Prime Minister Pham Minh Chinh on March 16 signed Dispatch No. 252/CD-TTg asking for more drastic measures to implement the socio-economic recovery and development programme.

The dispatch, the second issued by the PM to direct the implementation of the programme, clarified the specific responsibilities of ministries, sectors and localities in realising tasks and solutions set in Resolution No.11 of the Government, the National Assembly's Resolution 43/2022/QH15 on fiscal and monetary policies supporting the programme and the PM’s Dispatch No. 126/CD-TTg.

Accordingly, within March, the Ministry of Planning and Investment must submit to the Government and the PM the list of investment projects and capital allocation plans for them in 2022-2023 period and each year until 2023, while promptly building a plan to flexibly adjust the middle-term public investment plan for the 2022-2025 period and the public investment capital for the programme in the 2022-2023 period. It is requested to give guidance to ministries and agencies on bidding activities for major projects.

The Ministry of Transport is requested to coordinate with relevant agencies to effectively conduct measures to speed up the eastern part of the North-South Expressway in the 2021-2025 period.

Meanwhile, the Ministry of Health will work with ministries, agencies and localities to propose the estimated capital for health care activities and projects within the programme for the 2022-2023 period and each year. The proposal must be submitted to the Ministry of Planning and Investment before March 20.

At the same time, the State Bank of Vietnam is asked to submit to the Government a draft decree guiding the implementation of policies on interest support for businesses, cooperatives and business households, along with a decree on preferential credit policies for the national target programme for socio-economic development in ethnic minority-inhabited and mountainous areas.

The Ministry of Finance is assigned to propose a decree on the rescheduling of deadlines for payment of corporate income, personal income, added value, special consumption, and land-use taxes in 2022.

The Ministry of Construction must give advice to the Government and the PM on solutions to remove obstacles related to the management of cost and quality of the eastern section of the North-South Expressway project in the 2021-2025 period.

The Ministry of Natural Resources and Environment is requested to issue guidelines on the special mechanism for mining activities to exploit construction materials for major transport projects under the programme.

The Ministry of Labour, Invalids and Social Affairs will submit a draft decision on support to labourers in housing, while the Ministry of Education and Training is asked to propose a decision on necessary procedures for private education facilities to access soft loans.

NA Chairman orders clear scenarios on fuel price management

National Assembly Chairman Vuong Dinh Hue on March 16 suggested the Government set out clear scenarios to ensure energy safety and security, as well as fuel supply and demand in any circumstances.

He stressed at a hearing session of the NA Standing Committee’s 9th sitting that such scenarios are crucial given ongoing tensions in the world, and the domestic supply crunch.

Hue ordered comprehensive solutions to quickly address obstacles to the operation of Nghi Son Oil Refinery, one of the two major local refineries.

The management of domestic fuel prices should keep up with developments of global prices to ensure harmony of interests of the State, people and businesses, he said.

The NA Chairman suggested the Government review and adjust taxes and fees to contribute to curbing oil and petroleum prices once they continue to surge, saying the petrol price stabilisation fund should be used suitably to support enterprises and people.

He urged the Government to assess and submit the draft resolution on the environmental protection tax rates on petroleum, oil and lubricants to the NA Standing Committee for approval during the second phase of the 9th sitting this month so that the document would come into force in April.

Stringent sanctions needed to prevent cancellation of land lot purchase

Minister of Natural Resources and Environment Tran Hong Ha on March 16 stressed that stringent sanctions are needed to prevent real estate developers from cancelling the purchase after winning the auction by offering record prices.

The minister said land auctions have pushed up land prices, which would lead to negative consequences for the real estate market and affect the entire economy.

He also noted a review on policies to prescribe deposits and assess the financial capacity of participating firms more carefully, saying competent forces, including police, should play a part in land auctions.

Apart from improving auction organisation capacity, it is crucial to consolidate auction methods, he said, emphasising that land matters should be stipulated in only one law, instead of several laws at present.

According to the official, tax tools would help to prevent speculation. Therefore, housing projects for workers and public servants would be built with affordable prices.

Vietnam Airlines flight carries first foreign tourists after Vietnam fully reopens border

A flight of national flag carrier Vietnam Airlines carrying first foreign visitors to Vietnam landed at Tan Son Nhat airport on March 16, a day after the country officially reopened international tourism.

The flight from Singapore carried more than 100 passengers, including 20 foreigners.

Also on the day, a flight of the carrier from Ho Chi Minh City to Singapore was the first one flying Vietnamese passengers abroad in line with the Vaccinated Travel Lane programme of Singapore.

At present, Vietnam Airlines operates 10 flights per week from HCM City and Hanoi to Singapore. It will increase flight frequency to the market from March 27.

The carrier will raise its total flights to 97 per week from late March.

Vietnam calls for unified approach of ASEAN in upgrading ATIGA

Vietnam has proposed that ASEAN countries agree on a pragmatic approach in negotiations to upgrade the ASEAN Trade in Goods Agreement (ATIGA) in order to generate real added value to ASEAN businesses, during the 28th ASEAN Economic Ministers' Retreat that virtually opened on March 16.

Head of the Vietnamese delegation to the event, Deputy Minister of Industry and Trade Tran Quoc Khanh affirmed that Vietnam will continue to work closely with other ASEAN member countries to realise common goals of the ASEAN Economic Community.

The Vietnamese representative also expressed support for initiatives of Cambodia during the ASEAN Chair Year 2022, and emphasised the goal of strengthening and diversifying the supply chain for ASEAN to respond to unforeseen challenges in the future and maintain sustainable economic development.

Participants agreed on annual priorities for 2022 in the economic channel, comprising 151 different contents in terms of trade in goods and in services; investment; facilitating the mobility of skilled labourers and entrepreneurs; competition; consumer protection; intellectual property; e-commerce; micro, small and medium-sized enterprises.

Besides intra-bloc cooperation, participants also focused their discussion on external economic cooperation such as the development of ASEAN's external cooperation strategy with its dialogue partners and partners of potential free trade agreements (FTAs). 

Forum explores trade, investment chances between Vietnam, Sierra Leone

A Vietnam - Sierra Leone business forum was organised in Hanoi on March 16 to explore opportunities for boosting bilateral trade and investment ties.

The event was held as part of an official visit to Vietnam by President of Sierra Leone Julius Maada Bio, the first-ever trip by a head of state between the two countries.

Bilateral trade stood at 49.26 million USD in 2020, surging by over 200 percent from 17 million USD in 2018. Vietnam mainly exports cigarettes, computers, textile - garment products, and materials to Sierra Leone while importing timber and wood products from the latter. The African nation is investing in a marketing and human resources management project worth over 33,000 USD in Vietnam.

Sierra Leonean Minister of Trade and Industry Edward Hinga Sandy said his country has been making great strides in boosting investment. It is exporting mainly palm oil at present and plans to switch to timber, wood products, and ore mining in the time ahead.

Chief Minister Jacob Jusu Saffa said Sierra Leone boasts huge untapped potential as well as a healthy and promising investment climate for foreign enterprises. Its government supports and encourages investment, continually make adjustments to have appropriate policies, and issues attractive financial and tax support for businesses, he added.

At the event, participants discussed investment opportunities in agriculture and fisheries of Sierra Leone, cooperation in technology, and measures for bolstering bilateral trade.

HCM City launches innovation, startup contest

Ho Chi Minh City’s innovation and startup competition I-Star 2022 was officially opened for submissions on March 16, lasting through August 31.

According to the municipal Department of Science and Technology, the annual contest aims at building a sustainable startup and innovation ecosystem for breakthroughs to be made serving the southern economic hub’s development.

From its four editions so far, the competition received more than 1,000 entries for its categories of outstanding innovative enterprises; outstanding innovative solutions; outstanding communications works; and contributors of the startup and innovation ecosystem.

Tour operators offer deals as Vietnam eases COVID-19 control measures

Following the Government lifting medical isolation requirements and restoring pre-pandemic visa procedures on March 15, local tour operators have promptly contacted foreign partners, offering them lucrative deals.

Vietnam reopened its border on March 15 to international tourism after months of combating the prolonged COVID-a9 pandemic that has dealt a heavy blow to the tourism sector.

The Government on the same day agreed to restore pre-pandemic visa procedures for both foreign citizens and Vietnamese expatriates wishing to visit the country. As part of the initial easing of restrictions it announced visa exemptions for citizens from Germany, France, Italy, Spain, the UK, Russia, Japan, the Republic of Korea, Denmark, Sweden, Norway, Finland, and Belarus.

The Government also announced the lifting of medical isolation requirements at the place of residence for foreign arrivals. Indeed, only a negative test result is now required before vaccinated visitors board their flight to Vietnam,

Tour operators have breathed a sigh of relief and moved to send bookings to foreign partners, kick-starting the inbound market.

Overtime adjustment to support operations

The National Assembly Standing Committee is set to adopt a draft resolution on the overtime limit at enterprises after carefully considering proposals from the Ministry of Labour, Invalids and Social Affairs last week.

The resolution is considered a part of Vietnam’s effort in supporting the business community to recover operations after the pandemic, along with the government-proposed socioeconomic recovery programme worth nearly $12.5 billion over the next two years, which was approved in late January.

According to the draft resolution waiting for approval, the overtime cap will be adjusted 72 hours instead of the current 40 hours per month while simultaneously applying an overtime framework to 300 hours per year for all sectors, compared to the existing 200 hours. The new policy is planned to be valid by the end of December.

A large volume of enterprises, especially in manufacturing, are expected to be satisfied after waiting for months for a ruling.

According to statistics from the MoLISA, millions of people laid off last year. Notably, the labour force in manufacturing and construction dropped by 254,000 people on-year, while the figure in the service sector dipped by 800,000 people. Many employers have been under strain because of the enormous increase in COVID-19 cases and subsequent isolation periods.

Qualcomm Vietnam Innovation Challenge 2022 offers big prize for startups

Ten startups in promising new technology areas will receive financial benefits of 10,000 USD each from Qualcomm, and be invited for months of technical and business incubation, the semiconductor producer announced on March 16.

They are participants of the Qualcomm Vietnam Innovation Challenge (QVIC) 2022 and have qualified for the next round.

The final is slated for this August and three winning teams will walk home with a total cash prize of 225,000 USD.

In addition to the 10,000 USD of aid, teams will receive consultation from experts of Qualcomm Technologies and support from its R&D lab in Hanoi.

Vietnamese users eligible to open virtual credit cards

The Vietnam International Bank (VIB) has announced the expansion of the card opening ecosystem in the Bizverse World virtual environment, bringing new experience of opening virtual credit cards to Vietnamese users.

Over the past years, VIB has been implementing the strategy on developing an unlimited card opening ecosystem, especially on the digital platform, through cooperation with partners which have sufficient capacities in technology, customers development, creativity and sensitivity to trends. Thereby, the bank has accelerated its comprehensive digital transformation of business operations, towards increasing outstanding efficiency with the maximum support of technology.

With the expansion of the card opening ecosystem in the virtual environment, VIB is the first bank in Viet Nam to participate in the Metaverse. That is a platform in which businesses can easily bring their business models to the virtual environment and maximise their business efficiency.

VN Airlines to increase flights to Singapore next week

National flag carrier Vietnam Airlines is set to increase the flight frequency on the route linking Vietnam and Singapore by 15 per week on March 27, raising its total weekly flights to the latter to 25.

Of the total, 21 flights will operate on the HCMC-Singapore air route, while the remaining four will connect Hanoi City with Singapore.

The carrier is launching 10 weekly flights to Singapore, with seven departing from HCMC. Hanoi City is seeing three flights take off on Mondays, Wednesdays and Fridays.

On March 16, one day after Vietnam fully reopened tourism for local and international services, Vietnam Airlines launched a flight carrying the first foreign tourists to the country from Singapore.

The airline is planning to increase its frequency of weekly international flights to 97 in late March.

In July, the carrier will also restart all air services to China, Indonesia, Japan and South Korea to raise the number of weekly international flights to over 160. 

FPT Retail looks to open 300 more Long Chau pharmacies

FPT Digital Retail JSC (FPT Retail, FRT) targeted to earn VND720 billion in before-tax profit and launch 300 more Long Chau-branded pharmacies this year, according to the firm’s latest announcement about its upcoming annual general meeting of shareholders. The meeting is scheduled to take place in HCMC on April 15.

FPT Retail said in the announcement that it is set to obtain VND27 trillion in revenues and VND720 billion in pre-tax profit in 2022, up 20% and 30% year-on-year, respectively.

Besides, the retailer will expand its business scale. By the end of 2022, it will raise the total number of FPT Shops to 717 units and Long Chau pharmacies to 700 units, in addition to launching more services and products.

IPPG seeks nod to upgrade Phu Quoc airport

The Imex Pan Pacific Group (IPPG) has proposed the Transport Ministry allow it to participate in the Phu Quoc International Airport expansion project off the coast of Kien Giang Province.

IPPG wants to invest in the airport’s international terminal, cargo terminal, warehouse, and runway, which need private sector investment, said Johnathan Hanh Nguyen, board chairman of IPPG, reported the local media.

The proposal was made following the Government’s plan to call for private sector investment in some components at the airport on the tourist island of Phu Quoc. The Transport Ministry and the Kien Giang government are adjusting a zoning plan to expand the Phu Quoc airport in the 2021-2030 period, with a vision toward 2050.

Earlier, IPPG was involved in the development of the international terminal of the Cam Ranh airport in the south-central province of Khanh Hoa, with a total investment of nearly VND3.74 trillion. It also proposed the establishment of the IPP Air Cargo Company.

China’s import curb sends cargo backlogs soaring in northern Vietnam

The Chinese government has suspended customs clearance at the border gate pair of Ai Dian in China and Chi Ma in Vietnam, leading to a surge in cargo backlogs in the northern border province of Lang Son.

On March 14, the Chinese side announced a suspension in customs clearance for Vietnam’s imports at the border gate pair after detecting several Covid infections, the management board of the Dong Dang-Lang Son border gate economic zone said today, March 16.

China is set to reopen the border gate on March 17 or 18, the local media reported.

Though the Huu Nghi international border gate in the province has been reopened, the temporary shutdown of the Ai Dian-Chi Ma border gate pair is slowing down the customs clearance of cargo for export.

A mere 25 cargo container trucks were cleared at the province’s border gates on March 14, while 69 others went through the gates to enter Vietnam.

As of March 15, as many as 1,325 container trucks, with 942 of them carrying fruits, had been stuck in the province. Lang Son Province has maintained operations at the Huu Nghi and Tan Thanh border gates. 

SMEs receive support in digital transformation

The Vietnam Association for Software and IT Services (VINASA) has just announced frameworks for digital transformation for Small and Medium Enterprises (SMEs) in 26 fields in commerce, service, and manufacturing.

The digital transformation guideline framework for each field will include five basic parts such as current status and development trends, guidance for digital conversion frame, digital transformation solutions, recommendations of digital skills that need to be trained for personnel.

The set of evaluation criteria and all documents will be publicly and freely released on the website www.dx4sme.vn that SMEs need to know.

In the digital transformation program, Ho Chi Minh City has built the city Support and Consultation Center for Digital Transformation (DXCenter) which was step by step put into operation.

Vietnamese food, drinks introduced in Foodex Japan 2022

The Vietnam Trade Office in Japan organized display booths to introduce Vietnamese food and drinks to international friends and Japanese consumers at the 47th International Food and Beverage Exhibition Foodex Japan 2022.

Ten stalls of five popular importers in the Vietnamese community in Japan brought to the fair a variety of local products, including noodle, frozen and dried fruits, dried salted cashew, sauces and spices, coffee, coconut milk, beer, wine and other drinks.ontribute to strengthening the images of Vietnamese cuisine to international friends.

The 47th International Food and Beverage Exhibition Foodex Japan 2022 was held at Chiba Prefecture (Japan) from March 8-11, with the participation of businesses from dozens of countries and territories.

Delivery of 100 containers of cashew nuts in cashew scam suspended

Regarding the case of about 100 containers of cashew nuts exporting to Italy showing signs of being scammed, on March 16, the Ministry of Industry and Trade informed that it had directed the Commercial Counselor in Italy to go directly to the ports of Genoa and Naples to work with port management units, shipping lines, banks, and local authorities, proposing to suspend delivery to have time to clarify the case.

The Vietnam Trade Office in Italy has supported enterprises to approach lawyers in Italy for advice and carry out necessary legal procedures, helping Vietnamese exporters take control of their shipments. The Vietnam Trade Office in the US has contacted the brokerage company, requesting it to provide information and actively cooperate with Vietnamese enterprises to handle and ensure the legitimate interests of Vietnamese exporters.

The Ministry of Industry and Trade also sent a diplomatic note to the Italian Embassy in Vietnam, requesting coordination with the Vietnamese agencies to handle the case. At the same time, the ministry sent a letter to the Minister of Foreign Affairs and International Cooperation and the Minister of Economy and Finance of Italy, asking them to direct relevant units to coordinate with Vietnamese agencies and the Vietnamese Embassy in Italy to quickly resolve the case, protect the legal rights of Vietnamese businesses, as well as the image and reputation of Italian ones. 

Vietnam’s macadamia export to hit $2.5 billion by 2050 

Vietnam strives to reach US$400 million worth of macadamia export in 2030 and $2.5 billion in 2050, with the proportion of macadamia in shell not exceeding 40%.

This is the goal of a project to sustainably develop macadamia cultivation and processing in the 2021-2030 period, with a vision to 2050, approved by Deputy Prime Minister Le Van Thanh on March 15.

Under the project, the output of processed macadamia nuts is expected to reach about 130,000 tons in 2030 and roughly 500,000 tons in 2050.

The size of the growing area is about 130,000-150,000 ha by 2030, mostly in the northwestern region of Vietnam including Dien Bien and Lai Chau provinces and the Central Highlands provinces of Lam Dong, Dak Nong, and Kon Tum.

Based on the evaluation of macadamia farming efficiency in the 2021- 2030 period, the growing area is expected to expand to about 250,000 ha in 2050.

Hanoi to build 2 ICDs in 2022

The construction is part of Hanoi’s efforts to become a major logistics hub of the country and Southeast Asia.

Hanoi plans to build two inland container depots (ICD) in Gia Lam and Hoai Duc districts in 2022.

The move was revealed in the city’s plan No.81/KH-UBND on logistics development in Hanoi, for facilitating trade.

According to the plan, investment in trade and transport infrastructure would hold a key role for Hanoi to soon become a major logistics hub of the country and Southeast Asia.

To achieve this goal, the municipal Department of Industry and Trade is tasked with coordinating with other agencies in drafting the legal framework for logistics activities, including the application of IT in processing administrative procedures for trade, customs, tax, and transportation fields.

In 2020, Hanoi was set to build logistics centers in the form of two ICDs in Co Bi Commune, Gia Lam District, and Duc Thuong Commune, Hoai Duc District, along with the plan for another two in Phu Xuyen District and Soc Son District.

Banks ensure fuel firms have access to more credit

The State Bank of Vietnam (SBV) has issued Document No 1509, asking commercial banks to raise credit limits for a number of fuel firms, particularly those who import extra fuel at the request of the Ministry of Industry and Trade (MoIT).

The list of the firms and the importers can be found on the ministry’s website and in Decision No 242.

SBV said that commercial banks evaluate and grant credit extensions to the above-mentioned firms in accordance with current banking regulations.

In case issues arise during the evaluation and approval process, they have to report on the issues to the Governor of the SBV.

They are also requested to report each month to the Department of Credit for Economic Sectors on any credit granted to the firms.

Additionally, they are urged to step up reforms, simplify internal processes and diversify their banking products to facilitate credit.

Amid a volatile world fuel market, the Prime Minister has called on relevant authorities to look at ways to stabilise domestic fuel supply.

Source: VNA/SGT/VNS/VOV/SGGP/Hanoitimes/VIR

VIETNAM BUSINESS NEWS MARCH 16

Ministry of Finance proposes new housing tax