A view of Suoi Cam Lake in Dong Xoai City (Photo: VNA)

Chairman of the Provincial People’s Committee of Binh Phuoc Tran Tue Hien has just signed an official letter to cancel the investment policy for FLC Group Joint Stock Company on planning the new urban area along with a resort of Suoi Cam in Dong Xoai City.

Accordingly, the city leader decided to cancel the Official Letter No. 3226/UBND-TH dated October 29 of 2018 of the Provincial People’s Committee on approval of the policy for FLC Group Joint Stock Company to develop a project planning with an area of 986.5 ha and Official Letter No. 389/UBND-KT dated February 18 of 2019 on supplementing the boundary for planning a new urban area combined with a resort of Suoi Cam lake with an area of 1,775 hectares in the wards of Tien Thanh and Tan Phu in Dong Xoai city.

The People’s Committee of Binh Phuoc Province also assigned the People’s Committee of Dong Xoai City to direct the relevant units and People’s Committees of the ward level to publicize the information above for local residents.

Poor-performing projects struggle with restructure

Seven out of 12 slow-moving and inefficient projects under the Ministry of Industry and Trade’s supervision are still waiting in line for their fates to be processed.

Last November, thanks to their revitalisation, five projects were removed from the blacklist of 12 poorly-performing state-funded projects of the industry and trade sector, after more than three years of implementing the prime minister’s Decision No.1468/QD-TTg focusing on the shortcomings of some projects in the industry and trade sector.

The five projects comprise Dinh Vu Polyester Fibre Factory, DAP 1-Hai Phong Fertiliser Factory, Phu Tho Biofuel Factory, Binh Phuoc Biofuel Factory, and the Dung Quat Biofuel Factory.

These five were making losses to the extent that their total investment had to be adjusted to a level higher than the original estimate. Further, their capital structures were mainly based on loans with high interest rates. While some projects suffered heavy losses, others lost their equity, and most of them were deemed unable to pay their debts.

Tackling the seven remaining ventures will likely remain challenging. Nguyen Hung Dung, a member of the Board of Directors of Vietnam Oil and Gas Group (PetroVietnam), said, “Our group has no right to participate in restructuring the Binh Phuoc and Phu Tho projects as it does not hold the controlling stakes.”

PetroVietnam holds shares in five of the 12 projects at a loss, but only holds 29 per cent of the shares of the factory in Binh Phuoc. At the Phu Tho project, PetroVietnam holds 35 per cent.

Hung explained that the CMSC will work with businesses to re-evaluate their statuses and issues, hoping to empower them again with more autonomy and responsibility, in addition to policy support. For example, enterprises in need of additional capital will be assigned to actively use different sources to restructure projects with many problems. Should they not dispute the EPC contracts, a way could be opened for them to divest and restructure investments.

Wood industry fosters chief information officers to speed up digital transformation

The National Private Economic Development Research Board and the Handicraft and Wood Industry Association of HCM City have launched an initiative to develop a chief information officer network for the wood and wood processing industry to foster its digital transformation.

Meant to provide professional training, help improve leadership and management capacity to create quality IT solutions and create breakthroughs for enterprises, the initiative has attracted much attention.

It will seek applications from CIOs to attend a two-day training camp designed specifically for the wood industry.

The training content will have seven modules to provide the necessary information, skills and tools for CIOs to master digitisation and digital transformation at their business.

Then there will be three workshops on digital transformation, technology management and leaders' vision with industry executives taking part. The activities will be held between April and July.

HCM City economic forum to discuss digital impacts on competitiveness

The HCM City Economic Forum 2022, which opened on Friday discussed policy mechanisms, challenges and solutions in boosting digital transformation and improving business competitiveness.

The forum basically focused on how the nation’s biggest city and economic hub can support firms to achieve digital transformation to help develop a digital economy.

The annual international event, themed “Digital economy: Driving force for growth and development of HCM City” was attended by more than 900 delegates, including leaders of the Government, various ministries and sectors.

Representatives from foreign diplomatic agencies and international organisations such as the World Bank, International Monetary Fund and Asian Development Bank as well as renowned economists also attended the forum.

The three-day event will have 25 international speakers, double the number last year. Nine Vietnamese speakers will also address the forum.

Banks release capital increase plans in ongoing GMS season

Many banks have announced plans to increase capital strongly in the ongoing season of general meetings of shareholders (GMS) this year.

The capital increase plans mainly include paying dividends in shares, making private placement to foreign strategic investors or employee stock ownership plans (ESOP).

SeABank was the latest to announce plans to increase its charter capital from VND16.59 trillion to VND22.69 trillion in 2022. The bank’s capital increase, which is aimed to continually improve its financial capacity, supplement capital for business activities and achieve set growth goals, will come from issuing shares to pay dividends, ESOP and private placement.

Recently, Military Bank (MB) said it would continue to implement the plan to increase charter capital by VND892.4 billion. Accordingly, the bank will issue 70 million shares for network operator Viettel Group and 19.24 million shares under the ESOP programme. In addition, MB also plans to offer 65 million new shares in 2022-2023 at a put-through price that is not lower than the book value, according to the latest audited financial statements. MB’s additional charter capital is expected to be nearly VND9.1 trillion, which will be used to supplement the bank’s investment and business capital.

Meanwhile, the general meeting of shareholders of VIB approved the payment of dividends and bonus shares at the rate of 35 per cent besides an ESOP programme to raise the charter capital to VND21 trillion.

After completing the dividend payment in shares at a rate of 25.7 per cent to increase its charter capital to VND50.58 trillion recently, BIDV has also planned to issue 341.5 million new shares, equivalent to 8.5 per cent of charter capital through a public offering or private placement.

Fair to promote Ngoc Linh ginseng and agricultural products of Kon Tum province

A fair promoting Ngoc Linh ginseng and typical agricultural products of Tu Mo Rong district, Kon Tum province will be held on April 24, announced at a press conference hosted by the district People’s Committee on April 15.

The fair will be organised in both offline and online formats. Accordingly, the in-person fair will feature 44 booths showcasing Ngoc Linh ginseng and medicinal materials, and signature agricultural products of businesses, cooperatives and households from Tu Mo Rong district and other districts in Kon Tum province.

The three-day fair will also showcase products by businesses from Da Nang city, Quang Nam and Binh Duong provinces.

Meanwhile, the online fair will take place on the province’s e-commerce website from April 22 to May 2.

Vietnam increases investment road between Phap Van-Cau Gie Expressway and Beltway 3

The linking road between Phap Van-Cau Gie expressway and Beltway No.3 will have its investment increased from $110 million to nearly $141.3 million, with the funding coming from Hanoi’s budget.

Deputy Prime Minister Le Van Thanh on April 15 signed Decision No.471/QD-TTg approving the investment adjustment for the road. The construction was also adjusted from 2022 until 2025.

The DPM assigned the Ministry of Planning and Investment to take responsibility for the appraisal result of the project adjustments, while Hanoi takes responsibility for allocation of the funding in an efficient and timely manner in line with the prevailing rules to ensure the construction schedule and prevent waste and losses.

The linking road had its investment plan approved by the prime minister in early 2020. The road is 3.8km long, 60m wide, and has six lanes.

Can Tho speeds up work on three major projects

The Mekong Delta city of Can Tho is focusing on developing three major projects, namely an agricultural production linkage center, O Mon power generation center and the Vietnam-Singapore Industrial Park.

Secretary of the Can Tho Party Committee Le Quang Manh was speaking at a conference aimed at deploying the National Assembly’s Resolution 45 to pilot some special mechanisms and policies for the development of the city on April 15.

The agricultural production linkage center will be located near the Can Tho International Airport to facilitate the export of farm produce, Manh said.

The first phase of the center is set to cover 450 hectares of land, while the second phase will have an area of 2,000 hectares. The center will perform a number of functions, including developing renovation projects, processing Mekong Delta products, exporting and re-exporting, tapping the economic efficiency of the airport and manufacturing high-end products.

Manh said that the O Mon power center, which is a large-scale and key project, is 10 years behind schedule.

The power center will have five stations, with O Mon I already put into operation. O Mon II saw the Japanese investor get a license for investment, while the prime minister approved a plan to develop O Mon IV. As for O Mon V, Vietnam Electricity Group is applying for investment.

Vinacomin wants to resume operation of Thach Khe iron mine

The Vietnam National Coal and Mineral Industries Group (Vinacomin) proposed the Government allow it to resume the operation of the Thach Khe iron mine in Ha Tinh Province, while the provincial government is adamant to shut down the mine, the local media reported.

The Thach Khe iron mine project was developed by Thach Khe Iron JSC in 2008. Vinacomin is the major shareholder of the company.

The amount of capital that Vinacomin and other investors have so far injected into the project is VND1.8 trillion.

At the end of 2011, the project was forced to shut down even though the investor had executed and adjusted the project at the request of the authorities.

In a statement sent to the Government, Vinacomin said the Politburo in February this year had issued Resolution 10 on strategies to develop the geology, minerals and mining industry by 2030, with a vision toward 2045. Accordingly, the Politburo allowed a review of the effectiveness of investments and sustainable socioeconomic growth in order to consider investing in Thach Khe iron mining and processing projects that could be completed before 2030.

Therefore, Vinacomin sought the Government’s approval to restart the Thach Khe iron mining project.

European businesses confident in Vietnam’s investment environment

Vietnam’s economy has the chance to attract a new wave of high-quality and green FDI from European investors who are looking for a safe and competitive investment destination.

European business stakeholder confidence in Vietnam’s investment environment continued to rise at the start of 2022, according to the latest Business Climate Index (BCI) from the European Chamber of Commerce in Vietnam (EuroCham).

For the first quarter of 2022, the BCI climbed to 73, once again reaching its highest point after the fourth wave of the pandemic. This is a 12-point increase compared to the fourth quarter of 2021, in addition to nearly 58 points of growth compared to the third quarter, with business leaders now more upbeat after the relaxation of Vietnam’s pandemic-related restrictions and the continued acceleration of its economic development. 

The BCI is likely to sustain this upward trend next quarter, with a more optimistic business outlook from business leaders anticipated.

Vietnam-Australia trade turnover enjoys robust growth

Two-way trade turnover between the nation and Australia continued to increase sharply during the initial months of the year, according to the General Department of Vietnam Customs.

Statistics show that Vietnamese export turnover to Australia in the first quarter of the year increased by 32.36% to US$1.38 billion against the same period from last year.

Most notably, coffee exports have seen the most impressive growth of 84%, while aquatic exports also grew by 51%. Rice exports continued to pick up amid Australia reducing rice imports from other countries.

Aside from agricultural products, advantageous Vietnamese industrial exports to Australia also recorded impressive growth, with iron, steel of all kinds, as well as rubber and electric cables, all witnessing rises of more than 500%, 41%, and 26%, respectively.

Furthermore, Australia has emerged as a supplier of much-needed materials for Vietnam, including coal, iron ore, metal, cotton, wheat, and cattle feed, enabling the country to boost its production.

The Vietnamese Trade Office in Australia stated that it has ramped up a wide range of events aimed at strengthening connectivity between supply and demand, as well as trying to boost import-export activities with the ultimate aim of making contributions to the national economy.

This comes as the trade office has regularly provided updated information on Australian importers and current prices via its own e-commerce mobile app Viet-Aus in a bid to help local firms seek partnership more easily.

Quang Ngai province developing Minh Long tea

Proudly producing green tea with a distinctive flavour, Minh Long district in the central province of Quang Ngai is working to expand its tea cultivation area and turn it into a cash crop in the locality.

A pot of green tea is an indispensable part of the daily life of the Hre ethnic people. A tasty cup is brewed with high-quality tea leaves and fresh water.

As a traditional crop in the district, Minh Long tea has been viewed as a key commodity for exchange for many years.

The tea areas in Minh Long district have been downsized in recent times, since many local people have changed to planting cassava and acacia. Minh Long is now home to 100 hectares of tea, mostly in Thanh An and Long Hiep communes.

Local authorities have sketched out a wide range of measures to develop the tea cultivation area, and has called on businesses to invest in processing plants to improve quality while reducing costs.

Retail, service revenues enjoy good growth in Q1

Retail and consumer service revenues enjoyed good growth in the first quarter of 2022, rising 4.4 percent from the same period last year to 1,318 trillion VND (57.55 billion USD), according to the General Statistics Office (GSO). 

Retail revenue alone picked up 5.8 percent year on year, with many domestic retailers posting positive signs in their business.

Mobile World Investment Corporation (MWG) reported that in the first two months of this year, the firm earned after-tax profit of 1 trillion VND (43.6 million USD), up 8 percent year on year.

Meanwhile, revenue generated from retail activities of Phu Nhuan Jewelry JSC (PNJ) rose 53.3 percent year on year in the first two months with earnings from online sales surging 115 percent.

Experts from KB Securities Vietnam JCC (KBSV) attributed the recovery in retailers’ revenue to the reopening of the economy and the resumption of entertainment activities.

To maintain this development trend, businesses are expanding their operations and distribution network to bring their products closer to customers.

The FPT Digital Retail Joint Stock Company (FPT Retail) plans to open additional 70 new laptop shops to maintain its position as the leading laptop retailer in the country. It will also launch about 100 new FPT Shops across the country.

Meanwhile, it will expand the coverage of its Long Chau pharmacy chain to all 63 localities across Vietnam, increasing the number of the pharmacies to about 700-800 this year.

In 2022, FPT Retail targets revenue of 27 trillion VND and after-tax profit of 720 billion VN, up 20 percent and 30 percent over the previous year, respectively.

MWG has also announced its plan to shake hands with Erajaya Group to form PT Era Blue Elektronik (Era Blue) joint venture to develop the largest electronics retail chain in Indonesia.

KBSV experts held that a young population and the high GDP growth rate of Vietnam will help boost the retail sector’s growth in the future. However, they predicted that inflation will be among factors that prompt consumers to tighten their spending, which may slow down the sector’s expansion.

National power development plan VIII targets drastic CO2 emissions reduction

The latest draft National Power Development Plan for the 2021 - 2030 period, with a vision to 2045 (PDP VIII) has made drastic reduction of CO2 emissions with no new coal-fired power plants to be built in the planning period, and with the switch from coal and natural gas to biomass, ammonia, and hydrogen, according to Deputy Minister of Industry and Trade Dang Hoang An. 

In his report at a virtual conference with localities on April 16 on the PDP VIII, the Deputy Minister said that compared with previous drafts, the latest one also makes remarkable changes to the structure of energy sources and the designation of power development space, which helps reduce social investment capital and save 13 billion USD for development of power transmission lines. 

The total capacity of power generation sources is expected to reach 146,000 MW by 2030, down about 35,000 MW compared to the version submitted on March 26, 2021. The peak capacity in 2030 is estimated at about 93,000 MW. 

Being the first national sector planning to be implemented in accordance with provisions of the Law on Planning in 2017, the PDP VIII has continued to be revised, supplemented, and updated many times since the first draft was submitted to the Prime Minister in March 2021. 

In particular, the PM has instructed the Ministry of Industry and Trade to revise the draft based on Vietnam's commitment to emission reduction at the COP26 and requirements for the development of green and circular economy.

Deputy Prime Minister Le Van Thanh has held nearly 30 meetings and working sessions with the Ministry of Industry and Trade, relevant ministries, sectors, agencies; experts and scientists on the plan. 

Addressing the conference, Deputy PM Thanh said the latest draft PDP VIII has addressed shortcomings of the PDP VII, the revised PDP VII, and the draft PDP VIII submitted in March 2021.

He underlined that the draft has outlined a roadmap to cut coal-fired electricity to just 9.6 percent of total capacity by 2045, while the share of wind and solar power is raised to 50.7 percent, ensuring Vietnam's commitments on energy transformation. 

The Deputy PM requested the Ministry of Industry and Trade to urgently study opinions to finalize the draft PDP VIII for approval by the State Appraisal Council before submitting it to the Prime Minister for adoption in April 2022.

Vietnam, Azerbaijan look to boost oil and gas co-operation

Deputy Minister of Industry and Trade Dang Hoang An and Azerbaijani Ambassador to Vietnam Anar Imanov have agreed to continue strengthening co-operation in the field of oil and gas, a move which is a long-term strategic priority of both sides.

During their recent working session, the two officials discussed the common situation regarding economic and trade co-operation moving forward.

According to Deputy Minister An, both countries have maintained a close and traditional friendship for many decades. In September, the two sides will celebrate the 30th anniversary of their diplomatic ties.

The co-operation mechanism in place is therefore being greatly expanded, demonstrated by the successful organization of the two meetings of the Intergovernmental Committee on economics and trade, as well as scientific and technical co-operation in 2016 in Hanoi and 2018 in Baku.

However, bilateral economic and trade co-operation has yet to fulfil its full potential, as shown by the fact that import and export turnover between the two countries still accounts for a small proportion of the total foreign trade turnover of each side. Indeed, the structure of import and export goods still remains limited, Deputy Minister An went on to say.

The Deputy Minister also suggested that both sides continue to be more active in grasping market information, whilst encouraging firms of the two countries to participate in fairs and exhibitions as a way of enhancing trade promotion and connectivity activities.

Thailand's Asia Plus Securities recommends increasing investment in Vietnam

Asia Plus Securities (ASPS), a brokerage firm based in Thailand, has recommended increasing investment in the Vietnamese market, citing the country's high growth prospects based on its ample local workforce, low minimum wage, and steadily rising per capita income.

In an article published in the Bangkok Post on April 15, ASPS commented that the Russia-Ukraine conflict, as well as sanctions taken against Russian crude supplies, have caused energy prices to rise and have impacted certain sectors disproportionately, such as the finance and consumer industries.

In order to avert risk, ASPS has pointed to investment in the country due to its strongly-developing economy. In line with this, the nation has become increasingly attractive to foreign investors thanks to a large working-age population and relatively low minimum wage.

The firm said the country had witnessed its foreign direct investment enjoy a year-on-year rise of 7.8% in the first quarter of the year, despite the flare-up in the pandemic as leading global corporations such as Apple, Samsung, and Toyota begin expanding into the Vietnamese market.

Asia Plus forecasts that the nation will have a 5% to 7% GDP growth until 2028, duly surpassing both Thailand and Singapore.

Digital economy expected to make up 25% of HCMC’s GRDP

HCMC has set a target that the digital economy will account for a quarter of the city’s gross regional domestic product (GRDP) by 2025, and the figure will increase to 40% by 2030.The city held the HCMC Economic Forum 2022, themed “Digital economy: Driving force for the growth of HCMC in future”, on April 15, attracting more than 1,000 local and foreign attendants.

Secretary of the HCMC Party Committee Nguyen Van Nen said the digital economy had developed strongly. The Covid-19 pandemic has disrupted many socioeconomic activities, but the situation has paved the way for digital transformation.

The city will set policy priorities to develop the digital economy to serve the city’s long-term development and catch up with regional countries.

The digital economy will help improve labor productivity, create new business opportunities for enterprises, help the economy recover and contribute to economic restructuring. HCMC’s success in digital transformation and the digital economy will contribute to the country’s success and cement the city’s position as an economic, financial, trade, science and technology hub, Deputy PM added.

Spice enterprises face fierce competition

The Business Studies and Assistance Center (BSA), on April 15, cooperated with units and experts in the food industry to organize a talk show on the flow of the Vietnamese spice market.

Ms. Vu Kim Hanh, Chairwoman of the Business Association of High-Quality Vietnamese Goods, said that the strengths of Vietnam's agricultural economy include spices. Recently, there has been fierce competition between domestic spice manufacturers and multinational companies and imported products.

She cited that the spice market, especially chili sauce, has constantly changed. The product of a company takes the lead, but only a few months later, another company will surpass it. It shows cutthroat competition, as well as the growth of the spice market in Vietnam.

According to market expert Ngo Dinh Dung, CEO of ISM Company, spices are an indispensable ingredient in the modern life of consumers. People like to enjoy delicious dishes and eat more delicately. On the other hand, they prefer convenience.

Meanwhile, Ms. Nguyen Thi Van Anh, Director of Tri Viet Phat Trading, Service, and Production Co., Ltd., said that Vietnam exports many raw spices, such as cinnamon, anise, cloves, and cardamom, annually. Up to now, Tri Viet Phat Company has exported many Vietnamese spice products to Japan, the US, and Europe.

Ms. Vu Kim Hanh said that up to now, not only spices but most other Vietnamese products have also not been branded on the global market. Because of no brand, the selling prices cannot match the value.

Therefore, it takes a lot of time and requires all manufacturers to join hands to change this situation.

Ms. Hanh proposed that the State can dedicate a strong team to research spices and give priority order of investment for some spices, for example, support Vietnamese instant noodle, dry food, and instant food companies. This is a huge source of exports.

Binh Thuan province launches smart tourism portal

The south central province of Binh Thuan has recently launched its smart tourism portal aiming to create an ecosystem serving tourists, businesses, and state management agencies.The portal at https://muinevietnam.vn/ integrates all information about Binh Thuan province’s tourism potential, strength, and typical cultural and sport features. It also helps visitors make plans, and find accommodations, tourist destinations, and services via scanning QR code or downloading a related app.

The management agencies, meanwhile, can collect statistics of visitors, tourism market share, business reports, and feedback, among others.

The launching of the portal is expected to make progress in both quality and quantity for the tourím sector toward making it a spearhead industry of Binh Thuan by 2025.

The province is making efforts to have phone applications serving visitors, offer free wi-fi, and install machines offering tourism and service information at its key tourist destinations by 2025.

Suitable legal frameworks, policies needed to fulfill climate targets: experts

The Vietnamese government has set out a roadmap to achieve the country’s climate targets, including net zero emissions by 2050 as committed by Prime Minister Pham Minh Chinh at the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow, the UK.

Accordingly, Vietnam will gradually phase out coal-fired power and stop building new plants of this kind.

The Ministry of Industry and Trade (MoIT) said coal-fired thermal power accounts for more than 30 percent of the total supply and plays an important role in ensuring national energy security.

The energy sector is working to reduce emissions as well as its reliance on fossil fuels towards the target of net zero emissions in the next decades, the ministry added.

Under Power Development Plan VIII submitted to the Prime Minister, Vietnam will not build new coal-fired power plants, reduce the number of new projects to the minimum by 2045, and gradually scrap old factories equipped with outdated technologies.

Vietnam expects to generate some 146,000MW by 2030 and 343,000MW by 2045, down about 14,800 MW compared with Power Development Plan VII.

Experts, however, have suggested Vietnam sketch out a suitable roadmap to ensure national energy security.

Second Viet Nam Card Day introduces new tech

The second Việt Nam Card Day took place at Hà Nội’s Bách Khoa Stadium on Saturday with the theme Tự tin mở lối (Leading the way).

The event is jointly held by Tiền Phong (Vanguard) newspaper and the National Payment Corporation of Việt Nam (NAPAS) under the instruction of the State Bank of Việt Nam (SBV), aiming to promote non-cash payments and digital transformation in the country.

The two-day event includes main activities such as experiencing cashless payment technology at all of the booths, demonstrating the most modern and advanced bank card payment technology.

Visitors could access and experience VietQR technology at the check-in area and receive gifts and shopping activities; approach and experience digital technology such as contactless payment, QR code, NFC technology, digital banking, and eKYC technology.

The organisers will also provide information and warnings about risks in payment activities, help customers learn new criminal methods and tricks, and measures to avoid risks in payment activities.

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