Vietnam Electricity Group (EVN) could rack up an estimated loss of around VND31,360 billion this year due to volatile global fuel prices and rising costs of generating and buying electricity.
If EVN kept operating under the plan approved by the Ministry of Industry and Trade at the beginning of this year, it would have faced a loss of up to VND64,805 billion this year.
Given this negative situation, EVN has carried out various cost-cutting measures, including a 20-30% reduction in repair and maintenance expenses, temporarily paying salaries equal to 80% of the average level in 2020, and strengthening the management of electricity price reductions.
The State utility has strived to maximize hydropower generation with low costs, assess cheaper coal sources, and negotiate with the investors of BOT power plants on electricity generation output to optimize the overall costs.
With the application of those measures, EVN has saved over VND33.4 trillion.
However, the high costs of electricity input caused the company to suffer a loss of over VND15.7 trillion in the first 10 months and even an estimated VND31.3 trillion in the whole year, a representative of EVN said.
According to the EVN, the company will face lots of challenges in the coming years, comprising difficulties in ensuring a stable cash flow, risks of unsafe operations due to cost-cutting measures in maintenance, and obstacles in capital mobilization.
Meanwhile, the prices of essential fuels like coal, oil, and gas have yet to show any signs of decreasing.
HCM City eyes stronger cooperation with Leipzip of Germany
Vice Chairman of the People's Committee of Ho Chi Minh City Duong Anh Duc on November 29 hosted a reception for a visiting delegation of German businessmen and investors led by Torsten Bonew, First Deputy Mayor of Leipzip city.
The HCM City official applauded the establishment of a representative office of Leipzig City in the southern economic hub, expressing the hope that the office will contribute to further promoting trade and investment cooperation between the two sides.
The municipal authorities will create favourable conditions for German businesses to invest and do business in the locality, he stated, adding that Leipzig has strengths in industry, information technology and education, and these are also the areas which HCM City wants to develop.
Duc thanked Leipzig’s authority for supporting HCM City in training, and sharing professional experience with local hospitals. He said HCM City is focusing on developing high-quality human resources, and has also been implementing projects related to digital transformation and development of smart cities, so the city wishes to receive more support from Germany in those fields.
For his part, Bonew affirmed the establishment of Leipzig’s representative office in HCM City as well as the visit of the German business delegation reflects the increasingly effective partnership between the two cities.
Leipzig's businesses wish to further promote investment and cooperation with HCM City in health, education, and culture, thus contributing to deepening the Vietnam - Germany strategic partnership, he said.
Earlier, Bonew and the German business delegation visited and worked with representatives of the Military Hospital 175, during which the two sides inked a cooperation agreement.
Accordingly, Military Hospital 175 and University Hospital Leipzig will strengthen their existing cooperation; and coordinate in training medical staff through hospital management courses, internship programmes, and professional exchanges.
Clam farms in Ninh Binh win ASC certificate
Clam farms in Kim Son district, the northern province of Ninh Binh, received the Aquaculture Stewardship Council (ASC) certificate at a ceremony on November 29.
Tran Van Bach, Deputy Director of the provincial Department of Agriculture and Rural Development, said Ninh Binh has a coastline of more than 18.5km, all within the administrative boundary of Kim Son district. The district is home to over 1,200 hectares of clam farms, with an annual output of nearly 30,000 tonnes.
Kim Son is the second clam raising area in Vietnam and the world as well to be presented with the certificate, he noted.
Founded in 2010 by WWF and IDH (Dutch Sustainable Trade Initiative), the ASC is an independent, international non-profit organisation that manages the world’s leading certification and labelling programme for responsible aquaculture.
Its farm standards set strict requirements for responsible aquaculture that encourage seafood producers to minimise the environmental and social impacts of aquaculture.
The certification will be a great opportunity for local farmers to stabilise production, said Director of Kim Son Clam Cooperative Pham Van Quang, promising that the cooperative will seriously observe regulations to ensure the quality of clams for export.
Delivery remains permanent part of life: Grab report
Delivery remains a permanent aspect of post-pandemic life in Southeast Asia including Vietnam, Grab’s Southeast AsiaFood and Grocery Trends 2022 report says.
Seven out of 10 consumers in Southeast Asia said delivery is here to stay, and eight out of 10 merchants said delivery is a must-have for their business.
The report combined survey results from over 60,000 food and grocery delivery users in the region, including more than 7,000 Vietnamese, and data from Grab’s platform.
The results also showed consumers increasingly depend on delivery apps as their “search engine” to discover and try merchants they have never visited in person.
Ma Tuan Trong, head of country, commercial, Grab Vietnam, said: “Deliveries continue to be a prominent part of Vietnamese consumers’ lives, and we are seeing consumers shifting more and more of their food journey online. This change in behaviour would benefit various players in the industry.
Consumers regard food and grocery delivery services as a new way of life rather than the necessity it was during COVID-19 pandemic and indulgence before that.
They are not only ordering more but also spending more per order.
In May 2022, the monthly food and grocery delivery expenditure was 1.3 times the November 2021 figure.
In Vietnam, the largest single GrabFood order was almost exactly 2 million VND (90 USD).
In Vietnam, the biggest delivery users are young families. Three-quarters of food delivery users in the country are married with kids and they order at least seven times a month.
In the case of grocery deliveries, a similar proportion of users are married with kids and they use the service 14 times a month.
According to Grab, Southeast Asian delivery users are shifting more of their food journeys online.
Nine in 10 merchants in Vietnam said delivery platforms are essential for their business, slightly higher than the regional average (8 in 10).
Across the region, merchants on average saw a 15% increase in sales after joining delivery platforms.
Along with the report, Grab also unveiled some new features to capture evolving delivery trends.
They include a revamped rating and reviews experience, a new self pick-up toggle and a saver delivery option to offer more convenience and help consumers save more.
Hong Kong expert pins high hope on Vietnam's consumer market potential
Vietnam's consumer market has great potential to grow, and the country has shown good resilience after the COVID-19 pandemic, according to Corey To, an economist from the Hong Kong Trade Development Council (China).
In an interview granted to Vietnam News Agency correspondents in Hong Kong, Corey To cited the forecast of the International Monetary Fund (IMF), stating that Vietnam’s GDP growth is likely to expand by 7-7.5% in 2022, leading the group of five emerging economies in ASEAN, including Indonesia, Malaysia, the Philippines and Thailand.
Localities in Vietnam and Hong Kong have witnessed close economic and trade cooperation in recent years, he said, noting that for many years, Vietnam has always been among the top 10 trading partners of Hong Kong.
In 2021 and the first nine months of 2022, Vietnam was Hong Kong's 8th largest trade partner and the 2nd among ASEAN members.
The ASEAN-Hong Kong Free Trade Agreement, which officially took effect in June 2019, has played a huge role in promoting trade relations between Vietnam and Hong Kong, he said.
With its young population, rapid urbanisation, and abundant labour market, Vietnam is an attractive consumer market, he added.
Vietnam also has huge potential for Hong Kong lifestyle products, he noted, adding that Hong Kong products such as garments, luxury gifts, electronics, accessories, and smart products are becoming increasingly popular in Vietnam.
For these reasons, Hong Kong firms are promoting their businesses to exploit the Vietnamese market, Corey To said.
According to the economist, Vietnam is one of the fastest growing e-commerce markets in Southeast Asia, and Vietnamese consumers are increasingly wanting to own products with better quality, good prices and delivery conditions.
Hong Kong businesses should pay more attention to further exploiting Vietnam’s e-commerce market as the Southeast Asian nation has a lot of potential for strong development of electronic payments, the economist said
According to a report of PricewaterhouseCoopers (PwC Vietnam) in 2021, Vietnamese consumers are increasingly using e-wallets for payment.
Corey To said Hong Kong businesses should pay more attention to these opportunities.
Eleven-month CPI increases 3.02% year on year
The consumer price index (CPI) posted year-on-year growth of 3.02% in the first eleven months of this year while core inflation rose 2.38%, the General Statistics Office (GSO) revealed on November 29.
In November alone, the index went up 0.39% month-on-month and 4.37% year-on-year mainly due to an increase in house rental fees and the adjustment of petrol prices in the line with global market trends.
Among the 11 groups of consumer goods and services, eight experienced price hikes, while three others saw price drops.
The GSO attributed the eleven-month CPI hike to higher petrol prices which were adjusted 31 times in the reviewed period, resulting in the fact that the retail price of A95 was up 490 VND per litre compared with the end of last year.
On average, domestic petrol prices increased by 31.76% between January and November, compared to the same period last year while gas prices fluctuated in line with changes in the global markets, up 12.76% from a year earlier, it said.
As the COVID-19 pandemic was brought under control, demand for restaurant services has bounced back, leading to a 4.78% rise in eating-out prices in the eleven months. Prices of housing and construction materials also became more expensive, up 2.75% year on year.
An increase of 1.2% in rice prices in the eleven months has resulted in 0.03 percentage point rise in the CPI. Foodstuff prices also grew slightly by 1.32% from the same period last year.
A contributor to the CPI hike was the prices of educational services which went up 0.47% during the period as some provinces and centrally-run cities increased school fees for the 2022-2023 academic year.
The 11-month core inflation went up 2.38% from a year earlier, lower than the CPI growth (3.02%), showing that changes in consumer prices were mainly driven by fluctuations in food, foodstuff, and petrol prices, the GSO noted.
The November core inflation increased 0.43% from last month and 4.81% from the same period last year, the statistics showed.
To deal with the rising inflation pressure, the Government has instructed ministries, agencies and localities to roll out solutions concertedly, helping to ensure stable production and business.
Vietnam enjoys 10.6 billion USD trade surplus in 11 months
Vietnam recorded a trade surplus of 10.6 billion USD in the January-November period, the General Statistics Office announced on November 29.
In November, the import-export turnover is estimated at 57.58 billion USD, down 1.2% month-on-month and 7.8% year-on-year, bringing the total value in the first 11 months to 673.8 billion USD, up 11.8% year-on-year.
In the period under review, the export revenue is estimated at 342.2 billion USD, up 13.4% y-o-y, and import at 331.6 billion USD, up 10.1%.
Thirty-five commodities report an export turnover of more 1 billion USD each, with eight surpassing the 10-billion-USD mark, accounting for 93.7% and 70.1% of the total, respectively.
Forty-five products see the import value of over 1 billion USD, and six over 10 billion USD, making up 93.2% and 52.3% of the total, respectively.
The US is Vietnam’s biggest importer in the period, with the turnover estimated at 101.5 billion USD, while China is the country’s largest exporter, with 109.9 billion USD.
In the period, Vietnam also records a trade surplus of 29.4 billion USD with the European Union, and a trade deficit of 56.9 billion USD with China.
To promote export, Deputy Minister of Industry and Trade Do Thang Hai affirmed that in the last month, his ministry will a focus on supporting businesses in finding alternative suppliers of raw materials with suitable prices to ensure sufficient raw materials and fuel for production and consumption, and to make good use of signed free trade agreements to speed up production and export.
The facilitation of administrative procedures for enterprises will be further promoted through the application of digitalisation, typically in tax refund, import and export customs, and issuance of the Certificate of Origin.
Hanoi promotes hi-tech agricultural production
The capital city of Hanoi has set a target that hi-tech farm produce will account for 70% of its total agricultural products by 2025.
To that end, Hanoi is implementing concerted solutions to attract resources to develop sustainable high-tech agriculture and export agricultural products to international markets.
Currently, the city has a number of high-quality agricultural products which have been shipped abroad such as Dai Thanh late-ripening longan in Quoc Oai district which has been exported to Australia and the US; and Van Duc safe vegetables in Gia Lam district exported to Taiwan (China) and the Republic of Korea (RoK). However, the raw material areas for export are still scattered and in small scale so the export output remains low.
According to Nguyen Ngoc Son, Deputy Director of the Hanoi Department of Agriculture and Rural Development (DARD), to ensure the standards of exported agricultural products, the city has granted eight codes for banana growing areas and eight for longan as well as four for packing facilities.
Hanoi has evaluated and classified 1,649 products in line with the criteria of the One Commune One Product (OCOP) Programme. Of the figure, 20 products are rated five stars, 1,098 recognised as four stars and 534 rated three stars. This is one of the great potential for businesses to sign contracts to export Hanoi's key agricultural products to other countries.
Trinh Thi Nguyet, Director of Dong Phu Organic Agriculture Cooperative in Chuong My district, said it has 24ha of rice that has been certified as organic in line with US standards while another 42ha is certified as organic in accordance with Vietnamese standards.
The cooperative's organic rice has been exported to Germany and other countries, she said.
To meet the demand and requirement of export markets, the cooperative has expanded the area of organic rice cultivation to over 50ha from 5ha in 2012, Nguyet said, adding that this model brings economic value up to three times higher than traditional farming methods.
Nguyen Van Minh, Director of Van Duc Agricultural Service Business Cooperative in Gia Lam district, said it is developing a concentrated production area covering more than 250 hectares and creating favourable conditions for farmers to apply scientific and technological advances into production. Products of the cooperative meet the requirements for export to Taiwan (China) and the RoK, with an output of 300-500 tonnes per year.
High-tech agricultural production is the right direction which is not only suitable to the situation and world economic integration but also helps farmers secure stable output, sustainable agricultural development and environmental protection, he said.
Along with improving the quality of agricultural products, cooperatives also focus on building and developing brands for their products.
According to the Department of Agriculture and Rural Development, the city has so far built brands for 40 farm produce, including Dai Thanh late ripening longan (Quoc Oai district); Boi Khe fragrant rice (Thanh Oai district); Van Nam banana (Phuc Tho district), Van Dinh duct (Ung Hoa district) and Ba Vi chicken (Ba Vi district).
Products with brands and clear origin are 15-20% more expensive than those without brand protection, the department said.
Vietnam serves 2.95 million international tourists in 11 months
Nearly 597,000 foreigners have visited Vietnam in November, up 23.2% month-on-month, bringing the total number of international tourists to the country in the first 11 months of this year to 2.95 million, according to the General Statistics Office (GSO).
The total figure is 21.1 times higher than that of the same period last year, but down 81.9% compared to the number of 2019 before the COVID-19 pandemic broke out.
In the period, the number of international tourists travelling to Vietnam by air accounts for 88.9%, 11.1% by road, and 0.03% by sea.
The country was estimated to earn 536.3 trillion VND (21.6 billion USD) from accommodation and catering services, up 56.5% year-on-year, while revenue in the travel and tourism industry was estimated at 22.9 trillion VND, a 4.1-fold increase compared to that of the same period last year.
Recently, the Vietnam National Administration of Tourism launched an email system, the first of its kind, to promote Vietnamese tourism at https://mail.vietnam.travel.
Japanese-funded 35-million-USD R&D centre opens in Da Nang
The 35-million-USD Fujikin Danang Research, Development and Manufature Centre, funded by Fujikin Incorporated from Japan, has freshly been inaugurated in the central coastal city of Da Nang.
Located at the Da Nang Hi-tech Park, the facility, whose construction began in 2021, focuses on projects involving drones, robots, water purification technology, and medical equipment and related software.
To provide manpower for the R&D project, Fujikin Incorporated has already inked a human resources training deal with the Da Nang University for Science and Technology.
According to the municipal Hi-tech Park and Industrial Zones Authority, a series of investors, including aerospace components manufacturer Universal Alloy Corporation (UAC) of the US, Tokyo Keiki Precision Technology Inc and Niwa Foundry from Japan, and Dentium company from the Republic of Korea, have already opened factories at the 1,100ha ‘green’ hi-tech park.
Bac Lieu pledges incentives for investors
Chairman of the People’s Committee of Bac Lieu province Pham Van Thieu has committed to creating the most transparent and fair investment environment for investors with the best incentives and the highest sense of responsibility.
Addressing the 2022 investment promotion conference in the Mekong Delta province on November 28, Thieu said with shrimp farming land accounting for nearly half of the total area, Bac Lieu has set aquaculture as a development spearhead and the high-tech agricultural park for shrimp development as a nucleus, thus becoming a hub for shrimp farming and processing.
The province will also give priority to forming linkages in rice production and trade and improving farm produce quality in an effort to promote agriculture and rural development and better farmers’ lives.
With favourable natural advantages like flat land, few natural disasters, sunny and windy weather almost all year round, especially in coastal regions, Bac Lieu is well-positioned to develop wind and solar power, he said.
The locality has so far drawn liquefied natural gas (LNG) projects with a total capacity of 3,200MW and eight wind power projects with a capacity of nearly 470MW, ranking third nationwide. By 2030, it targets becoming one of the country’s clean energy hubs, focusing on wind, solar and gas power.
Blessed with cultural and relic sites peculiar to Kinh, Khmer and Hoa ethnic groups, Bac Lieu is also on its way to becoming a tourism hub in the Mekong Delta.
To date, the province has attracted 184 projects, including 167 domestic ones worth over 53 trillion VND (2.3 billion USD), and 17 foreign-invested valued at over 4.5 billion USD.
It has set a goal of becoming an upper middle income province in the Mekong Delta by 2025 and in the country by 2030.
At the event, Bac Lieu invited investment in 195 projects in industry, agriculture, trade-housing, culture-sport-tourism, infrastructure, healthcare, education and environment. It also granted investment certificates to 13 projects with total capital of nearly 17 trillion VND and signed memoranda of understanding on investment cooperation.
Speaking at the event, Deputy Prime Minister Vu Duc Dam agreed with the province’s policy of focusing on five pillars for socio-economic development.
He asked for difficulties faced by investors to be removed to create a new driving force for the development of Bac Lieu, Ca Mau peninsula and the Mekong Delta as a whole.
Improving labour productivity crucial to sustainable economic growth: experts
Increasing labour productivity is an important factor to promote economic growth in the long run, and is a prerequisite for Vietnam to narrow its development gap with other regional countries and fulfill the goal of becoming a developed country with high income by 2045, said Deputy Minister of Planning and Investment Tran Quoc Phuong.
After 30 years of renewal, Vietnam has recorded important achievements in socio-economic development, with less dependence on natural resources, crude oil export and low-cost workforce, and stepped up the application of scientific and technological advances and innovation, Phuong said at a conference in Hanoi on November 29 to seek ways to promote labour productivity for sustainable growth in Vietnam.
He said that successes in the past have prompted the country to look to the goals of national industrialisation and modernisation, and improving the people’s living conditions.
Vietnam has also defined key factors to realise the goals, with special attention paid to maintaining a high growth rate basing on improving labour productivity and nurturing a renovated economy in order to increase the competitiveness of the economy in association with ensuring independence and self-reliance, stressed the official.
Meanwhile, Dang Duc Anh, Vice Director of the Central Institute of Economic Management (CIEM), said that Vietnam’s labour productivity rose 2.5 times from 70.3 million VND per labourer in 2011 to 171.8 million VND in 2021. The labour productivity growth rate reached 6% in the 2011-2020 period.
However, Vietnam has still been left behind by many regional countries in the field, and the gap is being widened, he noted, adding that the labour productivity increase has yet to be equal among industries and regions.
Although a fundamental policy framework for the improvement of labour productivity was issued in the 2011-2021 period, the policies and institutions in the field have yet to be completed and synchronous, effecting the efficiency of coordination among parties in implementing relevant solutions, Anh said.
Dr. Vo Tri Thanh, Director of the Institute for Branding and Competition Strategy, said key barriers for businesses to boost productivity include uncertainty in technology investments, poor innovation capacity reflected in poor management quality, a lack of necessary skills of the workforce, and a shortage of capital.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes