The resort real estate market in Viet Nam has recorded impressive growth in domestic tourism, but international tourism has not recovered as expected.

Domestic tourism rebounded well in the first ten months of the year, with 91.8 million domestic arrivals, exceeding 85 million in 2019, according to Savills Viet Nam.

The return of international guests was underwhelming, though, with only 2.3 million arrivals in the first ten months of 2022, equal to only 16 per cent of same period of 2019. Russia and China are key source markets, and political and COVID disruptions mean these guests have yet to return.

In 2022, South Korea will be the largest source, with 620,000 arrivals or 26 per cent of international arrivals. On the other hand, there have been strong upticks in Indian arrivals, with 82,000 arrivals, representing an average monthly growth rate of 51 per cent.

"The recovery for coastal resorts has been slower than anticipated because of the limp international demand. However, several luxury and boutique resorts have performed well, showing that high-quality management and products pay off, especially in market weakness. In addition, several hotels in HCM City and Ha Noi have recovered with encouraging results from business travellers, long-term guests, and MICE groups," Mauro Gasparotti, Director of Savills Hotels Asia Pacific, said at Meet The Experts, a conference on the development of hospitality and branded residences on the real estate market held in Ha Noi on November 10.

Matthew Powell, Director, Savills Hanoi, commented: "Branded residences, as a property sector, has proved incredibly resilient in the face of global uncertainty and change. The sector has not only survived the disturbance but continues to thrive."

"Over the past ten years, the sector has grown by over 150 per cent, and the pipeline of future branded residences remains strong, with future projects set to double current supply offerings by the end of the forecast period."

The conference also stressed the associated risks of poorly planned projects. The failure to hand over projects on time or with the expected financial commitments has impacted the appetite for the second home market.

Nearly 75 per cent of operating condotel and branded residence projects fulfilled their guaranteed returns. However, amid diminishing demand from key source markets and increasing supply, existing projects with impractical financial commitments are struggling.

The pandemic and market downturn mean industry stakeholders have had time to reflect on what has been done right and what could be improved for enduring and sustainable growth. With the market's potential, it is time to ensure products are suited to the future. 

Australia increases shrimp import from Vietnam

Australia’s import of shrimp from Vietnam has surged this year while imports from Thailand and China have dropped, the Vietnam Association of Seafood Exporters and Producers said, citing data of the International Trade Center.

Australia’s import of Vietnamese shrimp increased by 51% in the first seven months of 2022. Processed products accounted for 40% of Vietnamese shrimp shipment to the Australian market.

The International Trade Center said due to China’s Zero-COVID policy, China's shrimp production faced difficulties, and output decreased, causing the country's shrimp exports to Australia to fall.

Moreover, Australian customers favour processed shrimp products while Thailand's processing level is not as high as Vietnam's.

Australia's total shrimp imports in the first seven months of this year were valued at nearly 234 million USD, up 29% over the same period last year.

VinFast selects Shell Recharge Solutions to offer at-home charge points to European customers

VinFast, the premium Vietnamese battery electric vehicle (EV) manufacturer and Shell Recharge Solutions on November 10 announced a new collaboration to supply advanced at-home charging equipment and services to VinFast customers in Germany, France, and the Netherlands.

The collaboration supports both VinFast’s entrance as a major EV manufacturer in the European market and Shell Recharge Solutions’ mission to enable cleaner transportation for everyone, driving the way towards a lower-carbon future.

VinFast customers will be able to conveniently order charging equipment and installation from Shell Recharge Solutions using the VinFast app. The VinFast app is designed to provide clarity and reassurance, guiding customers through a potentially unfamiliar EV purchasing process. The ability to deliver a simple and effective customer journey, as well as a strong future technology roadmap, makes Shell Recharge Solutions the ideal partner to VinFast’s digital-centric approach to the market.

Digital transformation accompanying SMEs for viability and growth

Deputy Minister of Planning and Investment Tran Duy Dong

Vietnam is considered one of the countries with a good digital economy development rate in the ASEAN region.

Tran Duy Dong, Deputy Minister of Planning and Investment highlighted digital transformation as the key to national competitive advantages. For that reason, the MPI has introduced many favourable policies to encourage the process among small- and medium-sized enterprises (SME).

Vietnam is considered one of the countries with a good digital economy development rate in the ASEAN region. Vietnam's digital economy reached $21 billion in 2021, up 31 per cent on-year, contributing more than 5 per cent to the country's GDP.

Currently, Vietnam has about 900,000 enterprises operating with more than 97 per cent of private enterprises at small and medium scale, playing an important role in the socioeconomic development of the country.

However, the deputy minister also highlighted several obstacles facing enterprises on their digital path. Specifically, about 60 per cent of enterprises mention high transformation costs as a major obstacle to the process, whereas 52.3 per cent point to an inadequate labour force.

Without digital platforms in place, Vietnam will not be able to step-up digital transformation in SMEs, according to Nguyen Huy Dung, Deputy Minister of Information and Communications (MIC). He asserted that digital platforms must make technologies accessible to SMEs as basic utilities to the public.

Once the platforms are used, digital technologies can be easily distributed to SMEs on a pay-as-you-use basis without the need for advanced technological systems established in the enterprises. He also revealed that over 500,000 SMEs have begun to take an interest in digital platforms, and 70,000 SMEs have used them. In addition, many platform users have been met successfully.

Introducing the policy to support businesses in digital transformation, Bui Thu Thuy, deputy director of the MPI’s Agency for Enterprise Development said that after nearly two years of implementation, the programme supporting SMEs for digital transformation with the United States Agency for International Development (USAID) has carried out many activities.

Tran Minh Tuan, director of the Digital Economy and Digital Society Department under the MIC, highlighted several reasons behind enterprises embracing digital transformation. He said the enterprises go digital mostly to improve competition, access new markets, produce new products, and enhance efficiency.

Ruici Tio, policy programmes manager at Meta, said Vietnam has the highest adoption of business messaging among countries surveyed by the corporation, with 73 per cent of Vietnamese consumers adopting such means of communication.

HCM City serves 2.65 million foreign visitors in 10 months

Ho Chi Minh City welcomed 546,000 international visitors in October, lifting the total number of foreign arrivals to the city in the last 10 months to 2.65 million, according to the municipal Department of Tourism.

The city’s tourism sector has developed new products, and prepared events to promote local tourism potential, aiming to attract more tourists in the remaining months of the year.

Local travel agencies have been improving the quality of products to bring unique and unforgettable experience to visitors.

They have also joined events and fairs to introduce tourism attractions in the city to international travelers.

Ho Chi Minh City’s travel market is forecast to boom later this year and early next year, especially during Christmas and New Year holidays.

Goods throughput at sea ports up 3% in 10 months

Vietnam's sea ports handled over 600 million tons of goods in the first 10 months of this year, up 3% annually, and fulfilling 84% of the yearly target, according to the Vietnam Marine Administration.

In the third quarter of this year, many seaport enterprises recorded profits despite difficulties caused by socio-economic fluctuations.

The Port of Hai Phong handled the largest cargo throughput in the North, logged nearly 9 million USD in consolidated pre-tax profit in the three months, up 20% against last year.

Meanwhile, the Da Nang Port, the largest container seaport in the central region, recorded its profit after corporate income tax reaching over 2.4 million USD, up over 12 percent over the same period last year.

Green office receives increasing attention from investors

As workplaces have drawn greater attention of enterprises and employees, investors have focused more on the development of green office in their projects.

According to experts from Savills Vietnam, investors have paid greater attention to sustainable construction in real estate, especially green office, to satisfy the new requirements of tenants.

They predicted that by 2025, green office will become a major trend. Hoang Nguyet Minh, Commercial Leasing Director of Savills Hanoi, said that from now to 2024, at least six office projects will receive green certificates.

Nguyen Le Dung, Director of the Hanoi Office of Viva Land, said the COVID-19 pandemic with unpredictable impacts has made tenants pay more and more attention to the quality of the building and the benefits in space it brings.

Ong Khing Wee, Deputy General Director of Viva Land, said that changes in the viewpoints of businesses and employees about workspaces have created opportunities for green buildings. The green office trend will continue to grow because of the increasing demand from investors and businesses themselves, he asserted.

Savills’ statistics for the Hanoi market showed that leasing activities of the office segment have grown strongly, mostly from the vigorous economic development of the capital city with GDP expansion of 15.7% in the third quarter and sustainable FDI inflows.

Currently, the total office supply in the Hanoi market is about 2.13 million sq.m, coming from 189 projects, down 1% quarter on quarter after two buildings stopped leasing. Savills Vietnam forecast that the supply in the non-CBD area from 2023 to 2025 is likely to be quite abundant with about 699,000 sq.m from 19 new projects, mostly in the city’s western region.

VinFast to showcase four EV models at Los Angeles Auto Show 2022

Vietnamese automaker VinFast has announced that it will participated in Los Angeles Auto Show 2022 (LAAS 2022) scheduled to take place from November 17 – 28.

At the show, VinFast will display four all-electric SUV models, VF 6, VF 7, VF 8, and VF 9 which represent the most popular segments B-C-D-E. For the first time, US customers will experience the interior and exterior design details of the VF 6 and VF 7 models crafted by Torino Design.

Those in California will also be able to experience a VF 8 ride-along at the test track area at LAAS 2022. The activity affirms VinFast's rapid development of the VF 8 model when it debuted as a show car at LAAS 2021. 

Copyright registrations rise up to 10% each year

The registrations of copyright and relevant rights in Vietnam increased from 8-10% annually over the past years, heard a workshop held by the Copyright Office of Vietnam (COV) under the Ministry of Culture, Sports and Tourism in Hanoi on November 11.

More than 8,000 certificates were granted in 2019. The number exceeded 10,000 in 2020 and was almost maintained last year despite the COVID-19 and in the first ten months of this year.

Of the works seeking for certification, those in applied art made up 44%; music 25%; written works, 14%; and computer programme,13%.

COV Deputy Director Pham Thi Kim Oanh affirmed that Vietnam has paid due attention to intellectual property (IP) rights, including copyright and relevant rights, adding that individuals and organisations have been aware of the significance of copyright registration, especially amid the development of the digital environment.

At the third session of the 15th National Assembly, the Law on Amendments and Supplements to some Articles of the Law on Intellectual Property was adopted with 95% of approval votes.

Petrol prices surge in latest adjustment

The retail price of RON 95-III bio-fuel almost reached 24,000 VND (0.97 USD) per litre from 3pm on November 11, following the latest adjustment by the Ministries of Industry and Trade, and Finance.

Specifically, the retail price of RON 95-III increased by 1,110 VND to 23,860 VND per litre, and that of E5 RON 92 climbed to 22,710 VND per litre, up 840 VND.

Diesel 0.05S is now sold at 24,980 VND per litre, down 90 VND, while the price of kerosene and mazut rose by 960 VND and 680 VND to 24,740 VND per litre and 14,760 VND per kilogramme, respectively.

The two ministries also decided to extract 200 VND per litre, and 300 VND per litre from petrol and mazut prices for the petrol price stabilisation fund.

Vietnamese bird's nests, sweet potatoes to be officially exported to China

The leader of the General Administration of Customs of China has signed a protocol on the import of bird's nests and sweet potatoes from Vietnam, the Vietnamese Embassy in China has informed the Ministry of Agriculture and Rural Development (MARD).

The embassy said that the protocol is being sent to Vietnam for the Minister of MARD to sign.

Earlier, China announced that it allowed the official import of Vietnam’s durians and the pilot import of Vietnamese passion fruit. The two sides also signed a protocol on quarantine requirements for fresh bananas, creating favourable conditions for Vietnam to export fresh bananas to China in the coming time.

According to MARD Deputy Minister Phung Duc Tien, China has high demand for bird’s nests, while Vietnam has high potential in the export of the product. Vietnamese bird’s nest quality has been proved, he added.

Requests and negotiations for the official export of the product to China started as early as in 2018.

Currently, Vietnam has more than 22,000 bird nest farming facilities with a total output of about 120 tonnes valuing 450 million USD, accounting for about 3% of the world total output.

Banking sector to develop digital economy, digital society

The State Bank of Vietnam (SBV) has released the banking sector’s plan to implement the national strategy on developing a digital economy and digital society by 2025, with a vision to 2030.

This plan aims at effectively implementing tasks assigned to the banking sector in the national strategy, approved by the Prime Minister on March 31, 2022.

Accordingly, cashless payments will be promoted towards comprehensive financial universalisation. To that end, focal tasks include overhauling regulations and policies on finance, fees, and charges in a way that removes barriers to cashless payments. It also includes developing payment systems, and proposing mechanisms and policies on issues related to a national digital currency.

The SBV will adapt policies in the banking sector to requirements of digital economy and digital society development; devise policies for raising the rate of the sector’s online operations to at least 50%; and issue and fine-tune the sector’s technical standards to serve the development of a digital economy and digital society, especially the standards of digital service quality.

Ministry perfects policies for commercial infrastructure development

The Ministry of Industry and Trade (MoIT) has drafted a circular regulating the classification and management of commercial establishments.

The move aims to develop civilised and modern commercial establishments, facilitate the flow of goods, and help promote socio-economic development in line with the Prime Minister-approved strategy for developing domestic trade by 2030, with a vision to 2045.

Statistics of the MoIT showed that the numbers of supermarkets and trade centres increased sharply to 1,167 and 254 in 2021, from 567 and 95 in 2010, respectively.

Convenience stores have also been booming in recent years, helping to fuel the trading of goods.

However, experts also pointed out that despite a surge in numbers, markets, supermarkets, trade centres, and convenience stores have concentrated in just urban areas while the existing legal framework has not kept pace with development.

SSC, foreign partners to boost green finance for low-carbon economy
     
IFC, in partnership with the Swiss State Secretariat for Economic Affairs (SECO), on Friday signed a new memorandum of understanding (MoU) with the State Securities Commission of Viet Nam to support government efforts to leverage the capital market and tackle climate change through green and sustainable finance.

With IFC's assistance, SSC will promote the adoption of environmental, social and governance (ESG) standards and practices and enforce ESG requirements among market players.

This will help strengthen the sustainable finance framework and encourage innovative financial products such as green bonds, transition bonds, and sustainability-linked bonds to attract international investors looking for sustainable assets.

As Viet Nam aims for a low-carbon growth model and to achieve carbon neutrality by 2050, these efforts are part of a new initiative between IFC and SECO, the Integrated ESG Programme, to help regulators, investors, companies and partners in Viet Nam manage ESG risks and bottlenecks by promoting effective decision-making, and environmental and social (E&S) risk management.

Using IFC's ESG standards, its Performance Standards and Corporate Governance Methodology, the integrated ESG approach addresses critical ESG topics, including effective environmental and social risk management and systems, disclosure and transparency, climate risk and mitigation and gender.

Specific strategy needed to promote Vietnamese products in Thailand
     
Viet Nam should set out a specific strategy for accessing the Thai market as the two countries share similarities in product types, suggested Nguyen Thanh Huy, head of the Viet Nam Trade Office in Thailand.

Distribution and promotion plans should target specific groups of customers, he said in an interview granted to the Vietnam News Agency.

According to the official, his office has coordinated with agencies under the Ministry of Industry and Trade in trade promotion and market development, and the protection of rights and interests of Vietnamese businesses in Thailand.

Viet Nam’s export revenue to Thailand increased from US$5.3 billion in 2019 to $6.15 billion last year. In the first nine months of this year, it stood at $5.5 billion, up 26.7 per cent year-on-year.

Vietnamese products, especially coffee, fruit and handicrafts, have been favoured in Thailand. However, their market potential has yet to be fully tapped due to a lack of breakthroughs in product development orientations.

Given this, Huy said, the office will work to diversify promotion activities, with e-commerce platforms, social networks and technologies to be utilised.

The “Window to Viet Nam” project – a display area and information counter supporting Viet Nam’s trade, tourism, and investment promotion in Thailand – will be further expanded.

Insurance profits decrease due to rising cost of claims
     
The cost of life insurance claims increased in the third quarter of this year and directly affected the profits of businesses.

The Post and Telecommunication Insurance Joint Stock Corporation (PTI) has just revealed unsatisfactory business results for the third quarter.

PTI's revenue reached nearly VND980 billion (US$41.3 million) in this quarter, down 12 per cent compared to the same period last year; while compensation expenditure more than doubled to more than VND770 billion.

Plus commissions and other expenses, the total cost of the insurance business is nearly VND1.15 trillion, causing the company to have a gross loss of nearly VND170 billion.

PTI lost more than VND167 billion in the third quarter of this year, while it still profited more than VND105 billion in the same period last year.

Accumulated in the first nine months of this year, PTI's insurance business net revenue still increased by 8 per cent year-on-year to more than VND3.8 trillion.

Insurance business expenses increased by 25 per cent to VND4.1 trillion, administrative expenses increased by 22 per cent and other expenses also rose by 68 per cent.

Vietnam's car sales continue growth trajectory in October

Data from the Vietnam Automobile Manufacturers’ Association (VAMA) reveals that sales of automobiles in Vietnam reached 36,560 units in October, an increase of 9.3 per cent over September and 22.7 per cent against October 2021.

The number of passenger car sales increased by 10 per cent from the previous month to 28,230 units. Deliveries of commercial vehicles grew by 6 per cent to 8,003 units, while deliveries of special-purpose vehicles rose by 4 per cent to 327 units.

Meanwhile, there were 20,051 completely knocked-down vehicles and 16,509 completely built vehicles sold in October, a rise of 17 per cent and 1 per cent respectively compared to last month.

In total, 334,963 vehicles have been sold by VAMA members in the first 10 months of 2022, up 52 per cent from the same period last year.

Other car manufacturers, such as Hyundai and VinFast, recorded combined sales of 10,000 cars per month. If those figures are added, Vietnam's car sales could surpass the 400,000-unit mark for the first ten months.

Vietnam's car market is still growing strongly amidst the difficult macroeconomic situation and credit tightening, with sales continuing to grow after a sharp plunge in June. The domestic auto market is expected to remain robust in the final two months of the year as it enters the peak season in preparation for the Lunar New Year.

Bamboo Airways opens representative office at Sydney Airport

By launching a new office, Bamboo Airways has expanded its presence in Australia and international markets.

The launching ceremony of Bamboo Airways’ representative office took place at Sydney Airport on November 9.

With a favourable location, Bamboo Airways’ representative office at Sydney Airport will serve as a contact office, overseeing operation and attracting a wide range of potential customers in Australia.

It is also of great significance for Bamboo Airways’ international cooperation and service network expansion on the global scale.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes