To serve the increasing travel demand during the holidays of National Reunification Day (April 30) and May Day (May 1), Vietnam Airlines Group, including Vietnam Airlines, Pacific Airlines and VASCO, will increase the number of its flights.

From April 24 to May 4, the group will focus on increasing the load on eight key tourist routes including: Hanoi and Hue, Da Nang, Cam Ranh, Da Lat, Phu Quoc; and between Ho Chi Minh City and Da Nang, Cam Ranh and Phu Quoc.

A representative of Vietnam Airlines said that the strongest increase can be seen on the Ho Chi Minh City - Da Nang route with the addition of 46 flights, followed by the Hanoi - Da Nang with 40, and the Hanoi - Nha Trang with 38.

With this load increase, the group has added more than 255 flights, equivalent to over 50,000 seats, bringing the total supply of its entire domestic and international networks to nearly 2,700 flights and more than 524,000 seats in the above-mentioned period.

Work starts on 230 million USD industrial zone in Long An

The construction of the Nam Thuan Industrial Zone (IZ), worth over 5.3 trillion VND (230 million USD), began in the southern province of Long An on April 21.

The IZ, built by the Dai Loc Long An JSC, covers more than 308ha in Duc Hoa district. It will serve a wide range of sectors including electronics and telecommunications, mechanical engineering, weaving, dyeing and garment, wood and food and beverage processing.

To date, 18 businesses have signed contracts in principle with the investor on leasing nearly 30ha of land. This figure is expected to increase to about 100ha by the end of this year.

Out of 37 planned IZs in the province, 16 are operational, attracting over 1,700 projects, said Chairman of the provincial People's Committee Nguyen Van Ut, adding their occupancy rate is 91.7 percent.

Party chief urges greater efforts to help Mekong Delta take off

Party General Secretary Nguyen Phu Trong on April 22 required greater efforts to be made to help the Mekong Delta develop strongly in the near future.

The Party leader made the request at a hybrid national conference held by the Politburo on the implementation of Resolution No. 13-NQ/TW on orientations to promote socio-economic development and ensure security and defence in the Mekong Delta to 2030, with a vision towards 2045.

To well organize the implementation of the resolution, General Secretary Trong urged the whole political system to be fully and deeply aware of the purposes, significance, requirements and content of the resolution.

He requested the Government and central agencies to increase coordination with regional localities to urgently devise, complete, issue and implement laws and policies conducive to the region’s development.

It is necessary to well implement the regional planning for the 2021-2030 period, with a vision towards 2045 in a green, sustainable and comprehensive direction in line with the national master plan, he said.

Vietnam’s corrosion-resistant steel exports to US rise sharply

Vietnam shipped some 335,000 tonnes of corrosion-resistant steel products (CORE) to the US last year, a three-fold rise from the previous year, according to the United States International Trade Commission (USITC).

Between December 2020 and November 2021, Vietnam exported 374 million USD worth of CORE to the US, accounting for 4.8 percent of the US’s total import value of the products during the period.

The Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade noted that although the US Department of Commerce (DOC) has decided not to initiate an investigation into the alleged circumvention of anti-dumping duties by Vietnam’s CORE made from cold rolled steel (CRS) and hot rolled steel (HRS) imported from Japan, domestic producers still need to take precautions.

On November 17, 2021, the DOC received a request for investigation into the alleged circumvention of anti-dumping duties by Vietnam’s CORE made from CRS and HRS from Japan.

Vietnam-Laos trade increases by 19.2 percent in Q1

Two-way trade turnover between Vietnam and Lao topped 403 million USD in the first quarter of this year, up 19.2 percent over the same period last year, according to the Vietnamese Trade Office in Laos.

Of which, Vietnam's export revenue hit 130 million USD, down 18 percent over the same period, while its imports from Laos picked up 52.4 percent year-on-year to 272 million USD.

Commodities that enjoyed high growth in the period include fertiliser, petrol, electric wire and cable with year-on-year rises of 161.6 percent, 142.3 percent and 42.5 percent, respectively.

Items that experienced a drop in export revenue include coffee with 80.7 percent, common metals and finished products with 76.6 percent, wood and wooden products with 49.7 percent.

Data from the trade office showed a rise in revenue of all items imported from Laos. Notably, Vietnam spent more than 28 million USD importing Lao ore and minerals, 405 percent higher than the same period last year.

Vietnam’s 500 fastest-growing companies honoured

The lists of the 500 fastest-growing companies in Vietnam (FAST500) and the top 10 firms in real estate - construction - building material this year were announced by the Vietnam Report JSC and the VietNamNet e-newspaper during a ceremony held in Hanoi on April 22.

Hung Thinh Land JSC, MB AGEAS Life Insurance Company Limited and Tin Viet Finance JSC were honoured this year.

Other names in the top 10 include Thang Loi Real Estate JSC, Hoang Mai Production Trade and Service Co., Ltd, Pha Le Plastics Manufacturing & Technology JSC, Sao Mai Group Corporation, Nam Hoa Trading & Production Corporation, Tan Viet Securities Joint Stock Company and KB Securities Vietnam Joint Stock Company.

Lego Group pins high hope on Vietnam project: representative

Lego Group pins high hope on its project in Vietnam as this will be the first carbon neutral factory of the Danish firm across the world and its second in Asia, a high-ranking official of the Danish toy production company has said.

Ole Hammer, Director of Government and Public Affairs at Lego Group, made the remark during a reception hosted by Vietnamese Ambassador to Denmark Luong Thanh Nghi on April 20.

During a working session, Hammer briefed his host on Lego’s investment strategy in Vietnam after the group signed a memorandum of understanding on the building of its factory in southern Binh Duong province with the Vietnam-Singapore Industrial Park (VSIP) in December.

Vietnamese agencies granted investment registration certificate to Lego last month.

Work on the factory is scheduled to begin in 2022, and it will become operational in 2024, expected to help Lego expand its global supply chain. The new facility has a total investment of more than 1 billion USD, making it among the largest foreign-invested projects in Vietnam.

The plant is hoped to generate 4,000 jobs in the next 15 years.

Hanoi moves towards modern, sustainable agriculture

Hanoi is moving towards a smart, high-tech and sustainable agriculture that can adapt to climate change.

Along with synchronous investment in infrastructure in rural areas, the city will focus on developing key agricultural products, including longan, Canh oranges, Dien pomelos, flowers, ornamental plants, and seeds to improve product value.

For sustainable development, the city's agriculture has been focusing on supporting localities to build concentrated and safe production areas, develop key products, and attract business investment.

The high-tech vegetable growing model of the Cuoi Quy Organic Vegetable Cooperative in Dan Phuong district, was one of the 30 excellent agricultural projects that entered the final round of the "I am a farmer in the 4.0 period" contest organised by the Vietnam Farmers' Association.

Phan Trung Kien in Dai Yen commune, Chuong Mi district, owner of a 13,000-chicken farm, said that high-tech poultry breeding with a closed production line of safe methods should limit disease, adding every day, his farm supplies 8,000 eggs to the market.

The city now has 160 high-tech agricultural production models, of which 105 are in crop production, 39 in livestock, 15 in aquaculture and one combining cultivation and farming.

Director of the city Agricultural Extension Centre Vu Thi Huong said that many models were investing much in modern technology, which initially brought high economic efficiency such as seed production and the Phalaenopsis orchids planting model of Dan Hoai Cooperative in Dan Phuong district, and the mushroom production model with Japanese technology of Kinoko Thanh Cao Import-Export Co. in My Duc district.

Foreign retail chains can be a new channel to sell abroad: insiders

Many Vietnamese firms are trying to display their products in foreign supermarket chains to sell them abroad, but it is not an easy task, according to insiders.

To Huynh, a leading member of Surifarm Organic Vegetables LTD., anticipates that his firm’s dry foods would easily satisfy customers in other regional countries.

However, it was quite difficult to export the foods to those countries via supermarket chains, due to stiff local competition and high logistic costs.

High logistic costs put obstacles in the way of small firms trying to enter foreign markets, he said.

The firm leader also said that big companies would copy small firms' strategies once they saw the latter earning high profits in the markets.

As a result, small firms entering new markets via retail chains would end up competing with both local producers and big names.

Nguyen Thi Thu Hien, external relations manager of Central Retail Vietnam, underlined technology as the key to cost optimisation and better supply chain management.

She recommended that Vietnamese firms accelerate technology applications to cut costs further and improve product quality to boost their coverage in foreign retail chains.

Health, environmentally-friendly and local products are becoming more appealing to customers of all segments, she said.

Truong To Uyen, director of the purchasing department of a foreign retailer, revealed that Vietnamese firms had to go through four stages before their products could be put on sale in foreign supermarkets.

The four stages include dossier approval, negotiation and signing contracts, adding the supplier data to the system, and order and delivery.

Firms urged to promote value proposition to explore emerging BNPL market

Deloitte and cloud banking platform Mambu have identified the five steps merchants and fintech firms need to embrace in building a successful Buy Now Pay Later (BNPL) offering.

This is part of a new report exploring the implications of the fast-growing sector for banks and retailers.

The ‘Deloitte and Mambu Guide to BNPL’ identifies five core building blocks for businesses looking to develop a BNPL solution in an increasingly competitive environment. They include: Value proposition; Technology and data; Risk and compliance, Skills and capabilities; and Go-to-market.

The report comes amid booming demand for BNPL services, with the market projected to be worth 3.98 trillion USD by 2030 - growing at a CAGR of 45.7 percent.

Consumer demand for convenience and affordability is one of three factors driving this growth according to the report, with recent data from Deloitte showing that more than half of consumers (56 percent) cite the ability to test a product before making a payment as a key driver for using BNPL.

Vietravel Airlines launches new routes for summer demand

Vietravel Airlines on April 22 opened a new route linking Hanoi and the south central province of Binh Dinh’s Quy Nhon city, and reopened the route connecting the capital city and central Da Nang city to meet growing travel demand in summer.

According to data from Vietravel Airlines, its flights to these two destinations have seen occupation rates of between 85 and 100 percent recently. For the upcoming holidays of National Reunification Day (April 30) and May Day (May 1), fares of flights to the cities are now almost sold out.

PM requests developing transparent, sustainable capital market

How to develop a safe, transparent, effective, and sustainable capital market to ensure macro-economic stability is the focus of a conference held under the chair of Prime Minister Pham Minh Chinh on April 22.

Vietnam’s capital market has recorded fast growth in recent years, expanding by 28.5 percent annually on average during 2016 - 2021. It was equivalent to 134.5 percent of GDP last year, rising 3.5-fold from 2015. In particular, the stock market was equivalent to 93.8 percent of GDP while the bond market 39.7 percent, according to a report delivered at the meeting.

However, the rapid growth of the stock and bond markets has also posed latent risks, it noted, pointing out some cases of market manipulation, bond mobilisation for wrong purposes, and law infringement.

Addressing the meeting, PM Chinh underlined the Government’s viewpoint that wrongdoings must be strictly handled so as to make the market transparent and protect investors and businesses.

The Government stays persistent in the target of stabilising the macro-economy, controlling inflation, and effectively implementing the socio-economic recovery and development programme, he affirmed.

Highlighting the main tasks to achieve that target, he said at first, relevant ministries, sectors, and agencies have to keep the investment climate stable, especially the consistency of policies.

The PM also ordered a legal corridor be built to protecting investors in the stock and bond markets, measures taken for ensuring balanced development of the capital and monetary markets, and the stock market developed healthily and sustainably to facilitate the mobilisation of medium- and long-term capital.

He stressed the Party and State’s consistent policy of not criminalising economic relations and issuing support policies to encourage enterprises to comply with laws and operate effectively and transparently, thus contributing to national development.

USAID, MPI sign agreement to expand cooperation

The United States Agency for International Development (USAID) and the Ministry of Planning and Investment (MPI) of Vietnam signed an amendment to their bilateral partnership agreement to expand USAID’s support to include local capacity development.

The amended agreement will expand joint efforts to strengthen private sector competitiveness, innovation and start-up ecosystems, human capital, and local capacity building.

Under this amended agreement, USAID's contribution in these areas will increase from 42 million USD to up to 100 million USD, and will continue for an additional three years, to September 30, 2028.

FPT posts 27.4 percent growth in pre-tax profit in Q1

Multi-industry group FPT enjoyed high growth in revenue and pre-tax profit in Q1 on account of the growing technology segment.

In the first three months, the group reported a 9.73 trillion VND (423 million USD) in revenue and 1.77 trillion VND in pre-tax profit, up 28.3 percent in revenue and 27.4 percent, respectively, from the same period last year.

The group's core and high-performing technology segment continued to be the main driver of the group’s growth as its revenue reached 5.59 trillion VND with a pre-tax profit of 770 billion VND.

It was followed by digital transformation services, with 96.2 percent focusing on new technologies such as Cloud, AI and data analysis.

Notably, revenue from abroad posted 4.11 trillion VND, bringing a pre-tax profit of 667 billion VND with an increase of 29.7 percent and 34.9 percent, respectively.

During the period, its revenue from ICT reached 1.48 trillion VND with a pre-tax profit of 103 billion VND. Of this figure, the ecosystem made by FPT digital transformation platforms includes more than 100 platforms, solutions, products and services based on core technology such as AI, Blockchain, Cloud, IoT and Low code that can be widely applied in e-government, transport, healthcare, banking, real estate, education and production.

Its telecom division achieved Q1 revenue of 3.47 trillion VND, an increase of 18.7 percent, bringing a pre-tax profit of 701 billion VND.

Vietnam developing national brand ecosystem

Developing a network of enterprises, experts, and national brands is necessary to improve value and promote Vietnamese national brands. This counts among the many highlights of the Vietnam National Brand Week launched by the Ministry of Industry and Trade.

One success story, Nguyen Huu Thuc, Director of the Chu Dau Porcelain Ceramic Joint Stock Company, said its brand has been built from a wide range of activities and it aims to reach out to the world.

Branding experts agree that national brand development is largely dependent on product branding and corporate branding.

Last year, despite COVID-19, Vietnam’s national brand value picked up 21.6 percent compared to 2020, rising to 388 billion USD and holding 33rd position in global rankings.

All understand the significance of national brand development, but more effort is needed to increase the presence of Vietnamese national brands in the global market. An ecosystem comprising experts, national brands, and enterprises should therefore be established to promote the Vietnamese national brand.

Innovation attracts large venture capital

This year will be pivotal for the next stage of development of innovative enterprises and Vietnam's digital economy to attract investment capital.

The Vietnam National Innovation Centre (NIC) and the venture capital firm Do Ventures Vietnam jointly released the Vietnam Innovation and Tech Investment Report on April 21.

This is the second year that the Vietnam Innovation and Technology Investment Report has been released.

Speaking at the ceremony, Deputy Minister of Planning and Investment (MPI) Tran Duy Dong said innovation was an inevitable trend not only in Vietnam but also around the world.

In recent years, Vietnam had made drastic changes in mechanisms and policies for innovation, which is reflected in the Global Innovation Ranking (GII), where the country moved from 52nd place out of 141 countries and economies in 2015 to 44 out of 132 last year, holding the number one position in the group of 29 countries with the same income level.

Last year the economy faced many difficulties because of the COVID-19 pandemic, but it was also a record year for venture investment in Vietnam with a total investment of 1.4 billion USD, an increase of 1.5 times compared to the previous record at 874 million USD in 2019, with the appearance of two new technology "unicorns" Momo and Sky Mavis.

NIC reported that the total number of investment funds participating in Vietnam increased by 60 per cent, evenly distributed among countries.

Among them, the country with the most active investors last year was Singapore, followed by Vietnam and the US.

Investment activities from Japan into Vietnam are also gradually becoming more active after two years of slowing down.

Total transactions of deals over 10 million USD exceeded 1 billion USD, up 255 percent over the previous year.

While the capital inflow into the seed round increased to a record high in both volume and value of the deal, the capital inflow into the rounds after series A has returned to pre-COVID-19 levels.

In particular, last year saw the appearance of five transactions worth over 100 million USD in the fields of payment, e-commerce and gaming.

With a large number of potential early-stage companies and a favourable business environment thanks to the close support of the Government, Vietnam's commercial ecosystem is ready to enter a more mature stage.

Phu Quoc airport to be invested to serve 10 million passengers a year

Phu Quoc International Airport in the Mekong Delta province of Kien Giang will be invested to be able to serve 10 million passengers a year.

According to the Civil Aviation Authority of Vietnam (CAAV), currently there are six domestic and 10 foreign airlines operating regular flights to/from Phu Quoc airport. Its passenger throughput reached 3.7 million in 2019, but down to 3.23 million in 2020 and about 1.6 million in 2021 due to impacts of the COVID-19 pandemic.

Recently, Deputy Minister of Transport Le Anh Tuan signed a document sent to the CAAV requesting to consider land and propose investment forms to expand the airport.

Accordingly, the Ministry asked the CAAV to actively coordinate with relevant agencies and units, including the Vietnam Air Traffic Management Corporation (VATM) and the Airports Corporation of Vietnam (ACV), to seek appreciate types of investment.

The Ministry’s requirements came after the Prime Minister’s working session with provincial leaders, during which he directed the Ministry of Transport to coordinate with the Ministry of Planning and Investment, the Ministry of Finance, and the People's Committee of Kien Giang in studying suitable investment types to expand Phu Quoc airport, with a goal of increasing its total capacity to 10 million passengers a year by 2030 so as to meet the locality’s socio-economic development requirement.

Regarding investors interested in the project, recently the Imex Pan Pacific Group (IPPG) proposed the Transport Ministry allow it to participate in the Phu Quoc International Airport expansion project.

IPPG wants to invest in the airport’s international terminal, cargo terminal, warehouse, and runway.

Online trade exchange to boost aquatic exports to EU market

A virtual trade exchange will be held on April 25 - 26 to provide Vietnamese businesses with the latest information about market trends as well as opportunities to export aquatic products to the European Union, according to the Ministry of Industry and Trade.

The online event is taking place as part of the National Program on Trade Promotion 2022, which is being jointly held by the Vietnam Trade Promotion Agency (Vietrade) in collaboration with various Vietnamese trade offices and embassies in some EU member countries.

The primary aim of the gathering is to assist localities, businesses, and cooperatives that supply local seafood products in seeking partners in the EU market.

Representatives of the Vietnamese Trade Office in EU member countries, importers, and distribution channels are anticipated to introduce the market demand for aquatic products. Meanwhile, Vietnam Association of Seafood Exporters and Producers (VASEP) leaders will provide information about business co-operation opportunities for Vietnamese exporters in the EU – a demanding but lucrative market.

For several years, the EU has represented one of Vietnam’s top five seafood export markets, while Vietnam makes up the second largest seafood supplier in Asia, just behind China. Indeed, the EU's seafood import demand is huge, with turnover reaching over US$50 billion annually.

The enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) in August 1, 2020 has created a wealth of opportunities for Vietnamese seafood businesses to increase their exports to the EU thanks to preferential tariffs set out within the trade pact.

Under the pact, 220 tax lines on aquatic products with a base tax rate of 0% to 22% are set to be slashed to 0% in the three and seven-year roadmaps, helping Vietnamese seafood products enhance their competitiveness compared to similar products imported from other countries.

Vietnam’s daily stock trading value ranks second in ASEAN

The average daily trading value on Vietnam’s stock market has reached more than 1.34 billion USD per session so far this year, up 15.9 percent from the last year’s figure and now the second largest in ASEAN, only after Thailand, according to the Ministry of Finance.
 
By the end of March, the market size had risen by 3.37 percent from last year to close to 78.3 million USD, equivalent to 21.4 percent of the GDP.

The number of securities accounts is on a rise, with more than 676,000 newly opened in the first quarter of 2022, almost equal to the 2021 figure. Total accounts have exceeded 4.98 million so far, an increase of 15.7 percent compared to the end of last year.

However, shares have been suffering decline over the last several weeks because of negative rumours in the real estate and securities sectors coupled with rising political tensions globally.

The Ministry of Finance has requested the State Securities Commission to accelerate the improvement of related regulatory framework and finalise the strategy for the development of the stock market by 2030 to further enhance its transparency and promote stable growth.

Virtual seminar spotlights Binh Duong as gateway to Southeast Asia

A virtual seminar was held on April 22 to highlight the southern province of Binh Duong as a gateway to Southeast Asia, with the participation of Belgian delegates and firms. 

Binh Duong is named among the 21 localities worldwide having outstanding smart city development strategies (Smart21) by the Intelligent Community Forum (ICF). The event aimed to define the province’s potential as an international destination for investment and business development.

Belgium firms are currently channelling more than 1 billion USD in 82 projects in Vietnam, ranking 22nd among the 140 countries and territories investing in the country.

As of March 2022, Binh Duong ranked second across the country in terms of foreign investment attraction, only after the southern economic hub of Ho Chi Minh City. It is home to five Belgian projects with a combined registered capital of over 39 million USD.

The province’s business climate, ongoing projects and especially orientations in the building of a smart city in the coming time were also promoted at the event.

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