Supply chains in Southeast Asia are racing to recover to full strength after months of factory stoppages and production cuts, including Vietnam which is seeing a rapid return to normality, according to an article published on Japan’s Nikkei newspaper.

The article reported that about 200 factories in the country contracted to make sportswear for Nike have resumed operations.

An executive of an industrial park in Ho Chi Minh City was quoted as saying that plants operated by Samsung Electronics and Intel will "provide assistance so that both companies' facilities will return to full production this month”.

Companies that produce electrical and electronic components essential for the auto industry are also returning to full strength, much to the relief of manufacturers around the globe.

Japan's Furukawa Electric expects to return to full capacity at its Vietnamese plants. Its three factories there make wire harnesses for automobiles, with the Ho Chi Minh City site alone staffed with about 8,000 workers.

The impact from the COVID restrictions has been particularly damaging to Southeast Asia's automotive industry. Vietnam has a high concentration of wire harness factories, while Malaysia is a production hub for automotive semiconductors.

Vietnam was the source of about 40 percent of Japan's wire harness imports in 2019. Suppliers Yazaki and Sumitomo Electric Industries are restoring production at their Vietnamese plants as well. This trend is expected to support a production comeback in Japan's auto sector, said the article./.

Businesses in Dong Nai want new loan to resume production

Businesses in Dong Nai have called for reducing bank interest rates and restructuring debt repayment to enable them to resume operations now that the COVID-19 pandemic is basically under control.

Nguyen Trong Tu, director of Trieu An Production Trading Co, said his business incurred huge losses during the pandemic last year. After it seemed to be under control, he borrowed money from a bank to renovate his factory, but the fourth wave of COVID had hit his prospects hard, he said.

Strict social distancing caused his company to suspend operations for months, causing customers to cancel orders, he said.

Since he had some money saved, he was able to survive previous waves, but now he had run out, he said, adding the risk of going bust would be very high if he could not get the loan interest reduced, frozen or rolled over.

Besides debt rollover, businesses also want fresh credit to buy raw materials, but said it was very difficult to get new loans because most of their assets had been mortgaged already.

The provincial People's Committee chairman Cao Tien Dung said the demands made by businesses, especially with regard to cash flows to revive production, were valid and should be addressed.

The State Bank of Viet Nam should consider loosening lending policies further, he said.

According to banks, they too have been hit hard by the pandemic since many customers have been failing to repay loans.

“It is very difficult for the banks to sharply reduce loan interest rates at this time.” 

Vietmam seeks to push smart manufacturing in industrialisation & modernisation scheme

A symposium themed “developing smart production in the process of industrialisation and modernisation to 2030, with a vision to 2045” took place on November 9 in the framework of the on-going Industry 4.0 Summit and Expo, the third annual largest-scale forum on Industry 4.0 in Vietnam.

In his remarks, deputy head of the Party Central Committee’s Economic Commission Nguyen Duc Hien cited the 13th National Party Congress' resolution which set the target for Vietnam to become a developing country with modern industry and upper-middle-income status by 2030, and a developed and high-income country by 2045.

He also cited several resolutions of the Politburo which direct speeding up industrialisation and modernisation on the basis of scientific and technological development and innovation, and the integration of information and automation application in industrial production to create intelligent production processes, smart factory models, and manufacture smart products.

Accordingly, attention will be paid to promoting the development of science, technology and innovation across the fields, and speeding up national digital transformation so that Vietnam soon becomes one of the leading smart manufacturing and service centres and entrepreneurship and innovation hubs in Asia with high labour productivity, and qualified workforce to master and apply modern technology in all fields.

Citing data from the World Bank in East Asia and the Pacific and the Ministry of Science and Technology, the official pointed out that developing smart production in the process of industrialization and modernization to 2030, with vision to 2045, will face many difficulties and challenges.

The symposium offers a venue for managers, manufacturing enterprises, and suppliers to share experience to promote digital transformation, digitalization and automation of production process, he said.

Deputy Director General of the Ministry of Industry and Trade’s Science and Technology Department Dao Trong Cuong said developing smart production in the process of industrialization and modernization is a particularly important task.

This is both an opportunity and challenge for Vietnam to accelerate the transition from assembling and processing to manufacturing "make in Vietnam" products, master advanced production technologies, and promote research and development (R&D) in producing digital devices such as smartphones, smart TVs, and tablets, he stressed.

Participants discussed issues related to smart production, with local organisations and enterprises sharing their experience in applying digital technology in smart production, setting up production and digital transformation models in enterprises, exploiting digital technology in optimising operation of production platform, developing smart factories on old foundation, and digitising supply chains to improve production efficiency./.

Challenges remain in implementation of EPR

World leaders congregated this month in Glasgow, the UK, to tackle the climate crisis at the United Nations Climate Change Conference (COP26).

While the main headlines revolved around policies on methane, net-zero emissions and deforestation, issues on waste and recycling were sorely lacking from the summit’s agenda.

Dr Adam Read, President of the Chartered Institution of Wastes Management (CIWM), criticised the lack of representation for recycling and waste management throughout COP26.

“The fact that the UN Climate Change Conference UK 2021 hasn’t fully recognised the integral part the resources and waste sector has to play in helping to reach net-zero targets, not just in the UK, but globally, is a critical oversight on their part,” Dr Read said.

The UK government itself is still hashing out the details of Extended Producer Responsibility (EPR) for packaging and a Deposit Return Scheme (DRS) in England, Wales and Northern Ireland, with consultations held earlier this year.

British lawmakers recommended that manufacturers cover the full costs of recycling packaging waste, standardising domestic and commercial waste collection and introducing a DRS for certain types of packaging in 2024.

Despite its absence from COP26, the UK government is still pushing ahead with an overhaul of recycling procedures as part of its Resources and Waste Strategy and seeking to enshrine them in the Environment Bill.

As previously reported, the Vietnamese Government adopted the amended Law on Environmental Protection last November, which provides a legal framework on EPR in the country.

While activists and environmental groups are keen to see such regulations come into force, companies are still weighing up the additional costs required to follow recycling rules.

As proposed in Viet Nam, the highest rate of recycling under the EPR will apply to aluminium packaging and PET bottles at 22.5 per cent, and the lowest for vehicles at 1.8 per cent.

The EPR will require the participation of all stakeholders, including manufacturers, retailers, consumers, waste collectors and recycling businesses. If this chain is controlled well, it can guarantee a certain quality of waste, so that packaging can become high-value raw materials after use. Waste will return to the production cycle instead of being discharged into the environment, helping develop a circular economy. However, obstacles remain for participants in this waste chain.

At a seminar on EPR held by the Viet Nam Chamber of Commerce and Industry (VCCI) last month, Le Thi Ngoc My, head of sustainable development at Heineken Viet Nam, said that the business had great ambitions in sustainability. In addition to recycling and reusing packaging, Heineken aims to use 100 per cent recycled resources in production by 2025, according to My. However, the main challenge is in terms of policy.

“The EPR mechanism continues to be delayed, making it difficult for businesses to implement circular economy issues. For pioneering enterprises, there are always obstacles in terms of policy," My said.

Nguyen Thi Thu Hang, Director of Public Affairs, Communication and Sustainable Development at Coca-Cola Viet Nam, also pointed out four challenges for businesses when implementing environmental and social responsibility programmes.

Firstly, businesses are struggling as they have to synchronise the resource cycle, for example in product design. EPR requires businesses to adjust the design, shape, and materials of their products to ease collection and recycling.

The second challenge is collection, especially for plastic waste. The third is the lack of recycling technology in Viet Nam. While some facilities do exist, they are mainly in craft villages with rudimentary modern technology. This affects the quality and life cycle of the product after recycling.

Finally, businesses are also facing problems with databases and information systems. The connection between manufacturers, importers and users is still very limited. Therefore, the rotation of packaging products and materials for production has become a big challenge for companies.

Phan Thi Thanh Xuan, General Secretary of Viet Nam Leather, Footwear and Handbag Association (Lefaso), told Viet Nam News that the EPR would have some effects on leather and footwear companies, but as their products were mainly exported, especially to developed markets, they already met some strict environmental requirements.

However, Xuan suggested that the regulations should be more progressive, so as not to create additional burdens in terms of administrative procedures or raised costs for businesses.

One concern is that the higher costs associated with EPR compliance will be passed onto consumers. Thus, on top of strong legislation that will encourage producers to take responsibility for their products once they reach the end of their lives, significant oversight is needed to ensure producers follow the EPR rules and limit price rises on their products. In rolling out such initiatives, it is crucial to create a level playing field with fair competition.

Returning to the UK, the Department for Environment, Food and Rural Affairs (Defra) estimates producers will pay annual costs of up to £2.7 billion (US$3.68 billion) in the first year of the EPR’s implementation. According to a recent study on the impact of EPR, the costs could push up the price of an average shop by up to 0.6 per cent. While this represents a small increase in the face of looming climate catastrophe, such a rise would hit the poorest hardest.

Faced with pressing climate challenges, initiatives like the EPR go some way to tackling a rising tide of waste. However, if they are to be successful, such programmes require significant oversight, both to ensure compliance, and that benefits are evenly distributed – to planet and people. 

Government urged to build stronger support industry

The Ministry of Industry and Trade has advised the Government to take drastic actions to improve the role and position of support industry.

Accordingly, the Government’s Decree dated June 4, 2021 supplements several incentives regarding corporate income tax for support industry projects. It benefits firms with new and expansion projects before 2015, or those granted with certificates of incentives for support industrial manufacturing that will receive the highest tax incentives.

At present, support industry firms account for nearly 4.5 percent of those working in manufacturing and processing sector, earning nearly 39.8 million USD and contributing about 11 percent of the total revenue in the sector.

Several domestic spare part manufacturers have been able to meet demand at home and abroad. The domestic capacity of manufacturing support industry products and the rate of domestically-made items in several industries improved.

However, they also exposed shortcomings, such as limited manufacturing and financial ability, the shortage of workforce and technology, low product competitiveness due to high cost and poor quality.

Developing downstream industries is considered important for developing support industry or attracting multinational groups to Vietnam.

Producing and assembling end-products for the domestic support industry will be maintained and expanded, thus laying a foundation for support industry firms to join in the supply chain of end-product makers.

Such requires priority policies such as offering focused assistance, building technical standards to protect domestic manufacturers and consumers, as well as flexible and suitable policies on import tariffs on spare parts./

Traceability of goods key to enhancing Vietnamese products

The traceability of goods, including transparency on origin, is key to building consumer trust and expanding Vietnamese goods in foreign markets, said Đinh Hoàng Linh, Deputy General Director of the General Department of Standards, Metrology and Quality.

Linh made these comments during a recent seminar held by the Ministry of Science and Technology and the Ministry of Agriculture and Rural Development in Hà Nội.

Improving traceability will make consumers feel safe using products with clear origin and guaranteed quality. It will also prevent commercial fraud and improve the brand value of Vietnamese products, according to Linh.

He said that the traceability of products and goods for export, especially agricultural products, helps stakeholders to trace information about products quickly and accurately. International markets have very strict traceability rules for goods in both production and trade, criteria that Vietnamese businesses must meet to trade abroad. 

Nguyễn Vũ Trung, an expert from the Agro-Forestry-Fisheries Quality Management Department, acknowledged that the application of a traceability system will increase costs for businesses, but the benefits outweigh the disadvantages.

A traceability system helps manage product quality, from farming and processing to preservation, transportation, delivery and distribution. It makes it easier to detect if something goes wrong and allows for precise, rather than blanket, product recalls. 

However, Nguyễn Thị Thành Thực, a member of the Executive Committee of the Việt Nam Digital Agriculture Association, said improving traceability faces some difficulties.

State management agencies do not yet have strict sanctions that deal with violations. The management of goods circulation is not strict enough, allowing violations in the planting area codes and packaging facility codes, particularly in agricultural products. Among officials, awareness and understanding of traceability are low, Thực said. 

In response, the Plant Protection Department will build a team of lecturers to educate on planting area codes and packing facilities. The programme will focus on building codes for planting areas, said Nguyễn Quang Hiếu, Head of the International Cooperation Office of the Department of Plant Protection.

The agency will work with importers to deal with violations, restore suspended codes and expand requirements for planting areas and packing facilities.

The department will also focus on organising training courses for local technical staff, businesses and people, applying information technology to management, Hiếu said. 

Banks raise provisions in anticipation of bad debt

In the face of rising bad debt amid the ongoing pandemic, commercial banks have been forced to write up their loan loss provisions, according to industry sources.

Vietinbank was to increase its non-performing loan coverage ratio from 119 per cent at the end of September to 169 per cent for the rest of the year, with risk provisions from VND14 trillion (US$617 million) to VND17 trillion, said Vietinbank's Chairman of the board Tran Minh Binh.

The move was a result of rising non-performing loans due to the pandemic and designed to improve the bank's buffer for the year to come.

"We have to stay vigilant and be prepared for 2022," he said.

VietinBank's credit risk provisions increased to VND14 trillion by the end of September, a 22 per cent, or VND2.5 trillion, increase from the same period last year. The bank has set aside VND5.5 trillion in provisions during the third quarter of 2021 as bad debt ratio reached 1.67 per cent, the highest recorded in the last four quarters.

Vietcombank's provision cost has been reported to climb to over VND8 trillion during the first nine months of the year, a 33 per cent increase from the same period last year. During the third quarter alone, the bank raised its provision by VND2.5 trillion, a 25 per cent increase year-on-year.

Vietcombank reported its bad debt has doubled since the beginning of the year from VND5.2 trillion to VND10.8 trillion (from 0.62 per cent to 1.16 per cent) resulting in a lot of pressure to allocate even more funds to its provisions.

Meanwhile, BIDV has set aside VND7.5 trillion during the third quarter, a 35 per cent increase year-on-year, raising its provisions to over VND23 trillion during the first nine months, a 44 per cent increase year-on-year.

The bank had the highest bad debt ratio among commercial banks at 1.61 per cent, a slight decrease from 1.76 per cent at the beginning of the year.

The majority of commercial banks have all reported an increase in provision cost during the first three quarters of 2021: ACB VND2.8 trillion, VPBank VND13.6 trillion, LienVietPostBank VND887 billion and TPBank VND2.3 trillion.

Current regulations dictate banks must maintain provision rates at 0 per cent for standard debt (Group 1), 5 per cent for special attention required debt (Group 2), 20 per cent for subprime loans (Group 3), 50 per cent for doubtful debt (Group 4) and 100 per cent for potentially irrecoverable debt (Group 5).

In addition, banks must also maintain 0.75 per cent of total outstanding loans (excluding Group 5) in general provision.

However, the State Bank of Vietnam's (SBV) recent directives aimed at providing businesses with COVID-19 financial relief have forced banks to set aside a larger amount than usual in provisions.

"At this moment, I think that banks have built their own scenarios. Besides reducing interest rates to support people, the banks have also actively improved their financial capacity to ensure good operations in the future," said Nguyen Quoc Hung, general secretary of the Viet Nam Banking Association.

By the end of September, commercial banks have extended deadlines for over 270,000 customers with a total loan of over VND330 trillion with interest cuts, per SBV's request, of VND12.2 trillion from July 15 to September 30. 

Ministry proposes upgrading Chu Lai airport to international airport

Chu Lai Airport in the central province of Quang Nam is slated to be upgraded to an international airport under a master plan for airport development in the 2021-2030 period with a vision to 2050 that the Ministry of Transport submitted to the Prime Minister recently.

Under the plan, Chu Lai will be among 14 international airports to be developed in the next 10 years.

According to the People’s Committee of Quang Nam, it has proposed that the Airports Corporation of Vietnam (ACV) early launch a project to develop Chu Lai Airport into a 4E standard international airport by 2030 and a 4F facility capable of welcoming 40 million passengers a year by 2050.

Accordingly, the locality has asked the ACV to first of all make plans to build a passenger terminal with a capacity of 5 million passengers per year, while upgrading the cargo terminals and other facilities right from 2022 to meet the rising demand of passenger and cargo transport in Quang Nam, Quang Ngai and nearby localities in the central region.

It has also proposed that the ACV work with relevant agencies to mobilise resources for the construction of a new runway in the western area of Chu Lai airport and convert the current one into a taxiway.

Chu Lai airport, located in the Chu Lai Open Economic Zone, is the largest airport in Vietnam in terms of land area occupied, with 2,006 ha. Experts held that the airport has high potential and favourable conditions to become an international aviation industry and service centre./.

Viet Nam has high export growth after joining WTO

Viet Nam has gained strong growth in trade since it joined the World Trade Organisation (WTO) 15 years ago, according to the Ministry of Industry and Trade (MoIT).

With 17 free trade agreements (FTAs) whose negotiations have been completed or underway, Viet Nam has become an open economy with a trade to GDP ratio of up to 200 per cent.

According to the Agency of Foreign Trade under the Ministry of Industry and Trade (MoIT), Vietnamese firms have maximised advantages to boost exports and penetrate new markets.

Export goods have also been gradually changed to increase the proportion of value-added products, well-processed products, and hi-tech products.

The country’s total trade value rose from US$84.7 billion in 2006 to $545.3 billion last year. In the first 10 months of this year, the figure was $537.31 billion.

Viet Nam has always recorded a trade surplus, from $1.77 billion in 2016, to $2.1 billion in 2017, $6.8 billion in 2018, $10.9 billion in 2019 and $19 billion in 2020.

Of which, the export value of processed industrial goods has increased from 80.3 per cent in 2016 to 85.2 per cent last year.

The number of goods items with export value of over $1 billion has increased from 28 items in 2016 to 31 items in 2020.

Moreover, the free trade agreements have also contributed to Viet Nam's fast and sustainable export development, reducing dependence on one or a few markets.

Deputy Minister of Industry and Trade Tran Quoc Khanh cited a report by the WTO last year as saying that among the top 50 merchandise traders, Viet Nam recorded the biggest increase in the world's rankings, leaping from the 39th place in 2009 to the 23rd position in 2019.

The numbers reflect that Viet Nam was an open economy after joining the WTO and seriously realising its commitments, he stressed.

Moreover, the signing and implementation of FTAs helped the country attract more foreign direct investment (FDI), creating momentum for the national economy, the official added.

According to Khanh, it is the result of implementing many policies on innovation and restructuring the economy associated with growth model innovation for a long period, improving productivity and amending regulations.

Besides that, there is the process of improving the business and investment environment towards modernity and transparency to create fair competition for businesses.

However, since Viet Nam has integrated into the global market, its export growth has been fast but not steady and very vulnerable.

Moreover, local businesses have mainly processed export products or been trade agencies. Foreign direct investment (FDI) enterprises are also adapting and taking the advantages of FTAs better ​​than Vietnamese enterprises.

The products with fast export growth rate and large export volume still have limitations in terms of productivity, area and exploitation capacity, such as agriculture, fishery and mineral products or depend on imported technology and raw materials, such as textiles, leather and footwear.

At the same time, the number of trade remedy investigation cases against Vietnamese exports has also increased.

To support businesses, Ngo Chung Khanh, Deputy Director of the MoIT’s Multilateral Trade Policy Department, said apart from reducing administrative procedures, the ministry would continue communication work to raise domestic firms’ awareness of the FTAs.

The ministry would speed up the building of the FTA Portal (FTAP), he said, adding that more than 20 ministries and agencies would join a working group to operate and upgrade the portal.

Deputy Minister Khanh affirmed that Viet Nam would further promote trade policies comprehensively and synchronously to boost economic development in tandem with sustainable development.

Viet Nam would work harder to effectively implement the present international commitments and FTAs, while seeking potential partners to conduct negotiations on new FTAs, thereby helping to expand trade ties in the future, he said. 

Reference exchange rate down 9 VND on November 10

The State Bank of Vietnam set the daily reference exchange rate at 23,100 VND/USD on November 10, down 9 VND from the previous day.

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,793 VND/USD and the floor rate 22,407 VND/USD.

The opening-hour rate at commercial banks remained stable.

At 8:40 am, Vietcombank listed the buying rate at 22,530 VND/USD and the selling rate 22,760 VND/USD, unchanged from November 9.

BIDV also kept both rates unchanged, listing at 22,560 VND/USD (buying) and 22,760 VND/USD (selling)./.

Energy firm honoured at The Solar Future Awards 2021

Vu Phong Energy Group has been honoured as the EPC Company of the Year at “The Solar Future Awards 2021”, the group said on November 9.

Organised by Leader Associates - a global leading renewable energy event organizer, the awards aim to promote the development of Vietnam’s renewable energy and solar projects in Vietnam, to achieve a sustainable future.

The awards have been presented to companies making a substantial contribution to the success of the Vietnam solar energy industry. There are also awards for technological innovations and groundbreaking solutions.

Thanks to its outstanding performance in many solar power projects and innovations, Vu Phong Energy Group has won the title The EPC Company of the Year.

Speaking at the award presentation ceremony, Pham Nam Phong, CEO of the group, said he believes that with a clear strategy, Vietnam will continue to make impressive achievements in energy restructuring and sustainable development, and fulfill the target of net-zero carbon emissions by 2050 as Prime Minister Pham Minh Chinh had committed at the recent 26th United Nations Climate Change Conference of the Parties (COP26).

Vu Phong Energy Group will be a reliable partner of businesses to contribute to Vietnam’s clean energy sector, and join global efforts to protect the environment and deal with climate change, he pledged./.

Government urged to build stronger support industry

The Ministry of Industry and Trade has advised the Government to take drastic actions to improve the role and position of support industry.

Accordingly, the Government’s Decree dated June 4, 2021 supplements several incentives regarding corporate income tax for support industry projects. It benefits firms with new and expansion projects before 2015, or those granted with certificates of incentives for support industrial manufacturing that will receive the highest tax incentives.

At present, support industry firms account for nearly 4.5 percent of those working in manufacturing and processing sector, earning nearly 39.8 million USD and contributing about 11 percent of the total revenue in the sector.

Several domestic spare part manufacturers have been able to meet demand at home and abroad. The domestic capacity of manufacturing support industry products and the rate of domestically-made items in several industries improved.

However, they also exposed shortcomings, such as limited manufacturing and financial ability, the shortage of workforce and technology, low product competitiveness due to high cost and poor quality.

Developing downstream industries is considered important for developing support industry or attracting multinational groups to Vietnam.

Producing and assembling end-products for the domestic support industry will be maintained and expanded, thus laying a foundation for support industry firms to join in the supply chain of end-product makers.

Such requires priority policies such as offering focused assistance, building technical standards to protect domestic manufacturers and consumers, as well as flexible and suitable policies on import tariffs on spare parts./

Businesses struggle to fulfil export orders amid COVID woes

Vietnamese businesses are struggling to fulfil export orders as the COVID-19 outbreak hinders the purchase of raw materials and production, and are at risk of losing customers.

Agricultural import and export company Angimex in An Giang Province is having difficulty fulfilling its rice export orders in the last few months of the year due to rising transport costs and expenses to house staff to ensure safety from the pandemic.

Tran Vu Dinh Thi, its deputy general director, told Tuoi Tre newspaper that the business had incurred losses on some of its export orders due to rising costs.

Do Lap Nghiep, deputy general director of Nam Viet Corporation, said his company had to export more than 15,000 tonnes of shark catfish this year, and if the pandemic situation does not improve in Viet Nam and An Giang, it would not be able to do so.

Kim Ngan, deputy director of the Thanh Ha Fish Sauce Company, told VnEconomy newspaper the company faced high packaging and transportation costs, and also had to pay workers overtime wages to fulfil its export contracts.

But since prices were fixed, some of its contracts were incurring losses, she said.

According to the Viet Nam Association of Seafood Exporters and Producers, many businesses are also struggling with lack of workers and raw materials due to transport restrictions.

Nguyen Dinh Tung, general director of Vina T&T, told Tuoi Tre newspaper the company was only able to buy and export half its usual fruit products due to stringent restrictions in many provinces that require businesses to close at 6pm every day and house staff.

Farmers were also reluctant to plant crops due to the high costs of inputs, he said.

“We are worried that if we do not have enough goods to supply to overseas customers, they will switch to buying from other countries such as Thailand and Mexico. They will buy less from our market, so we will still struggle to sell even if we stabilise in future.”

HCM City’s exports in the first 10 months of the year fell by 2.2 per cent year-on-year. 

Flexibly adapting to pandemic and recovering production

In fact, the degree of flexibility between localities and ministries in the implementation of the resolution is quite different, with many factors having an influence.

Facing the fourth outbreak of the pandemic, the economy reacted very cautiously. There were businesses that chose to suspend operations due to safety concerns, while many others had to close as they could not meet the requirements of the health sector. This is also an issue that many people are concerned about at this point of time.

After more than three weeks of the resolution being implemented, the socio-economic situation in October saw many positive changes. Confidence among people, businesses, and investors about the resilience of the economy has been strengthened.

Economic analysts all agree that the Government has moved in a timely and flexible manner, from a policy of “Zero COVID-19” to safely and flexibly adapting to the pandemic. At the same time, it has made suggestions on “maintaining macro stability”, creating jobs and momentum for the country’s economic growth. The most important thing is consensus among the people and business community.

According to a report from the Ministry of Planning and Investment, the number of businesses returning to operations in October increased 29.8% compared to September, while more than 75% of workers returned to large cities and industrial parks. This eased the pressure from labour shortages experienced by enterprises. Export turnover in October also increased, by 6.4% compared to September, and trade was in surplus after many months of being in deficit./.

More than 5,000 ha of mango in Dong Thap granted area codes for export
A total of 5,284 out of 12,000 hectares of mango in the Mekong Delta province of Dong Thap have secured area and packaging codes for export, a local official has said.
VNA Tuesday, November 09, 2021 18:11
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More than 5,000 ha of mango in Dong Thap granted area codes for export hinh anh 1
Harvesting mangos in Dong Thap (Photo: VNA)

Dong Thap (VNA) – A total of 5,284 out of 12,000 hectares of mango in the Mekong Delta province of Dong Thap have secured area and packaging codes for export, a local official has said.

According to Huynh Tat Dat, Deputy Director of the provincial Department of Agriculture and Rural Development, of the area, 1,019 hectares are qualified for export to developed countries like the US, Australia, New Zealand and the Republic of Korea (RoK), while the remainders are eligible for export to China.

The area covers localities in Cao Lanh city and Cao Lanh district, the official added.

The geographical indication for mango in Cao Lanh is the first of its kind in Dong Thap, which has helped to affirm the quality of the fruit and promote its presence in not only the domestic market but also demanding foreign markets like the US, Australia and Europe.

The grant of the area and packaging codes has also contributed to forming material areas in Dong Thap, mainly in the city and district of Cao Lanh.
More than 5,000 ha of mango in Dong Thap granted area codes for export hinh anh 2
Illustrative image (Photo: laodong.vn)

Dong Thap has selected mango as one of the five products in its agricultural restructuring scheme. The Mekong Delta province has established eight cooperatives, 37 cooperative groups and 23 clubs of mango growers.

Five products of three local production facilities have been certified as OCOP products and sold at supermarkets./.

Insiders put trust in Vietnam’s economic recovery
Despite the challenges facing Vietnam in the fourth wave of COVID-19, many experts and businesses remain confident that the country’s economic outlook will become bright again soon.
VNA Tuesday, November 09, 2021 17:20
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Insiders put trust in Vietnam’s economic recovery hinh anh 1
Illustrative image (Source: VNA)
HCM City (VNA) – Despite the challenges facing Vietnam in the fourth wave of COVID-19, many experts and businesses remain confident that the country’s economic outlook will become bright again soon.

Warrick Cleine, Chairman and CEO of KPMG in Vietnam and Cambodia, said Vietnam has secured macro-economic and social stability, a strength for the country to attract foreign investment and recover growth in many areas, especially when most of business leaders and investors are always attracted by a safe and predictable investment and business environment.

Apart from other advantages, economic growth stories and the interaction between the Government and the domestic and foreign business communities will also encourage business leaders and investors to access the market, he noted.

Predicting the recovery progress of the Vietnamese economy, Alain Cany, Chairman of the European Chamber of Commerce (EuroCham) in the country, held that thanks to solid fundamental factors, the economy will revive gradually in at least the next six months before the growth pace becomes stronger in the latter half of 2022.

Some sectors have still benefited from the outbreaks such as e-commerce, which posted a growth rate of 18 percent and revenue of over 11 billion USD in 2020 and is forecast to continue enjoying breakthrough expansion this year.

Besides, the free trade agreements that Vietnam has joined are also expected to facilitate production and export activities in many industries like seafood, coffee, apparel, footwear, and mechanical equipment, Cany said.

Truong Gia Binh, Vice Chairman of the advisory council for reforming administrative procedures, head of the research committee for developing of the private economic sector, and Chairman of the FPT Group, said since the Government changed the anti-COVID-19 policy in October, the economy has reopened quickly.

The Government is planning a new relief package to help with economic recovery, and it has also been applying technology to put the pandemic under control, he noted, adding that more measures, including using artificial intelligence and technology, will be taken to quickly control the situation and shore up the economy./.

Quang Ninh vows to create optimal conditions for Taiwanese investors

The northern province of Quang Ninh always prioritises calling for investment from and creating the most favourable conditions for investors from Taiwan (China), especially in the fields of processing, manufacturing, electronics and semiconductor industries in its industrial zones.

The statement was made by Chairman of the provincial People’s Committee Nguyen Tuong Van during an online conference on promoting investment in the province on November 9.

Shi Ruiqi, Chief Representative of the Taipei Economic - Cultural Office in Hanoi, highly appreciated the investment environment of Vietnam in general and Quang Ninh in particular, especially in the transport infrastructure system.

He said Quang Ninh is a Vietnamese locality worth being invested in by Taiwanese enterprises, as the province has topped the Provincial Competitiveness Index (PCI) for four consecutive years, and the local authorities have taken the initiative in supporting investors.

With 16 industrial parks, three border gate economic zones and two coastal economic zones, covering a total area of 377,670 ha, Quang Ninh province eexpects to continue attracting Taiwanese investors, particularly in the processing, manufacturing, electronics and semiconductor industries.

In addition, Quang Ninh has high-quality human resources and skilled workers. In 2020, the rate of trained workers is estimated at 85 percent, much higher than the country's average rate of about 65 percent.

Taiwan has run more than 2,800 investment projects worth over 35 billion USD, ranking fourth among countries and territories pouring capital into Vietnam. There are currently 10 Taiwanese-invested projects worth 138.48 million USD in Quang Ninh province./.

Trade minister presents Viet Nam’s economic recovery priorities at APEC Meeting

Vietnamese Minister of Industry and Trade Nguyen Hong Dien highlighted Viet Nam’s priorities in national economic recovery, making contributions to Asia-Pacific Economic Cooperation (APEC)’s general development while attending the 32nd APEC Ministerial Meeting on Monday and Tuesday.

During the first working session on Monday, ministers of 21 APEC economies focused on solutions to accelerate economic recovery through trade activities and initiatives. The ministers listened to the performance reports and recommendations presented by APEC Business Advisory Council, Pacific Economic Co-operation Council and Ngozi Okonjo-Iweala, World Trade Organisation (WTO) director-general on the WTO progress in recent years.

At the second working session on Tuesday, the ministers discussed promoting economic recovery through economic and technical co-operation tools.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien said Viet Nam would prioritise restoring the supply chain, ensuring goods’ circulation, safe and smooth production and business activities.

Viet Nam would support enterprises, business households and people to restore and promote production and stabilise their lives through the Government's supportive packages, as well as specific solutions including exemptions and reductions of various types of taxes and fees in the COVID-hit areas, developing a safe movement process to ensure domestic movement towards opening the border through the completion of a new immigration process and recognition of vaccine passports, he said.

Viet Nam would implement large-scale investment programmes for inter-regional transport infrastructure, green energy, national digital infrastructure with the involvement of public investment and the participation of foreign investors and private investment, he said.

He affirmed Viet Nam’s support for an open, balanced, non-discriminatory, rules and principles-based multilateral trading system.

Viet Nam would work closely with WTO members to achieve practical and meaningful results at the upcoming 12th WTO Trade Ministers Meeting, he said.

The minister emphasised that APEC should continue to prioritise capacity building activities, information sharing and good practices to help developing economies narrow the development gap, thereby integrating quickly and effectively into the multilateral trading system. 

Binh Duong calls for stronger investment from RoK

An online conference to promote investment from the Republic of Korea in the southern province of Binh Duong was held by the provincial People’s Committee and Becamex IDC Corp on November 9.

Speaking at the event, Vice Chairman of the provincial People’s Committee Nguyen Loc Ha said after returning to the "new normal", local authorities have called for  foreign investment towards creating a new wave of development.

Besides promoting socio-economic development, Binh Duong also actively expands bilateral and multilateral cooperation in many fields. The locality has so far established bilateral cooperation with 10 foreign localities and is an official member and reliable partner of three international organisations namely the world’s Intelligent Community Forum (ICF), the Asian Economic Cooperation Horasis Forum, and The World Trade Centres Association (WTCA).

In its development strategy, Binh Duong will continue to implement the project "Binh Duong Innovation Zone", which will focus on planning a science and technology industrial park, a creative start-up ecosystem, promoting balanced economic development, increasing the proportion of services, especially cross-border e-commerce.

In the first 10 months of 2021, investors poured 1.92 billion USD in total into 59 new investment projects, 23 existing projects and 155 projects invested in the form of capital contribution and share purchase.

As of October 31, Binh Duong was home to 4,008 projects from 65 countries and territories with a total registered capital of 37 billion USD, ranking the second nationwide in attracting foreign investment.

In the first 10 months, despite facing difficulties and challenges due to the COVID-19 pandemic, the locality’s export turnover was estimated at 26.4 billion USD.

Becamex IDC Corp’s representatives briefed participants on the province’s investment environment and projects developed by Becamex IDC to meet investment needs of businesses.

Participants were also updated on orientations to build smart cities, Binh Duong Innovation Zone, transport infrastructure development, logistics network, and high-quality human resources training, to make it ready for welcoming new foreign projects, including those from the RoK.

Lee Jeong-won, a representative from Coex Corporation of the RoK, presented the firm’s plan to develop the World Trade Centre in Binh Duong New City (WTC BDNC) project, saying that this is expected to be a favourable investment destination for Korean businesses and investors that are interested in Binh Duong.

Ha expressed his hope that in 2022 and following years, Binh Duong will continue to receive active cooperation from the RoK side and partners, thus supporting the locality to  promote  the level of bilateral cooperation and expand multilateral cooperation towards creating breakthroughs in its international integration and development in the future./.

Flexibly adapting to pandemic and recovering production

 

Resolution No 128 from the Government on safely and flexibly adapting to the COVID-19 pandemic is gradually coming to life and encouraging signs are being seen. How best to implement the resolution into the future is now a matter of great concern.
 
In fact, the degree of flexibility between localities and ministries in the implementation of the resolution is quite different, with many factors having an influence.

Facing the fourth outbreak of the pandemic, the economy reacted very cautiously. There were businesses that chose to suspend operations due to safety concerns, while many others had to close as they could not meet the requirements of the health sector. This is also an issue that many people are concerned about at this point of time.

After more than three weeks of the resolution being implemented, the socio-economic situation in October saw many positive changes. Confidence among people, businesses, and investors about the resilience of the economy has been strengthened.

Economic analysts all agree that the Government has moved in a timely and flexible manner, from a policy of “Zero COVID-19” to safely and flexibly adapting to the pandemic. At the same time, it has made suggestions on “maintaining macro stability”, creating jobs and momentum for the country’s economic growth. The most important thing is consensus among the people and business community.

According to a report from the Ministry of Planning and Investment, the number of businesses returning to operations in October increased 29.8% compared to September, while more than 75% of workers returned to large cities and industrial parks. This eased the pressure from labour shortages experienced by enterprises. Export turnover in October also increased, by 6.4% compared to September, and trade was in surplus after many months of being in deficit./.

European firms optimistic about Vietnam's business environment after social distancing

Vietnam posted 18.3 percentage points in the Business Climate Index (BCI) in the third quarter of 2021 that was recently announced by the European Chamber of Commerce in Vietnam (EuroCham), a slight rise over the record low of 15 percentage points recorded in the most difficult time of the fourth wave of COVID-19 infections in September.

Though the index remains low, the BCI noted improving perceptions about Vietnam’s economic outlook. Besides, leaders of European businesses and investors involving in the BCI survey showed their optimism about Vietnam’s business environment after social distancing measures were lifted and the country entered a “new normal”, especially in trade and investment areas.

Nearly a half of the business leaders and investors predicted a stable and improved economic outlook for Vietnam in the fourth quarter.

At the same time, the proportion of business leaders planning to maintain or increase their investments in the fourth quarter rose to 69 percent, with revenues projected to rise.

EuroCham Chairman Alain Cany said that the most important thing is that the index is now moving in the positive direction. With the pandemic now put under control in Vietnam, the optimism of European business leaders and investors will continue to grow as more and more companies resume normal operations and consumer confidence rises, he said.

Meanwhile, CEO of YouGov Vietnam Thue Quist Thomasen said that while the confidence in the prospects for Vietnam’s business environment has seen a small but encouraging rise, companies are still hesitant when it comes to their own operations and plans.

This suggests that business leaders are waiting to see how conditions and regulations in the ‘new normal’ will be unfolded before making significant commitments regarding investment projects or recruitment plans, he said./.

New approach, mindset on industrialisation, modernisation discussed

A symposium on new mindset and approach on industrialisation and modernisation to 2030, with a vision until 2045, was organised by the Party Central Committee's Economic Commission in coordination with relevant agencies in Hanoi on November 9.

This is one of 10 symposiums within the framework of the third Industry 4.0 Summit and Expo themed "Accelerating modernisation and industrialisation in digital era”, which is taking place from November 9 to December 6.

Addressing the event, Vice Chairman of the Party Central Committee's Economic Commission Nguyen Duc Hien emphasised that Vietnam has set a goal of becoming a developing country with modernity-oriented industry, surpassing the low-middle income level by 2025, and a developing nation with modern industry and high-middle income by 2030.

Vietnam aims to become a developed and high-income country by 2045, he added.

To achieve the above-mentioned goals, one of the key tasks is to promote industrialisation and modernisation on the basis of scientific and technological advances and innovations, Hien stressed.

At the same time, Vietnam needs to identify the context and major trends of industrialisation and modernisation, thus introducing new mindset and approach on industrialisation and modernisation, he noted.

At the symposium, domestic and foreign participants shared and clarified issues about the context and major trends of industrialisation and modernisation in the world as well as international experience in realizing industrialisation and modernisation, and innovation experience to accelerate post-COVID-19 economic recovery./.

FDI flows into Quang Ninh province rise sharply

FDI flows into Quang Ninh has been rising strongly thanks to the northern province’s efforts to improve its business climate and remove bottlenecks in terms of policies and infrastructure.

Since the launch of its first industrial park (IP), Cai Lan, in 1997, the province has attracted about 7.4 billion USD, 56.5 percent of which, or 4.18 billion USD, sourced from FDI, to develop infrastructure at local economic zones, IPs, industrial clusters and secondary projects.

Since 2012, Quang Ninh has seen increasing presence of major foreign investors, with two projects of Hong Kong (China)’s Texhong Group among the first. Having a combined investment of over 500 million USD, one involved the first phase of Texhong Ngan Long’s fibre factory at Hai Yen IP in Mong Cai city while the other developing infrastructure for the first phase of Texhong Hai Ha IP in Quang Dien commune, Hai Ha district.

The Texhong Hai Ha IP now houses 11 projects with a total registered investment exceeding 727 million USD.

In March 2018, the province granted an investment license to Thai industrial estate developer Amata to construct 714-hectare Song Khoai IP in Yen Hung district at a cost of more than 155.5 million USD.

It was just the first move in Amata Vietnam’s plan to invest over 2 billion USD in developing an eco-industrial and urban area in Quang Ninh, said CEO Somhatai Panichewa.

Belgium-based company DEEP C and its partners have also poured capital in developing infrastructure at 369.8-hectare Nam Tien Phong IP and 1.193-hectare Bac Tien Phong IP in Quang Yen Economic Zone.

The involvement of major industrial estate developers has helped the province lure more high-quality secondary projects. For example, China’s Jinko Solar, the world’s leading solar panel manufacturer, poured close to 500 million USD into developing a solar PV cell factory at the Song Khoai IP in March 2021.

Less than six months later, it received a license for its second project in Vietnam worth 365 million USD. The silicon solar panel project is expected to generate over 25.65 trillion VND (1.13 billion USD) in revenue, pay 461.3 billion VND in taxes and provide jobs for 2,188 local people.

Taiwan’s Foxconn, one of the main supplier of tech giants such as Apple, Motorola, Nokia and HP, also has a production base in Quang Ninh. Its facility at Dong Mai IP in Quang Yen township was put into operation at the end of last year.

Some 40.35 trillion VND (1.75 billion USD) worth of investment has landed into IPs and economic zones under the management of Quang Ninh Economic Zone Management Authority, excluding Van Don Economic Zones, in the first nine months of this year, 39 percent higher than the yearly plan. This included nearly 1.07 billion USD from FDI./.

Wood industry’s export target of 14.5 billion USD reachable

Wood enterprises are getting back to normal after a long suspension of operations due to the COVID-19 pandemic, and are confident to earn a total of 14.5 billion USD from exports this year.

According to the Vietnam Timber and Forest Product Association (VIFOREST), the export turnover of Vietnam’s wooden and forest products hit 10.76 billion USD in the first nine months of 2021, up 30.5 percent year-on-year.

The export turnover of wood and wooded products reached 11.5 billion USD as of mid-October, while that of non-timber forest products was 0.7 billion USD.

In a recent survey by Forest Trend, 83 percent of surveyed enterprises said they have had recovery plans in which they will change their business strategies, ensure safe production, and increase the processing scale.

Experts said that materials and labour are two of the most important factors affecting production and business results of companies at this time.

Together with advantages of free trade agreements (FTAs) and firms’ activeness in increasing their operation capacity by 20-30 percent in the remaining months of this year, the wood industry can achieve its goal of 14.5 billion USD from exports this year, up 15 percent from 2020./.

French expert pins high hope on foreign companies’ prospects in Vietnam

Former French Ambassador to Vietnam Jean-Noël Poirier has highlighted the significance of Vietnamese Prime Minister Pham Minh Chinh’s freshly-ended visit to France, saying that it attracted French businesses’ special interest.

In an interview granted to the Vietnam News Agency (VNA)’s correspondent in France, Poirier, who is now working as a foreign investment consultant in Vietnam and Southeast Asia, affirmed that PM Chinh’s trip was a great success and it achieved the set targets.

The two sides expressed their desire to revive cooperation activities between ministries and sectors as well as between businesses, he noted.

The French expert said after this visit by the Vietnamese Government leader, many French companies have begun to consider the possibility of returning to markets abroad and heading to the Southeast Asian countries, especially Vietnam, which promises a prosperous future and can bring them many cooperation opportunities.

Vietnam’s political and social situation has been always stable, he said, noting that this is the reason why foreign businesses will not have to bear much risk when investing in Vietnam.

However, he mentioned the cultural obstacle that the two sides need to solve, saying that to address cultural differences for better mutual understanding, French and Vietnamese partners should be open and show goodwill to cooperate with each other.

The expert also expressed his belief that there will be more Vietnamese investors investing in France in the future.

According to Poirier, the Indo-Pacific region is increasingly attracting attention from big countries in the world, including France, because this is a strategic area for international trade.

He underlined the need to ensure freedom of navigation in the region because it is where most of global maritime trade activities take place./.

Vietnam hosts first Hallyu Creative Content Expo

The 2021 K-Content Expo got underway at the Pullman Hanoi Hotel on November 9 in support of Korean content developers looking to ramp up trade promotion in the Vietnamese market, whilst also promoting exchanges in the field of creative content between the two countries.

The opening ceremony of 2021 K-Content Expo (Photo: congthuong.vn)
The three-day exhibition was jointly organised by the Korea Creative Content Agency in Vietnam (KOCCA Vietnam), the Korea Trade-Investment Promotion Agency in Hanoi (KOTRA Hanoi), and the representative office of the Korea Copyright Commission in Hanoi (KCC Hanoi).

With several content developers from the RoK encountering difficulties when seeking partners and expanding their export markets due to the COVID-19 pandemic, the event has helped to introduce creative content regarding Hallyu culture, along with opening up opportunities for co-operation among content creators of both sides.

2021 K-Content Expo was held via an online platform as part of efforts to ensure pandemic prevention measures, with the highlight of the event being B2B (Business to Businesses) meetings to connect Vietnamese and Korean enterprises.

Furthermore, the K-Content seminar was organised during the event as a means of providing relevant information on copyright issues and production co-operation for Korean businesses which are keen to enter the Vietnamese market.

Hong Jeong Yong, representative director of KOCCA Vietnam, said that the event, which is the first of its kind to be held in the nation, has been of great significance as it served to support Korean content developers to successfully enter the local market. This is in addition to promoting Hallyu culture, thereby further developing the strategic co-operation relationship between the two countries.

He added that KOCCA Vietnam will continue to carry out a range of exchange activities and co-operation projects moving forward in celebration of the 30th anniversary since the establishment of bilateral diplomatic ties.

RCEP creates higher export opportunities for local businesses

The enforcement of the Regional Comprehensive Economic Partnership (RCEP) on January 1, 2022, is anticipated to offer a wealth of fresh opportunities to businesses to penetrate a large market of 2.3 billion consumers and US$26.2 billion in global output, according to insiders.

Nguyen Anh Duong, director of the Central Institute for Economic Management (CIEM)'s Department for General Economic Issues and Integration Studies, says thanks to preferential tariffs, the enforcement of the RCEP will exert a positive impact on Vietnamese export growth and contribute to connecting regional production chains.

The trade deal is expected to promote ASEAN’s central role in regional initiatives, helping Vietnamese enterprises expand into new markets and become deeper involved in both regional and global supply chains, whilst further attracting foreign investment, stresses Duong.

Sharing this same view, Nguyen Thi Quynh Nga, deputy director of the Multilateral Trade Policy Department of the Ministry of Industry and Trade (MoIT), points out that joining the RCEP will open up opportunities for both import and export activities, along with the development of new value chains and the diversification of supply sources.

The establishment of the world's largest free trade area under the RCEP will serve to create a long-term stable export market for Vietnam, contributing to the implementation of the country's policy of building an export-oriented economy amid recent supply chain disruptions, Nga further elaborates.

According to experts, the rules of origin set out under the RCEP are expected to help several industries take the full advantage of tax incentives, particularly as its standards are not as high as those of new-generation free trade agreements (FTAs) such as ​​the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), both of which Vietnam have already signed.

Furthermore, the RCEP will contribute to simplifying customs procedures, duly facilitating greater trade activities, and reducing transaction costs for businesses.

Experts say through the harmonisation of the rules of origin under the trade pact, Vietnamese goods will be able to find it easier to meet requirements for enjoying preferential tariffs, particularly as input materials mainly come from RCEP member countries, especially in major markets such as Japan, Australia, and the Republic of Korea.

Nguyen Thi Thu Trang, director of the Center for WTO and Integration under the Vietnam Chamber of Commerce and Industry, says the RCEP will bring together all of the nation’s largest supply sources of imported goods, accounting for 70% of total import turnover, while simultaneously gathering together leading Vietnamese FDI partners such as the RoK, Japan, and China.

The RCEP, signed last November, is a proposed free trade agreement between the 10 member states of ASEAN and its six dialogue partners, namely China, Japan, the Republic of Korea, India, Australia, and New Zealand. 

This will represent the world’s largest trade liberalisation FTA globally in terms of population size compared to other FTAs, making up roughly 30% of global gross domestic product (GDP).

Specialised credit card to help businesses manage fuel costs effectively

With a credit limit of up to VND3 billion (US$131,700), HDBank's credit card line for buying petroleum will help businesses easily manage fuel costs most conveniently.

Issued online quickly and conveniently, HDBank credit cards specialising in petroleum payment for businesses also offer many incentives such as 100 per cent unsecured loan at 12 per cent annual interest, 45 days interest-free credit and unlimited number of supplementary cards.

Meant for paying for fuel at petrol stations, the card will help businesses easily track and control spending as the daily fuel costs will be notified via messaging and transaction statements.

Gasoline payment is an essential daily need for businesses, especially those that use various kinds of vehicles. But petroleum transactions are still mainly paid in cash or on credit and checking the purchases is done manually.

These traditional payment methods pose a lot of inconvenience for vehicle owners and businesses such as difficulty in controlling the actual purchase of petrol, time and effort needed for checking and comparing debts and aggregating records, payment documents and so on.

HDBank's specialised credit card for petroleum purchases will help overcome these limitations and promote non-cash payments in the economy.

This is part of the bank’s digital transformation activities to achieve its strategy of diversifying services, increase utilities and provide specialised products that are appropriate for each customer segment and need.

HDBank's digitisation journey has helped millions of customers carry out financial transactions smoothly, overcome obstacles amid social distancing and at the same time help create the habit of cashless payment among customers.

The bank has optimised financial support services for corporate customers with its comprehensive eCMB digital toolkit, including opening a business account online (eAccount), 24/7 online lending (eCredit), issuing L/C online (eLC), online international money transfer (eTT), selling foreign currencies online (eFX), online factoring (eFactoring), and eDrawdown – Disbursement of loans online.

Along with developing digital-based products, HDBank has also earmarked a VND5 trillion ($220 million) credit package to provide online and another VND10 trillion package exclusively for SMEs to supplement their working capital.

It also has many other credit packages with low interest rates for retail customers and micro enterprises.

The bank has so far set aside more than VND42 trillion ($1.85 billion) to help individual and corporate customers revive and expand production and trading post-pandemic.

HDBank achieved better-than-expected results and reached 82 per cent of its full-year targets in the first nine months of the year.

As of September 30 its total assets were worth VND346.35 trillion ($15.19 billion), 26.7 per cent up from the same period last year.

Loans outstanding increased by 16.1 per cent year-on-year. The standalone and consolidated NPL ratios were below 1 per cent and at 1.4 per cent respectively, lower than at the same time last year.

Loans outstanding to sectors with a high level of risk and restructured debts were well controlled.

The capital adequacy ratio (CAR) and liquidity were maintained at high levels, with CAR (according to Basel II) increasing sharply to 13 per cent compared to 10.9 per cent on September 30 last year, far above the minimum requirement of 8 per cent.

Operating costs continued to be optimised with the cost to income ratio reduced to 39 per cent from 43.8 per cent a year earlier.

Return on equity was 24 per cent compared to 21.1 per cent in September 2020.

Overcoming the impact of the pandemic, HDBank continued to make steady progress, giving it the confidence to achieve and even go past its 2021 targets. 

Shares reverse uptrend to drop on profit-taking pressure

Viet Nam's stock market reversed to drop slightly on Tuesday as a series of large-cap stocks lost ground on strong profit-taking pressure.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) lost 0.41 per cent to end at 1,461.50 points.

The index had gained 0.76 per cent to end Monday at 1,467.57 points.

The market's liquidity was negative with 200 stocks rising, while 253 slid.

Investors poured over VND30 trillion (US$1.3 billion) into the southern exchange, equivalent to a trading volume of 1 billion shares.

The 30 biggest stocks tracker VN30-Index lost 0.56 per cent, to end at 1,527.13 points. Nine in the VN30 basket climbed, while 20 decreased and one stayed flat.

Losers in the VN-30 group included Saigon-Hanoi Bank (SHB), down 3.2 per cent, Kido Group JSC (KDC), losing 2 per cent, Phu Nhuan Jewelry (PNJ) falling 1.9 per cent, Masan Group (MSN) dropping 1.8 per cent, PetroVietnam Gas JSC (GAS) losing 1.9 per cent and Vinamilk (VNM) falling 1.1 per cent.

“Today, the market experienced a slight correction due to profit-taking pressure after setting a new high in the session. At the end of the session, the VN-Index dropped more than 6 points,” said BIDV Securities Co.

“Market breadth tilted to the negative side. Regarding the transactions of foreign investors, today they were net buyers on the HSX and net sellers on the HNX.

“The market may maintain the movement trend around 1,460 points as market liquidity is still at a stable level,” it said.

Foreign investors net bought VND7.57 billion on HOSE, including Hoa Phat Group (HPG) with VND172.93 billion, Vietinbank (CTG) with VND94.99 billion, and Vinhomes (VHM) with VND85.93 billion.

Foreign investors were net sellers on HNX with the value of VND1.71 billion.

On a sector basis, losers were wholesale, retail, information and technology, banking, food and beverage, rubber production, construction, construction materials and seafood processing.

On the Ha Noi Stock Exchange (HNX), the HNX-Index gained 0.12 per cent to end Tuesday at 432.64 points.

The index had risen 1.04 per cent to end Monday at 432.10 points.

During the trading session, more than 143 million shares were traded on HNX, worth nearly VND3.8 trillion. 

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