In efforts to develop a green and circular economy, Vietnam is taking steps to boost green credit, the Lao dong (Labour) daily reported.

Given the importance of green credit to sustainable economic development, the Prime Minister issued the national green growth strategy for 2021 - 2030 with a vision to 2050, and the development strategy for the banking sector by 2025 with orientations towards 2030, which includes orientations for green credit and green banking.

By the end of 2022, outstanding credit for green projects approximated 500 trillion VND (21.3 billion USD), accounting for some 4.2% of total outstanding loans. It focuses on such fields as renewable and clean energy (47%) and green agriculture (over 30%).

Last February, a sustainable loan framework was issued by a Vietnamese bank for the first time. The framework of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), built with advice from many major international financial institutions, is considered a contribution to the implementation of the Vietnamese Government’s commitment to achieve the target of net zero emissions by 2050.

Rubber firms suffer poor first quarter

Rubber exporters posted poor business results in the first quarter this year amid dwindling price and output, yet the price factor in the rest of 2023 remains a puzzle in the face of unpredictable global headwinds.

Vietnam exported about 396,000 tonnes of rubber latex in the first quarter (Q1) of this year, down 2.6 per cent in volume and 22.9 per cent in value on-year, according to the Agency of Foreign Trade under the Ministry of Industry and Trade.

Rubber exports to major markets have all been reduced compared to the same period in 2022.

The leader of a natural rubber company in southern region opined that rubber exports face hardships this year because the car industry is in the doldrums due to high inflation and low demand.

The export value of several firms in the sector shed from 10-12 per cent in Q1 compared to the same period in 2022, and Q2’s figure is forecast to be similar to Q1, he said.

Unstable rubber prices and less upbeat export in the first quarter leave firms to be cautious in crafting 2023 business targets.

This year, the Vietnam Rubber Industry Group (GVR) has set forth a modest business plan with a sharp fall in the revenue and post-tax profit figures.

Accordingly, GVR has set to reach $164.8 million in revenue and $65.2 million in post-tax profit, down 85 per cent and 71 per cent on-year, respectively.

These figures came out at the company’s recent meeting discussing 2023 production and business plan on April 7.

In the meeting, a GVR leader unveiled that currently the rice of rubber latex averages $1,430 per tonne, down $260-280 per tonne compared to one year ago, resulted in a plunge in its Q1 business results.

Meanwhile, Nguyen Thai Binh, spokesperson at Tay Ninh Rubber JSC (TRC), unveiled that the rubber price falling had hampered the operation of businesses in the sector.

At TRC, the company only raked in $108,690 in Q1 of this year, down half compared to a year ago.

This year, TRC aims to hit $16.2 million in total revenue and $3.3 million in pre-tax profit, down 34 per cent and 13 per cent on-year, respectively.

These targets are set based on the expectation that the average rubber latex price fetches $1,650 per tonne. In Q1 this year, rubber latex fetched an average $1,445 per tonne, down $350 per tonne on-year, leaving the company to only fulfil 4 per cent of its full-year profit target.

Phuoc Hoa Rubber JSC (PHR) is also cautious with 2023 business targets.

Accordingly, PHR aims to reach $23.86 million in consolidated profit this year, down 51 per cent on-year.

This year, PHR is set to sell out 34,300 tonnes of dried latex equivalent, with the price averaging $1,650 per tonne.

Nguyen Duc Dung, deputy general director of Mercantile Exchange of Vietnam, assumed that the volatile rubber price came due to wobbles in the global financial market.

Bank crises in the US and EU have cast a shadow on the global economic outlook, triggering concerns that slowing growth would weaken rubber demand in production and consumption, putting pressure on product prices.

In addition, production activities by major rubber consumers such as China and Japan have yet to strongly rebound, hindering rubber prices to set a stable trend.

Pepper producers set sights on US$2 billion exports by 2025

With pepper exports reaching US$1.4 billion last year, the Vietnamese pepper and spice sector are likely to rake in US$2 billion in export turnover by 2025, according to insiders insiders.      

The ambitious target was unveiled at a conference held in Hanoi on April 21 seeking ways to help Vietnam become a sustainable supplier of both pepper and spices.

In her speech, Hoang Thi Lien, president of the Vietnam Pepper Association, noted that Vietnam currently ranks first in pepper export proportion and export output, adding that there remains ample room for further development of pepper cultivation.

According to the official, the enforcement of free trade ageeements that Vietnam has signed with its partners has created comparative advantages for farm produce, including pepper and other spices, in the global market thanks to the country’s geographic location, climate and soil conditions.

However, she said the pepper sector is anticipated to endue numerous challenges due to geopolitical factors and stringent requirements set by importers, especially issues related to pesticide residues, as well as unpredictable developments of climate change.

She emphasised the need to strengthen connectivity among the State, enterprises, craft associations, and farmers, whilst simultaneously building a brand to improve the industry’s competitiveness and achieve the goal of sustainable development in the future.

The Vietnam Pepper Association reported Vietnam exported 76,727 tonnes of pepper worth US$235.9 million during the first quarter of the year, up 40.5% in volume but down 7.3% in value year on year.

Central Highlands urged to “awaken” tourism potential

The Central Highlands region boasts huge potential for tourism development; however, the regional non-smoke industry has to date failed to unlock its potential and strengths.

The Central Highlands, which consists of Kon Tum, Gia Lai, Dak Lak, Dak Nong and Lam Dong provinces, is located in the area of the Vietnam-Laos-Cambodia border T-junction, and adjacent to the north central, south central coastal and southeast regions.

The region is endowed with many valuable resources for tourism development such as landscape along Dak Bla, Serepok, Krong Ana, Krong No, Dong Nai rivers; large and beautiful lakes such as Tuyen Lam, Dan Kia Suoi Vang (Lam Dong), Lak (Dak Lak), Bien Ho (Gia Lai), and hydroelectric lakes of Yaly and Dai Ninh, and such beautiful waterfalls as Dray Sap, Trinh Nu and Dieu Linh. It is also home to 47 ethnic minority groups with unique cultures. 

Deputy Director General of the Vietnam National Administration of Tourism (VNAT) Ha Van Sieu said that the region is rich in natural resources and cultural identities, which are favourable conditions to develop community-based and experience tourism, such as tours to trade villages and explore ethnic minority’s cultures.

However, these types of tourism have not yet developed commensurately, Sieu noted.

To untie “bottlenecks” to meet tourism development requirements, Nguyen Duy Thuy, Director of the Institute of Social Sciences in the Central Highlands Region, said that region should look back on its investment attraction and infrastructure construction.

According to him, the region is lacking development connectivity between its localities, skilled human resources, and methodical programmes on tourism promotion to foreign countries.

Limited transport infrastructure and downgrading roads in the region are also hindering the non-smoke industry from development, Thuy stressed.

He proposed Central Highlands provinces build a shared database, rearrange the destination network, increase investment in the sector, improve the quality of human resources, and step up promotion activities.

Vietnam attends Int’l Meeting of Performance Audit Critical Thinkers in Australia

A delegation of the State Audit Office of Vietnam (SAV) attended the International Meeting of Performance Audit Critical Thinkers (IMPACT) 2023 in Australia on April 19-20.

The event, co-hosted by the Australian National Audit Office (ANAO) and the Australian Capital Territory Audit Office, brought together more than 200 delegates from audit offices worldwide and Australian ministries and agencies, along with many leading experts.

With the theme of “The Auditor of the Future”, the meeting focused on the two topics of technology as a tool; and technology and the impact on the auditors.

Participants exchanged experience in attracting auditors, and looked into necessary skills for auditors in the digital era, and issues regarding cyber security, challenges to the public sector and auditing in the AI era.

Other issues tabled for discussion included the linkages between auditing and the legislature, and how to enhance audit impact from the perspective of the legislature, among others.

The participants shared the view that audit offices should constantly reform their operations to meet higher requirements for audit reports in terms of both quality and deadline.

During their stay in Australia, the SAV delegation, led by Deputy Auditor General Ha Thi My Dung, held sidelines meetings with representatives from the participating audit offices, including a bilateral working session with the ANAO.

Dung spoke highly of the ANAO’s hosting of IMPACT 2023 which touched upon practical issues to state offices worldwide in the context of the fourth Industrial Revolution and the world entering the new normal after COVID-19.

The official noted her hope for stronger cooperation between the audit offices of Vietnam and Australia through multilateral forums, and the exchange of personnel and professional experience.

The two sides should work together to improve audit quality, data analysis and IT application in audit activities, Dung continued, noting Vietnam hopes that the ANAO will back the SAV’s bid to run for a seat in the Asian Organisation of Supreme Audit Institutions (ASOSAI) Audit Committee for the 2024-2027 term at the ASOSAI Assembly next year.

Dung conveyed the greetings and invitation of State Audit General Ngo Van Tuan to his Australian counterpart Grant Hehir and colleagues to visit Vietnam in the coming time.  

Hehir affirmed that the ANAO stands ready to share its experience with the Vietnamese counterpart in the areas of its strengths like data collection and analysis, and IT application in auditing.

The official also expressed his willingness to welcome the SAV staff to come to learn about the above-said issues, saying he hopes to visit the SAV in the time ahead.

Vietnam, New Zealand share experience in improving quality of auditing

The State Audit of Vietnam (SAV) and the Audit New Zealand shared experience in and solutions to raise the quality of auditing during a recent working session between Vietnamese Deputy Auditor General Ha Thi My Dung and Controller and Auditor-General of New Zealand John Ryan, as part of the former's visit to New Zealand.

Dung appreciated contributions of Audit New Zealand as a member of international organisations such as the International Organisation of Supreme Audit Institutions (INTOSAI), the Pacific Association of Supreme Audit Institutions (PASAI), and the Asian Organisation of Supreme Audit Institutions (ASOSAI).

She also spoke highly of its support for the SAV in the process of participating in multilateral organisations such as INTOSAI and ASOSAI, especially when the SAV hosted the 14th ASOSAI Assembly and served as the ASOSAI Chair in the 2018-2021 term.

The State Audit of Vietnam wishes to further promote bilateral cooperation activities; enhance exchanges and experience sharing; and hold joint seminars to exchange and share professional experience in auditing, especially public procurement audit and environmental audit.

It also wants to receive the Audit New Zealand’s backing for its candidacy for a seat in the ASOSAI Audit Committee for the 2024-2027 term at the 16th ASOSAI Assembly in 2024, stated Dung.

Welcoming the SAV delegation, Ryan briefed the guests on the Audit New Zealand’s development strategy in the coming years, particularly in the 2023-2028 period. The New Zealand side also shared its audit experience in implementing sustainable development goals,

Bac Lieu, Ha Nam look to expand investment cooperation with Australian firms

Australian businesses were updated on strengths, demands and preferential policies of the northern province of Ha Nam and the Mekong Delta of Bac Lieu at a seminar held in Sydney on April 20.

Addressing the event, Vietnamese Consul General in New South Wales, Queensland and South Australia states Nguyen Dang Thang highlighted the stronger and fruitful development of relations between Vietnam and Australia in recent years, especially since the two countries elevated their relationship to a strategic partnership in 2018.

Cooperation between localities of the two countries has also developed effectively on the basis of the Vietnam-Australia Enhanced Economic Engagement Strategy, he said, noting that the seminar aimed to connect Ha Nam and Bac Lieu provinces with Australia partners for development and prosperity goals.  

Chairman of the People’s Committee of Bac Lieu province Pham Van Thieu and Standing Vice Secretary of the Party Committee of Ha Nam province Dinh Thi Lua briefed participants on their localities’ policies for foreign investors, pledging that they will create the most favourable conditions for investors.

In addition to introducing Bac Lieu's strong products such as shrimp and high-quality rice, Thieu also invited Australian businesses to invest in shrimp processing factories for export; and develop offshore wind power projects, high-quality health and education projects in the province.

Meanwhile, Lua affirmed that the local authorities will accompany investors. She called for stronger cooperation between Ha Nam and Australian investors in developing industrial parks, resort tourism destinations, and high-quality education projects.

Representatives of Australian trade agencies and businesses affirmed that Vietnam has continued to be one of Australia's leading important trade and investment partners in the region. 

They also spoke highly of the support of the Vietnamese government and localities for their projects in Vietnam, and expressed their hope to further expand trade and investment cooperation with Vietnam in the coming time.

Brent Thomson, CEO of GEO Scan Australia Pacific which specialises in renewable energy, said his company is interested in investing in Bac Lieu and Ha Nam provinces.

Vietnam is an attractive and valuable investment attraction for Australian enterprises, Thomson said, affirming that many Australian enterprises are looking for investment opportunities in the Southeast Asian nation.

Impact investing – A catalyst towards new growth in Vietnam

Innovation and impact investing will help Vietnam ensure balanced socio-economic development, as well as sustainable development, heard a workshop in Hanoi on April 20.

The event was jointly held by the Vietnam National Innovation Centre (NIC) under the Ministry of Planning and Investment, and Japan’s Mitsubishi Research Institute (MRI), aiming to spur Vietnam’s economic growth in combination with solutions to social and environmental issues. The idea is to accomplish growth through innovation, and linkages between investment funds and financial organisations, and innovative firms and startups.

Impact investing refers to investment strategy that aims to generate specific beneficial social or environmental effects in addition to financial gains.

NIC Director Vu Quoc Huy noted that addressing social and environmental issues, along with economic growth, is important for Vietnam to transform into a developed nation by 2045.

MRI Deputy General Director Hidemoto Mizuhara called for cooperation between Vietnamese and Japanese enterprises, as well as between impact startups and governments to handle social issues and achieve growth targets.

Innovative startups have emerged as promising entities in the utilisation of innovative business methods and models to tackle problems, he continued, pointing out that impact enterprises in Vietnam are facing various challenges and not able to speed up to fully tap their potential.

He also highlighted the importance of collaboration between Vietnam and Japan, which has experience in tacking socio-economic issues, to the formation and development of innovative enterprises and impact startups.

Through the workshop, the sides expected to establish a network of impact firms of the two countries, which will share information and experience with the support and consultation of Japanese investors.

The event was seen as the premise for the extensive cooperation between the MRI and the NIC. Working together, they plan to help innovative businesses and startups access international resources, and further draw the interest of the Japanese Government and investors in impact investing and innovation in Vietnam.

The partnership was also formed part of activities towards the 50th founding anniversary of diplomatic relations between Vietnam and Japan.

Philippines initiates investigation on LPG steel cylinder imports

The Department of Trade and Industry (DTI) of the Philippines has initiated a safeguard investigation on imported liquefied petroleum gas (LPG) steel cylinders, according to the Trade Remedies Authority of Vietnam (TRAV) under the Vietnamese Ministry of Industry and Trade.

According to the DTI's notification sent to TRAV earlier this week, the investigated product is classified under code AHTN 7311.

The petition was filed by Ferrotech Steel Corp and the period of investigation is between 2017 and 2021, according to the DTI.

Vietnamese enterprises are suggested to contact TRAV for more information about the case.

Vietjet offers promotional tickets on several Asian routes

Vietjet is offering passengers a shocking promotion week from now until April 25 to travel across Japan, Taiwan (China), the Republic of Korea, Hong Kong (China) with tickets priced from only 0 VND on the occasion of the April 30 - May 1 holiday.

Accordingly, from 0:00 of April 19 to 11:59 pm of April 25, passengers can freely hunt for tickets from 0 VND, excluding taxes and fees, on routes between Vietnam (Ho Chi Minh City, Hanoi, Da Nang, Phu Quoc, etc) and Japan (Tokyo, Osaka, Nagoya, Fukuoka), Taiwan (Taipei, Taichung, Tainan, Kaohsiung), the RoK (Seoul, Busan), and Hong Kong.

The flight period is from May 7 to November 30.

Vietjet is a fully-fledged member of International Air Transport Association (IATA) with the IATA Operational Safety Audit (IOSA) certificate. As Vietnam’s largest private carrier, the airline has been awarded the highest ranking for safety with 7 stars by the world’s only safety and product rating website airlineratings.com and listed as one of the world's 50 best airlines for healthy financing and operations by Airfinance Journal in many consecutive years. The airline has also been named as Best Low-Cost Carrier by renowned organisations such as Skytrax, CAPA, Airline Ratings, and many others.

More national-branded firms join top 50 Vietnamese brands

An increasing number of businesses with products receiving the national brand title entered the top 50 brands with highest value in 2022, Deputy Minister of Industry and Trade Tran Quoc Khanh said at the opening of the Vietnam National Brand Week and the National Branding Forum 2023 in Hanoi on April 20.

The number of businesses owning national branded products in the list increased sharply from 14 companies in 2018 to 21 in 2022, he said, stressing that their percentage in the top 10 most valuable brands of Vietnam also rose to 60% in 2022 from 20% in 2018.

The results showed the firms’ success to catch up with the global trend of investing adequately in branding, contributing to the improvement of the Vietnam National Brand, he held.

Vietnam enjoys the fastest growth in the national brand in the 2020-2022 period, he said, citing a report by Brand Finance showing that the Vietnam National Brand’s value increased 29.1% year on year in 2020 to 319 billion USD, 21.6% in 2021 to 388 billion USD, and 11.1% in 2022 to 431 billion USD.

Nancy Elizabeth Snow, Honourary Professor from California State University, Fullerton said that Vietnam is home to an increasing number of reputable businesses. She held that a good brand should not only offer good services and products but also give their promise to customers to win their confidence.

Alex Haigh, Managing Director of Brand Finance Asia-Pacific, said that after 15 years of branding research, Brand Finance realizes that making an interesting story is key to build the brand and national image for Vietnam.

Tran Le Hong, Deputy Director of the National Office of Intellectual Property, advised businesses to increase their awareness of the protection of intellectual property during the process of trademark development, while giving a professional approach to intellectual property rights, especially outside the country.

The Vietnam National Brand Week is taking place from April 17-23 within the framework of the Vietnam National Brand Programme 2023, aiming to mark the Vietnam Trademark Day (April 20), increase the recognition of the Vietnam National Brand and promote products that have won the Vietnam Brand title among the domestic and international communities.

Building resilience assessment tool introduced in Vietnam

A hazard mapping and resilience assessment framework has been introduced in Vietnam to help local developers improve the resilience of buildings.

The Building Resilience Index, an innovation launched by the International Finance Corporation (IFC) in a ceremony held in Hanoi on April 20, will make it easy for developers, locators, homebuyers, and other stakeholders to assess, improve, and disclose the resilience of buildings.

The index evaluates location-specific climate-related risks for real estate projects and resilience measures.

With support from the Australian Government, the BRI program in Vietnam has identified and integrated the country’s hazard maps into the BRI app. It will select three pilot projects spanning the residential, office, retail, educational, and hospitality sectors to assess and build resilience.

IFC will also promote the uptake of BRI in the local construction industry by raising awareness and delivering capacity training to building developers and other stakeholders.

Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia and Lao PDR, said: “In the face of threats posed by a rapidly changing climate, it’s vital to ensure that buildings are resilient to natural hazards such as cyclones, flooding, fire and landslides, especially in Vietnam’s urban areas, where so many people live.

The BRI initiative was launched in 2020 with the Philippines as the pilot country. Within a year and a half, 1.8 million square metres of gross floor area have been committed to being assessed by BRI for improved climate resilience.

In Vietnam, the BRI program will build on the success of IFC’s green building certification program, Excellence in Design for Greater Efficiencies (EDGE), which has since 2015 helped save 4.1 million USD in utility costs for 77,000 residents, avoiding 30,000 tonnes of greenhouse-gas emissions annually.

Vietnamese high-quality rice promoted in Hong Kong

A conference was held in Hong Kong (China) on April 19 to tighten relations between rice businesses from Vietnam and Hong Kong as well as promote Vietnamese high-quality rice in the market.

Speaking at the event, Tran Quoc Toan, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade, said that for many consecutive years, Vietnam has always been in the top 10 largest trading partners of Hong Kong. The total import-export turnover between the two sides in 2022 neared 10.9 billion USD, down 6% compared to 2021. In the first three months of 2023, the trade turnover reached 2.5 billion USD, down 28% over the same period last year.

As for rice, by the end of March 2023, Vietnam exported more than 16,000 tonnes to Honh Kong, approximately the same period last year.

Ta Thu Thuy, a representative from Vietnam Food Association, said that Hong Kong is one of the traditional niche markets of Vietnamese specialty rice with modest consumption volume but stable purchasing power over the years. 

In recent years, the world economy has recorded mixed fluctuations, but the rice trade between Vietnam and Hong Kong is still going quite smoothly, she said, expecting favourable conditions will be created for rice importers and exporters of the two sides. 

Chairman of the Rice Merchants' Association of Hong Kong Kenneth Chan said Vietnam is one of the major exporters of the grain in the world and the second largest rice exporter to Hong Kong.

In the 2008-2013 period, Vietnam's rice market share in Hong Kong increased from 0.5% to 42%, which shows the competitiveness and adaptability of Vietnamese rice. 

Currently, about 24% of rice imported to Hong Kong is from Vietnam, he said, hoping that the cooperation between the two rice associations will be maintained and further developed.

MoC divests several major corporations

A total of up to $279 million is the anticipated value of divesting all state capital into four corporations.

This year, the Ministry of Construction (MoC) divested all state capital in Viglacera Corporation and Song Hong Corporation and transmitted the authority to represent the state as the proprietor of capital at Hanoi Construction Corporation.

Between 2024 and 2025, it will divest all state capital from Construction Machinery Corporation and Vietnam Machinery Installation Corporation.

The MoC anticipates collecting over $9.8 million in central budget revenue from COMA, over $15.7 million from Lilama, over $5.6 million from Song Hong Corporation, and over $248 million from Viglacera.

The ministry has just sent a document to the Ministry of Finance that anticipates that the proceeds from the sale of state capital will be transferred to the state budget between 2021 and 2025.

Housing and Urban Development Corporation (HUD) will conclude the corporate value announcement by December 31, 2025, per the MoC plan. Less than half of state capital is anticipated to remain after equitisation.

The MoC continues to maintain MTV Global Investment JSC (the state holds 100 per cent of charter capital) for Vietnam National Cement Corporation (VICEM); per the decision to reorganise state-owned businesses from the 2022–2025 period.

The ministry considers the above-mentioned anticipated revenue to be the expected value of the plan endorsed by the prime minister in Decision No.1479/QD-TTg, excluding unfavourable market conditions and difficulties.

Before the 2016–2020 period, the MoC continued to carry out an extensive arrangement and reorganisation of 16 enterprises, including 12 joint stock companie) and four one-member limited liability partnerships, with an emphasis on ending equitisation and continuing divestment according to a reasonable schedule.

Twelve groups have been equitised by the MoC, and the remaining four are Song Da Corporation, IDICO Corporation, HUD, and VICEM, which were newly added under Decision No. 58/2016/QD-TTg on the criteria for classifying state-owned enterprises for the 2016-2020 period.

Local authorities discuss fuel prices

The modification of petrol business regulations should consider the reasonable interests of all parties, according to government leaders.

In a document sent to the Ministry of Industry and Trade (MoIT) and the Ministry of Finance (MoF) on April 13, Deputy Prime Minister Le Minh Khai assigned MoIT and MoF to study regulations on business expenses and return the profit to the retail stage.

Government leaders noted that MoIT and MoF should ensure "scientific, harmonious, and reasonable" interests for all parties when revising petrol business regulations.

Standard fuel and oil trading expenses represent the maximum wholesale and retail costs that may be used to calculate the petrol and oil base prices. Currently, the standard cost for petroleum is 4.5 US cents per litre, and the standard profit is 1.3 US cents per litre (a total of 5.7 US cents per litre).

According to regulations, crucial businesses will divide this level between distributors and retail merchants, but the division ratio is unregulated. Retailers claim that this has caused them to lose trillions of dollars over the past year, despite the fact that they must still sell.

In a proposal sent to the prime minister on March 14, enterprises requested that both ministries establish a council to redistribute the cost and profit standard in the fuel base price. Enterprises also proposed that the aforementioned cost be specified in the new decree.

In the preceding petition, retail businesses proposed joining the ministries to establish a council to redistribute the costs and profits. In which the ministries must specify how much of this sum retail enterprises receive.

Multiple measures deployed to provide better services during five-day break

The Civil Aviation Administration of Vietnam (CAAV) has asked the Airports Corporation of Vietnam (ACV) and airports under the ACV to provide better services during the upcoming five-day public holiday marking National Reunification Day (April 30) and May Day (May 1).

The ACV was requested to draw up plans in terms of human resources, equipment and vehicles to maintain operation and service quality as well as security at local airports.

The CAAV also asked domestic airlines to reduce flight delays and cancellations, arrange night flights in order to meet the travel needs of passengers, and publicise the selling ticket price according to regulations.

Airlines were also asked to actively co-ordinate and timely provide information to airports and Ground Control Units to ensure smooth passenger flow and service quality in passenger transportation.

The CAAV also noted that adding more staff, opening early check-in counters, and making use of all available security scanners are also needed in a bid to reduce congestion occurring at airports.

The CAAV earlier approved plans to pilot the implementation of the Airport Collaborative Decision Making (A-CDM) model at both Tan Son Nhat and Noi Bai airports.

Phu Quoc tour price sees sudden fall, opportunities on offer

The price of tour to Phu Quoc island, a famous tourist destination described as a paradise in the southern province of Kien Giang, has fallen considerably ahead of the coming five-day break nationwide after staying high over the past days.      

With the price of airfares declining over recent days, the tour price and tourism combos to Phu Quoc island has dropped by 25% compared to two weeks ago, according to tour operators.

A representative of BestPrice Travel Company said air tickets from Hanoi to Phu Quoc from April 29 to May 2 had decreased slightly by between VND1 - 1.5 million for a round-trip flight.

Most notably, the price of a tourism combo for three days and two nights in Phu Quoc at a four-star standard resort is now hovering at around VND7.1 million per person

Tran Quoc Hung, a representative of travel platform Mustgo, attributed the decline in tour prices to Phu Quoc to the recent plunge in airfares, and added that airfares from Hanoi to Phu Quoc are likely to stand at only VND2 million for a round trip after the coming national holiday.

The move is expected to create opportunities for accommodation facilities in Phu Quoc such as the Best Western Premier Sonasea Phu Quoc, Sol By Melia, Radisson Blu Resort Phu Quoc, and Pullman Resort Phu Quoc to launch a number of discounts to attract visitors, said the travel executive.

At present, the hotel occupancy capacity on the pearl island during the national holiday period ranges between 60% and 70% for both three and four-star hotels and from 30% to 50% for the five-star segment.

Vietnam seeks to export more fruits to U.S. market

The Vietnamese agriculture sector expects the United States to allow two more types of fruits to enter the market, increasing the total number of fruits exported to this country to nine.

Minister of Agriculture and Rural Development Le Minh Hoan, during a meeting with U.S. Secretary of Agriculture Thomas Vilsack, said that coconut and passion fruit are set to enter the U.S. market, besides seven other fruit types comprising mango, longan, lychee, dragon fruit, rambutan, star apple and pomelo.

Vietnam has held negotiations with Australia to export passion fruits and pomelos to the market, apart from four other fruits: mango, longan, lychee and dragon fruit.

As for other markets, 12 fruits have entered the China market, followed by New Zealand with three types.

Europe is a potential market for Vietnamese fruits. The free trade agreement between the European Union and Vietnam has opened opportunities for Vietnamese agricultural products.

In practice, negotiations between Vietnam and other countries for exporting fruits takes a long time, even up to 12 years.

Mango is among the most accepted fruits, followed by dragon fruit, rambutan, longan and lychee.

Vietnam’s mango growing area increased by 21,000 hectares in 2017 and is expected to reach 140,000 hectares by 2030.

Vietnam ranks 14th in the world in terms of annual mango production and 4th in the ASEAN region, behind Thailand, Indonesia and the Philippines, according to worldatlas.com.

Over 200km of North-South expy opened to traffic on April 30

Two components of the Eastern North-South Expressway project, with a total length of 200 kilometers, will be temporarily opened to traffic on April 30 in celebration of Vietnam’s Reunification Day.

The Ministry of Transport has written to Project Management Unit 7, Thang Long, and its subordinate units to speed up construction work and complete the necessary procedures to temporarily put Vinh Hao-Phan Thiet and Phan Thiet-Dau Giay expressways into operation.

The amount of work that needs to be done before April 30 is still quite large, including asphalt concrete paving, installing expansion joints for bridges on the main route and setting up road signal systems and road dividers.

The 100-kilometer-long Vinh Hao-Phan Thiet Expressway, running through Binh Thuan Province, has an estimated investment of over VND11,000 billion from the State budget.

Work on the project started in late September 2020 and was originally scheduled to be completed by the end of 2022. However, the deadline for the project has been extended to April 30, 2023.

Currently, all the bidding packages for the project are over 83% complete, of which work on the main route is over 94% complete.

The 99-kilometer-long Phan Thiet-Dau Giay Expressway project, passing through Binh Thuan and Dong Nai provinces, requires a total of over VND12,577 billion from the State budget.

Work on the project started on September 30, 2020, and was set to be completed at the end of 2022.

However, the Ministry of Transport extended the deadline until April 30, 2023, due to various reasons. Currently, the construction of the project is 91% complete.

HCMC expedites study on Can Gio transshipment port project

The HCMC government has requested relevant agencies to prepare a plan to develop the Can Gio international transshipment port which will be submitted to the Prime Minister for approval this year, reported the local media.

The project, aiming to attract international container transshipments to Vietnam, will satisfy the urgent needs of HCMC and Southeast Asia.

With a prime location at the Cai Mep river mouth in close proximity to international shipping lanes, Can Gio Port can accommodate container vessels of 250,000 DWT operating on the routes connecting Asia with Europe, Africa and America.

Earlier, the Ministry of Transport assigned the HCMC People’s Committee to prepare a study on building the Can Gio international transshipment port, which could be conducted in parallel with the adjustment of the master plan on developing Vietnam’s port system.

To expedite the project, the HCMC authorities requested the Saigon Port Joint Stock Company to flesh out the plan and the Department of Transport to coordinate with relevant agencies to determine the affected forest area of the plan.

Besides, coordination with the Vietnam Maritime Administration is needed to calculate the domestic cargo volume to be shifted to the Can Gio transshipment port from the existing container terminals such as Cat Lai, Phu Huu, Hiep Phuoc and the Saigon River port area.

The Can Gio International Transshipment Port will be constructed with a 7.2-kilometer berth that can accommodate container vessels of up to 24,000 TEUs. The port would have a designed capacity of 10-15 million TEUs of cargo and require a total estimated cost of US$6 billion.

The project will commence its first phase among seven phases in 2024 and be put into service in 2027.

Draft law allows interest-free lending to institutions facing bank runs

The State Bank of Vietnam, or SBV, has sent a draft of the amended Law on Credit Institutions to the National Assembly, in which local banks could ask for interest-free loans if they face a bank run.

The SBV, the central bank, said that Vietnam should draw lessons from the bank runs that struck the Silicon Valley Bank, and the Signature Bank in the U.S. and from the collapse of Credit Suisse in Switzerland.

As per the draft, banks with accumulated losses exceeding 20% of their charter capital and reserves and those that face massive cash withdrawals from clients and become insolvent would need early interventions by the SBV.

Those banks would be allowed to take out loans at a zero interest rate from the SBV. Additionally, the SBV would designate the Deposit Insurance of Vietnam, Vietnam Cooperative Bank, or others to provide special interest-free loans if necessary.

The SBV would carry out various measures to support the liquidity of local banks facing massive withdrawals, such as purchasing the banks’ valuable papers on open market operations, conducting foreign exchange transactions and recapitalizing banks.

According to the draft, the SBV and the Government Inspectorate would supervise banking activities, prevent manipulation in the banking system, and timely detect and strictly handle violations.

The SBV also proposed adjusting the regulations on credit growth limits, capital contribution and purchase of shares at credit institutions.

Individuals would not be allowed to own over 3% of charter capital (currently 5%). Shareholders would not be allowed to own more than 15% of the charter capital of a credit institution, down 5% compared to the rates in the current regulations.

Large shareholders of a bank and related persons are allowed to own a maximum of 5% of the charter capital of another bank.

The draft amendment proposes reducing the maximum credit limit for customers from 15% to 10%.

FPT earns VND2.1 trillion in pre-tax profit in Q1

FPT Corporation (stock code: FPT) posted first-quarter revenue of over VND11.6 trillion, up 20.1%, and pre-tax profit of VND2.12 trillion, up 19.2% over the same period last year.
The software developer also announced VND1.8 trillion in after-tax profit, up 17.6% year-on-year.

FPT Corporation generated around VND6.8 trillion, VND3.7 trillion, and VND1.04 trillion in revenue from its technology, telecommunication, and education activities, increasing by 21.3%, 9.2%, and 69.7%, respectively.

This corporation experienced revenue growth in all markets between January and March, particularly a rise of 31.2% in Japan and 65.7% in the Asia-Pacific (APAC) region.

During the first quarter of 2023, FPT Corporation received many large orders from foreign markets, including six projects with a scale of over US$5 million each.

Malaysian firm wants to invest in US$2 billion refinery in Phu Yen

PETMAL Oil Holdings (Malaysia) has proposed investing in an oil refinery worth US$2 billion in the Southern Phu Yen Economic Zone.
Provincial Chairman Ta Anh Tuan had a working meeting with PETMAL Oil Holdings on April 19 over the 500-hectare oil refinery project.

The Southern Phu Yen Economic Zone is planned to attract investments in technical infrastructure to build a deep-water port and develop industries combined with making full use of the sea port’s advantages, including an oil refinery.

At the meeting, the chairman and general director of PETMAL Oil Holdings, Paduka Affendi, proposed investing in the oil refinery in southern Phu Yen, which would be executed in 36 months.

The chairman of the Phu Yen People’s Committee said that the proposal for investment policy made by the corporation was appropriate with the provincial socio-economic development plan.

For the oil refinery project, he requested the investor to continue discussing and working with relevant departments, agencies and partners to ensure regulatory compliance in implementing the investment project in the province.

Earlier, Deputy Prime Minister Tran Hong Ha and the Government delegates paid a site visit to the Southern Phu Yen Economic Zone, where Bai Goc port will be built. The port, oriented to develop multi-objective berths and specialized berths for steel factories, oil refineries, liquid gas cargo and logistics areas, could handle ships of 250,000 DWT.

Ho Chi Minh City Economic Forum 2023 to take place in September

The HCMC People’s Committee announced that the 4th Ho Chi Minh City Economic Forum 2023 is scheduled to take place on September 13-17.

Secretary of the HCMC Party Committee Nguyen Van Nen speaks at the Ho Chi Minh Economic Forum 2022. (Photo: SGGP)
This year’s event themed “Green growth- The Journey to Zero Emissions” will attract 1,000-1,200 local and international participants, including experts, representatives of financial organizations and business associations.

At the forum, HCMC’s leaders will introduce the city’s specific tasks and solutions on the implementation of green development, and application of circular economy in service, business and production activities, contributing to directing the economy of HCMC to develop quickly, and sustainably in the coming period.

The main activity of the forum is seminars on trends in developing green growth and circular economy in megacities, including HCMC; business’s missions; international resources and lessons promoting green growth and circular economy; HCMC’s current situation and solutions for the application of green growth model.

The forum will also include trade and investment promotion exhibitions and connection activities. In addition, the city plans to organize trips for departments and enterprises to learn about green growth models in Finland, Holland, Japan and South Korea.

There will be meetings between HCMC leaders and participants, including experts, investors, representatives of the financial organizations and business associations, and 100 Chief Executive Officers (CEOs) of corporations in the domestic and foreign green economy and circular economy ecosystems.

The HCMC People’s Committee has directed Sai Gon Giai Phong (SGGP) Newspaper to organize a seminar on the green growth and investment and development potentials in HCMC which will take place in August or September; coordinate with the Department of Foreign Affairs and the HCMC Business Association to write interview reports; cooperate with the organization board to provide information about the forum to the public.

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