Quang Ninh to complete Van Don-Mong Cai expy in Q2

The Van Don-Mong Cai expressway in Quang Ninh Province will be completed and opened to traffic in the second quarter of 2022, according to the investors of the project. The northern province will have 200 kilometers of expressway that will connect with the Hanoi-Haiphong expressway.

The province is speeding up work on the components of the 80-kilometer Van Don-Mong Cai expressway, with all 32 bridges of the project having been completed, the local media reported.

The expressway project, with a total investment of over VND11 trillion, will have four lanes and allow a maximum speed of 120 kilometers per hour.

The project was divided into two sections for construction and investment, with the first, or the 16-kilometer Van Don-Tien Yen, invested by the management board of Quang Ninh traffic construction investment projects.

The second section, or the Tien Yen-Mong Cai, which is over 63 kilometers long, is invested by Van Don Infrastructure Investment and Development Company.

Feedback given on e-commerce taxation draft

The proposed regulations that require e-commerce platforms to pay tax on behalf of individual sellers are at odds with other regulations on personal income, leading to double taxation and asymmetric effects on e-commerce actors.

This was the feedback of the Vietnam Chamber of Commerce and Industry (VCCI) on a draft amending Decree 126 on taxation and Decree 123 on invoices and bills.

The VCCI has rejected the regulations, citing Article 24 of the Law on Personal Income Tax, which stipulates that individuals who have taxable incomes must make tax declarations, pay tax into the State budget and make tax finalisation for all their income.

Article 29 of Decree 65 on personal income tax was also invoked to show that resident individuals must declare and pay income tax on business activities directly to tax offices.

Accordingly, the chamber urged lawmakers to clarify the inconsistency between the proposed regulations and existing legal documents to clear up confusion.

VCCI also believed the regulations that require e-commerce platforms to act as tax representatives of sellers are ambiguous since the regulations do not define the basis from which representative rights are established and the scope of responsibility.

Price ceiling hike for air tickets will not hit inflation

A modest hike in the price ceiling for air tickets would not have a significant impact on the consumer price index in 2022 and hurt customers, said the director of the Civil Aviation Authority of Vietnam (CAAV) Đinh Việt Thắng.

Earlier, the CAAV proposed raising the price ceiling for airfares, citing a surge in petrol prices as a reason. It noted geopolitical tensions, especially the Russia-Ukraine conflict, have pushed the jet fuel price of Jet A1 to a new height since the beginning of 2022.

Thắng said during a conference late last week that the jet fuel price of Jet A1 has risen to US$130 per barrel, nearly double that of 2021, so the CAAV's proposal was made to partially remove difficulties for Vietnamese airlines that had been suffering huge losses.

The proposed price, which would see an average increase of 3.7 per cent, would equal the ceiling price applied in 2015, Thắng said, adding that the CAAV had also calculated the ceiling price to protect the interests of passengers while ensuring the State's policies to combat inflation and increase prices.

Talking about the possibility that airlines would increase ticket prices during the upcoming peak season April 30 to May 1 after a hike in the ceiling price, Thắng said during the peak season, the average ticket price could not reach the ceiling, and would be only equivalent to 60 per cent of this figure.

Meanwhile, airlines had many ranges of fares, no airline only sold tickets at a ceiling price. Therefore, in order to access affordable air tickets, passengers should purchase early instead of booking close to the departure date, resulting in higher ticket prices, he added. 

Punctuality of Vietnamese airlines reaches 95.5% in Q1

The overall punctuality of the local aviation industry was 95.5 per cent in the first quarter of this year, the latest statistics from the CAAV showed.

In the period, Việt Nam's six airlines operated 58,302 flights, a reduction of nearly 25 per cent compared to last year’s figure.

Bamboo Airways took the lead with 96.6 per cent of its flights on time; Vietnam Airlines and Pacific Airlines ranked second and third with on-time performance (OTP) of 96 per cent and 95.7 per cent, respectively; and the OTP rate of Vietjet was 94.4 per cent.

The overall rate of flight delays in the sector was 4.5 per cent in the first three months of 2021, a decline of 7.3 per cent compared with the same period. Meanwhile, the cancellation rate of the domestic aviation industry in the period was 1.3 per cent, a year-on-year increase of 1.1 per cent. Vietnam Airlines led the industry with 2.7 per cent of the flights cancelled.

The main reasons leading to flight delays of airlines include late return flights, poor management as well as equipment and services at the airport.

Electronic, computer and component exports edge up over 10% in Q1

Vietnamese exports of electronics, computers and components during the opening quarter of the year stood at an estimated US$13.2 billion, accounting for 14.9% of total export turnover, representing a year-on-year rise of 10.1%, according to the General Statistics Office (GSO).

The major export markets of the item group remains the EU, the United States, and China, of which exports to the US surged by roughly 17.2% to reach US$3 billion.

The initial quarter of the year witnessed the industrial production index of the electronics manufacturing industry also increase by 9.4%.

US remains Vietnam's largest export market in Q1

The United States continued to be the nation’s largest export market during the first quarter of the year, accounting for 29.1% of the country's total turnover.

According to the latest statistics provided by the General Department of Customs, local exports to the US reached US$9.76 billion in March alone, thereby bringing the total export turnover recorded during the first quarter of the year to US$25.96 billion, marking an annual increase of 16.6%.

By the end of the first quarter, there were six groups of goods exported to the US which had a turnover of US$1 billion or more, including machinery and equipment, garments and textiles, computers, electronic products and components, phones and components, footwear, along with timber and wood products.

Most notably, apparel exports to the US hit US$4.36 billion, an increase of 24.2% over the same period last year and making up 50.3% of the country's total export turnover for this commodity group.

Typical Da Nang products on display at Routes Asia 2022

A number of high-tech and automated products, as well as typical specialties of the central city of Da Nang, are set to be showcased across 40 booths at the Asia Route Development Forum 2022 (Routes Asia 2022) free of charge, according to the municipal Department of Industry and Trade.

Nguyen Huu Hanh, deputy director of the Da Nang Department of Industry and Trade, revealed that organisers will select typical products from the central city and provide free support for all costs of displaying these items. 

Hanh emphasized that firms are required to ensure the overall quality and clear origin of each of the products, as well as relevant food safety and hygiene criteria when introducing their items to both domestic and foreign visitors at the event.

The function is expected to provide an ideal platform in which to strengthen trade exchanges among businesses, cooperatives producing “One Commune, One Product” (OCOP) items, handicrafts made by craft villages, and products for the supporting industry.

Budget revenue up 7.7% in first quarter of 2022

Vietnam’s government revenue in the first three months of 2022 was estimated at 460.6 trillion VND (20.1 billion USD), equivalent to 32.6% of the full-year target and up 7.7% over the same period last year.

According to the Ministry of Finance, domestic revenue rose 4% while revenue from crude oil soared 67.6%. Revenue from export-import activities climbed 23.3%.

Total government spending in the first quarter reached 351.3 trillion VND (15.3 billion USD), equivalent to 19.7% of the full-year estimate, in which spending on investment for development reached 11.88% of the target.

Recurrent spending reached 23.4% of the target while spending on debt servicing hit 28.8%.

Over VND50 trillion of public investment yet to be allocated

As of the end of last quarter, more than VND50 trillion of public investment has yet to be allocated and 29 units have yet to disburse their allocated capital for public investment, according to the Ministry of Finance.

In a report sent to the prime minister, the ministry stated that more than VND61.5 trillion was disbursed in the first quarter of the year, representing 11% of the full-year target.

According to the Ministry of Finance, the Government had allocated the public investment capital for 2022 to ministries, agencies and localities. It later issued a decision adjusting the mid-term public investment sourced from the State budget in the 2021-2025 period.

Thu Duc should have provincial jurisdiction: HCMC chairman

HCMC Chairman Phan Van Mai asked Thu Duc City to propose applying 70%-80% of the jurisdiction of a province as its special policies.

Thu Duc must be determined as a new driving force of HCMC and the entire country, so policies must be outstanding enough to meet its development needs, Mai said at a conference of the executive board of the Thu Duc City Party Committee on April 16, the local media reported.

Mai said the National Assembly had agreed that special policies for Thu Duc would be part of a resolution replacing Resolution 54 on a special mechanism for HCMC. However, the issuance of the new resolution will take time.

Therefore, Thu Duc should review and take the initiative in making policy recommendations.

Commodities price surge causing tough challenges among HCMC laborers

Having just resumed normal life from the harsh outbreak of the Covid-19 pandemic, workers in Ho Chi Minh City now have to face tougher challenges caused by synchronous price rises of essential commodities.

Even though businesses and labor unions are launching various programs like 3-month renting aid in accordance with Decision No.08/2022/QD-TTg, issued on March 28, 2022 by the Prime Minister to help workers in HCMC overcome financial difficulties, many still struggle day after day to afford essential goods.

Statistics from HCMC Labor Federation in February 2022 reveal that 42 percent of the surveyed subjects admitted they have poor living standards due to their low salary. They can save almost nothing, and if anything goes wrong, they will have no spare money to spend. 20 percent of the surveyed now has a monthly salary of VND5 million ($218), and they need to work overtime.

One direct negative impact is that when there is any problem, these people have to borrow money from illegal organizations. Another is that laborers choose to withdraw their social insurance in one go to cover living expenses. The number of people following that choice in HCMC increased by 19 percent in the first three months of this year compared to this time last year, mostly living in Thu Duc City and the districts of 12, Binh Tan, Hoc Mon, Binh Chanh.

Real estate investors in HCMC to pour investment in other provinces

Ho Chi Minh City used to be considered to be in the lead of the country's real estate market. However, in the past few years, many enterprises based in the southern metropolis have had to go to other localities such as Dong Nai, Ba Ria - Vung Tau, Binh Duong, Khanh Hoa, Binh Dinh to invest in new projects.

Explaining for this phenomenon, investors said that Ho Chi Minh City no longer has a large land fund, compensation and clearance work are increasingly difficult, so the trend of shifting investment to localities has advantages in land fund, investment environment and little competition is understandable. In addition, many housing projects in the city are inspected, making the project implementation longer, leading to a sense of apprehension amongst investors.

According to the Department of Construction of Ho Chi Minh City’s data, from 2015 when the Housing Law took effect, almost all real estate projects in the city have been at a standstill. Thanks to the project's previous legal approval, in 2017 the city only had 92 projects announced, which is the peak development year of the real estate market in the period 2011-2021. But after 92 projects have been sold and there has been no new supply, the number of housing projects which are eligible for sale on the market dropped sharply.

Rach Mieu 2 Bridge project strives to be started works in Q2

The Ministry of Transport yesterday said that the agency had required the My Thuan Project Management Board to push up the key bidding packages of the Rach Mieu 2 Bridge project.

According to the Ministry of Transport, apart from two out of six construction bidding packages being started works on March 29, the Rach Mieu 2 Bridge project still has two construction bidding packages under the process of technical proposal evaluation, two packages of the path into the bridge and cable-stayed main bridge under technical design and quotation establishment.

Under the direction of the Ministry of Transport, the design consulting agency is assigned to promptly implement the works to ensure the timely technical design and cable-stayed main bridge quotation approval in upcoming August to select the construction unit to start works at the beginning of the fourth quarter.

HCMC to start massive social housing projects at end of April

The Ho Chi Minh City Department of Construction has just submitted to the Municipal People's Committee a plan of organizing the ground-breaking ceremonies of social housing projects and notifying the finished projects to celebrate the 47th anniversary of the liberation of the South and national reunification (April 30) and May Day. 

Particularly, it is expected that a ground-breaking ceremony of the housing project for workers will take place at Linh Trung II Export Processing Zone in Thu Duc City on April 25. The project will be built on an area of more than 5,000 square meters, with a scale of 360 residential units.

A day later, a ceremony to start construction of a nearly 3,700- square meter social housing project under the Nguyen Son residential area in Binh Chanh District’s Binh Hung Commune with a scale of 242 apartments is expected to be held. 

Next, groundbreaking ceremonies to build a social housing project in Long Truong Ward of Thu Duc City with a scale of 726 apartments on an area of more than 14,300 square meters and a housing project for resettled residents at Block 4 and Block 6 of Thanh Da Apartments in Binh Thanh District with a scale of 1,750 residential units will be organized massively on April 27.

According to Ho Chi Minh City's housing projects development plan for the 2021-2025 period, the city is expected to build 35,000 apartments including worker accommodations and dormitories for students. 

More than 360km of North-South expressway to be completed this year
 
The Government is determined to complete 361 out of the total 652.86 kilometers of the North-South expressway in 2022 with the highest quality, for which all contractors and localities have committed to the target.

Deputy Prime Minister Le Van Thanh stressed the goal during a recent meeting with contractors of section Mai Son- Highway No.45 under the Eastern North-South expressway project.

The section with a length of 63.37 kilometers is part of four sub-components under the expressway project, which also includes sections Cam Lo – La Son (98.3 kilometers), Vinh Hao – Phan Thiet (100.8 kilometers), and Phan Thiet – Dau Giay (99 kilometers).

A report from the Ministry of Transport revealed contractors of the four sub-projects have so far completed 52.35% of the work volume, 2.5% behind the schedule.

As of the present, over 1,000 kilometers of the expressway have been built throughout the country.

Can Tho eyes more investments from RoK

Representatives of the People’s Committee of Can Tho city on April 19 held a working session with a delegation from the Korea Institute for Advancement of Technology (KIAT) to discuss ways to attract more investment projects from the Republic of Korea (RoK).

Vice Chairman of the municipal People’s Committee Nguyen Ngoc He said Can Tho hopes KIAT will serve as a bridge encouraging RoK companies to invest in Can Tho and the Mekong Delta.
 
Can Tho will create the most favourable conditions, including simplifying administrative procedures for investors, especially RoK firms, he affirmed.

According to Lim Byung-hyuk, chief representative of KIAT in Vietnam, a “Meet Korea” programme with trade connection and business-to-business events is scheduled in Can Tho this year, hoping to attract RoK companies operating in Vietnam and those that want to invest and seek investment opportunities in Vietnam.

If this event is organised in Can Tho, it will offer a good chance for the Mekong Delta city to lure more Korean investments.

Lim said that KIAT will continue to promote RoK suppliers of spare parts, equipment, and technological machinery to enter the Vietnamese market.

Thailand's CP Group interested in expanding investment in Vietnam

Senior Chairman of Thai CP Group Dhanin Chearavanont has pledged to continue to prioritise investment in Vietnam, which he described as the most potential and attractive country in Southeast Asia.

At a meeting with Vietnamese Ambassador to Thailand Phan Chi Thanh on April 18, Dhanin Chearavanon briefed the Vietnamese diplomat on the production and business operations of Charoen Pokphand (CP) Group, the largest producer of animal feed and livestock in Thailand and the fourth biggest in the world.

CP opened in Vietnam in 1993 in the agricultural industry through CP Vietnam Corporation, which is now the largest agricultural firm in Vietnam with more than 30,000 employees.

In 2020, CP launched its chicken processing factory in Binh Duong, which has the capacity to process 50 million chickens each year in the first phase and 100 million in the second phase.

Vietnamese, French firms launch joint venture providing barge services

France’s CMA CGM Group and Vietnam’s International Transportation and Trading Joint Stock Company (ITC) launched a joint venture company to provide barge services in Vietnam on April 19. 

The General International Logistics (GIL) will provide three shipments per week between SP-ITC port and Cai Mep port in the southern province of Ba Ria-Vung Tau.

GIL's barge services will help connect Vietnam's exports with key markets in North America and Europe through SP-ITC and Cai Mep ports.

Every week, there are four long-distance shipping routes of CMA CGM arriving at Cai Mep port - the main gateway in the southern key economic region.

Domestic businesses to receive support to increase exports to Germany

The Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency will organise an event on April 21 to help domestic firms increase exports to the German market.

Firms will be updated with information on the German market, while questions regarding farm produce and foodstuff with the market will be answered, including demands of the German market regarding quality, payment, transportation and insurance guarantees.

Dr. Rene Schäfer, an international law consultant from Dornbach GmbH, will brief participants on the Vietnam Desk – the agency that provides information to support Vietnamese and German enterprises to develop cooperation opportunities.

Germany is currently the third largest exporter and importer in the world after the US and China. Statistics from ITC Trademap showed that in 2020, the European country’s total import-export revenue reached 2.55 trillion USD, accounting for about 67 percent of its GDP, including 1.37 trillion USD in exports and 1.17 trillion USD in imports.

Vietnam has maintained encouraging growth in exports to the market. In the first quarter of 2022, Vietnam enjoyed a 1.2 billion USD trade surplus with Germany, which was a good sign in line with the rising trend of the country’s trade with the EU after more than one year of implementing the EU-Vietnam Free Trade Agreement (EVFTA).

Seminar looks to promote HCM City investment in Cuban special economic zone

A seminar to promote investment in Cuba’s Mariel Special Development Zone (ZED Mariel) to bolster economic, investment, trade and tourism and healthcare cooperation between Ho Chi Minh City and Cuban localities was held in the southern hub on April 19.

The event, jointly organised by the HCM City Investment and Trade Promotion Centre (ITPC) and Cuba’s Universales Almacenes S.A in the city, also aims to open up chances for businesses to step up trade activities and seize opportunities brought by the Vietnam-Cuba Trade Agreement.

Vietnam is currently the second largest Asian trade partner of Cuba and two-way trade hit 102 million USD in 2020. The Vietnam-Cuba Trade Agreement taking effect in early of that year has helped promote trade and presence of Vietnamese firms in Cuba.

The countries have collaborated in various fields, including agriculture, oil and gas, telecommunications, education and healthcare.

In terms of investment, Vietnam has channelled more than 44 million USD into four projects in Cuba while the Caribbean nation has poured investment worth over 7 million USD into Vietnam.

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