Vietnam Group Electricity (EVN) has been told to find solutions for 14 solar power projects that have been granted feed-in tariffs (FITs) against regulations.

As per Resolution 115/NQ-CP issued in 2018, the projects entitled to a FIT of 9.35 cents per kWh for 20 years consist of solar power projects approved by the prime minister or included in the national power development plan, with a combined capacity of 2,022 MW. However, the Ministry of Industry and Trade has allowed more renewable energy projects to enjoy FITs.

Supplementary FITs were granted to projects including Hacom Solar, Sinenergy Ninh Thuan 1, Thuan Nam Duc Long, Thien Tan Solar Ninh Thuan, Phuoc Ninh, Son My 2, Son My, Solar Farm Nhon Hai, Bau Zon, Thuan Nam 12, SP Infra 1, Adani Phuoc Minh, Ho Bau Ngu, and the 450 MW solar power project combined with Thuan Nam 500kV station and 500kV and 220kW transmission lines.

The Government Inspectorate’s conclusion stated that the above projects should not have received FITs in line with Government Resolution 115, which entitles the south-central province of Ninh Thuan to special policies and mechanisms for social and economic development in 2018-2023.

As a result, EVN had to pay an additional VND1,480 billion to these investors over 2.5 years from 2020 to June 2022.

In a recent communication to EVN, the Ministry of Industry and Trade has called for a review of the entire negotiation process, power purchase agreement execution, grid connection conditions, recognition of commercial operation dates, and payments to investors as per the previously conducted FITs. This review aims to develop solutions for these cases.

ACV: Long Thanh airport bidding evaluation complies with laws

The Airports Corporation of Vietnam (ACV) has affirmed that the evaluation of the VND35-trillion bidding package for the passenger terminal of Long Thanh International Airport complies with laws.

ACV recently announced the Vietur consortium, led by Turkish company IC ISTAS, meets the technical requirements for Bidding package 5.10 on construction of the terminal, affectively entering into the next round of the bidding and kicking two other consortiums out of the race.

The fact that Vietur is the only contender in the next and final round of the bidding and that there is a high possibility that it will win the tender has prompted the Hoa Lu consortium, led by Coteccons, to file a complaint against Vietur.

Hoa Lu, which comprises local and foreign firms like Hoa Binh, Central An Phong, Delta, Unicons, Thanh An and Thailand’s Powerline Engineering Public Company Limited, called for due diligence in the process of selecting a consortium for this huge bidding package.

Any chosen consortium must be capable and free from construction delay record and suspicion of corruption, according to Hoa Lu.

In response, ACV said it had assessed technical documents based on criteria and procedures stipulated by laws. During the evaluation process, ACV requested the participating consortiums to provide additional documents for clarification.

A team of independent experts evaluated the technical documents of the three consortiums to ensure objectivity in the evaluation process, according to ACV.

ACV said the fact that Hoa Lu consortium had sent its complaint to multiple agencies in the ongoing bidding evaluation is not compliance with law, as all information about the bidding must be kept confidential. Hoa Lu’s action may harm the reputation of all stakeholders.

ACV is reviewing the financial documents of the Vietur consortium, and planning to announce the final result on August 22. If selected, ACV and Vietur will proceed with negotiations over a construction contract.

The Vietur consortium has 10 members, including IC ISTAS , Newtecons, Ricons and SOL E&C.

Workers struggle with falling pay

The majority of workers are grappling with growing difficulties in covering their basic needs with their current incomes, according to a recent report.

The report, focused on employment, wage, expenditure and life quality of workers in 2023, showed that some groups of workers are earning a mere 45% of what is essential for meeting their basic expenses.

It was conducted by the Institute for Workers and Trade Unions (IWTU) at the Vietnam General Confederation of Labor, surveying nearly 3,000 workers and 157 enterprises in Phu Tho, Binh Duong, An Giang, Haiphong City, HCMC, and Hanoi City.

Over half of the respondents are putting in an average of 1.75 extra hours of work daily. This added effort is largely driven by the necessity to bolster their incomes and enhance their quality of life.

The survey delved into the financial landscape of these workers, revealing concerning statistics. A mere 8.1% can save from their incomes, underscoring the widespread struggle to build a financial cushion. In contrast, 11.2% find it impossible to make ends meet solely with their existing earnings, prompting them to take on additional jobs for supplementary income.

Another alarming issue surfaced from the survey: workers’ dependence on borrowing. About 17.3% of workers reported frequent borrowing, causing financial instability. Roughly 3.1% of respondents shared that they faced threats from lenders, while 45.2% were anxious about their financial vulnerability.

The survey’s findings reflect not only workers’ hardships but also the broader economic challenges faced by businesses.

In comparison to 2022, employees in Vietnam have come under greater pressure this year. The difficulties encountered by businesses due to a fall in new orders have had a ripple effect on employment, earnings, and the quality of life for workers, said Pham Thi Thu Lan, deputy head of IWTU.

While the prices of essential goods such as utilities, food, and housing have risen, pay has remained stagnant, exacerbating these woes.

Expenses have surged by 19% compared to 2022, averaging nearly VND12 million per month. The majority of these expenses, about 70%, went toward food and other necessities.

Participating companies in the survey reduced their workforce by 10% against 2022.

Within these firms, 23.4% have eliminated hazardous and training allowances when determining the minimum regional wage. Most have adjusted this wage based on governmental decrees. However, around 10.1% continue to undercut the minimum wage by over 6%.

Nguyen Thai Duong, deputy president of the Vietnam Textile and Garment Trade Union, emphasized the union’s priority of securing employment opportunities and increasing incomes for workers, yet the reality is less optimistic. The textile and garment sector saw exports slipping a staggering 20% in the first half of the year, equivalent to a loss of nearly US$4 billion.

A billion U.S. dollars in exports sustain 150,000 jobs within this sector. Thus, the substantial decrease in export orders has directly impacted over 600,000 workers.

There are varying reasons for this downturn, such as a significant shift in orders to other countries and intense price competition. Processing fees plummeted by over 30% during the first six months of the year.

The shortage of orders may linger until next year, with 17.2% of surveyed businesses indicating a heightened lack of orders over this year.

Toll fees to rise on two expressways

The Vietnam Expressway Corporation (VEC) will hike toll fees on heavy-duty trucks on the Cau Gie-Ninh Binh and HCMC-Long Thanh-Dau Giay expressways, starting September 1.

The fee hike will affect trucks weighing 10 tons or above, and container trucks.

For the Cau Gie-Ninh Binh expressway, tolls for group-4 vehicles, which consist of trucks of 10 tons to less than 18 tons and those carrying 20-feet shipping containers, will increase from VND88,000 to VND108,000 for the longest stretch between Liem Tuyen Commune and Cao Bo Commune.

Group-5 vehicles, which are trucks of more than 18 tons and those transporting 40-feet shipping containers, will pay VND173,000 instead of the current VND133,000 if they use the full route. Similar hikes will be applied to shorter distances.

On the HCMC-Long Thanh-Dau Giay expressway, the longest segment between Long Phuoc Commune and Dau Giay Townlet will incur a fee of VND250,000 for group-4 trucks, up from VND236,000. Group-5 trucks covering the complete route will be charged VND400,000, up from the current VND373,000.

VEC has clarified that these toll fee adjustments are aligned with Government Resolution 35/2016, designed to support business development until 2020. The corporation has been offering a toll discount of 20% for group-4 vehicles and 25% for group-5 vehicles on these routes since 2016 as per this resolution.

However, VEC sees the fee discount as no longer appropriate due to its debt repayment plan already approved by the Ministry of Transport.

Scientific-technological activities should receive better financial aid: expert

More financial support is needed to promote the implementation of scientific-technological research results. This can be done via both public and private funds like NAFOSTED, NATIF and VINIF. 

Launched in 2018, Vingroup Innovation Foundation (VINIF) aims at supporting young scientists in universities and academies to conduct their innovative scientific-technological research. It has spent nearly VND800 billion (US$33.7 million) on over 100 projects, 6 master-level training programs, nearly 1,200 scholarships for postgraduates at master’s, doctorate, and post-doctorate levels.

After five years, VINIF has contributed to the success of thousands of scientific projects published on prestigious journals in the world, the release of 400 new products and 70 inventions, the establishment of 20 startups and spinoffs.

Dr. Nguyen Quan – former Minister of Science and Technology – stated that scientific-technological funds are a critical helping hand for scientists to carry out their research.

In 2003, the Science and Technology Ministry proposed the establishment of the National Foundation for Science and Technology Development (NAFOSTED) to the Government. The Foundation formally came into operation in 2008. In 10 years, it was able to help scientists in basic sciences to introduce a series of useful products, while increasing the number of international publications by Vietnamese scientists by 20-30 percent a year.

Following that was the forming of the National Technology Innovation Foundation (NATIF) from the proposal of the Science and Technology Ministry, aiming at supporting businesses to launch their own technology upgrade projects. sadly, this Foundation does not live up to its expectation because the financial mechanism does not guarantee the risks of scientific and technological research.

Dr. Quan suggested that it is necessary to address mechanism-related issues when financializing scientific-technological projects. when scientists complete their ideas, which are then approved by competent agencies, these researchers should receive financial aid to pilot their research results in reality.

He added that many developed countries have applied this procedure and reaped success. VINIF is following this, and also achieved many outstanding results. This Foundation should become the model for other public units and universities to consider and copy when establishing new investment funds for scientific-technological activities in the future.

Phan Thiet - Dau Giay expressway project gets errors in land recovery, leveling

The Dong Nai Provincial People's Committee has just announced the conclusion on the recovery of materials used in leveling at the Phan Thiet - Dau Giay expressway project.

Accordingly, Thang Long Project Management Board - the project’s investor and the contractor joint venture Vinaconex - Trung Chinh had to renovate agricultural land and perform land recovery in communes of Xuan Hung and Suoi Cat in Xuan Loc District outside the project, cross exterior elevations and dimensions, build vertical walls that were not by the approved plan which is considered to be a serious violation.

Therefore, the People's Committee of Dong Nai Province requested the Thang Long Project Management Board and the joint venture Vinaconex - Trung Chinh to urgently overcome the shortcomings, strictly comply with the direction of the Dong Nai Provincial People's Committee to avoid any arising mistakes.

The Xuan Loc District People's Committee was assigned to direct the district police and specialized sectors to check the current status and handle administrative violations for the minerals and environment in Xuan Hung Commune.

Besides, the Department of Natural Resources and Environment will work with functional units involved in measuring, determining the extent of violations, consultancy and proposing strict handling according to regulations before August 25.

More firms selected for Green Enterprises award

The organizing committee of the Green Enterprises award will receive more participants.

At yesterday’s meeting of the Program Appraisal Council of the Green Enterprise award, Deputy Editor-in-Chief of SGGP Newspaper cum Head of the program organizing committee Pham Van Truong said the council members agreed to select more firms for the award.

Accordingly, in addition to selecting manufacturing enterprises, the organizing committee will receive and consider awarding the title of Green Enterprise to enterprises operating in the fields of business, services, commerce and real estate.

The council recommended that businesses registering for the award need to meet the following criteria including treating all wastewater generated during production activities up to environmental standards; handling dust, exhaust gas, bad smell and sound to meet environmental standards; collecting and treating industrial and hazardous solid waste or signing contracts sanitation companies to collect garbage. Moreover, entrants to the award selection program must adopt technological solutions to save energy or use renewable energy.

The organizers will have a set of appropriate criteria for a specific field of activities.

Earlier, at the announcement ceremony of the program to select and award the title of Green Enterprise, Mr. Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association, said that the selection of the award aims to honor and reward enterprises to comply with regulations on waste treatment in the process of production and business.

Moreover, the award also encourages firms to carry out research and production of environmentally friendly products in a bid to strengthen enterprises’ responsibility for protecting the environment with the orientation to support businesses to improve their competitiveness and integration into the international economy.

The program to select and award the title of Green Enterprise is organized by SGGP newspaper in collaboration with the Ho Chi Minh City Business Association and periodically awards the title in September every year.

Localities seek consistent fire regulations

Business associations are demanding consistent regulations relating to fire prevention and safety, with the current confusion threatening to dent investor confidence. 
 
At a working session on August 1 with the supervisory delegation of the National Assembly Committee for National Defence and Security to review policies on fire prevention, Vice Chairman of Binh Duong People’s Committee Nguyen Van Danh said the current provisions of the law are not synchronised with amendments of legal documents on this issue.

“One of the most common problems is the procedure to get an appraisal certificate for fire-fighting equipment at facilities. Inconsistent regulations confuse manufacturers during the construction and operation of their factories,” Danh said. “Binh Duong requires more specific regulations via implementing April’s official dispatch on solving issues around fire prevention.”

Danh also proposed a specific mechanism for localities in the southeast region to flexibly apply regulations, creating improvements to encourage businesses to foster their investment in the province.

In a meeting with Binh Duong officials in March, Edward Lewin, vice president of Lego Group, hoped that the province would continue to support the completion of procedures for granting a construction permit because it had not been approved for fire prevention.

The province sent documents to the Ministry of Public Security (MoPS) to speed up the progress of fire prevention and appraisal and, as a result, Lego received the appraisal certificate and the construction permit for its $1.3 billion factory in the southern province in April.

However, other foreign-invested enterprises (FIEs) are not so lucky and remain frustrated over current fire prevention regulations.

At a workshop on trade and investment between South Korea and Vietnam in May, Hong Sun, chairman of the Korean Chamber of Commerce in Vietnam (KoCham) repeated the barriers in getting the appraisal certificate for fire prevention.

“Many member companies have sent documents to KoCham to express their concern. They reported that problems arise when they build new factories or expand their operation, at which the new regulations on fire prevention and safety are tightened and conflict with the licences for their existing facilities. As a result, many facilities can’t be used due to these conflicts,” Sun said.

He has expressed the same concern over fire prevention and safety at many forums, in particular in a meeting between Prime Minister Pham Minh Chinh and FIEs in April, and the Vietnam Business Forum in May.

According to KoCham members, some have invested large amounts to complete fire protection systems for their facilities to comply with all regulations, but after construction ended, appraisals were still not approved. They added that many functions overlap, and some works just need certificates granted by local authorities, but they are still required to be inspected by both the MoPS and the Ministry of Construction (MoC).

The Vietnam Association of Seafood Exporters and Producers and the Vietnam Logistics Business Association have also voiced the same concerns.

In the context that standards and regulations on fire prevention and control are bottlenecks for the business community, PM Chinh signed the aforementioned dispatch in April which stated that construction works and business units that have difficulties with fire prevention facilities will be classified specifically.

After the dispatch was published, the MoC began studying, reviewing, and amending criteria for fire safety for buildings and constructions to correspond with recent tech advances without wasting social capital.

Tran De Port project seen facilitating trade in Mekong Delta

The Tran De Port project in the Mekong Delta province of Soc Trang is poised to revolutionize Vietnam’s foreign trade by streamlining cargo transportation and cutting logistical costs.

The port’s strategic location is set to draw cargo from both within the Mekong Delta and neighboring Cambodia, said Le Tan Dat, deputy general director of Construction Consultation JSC for Maritime Building (CMB), at an August 7 conference titled “Investment in Tran De Port in Soc Trang Province.”

Leveraging the Mekong River’s inland waterways, Tran De Port offers a more efficient transportation option compared to existing alternatives.

This advantage becomes apparent when comparing distances. The route from Phnom Penh to Tran De Port is only 306 kilometers long, shorter than the routes of Cai Mep-Thi Vai Port in Ba Ria-Vung Tau Province (384 kilometers) and Cat Lai Port in HCMC (346 kilometers).

 The illustration depicts the shorter distance from Phnom Penh to Tran De Port compared to the routes from Phnom Penh to Cai Mep-Thi Vai Port in Ba Ria-Vung Tau Province and to Cat Lai Port in HCMC – PHOTO: CMB
Such distance reduction translates into tangible savings of time, resources, and costs for businesses engaged in international trade, Dat said.

Moreover, Tran De Port is poised to optimize coal imports for the Mekong Delta’s thermal power plants, such as the Long Phu and Song Hau thermal power plants.

The development plan for Tran De Port envisions robust cargo throughput, with annual cargo volumes projected between 30.7 and 41 million tons. Off-shore terminals can handle a significant portion of this, ranging from 24 to 32 million tons. The container segment is forecasted to be between 11.6 and 16.3 million tons.

However, the strategic importance of Tran De Port goes beyond cargo quantity; it lies in connectivity. Experts emphasize that the port can become a vital node in global trade routes, optimizing cargo flows and diversifying trade pathways, thereby bolstering Vietnam’s global competitiveness.

During the conference, Tran Van Lau, chairman of the People’s Committee of Soc Trang, underscored the Mekong Delta’s pivotal role in the nation’s agricultural goods supply, particularly rice, shrimp, tra fish and fruit.

He noted the region’s current infrastructure inefficiencies, with 70% of goods requiring road transport to reach HCMC ports due to the lack of direct waterway access. This results in higher transport costs, longer transit time and compromised product quality.

From a corporate perspective, Pham Thai Binh, general director of Trung An Hi-Tech Farming JSC, pointed out operational hurdles. The company exports around 200,000 tons of rice annually, but a significant portion of this exported rice takes a detour to riverside ports in the Mekong Delta region before being transported to HCMC for further global export.

Furthermore, a substantial seven million tons of Vietnam’s annual rice exports are directed to HCMC before onward shipping. This elongated route significantly inflates transportation costs, thereby significantly impacting the overall expenses of exported goods.

Hence, Tran De Port holds substantial potential to dramatically reduce costs for both businesses and residents of the Mekong Delta. Rice transportation costs could potentially drop 40% or even 50% for other commodities like fruits, said Binh.

The implications extend to the seafood industry as well. Ho Quoc Luc, chairman of Sao Ta Food JSC, a seafood producer and exporter, pointed out that transporting seafood products from the Mekong Delta to ports in HCMC and Ba Ria-Vung Tau Province adds a significant extra cost of around US$700 per 40-foot container for a round-trip journey.

For Sao Ta Company, which annually exports around 1,500 40-foot refrigerated containers, this translates to at least VND15 billion in additional transportation expenses due to the need to transport goods to the southeastern region of the country before export.

Agricultural trade ties garner a boost

Vietnam and Singapore are intensifying ties in the agricultural, aquatic, and foodstuff sector in a bid to expand bilateral trade.

Olam Global Agri Vietnam Co., Ltd, a Singaporean-invested buyer, processor, and exporter of rice in Vietnam, is hiring more labourers to strengthen its operation in the country.

“We started the aquafeed business in early 2023 in Vietnam, marking our entry into Asia’s integrated feed and protein space - one of the fastest growing markets in the world. We are targeting selected fish species with world-class product quality and technology. We work closely with farms, offering them support throughout the fish’s growth cycle from our trained teams of aqua farmers, nutrition managers, and technical services,” said an Olam representative.

This company is one of the largest rice merchants in Vietnam and a player in sustainable rice cultivation. It sources and supplies high-quality Vietnamese rice to over 20 countries, including Singapore, through its well-established supply chains - from sales to storage and distribution.

The Vietnam Trade Office in Singapore is working with FairPrice, a reputable Singaporean retailer, to bring more high-quality Vietnamese products to consumers, such peppercorn, fish, rice, vegetables, coffee, cashews, and rubber. Along with FairPrice, the office has also partnered with other supermarket chains in Singapore to tap the cooperation potential between the two sides in farm produce.

It is estimated that more than 600 kinds of Vietnamese agricultural products have been available on the shelves of the FairPrice supermarket chain.

Irving Lim Wei Lun, a representative of FairPrice, said that Singaporean consumers tend to prefer Vietnamese products, and have high demand for tropical fruits such as dragon fruit, coconut, and mango. Thus, to go deeply into this market, domestic businesses and exporters need to ensure the stability, quality and safety of their products.

“We still follow the supply chain from Vietnam to look for new products to show on the shelves of FairPrice. Thus, Vietnamese businesses and exporters should directly arrive in Singapore to discuss and study the local demand,” he said.

The close connection between the Vietnam Trade Office in Singapore and FairPrice is one of the results of the MoU signed between the two countries in February 2022.

According to the MoU, the two sides would develop activities for 2023, including deepening agri-trade cooperation through business matchmaking and facilitating Singaporean companies to invest in Vietnam’s agriculture and logistics sectors.

According to Vietnam’s Ministry of Industry and Trade (MoIT), the country has strengths to promote exports such as rice, vegetables, fruits, and aquatic products.

In addition to products currently available at Singapore’s supermarket systems such as lychee, sapodilla, and passion fruit, Singapore is also interested in star apple, longan, custard apple, leafy green vegetables, okra, squash, and cucumbers.

The Singaporean market is also interested in high-quality seafood such as crayfish, lobster, grouper, and processed seafood.

Vietnam is the fourth-largest seafood exporter to Singapore, accounting for 12 per cent of Singapore’s total seafood imports from overseas partners. Vietnam’s frozen fish fillets and processed fish always maintain a market share of over 20 per cent in the city-state.

In a specific case, Vietnamese-backed TH Group is boosting its foodstuff products to Singapore. In March 2022, TH and HAO Mart, a leading retail supermarket system in Singapore, signed an MoU on strategic cooperation on consuming and promoting TH’s fresh milk products, foodstuffs, and organic agricultural products in the Singaporean market.

TH has also cooperated with distributor L’earth Group to expand its markets to both Singapore and Malaysia. Both groups once launched a Singapore-Vietnam foodstuff exchange, applicable to e-commerce platforms, retail stores, and supermarkets in both countries.

According to the MoIT, in the first half of this year, the total import-export turnover between the two countries was $2.06 billion. In June only, the bilateral import-export value was $370 million.

The room for this market is large because Singapore has plans to diversify the import markets to avoid dependence on agricultural products from China and Malaysia, according to the Singapore Food Agency.

South Korean Dongwha Pharm buys majority stake in Vietnam's Trung Son Pharma

The retail pharmaceutical landscape in Vietnam is poised for further heating up as Dongwha Pharm, a South Korean conglomerate, joins the fray.
 
On August 3, South Korean firm Dongwha Pharm announced the acquisition of a 51 per cent stake in Trung Son Pharma, a company that operates a chain of pharmacies in Vietnam, as reported by Business Korea.

In a filing with the Korean Stock Exchange, Dongwha Pharm disclosed that it spent nearly $30 million to acquire 51 per cent of Trung Son Pharma, equivalent to over 12.15 million shares. The deal is expected to be completed by October this year.

Established in 1997, Trung Son Pharma operates more than 140 pharmacies primarily in the southern region, with the highest concentration of 45 stores in Can Tho city. Last year, the company reported a revenue of $56.5 million, generated from the sale of prescription and non-prescription drugs, functional foods, cosmetics, and medical equipment.

The acquisition will provide Dongwha Pharm with an entry point into the Vietnamese market for over-the-counter drugs. The company also plans to sell cosmetics and functional foods beneficial to health.

According to its information, Dongwha Pharm, the first established pharmaceutical company in Korea founded in 1897, has been engaged in development, production, distribution and marketing of ethical drugs including solid dosage formulations and sterile injectables, over-the-counter drugs, food supplements, healthcare products, and cosmetics.

The South Korean conglomerate anticipates that following the acquisition, Trung Son Pharma may expand its network to 460 stores by 2026.

According to market research firm BMI, Vietnam's retail pharmaceutical market is highly fragmented, with over 50,000 pharmacies that are mostly small-scale businesses. The market is forecasted to grow from $7.7 billion in 2021 to $16.1billion by 2026. However, the actual figure could be significantly higher.

By 2030, the total value of Vietnam's pharmaceutical market is predicted to rise to around $13 billion. In 2022, the average per capita drug spending reached about $75.

In this market, there are three leading chains: Long Chau, Pharmacity, and An Khang, according to a report from ACB Securities. While Long Chau turned a profit in 2021, the other two chains have yet to do so.

Businesses in HCMC asked to increase rice in stock amid soaring prices

Rice prices are climbing in the country; so, the Ho Chi Minh City Department of Industry and Trade (DoIT) requested domestic rice exporters and suppliers to increase rice in stock for domestic consumption and exports.

The Ho Chi Minh City Department of Industry and Trade yesterday sent an official letter requesting domestic rice exporters and suppliers to actively increase rice in reserve to avoid the risk of scarcity of rice supply in the market.

Deputy Director of Ho Chi Minh City Department of Industry and Trade Nguyen Nguyen Phuong said that the department has requested exporters of rice to comply with regulations on rice purchase to ensure a balance between export and domestic consumption as well as maintain the level of reserve and circulation in accordance with regulations in rice export business.

Apart from that, enterprises that are subsidized for stabilizing rice prices in the market must comply with the city’s regulations in the market stabilization program. At the same time, they ought to have a plan to proactively deploy purchasing, stockpiling, ensuring enough amount of rice and exceeding the registered quantity in all situations. They must guarantee to provide high-quality rice.

According to Mr. Phuong, recent complicated developments in the market when many countries have banned rice exports have triggered the issuance of the aforementioned regulations. Countries’ bans of rice export has caused a sudden increase in the demand for rice exports; consequently, retail prices of the staple food in the country have jacked up.

Currently, the Department of Industry and Trade of Ho Chi Minh City also recommended that businesses need to purchase and deliver goods according to a reasonable schedule to ensure supply for the market while still maintaining adequate stock of goods to supply the market. Businesses were required to strengthen the inspection and control of their stores and affiliated distribution networks whether shop assistants fully comply with the provisions of the program on business activities and sell rice according to listed prices.

Modern distribution systems are necessary to forecast market demand and have a plan to purchase, reserve and promptly supply rice to serve the market in all situations. In addition, enterprises providing subsidized commodities and rice suppliers should liaise on rice distribution contracts for a long-term and stable delivery plan.

In the coming time, authorities in districts and Thu Duc City will strengthen inspection to ensure that the staple food is sold as per listed prices publicly. On the other hand, administrations will keep a close eye on market development and rice prices within their jurisdiction to have measures against commodity scarcity.

Ministry encourages breeders to increase aqua-farming

In the context that breeders across the country stopped raising aquaculture due to difficulties in export, the Ministry of Agriculture and Rural Development suggested local administrations encourage farmers to increase farming.
 
Deputy Minister of Agriculture and Rural Development Phung Duc Tien yesterday signed an official letter No. 5386 requesting municipal and provincial people's committees to increase the raising of water animals such as fish for food in the last months of 2023 to ensure the aquaculture production plan.

According to Deputy Minister Phung Duc Tien, the seafood industry has advantages and challenges with the most difficulties coming from the export market. Fishery output in the first 6 months was estimated at 4.27 million tons, reaching 47.2 percent of the plan while seafood export value was estimated at US$4.13 billion, down 27.4 percent over the same period in 2022.

According to the Ministry of Agriculture and Rural Development, the current price of seafood is still low resulting in small profit; thus, breeders are in a wait-and-see mood, leading to the possibility of raw materials shortage for seafood processing and export, affecting the growth plan in 2023.

For the stable development of the aquaculture industry in the last months of 2023 meeting the demand of raw materials in both quantity and quality for processing and export, the Ministry of Agriculture and Rural Development proposed localities encourage owners of large-scale farms to promote the marine aquaculture with the focus on high economic value species.

In addition, areas of ecological and organic farming, rice shrimp, and wild shrimp should be maintained while extensive farming in combination with measures to increase productivity and production in these areas should be improved to promote the breeding of black tiger shrimps and white-legged shrimp farming in areas with good infrastructure conditions and good control of production phases.

The Ministry of Agriculture and Rural Development also proposed to focus on developing the pangasius chain from the hatchling stage, feeding to commercial farming. Breeders should raise aquaculture offshore.

Last but not least, breeders should conduct cost-saving approaches in aquaculture including the application of advanced techniques at all stages in the farming process to increase survival rate, reduce feed coefficient (FCR) in addition to production linkages to reduce intermediaries so that farmers can use input materials such as seeds, feed, products for the environmental treatment of aquaculture with lowest prices.11000011000

Viet Nam's electric vehicle ownership will see 'strong growth' in 2023: CNBC

Viet Nam’s electric vehicle (EV) adoption is expected to increase to 13.6 percent in 2023, from 2.9 percent a year ago, said American business news channel and website CNBC in its article.

Viet Nam's EV market appears poised for rapid expansion in the next decade, but there could be significant headwinds blunting that growth.

According to BMI Research, a Fitch Solutions research unit, passenger EV sales in the country is expected to at least double this year.

"In 2023, we expect passenger EV sales to expand by 114.8 percent year-on-year to reach around 18,000 units," said BMI's report published Thursday.

Specifically, sales for battery electric vehicle (BEV) could surge by 104.4 percent compared to the previous year to nearly 17,000 units, the report said. Plug-in hybrid vehicle, or PHEV, could jump nine-fold year-over-year to almost 1,100 units.

"We currently expect passenger EV sales in Viet Nam to average annual growth of 25.8 percent over 2023-2032 to reach an annual sales volume of around 65,000 units, up from 8,400 units in 2022," said BMI.

The Viet Nam Automobile Manufacturers Association predicts that EV ownership will reach 1 million by 2028, and 3.5 million units by 2040.

However, a strong EV growth is expected to be fueled by increased deliveries of VinFast vehicles as the local EV maker steps up production throughout 2023.

Viet Nam's passenger EV market is currently dominated by VinFast, which holds more than 50 percent market share in 2022, said BMI. 

The research firm pointed out that increased EV production in ASEAN comprising of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam-to boost growth.

In January, Viet Nam's government said it will continue to exempt import tax on completely built-ups cars from the 10-member bloc until the end of 2027.

Viet Nam's Automobile Industry Development Strategy until 2025 with a vision to 2035 clarified that Viet Nam encourages the development of environmentally friendly vehicles that meet requirements in emission standards in line with the roadmap approved by the Prime Minister.

Under a Decree recently issued by the Government, battery-powered electric cars are to be exempt from the registration fee for three years, starting from March 2022. 

The National Assembly also agreed to reduce the excise tax placed on electric cars in an attempt to encourage greater investment in developing battery powered electric cars, thereby contributing to reducing environmental pollution from vehicle emissions.

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