETNAM BUSINESS NEWS JUNE 11

Russia earned 130.5 million USD from exporting 63,500 tonnes of pork and viscera to Vietnam in 2020, equivalent to 25 percent of Vietnamese pork imports, thereby becoming the largest pork supplier to the Southeast Asian nation.

Vietnam’s total import volume of pork last year rose 44 percent to 270,000 tonnes.

The Ministry of Agriculture of Russia has said that the export of meat and meat products has so far not impacted food prices in Russia.

The Russian ministry said that pork prices will not increase in 2021 thanks to abundant domestic supply and reduced breeding cost.

To meet the high domestic demand for meat, Vietnam has been importing other types of meat along with pork.

In 2019, the spread of African swine fever throughout Asia caused declines of 11.5 percent and 12 percent in terms of the number of cattle and pork output, respectively.

China remains key market for Vietnamese garments and textiles

China is anticipated to become a major market for Vietnamese garments and textiles moving forward due to the country facing numerous challenges when exporting items to the United States, the EU, and Japan this year.

This information was unveiled in a document unveiled at the recent annual general meeting of shareholders by the Vietnam National Textile and Garment Group (Vinatex).

Moving forward, China will not focus on producing apparel and textiles in line with its five-year strategy, thereby turning the northern neighbour into a major consumer of Vietnamese textiles and garments.

During  the first quarter of the year, local garment and textile exports to China witnessed robust growth among the five major markets, achieving the same export turnover as that of EU in the process.

Furthermore, the US remains the largest Vietnamese export market with a growth rate of 5.9% in the first quarter. During the remainder of the year, the US market is expected to bounce back thanks to the implementation of a stimulus package of US$1.9 trillion coupled with the mass rollout COVID-19 vaccination scheme.

The country’s garments and textiles to the EU and Japan will continue to face difficulties in the near future due to the EU facing the risk of a third wave of COVID-19, while the Japanese economy has not shown any signs of recovery, according to Vinatex.

McKinsey's projection anticipate that the global apparel and textile industry will rebound by the third quarter of next year, or perhaps later in the fourth quarter of 2023.

Currently, Vietnamese garment enterprises have sufficient orders until the end of the second quarter, although prices remain low.

Vinatex predicts that the garment and textile sector will recover one year ahead of scheduled compared to the global forecast.

The industry is striving to achieve a revenue of VND17,365 billion this year, up 17% compared to 2020.

Securities firms optimistic but warn of short-term corrections

Even though the stock market is expected to continue rising, securities firms still warned of some corrections in the short-term due to profit-taking pressure.

With the market inching higher for four straight months, Mirae Asset Securities (Vietnam) is optimistic about the country's stock market outlook, the securities firms said in its recent report.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) had jumped 18.52 percent in the first five months. The index continuously hit new records in May despite rising worries over the fourth outbreak of COVID-19.

In its basic scenario, Mirae Asset maintained its expectation of this year's earnings per share (EPS) growth at 28 percent, lower than the market's positive level of 30 percent. With the strong rally, bullish sentiment and rising liquidity, the company expected that the VN-Index will break over 1,500 points, the most positive scenario, this year.

The market driving forces include the optimism of investors in containing the pandemic, stimulus packages, economic growth and business incomes that are not heavily affected by COVID-19, Mirae Asset added.

However, the securities firm sees some corrections in the short-term in June due to profit-taking pressure.

Similarly, Viet Dragon Securities Corporation said that the country's stock market will keep its rally but face some fluctuations this month.

The biggest support is the participation of individual investors, the company added.

Meanwhile, it also warned about the overloading issues on HoSE as the problems occurred since the beginning of June. And the rising COVID-19 cases might have more negative effects on business results.

"The profit growth in 2021, which may be lower-than-expected regarding the ongoing pandemic and social distancing orders, can be a negative factor for the market in July or the third quarter," Viet Dragon said.

It also expected that the VN-Index will move in a range of 1,303 - 1,421 points.

On the other hand, according to Yuanta Securities Vietnam One Member Limited Company, the VN-Index's price to earning ration (P/E) in the last four quarters is reaching the firm's target of 18x, meaning the market is gradually entering the more expensive period.

It also said that the VN-Index might start to correct at the closest supportive territory of 1,283 - 1,300 points.

Yuanta assessed that there is not much room for bank stocks and steel makers' stocks to grow in the short and mid-term. Therefore, it recommended investors consider continuing to hold and limit long positions, or maybe consider selling a part of these stocks.

On June 9, the VN-Index rose nearly 1 percent to 1,332.9 points after falling for two straight sessions./.

Vietnam shares economic development experience with Venezuela

A webinar on the role of the private economic sector and experience in foreign investment management of Vietnam in Doi moi (renewal) process took place in Venezuela on June 9.

The event, held by the Embassy of Vietnam in Venezuela together with the Venezuela-Vietnam Chamber of Commerce (CAVENVIET), aimed to share Vietnam’s achievements in economic restructuring in the Doi moi process with the Latin American nation.

Addressing the event, President of the Vietnam-Venezuela Friendship Association Associate Professor Nguyen Viet Thao said that over 1.4 million private businesses were set up in Vietnam between 2016 and 2020.

The private sector currently is the largest contributor to the country’s gross domestic product and present 30 percent to the State budget.

He added that to foster the private economic sector’s development in the new context, the fifth plenum of the 12th Party Central Committee issued a resolution on turning the sector into an important driving force of the socialist-oriented market economy, which paves the way for the amendments and supplements of relevant regulations in keeping with the improvements of investment climate.

After 35 years of Doi moi, Vietnam attracted nearly 400 billion USD in foreign direct investment across over 30,000 projects from 130 countries and territories. Close to 70,000 FDI firms are operating in about 300 industrial parks./.

Canada launches fourth exclusion inquiry on imported steel products

The Canadian International Trade Tribunal (CITT) has issued a notification on the launching of inquiry for exclusion requests concerning imports of a number of steel products originated from some countries, including Vietnam.

According to the Trade Remedies Authority under the Ministry of Industry and Trade, the inquiry targets exporters of steel plate and stainless steel wire subject to anti-subsidy tariff following an anti-dumping investigation launched by Canada in 2018.

In the period between May 13 to October 24, 2021, tariff rate quotas (TRQ) volumes available will be 54,699 tonnes of heavy steel plate and 1,532 tonnes of stainless steel wire. During this time, the surtax on over-quota imports will decrease to 10 percent for heavy steel plate and 5 percent for stainless steel wire.

This is the fourth time that the CITT has launched an exclusion inquiry on the case.

The tribunal has uploaded forms for exclusion requests and ideas of relevant parties on its website. Businesses can also appeal the opinions of Canadian domestic producers.

The Trade Remedies Authority asked steel producers and exporters to discuss with their Canadian partners and submit their ideas to the authority by June 13./.

Can Tho shrugs off COVID, achieves impressive growth

In the first five months of the year, the Mekong city of Can Tho achieved impressive growth in industrial production, retail sales and tourism despite the effects of COVID-19.

Industrial production grew by more than 9 percent year-on-year, and total retail sales and services grew by nearly 15 percent to around 63.1 trillion VND (2.7 billion USD).

The tourism sector is recovering, with its revenues rising by 18 percent to 1.25 trillion VND. The number of visitors grew by nearly 58 percent.

Investment in the city tripled during the period to 1.3 billion USD as it ranked third in the country’s FDI list.

However, only a fraction of the proposed public spending has been disbursed, one of the city’s biggest problems for many years now.

Its exports too fell.

Tran Viet Truong, chairman of the municipal People’s Committee, said that the city has been focusing on both reviving its economy and staying safe from the pandemic.

He instructed official agencies to focus on disbursing public spending funds, acquiring and clearing lands for investment projects and approving project carefully to stop unnecessary changes later.

Can Tho aims to become a major industrial hub and the Mekong Delta’s leading one by 2025, and targets economic growth of 7.5-8 percent a year until 2025.

It is focusing on restructuring its four key sectors, foodstuff and beverage processing, chemicals; machinery and electronics, and electricity generation.

It is also seeking to create a favourable environment for investment through support policies and administrative reforms, and facilitating industrial start-ups./.

HCM City flower market to be reopened despite social distancing

Dam Sen Flower Market in District 11, HCM City, will be reopened for three days despite ongoing social distancing.

District 11 People's Committee has announced that they had asked Dam Sen Services Co-operatives to persuade traders to close businesses temporarily since June 4. 50 members of the co-operatives have closed their shops.

However, Da Lat Flower Association asked the District 11 People's Committee and the Department of Industry and Trade to reopen the Dam Sen Flower Market from June 7 to 14 to help create an outlet for the flowers in Lam Dong Province. The association also asked to reopen the flower market for Doan Ngo Festival from June 11 to 17.

After gathering opinions, District 11 authorities said they had asked Ward 5 People's Committee to build a plan to reopen the flower market from June 11 to 13. Dam Sen Services Co-operatives made a commitment to follow preventive measures.

District 11 has four positive cases. The authorities haven't been able to find the patient 0s in two community cases.

According to the Department of Industry and Trade, besides reopening Dam Sen Flower Market for three days, they also asked wholesale markets like Binh Dien, Thu Duc and Ho Thi Ky to receive more flowers from Lam Dong to help the gardeners there. The department will also provide help for traders to move transactions online.

Tran Cong Minh, a resident in District 11, said flowers were not an essential commodity so the local authorities should reconsider, especially when the Covid-19 outbreak in HCM City hasn't been curbed.

"I know the traders and farmers are having lots of difficulties but it's too risky to open the flower market now. The government should provide financial help to the traders and farmers instead of opening the market," he said.

Another resident, Nguyen Thanh Huong, said not many people want to buy flowers during these times anyway.

"If the flower market is opened, the managers must be strict and careful in monitoring all activities to prevent the virus from spreading," she said.

Securities firms optimistic about the market, but warn of short-term corrections

Even though the stock market is expected to continue rising, securities firms still warned of some corrections in the short-term due to profit-taking pressure.

With the market inching higher for four straight months, Mirae Asset Securities (Vietnam) is optimistic about the country's stock market outlook, the securities firms said in its recent report.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) had jumped 18.52 per cent in the first five months. The index continuously hit new records in May despites rising worries over the fourth outbreak of COVID-19.

In its basic scenario, Mirae Asset maintained its expectation of this year's earnings per share (EPS) growth at 28 per cent, lower than the market's positive level of 30 per cent. With the strong rally, bullish sentiment and rising liquidity, the company expected that the VN-Index will break over 1,500 points, the most positive scenario, this year.

The market driving forces include the optimism of investors in containing the pandemic, stimulus packages, economic growth and business incomes that are not heavily affected by COVID-19, Mirae Asset added.

However, the securities firm sees some corrections in the short-term in June due to profit-taking pressure.

Similarly, Viet Dragon Securities Corporation said that the country's stock market will keep its rally but face some fluctuations this month.

The biggest support is the participation of individual investors, the company added.

Meanwhile, it also warned about the overloading issues on HoSE as the problems occurred since the beginning of June. And the rising COVID-19 cases might have more negative effects on business results.

"The profit growth in 2021, which may be lower-than-expected regarding the ongoing pandemic and social distancing orders, can be a negative factor for the market in July or the third quarter," Viet Dragon said.

It also expected that the VN-Index will move in a range of 1,303 - 1,421 points.

On the other hand, according to Yuanta Securities Vietnam One Member Limited Company, the VN-Index's price to earning ration (P/E) in the last four quarters is reaching the firm's target of 18x, meaning the market is gradually entering the more expensive period.

It also said that the VN-Index might start to correct at the closest supportive territory of 1,283 - 1,300 points.

Yuanta assessed that there is not much room for bank stocks and steel makers's stocks to grow in the short and mid-term. Therefore, it recommended investors consider continuing to hold and limit long positions, or maybe consider selling a part of these stocks.

On Wednesday, the VN-Index rose nearly 1 per cent to 1,332.9 points after falling for two straight sessions. 

M&As to return to property market: experts

The property market is expected to recover and become more vibrant in 2021-22 when COVID-19 is controlled and many mergers and acquisitions are carried out.

Many studies by research companies have indicated M&A activities will be back on track in 2021.

Around 42 per cent of survey respondents predicted M&A to be worth US$3-4 billion this year.

Some 26 per cent expected it to be $4-5 billion.

Of the rest, 24 per cent expected it to be worth $3 billion while 8 per cent plumped for $5 billion.

Analysts said M&A activities in the property sector would mostly revolve around housing in big cities like Ha Noi and Ho Chi Minh City and their neighbouring provinces.

In fact, many developers have increased their land holdings through M&A projects, with some giant players into M&A projects every year.

Viet Nam Investment Review reported that Novaland Group has spent thousands of billions dong on M&A in recent years.

By the end of 2020 its land holdings had jumped to 5,400ha thanks to the M&A activities.

A Novaland executive, speaking at an M&A event last year, said his company had spent nearly $1 billion on acquiring lands in Dong Nai Province.

In 2020, The Group earned thousands of billions dong from selling projects, he said.

This year, according to Viet Nam Investment Review, Novaland plans to sell a major project in Ho Chi Minh City to a giant developer from the north and a company in Ho Chi Minh City after hitting the expected profit figure.

This M&A proposal is valued at about VND 40 trillion, and will fetch the company a profit of VND 8 trillion.

The deal will be completed this year and the payment will be made in 2022.

The profit will be used to develop its three big hospitality projects, NovaWorld Ho Tram, NovaWorld Phan Thiet and Aqua City.

Novaland’s annual report said the company possesses nearly 700ha of land in Ho Chi Minh City , 100ha in the east, enough to develop an urban area like Lakeview City.

According to experts, in addition to housing, industrial property will be another sector in which there will be numerous M&A deals this year.

A note from property consultant Savills said in May the M&A market saw some major deals with Hong Kong and Singapore investors pouring money into Quang Ninh and Bac Giang provinces.

Another M&A deal involved ESR Cayman Ltd, a real-estate logistics platform in the Asia Pacific, and BW Industrial Development Joint Stock Company, for developing the 240,000sq.m in the My Phuoc 4 Industrial Zone.

The KCN Viet Nam Industrial Joint Stock Company has paid US$300 million to buy 250ha of industrial land.

An analyst at CBRE said M&As are continuing in property market as clearly shown by the fact that many local and foreign investors have become shareholders in real estate companies.

Experts said the property market retains its potential for high profits and would continue to develop.

Deal signed to promote farm produce sale via digital platforms

A memorandum of understanding was signed in Ha Noi on Tuesday to carry out a programme on facilitating digital transformation and assisting small- and medium-sized enterprises, cooperatives and business households in the consumption of farm produce in the country.

Signatories were the Ministry of Planning and Investment (MoPI)’s Agency of Enterprise Development, the Ministry of Agriculture and Rural Development’s Agro Processing and Market Development Authority, the Viet Nam Cooperative Alliance’s Centre for Trade Promotion and Investment, and Grab Vietnam.

In the immediate future, the programme will help with farm produce sales via digital platforms in localities hit by COVID-19 or those under lockdown, including experimenting on Grab.

Practical activities will be also held to raise awareness of digital transformation among businesses, cooperatives, business households and farmers.

The activity is also part of the programme to assist firms in digital transformation for the 2021-25 period launched by the MoPI.

Earlier, Grab announced the GrabConnect project to connect farmers with consumers nationwide to consume farm produce and safe local specialties.

GrabConnect also launched the first scheme to help consume 300 tonnes of Luc Ngan lychees in Bac Giang Province via Grab’s ecological system. 

Vietnamese overseas investment triples

Vietnamese firms poured US$546.7 million into overseas projects in the first five months of 2021, more than triple the figure of the same period last year.

Of the sum, $144 million was from 21 newly-licensed projects, down 11.3 per cent year-on-year, according to the Ministry of Planning and Investment.

Meanwhile, $403.2 million was pumped into nine existing projects, surging 22-fold year-on-year, the ministry said.

A major part of the capital outflow - $271 million - was poured into the science-technology sector, accounting for 49.5 per cent of the total. The wholesale and retail sector came next with $148.4 million or 27 per cent, following by the agro-forestry-fisheries sector and auxiliary services.

Fifteen countries received investment from Viet Nam from January to May with the US the top receiver with $303 million, holding the lion’s share of 55.4 per cent. It was followed by Cambodia with $89.1 million or 16.3 per cent. Next were Canada and France with $32.1 million and $32 million, respectively.

Vietnamese firms have increased their overseas investments in recent years to expand their global reach.

As of May 20, Viet Nam had 1,420 valid overseas projects worth a total of nearly $22 billion, mainly in the sectors of mining, with 36.4 per cent of total capital, while agro-forestry-fisheries had 15.3 per cent.

Laos was the largest receiver for Viet Nam’s overseas investment, making up 24 per cent of the total capital, followed by Cambodia (13.1 per cent) and Russia (13 per cent). 

Goods transport to HCM City not much affected by pandemic

Transport of all kinds of goods into HCM City remains relatively unaffected, with little or no congestion at entrances despite its COVID-19 semi-lockdown.

Its wholesale markets are getting a steady supply.

 

The Thu Duc Wholesale Market is in fact getting more fresh farm produce than usual.

COVID inspection checkpoints have been set up at the city’s gates and places where wholesale markets are located. Trucks transporting goods are disinfected there, and drivers are tested.

Trucks coming from provinces with COVID-19 have separate parking and disinfecting areas.

HCM City relies on other provinces and cities for 70 per cent of its agricultural produce.

Nguyen Nguyen Phuong, deputy director of the Department of Industry and Trade, said his department has been instructing wholesale markets to ensure that goods are delivered to smaller markets in an efficient manner.

But farmers in other provinces are suffering due to HCM City’s COVID closure.

Many in Da Lat City grew flowers since the beginning of March to supply to the Dam Sen Flower Market in HCM City’s District Tet Doan Ngo, an annual festival held on the fifth of the fifth lunar month, which falls on June 14 this year.

But after the city announced that the flower market would be closed from June 3 for social distancing, many farmers are struggling to sell their flowers.

Duy Tinh, a farmer in Da Lat, told Sai Gon Giai Phong newspaper that he has been growing flowers for the market, and it would be very difficult to sell them elsewhere, and he could incur massive losses.

The Da Lat Flower Association and the Lam Dong Province Department of Industry and Trade have called on HCM City to consider open the market until June 14, when the festival would have ended.

Fish farmers in Ba Ria – Vung Tau Province are also suffering since many restaurants in HCM City are closed. With their unsold fish continuing to grow in size, so do their feeding expenses.

The HCM City Department of Industry and Trade is working with provinces to encourage local businesses and customers to buy seasonal produce from other provinces and support struggling farmers.

Prime Minister Pham Minh Chinh last Saturday called on provinces to monitor the pandemic but at the same time make sure economic activities are not affected.

Some are getting a bit too extreme with their preventive measures, affecting supply chains, he noted. 

Binh Dinh proposes withdrawing two local ports from planning

The People’s Committee of the southern province of Binh Dinh has proposed the Ministry of Transport and the Viet Nam Maritime Administration withdraw two local ports from master planning for seaport development in 2021-30.

De Gi and Tam Quan ports were proposed to be removed from the planning and instead developed into fishing ports while the lagoon areas would be developed into storm shelters for fishing vessels.

The provincial People’s Committee said for many years, De Gi and Tam Quang estuaries have had low levels of water and narrow channels only suitable for fishing vessels. Currently, no cargo is transported via these ports.

Removing these two ports out of the planning would not cause any problems as no investment projects were being carried out at the ports, the province said.

Dang Dinh Dao, former Director of the Institute for Economics and Development Studies, said the proposal had set an example for other localities in making planning in the context that every coastal locality wanted seaports without paying adequate attention to the natural, social, economic or environmental conditions.

A lot of planning had proven to be unrealistic, Dao said, adding that it would be a big problem if every locality had an international seaport and did not pay attention to regional links or master planning.

He said Viet Nam had more than 20 international seaports but none of them had received the investment to reach international standards.

He pointed out that there were a number of lessons. The planning of the wholesale market was an example. Many wholesale markets within planning were built but had not been put into operation due to problems attracting sellers and buyers.

Planning must be innovated, not only for seaports but also for other infrastructure developments, he said.

“It’s time localities closely work with central agencies to develop realistic planning which ensures consistency with other socio-economic planning," he said.

Viet Nam is developing new master planning for seaports in 2021-30 with a vision to 2050 to promote economic development.

There are 286 ports across the country with a total wharf length of 96km, more than 4.5 times longer than in 2000. The seaport system handled a total cargo volume of more than 692 million tonnes in 2020, 8.4 times higher than 2000. 

Can Tho shrugs off COVID, achieves impressive growth

In the first five months of the year, Can Tho City achieved impressive growth in industrial production, retail sales and tourism despite the effects of COVID-19.

Industrial production grew by more than 9 per cent year-on-year, and total retail sales and services grew by nearly 15 per cent to around VND63.1 trillion (US$2.7 billion).

The tourism sector is recovering, with its revenues rising by 18 per cent to VND1.25 trillion. The number of visitors grew by nearly 58 per cent.

Investment in the city tripled during the period to $1.3 billion as it ranked third in the country’s FDI list.

However, only a fraction of the proposed public spending has been disbursed, one of the city’s biggest problems for many years now.

Its exports too fell.

Tran Viet Truong, chairman of its People’s Committee, said that the city has been focusing on both reviving its economy and staying safe from the pandemic.

He instructed official agencies to focus on disbursing public spending funds, acquiring and clearing lands for investment projects and approving project carefully to stop unnecessary changes later.

Can Tho aims to become a major industrial hub and the Mekong Delta’s leading one by 2025, and targets economic growth of 7.5-8 per cent a year until 2025.

It is focusing on restructuring its four key sectors, foodstuff and beverage processing, chemicals; machinery and electronics, and electricity generation.

It is also seeking to create a favourable environment for investment through support policies and administrative reforms, and facilitating industrial start-ups. 

Local chemical manufacturers ready to help prevent COVID-19

As the number of COVID-19 cases has surged since the fourth wave hit the country in late April, the need for chemical products like oxygen and disinfectants have increased, requiring chemical producers to ramp up production to meet market demand.

Viet Nam recorded a total of over 6,000 local COVID-19 in the current fourth wave of infections since late April to date, while the death toll rose to 55, most of whom with serious underlying illnesses.

Bac Giang remains the biggest hot spot in the country in this wave with over 3,300 infections, followed by the outbreak in Bac Ninh with caseload surpassing 1,100.

To respond quickly in case the number of patients keeps surging, medical units, hospitals, airlines, and industrial parks have stored oxygen and other important chemical products.

Local chemical manufacturers have increased their inventories in order to ensure products are available to meet the market needs.

For example, oxygen inventories in the warehouse of Industrial Gas and Welding Electrode JSC (Sovigaz), a leading state-owned company in producing oxygen, industrial gas, rod electrodes and chemicals in Viet Nam, are 1.5 times higher than that of the same period last year, the company said.

With the current nationwide consumption of 3,000 – 4,000 tonnes of oxygen per month, the chemical manufacturer said that it could meet the whole country's demand without increasing the price as its production capacity is 7,000 tonnes per month, double the current demand.

The company’s oxygen supply accounts for over 60 per cent of the total market share with nearly 100 big hospitals, such as Cho Ray Hospital and Tu Du Hospital in HCM City, or Vietnam-Czechoslovak Friendship Hospital in Hai Phong City, using its products.

One of the two production lines of Sovigaz can supply 180 tonnes of oxygen per day to the market. These production lines operate continuously throughout the year and only stop work for 7 - 10 days for maintenance.

“Sovigaz even had to refused to supply products to some enterprises collecting medical equipment to sell to the Indian market as it prioritises the domestic market,” Trinh Anh Phong, General Director of Sovigaz, said.

"Make it your game"

Disinfectants, especially Chloramine B, are also crucial to the fight against the spread of COVID-19.

South Basic Chemicals JSC, a leading inorganic chemical manufacturer in Viet Nam and a member of Viet Nam National Chemical Group, has committed to ensuring output to meet the rising demand for the chemical.

It is the first Vietnamese company to complete research and successfully produce Chloramine B, which has been licensed by the Ministry of Health for circulation.

Previously, Chloramine B was imported from the European Union and China. But inflated prices due to disruptions in supply chains around the world during the outbreak of COVID-19 pushed domestic companies to start producing the chemical.

Currently, South Basic Chemicals’ Chloramine B price is around VND200,000 (US$8.7) per kilo, which is only 60 per cent of the cost of imported goods.

As most hospitals and schools in Viet Nam use Chloramine B to disinfect and clean surfaces, this is an opportunity for developing the product and promoting the use of Made-in-Viet Nam goods.

“At the moment, the company can produce one tonne of Chloramine B per day and we can raise production capacity, if necessary, to meet market demand,” South Basic Chemicals wrote in an email to Viet Nam News.

Despite the infections causing many difficulties for the company's production activities, it still finds solutions to overcome those challenges.

“Our employees have to divide into shifts to work online, while production and business activities must comply with the 5K rules which are ‘Khau trang’ (face mask), ‘Khu khuan’ (disinfection), ‘Khoang cach’ (distance), ‘Khong tu tap’ (no gathering), and ‘Khai bao y te’ (health declaration),” the company said.

“At the same time, we diversify input materials' sources to reduce risk of disruption.”

Sovigaz, a member of Viet Nam National Chemical Group, also guarantees to supply enough chemical products, including Chloramine B, to meet demand of preventing COVID-19, as well as commit to maintaining the price.

If cases continue to rise, it will be necessary to mobilise all medical resources, especially equipment for prevention and disinfection, as well as oxygen tanks and ventilators.

Therefore, the success of domestic enterprises in producing disinfectant products to replace imported goods and the control of sources of oxygen are playing an important part in the fight against the COVID-19 pandemic.

However, Deputy Prime Minister Vu Duc Dam, head of the National Steering Committee for COVID-19 Prevention and Control, recently warned that Viet Nam should not let its guard down, saying that “we can’t afford to be negligent even when we have fully controlled our domestic medical resources at the moment."

On the stock market, Sovigaz (SVG) and South Basic Chemicals (CSV) are listed on UPCOM and on the Ho Chi Minh Stock Exchange (HoSE), respectively.

While SVG shares closed yesterday at VND9,200 per share, up nearly 70.4 per cent compared to the beginning of 2021, CSV shares were traded at VND28,000 per share, down slightly 3.78 per cent. 

Ben Tre’s shrimp sector targets production value of $1 billion by 2025

The production value of the shrimp industry in the Mekong Delta province of Ben Tre aims to increase by an average of 41.1 per cent each year to 2025 and reach US$1 billion.

According to a plan to develop the sector, issued recently by the provincial People’s Committee, the locality will develop 4,000 ha of brackish water shrimp aquaculture areas applying high technology by 2025, to promote the sustainable development of the fisheries economy and the coastal province’s socio-economic development.

Chairman of the provincial People’s Committee Tran Ngoc Tam said Ben Tre aims to modernise its industrialisation-oriented marine shrimp farming sector and turn it into a large commodity production sector with high levels of competitiveness, productivity, and quality, creating breakthroughs in the stable and sustainable development of the fisheries economy and, most importantly, contributing to the province’s GDP growth.

Local authorities have implemented solutions such as re-organising production, improving the quality of young marine shrimp, prompting the research and application of science and technology in production, developing infrastructure, managing the environment, and developing shrimp processing activities.

Attention will be paid to developing concentrated and large raw material production areas and expanding effective aquaculture models to help local farmers improve their earnings.

According to the Deputy Director of the provincial Department of Agriculture and Rural Development Nguyen Van Buoi, Ben Tre currently has nearly 1,700 ha of brackish water aquaculture areas applying high technology, with an annual average yield of 36 tonnes per ha and profit of VND2.1-VND2.4 billion ($91,400-$104,560) per ha per year.

Brackish water shrimp farming has been developing strongly in Ben Tre, especially intensive and semi-intensive shrimp cultivation.

According to the department, as of 2020, the locality had exploited 45,747 ha of aquaculture area out of 50,000 ha of potential aquaculture area, including 36,000 ha of intensive and semi-intensive marine shrimp farming areas, with total production reaching some 70,000 tonnes.

Infrastructure in the province’s aquaculture areas has been gradually improved, especially road and irrigation networks, basically meeting current demand. 

Developing disease-free zones helpful in exporting animal products

Forming disease-free farming zones is believed to be critical in exporting livestock products given the fact that the number of such zones in Vietnam that meet the World Organisation for Animal Health (OIE) standards remains modest.

The country exported 2,150 tonnes of meat and related products worth 6.95 million USD in April, up 27.1 percent in volume and 3.7 percent in value compared to March, with Hong Kong (China), mainland China, and Thailand among the main destinations, data from the General Department of Vietnam Customs shows.

The Cong Thuong (Industry & Trade) newspaper cited Nguyen Van Long, Deputy Director of the Department of Animal Health at the Ministry of Agriculture and Rural Development, as saying that Vietnam must comply with international regulations to export animal products, including those set by the World Trade Organisation (WTO) and the OIE.

In particular, exports of animals and related products can only come from countries and territories that have farming establishments and zones free of disease and ensure biological safety.

As of May, Vietnam had 2,288 closed farming establishments and zones but these only satisfy Vietnamese standards, with none meeting OIE requirements, Long pointed out.

He added that as outbreaks of dangerous disease are spreading, many countries have set up strict requirements on imported fresh products. Meanwhile, Vietnam faces certain difficulties in organising safe animal farming, especially in terms of disease control, monitoring of farming zones, and grassroots safety chains.

In the recent past, authorities have stepped up negotiations on animal product exports with some countries, Long said, noting that to secure smooth exports the most important issue now is that such products hail from disease-free zones meeting OIE rules.

To do this, it is firstly necessary to exert sound control over disease outbreaks and minimise the risk from animal disease nationwide. A national programme for monitoring and certifying animal products should also be carried out to pave the way for exporting qualified products, he said.

There are 15 disease-free zones around the country at present, and coordination with localities is needed to help such zones under Vietnamese standards meet OIE requirements.

Long recommended that cities and provinces devise plans to form and maintain disease-free animal farming zones while paying attention to animal husbandry./.

Vietnam footwear exports to EU grow

Thanks to the preferential tariffs under the EU-Vietnam Free Trade Agreement, footwear exports to the bloc’s 27 member countries increased by 19.2 percent year-on-year in the first quarter of 2021.

Overall exports, mainly of aquatic products, textile-garment, footwear, and farm produce, were worth nearly 4.8 billion USD.

The importing markets were mostly countries with ports and distribution and transhipment centres such as Belgium, Germany, Netherlands, and France.

The EVFTA, which took effect in August last year, has opened up great export opportunities to a market with a GDP of 15 trillion USD for Vietnamese companies.

The EU was Vietnam's fourth largest market with purchases of 43.7 billion USD last year.

To enjoy the tariff preferences, leather goods and footwear need to comply with the rules of origin and get a EUR.1 Certificate of Origin.

Some 32 – 34 percent of exports benefited by getting the certificate, indicating that Vietnamese businesses and goods are increasingly capitalising on concessionary tariffs in FTA partner markets, the Ministry of Industry and Trade said.

It said that between August 1 last year, when the EVFTA took effect, and April 4, authorised agencies in Vietnam issued 127,300 certificates of origin to enable exports worth nearly 4.8 billion USD.

The country has become the “footwear factory” of the world, while its own market has a population of more than 96 million.

But the interruption of the global supply chain by the Covid-19 pandemic has caused alarm in the Vietnamese leather and footwear industry since it is heavily dependent on raw material imports.

To develop sustainably and make the most of tariff incentives and opportunities brought by the EVFTA and Comprehensive and Progressive Agreement for Trans-Pacific Partnership, leather and footwear businesses need to develop domestic sources or diversify foreign sources.

Sixty percent is imported from China, according to Phan Thi Thanh Xuan, general secretary of the Vietnam Leather, Footwear and Handbag Association (Lefaso).

Many businesses have started to look for raw materials in other markets such as India, Europe, Singapore, and Japan.

The pandemic remains a major hurdle, experts said, but if enterprises work hard to find partners and improve their competitiveness, the opportunities remain huge./.

Viet Nam footwear exports to EU grows

Thanks to the preferential tariffs under the EU-Vietnam Free Trade Agreement, footwear exports to the bloc’s 27 member countries increased by 19.2 per cent year-on-year in the first quarter of 2021.

Overall exports, mainly of aquatic products, textile-garment, footwear, and farm produce, were worth nearly US$4.8 billion.

The importing markets were mostly countries with ports and distribution and transhipment centres such as Belgium, Germany, Netherlands, and France.

The EVFTA, which took effect in August last year, has opened up great export opportunities to a market with a GDP of $15 trillion for Vietnamese companies.

The EU was Viet Nam's fourth largest market with purchases of $43.7 billion last year.

To enjoy the tariff preferences, leather goods and footwear need to comply with the rules of origin and get a EUR.1 Certificate of Origin.

Some 32 – 34 per cent of exports benefited by getting the certificate, indicating that Vietnamese businesses and goods are increasingly capitalising on concessionary tariffs in FTA partner markets, the Ministry of Industry and Trade said.

It said that between August 1 last year, when the EVFTA took effect, and April 4, authorised agencies in Viet Nam issued 127,300 certificates of origin to enable exports worth nearly $4.8 billion.

The country has become the “footwear factory” of the world, while its own market has a population of more than 96 million.

But the interruption of the global supply chain by the Covid-19 pandemic has caused alarm in the Vietnamese leather and footwear industry since it it is heavily dependent on raw material imports.

To develop sustainably and make the most of tariff incentives and opportunities brought by the EVFTA and Comprehensive and Progressive Agreement for Trans-Pacific Partnership, leather and footwear businesses need to develop domestic sources or diversify foreign sources.

Sixty per cent is imported from China, according to Phan Thi Thanh Xuan, general secretary of the Viet Nam Leather, Footwear and Handbag Association (Lefaso).

Many businesses have started to look for raw materials in other markets such as India, Europe, Singapore, and Japan.

The pandemic remains a major hurdle, experts said, but if enterprises work hard to find partners and improve their competitiveness, the opportunities remain huge. 

Vietjet to trial IATA Travel Pass for international flights

Vietjet will participate in trialling the International Air Transport Association (IATA) Travel Pass, a mobile app to manage digital health credentials in order to bring the best experiences to customers. 

The IATA Travel Pass will help passengers manage their travel health credentials in line with the prevailing government requirements for COVID-19 tests or vaccination.

It consists of four modules – a global registry of health requirements, a global registry of testing centres, a lab app to securely share test and vaccination certificates with passengers, and a contactless travel app that enables passengers to create a digital passport and manage their travel documentation digitally.

At all times, travellers remain in control of their data with their privacy protected as the IATA Travel Pass does not store any data centrally.

“Vietjet is one of the first airlines in the world to trial IATA Travel Pass. Vietjet strongly believes that with IATA Travel Pass, our passengers will get the best experience on their upcoming travels,” said Vietjet Managing Director Đinh Việt Phương.

“We look forward to working with Vietjet to trial IATA Travel Pass and demonstrate that digital health apps can securely, conveniently and efficiently help manage passenger travel health credentials. This is a positive step forward towards restarting international aviation,” said Nick Careen, IATA’s Senior Vice President Airport, Passenger, Cargo, Security.

The IATA Travel Pass team has been working closely with Vietjet – an IATA member, and the relevant Vietnamese authorities, as well as with other IATA members and governments to ensure the product could support and facilitate safe international travel.

Before making a flight, passengers download the IATA Travel Pass application, fill in information, and take a COVID-19 test at designated facilities. They will receive an “OK to Travel” if their travel health credentials meet the destination’s requirements.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes

VIETNAM BUSINESS NEWS JUNE 10

VIETNAM BUSINESS NEWS JUNE 10

Vietnam to see export growth as global demand recovers

 
 

Other News

.
Foreign retailers make quiet landing as domestic counterparts shut down
Foreign retailers make quiet landing as domestic counterparts shut down
BUSINESSicon  11/06/2021 

Many shops hit hard by Covid-19 have had to close, but some foreign retailers have taken advantage of the opportunity to scale up their business in Vietnam.

Hanoi pauses near 100 BT projects
Hanoi pauses near 100 BT projects
BUSINESSicon  11/06/2021 

82 build-transfer (BT) projects in Hanoi developed by real estate developers have been ordered to halt.

HCM City to speed up vaccination drive, assist businesses affected by outbreak
HCM City to speed up vaccination drive, assist businesses affected by outbreak
BUSINESSicon  11/06/2021 

HCM City authorities will continue to support the business community affected by the pandemic and speed up the vaccination drive, Nguyen Van Nen, secretary of the city Party Committee, said during an online conference on Thursday.

New stock trading system from RoK in trial run from next week
New stock trading system from RoK in trial run from next week
BUSINESSicon  11/06/2021 

A trial run of a stock trading system from the Republic of Korea, known as KRX, will be conducted from Monday (June 14) next week, Ho Chi Minh Stock Exchange (HoSE) announced Thursday.

HOSE technical problems continue despite promises to fix the problems
HOSE technical problems continue despite promises to fix the problems
FEATUREicon  11/06/2021 

The stock market is witnessing trading sessions with sharp declines amid technical problems that have gone unresolved for years despite repeated promises from the management agency.

Domestic retailers realise their potential of retaking Vietnam
Domestic retailers realise their potential of retaking Vietnam
BUSINESSicon  11/06/2021 

The rise of local retailers via mergers and acquisitions is expected to transform the competitive landscape of Vietnam’s retail market, which used to be dominated by foreign investors, and help domestic equivalents complete their ecosystems.

Solutions urged after repeated downtime at congested Ho Chi Minh Stock Exchange
Solutions urged after repeated downtime at congested Ho Chi Minh Stock Exchange
BUSINESSicon  11/06/2021 

This month’s adoption of new infrastructure is expected to disentangle technical congestion in the Ho Chi Minh Stock Exchange – a dragging conundrum for both institutional and mom-and-pop investors.

Along with Singapore, Vietnam is expected to lead new cycle
Along with Singapore, Vietnam is expected to lead new cycle
BUSINESSicon  11/06/2021 

Vietnam's economic growth outlook remains optimistic and the economy is forecast to recover to pre-Covid-19 levels in the second half of 2021.

Four lockdowns within 18 months have hit businesses hard
Four lockdowns within 18 months have hit businesses hard
FEATUREicon  11/06/2021 

In the last 18 months, lockdowns and social distancing have been imposed on four occasions. As a result, many enterprises have had to reinvest or restart business because of disrupted production chains during the social distancing periods.

VIETNAM BUSINESS NEWS JUNE 10
VIETNAM BUSINESS NEWS JUNE 10
BUSINESSicon  10/06/2021 

Vietnam to see export growth as global demand recovers

Domestic funds report impressive growth
Domestic funds report impressive growth
BUSINESSicon  10/06/2021 

The total value of assets under the management of domestic exchange-traded funds (ETFs) has soared by 64 percent to 1 billion USD so far this year, while foreign ETFs increased 12 percent to 1.4 billion USD.

Gov’t responds swiftly to COVID-19 economic impacts: ADB official
Gov’t responds swiftly to COVID-19 economic impacts: ADB official
BUSINESSicon  10/06/2021 

The Vietnamese Government has responded swiftly to the COVID-19 economic impacts, which was supported by strong fundamentals, thus ensuring the economy’s resilience, said Asian Development Bank (ADB) Country Director for Vietnam Andrew Jeffries.

More than 1,100 workers stopped working due to F1 case in Pouyuen Vietnam
More than 1,100 workers stopped working due to F1 case in Pouyuen Vietnam
BUSINESSicon  10/06/2021 

The F1 case at Pouyuen Vietnam Co., Ltd. (Pouyuen Vietnam), located in Tan Tao Ward, Binh Tan District, has caused more than 1,100 workers to temporarily stop working.

Gov't reviews Vingroup's proposal on electric-car policy
Gov't reviews Vingroup's proposal on electric-car policy
FEATUREicon  10/06/2021 

Some Vietnamese enterprises have invested in electric-car manufacturing and charging stations, but an overall electric car strategy has yet to be developed by the government.

Banks cut lending interest rates to lowest level in years
Banks cut lending interest rates to lowest level in years
FEATUREicon  10/06/2021 

Banks have cut lending interest rates, now at the lowest levels in many years, to help people and businesses hit hard by Covid-19.

E-newspapers, ad agents urge amending of Advertisement Law
E-newspapers, ad agents urge amending of Advertisement Law
FEATUREicon  10/06/2021 

The Ministry of Culture, Sports and Tourism (MCST) will review the Advertisement Law and collect opinions to propose amendments that would allow press agencies to compete with cross-border platforms.

After decade of struggle, HAGL posts loss and gradually 'sinks'
After decade of struggle, HAGL posts loss and gradually 'sinks'
BUSINESSicon  09/06/2021 

The Hoang Anh Gia Lai Group (HAGL) of Chairman Doan Nguyen Duc has gradually withdrawn from the fields of business Duc has been dedicated to for a decade. 

PM wants to reform tax regime to prevent real estate speculation
PM wants to reform tax regime to prevent real estate speculation
BUSINESSicon  09/06/2021 

Prime Minister Pham Minh Chinh has emphasized that the national housing strategy needs to include reasonable social housing development, and the tax regime on land speculators should be adjusted.

VIETNAM BUSINESS NEWS JUNE 9
VIETNAM BUSINESS NEWS JUNE 9
BUSINESSicon  09/06/2021 

Vietnam exports first batch of lychee under EVFTA

Apple partner Pegatron injects additional US$101million into Vietnam
Apple partner Pegatron injects additional US$101million into Vietnam
BUSINESSicon  09/06/2021 

Taiwan has granted approval for a further investment of US$101 million by Pegatron Corp, a major manufacturing partner of Apple which operates in Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN