The Ministry of Planning and Investment (MPI) has just submitted a proposal to the government to bolster support for Vietnamese start-up enterprises to facilitate their integration into domestic and global value chains, as well as industries.

The proposal, which was part of a draft decree on the organisation and activities of Việt Nam's Small and Medium-sized Enterprise Development Fund, suggested an additional 2 per cent annual reduction in interest rates for eligible businesses borrowing from the fund.

While pending the government's review, the proposal has been well noted and received by the business community, especially by Vietnamese SMEs.

"It would be a tremendous help to us if we could borrow from the fund at further discounted rates, which would reduce our financial pressure and allow us to focus on production," said Vũ Xuân Anh, CEO of a packaging company in the northern province of Hải Dương.

He added his company's core products, which are wrapping paper and plastic film, thanks to the development fund's financial support, could be priced about 15 per cent lower than imported products while remaining competitive in quality. By his estimation, the company saved up to VNĐ700 million on interest rates alone last year.

The development fund, according to MPI, has disbursed nearly VNĐ600 billion since 2016 to nearly 40 startup SMEs. It has played a vital role in supporting said SMEs to focus on the innovation of products, and participate in the country's supply and value chains.

While the figure may seem modest for SMEs' demand for lower-cost financing there have been upticks in recent months. During the first six months of 2023 alone, the fund has granted VNĐ260 billion to eight SMEs, or 87 per cent of its annual target.

According to a representative from the fund's management board, there is a plan to further cut interest rates for SMEs in the future, which is in line with the Vietnamese Government's initiative to increase support for SMEs.

"We normally based our interest rates on the lowest among Việt Nam's largest commercial banks. From there, we could further reduce rates by another 20 per cent," said Phạm Xuân Kiên, chairman of the fund's council.

For now, the fund's registered capital has reached VNĐ837 billion. However, depending on demand and business qualifications it could be increased to over VNĐ2 trillion in the future.

Nguyễn Đình Cung, former director of the Central Institute for Economic Management (CIEM) said the fund should seek out potential contributors among investors and banks.

In addition, it should prioritise establishing its own set of criteria and protocols to work directly with SMEs instead of lending through commercial banks as of now.

According to a report last year by the Ministry of Information and Communications, Việt Nam was home to nearly 800,000 SMEs. Vietnamese SMEs accounted for 98 per cent of all registered businesses, created 70 per cent of all employment and generated about 50 per cent of the country's GDP.

Besides raw numbers, the country's SMEs often play an important role in innovation, regional development, export and economic diversification.  

US initiates anti-dumping investigation into Vietnamese steel wheels

The US Department of Commerce (DOC) has announced the start of an antidumping and countervailing duty investigation on the import of steel wheels from the Vietnamese market, said the Ministry of Industry and Trade (MoIT).      

The investigation comes following petitions filed by Dexstar Wheel Co, a steel rim and wheel manufacturer.

According to the US’s regulations, parties have a 30-day deadline, starting from August 7, to comment on the surrogate country before the DOC then issues the preliminary determination of the case.

After receiving comments from the various parties, the plaintiff will have a total of 14 days to respond.

The MoIT requested relevant parties quickly prepare all documents and procedures, and at the same time closely cooperate with the Trade Remedies Authority of Vietnam in order to receive timely support to protect their interests.

Vietnam-Korea trade promotion week slated for September in Hai Phong

The Vietnam-Korea trade promotion week will take place in the northern port city of Hai Phong from September 1-10, toward celebrating the 31st anniversary of Vietnam-Republic of Korea (RoK) diplomatic ties.

The event aims to enhance the linkages between trade and investment promotion activities, contributing to popularising the culture, tourism, history and people of the two countries, raising their mutual understanding and tightening Vietnam-RoK strategic cooperative partnership and ties between Hai Phong and the RoK in particular.

Close to 100 booths will be open at the event, including 16 displaying Vietnamese and Korean products and 72 introducing Vietnamese and Korean cuisine, specialties and beverages. Playing areas and interactive zones for both children and adults, along with cultural activities, are also part of the week. 

The RoK now invests in 105 projects worth about 9.97 billion USD in Hai Phong, leading in both volume and value of FDI projects in the city. Last year, these projects generated 14.5 billion USD in revenue, earned 13.5 billion USD from exports, contributed 3.57 trillion VND (155.2 million USD) to the budget and generated jobs to 41,000 workers.

Most of the RoK’s projects in Hai Phong are high-tech and effective. Additionally, Korean is chosen as one of the foreign languages to be taught in several schools in the city.

Top 100 most valuable Vietnamese brands announced

The list of the nation’s 100 most valuable brands was released at an awards ceremony held as part of “Brand Finance - Mibrand Vietnam Forum 2023” which took place on August 15 in Hanoi.

Viettel was ranked as the most valuable local brand for the eighth consecutive year with a value of US$8.9 billion, ahead of second-ranked Vinamilk at US$3 billion, and VNPT in third at US$2.7 billion.

The UK-based Brand Finance placed Vietcombank and Vinhomes fourth and fifth positions which were worth US$1.9 billion and US$1.7 billion, respectively.

Furthermore, four banks and PetroVietnam featured in the Top 10, including Agribank, BIDV, Techcombank, and PetroVietnam, all of which had the same value of US$1.4 billion each, along with VietinBank with a value of US$1.3 billion.

Moreover, nine brands in the banking industry entered the Brand Finance list for the first time this year, including TPBank, LPBank, MSB, SeABank, OCB, Eximbank, Kienlong Bank, Viet Capital Securities Joint Stock Company, and NCB.

Brand Finance represents the world’s leading independent brand valuation and strategy consultancy. The agency in conjunction with the brand consulting firm Mibrand Vietnam JSC announced the 100 most valuable brands in the country this year.

This represents an annual event and the eighth year in which the Brand Finance Vietnam Forum has been organised in Vietnam.

Pork trading floor to be launched in HCM City

A cooperation agreement on forming a pork trading floor in Ho Chi Minh City was signed on August 14 between the municipal Departments of Industry and Trade, and Agriculture and Rural Development, and the Mercantile Exchange of Vietnam (MXV).

Under the agreement, the parties will study, develop and operate the pork trading floor in the city in the form of spot contracts and futures contracts.

The trading floor will be formed and developed based on the infrastructure of the MXV, including trading and payment systems, a goods delivery centre, and the provision of market information and transaction of all types of contracts in line with international standards.

Speaking at the signing ceremony, Deputy Director of the HCM City Department of Industry and Trade Nguyen Nguyen Phuong said the trading floor will allow direct pork purchases, without intermediaries, from pig farmers as well as stop at-home hog slaughtering, thereby ensuring food hygiene and safety.

Deputy General Director of MXV Nguyen Ngoc Quynh said that compared to the traditional business method, the pork trading floor will be different in the organisational model and operation as modern technology infrastructure will be applied in the transactions, adding that MXV learned a lot of valuable lessons while working with major commodity exchanges, especially the Chicago Mercantile Exchange.

HCM City is currently the largest pork consumption market in the country which spends 500 million USD on pork a year. However, traders account for 85% of transactions and play a dominant role in determining prices in the market. Farmers and consumers are always in a passive position.

The pork trading floor is expected to help the city implement a modern livestock plan, gradually reducing spontaneous breeding, and building industrial-scale cattle slaughterhouses.

HCMC launches program promoting OCOP products

The HCMC Department of Industry and Trade in coordination with relevant departments and units on August 14 organized a signing ceremony of a Memorandum of Understanding on promoting OCOP (One Commune One Product) products.
 
The program called “Stories about 1,000 OCOP products” will provide information about more than 66 3-4 star OCOP products of HCMC to customers, including key products of the city and others of neighboring localities in the regional connectivity program.

In addition, the participating units have conducted market research and product survey questions to gauge the level of awareness and understanding of a product among potential customers.

HCMC plans to create a pilot plan on developing the bird’s nest of Can Gio District into a typical agricultural brand and building a pork trading floor with advanced technology and careful control of pork origin to ensure quality.

SHB increases charter capital to nearly US$1.51 billion

SHB successfully issued more than 552 million shares for dividend payment in 2022, thus increasing its charter capital to nearly VNĐ36.1 trillion (US$1.51 billion), according to State Securities Commission of Việt Nam.

The increase made the bank hold Top 4 position among private joint stock commercial banks in Việt Nam in terms of charter capital.

Earlier, SHB closed the list of shareholders to pay dividends in shares at the rate of 18 per cent. During its operation, SHB has been one of the banks with the highest and most regular dividend payout ratio in the market.

A representative of SHB said that the increase in charter capital was an important milestone for their development plan. It was approved at the Annual General Meeting of Shareholders, helping the bank strengthen its financial capacity and promote digitalisation to realise the goal of becoming the No 1 bank in terms of efficiency, applying leading modern technologies and being the most favourite digital bank by 2027.

Phú Quốc Island faces obstacles in infrastructure for tourism development

Despite its growth in hospitality options, the infrastructure required to support environmentally and economically sustainable growth on Phú Quốc Island off Kiên Giang Province remains inadequate, according to Savills Hotels.

Since late 2012, improved accessibility and the expansion of flight routes to the island have boosted tourism and hotel development.

According to Savills Hotels statistics, the island has 25,000 accommodation units, most of which are small, locally operated properties. However, 15 per cent of the inventory includes upscale and luxury hotels and resorts.

Compared to regional competitors, Phú Quốc’s accommodation stock is only equal to 27 per cent of the stock in Phuket and 31 per cent of that in Bali.

“Burgeoning tourism has fuelled hospitality real estate growth in Phú Quốc. In the past, many developers rushed to enter without careful planning and execution, with replication of products that disregard market trends, the island's heritage or product identity,” said Mauro Gasparotti, director of Savills Hotels.

“Despite high-quality developments, the lack of central attractions in Phú Quốc reduces its appeal and there are no sound tourism anchors,” Mauro said.

“The oversupply of certain products like shophouses is also a concern. The island is facing the challenge of numerous unoccupied commercial spaces with low traffic, which can negatively impact its vibrancy and create a sense of neglect,” he said.

Domestic visitors accounted for over 85 per cent of the island’s visitors before the pandemic. This strong base of local clientele supported a sound recovery in 2022, and tourist arrivals equalled the 2019 base of 5.1 million.

Phú Quốc has a competitive edge compared to other key tourism destinations in Việt Nam because of its international visa policies. Travellers from all countries can enter the island without a visa, provided that the island is their sole destination.

Ngân Phạm, consultancy manager at Savills Hotels, said, “While the policy provides a competitive advantage for attracting international travellers to the island, limited international routes and flights are barriers to fully leveraging its potential.”

Connectivity is a vital factor in the development of an international destination, and Phú Quốc faces significant obstacles in this matter.

Phuket and Bali are well-established destinations and enjoy excellent international connectivity with frequent and direct flights from major cities such as Singapore, Shanghai, and Hong Kong.

Phú Quốc has fewer direct flight routes and less frequent flights. Phuket offers 150 per cent more daily flights, while Bali has 430 per cent more daily flights compared to Phú Quốc.

Phuket and Bali have stronger links with local transport hubs, boasting significantly more flights to Bangkok and Jakarta. Phuket has 330 flights per week to Bangkok, and Bali has 400 flights per week to Jakarta. Phú Quốc has approximately 160 flights to HCM City and 90 flights to Hà Nội.

“It is worth noting that there are currently no flights from Singapore, which serves as an important transportation hub in Asia. This puts Phú Quốc at a disadvantage when compared to destinations like Phuket and Bali,” Ngân said.

Addressing the challenges of connectivity and infrastructure will be essential for Phú Quốc’s successful transformation into a world-class international destination, according to Mauro. In addition, to affirm its position on the international tourism map, Phú Quốc’s tourism industry must promote itself by utilising communication activities and marketing channels properly and efficiently. 

E-invoices generated from cash registers conducive to tax collection

As e-invoices generated from cash registers (ECR) make tax collection more efficient and manageable, tax authorities are working to make e-invoicing a common practice among vendors.

Nguyễn Thị Lan Anh, Director of the Tax Administration Department on Small and Medium Enterprises and Business Households, Individuals, said ECR would serve the taxman well by creating a fairer and more transparent tax environment for taxpayers. 

One convenience is that ECR can be generated at any time thanks to the round-the-clock connection between cash registers and tax databases. The freedom from time constraints gives vendors more elbow room to correct errors that might arise in their invoices.

Between late 2022 and July 17, 2023, more than 27,400 companies and individuals were registering as ECR issuers, with around 13.9 million e-invoices being issued. At the end of Q2/2023, 54 cities and provinces met their targets on ECR coverage whereas nine failed to hit the mark.

Lê Xuân Trường, Head of the Faculty of Taxation and Customs, Academy of Finance, said ECR would improve the transparency in transactions and allow buyers to hold vendors accountable for the quality of goods and services that they provide. 

Thái Minh Giao, Deputy Director of the Tax Department of HCM City, said his department had set a target of 6,674 taxpayers registering as ECR issuers in 2023. By July 17, around 3,500 had got in on the act. 

The deputy director underlined several obstacles for the department to achieve its target. The first obstacle involves the absence of a regulation that makes ECR mandatory for vendors.

The second obstacle centres around transition costs. Many vendors were unwilling to take the plunge because ECR entails costs associated with software installation and upgrades.

Director Anh said her department would take some measures to bring ECR to popularity in the short term.

One measure involves a change from presumptive taxation to income-based taxation for businesses that serve consumers directly, especially those in the restaurant industry. This change would work because income-based taxation is a conducive environment for ECR.

For businesses that do not serve consumers directly, the department would examine their tax status and take action on a case-by-case basis.

The department would use communication tools to keep taxpayers well aware of ECR. "The lucky invoice" programmes could also be launched to promote the use of ECR in daily transactions. 

Regulations should not create inertia for rice exports

Over the past few weeks, the international rice commodity market has undergone notable volatility. Vietnam's 5-percent broken rice for export reached $622 per ton (on August 9), following the upward trajectory of the Thai counterpart, which attained $645 per ton.

The export price of Vietnamese rice has hit a 15-year high. In the domestic market, the cost of raw paddy has surged significantly. Despite the rice in the fields not being ready for harvest for over a month, traders have already made deposits to secure purchases. While farmers previously sold rice from the winter-spring crop for less than VND5,000 per kg, some are now depositing VND8,500 per kg. Moreover, locally-grown rice prices in domestic markets are steadily on the rise.

The surge in rice prices benefits rice growers and creates a market opportunity for rice exporters. However, the domestic market is witnessing concerning developments. Some enterprises must purchase rice at inflated rates to fulfill contracts previously made with foreign partners, leading to a situation of "buying high, selling low," resulting in financial losses.

Some localities are experiencing a significant accumulation of rice, leading to an imbalance between local supply and demand, resulting in unjustified increases in domestic rice prices. This scenario underscores the necessity to not only ensure steadfast national food security in all circumstances but also to bolster the sustainability of the rice supply chain.

Many businesses express concerns that the draft amendment to Decree No.107/2018/ND-CP on rice export business, prepared by the Ministry of Industry and Trade, contains provisions that have not fully met the requirements. The expenses, travel duration, and paperwork involved for rice exporters, primarily situated in the Mekong Delta region, continue to be notably elevated.

Following a five-year cycle, traders are mandated to apply for renewed certification through the same procedures as the initial application. The export authorization fee, varying from $1 to $5 per ton of rice, has the potential to lead to a situation known as "certification rental," creating inertia and making Vietnamese rice more expensive and challenging to export.

Hence, it is paramount to enhance the rice export management mechanism, aligning it with the rice export business conditions and the quality of paddy and commodity rice for export. Traders should collaborate closely with rice growers, engaging in activities spanning raw material cultivation, production, and rice consumption. This collaborative effort will foster a transparent, equitable, and supportive business environment that safeguards the rightful interests of rice farmers and upholds the esteemed reputation of Vietnamese rice commodities.

The situation of vying with others to buy "young rice" stems primarily from the fact that many rice exporters have failed to establish raw material growing zones, instead depending on traders and thereby missing out on potential market opportunities. Therefore, the regulation to reserve at least 5 percent of the total rice export volume in the previous six months has not been strictly enforced. Bidding progress to purchase rice for national reserve in the context of volatile prices was also affected. Thus, it is necessary to complete the linkage models, prioritizing the raw material growing area of 1 million hectares of rice in the Mekong Delta according to the planning.

Furthermore, there is a need to explore the implementation of a mechanism that can stabilize prices within the domestic rice market and offer assistance to economically disadvantaged consumers while fostering a conducive environment for rice producers and exporters. Market surveillance and price control authorities should strengthen their efforts in conducting thorough inspections and closely monitoring business activities related to exports and domestic consumption.

Vietnam has garnered insightful lessons from the fluctuations within the rice market during the years 2008, 2020, and 2022. To create the most efficient operational strategies for the present, a comprehensive analysis of the gains and losses observed in recent rice export endeavors is imperative.

In addition to addressing the immediate challenges, it is essential to concentrate on enhancing the quality of rice varieties and establishing long-term strategies for the rice industry, constructing robust technical and technological infrastructure, nurturing distinctive brands, expanding market presence, and forging a substantial and efficient connection among rice exporters, cooperatives, and farmers to guarantee product quality, traceability, and elevate the competitiveness of Vietnamese rice products.

Delays in mining licenses impact North-South Expressway project

The Ministry of Transport has reported sluggish permitting for material mining has affected the second phase of the eastern North-South Expressway project.

Local authorities have confirmed permits for 42 out of 69 material mining sites submitted by contractors. However, only 15 of the approved sites have commenced operations.

Challenges are evident in the Mekong Delta region. An Giang Province has committed to allocating 1.1 million cubic meters of sand for the Can Tho–Ca Mau expressway project from four active mining sites, but only two contracts have been executed so far.

Operational limitations have temporarily halted sand supply from the two mining sites. Legal issues have also disrupted the supply chain, with one mine facing permit withdrawal and another undergoing investigation.

Meanwhile, the demand for sand in Vinh Long Province requires arrangements for five mining sites to accommodate a storage capacity of five million cubic meters. The local authority has assigned two sites to contractors, but pending procedural completion has hindered mining, and plans for allocating the remaining three sites are yet to be finalized.

To address concerns and ensure timely progress, the Ministry of Transport has urged expedited procedures for the 27 confirmed mining sites, with deadlines set for August. Operations for the remaining 27 sites should commence by September, aiming to meet the material demands of these projects.

According to the ministry, the North-South Expressway’s second phase needs over 47 million cubic meters of soil, 17 million cubic meters of rock, and nearly 9.7 million cubic meters of sand for the stretch from Ha Tinh Province to Khanh Hoa Province.

The Can Tho–Ca Mau section requires 1.4 million cubic meters of rock, 1.7 million cubic meters of soil, and more than 18 million cubic meters of sand.

PM urges banks to boost real estate lending

The Prime Minister has issued a directive urging banks to push lending to the real estate sector. This move comes as numerous real estate businesses have reported difficulties in gaining access to bank loans.

The Government Office has recently released a statement summarizing Prime Minister Pham Minh Chinh’s conclusions at a conference evaluating the implementation of Resolution 33/NQ-CP issued on March 11, 2023 to roll out a number of measures for propping up the development of the real estate market in a safe and sustainable manner.

Key points from the Prime Minister’s directive include the role of the State Bank of Vietnam (SBV) in reviewing and promoting lending to real estate enterprises. The directive further emphasizes the need for banks to provide effective solutions that make it easier for businesses, real estate projects, and homebuyers to access credit.

The SBV, in collaboration with the Ministry of Construction and local authorities, has been tasked with boost the disbursement of a credit package totaling VND120 trillion. This package was introduced in April of this year following the Government’s Resolution 33, aimed at encouraging investors to develop social housing projects and supporting workers in purchasing a home.

The Prime Minister’s directive also urges banks to lower interest rates, simplify administrative procedures for borrowing, and incentivize housing supply and demand through promotions.

However, access to capital remains a challenge for many real estate businesses as their concerns shift from high interest rates to difficulties in obtaining loans.

The HCMC Real Estate Association has proposed that the SBV amend Circular 06/2023, citing concerns over potential credit constraints for real estate businesses.

Statistics from the SBV showed an overall credit growth rate of 4.03% by June 27 compared to December 2022 and 9.08% versus the same period last year. Credit flow into the real estate sector grew 14% in the first five months of the year, reflecting potential early signs of market recovery.

On the other hand, consumer credit for real estate observed a decline of 1.32%, in contrast to a 15% increase during the same period last year, showing hesitation among homebuyers.

Data from the Ministry of Construction indicated a continued decline in housing development projects, muted transactions, and ongoing increases in property prices during the second quarter of the year.

Between April and June, Vietnam saw the completion of seven commercial housing development projects, resulting in a total of 2,424 projects.

During this quarter, the number of newly established real estate firms slumped by over 61% compared to the year-ago period. Meanwhile, the number of realty firms exiting the market surged by over 30%.

Ministry approves provisional prices for 58 renewable energy projects

The Ministry of Industry and Trade has given the green light to provisional prices for 58 projects, encompassing a total capacity of 3,181.41MW.

As of August 11, 18 transitional renewable energy plants or parts of transitional renewable energy plants, boasting a total capacity of 952.12MW, had successfully finalized the commercial operation (COD) procedures and commenced the generation of commercial electricity onto the grid.

Up to now, 79 out of the 85 transitional renewable energy projects, amounting to a collective capacity of 4,449.86MW, have filed documentation with the Electricity Power Trading Company for negotiations regarding electricity pricing and power purchase agreements. Among these, 67 projects with a total capacity of 3,849.41MW have put forth a temporary price equivalent to 50 percent of the ceiling price established within the pricing framework in accordance with Decision No.21/QD-BCT dated January 7, 2023, issued by the Ministry of Industry and Trade.

Out of these 67 projects, the Vietnam Electricity Group and the investors have successfully finalized price negotiations and inked Power Purchase Agreement (PPA) contracts for 59 projects. Additionally, the Ministry of Industry and Trade has given the green light to provisional prices for 58 projects, encompassing a total capacity of 3,181.41MW.

Hanoi to host digital banking forum in late August

The Temenos Regional Forum 2023: ASEAN is expected to offer a multi-dimensional perspective on the overall landscape of the regional and global banking industry.

The forum will showcase cutting-edge technology solutions and offer valuable insights to assist banks in fostering growth and adapting to emerging market trends.

The forum will be attended by Craig Bennett, managing director in Asia-Pacific of Temenos, and Nick Edwards, deputy regional director and general manager for ASEAN – Temenos Asia Pacific.

In addition, over 300 local and foreign experts from Temenos and prominent technology businesses are expected to join the event.

Participants will be given the chance to foster cooperation and establish potential partnerships with prominent institutions in the finance-banking sector across the region and the world.

The forum caters to senior managers and business executives of local banks, financial institutions, and technology-finance companies in Vietnam.

In addition to in-depth presentations and panel discussions, the Temenos Regional Forum includes an exhibition with 14 world’s leading providers in the technology and finance-banking sectors such as Amazon Web Service, Aspire and Redhat.

The upcoming event in Hanoi will highlight the growing role of Vietnam within Southeast Asia and the global market, according to the organizing committee’s statement.

Founded in 1993, Temenos AG offers software and technology solutions to a wide range of customers, including banks, funds, and global corporations. The firm has partnerships with half of Vietnam’s commercial banks.

Disbursement rate of many public investment projects at 0 percent

Chairman of the Ho Chi Minh City People’s Committee Phan Van Mai has just signed an official letter to accelerate public investment implementation in the city.

Of which, the municipal People’s Committee Chairman proposed the party chiefs in Thu Duc City and districts to pay attention to directing site clearance and public investment disbursement; organize weekly meetings to check the progress of projects and remove obstacles; ensure compensation disbursement progress and the general progress of the projects.

Particularly, the Chairman of the People’s Committee assigned the Director of the municipal Department of Planning and Investment to regularly monitor the progress, summarize the list of units, investors reaching low disbursement rate, under 30 percent, by September due to subjective errors. Thereby, the director will propose criticism for relevant ones to the Ho Chi Minh City People’s Committee. The HCMC Department of Internal Affairs will evaluate their mission completion in the third quarter of 2023.

At the current time, many projects in Ho Chi Minh City have a disbursement rate of zero percent, including the Ca Chay residential construction project, the repair and improvement project of Binh Khanh Primary School in Can Gio District; the upgrade and expansion project of Lo Lu Street in Thu Duc City; the upgrade and renovation project of Phu Lam Market in District 6 and so on.

According to the HCMC Department of Planning and Investment, the municipal People’s Committee has allocated public investment capital in 2023 with more than VND68,490 billion (US$2.9 billion), reaching 97 percent of the total public investment plan assigned by the Prime Minister.

However, by August 4, the city’s total disbursement of investment capital in 2023 has reached only VND18,646 billion (US$784 million), meeting only 27.2 percent of the total assigned capital.

Earlier, the city set the target of reaching the disbursement rate of more than 35 percent by the end of June.

Half million air tickets made available for upcoming National Day holiday

Vietnamese airlines have made available nearly half a million air tickets for the National Day holiday which lasts from September 1 to 4.

Over 400,000 air tickets for domestic flights from the major cities of Hanoi and HCMC to popular tourist destinations like Danang, Nha Trang and Phu Quoc will be released by carriers such as Vietnam Airlines, Pacific Airlines and Vasco.

However, airfares are still high, with no tickets available for under VND1 million.

Specifically, on the HCMC to Danang City route, a Vietnam Airlines air ticket is priced at VND2.3 million. The same route is offered by Vietjet and Vietravel Airlines at a range from VND1.5 million to VND1.9 million and VND1.7 million to VND1.9 million, respectively.

For flights departing from Hanoi to Phu Quoc, ticket prices vary from VND2.5 million to VND4 million per ticket. On the HCMC to Phu Quoc route, one ticket falls within a range of VND1.5 million and VND1.7 million. However, local carriers present airfare prices at half the rates for these same routes before or after the holiday period.

Both Vietnam Airlines and Vietjet are offering reduced prices starting from VND1.5 million for one-way tickets on routes from Hanoi City or HCMC to destinations like Danang, Dalat, Nha Trang, Quy Nhon, Vinh, Thanh Hoa, and Haiphong.

Noi Bai International Airport said that the peak summer holiday was predicted to last until mid-August. However, the holiday ended sooner than usual as guest numbers returned to normal levels since the beginning of this month.

Meanwhile, at Tan Son Nhat International Airport, it is projected that during the upcoming holiday, the number of travelers passing through the airport will range between 95,000 and 110,000 passengers per day.

Transport Ministry urges work on rest areas on North-South Expy

The Ministry of Transport has called upon relevant authorities to finalize paperwork for eight rest areas along the eastern North-South Expressway by August 15.

The Vietnam Expressway Corporation and project management boards 2, 6, 7, 85, Thang Long, Ho Chi Minh Road, and My Thuan have been told to expedite the development of rest areas along the cross-country expressway, reported by the Vietnam News Agency.

For the eight projects whose locations and investment scales have received approval, their respective management boards will have to work with consulting units to update technical issues and accelerate the completion of documents for submission to the Ministry of Transport.

Regarding the remaining 18 rest areas that have yet to be approved, the Ministry of Transport has assigned relevant authorities to conduct a comprehensive review of project costs, components, consultant selections, and site clearance. This ensures the effective selection of contractors while staying within the total investment cost limits.

The Ministry of Transport has also authorized the use of provisional funds and existing cost balances for expressway projects, specifically for matters related to the selection of contractors for the rest areas.

The project management boards are required to survey and assess the current status of locations designated for rest area construction, considering the unique circumstances of each location for a comprehensive development plan.

These management boards will have to propose technical requirements that prioritize aesthetics, quality, convenience and exceptional services.

Along the majority of newly opened sections of the North-South Expressway, such as Phan Thiet-Dau Giay (99 km) and Vinh Hao-Phan Thiet (100.8 km), there are no rest areas, leading to many road users stopping along the emergency lanes for rest, which puts road safety at risk.

Philippines a promising importer of made-in-Vietnam African swine fever vaccines

Representatives from AVAC Vietnam Joint Stock Company and the Philippines’ KPP Powers Commodites Inc on August 15 visited a pig farm in Hanoi's Dan Phuong district, where Made-in-Vietnam African swine fever (ASF) vaccines have been tested. 

In July 2023, 300,000 doses of AVAC ASF LIVE vaccine of AVAC Vietnam Joint Stock Company were officially imported to the Philippines by the KPP

Earlier, AVAC tested the AVAC ASF LIVE vaccine in the Philippines. The Philippines Department of Animal Health requested AVAC Company to coordinate and provide 1,000 doses of vaccine. The trial results showed that the vaccine was safe and effective for all 1,000 vaccinated pigs.

Michael Quilitis, a representative from the KPP said that the field trip to farm in Hanoi at this time helps them directly check the vaccination at households.

He said that the vaccine is very promising in the Philippines highly valued by local farmers, adding if the vaccination generates positive results, the company will import more.

Nguyen Van Diep, General Director of AVAC, said that after the KPP deployed Phase 1 injection in the Philippines in a small scale, the company deployed Phase 2 in a larger scale.

Vietnam has become the first country to successfully develop and produce two vaccines against ASF, a disease that first appeared in Africa in 1921 with a mortality rate of up to 100%.

In June 2022, Vietnam announced the NAVET-ASFVAC vaccine produced by the National Veterinary JSC (NAVETCO) was the world's first commercial vaccine against the ASF.

In February 2023, the country made public its second vaccines AVAC ASF LIVE developed by AVAC Vietnam Joint Stock Company. After the administration of 600,000 doses of ASF vaccines on pigs in over 40 provinces and cities nationwide under the supervision of the Department of Animal Health showed positive outcomes, the MARD has allowed the use of the vaccines in a larger scale in many localities.

Organic rice farming yields fruits

The National Agricultural Extension Centre (NAEC) has initiated several organic rice production projects in localities, which are gaining more favour for their clean products, lower production costs, and contributions to land improvement and enhanced grain value.

The organic rice production model, coupled with product consumption links, has so far been deployed in the north-central provinces of Nghe An, Ha Tinh, and Quang Tri, spanning an area of 240 hectares.

According to statistics, the yield from the model hit 6.38 tonnes per hectare, marking a 10% increase in efficiency compared to conventional methods. By employing organic production processes and using biologically-based products, safe rice is produced, leading to a 20% increase in profits for farmers compared to traditional rice cultivation.

One of the active participants in organic rice production, the Que Lam Group has expanded this model nationwide. Ton That Thanh, a representative of the enterprise, elaborated its no-chemicals production began in the central province of Thua Thien-Hue.

Now, the group is capable of cultivating 200 hectares of organic paddy per crop in the locality. It has also invited cooperatives and farmers from various regions to visit and learn from its experience, aiming to replicate the practice on a broader scale. By now, Que Lam has produced organic rice on around 1,000 hectares in such provinces as Ha Tinh in the central region, Vinh Phuc and Thai Nguyen in the north, and Dong Thap and Dong Nai in the south.

Thanh said assessments show that organic rice farming in the central region not only generates clean and environmentally-friendly products thanks to the avoidance of chemical usage but also increases average profits by 1 million VND (44.66 USD) per "sao" (a traditional Vietnamese unit of land measurement, one sao is equivalent to roughly 500 square metres for the region) for local residents.

However, transitioning to organic rice cultivation doesn't immediately gain the support of farmers. Discussing this matter, Nguyen Huu Ngoc, Deputy Director of the Ha Tinh Agricultural Extension Centre, explained that farmers have been accustomed to using chemical fertilisers and pesticides for a long time, and switching to organic standards can bring about challenges. They also need access to reputable suppliers of organic biological fertilisers. Moreover, the price of organic rice in the market is not significantly higher than conventionally produced one, so farmers may not be willing to adopt the new practice.

According to the Ministry of Agriculture and Rural Development (MARD)’s Department of Quality, Processing and Market Development, 62 localities nationwide are participating in organic farming or are in the process of transitioning to the practice. The total area of organic arable land now exceeds 175,000 hectares, including 63,536 hectares for crops.

VinFast and Black Spade complete Business Combination

Vietnamese automaker VinFast Auto Ltd and Black Spade Acquisition Co announced on August 14 the completion of their previously announced “Business Combination”.

The listed company following the Business Combination is VinFast Auto Ltd., and its shares and warrants will commence trading on the Nasdaq Stock Market LLC (“Nasdaq”) under the ticker symbols “VFS” and “VFSWW,” respectively, on August 15, 2023.

The announcement of the completion of the Business Combination comes after Black Spade’s shareholders voted to approve the transaction on August 10, 2023. As a result of the Business Combination, Black Spade became a wholly-owned subsidiary of VinFast and is expected to be delisted from the NYSE American LLC.

Additional information about the transaction, including a copy of the business combination agreement, is available in Black Spade’s Current Report on Form 8-K, filed on May 12, 2023 with the Securities and Exchange Commission (“SEC”) at www.sec.gov.

More information about the transaction is available in VinFast’s registration statement on Form F-4 which includes BSAQ’s proxy statement and VinFast’s prospectus in relation to the business combination, which was first filed with the SEC on June 15, 2023.

Vietnamese and Thai businesses seek to realise US$25 billion trade target by 2025

Thai and Vietnamese businesses are seeking to boost cooperation aiming to bring the two countries’ bilateral trade turnover up to US$25 billion by 2025.      

This statement was made by Sanan Angubolkul, chairman of the Thai Chamber of Commerce and president of the Thailand-Vietnam Friendship Association, at the Thailand-Vietnam Business Forum 2023 held in Bangkok on August 15.

He stated that Thailand attaches importance to the Vietnamese market, with many Thai businesses keen to invest in Vietnam. In addition to business and investment, he said Thailand has set up forums for the two countries to better understand each other in the fields of culture and tourism, creating opportunities for their businesses to access new markets and strengthen their connections.

Nguyen Van Thanh, president of the Vietnam-Thailand Friendship Association, shared that the forum provides an excellent chance for young entrepreneurs to share knowledge and gain experience in doing business, enabling a continuous and sustainable relationship to develop between the two countries.

Addressing the forum, Vietnamese Ambassador to Thailand Phan Chi Thanh affirmed that joint trade cooperation has seen strong developments as it has grown steadily over the years despite enduring many challenges.

The forum is organised in line with the "three connections" strategy adopted by senior leaders of both countries in a bid to promote the strategic economic partnership that exists between both sides, he noted.

The “three connections” strategy includes connecting the supporting industry supply; connecting the local economy, especially small and medium enterprises with the locality; connecting the sustainable development strategy among the bio-economic policies, circular economy, green economy of Thailand, and the green development strategy of Vietnam.

During the forum, many discussions were held as part of efforts to further deepen the business connectivity of both sides. Indeed, for the first time a discussion was organised for start-ups of the two countries to exchange business ideas.

Moreover, firms displayed their products and joined meetings to learn more about investment opportunities and seek ways in which to expand their distribution markets.

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