Ho Chi Minh City led the nation in terms of revenue from tourism in the first half of 2023, with 80.8 trillion VND (3.39 billion USD).

The figure represents a year-on-year rise of 62.7%, and is equivalent to 50.5% of the yearly target.

According to the municipal Department of Tourism, in the January-June period, the country's biggest metropolis served over 1.9 million foreign tourists, up 306% year-on-year, but equal to only 38.8% of the yearly target.

The city is organising a wide range of activities, with an aim to attract more tourists, especially foreigners, to increase the revenue.

Notably, in early August, a river festival was held in the city for the first time, with a series of cultural and entertainment activities related to its waterways for locals and tourists.

The three-day festival aimed at preserving and promoting the city’s culture and history, and make use of its waterways to boost the economy and tourism in order to build the city’s brand as a culturally rich riverside urban area.

Recently, the municipal People’s Committee also issued a plan for the development of waterway tourism products in the 2023-2025 period. By 2025, it aims to develop at least 10 waterway tours and waterway tour programmes linking seaports and river routes.

The number of international cruise ship tourists arriving in the city will be 100,000 in 2023 and 2024, and rise 12-15% in the following years.

In the 2023-24 period, the city’s cruise industry is expected to hit 500 billion VND (21 million USD) per year in revenue, and increase by 12% in the following years.

Vietnam an emerging tourist destination in Southeast Asia: Cambodian media

Cambodia’s e-newspaper ThmeyThmey on August 14 ran an article calling Vietnam a new tourist hot spot in Southeast Asia.

The article, by Thun Senghong, cited statistics by Google Destination Insights showing Vietnam was the seventh most searched destination from March to June this year, and the only country in the region to make the top 20.

The country’s tourism strengths lie with diverse landscapes, which have helped it welcome more than 5.5 million international visitors in the first half of this year, higher than the total number of foreign tourists recorded the whole last year.

Vietnam expects to serve 8 million holidaymakers this year, yet the figure is projected to exceed 10 million, the article said.

It cited Director of Rustic Hospitality Group Bobby Nguyen as saying that most of the tourists hail from the Republic of Korea (RoK), China, and India.

Germany’s DW News said Vietnam’s tourism strengths come from its relaxed visa policy as from August 15, the country will extend the validity of tourist e-visas to 90 from 30 days, with multiple entries, and triple the duration of visa-free stays for visitors from certain countries to 45 days, according to the article.

The article also quoted some foreign experts as saying the visa policy is expected to give a boost to the domestic tourism industry.

Despite the rosy signs, the number of foreign arrivals has yet to meet the 2019 pre-pandemic figure of nearly 19 million, it noted.

Experts suggested Vietnam enhance coordination between ministries and agencies, upgrade its transport infrastructure and pay more attention to personnel training to improve its competitiveness in the sector, according to the article.

Policy rate cuts boosting stock prices: VinaCapital

The stock market recovery, which has been driven by lower interest rates in 2023, is likely to be sustained by higher earnings and attractive valuations in 2023, according to Michael Kokalari, chief economist at VinaCapital.

In a recent note, he said the State Bank of Vietnam had cut policy interest rates four times this year -- the refinancing rate by 150 basis points to 4.5% -- in stark contrast to its US counterpart, which has hiked rates four times, by 100bps to 5.5%.

It also took other measures to boost growth, which fell to just 3.7% in the first half of this year from 6.4% a year earlier.

These policy rate cuts prompted banks to lower their deposit and lending rates, which helped boost the VN-Index by over 20% for the year as of August 8.

“We expect a sharp recovery in both GDP growth and earnings growth next year to propel stock prices even higher. That said, we do not expect the SBV’s monetary easing will have much of an impact on 2023 GDP growth because banks are currently hesitant to extend loans, and because higher interest rates are not the main source of Việt Nam’s slow economy this year.”

The aggressive policy rate cuts come at a time when the US and the EU are still raising interest rates.

A widening gap between interest rates in Vietnam and in the US has put some depreciation pressure on the USD-VND exchange rate, but that depreciation pressure has been mitigated by a stunning improvement in the country’s trade surplus from zero in 2022 to 6% of GDP in 2023, according to the economist.

This surplus, coupled with FDI inflows of over 4% of GDP in the first seven months, helped support the đồng, enabling the SBV to cut interest rates while maintaining a remarkably stable exchange rate.

Impact of lower rates on stock, property markets.

The VN-Index is up because people have been taking money out of banks and ploughing it into the stock market as their six-month deposits mature and because the market was oversold last year.

The increase has been driven by a 30% surge in bank share prices and a 20% increase in the prices of real estate stocks.

The heavy weighting of these sectors in the VN-Index (at 35% and 18% respectively) means the increase in their share prices drove over two-thirds of the increase in the index.

“The improvement in sentiment towards bank share prices stems from investors’ reduced concerns about asset quality issues and expectations for higher credit growth in H2, prompted by lower interest rates," the economist said.

“But it is important to note that declines in lending rates by banks are not uniform, especially given the liquidity issues mentioned above, which are particularly acute at some smaller banks.”

Lower interest rates boosted sentiment in the real estate market, where transactions are starting to pick up again, partly because mortgage rates dropped by more than 50bps at many banks over the last month.

“We expect another 50-100bp decline in mortgage rates over the next six to 12 months and note that the improved sentiment in the real estate market has, not surprisingly, boosted the sentiment towards major real estate stocks as well as towards the beneficiaries of higher real estate development activity (construction companies, steel companies, etc.).

“Finally, we expect a sharp pick-up in earnings growth in 2024, which means that the stock market recovery, which has been driven by lower interest rates in 2023, will likely be sustained by higher earnings in 2023, as well as by the market’s current, attractive valuations.

“The VN-Index’s FY23 P/E ratio is currently 30% below its average over the last five years, and more than 10% below that of Vietnam’s regional peers.”

Vietnam’s automobile sales slightly grow in July

Members of the Vietnam Automobile Manufacturers Association (VAMA) sold 24,687 vehicles in July, up 4% month-on-month, VAMA reported on August 14.

Meanwhile, the June figure was 23,800, up 15% from the previous month.

Of the vehicles sold last month, there were 19,221 passenger cars, up 11%; 5,318 commercial vehicles, down 16%; and 148 special-use vehicles, up 21% month-on-month.

In terms of vehicle origin, the sales of domestically-assembled automobiles reached 13,575 units, down 12%, while the number of imported completely built-up (CBU) ones was 11,112, up 34%.

In the first seven months of this year, VAMA members sold a total of 162,014 vehicles of all kinds, down 30% annually, with the sales of passenger cars, commercial and special-use vehicles dropping by 34%, 13%, and 63%, respectively.

According to experts, besides VAMA member units, the Vietnamese auto market also includes other automakers such as Audi, Jaguar Land Rover, Mercedes-Benz, Nissan, Subaru, Volkswagen, and Volvo, but they do not disclose business results.

Meanwhile, Thanh Cong Group (TC Group) announced its sales of 4,035 units in July, bringing its six-month sales to 14,680 units; while the respective figures for VinFast were 3,042 and 14,680.

Based on the sales reports from VAMA, TC Group and VinFast, Hyundai continued to lead the market in July with 4,035 vehicles, despite a month-on-month decrease of 21%. It was followed by Toyota, KIA, Mitsubishi and Ford. 

The Vietnamese auto market is forecast to continue growing from August until the end of this year, thanks to the policy of reducing registration fee by half. However, purchasing power might not experience the same rapid growth as last year due to the influence of the stock, real estate and consumer lending markets which are yet to fully recover as it did last year.

Vietnamese, Taiwanese firms seal project development deal

The Dai Phong infrastructure construction company of Vietnam and JiaWei Corporation from Taiwan (China) signed a project development agreement at a ceremony in the northern province of Nam Dinh on August 14.

Accordingly, JiaWei plans to invest in Dai Phong’s My Thuan industrial park located in Nam Dinh. Covering an area of 85,764 square metres, the JiaWei Vietnam plant project is set to design and manufacture products from environmentally friendly materials.

The construction of related workshops and offices will begin this September, toward an official operation by the end of 2024. The facility is expected to provide jobs for approximately 1,000 workers in its initial phase.

Speaking at the ceremony, Chairman of the provincial People's Committee Pham Dinh Nghi affirmed that this project marks the continuation of positive results in the local investment attraction work, especially regarding high-tech and environmentally friendly sectors.

The authorities are committed to providing the most favourable conditions for and supporting the investor in addressing difficulties involving legal procedures during its construction, operation, and management of the project, he stressed.

Workshop: Halal industry promising in Vietnam

A scientific workshop on Islamic culture and the prospects of Halal industry in Vietnam was held in Hanoi on August 14.

The event was co-hosted by the Institute for African and Middle East Studies (IAMES) and the Institute for Religious Studies (IRS) under the Vietnam Academy of Social Sciences.

Speaking at the event, IAMES General Director Asso. Prof Le Phuoc Minh said the event not only popularises knowledge about Islamic culture, including customs, traditions, and taboos in the lives of the Muslim communities in the world and Vietnam but also raises public awareness of the Halal industry among Vietnamese policymakers, managers, researchers, businesses and people, thus opening up opportunities for Vietnam to engage in the global Halal value chain, diversify its export markets, attract Muslim tourists and substantial investment from Muslim-majority nations worldwide while strengthening cooperative ties between Vietnam and 57 member countries of the Organisation of Islamic Cooperation (OIC).

IRS Director Asso. Prof Chu Thanh Tuan said the Muslim community groups over 32,000 followers in 14 Vietnamese cities and provinces. Vietnam only has about 20 export items to the Halal market, which is a remarkably low number. As much as 40% of Vietnamese localities lack certified Halal export products.

 Illustrative Image (Photo: VNA)
In mid-2021, the IAMES was the first State agency to set up a research taskforce known as the Vietnam Halal Centre of Excellence (Vietnam Halal COE) whose efforts have been recognised by the embassies of African and Middle East countries, the Foreign Ministry, ministries and agencies.

The IMAES is also continuing its research and utilisation of its staff resources, collaborating with regional and international research institutes to contribute to the development of the Halal industry in Vietnam.

Vietnam, UAE advised to tap logistics cooperation potential

Effective logistics cooperation with the UAE will play a significant role in promoting Vietnam's trade exchange with the Middle East and other regions around the world, Director of the Ministry of Industry and Trade’s Asian-African Market Department Tran Quang Huy said at a workshop in Hanoi on August 14.

The workshop on exploring the potential for such collaboration between the two countries was co-organised by the ministry and the World Logistics Passport (WLP) – a global initiative led by Dubai – amidst the sides’ celebration of their 30th anniversary of diplomatic relations.

At the event, UAE Ambassador to Vietnam Bader Abdulla Al Matrooshi highlighted that the UAE is Vietnam's largest export market in the Middle East, while Vietnam ranks among the top 10 largest import partners of the UAE globally. Between 2018 and 2022, their bilateral trade was kept at 5 billion USD annually, accounting for about 25% of the total import-export turnover between Vietnam and the Middle East.

Manager of the WLP Global Hubs and Partners Abdulla Alsuwaidi assessed that Vietnam, strategically positioned as a transit and production centre in Southeast Asia, will be an important Hub within the WLP network. The WLP has added the nation to its list of logistics and trade hubs in the region, referred to as Hubs.

The workshop saw the signing of cooperation agreements between the WLP and nine Vietnamese business partners.

Huy expressed his hope that through collaboration activities with the WLP, Vietnamese firms and organisations will gain significant benefits in cargo transport and logistics and expand operations, serving better competitiveness of Vietnam's import-export goods and services.

The WLP is a global, private sector-led, initiative designed to smooth the flow of global trade, unlock market access through the creation of new trade routes and provide economic efficiencies to members. To date, 29 countries have registered to participate in the network.

USD/VND exchange rate keeps stable despite SBV’s different policies

Despite the difference in policies of the State Bank of Vietnam (SBV) and the US Federal Reserve (Fed), the USD/VND exchange rate has remained stable to date thanks to a trade surplus and a bright economic outlook of Vietnam in the second half of 2023, experts said.

According to the Maybank Securities Company (MBKE), there were concerns that the SBV would face big challenges when cutting interest rates drastically while the Fed has still maintained a cautious policy. The contrast in policies between the Fed and the SBV could put pressure on the exchange rate.

However, the concern has not materialised and the USD/VND exchange rate has stayed stable so far. The rate was mostly unchanged in the first seven months of this year after the SBV lowered interest rates four times, totaling from 1.25 percentage points to 1.5 percentage points for discount and refinancing rates. At that time, the Fed tightened the rates four times, raising interest rates by 1 percentage point.

MBKE analysts attributed the stability of the exchange rate to Vietnam’s trade surplus of 15 billion USD in the first seven months of 2023 and a brighter economic outlook in the second half of 2023 and in 2024.

In the short term, the Government is giving more priority to economic recovery. Therefore, MBKE believes the SBV will continue to maintain the loose monetary policy.

Under this context, MBKE suggests a number of measures that the SBV can use to stabilise the exchange rate. First, the central bank should further tighten the control of foreign exchange activities of commercial banks. Secondly, it should tighten a bit of Vietnamese dong liquidity in the interbank market. Finally, the SBV can sell US dollars from the nation’s foreign exchange reserves to protect the dong.

According to the analysts, the first measure was usually the first move of the SBV to use when there were unusual fluctuations in the domestic forex market. MBKE noted the SBV has not yet used the remaining two measures in 2023.

The analysts expect the depreciation of about 2-3% of the dong against the dollar in the next 12 months will not affect the Government's policy stance and the economic recovery.

In addition, MBKE said although rice prices rose to a record level in a decade, inflation should also be under control thanks to a series of favourable factors.

The analysts expect domestic interest rates will drop another 1-1.5 percentage points in the near future, as well as the possibility that the SBV will cut its policy rates by 25 basis points to promote the recovery of the economy.

Shinhan Bank has recently also forecast the SBV will continue to ease its policy to support the economy. However, the bank's analysts warned Vietnam may need to avoid further cutting interest rates due to weak exports and declining foreign exchange reserves while the country still has poor-performing banks.

In a report released earlier this month, HSBC also said it expects the SBV to deliver another 50 basis point rate cut, the last one in the current easing cycle. Recently, the central bank has also signaled its openness to do more if ‘market conditions allow’.

Shinhan Bank has also forecast that the SBV will continue to ease its policy to support the economy. However, the bank's analysts warned Vietnam may need to avoid further cutting interest rates due to weak exports and declining foreign exchange reserves while the country still has poor-performing banks.

In the Taking Stock August 2023 report released on August 10, World Bank (WB) also noted as Vietnam’s credit demand has remained persistently low despite interest rate cuts, further reducing interest rates may not have the desired effect of incentivising credit growth. Also, further interest rate cuts would increase the interest rate differential with global markets, potentially putting pressure on the exchange rate.

Experts believe as the room to reduce the policy interest rates is gradually exhausted, the fiscal policy will support the country’s economic growth in the second half of 2023.

“Fiscal policy support should be accompanied by continued monetary policy accommodation but the space for additional loosening is constrained,” WB noted in the report.

Analysts at Viet Dragon Securities Company (VDSC) also forecast that in the second half of 2023, the fiscal policy will support economic growth. According to VDSC’s analysts, some fiscal policies that will promote growth include: 2% VAT reduction policy (equivalent to 24 trillion VND); 20.8% increase in basic salary from July 1, 2023 (equivalent to 54 trillion VND); 10-50% reduction for 36 fees and charges for individuals and firms (equivalent to 700 billion VND); and the extension of VAT, CIT and land rent policies will continue until the end of 2023.

The SBV last Friday set the daily reference exchange rate at 23,837 VND per US dollar, up 11 VND from the previous day.

With the current trading band of /- 5%, the ceiling rate applicable for commercial banks during the day is 25,027 VND per dollar and the floor rate 22,588 VND per dollar.

Under the same move, commercial banks on the day also increased the rate.

BIDV listed the rate at 23,593 VND per dollar for buying and 23,893 VND for selling, both up 8 VND from the end of August 10.

Meanwhile, Vietcombank kept both buying and selling rates unchanged at 23,540 VND for buying and 23,910 VND for selling.

Vietnam’s economic growth projected to rebound from 2024

Vietnam’s economic growth is likely to rebound in 2024 and 2025, according to Dorsati Madani, Senior Economist at the World Bank (WB).

Madani noted that Vietnam's major trading partners, including the US, Europe, and China, have all experienced negative impacts in recent times due to global instabilities and reduced demand.

Low demand has dampened Vietnam's economic momentum, leading to a decrease in economic growth. The import and export turnover has declined, impacting industrial production value.

Director of the Central Institute for Economic Management (CIEM)'s General Research Department Nguyen Anh Duong said to achieve robust economic growth, Vietnam needs to do its utmost from various perspectives, including reform, policy management, and maintaining a stable and favourable economic environment for investors.

Maintaining macroeconomic stability serves as the foundation, but it's still important to create a favourable environment and improve capital absorption capacity, Duong stressed.

Duong put forth three growth scenarios for Vietnam in 2023.

In the first scenario, Vietnam’s GDP is predicted to expand by 5.34% in 2023, with exports for the whole year decreasing by 5.64% and the average Consumer Price Index (CPI) increasing by 3.43%. The country is expected to enjoy a trade surplus of 9.1 billion USD.

In the second one, CIEM expects the country's GDP will rise by 5.72%, with the export turnover decreasing by 3.66%, and the average CPI increasing by 3.87%. The trade balance will reach a surplus of approximately 10.3 billion USD.

The third scenario forecasts a more positive global economic context with improvements in growth recovery and credit and public investment disbursement, business environment and labour productivity; a significant reduction in supply chain disruptions, decreased inflation in the US, more favourable weather conditions, and Vietnam’s determined reforms and effective management.

CIEM expects the country’s GDP growth to surge by 6.46% in 2023. Accordingly, full-year exports will decrease by only 2.17%, while the average CPI increasing by 4.39%. The country will enjoy a trade surplus of around 6.8 billion USD.

Phan Le Thanh Long, CEO of AFA Group, predicted that the exchange rate of VND/USD will slightly increase within 1%.

Hanoi promotes agricultural product exports

Hanoi is promoting agricultural exports by developing a chain from production to consumption of export agricultural products, according to the city’s Department of Agriculture and Rural Development.

The department said Hanoi now has 35 rice planting areas, 104 vegetable planting areas, 56 fruit tree planting areas, 66 aquaculture areas, and 162 livestock areas.

This is an advantage for Hanoi to become one of the localities with the potential to export key agricultural products.

Hanoi also has 16 coded banana and longan planting areas and four coded packaging facilities with a daily capacity of 30 - 50 tonnes of export products in each facility.

In addition, the capital city also has 1,649 products belonging to the One Commune One Product (OCOP) Programme, including 20 potential five-star products, 1,098 four-star products, and 534 three-star products. They include more than 1,000 food products.

It is one of the favourable conditions for the city's agricultural products to approach strict markets, boosting agricultural exports.

To support businesses and cooperatives in expanding export markets for vegetables and fruits, Deputy Director of the municipal Department of Agriculture and Rural Development Nguyen Ngoc Son said Hanoi needs to continue coordinating with ministries and branches to strengthen connection and promotion activities for the official export of agricultural products.

It will strengthen training courses for agricultural, forestry and fishery production and business establishments on regulations on quality and food safety, and control of imported and exported foods to promote farming produce production and export.

Those courses focus on market information, guidance on registering codes for production areas, and quarantine regulations, as well as import control procedures of the markets of China, the Republic of Korea, and Japan.

Hanoi also will promote information on free trade agreements, including the EVFTA and CTPP, and foreign market barriers to improve the quality of agricultural products, meeting the increasing requirements of the export markets.

Additionally, the city is promoting the development of coded quality and safe specialised farming areas associated with traceability. It also focuses on building brands for key agricultural products, ensuring export standards.

In particular, via the support for the development of cooperatives, Hanoi has built 141 farming produce production chains, including 59 chains producing animal products, and 82 chains producing plant products.

Le Xuan Truong, deputy head of Hanoi's Sub-Department of Cultivation and Plant Protection, said that the city needs to support cooperatives, businesses, and farm owners in applying high technology to the production and processing of key commodities for export.

To do this, it must have policies to encourage and support planting areas and packaging establishments in developing the scale of commodity production under the requirements of the importing countries. In addition, it is necessary to support farmers and cooperatives in applying e-commerce to access potential markets in the world.

Nguyen The Lam, Director of Khanh Phong Agricultural Cooperative in Me Linh district, said if his cooperative participates in training courses on cross-border e-commerce and marketing, it expects to approach more customers.

Lam shared that sometimes, guava can only sell for 10,000 VND per kilo, but if this kind of fruit is exported, the selling price is likely to increase, and the pressure on consumption in the harvesting season will also decrease.

Meanwhile, many cooperatives have continued investment in production to increase linkages and expand export opportunities in many forms.

For example, Dong Tam Livestock and Service Cooperative in Quoc Oai district has invested in a closed animal husbandry process. Besides promoting consumption at wholesale markets and exporting directly, the cooperative also provides products for large supermarket systems, such as Coop Mart and AEON.

Especially, the AEON supermarket system is present in many countries, so Hanoi's products appearing at this supermarket system will be an opportunity to approach many foreign consumers.

Dong Phu Organic Agriculture Cooperative in Chuong My district has linked with two businesses to build a chain from production to export for rice products, thereby increasing the value of local rice and income for farmers.

Nguyen Van Minh, Director of Van Duc Agricultural Service Business Cooperative in Gia Lam district, said that Van Duc commune has 220ha of safe vegetables, including 26.9ha of vegetables produced under VietGAP standard.

Now, besides supplying supermarkets, wholesale markets and neighbouring provinces, the cooperative has also exported 300-500 tonnes of safe vegetables each year to Taiwan (China) and the Republic of Korea.

Dai Thanh Agricultural Cooperative in Quoc Oai district is developing 160ha of planting fruit trees according to VietGAP production standards, including 115ha growing longan.

Therefore, Dai Hoang late ripening longan is not only a specialty of Hanoi market, but also consumed at supermarket systems and exported to the Republic of Korea, Malaysia, the US and Poland.

According to the Hanoi Department of Agriculture and Rural Development, Hanoi's agro-forestry-aquatic product export value reached 1.75 billion USD in 2022. Of which, the export value of agricultural products and foods reach 871 million USD, up 12.2% on year; and timber and wood product export value was 883 million USD, up 17.5%.

Suggestions given to Vietnamese firms in trading with EU partners

The EU-Vietnam Free Trade Agreement (EVFTA) has created new opportunities for Vietnamese businesses, but they still need equip themselves with necessary skills to avoid losses and tap into this deal.

The recommendation was made by Do Viet Ha, a representative of the Trade Office of Vietnam in Germany, following some recent trade scams related to the export of cashew nuts to Italy, the export of cinnamon, star anise and cashew nuts to the UAE, and the import of some goods from Mexico.

She told the Vietnam News Agency that most of international trade scams came as a result of businesses not learning thoroughly about their partners, or contacting only via email, telephone or fax which made them unable to check the authenticity of partners’ addresses, phone numbers, and financial capacity.

Ha also detailed some points needing attention to minimise risks when Vietnamese businesses carry out transactions with foreign companies, including EU enterprises.

The Trade Office of Vietnam in Germany can assist enterprises in verifying information about German partners to help reduce risks, Ha went on.

The official also recommended that when exporting goods to Germany, companies should grasp the EU and this country’s technical standards for imports, especially the rules on food safety and social responsibility or the regulation on deforestation-free products and the Carbon Border Adjustment Mechanism.

As EU countries, including Germany, are working to shift to green, clean, and environmentally friendly economies, they will impose strict regulations on the environment and sustainable development. Given this, Vietnamese firms need to devise suitable business plans and make timely adjustments to meet new requirements and standards, Ha added.

Vietnam, UAE advised to tap logistics cooperation potential

Effective logistics cooperation with the UAE will play a significant role in promoting Vietnam's trade exchange with the Middle East and other regions around the world, Director of the Ministry of Industry and Trade’s Asian-African Market Department Tran Quang Huy said at a workshop in Hanoi on August 14.

The workshop on exploring the potential for such collaboration between the two countries was co-organised by the ministry and the World Logistics Passport (WLP) – a global initiative led by Dubai – amidst the sides’ celebration of their 30th anniversary of diplomatic relations.

At the event, UAE Ambassador to Vietnam Bader Abdulla Al Matrooshi highlighted that the UAE is Vietnam's largest export market in the Middle East, while Vietnam ranks among the top 10 largest import partners of the UAE globally. Between 2018 and 2022, their bilateral trade was kept at 5 billion USD annually, accounting for about 25% of the total import-export turnover between Vietnam and the Middle East.

Manager of the WLP Global Hubs and Partners Abdulla Alsuwaidi assessed that Vietnam, strategically positioned as a transit and production centre in Southeast Asia, will be an important Hub within the WLP network. The WLP has added the nation to its list of logistics and trade hubs in the region, referred to as Hubs.

The workshop saw the signing of cooperation agreements between the WLP and nine Vietnamese business partners.

Huy expressed his hope that through collaboration activities with the WLP, Vietnamese firms and organisations will gain significant benefits in cargo transport and logistics and expand operations, serving better competitiveness of Vietnam's import-export goods and services.

The WLP is a global, private sector-led, initiative designed to smooth the flow of global trade, unlock market access through the creation of new trade routes and provide economic efficiencies to members. To date, 29 countries have registered to participate in the network.

Russian company hopes for cooperation with Vietnam in earth observation satellites

Yuri Stoyanov, Chairman of the Board of Directors of Russia’s Stilsoft Group, has suggested Vietnamese businesses cooperate with his firm in the field of earth observation satellites.

Stilsoft, a company based in Stavropol capital of Stavropol Krai, southern Russia, is specialised in developing solutions, manufacturing and installing security systems for structure and border protection, and producing and launching earth observation satellites.

In terms of the numbers of orders and partners, it is a leading business not only in Russia but also the world, Stoyanov told the Vietnam News Agency.

He said that he has seen great demand for his company’s products in Vietnam as well as in Southeast Asia to help with safeguarding national borders and maritime territories, fighting cross-border smuggling and illegal fishing, controlling environmental pollution, preventing fires, and monitoring floods and landslides.

The entrepreneurs suggested cooperation between Vietnamese businesses and his firm in the field of earth observation satellites, noting that Stilsoft can transfer satellites and satellite control technologies and provide training for Vietnamese specialists so that they can manage satellites by themselves, or Vietnam can use satellite image services of his company.

Mentioning a plan to produce components of some of Stilsoft devices in Vietnam, Stoyanov said the company has conducted some negotiations with the Vietnamese side, and that this may help improve Vietnam’s technological capacity.

Tax watchdog to better manage performance of foreign service providers

The General Department of Taxation under the Ministry of Finance said it will work harder to better its tax management over foreign service providers to avert losses to the State budget.

The agency will focus on removing obstacles, enabling foreign providers to fulfill their tax obligations in line with regulations, and continue efficiently collecting tax from e-commerce activities.

To modernise tax management and facilitate tax payment, the finance ministry on March 21, 2022, launched a portal at etaxvn.gdt.gov.vn, making it easier for foreign providers to declare their tax and track their payments.

The department’s statistics show that 58 foreign companies have registered and declared their tax since the portal came online, and their  payment to the State coffer reached 3.4 trillion VND (142.99 million USD) so far this year.

For domestic e-commerce platforms, as of July 17, up to 334 of them had sent data to tax agencies, with Shopee, Lazada, Sendo, Voso and Tiki occupying the largest market shares.

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