The Vietnam Association of Seafood Exporters and Producers (VASEP) has proposed reducing many fees, including fees for using infrastructure facilities and public services at seaport terminals and industrial parks and the electricity prices, to help seafood enterprises overcome the current tough period.

VASEP General Secretary Truong Dinh Hoe has written to the Government Office and the Ministry of Planning And Investment commenting on a draft resolution on support policies for enterprises amid the pandemic.

According to VASEP, if the seafood sector does not recover by September, materials for the sector will be stagnant, seafood farmers will be put at a disadvantage and the sector will find it hard to recover. Therefore, enterprises in the sector should be supported to recover before September 15.

VASEP also proposed reducing the electricity prices by 30% for seafood producers in the second half of the year. These firms consume electricity in the processing, freezing and storage stages, even farming, while the draft resolution has policies to support them only in the storage stage.

As for the seaport fees, VASEP suggest HCMC and Haiphong stop collecting the fees from August 2021 until the end of June 2022 and cut other fees by at least 30%.

In addition, seaports should reduce service fees by at least half in the same period.

The association has also proposed cutting a minimum of 50% of the fees for using infrastructure facilities at industrial parks.

Further, VASEP has suggested the Vietnam Social Security pay the allowances for laborers who are under quarantine and have stopped working as required to fight the pandemic.

According to VASEP, enterprises have to face multiple difficulties while suspending or reducing their operations and they must pay the salaries of laborers who cannot work.

Moreover, the Vietnam Social Security’s balance is high. Specifically, as of 2020, the balance was nearly VND925.1 trillion.

Vietnam promotes safe use of digital platforms

The Ministry of Information and Communications has issued a directive on promoting the development and use of safe and healthy digital platforms.

The directive is also expected to contribute to creating digital trust and ensuring the safety of Viet Nam's cyberspace.

Digital platforms have made important contributions to the national digital transformation, and the development of the digital economy and digital society. However, information and data leakage on digital platforms still occurs on an increasingly large scale.

The spread of fake news, information that violates the law, especially on cross-border digital platforms, has caused a lot of negative impacts.

Therefore, the ministry requires businesses that manage digital platforms to develop the platforms that are able to protect themselves and have tools to process and remove information that violates the law.

In particular, owners of digital platforms must implement solutions to ensure information security and publicise measures to handle and protect personal information, and collect personal information only with the consent of the users.

These units are not allowed to provide, share or distribute personal information of users, except with their consent or at the request of competent state agencies.

Ministry of Transport scraps general aviation business licence of Globaltrans Air

The Ministry of Transport has issued a decision on scrapping the general aviation business licence No. 01/2018/BGTVT-VT granted to Globaltrans Air Service JSC.

Under the decision, Globaltrans Air Service JSC is responsible for handling contracts of carriage, financial obligations related to general aviation business in line with legal regulations.

Earlier, the Civil Aviation Authority of Vietnam (CAAV) proposed the Ministry of Transport scrap the general aviation business licence of Globaltrans Air JSC.

Globaltrans Air Service JSC was granted a general aviation business license by the Ministry of Transport on April 17, 2018. However, the company has so far not received the air operator’s certificate (AOC) from the CAAV.

The Government’s Decree No. 89/2019/ND-CP dated November 15, 2019 stipulates that a general aviation business licence would be cancelled if the provider does not receive the AOC in 36 months after the licence is granted.

The CAAV informed Globaltrans Air about the cancellation of the licence in line with regulations, but it yet to receive any response from the company.

Globaltrans Air was established in July 2014 in Ho Chi Minh City with charter capital of 100 billion VND (over 4.37 million USD).

Previously, the Transport Ministry granted a general aviation business licence to Globaltrans Air in April 2015, and extended the license in April 2018.

According to CAAV, Vietnam currently has four businesses operating in the general aviation industry and meeting requirements of the licence, comprising Vietstar Airlines, Green Planet Airways JSC, Vietnam Helicopter Corporation and Hai Au Aviation JSC.

Finance ministry issues new law for Debt and Asset Trading Corporation

The Ministry of Finance has just issued a document on the financial regulations of Viet Nam's Debt and Asset Trading Corporation (DATC), effective from September 15, 2021.

Under Circular 62/2021/TT-BTC, DATC is entitled to establish ownership, management and use rights over debts and assets it purchased and received; perform the management, use and accounting of debts and assets according to the provisions of this circular and the current provisions of relevant laws.

Each debt DATC purchased is identified as a commodity. The corporation is responsible for organising the accounting and tracking of each purchased debt.

For debts and assets received from enterprises with 100 per cent charter capital held by the State, the corporation manages, monitors the assets, reports the financial situation to the State and handles the assets in accordance with the provisions of the circular.

The conversion of debt into contributed capital of enterprises with 100 per cent of charter capital owned by the State shall be carried out according to a written plan approved by the competent authority.

For other enterprises, the conversion of debt into contributed capital shall comply with the principle of agreement between DATC and the owner of the enterprises.

DATC will divest within 5 years from the date DATC officially becomes a shareholder in enterprises with dominant capital contribution through restructuring. In case DATC has not divested after 5 years, DATC has to report the cause and propose handling measures to the Ministry of Finance.

As for capital use, the corporation is entitled to actively use its own capital to serve business activities, ensuring efficiency, preservation and development of capital and in accordance with the provisions of law. DATC must prioritise resources to support the restructuring, arrangement over the ownership conversion of enterprises with 100 per cent of charter capital owned by the State.

DATC also can use capital to invest outside the corporation, buy debts and assets for business purposes in accordance with the provisions of law and this regulation. DATC is responsible for the efficiency of buying, selling and handling debts and assets according to the market mechanism.

The corporation uses capital to perform tasks assigned by competent authorities in accordance with the corporation's business lines. It uses its operating capital to repair and upgrade assets for the purpose of increasing value and facilitating the settlement of assets to recover capital.

DATC is responsible for preserving and developing the State capital invested in enterprises in accordance with the law. The preservation of capital of the enterprises is carried out by the following measures: use and manage capital and assets, distribute profits, buy property insurance, promptly handle the value of lost assets, irrecoverable debts and set up provisions for risks in accordance with the provisions of this circular. 

Programme promotes India-Mekong Sub-region cross-border trade

A programme to promote cross-border trade connectivity between India and countries in the Greater Mekong Sub region (GMS) was jointly held by trade promotion agencies of Vietnam, India, Thailand and Cambodia on August 19.

The programme is part of activities of the Mekong - India SME Internationalisation Programme funded by the Asian Development Bank (ADB) to integrate small and medium-sized enterprises (SMEs) of India and GMS member countries into global value chains and promote the India-GMS trade connectivity.

At the event, representatives of Vietnam, India, Thailand and Cambodia briefed on the business environment in their respective countries and shared experience in how to facilitate trade and investment cooperation between the countries.

Citing data from the Vietnam Association of Small and Medium-sized Enterprises, deputy head of the Trade Promotion Agency of Vietnam Bui Thi Thanh An said Vietnam has about 700,000 SMEs, accounting for about 97.5 percent of the total number of enterprises and contributing up to 45 percent of the gross domestic product (GDP).

The level of internationalisation of Vietnam has greatly improved since its economic reforms in the late 1980s, An said, noting that the country has officially joined and signed 14 valid free trade agreements (FTA), and one is about to take effect, while engaging in negotiations on two others.

Vietnam is currently one of the countries in the world that exports many important commodities such as rice, coffee, pepper, seafood, footwear, garments and electronics, while its imports mainly focus on commodity groups serving production and export.

Two-way trade between Vietnam and India grew strongly in the first seven months of 2021, hitting 7.46 billion USD, with Vietnam's exports surged 31.78 percent year-on-year to 3.4 billion USD and imports 63.7 percent to 4.06 billion USD.

Programme promotes India-Mekong Sub-region cross-border trade hinh anh 3
Deputy head of the Trade Promotion Agency of Vietnam Bui Thi Thanh An speaks at the event (Photo: VNA)

Participants said amid the complicated development of COVID-19 pandemic, governments should take measures to help their SMEs to move beyond national borders and expand markets.

According to An, SMEs face many competitive challenges and vulnerability in international trade. Vietnam has issued many policies to support SMEs to overcome difficulties and promote their potential and strengths.

However, due to its limited resources, the Vietnamese Government always wishes to receive support from international institutions, especially large institutions such as ADB, she said.

Joint Secretary of the Ministry of Micro, Small and Medium Enterprises of India AlkaNangia Arora said in the context of the COVID-19 outbreak, businesses of countries need to optimise technology to connect with each other because they are all part of international supply chains.

Representatives of Cambodia and Thailand expressed their hope that countries would successfully cooperate in the Mekong - India SME Internationalisation Programme.

Domestic Advisory Group set up under EVFTA

Production at a garment company in the northern province of Thai Nguyen. (Photo: VNA)

Minister of Industry and Trade Nguyen Hong Dien has signed a decision on the establishment of a Domestic Advisory Group (DAG) under Article 13.15 of Chapter 13 on Trade and Sustainable Development, the EU-Vietnam Free Trade Agreement.

The DAG operates as a forum and has neither legal status nor its own stamp and bank account. It will operate in a self financing mechanism.

The DAG has the function and task of collecting and presenting viewpoints, making recommendations, advice and feedback relating to the implementation of the chapter on trade and sustainable development in the EVFTA.

Those viewpoints and recommendations will be submitted to the EVFTA’s Committee on Trade and Sustainable Development.

Members of the DAG Vietnam are associations, non-governmental organisations and non-profit organisations of Vietnam, which operate legally in Vietnam and represent legitimate interests related to trade and sustainable development in Vietnam.

The list of members of DAG Vietnam issued in the decision’s appendix comprises the Vietnam Chamber of Commerce and Industry (VCCI), the Institute for Workers and Trade Unions under the Vietnam General Confederation of Labour (VGCL) and the Centre for Sustainable Rural Development.

Vietnamese products to be promoted in Singapore

The Vietnam National Brands Week 2021 in Singapore – Hybrid Expo on Halal and Processed Food Products will be organised in Singapore from August 23-28 in both face-to-face and online forms by the Vietnam Trade Promotion Agency of the Ministry of Industry and Trade, the Vietnamese Embassy and the Vietnam Trade Office in Singapore.

The event is hoped to offer a good chance for Vietnamese businesses to promote Halal and processed food products in the island city-state, thus strengthening trade cooperation in food and agriculture to mitigate the economic impact of the COVID-19 pandemic.

This is the first event of this kind to be held in Singapore with the aim of increasing awareness among the Singaporean business community and consumers about Vietnam's national brands.

According to Vietnamese Trade Counsellor in Singapore Tran Thu Quynh, 36 Vietnamese enterprises registered to exhibit about 500 high-quality food brands at the event, including tea, coffee, nuts, spices, sauces, beverages, dairy and pastry products, fruits and fruit powders, dried sea food, canned food.

The expo is a great effort of the MoIT to support Vietnamese businesses in strengthening their international promotion activities and seeking export orders amid the COVID-19 pandemic, Quynh said.

In the framework of the expo, an online trade conference for Halal products and processed foods of Vietnam and Singapore, and a offline business-to-business (B2B) matching event will be organised, enabling businesses of both sides to interact and exchange information on benefits of free trade agreements, products and other business procedures.

Shares climbs on the expiration date of future contracts

On the Ho Chi Minh Stock Exchange, the VN-Index increased 1.02 per cent to close the day at 1,374.85 points. The southern bourse’s index decreased slightly in the two previous sessions.

Large caps in the VN30 basket (which tracks the top 30 shares by market value and liquidity) gained value in the last trading minutes. The most influential stocks included Vingroup (VIC) which climbed more than 6 per cent; Vietcombank (VCB), up 1.8 per cent; Vinhomes (VHM), up 0.9 per cent; steelmaker Hoa Phat Group (HPG), up 1 per cent; Masan Group (MSN), up 1.3 per cent; Vietnam Rubber Group (GVR), up 3.3 per cent; and Saigon Securities Inc (SSI), up 4.2 per cent.

According to market insiders, Thursday is the expiration date for listed derivative contracts so the market saw significant fluctuations in the VN30 shares.

The VN30 Index increased 1.04 per cent to 1,505 points but the VN30F2108 closed five points lower than VN30 at 1,500 points.

Besides large-caps, money was also poured into shares of securities firms, property developers and chemical-plastic manufacturers. These sectors increased by an average of more than 2 per cent on Thursday, according to data on the vietstock.vn.

Liquidity was good with more than 728 million shares worth VND25.5 trillion (US$1.1 billion) traded here, up around 5 per cent in both volume and value compared to the previous session.

However, prolonged net selling by foreign traders cast a shadow on the market. Foreigners continued to offload shares worth a net value of VND669 billion in the HCM City market. Their sales focused on SSI (VND703 billion) and Novaland Investment (VND110 billion).

However, this value was still lower than the previous two sessions with a total net sell value of VND1.4 trillion on Tuesday and VND1.9 trillion on Wednesday.

According to BIDV Securities Co, though foreign investors continued to be strong net sellers, the current high liquidity will strengthen the supportive force of the market.

Meanwhile, analysts at Agribank Securities Co advised investors to avoid disbursing in large-caps which have increased substantially, especially stocks that are being sold by foreign investors and exchange-traded funds to minimise risks in the short term.

On the Ha Noi Stock Exchange, the HNX-Index edged up 0.36 points to 346.07 points. The northern bourse’s index increased 0.5 per cent on Wednesday.

More than 165 million shares worth VND4.1 trillion were exchanged on Ha Noi’s bourse on Thursday.

Foreign traders turned to be net buyers here, picking up shares worth a net buy value of VND247 billion. 

Realty stocks attract foreign investment funds

The securities market is witnessing foreign investment funds like Dragon Capital, VinaCapital and PYN Elite Fund making transactions involving and big investments in real estate stocks.

An Gia Real Estate Investment and Development Corporation has announced a group of foreign investors managed by Dragon Capital have become its major shareholders after a successful purchase of more than 7.8 million stocks from the company.

Meanwhile, realty developer Nam Long Investment Corporation has unveiled information about its issuance of 60 million stocks, whose listed buyers include seven foreign funds such as Dragon Capital and PYN Elite Fund.

A new report by VNDIRECT Securities Corporation showed that the realty market will bounce back when the pandemic is put under control.

VNDIRECT held that real estate supply is gradually recovering thanks to the easing of legal policies. Meanwhile, the demand has been boosted by the recovery of the market on a large scale. Home loan interest rates remain low and the speed of infrastructure development accelerates. It is expected that the market is likely to enter a favorable time from the fourth quarter of this year.

According to Agribank Securities (Agriseco), foreign direct investment (FDI) is projected to grow strongly in the coming time as super corporations are gradually stabilising after their restructuring under the impact of the COVID-19 epidemic. Vietnam is an ideal destination for FDI inflows given the current wave of industrial production shifting. Large corporations such as Apple, Samsung, and Foxconn are expanding factories in the country, generating benefits for real estate businesses involved.

Techwire Asia: Vietnam could become green energy powerhouse in Asia

Vietnam has shown the world its capability to accelerate clean energy solutions, with the highest installed capacity of solar power in Southeast Asia and the government’s commitment to boosting energy supply and strong public demand for improved air quality, the Malaysia-based Techwire Asia website said in an article on August 19.

According to the tech news website, Vietnam recognises that the transition to green energy has never been more urgent. As one of the fastest-growing economies in Southeast Asia, the country has demonstrated its seriousness in pursuing the green energy transition especially when it comes to embracing solar power.

The article cited a World Bank’s report that said Vietnam now boasts the highest installed capacity of solar power in Southeast Asia, generating 16,500MW at the end of 2020. Separate statistics by the International Renewable Energy Agency (IRENA), showed that Vietnam, as of the end of 2020, was within the top 10 countries in the world with the highest capacity of solar energy installed.

The article said considering the country’s high solar PV potential and its ambitious green energy goals come 2050, Vietnam has all the means to become a regional and global leader in renewables. It added that there is also a strong case for wind power projects as well, considering that the country has one of the best wind resources in Southeast Asia, with an estimated potential of 311 GWs.

Market experts reckoned if Vietnam retains its lightning pace of renewable energy expansion from the last two years, it will further climb the ranking, potentially surpassing countries like Australia and Italy in renewable energy development and innovative energy solutions, according to the article.

It was of the view that the Vietnamese Government's commitment to boosting energy supply and strong public demand for improved air quality has been important underlying drivers in this direction. Well-designed and executed supporting regulations and policies such as feed-in-tariffs (FiT), tax incentives, and waiver of land lease are also considered the underlying factors driving renewable energy growth, especially solar, in the country. 

The global consultancy company McKinsey said while Vietnam’s current energy plan is ambitious, it can become better. It concluded that a renewables-led pathway can unlock a plethora of opportunities for the country, including saving 10 percent of overall power costs, cutting down 1.1 GTs fewer greenhouse gas emissions, and others.

Publisher offers food for thought during pandemic

As book sales plummet during the COVID-19 lockdown, one of the leading publishers in Viet Nam has made the unorthodox decision to sell food via its website.

During the pandemic, Ho Chi Minh City Book Distribution Joint Stock Company (Fahasa) has had to close most of its 120 bookstores across the country except some in the northern parts while revenue in July 2021 was only 30 per cent of the same period last year.

Though books are considered essential food for the soul, they are not considered essential during the pandemic, especially when people need food delivered to their homes, so the publisher is now offering food on its website, which normally sells books and stationery.

Though it is one of the most well-known publishers in the country, hot items on Fahasa are no longer copies of War and Peace, but vegetables, fruit, eggs and others foods.

Living near An Dong market in District 5, HCM City, Nguyen My Hanh, stopped shopping in the market a month ago as she wants to protect her parents, who are over 80-years of age, from contracting the virus.

Instead, Hanh shops at different channels, including from the publisher. As a book lover, Hanh told Viet Nam News: “It is both convenient and heartbreaking for me to see that a publisher I like has to do this to stay open. They even offered me a promotion code for buying food.”

With more than half of the bookstores of the publisher closed, chairman of Fahasa Pham Minh Thuan said the online team was still active. Though he did not clarify sales of food, he said: "E-commerce makes a big contribution to Fahasa's revenue, more than VND30 billion (US$1.3 million) per month."

According to Pham Nam Thang, acting director of the publisher, its revenue in 2019 before the pandemic was VND3.7 trillion.

Thang told Viet Nam News: "Though the food items do not much contribute to the sales of the firm, we ran it to help people in the city to access food easily with our online operation and storage system."

Thang said as Fahasa operated in 47 cities and provinces of Viet Nam and had been developing the online platform for over three years, it had a distribution advantage when it came to selling food.

Another player in market, Alpha Books, said their revenue in the first 6 months of the year only reached 84 per cent compared to the same period in 2020, while Nha Nam Culture and Communication Joint Stock Company closed six bookstores, with its revenue only reaching 76 per cent compared to the same period in 2020.

Though not all selling food like Fahasa, online book sales have helped publishers to ease the difficulties during the pandemic. Big chains such as Phuong Nam Bookstore, Thai Ha Bookstore, Nha Nam and Chibooks announced that their online revenues increased by 10 to 20 per cent.

Thanks to strong promotions on social networks with livestreams, as well as videos on Facebook, YouTube, Zalo, books are continuing to sell well online.

According to incomplete statistics from the first half of the year, buying and selling books on e-commerce platforms such as Tiki, Lazada, Shopee has become main channel, accounting for over 65 per cent of the market.

As well as selling food, Fahasa also works with schools across the country to deliver textbooks to student homes in the pandemic in case they have to study from home in the coming school year.

Programme promotes India-Mekong Sub-region cross-border trade

A programme to promote cross-border trade connectivity between India and countries in the Greater Mekong Sub region (GMS) was jointly held by trade promotion agencies of Vietnam, India, Thailand and Cambodia on August 19.

The programme is part of activities of the Mekong - India SME Internationalisation Programme funded by the Asian Development Bank (ADB) to integrate small and medium-sized enterprises (SMEs) of India and GMS member countries into global value chains and promote the India-GMS trade connectivity.

At the event, representatives of Vietnam, India, Thailand and Cambodia briefed on the business environment in their respective countries and shared experience in how to facilitate trade and investment cooperation between the countries.

Citing data from the Vietnam Association of Small and Medium-sized Enterprises, deputy head of the Trade Promotion Agency of Vietnam Bui Thi Thanh An said Vietnam has about 700,000 SMEs, accounting for about 97.5 percent of the total number of enterprises and contributing up to 45 percent of the gross domestic product (GDP).

The level of internationalisation of Vietnam has greatly improved since its economic reforms in the late 1980s, An said, noting that the country has officially joined and signed 14 valid free trade agreements (FTA), and one is about to take effect, while engaging in negotiations on two others.

Vietnam is currently one of the countries in the world that exports many important commodities such as rice, coffee, pepper, seafood, footwear, garments and electronics, while its imports mainly focus on commodity groups serving production and export.

Two-way trade between Vietnam and India grew strongly in the first seven months of 2021, hitting 7.46 billion USD, with Vietnam's exports surged 31.78 percent year-on-year to 3.4 billion USD and imports 63.7 percent to 4.06 billion USD.

Participants said amid the complicated development of COVID-19 pandemic, governments should take measures to help their SMEs to move beyond national borders and expand markets.

According to An, SMEs face many competitive challenges and vulnerability in international trade. Vietnam has issued many policies to support SMEs to overcome difficulties and promote their potential and strengths.

However, due to its limited resources, the Vietnamese Government always wishes to receive support from international institutions, especially large institutions such as ADB, she said.

Joint Secretary of the Ministry of Micro, Small and Medium Enterprises of India AlkaNangia Arora said in the context of the COVID-19 outbreak, businesses of countries need to optimise technology to connect with each other because they are all part of international supply chains.

Representatives of Cambodia and Thailand expressed their hope that countries would successfully cooperate in the Mekong - India SME Internationalisation Programme.

Australia delays conclusion on anti-dumping probe into Vietnam’s painted steel strapping

The Anti-Dumping Commission of Australia (ADC) has announced the fifth extension of time granted to issue the final report on an investigation into the alleged dumping and subsidisation of painted steel strapping from China and Vietnam.

Accordingly, the due date for the final report issuance is now extended to October 26, 2021, the Trade Remedies Authority of Vietnam cited the ADC notice.

The ADC also officially concluded that the Sam Hwan Vina Co. Ltd, the largest Vietnamese exporter in this investigation, No 553, has dumped painted steel strapping, but the dumping margin is less than 2 percent, so it decided to terminate the probe into this firm.

With an export turnover of about 4.6 million USD, the Sam Hwan Vina Co. Ltd accounts for 83 percent of Vietnam’s exports of the product, the authority said.

Meanwhile, the investigation into the remaining businesses of China and Vietnam will continue.

The ADC is due to report to the Minister for Industry, Science and Technology in respect of this investigation on or by 26 October this year. The applicant for this probe may request a review of the decision within 30 days of the notice publication, according to the ADC.

Vietnam’s wood product export to France, Europe has good prospect

The export of Vietnam’s wood industry to France and Europe at large have ample room for growth, according to the Agency of Foreign Trade at the Ministry of Industry and Trade.

Vietnam is currently the sixth largest provider of wooden furniture in France, but only makes up 4.5 percent of the European nation’s total import values.

The Agency of Foreign Trade cited data from the International Trade Centre showing that France’s imports of wooden furniture surged by nearly 60 percent against the same period last year to 2.4 billion USD in the first six months of 2021.

Experts forecast that Vietnam’s timber and wood product exports to Europe will surge in the latter half of 2021. By that time, COVID-19 is expected to be brought under control and European countries are projected to loosen restriction measures and facilitate trade flows.

The recovery of the European economy will be a driving force for Vietnam's export of timber and wooden products to the market.

In addition, the European Union - Vietnam Free Trade Agreement (EVFTA) is hoped to benefit the sector thanks to the removal of non-tariff barriers and facilitation of the import of advanced equipment, thus improving productivity and competitive edge of Vietnam’s wood industry in the European market.

Commercial banks urged to meet rate cut commitments

The State Bank of Vietnam (SBV) has requested commercial banks to reduce lending interest rates as per previous commitments. 

Under recently released Official Dispatch No. 5901/NHNN-TD, the SBV requires the interest rate cut and free banking service provision to support customers affected by the COVID-19 pandemic.

SBV’s Deputy Governor Đào Minh Tú said the central bank would strengthen supervision of the implementation of the dispatch.

Accordingly, the governor has directed the chairmen of the board of directors and the general directors of commercial banks to take responsibilities towards society and join forces with the Government to repel the pandemic and support people, businesses and the economy to overcome difficulties through effective and practical solutions such as reducing interest rates and fees.

Tú called for commercial banks to meet their commitments on reducing lending rates, which they had registered with the Vietnam Banks Association in Official Dispatch No. 248/NHNN-PLVN dated July 16, 2021, to maintain the reputation of each bank and the whole banking industry.

The latest dispatch of the SBV noted that the implementation of programmes to reduce interest rates and service fees should be substantive and effective with specific results. Banks must make public their policies and inform customers specifically about the policy of reducing interest rates and service fees so that customers can access the banks' support policies.

The SBV said it would make public the implementation results of each bank's commitments in the media every month. Besides, it would strengthen supervision of the commitments of the entire commercial banking system and each commercial bank branch in provinces and cities nationwide.

According to Tú, besides restructuring due debts and interest, and keeping the debt classification unchanged, lowering interest rates is one of the most practical and specific solutions to supporting businesses right now. Since the latest outbreak of the pandemic, commercial banks made interest rate cuts worth about VNĐ18.83 trillion for businesses, according to preliminary statistics.

Following the direction of the Government and the Prime Minister, the SBV has directed commercial banks to share responsibility and accompany businesses by further reducing interest rates after trying to minimise operating costs and reducing their own profits.

The SBV noted commercial banks are also businesses, but at this time, sharing with businesses and the people is the common responsibility of the whole of society, each bank and each bank employee.

Previously, under the SBV’s direction, the Vietnam Banks Association held a meeting with the participation of 16 commercial banks who voluntarily agreed to cut interest rates of about VNĐ20.3 trillion from now until the end of this year, depending on the size of the bank, to support the economy.

Besides the general support package, four large State-owned commercial banks - Vietcombank, VietinBank, Agribank and BIDV - promoted a pioneering role in the banking system, committing to make a further interest rate cut worth about VNĐ1 trillion each to aid businesses and people in HCM City, Bình Dương and other cities and provinces that have been facing the most difficulties due to the pandemic.

The four banks will also offer free fees for all banking services for people and businesses in the localities.

Besides interest rate cuts, the SBV has also been directing credit institutions to reduce fees for payment, money transfer and other credit and monetary services for businesses, in a package which has been estimated to be worth about VNĐ1.1 trillion to date. 

ST25 rice faces scarcity of supply source in US

Despite the price of Vietnamese ST25 rice not witnessing a significant increase, there remains a scarcity of supply source in the United States.

A representative of the US’ Great Wealth revealed that a shortage of supply source of ST25 rice has developed after five months of being distributed to consumers throughout the East Coast.

This situation can be attributed to difficulties faced during the transportation process which has caused high costs and late delivery.

The rental cost of one container to transport rice from the nation to the US stands at approximately US$22,000, representing a four-fold increase compared to the period at the end of March.

Currently, it is possible to keep the price of ST25 rice relatively stable over the short term as there remains a stock of ST25 rice available in bonded warehouses of importers.

According to several export enterprises, in order to meet the increasing demand among consumers in the East Coast region for ST25 rice, there should be between six and seven containers of rice per month. However, the supply capacity of export businesses has been reduced by nearly two-third.

Nguyen Manh Hung, director of the Vietnam Trade Center in New York, said the ongoing complicated developments relating to the COVID-19 pandemic in southern Vietnamese provinces has caused difficulties in the process of harvesting and producing rice.

Furthermore, there remains a shortage of empty containers originating from Asia which has led to high transportation costs emerging, thereby negatively affecting Vietnam's agricultural exports.

According to statistics compiled by the General Department of Vietnam Customs, the country exported 7,675 tonnes of rice worth US$5.8 million to the US market during the five months of the year.

However, Vietnamese rice revenue in the fastidious market remains modest compared to regional peers such as India and Thailand.

Growth prospects in rest of 2021 under the microscope

Many sectors with impressive second-quarter performance are expected to retain their growth momentum in the latter part of 2021, leveraging favourable supportive factors.

Accordingly, Vietnam had witnessed 24 per cent growth in export-import value on-year in the first quarter and a 39 per cent jump in the second quarter, even surpassing pre-pandemic levels. This is, however, not unique to Vietnam but is reported across the entire Asia region.

Generally in the first six months of 2021, Vietnam posted an estimated $157.6 billion in total export value, up 28.4 per cent on-year. During the period, the US was Vietnam’s largest export market with $45.1 billion, a 43.3 per cent jump on-year, while exports to the EU amounted to $19.3 billion, up 17.4 per cent.

A rebound in consumer demand in Vietnam’s top export markets like the US and the EU has benefited export-oriented sectors like seaport and logistics.

Le Nguyen Nhat Chuyen, analyst at Korean-backed Maybank Kim Eng Securities, said that the COVID-19 pandemic has caused serious disruptions in logistic services, leaving seaports overloaded.

Social distancing has caused a shortage of manpower and slowed down goods circulation. Many countries have imported more than they exported, leading to an imbalance in container supply, pushing logistics costs to new heights.

Shipping disruptions abounded in 2021 due to the COVID-19 pandemic and the staggered reopening of markets across the globe, holding up shipping firms.

The COVID-19 situation, however, is intensifying in Vietnam, forcing many factories to operate at reduced capacity while facing labour shortages, making timely delivery difficult.

Meanwhile, in the fertiliser sector, domestic prices were affected by the price of imported fertiliser which went up sharply on the back of soaring logistics (shipping) costs.

Self-reliant fertiliser businesses like PetroVietnam Fertiliser and Chemicals Corporation (DPM) and PetroVietnam Ca Mau Fertiliser JSC (DCM) will be able to maintain high-profit growth in successive quarters.

At the same time, leveraging a rebound in consumer demand, many textile, clothing, and fibre firms reported upbeat profits thanks to increasing order intake and prices in the first half. Leading players have received export orders for the whole of 2021 from the US, Japan, EU, or South Korean markets.

In addition, thanks to Vietnam’s reputation gained from containing the previous resurgence of the COVID-19 pandemic, a raft of global fashion brands have shifted production to Vietnam when the pandemic was taking a toll in big apparel exporting countries like India and Bangladesh.

The COVID-19 situation, however, is intensifying in Vietnam, forcing many factories to operate at reduced capacity while facing labour shortages, making timely delivery difficult.

The Vietnam Textile and Apparel Association (Vitas) assumed that businesses in virus-hit localities could lose export orders. Pressure would abate with the acceleration of the government’s COVID-19 vaccination programme, from there containing the pandemic and enabling firms to rebound operations.

The seafood sector is another beneficiary, with leading players like Vinh Hoan Corporation (VHC) or Sao Mai Group (ASM) posting double-digit growth in their revenue in H1. The cost burden, particularly logistics cost, however, has put a dent in the firms’ profits, leading to only modest growth.

According to the Vietnam Industry and Trade Information Centreunder the Ministry of Industry and Trade, Vietnam’s big export markets like the US, UK, Japan, the EU, Canada, and China gradually overcoming COVID-19 through extensive vaccination would lead to a sharp rise in seafood import demand.

Vinh Hoan Corporation, the largest pangasius exporter in Vietnam, reported that its exports to the US rose 31 per cent on-year in July as restaurants reopened in the market resumed operation. Accordingly, the company posted VND765 billion ($33.2 million) in revenue in July, a 21 per cent jump on-year.

Wood production is also looking at upbeat growth potential. According to the General Department of Customs, the value of Vietnam’s wood and wood product exports soared 55 per cent on-year reaching $9.58 billion in the first seven months, with the export of wooden items coming to $7.44 billion, a 64 per cent jump.

By early July 2021, Duc Thanh Wood Processing JSC (GDT), a leading player based in Ho Chi Minh City, has received export orders of more than $14.5 million, taking up 86 per cent of the order intake for 2021.The company has raised the price of their products from Q2 to mitigate rising input cost.

Similarly, residential real estate is showing solid growth potential in the medium and long-term, powered by accelerated public disbursement for infrastructure projects.

However, residential real estate projects finalise profit after product handover. Accordingly, businesses with effective sale activities and those that can maintain construction progress are expected to report positive results.

Meanwhile, the building materials sector, particularly steel, will also benefit from public investment. Experts at SSI Securities assumed that accelerated public investment will drive up steel demands.

US - largest buyer of Vietnam’s plastic products in H1

The US was the top destination of plastic products from Vietnam in the first half of 2021, accounting for 36.5 percent of total shipments, according to the General Department of Vietnam Customs.

Vietnam recorded a year-on-year surge of 41.5 percent in the H1 export value of plastic products, which approximated 2.33 billion USD, preliminary statistics show.

Following the US, Japan was the second largest importer of these items, making up 14.3 percent.

The Ministry of Industry and Trade said FDI companies are the main exporters of plastic products when they hold 60 percent of the turnover.

Meanwhile, local businesses have just sold plastic packaging bags, components, and spare parts that have low added value to foreign partners./.

Vietnamese products to be promoted in Singapore

The Vietnam National Brands Week 2021 in Singapore – Hybrid Expo on Halal and Processed Food Products will be organised in Singapore from August 23-28 in both face-to-face and online forms by the Vietnam Trade Promotion Agency of the Ministry of Industry and Trade, the Vietnamese Embassy and the Vietnam Trade Office in Singapore.

The event is hoped to offer a good chance for Vietnamese businesses to promote Halal and processed food products in the island city-state, thus strengthening trade cooperation in food and agriculture to mitigate the economic impact of the COVID-19 pandemic.

This is the first event of this kind to be held in Singapore with the aim of increasing awareness among the Singaporean business community and consumers about Vietnam's national brands.

According to Vietnamese Trade Counsellor in Singapore Tran Thu Quynh, 36 Vietnamese enterprises registered to exhibit about 500 high-quality food brands at the event, including tea, coffee, nuts, spices, sauces, beverages, dairy and pastry products, fruits and fruit powders, dried sea food, canned food.

The expo is a great effort of the MoIT to support Vietnamese businesses in strengthening their international promotion activities and seeking export orders amid the COVID-19 pandemic, Quynh said.

In the framework of the expo, an online trade conference for Halal products and processed foods of Vietnam and Singapore, and a offline business-to-business (B2B) matching event will be organised, enabling businesses of both sides to interact and exchange information on benefits of free trade agreements, products and other business procedures./.

Offshore wind in Vietnam: lack of rules on environmental impact assessment

Local experts have warned that Vietnam lacks regulations on environmental impact assessment (EIA) for offshore wind power projects despite lots of potentials.

Review on Vietnam’s law regarding EIA shows that regulations on project examination remain brief and general without full guidance for offshore wind projects, experts said at the online conference titled “Offshore wind development in Vietnam: Environmental and social impact assessment regulations” held on August 18.

At the event, policymakers, researchers, businesses, and international organizations exchanged views on the prospects of offshore wind power but they had multidimensional discussions about environmental and social impact assessment regulations in Vietnam.

An insufficient legal document has resulted in differences between domestic EIA and international standards, Cao Thi Thu Yen from the Vietnam Initiative for Energy Transition (VIET).

Offshore wind power projects occupying a vast area might overlap with other activities in oil and gas exploitation, telecommunications, and habitat of seabirds, fish, corals, among others, she said.

Investors, therefore, should consider environmental and social regulations for good compliance in addition to information on investment cost and license time, Yen suggested.

Associate Prof. Nguyen Chu Hoi, deputy head of the Vietnam Fisheries Society (VINAFIS), stressed the importance of selecting projects that harm the maritime environment, ecology, and fishing. Therefore, concise and detailed regulations will enable the authorities to do that in an easy way.

“Importantly, environmental impact assessment must be done carefully, for example, on how the impact of underwater sound on corals and sea creatures is and how to avoid overlapping development of wind power, oil and gas, and fishing,” Hoi noted.

Sharing the same idea, Deputy General Director of Russia-Vietnam Joint Venture (Vietsovpetro) Vu Mai Khanh said the role of state agencies in verifying EIA and supervising the projects is essential to the development of the projects.

Andy Ho, head of Government and Regulatory Affairs, Asia-Pacific New Markets at Danish multinational power company Ørsted A/S, recommended that there should issue EIA that is in line with international standards to facilitate the investment.

Yen from VIET stressed the need to issue a legal document that meets international standards to make EIA the foundation for the authorities’ decisions on licensing and supervising offshore wind power projects.

According to the World Bank’s “Offshore Wind Roadmap for Vietnam” report released a few months ago, offshore wind likely contributes 12% to Vietnam’s power by 2035.

Offshore wind is projected to supply between 5% and 12% of Vietnam’s electricity needs by 2035 in two possible growth scenarios built by the World Bank (WB).

It’s equivalent to 11 GW and 25 GW by 2035 in the low and high growth scenarios, respectively.

The World Bank’s experts made some recommendations for the successful offshore wind industry in Vietnam, including stable policies and pipeline visibility; a coherent industrial strategy; resourced institutions; competitive environment; supportive and engaged public; a commitment to safety; and using the best locations.

Vietnam can accelerate offshore wind projects rapidly over the next few years. The success of this acceleration will depend on the clarity of the government’s long-term ambition and the actions that the government takes to facilitate growth, they said.

Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan/Hanoitimes 

VIETNAM BUSINESS NEWS AUGUST 19

Vietnam targets 21,000 MW of offshore wind power by 2045