Science and technology, which has played a significant role in promoting socioeconomic development, is also the motivation and key for Vietnam to complete the net-zero emission commitment by 2050, which was given by Prime Minister Pham Minh Chinh at the 26th UN Climate Change Conference (COP26), according to experts.

Nguyen Tien Tai, Vice Director of the Department of Science and Technology for Economic Technical Branches under the Ministry of Science and Technology, said that recognising the significance of science-technology as the key for national socioeconomic development, the Prime Minister has issued a Decision approving a national strategy on science, technology and innovation promotion until 2030.

The strategy underlined the need for research and application and mastering of technologies in greenhouse gas (GHG) emission reduction, and the strengthening of application of green production and environmental-friendly solutions as well as waste treatment and recycling technologies at a reasonable price.

It also stressed the need for developing, applying and transferring advanced technologies and modern equipment for waste recycling as well as technologies to gather and store carbon released from thermal power plants and other carbon-causing production facilities.

In order to implement the assigned tasks, the MoST has approved a programme to research, apply and develop energy technologies, which has been implemented since July 2022.

The objectives of the programme include applying and mastering advanced technologies and technological equipment in effectively exploring, exploiting, producing and using primary energy sources, clean energy, bio-energy and renewable energy, contributing to reducing greenhouse gas emissions and realising the national energy development strategy and orientations.

It also aims to develop technologies in exploiting solar, wind, biomass, hydrogen and some other new forms of energy.

Alongside, the MoST Minister has also approved some other similar programmes in the areas of environmental industry, environmental protection, natural disaster prevention and control, and climate change response.

Tai said that the ministry is seeking partners to implement tasks in international cooperation in science and technology, while seeking financial support for the development, application and transfer of advanced solutions, models and technologies.

In the time to come, the MoST will continue to focus on implementing its tasks in high-tech application and development and mobilising resources for the work, he said.

Hopes are high for many sectors, spurring VN-Index

The VN-Index is expected to continue its bullish trend thanks to the brighter outlook of many sectors in the last six months of 2023, driven by monetary and fiscal policies.

Trần Trương Mạnh Hiếu, Head of the Strategy Analysis Department of KIS Securities Vietnam noted that the stock market has moved in a sideways fashion over the first half of 2023 due to the economic downturn and the VN-Index fluctuated in the range of 1,000 - 1,120 points. In the second half of 2023, VN-Index may form an uptrend thanks to the prospects of economic recovery.

GDP growth in the second quarter of 2023 reached 4.14 per cent, higher than the rate of 3.32 per cent in the first quarter. The recovery of the tourism industry is also a bright spot, with the number of international tourists arriving in Việt Nam in the first six months reaching nearly 5.6 million people, more than 13 times the same period last year, Hiếu said.

It is expected that the reopening of China will make the number of Chinese visitors to Việt Nam increase sharply in the second half of this year. According to the General Statistics Office, by the end of June 2023, investment capital sourced from the state budget increased by 20 per cent compared to the same period last year. It is forecast that public investment disbursement will accelerate, creating a great driving force for economic growth.

According to Nguyễn Thị Hằng Nga, Deputy General Director of Vietcombank Fund Management Company (VCBF), favourable macroeconomic conditions will broadly persist as monetary and fiscal policies such as reducing interest rates and VAT will support consumption and investment demand, both of which have been severely affected by declining exports and high rates.

Public investment and tourism will be important drivers of economic growth this year.

In the stock market, lower deposit interest rates help increase the attractiveness of the stock investment channel. However, investors should not underestimate the risks such as declining exports and corporate profits and unstable investor sentiment.

“We are consistent with our investment strategy in construction stocks, information technology, and pharmaceuticals, specifically in companies that can maintain revenue and profit growth even in economic headwinds,” she said.

“We also see opportunities in companies with poor results, but whose share prices have fallen sharply and thus become attractive, such as some in the real estate sector and in consumer goods.”

“Many bank stocks are attractively priced but the risk of asset quality deterioration is not high thanks to the positive signs in the macro-economy, falling interest rates and the government's efforts to remove regulatory obstacles for real estate projects,” she said.

The auto business market in the first half of this year was affected by many unfavourable factors such as inflation, high interest rates, and reduced consumer demand, according to Đỗ Tiến Dũng, Chairman of the Board of Directors of the Hàng Xanh Auto Service Joint Stock Company (Haxaco).

Haxaco recorded a decline in business results, with profits of just VNĐ10.4 billion in the first quarter and just VNĐ10 billion in the second quarter, a sharp decrease compared to the same periods last year.

The automobile market showed signs of recovery recently as the Government issued Decree 41/2023/NĐ-CP, reducing registration fees on new cars by 50 per cent in the last six months of 2023 for domestically manufactured and assembled vehicles.

Haxaco has seen more customers since the beginning of July thanks to this stimulus.

However, in the last six months of 2023, the distribution of imported cars is expected to be more difficult than domestically manufactured and assembled cars. Completing this year's business plan would be a challenge for Haxaco, he said.

GDP growth at a low rate in the second half of 2023 poses many challenges for the year-end period, according to Trần Lê Nguyên, General Director of Kido Group Joint Stock Company.

In the next five years, Kido will change the proportion of business segments based on consumer needs and trends.

The company is focusing on spices, fish sauce, seasoning powder and some other items, combined with the existing channel of the oil industry to expand its business.

The spice industry is expected to make a larger contribution to the total revenue, making it easier to develop more channels and reach wider consumers. Besides, Kido is planning to launch some dry cakes too.

Recently, Kido acquired 25 per cent of the Thọ Phát dumpling brand, aiming to increase the ownership rate to 51 per cent and soon to 70 per cent. In the near future, the company will accelerate the expansion of the dumpling and moon cake industry

“We are working hard to fulfil our 2023 target of VNĐ15 trillion in revenue and VNĐ900 billion in pre-tax profit, an increase of nearly 20 per cent and more than 76 per cent respectively compared to 2022,” Nguyên said.

Based on a Euromonitor report, with a population of 100 million, of which 70 per cent are under the age of 35 and tech-savvy, Việt Nam will see higher demand in a wide range of products, from consumer electronics to home appliances, according to Nguyễn Việt Anh, Deputy General Director of JSC FPT Digital Retail.

According to the Ministry of Industry and Trade, the value of the retail market in Việt Nam is expected to reach US$350 billion by 2025. 

Shares to see technical recovery this week

The market is expected to see a technical recovery this week and investors are advised to stop panic selling, experts said.

Shares collapsed last Friday, falling to fifteen-month lows as a series of large-cap stocks plunged to their floor prices, suffering strong selling pressure throughout the trading session.

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) closed Friday at 1,177.99 points, suffering a severe decline of 4.5 per cent.

Việt Nam's stock market ended the trading week with a large-scale sell-off, making the VN-Index drop by nearly 56 points, wiping out the gain of the previous 4 trading weeks combined.

“The effort of cash flow at the support areas was not enough to absorb the supply, so the market gradually dropped and plummeted at the end of the session," said Việt Dragon Securities Co.

"Liquidity increased to a record high, showing that the cash flow was also taking advantage of low prices but the market's bearish inertia was still overwhelming which made it close near the session low.

“As the market has also dropped sharply in a short time, it may temporarily be supported at 1,160-1,170 points and recover technically to re-explore supply and demand. Therefore, investors need to be cautious and manage the portfolio properly.

“At the same time, it is advisable to consider the recovery spans in the coming time to take profits and reduce the weight, prioritising stocks that have shown distribution and weakening signals, to minimise risks for the portfolio.”

Last week, Vingroup (VIC) fell 7.9 per cent and VHM fell 6.7 per cent. These are the two stocks that fell the most on the market. They were followed by large-cap stocks such as BIDV (BID) down 5.4 per cent, VPBank (VPB) down 6.4 per cent, Masan Group (MSN) down 6.5 per cent, PetroVietnam Gas JSC (GAS) down 3.8 per cent.

Meanwhile, FPT Corporation (FPT) gained 4.3 per cent and SSI Securities (SSI) gained 0.5 per cent, the only two stocks in the VN30 basket that supported the market.

During the week, foreign investors continued to net sell VNĐ987 billion, up 34.7 per cent compared to the previous week on HOSE.

“In my opinion, the correction of the market has been predicted before. Thankfully, Saturday and Sunday were the times for investors to regain their composure,” Đinh Quang Hinh, Head of Macroeconomics and Market Strategy Department of VNDirect Securities Corporation, told Việt Nam News.

“Therefore, we expect the market to see a technical recovery next week and investors should stop panic selling. Investors should wait for technical recoveries to lower the proportion of stocks instead of selling off in strong decline sessions. The zone of 1,150 - 1,170 points will be a strong support for the VN-INDEX.

“In the medium term, we maintain a positive outlook on Việt Nam's stock market with the following strong supporting factors: low interest rates; promoted public investment, stimulated consumption such as reducing taxes and fees, increasing base salary, recovery trend of the economy and profits of listed companies in the last months of the year.

“For investors who are keeping a high proportion of cash, this adjustment can bring a "good buying point" for investors to accumulate and build a portfolio of stocks for medium and long-term goals.”

At present, the market had fallen sharply in a short time, so it might temporarily be supported at 1,160- 1,170 points and technical recovery to re-explore supply and demand, said Việt Dragon Securities Co.

“Therefore, investors need to be cautious and manage the portfolio appropriately. At the same time, consider the recovery spans in the coming time to take profits and reduce the proportion, giving priority to stocks that have shown distribution and weakening signals, to minimise risks for the portfolio,” it said.

Algerian firm seek partnership with Vietnamese peers

Groupe des Frères Rahmoune (GFR), a family firm of Algeria, had an online meeting with Vietnamese businesses on August 20 to seek partnership in the fields of automobile and motorbike import-export, packaging, agriculture, construction materials, and tourism.

Operating in the fields of commerce, industry and agriculture since 1986 in Algeria, so far the GFR has had 12 member companies, including one specialising in automobile and motorbike import-export in Dubai.

The firm’s business portfolio includes fields of brick and ceramics manufacturing, building materials trade, food industry, tourism, real estate, milk production and bakery, and import and distribution of automobiles and motorcycles. It is expanding to other business areas.

 Vietnamese Ambassador to Algeria Tran Quoc Khanh (L) and GFR CEO Ahmed Rahmoune at the meeting (Photo: VNA)
At the meeting, Vietnamese Ambassador to Algeria Tran Quoc Khanh and Trade Counselor Hoang Duc Nhuan highlighted Vietnam’s economic achievements, potential and strengths in areas of GFR’s interest, and pledged to help connect it with Vietnamese enterprises.

GFR CEO Ahmed Rahmoune showed his interest to setting up partnership with Vietnamese businesses, underlining the possibility of partnering with Truong Hai Auto Corporation (THACO) in importing and distributing buses, tractors and motorcycles. It also wished to cooperate with VinGroup in distributing VinFast electric cars and motorbikes in Algeria.

GFR works with Mecanimex company to seek suppliers of large-sized packages for its cement and clinker factory, and with other Vietnamese firms to find suppliers of molasses to meet the import demand of more than 36,000 tonnes per year for the bakery chains of member companies.

Ahmed Rahmoune said that the firm is seeking a partner to build a water park at the group's coastal resort, and interested in cooperating with Vietnamese peers in other areas such as renewable energy, aquatic farming, pharmaceuticals, and telecommunications.

Vietnam, Indonesia seek stronger investment, trade partnership

Minister of Industry and Trade Nguyen Hong Dien had a working session on August 19 with Indonesian Minister of Trade Zulkifli Hasan on the sidelines of the 55th ASEAN Economic Ministers (AEM) that is taking place in Semarang, Indonesia.

The Indonesian official affirmed that Indonesia always considers Vietnam an important economic and trade partner in Southeast Asia. He noted that although bilateral trade cooperation has developed positively in recent years, there are still some barriers hindering the partnership.

In order to continue to promote bilateral ties, he suggested that Vietnam resume delegation exchange activities as well as cooperation mechanisms, including the annual forum between the two ministries which has been halted for years.

He highlighted the cooperation potential between the two countries in aquaculture and the electric automobile industry. He said that Indonesia hopes to learn from Vietnam's experience in aquatic farming, production and export as well as fisheries activities, which is a strength of Vietnam.

Indonesia also wants Vietnamese investors and businesses to cooperate with their Indonesian peers in electric vehicle (EV) production, a strong sector of Indonesia, he said.

For his part, Dien agreed that the resumption of the bilateral cooperation and information exchange mechanisms is necessary for the two sides to update each other on bilateral cooperation and settle obstacles and problems in bilateral trade ties.

The minister also asked KADIN to continue to work closely with the Ministry of Industry and Trade of Vietnam to have more effective and substantive business support activities in the coming time.

Large potential for mariculture

There was significant potential for Việt Nam to expand marine farming but the focus must be placed on establishing mariculture models which applied modern technologies and sustainable solutions, experts said.

Trần Công Khôi from the Vietnam Directorate of Fisheries under the Ministry of Agriculture and Rural Development, said at a workshop held by Vietnam Agricultural Extension Centre on Wednesday, that Việt Nam had around 500,000ha of water surface that could be used for marine farming, meaning that the potential of mariculture was huge.

Khôi said that the reduction of coastal marine exploitation was inevitable and nothing could replace it better than mariculture. He said that the potential for coastal exploitation was around 3.9-4 million tonnes while the exploited volume was 3.6 million, close to the threshold.

According to Nguyễn Hữu Dũng, President of Việt Nam Seaculture Association, although the potential was large, mariculture in Việt Nam was mainly of small scale run by farmer households with limited application of modern techniques and high risk to cause harms to the environment.

There was also a shortage of linkage in seaculture with no control over quality. In addition, it was difficult for farmers to access credit because their rafts were not recognised as mortgage assets.

Đặng Xuân Trường from the Vietnam Agricultural Extension Centre said that the application of modern technologies in marine farming still faced many difficulties, adding that many technologies were not suitable for the investment capacity of farmers and the situation of each region.

It also took time to change the awareness of farmers in marine farming and encourage them to switch to new models to increase efficiency and protect the environment, Trường said.

He added that it was also necessary to enhance linkage in the production of marine farming to reduce costs.

According to Dũng, the national marine spatial planning, which was the basis for the planning of mariculture, was behind schedule. The progress of approval of the planning must be sped up.

After that, there should be policies to call on farmers and companies to invest in mariculture and apply new technologies in farming. To do that, it was necessary to have stable planning and clear policies, she said.

It was also necessary to speed up the development of standards related to mariculture, he said.

Dũng added that there should be standards for rafts and allow farmers to use their rafts as collateral for bank loans.

Insurance products for mariculture should also be developed, he said.

Nguyễn Thị Hải Bình, general director of STP Group, said that the development of mariculture should be associated with tourism to increase added value for farmers and ensure environmental protection.

Establishing chains in mariculture in combination with tourism was a good model, she said.

Khôi agreed, said that it was a good idea to develop farming cities on the sea where tourists could visit. He said that solutions harmonise the development of tourism and aquaculture should be raised.

Khôi added that the focus should also be placed on expanding markets for products of mariculture. Each market had its own requirements, and the marine farming must strive to meet the requirements to be able to expand exports. 

Private banks lower deposit rates

Private banks have lowered interest rates for deposits with tenors of six months and beyond while state-run banks have kept their rates unchanged.

CBBank currently offers the highest OTC deposit rates. For deposits of less than VND1 billion with terms of six, nine, and 12 months, the bank offers respective rates of 6.8%, 6.9% and 7.1%. NCB closely follows, setting its rates at 6.8%, 6.9%, and 7% for the same tenors.

Online deposit rates have also risen. Banks like VietABank, BaoVietBank, CBBank, NCB, NamABank, PVComBank, HDBank and BacABank are now providing online savings accounts with interest rates starting from 7%. Among them, VietABank has the highest rate at 7.3%.

In January, deposit rates at these banks were as high as 9% per year.

These reductions are in response to the State Bank of Vietnam’s (SBV) policy interest rate cuts aimed at fueling economic growth.

The SBV has also issued directives mandating banks to decrease interest rates for both new and existing loans by a minimum of 1.5 to 2.0 percentage points to support retail and corporate customers.

In line with this guidance, Agribank has introduced a favorable credit program for small and medium-sized enterprises. The bank will reduce annual lending rates by up to 0.7 percentage point compared to prevailing lending rates.

Apartments under VND25mil/m2 hard to find in HCMC

Deputy Director of the HCMC Construction Department Huynh Thanh Khiet said it is extremely hard to find an apartment with a price of under VND25mil/m 2 in HCMC this year since the construction expense alone reaches VND11mil/m 2.

Deputy Director Huynh Thanh Khiet stressed that even social housing cannot have a price of under VND25million/m2 (US$1,047) because the input costs rapidly increase while the available land fund is scarcer day by day. To make the matter worse are restrictions on loan duration and limit for social housing buyers.

Some real estate market research firms voiced that the biggest obstacle to the housing market in HCMC is legal-related issues. Observing the Government’s directions, lately, HCMC has strived to address legal problems in real estate projects.

However, as the land and construction laws are still inadequate and overlapping, the effects of this effort are not as expected. Prolonged time to complete necessary administrative procedures has led to more expenses, which in turn keep apartment prices unacceptably high.

For more people to afford a house in HCMC, it is necessary for state management units and real estate project developers as well as stakeholders to cooperate more closely so that more apartment supplies can be offered at a more reasonable price.

International Travel Expo HCM City to double in size

The 17th International Travel Expo HCM City will double its size and bring together more than 400 exhibitors, according to the HCM City’s Department of Tourism.

ITE HCMC, organised by the department and Việt Nam National Authority of Tourism, will take place from September 7 to 9 at the Saigon Exhibition and Convention Centre.

As the country’s largest and most established annual international travel trade event, ITE HCMC is expected to promote the image of Việt Nam to international visitors and boost tourism.  

The event, with the theme ‘Connectivity, Growth, and Sustainability’, will bring more than 150 international buyers from more than 31 countries and territories, and more than 6,000 B2B trade appointments between buyers and exhibitors will be arranged at the expo.

Lê Trương Hiền Hòa, deputy director of the city’s Department of Tourism, said that the fair would promote trade activities and enhance connections with key tourism markets as well as expand to new markets.

It will also step up tourism promotion and marketing, and enhance the destination’s competitiveness, he said.

New tourism offerings will be developed and showcased at the fair to meet the demand of high-spending and long-stay visitors, he added.

The expo will host a high-level tourism forum on “Digital transformation driving tourism development”, an ASEAN public relations and communications forum on “Destination marketing and sustainable communications” and several seminars on travel and tourism.

Việt Nam welcomed more than 6.6 million international arrivals in the first seven months of the year or 83 per cent of this year’s target, according to the Việt Nam National Authority of Tourism. 

Innovating growth model a requirement for Vietnam: forum

In the current economic context, innovating the growth model is an urgent requirement from both micro and macro angles, heard a business forum held in Ho Chi Minh City on August 17.      

Participants in the event, organised by Forbes Vietnam and some other organisations, pointed out the need for the Vietnamese economy to switch from capital, cheap labour and natural resource-based growth to knowledge-based one.

In particular, enterprises need to convert their growth model based on the effective use of resources and sustainable business strategies to keep up with changes amid the technological revolution. They should adapt their production to sustainable development standards as well as fluctuations in the domestic and global markets.  

The year 2023 witnesses a boom of artificial intelligence (AI), and impacts of technologies will change many business models, they said.

On the part of the Government, the creation of mechanisms for facilitating green production and improving competitiveness will not only meet consumer tastes in key export markets but also help boost green growth in accordance with the global trend.

Aside from opportunities of the green production and export wave, Vietnam can seize chances by capitalising on free trade agreements, especially new-generation ones, to diversify export products and markets, participants noted. 

Talking about the Fourth Industrial Revolution, Nguyen An Nguyen, founder and CEO of Trusting Social, said it is the “dawn” of the era of AI, which affects both social life and economic activities.

Therefore, enterprises should carry out digital transformation step by step but in a methodological manner to practically benefit their operations and improve partners and customers’ experience, he noted.

Nguyen Anh Duc, Director General of the Ho Chi Minh City Union of Trading Cooperatives (Saigon Co.op) and Chairman of the Association of Vietnam Retailers, recommended enterprises proactively make changes, with a focus on restructuring their governance and business operations, while keeping updated with the Government and localities’ mechanisms and policies to capitalise on them and generate more values.

Amid headwinds, they should be persistent in resolving the question of growth, he opined, adding that slower economic growth not only poses challenges but also provides opportunities for companies to make self-review, be more open in investment and business, and innovate their risk governance models.

Also at the forum, Forbes Vietnam honoured the 50 best listed companies in 2023. These firms recorded total revenue of over VND1.49 quadrillion (US$62.5 billion) and post-tax profits of over VND228 trillion, up 24.9% and 18% from the 2022 list, respectively. This was the 11th year the magazine had compiled the list.

Sea cucumber exports skyrocket on global market demand

While key seafood export items including shrimp and pangasius have endured a significant decline, several other products such as oysters and sea cucumbers have enjoyed a sharp rise in export volume and value, according to the General Department of Vietnam Customs.      

Specifically, sea cucumber exports throughout the reviewed period reached 73 tonnes worth US$1.7 million, up 160% in volume and 40% in value against the same period from last year.

On average, a kilo of sea cucumbers for export was traded at about US$23.3 per kilo, equivalent to VND555,000 per kilo.

In particular, sea cucumber exports in May alone witnessed a nine-fold rise in volume and 20-fold increase in value year on year.

Sea cucumbers are likened to "sea ginseng" due to their high nutritional value for human health.

The product is sold at expensive prices, ranging between VND500,000 and VND1,700,000 per kilo, depending on the type.

Meanwhile, oyster exports during the first half of this year reached more than 2,700 tonnes valued at more than US$5 million, up 100% in volume and 81% in value year on year.

Hai Phong leaders pledge support to businesses for win-win goal

The administration of Hai Phong will try its best to cater to the taste of businesses for their efficient, long-term operations towards the ultimate win-win goal, leaders of the largest port city in northern Vietnam affirmed during a dialogue with businesses operating in the city on August 19.

“The municipal administration is willing to listen to proposals of businesses to help Hai Phong overcome difficulties and accomplish its development tasks,” said Le Tien Chau, secretary of the municipal Party Committee.

By the end of July 2023, Hai Phong had more than 26,000 businesses in operation, of which as many as 25,734 were private businesses and 769 were foreign invested businesses.

Up to now, private businesses have participated in almost all fields of the local economy, from industry and trading, to health care, education, environment, science and technology.

Over recent years, private businesses have developed strongly and dynamically in both quantity and scale. Statistics show they make up about one third of the local economic growth and generate large numbers of jobs for people.

“The city pays special attention to private businesses, considering the development of the private economy as a driving force and an important foundation for socio-economic development,” stressed Quan.

During the dialogue, representatives of businesses raised questions relating to startup and innovation; sci-tech development; urban planning and construction; logistics; digital transformation; tourism development; bank loan interest rates; and credit assistance.

Representatives of municipal leadership answered their questions and affirmed that the city would always accompany domestic and foreign businesses and address their concerns for mutual benefit.

“The city will soon complete and issue business incentives, encourage private businesses to get involved in all economic sectors, enhance their competitiveness on an equal footing, and promote their self-reliance,” said the municipal Party secretary.

“Your success is ours,” said Chau.

HCM City working hard on target of net zero emissions by 2050

HCM City is committed to achieving net zero emissions by 2050 by adopting policies and mechanisms to transition into a green and sustainable economy.

Speaking at the “Green Economy Forum 2023: Net Zero - Path to Sustainable Development” last Friday, Phan Văn Mãi, chairman of the city People’s Committee, said resources have been allocated to facilitate this green transition and to meet the nation’s goal of zero emissions by 2050.

The city has strategies in place for achieving green economic development, circular economy, energy transition, and sustainable urban development, according to the chairman.

It also plans to enhance its energy, urban and social infrastructure green to achieve green growth.

It has identified Cần Giờ District as a pilot site for achieving carbon neutrality, and would develop a comprehensive plan to achieve zero emissions there by 2030, with a focus on transitioning vehicles to renewable energy sources, adopting advanced waste and garbage treatment technologies, and utilising carbon credits, he revealed.

Mãi also called on businesses to fulfil their commitments and obtain certification that demonstrate their progress towards net zero.

Many domestic businesses had in fact already begun transforming their operations to align with sustainable development and environmental friendliness, he added.

Jonathan Pincus, senior international economist at UNDP, said the transformation required the adoption of technological solutions, efficient use of energy-saving materials, and the development of renewable energy.

"To support these efforts, both domestic and international policy co-ordination is needed," he said.

Hà Đăng Sơn, deputy director of the Việt Nam Low Emission Energy Program II (V-LEEP II) of USAID, said many banks and organisations, both Vietnamese and foreign, had made commitments to financially support the country’s green transition.

Việt Nam must effectively utilise these funds.

Tan Boon Thor, director of commercial real estate and design management at Frasers Property Vietnam, said businesses needed to take concrete action to achieve their net zero goals.

He suggested implementing emission reduction schemes, adopting energy-saving technologies and raising awareness of net zero throughout management, suppliers, and workers.

Lâm Tố Trinh, deputy general director of innovation and business development at NS BlueScope Vietnam, said businesses that want to enter the global market must develop specific carbon emission reduction plans.

The government should establish legal frameworks and policy systems to encourage the participation of all parties in the green economy and create guidelines to attract all kinds of stakeholders in production, business and finance, he said.

The forum was organised by Saigon Economic Times to discuss Việt Nam’s efforts to achieve net zero emissions by 2050 as committed at the United Nations Climate Change Conference in 2021.

VAT-exempt status more of hindrance than help

VAT-exempt status is more of a hindrance than a help for domestic producers as it puts them at a cost disadvantage against foreign rivals.

That was the comment from the Vietnam Chamber of Commerce and Industry (VCCI) on the Law on Value-Added Tax (VAT) that has been under revision recently. 

VCCI said under the law, certain categories of goods and services had been made VAT-free, including unprocessed agricultural products, fertilisers, animal feeds, and farm equipment. The status has saved domestic producers a nice chunk of their profits for tax but made them ineligible for input VAT credits.

Meanwhile, imports of the same categories, despite having been entitled to input VAT credits in their original countries, are given the same tax privileges when entering Việt Nam. 

Given that input VAT credits can amount to between 1.0 to 8.0 per cent of product prices, the "free launch" has tilted the playing field significantly in favour of foreign producers.

"If the problem is left unresolved, the domestic manufacturing sector would lose ground to its foreign competitors," said a VCCI representative. 

VCCI called for VAT to be imposed on the above-mentioned imports to offset the input VAT credits that they enjoy in their original countries. For categories of goods and services that Việt Nam does not import, VCCI said the VAT-exempt status could be maintained.

Five options for taxation have been proposed to level the playing field. The first option involves identical VAT rates of 5.0 per cent, the second entails VAT rates of either 5.0 or 0.0 per cent.

In the third option, different VAT rates would be imposed on different categories of goods and services.

The fourth option, meanwhile, divides goods and services into two groups. One group, which is VAT-free under the law, would be subject to VAT rates of 5.0 per cent whereas the other continue to be taxed at 10 per cent.

In the fifth option, goods and services would be subject to VAT rates of 5.0 per cent and the amount would be deducted to input VAT credits.

VCCI urged lawmakers to consider choosing either the third or the fourth option when making a revised version of the law. The chamber also highly approved of their efforts to narrow down the scope of VAT-exempt goods and services in a recent draft version. 

The draft, as a VCCI representative said, was on point and would serve domestic producers well. 

Indonesia initiates anti-dumping investigation of Vietnamese polypropylene copolymer

The Trade Remedies Authority of Việt Nam (TRAV), Ministry of Industry and Trade, said that it has just received information about the Indonesian Anti-Dumping Committee (KADI) initiating an anti-dumping investigation with polypropylene copolymer products originated or imported from South Korea, United Arab Emirates (UAE), Malaysia, Singapore and Việt Nam.

Specifically, the investigated goods is polypropylene copolymer classified under HS code 3902.30.90. The party requesting the investigation is PT Chandra Asri Petrochemical Tbk.

TRAV and KADI will issue the survey questionnaire, provide the request file (public version) and create an opportunity for the enterprise that has presented to submit information, answer the question or offer consultation.

Interested parties who have not yet presented may submit a notice of participation in the case within 14 days from the date of issuance of the notice, no later than August 27 according to Indonesian time.

The TRAV emphasised that the application of anti-dumping measures (if any) would negatively affect Vietnamese polypropylene copolymer producers and exporters, reducing their competitive advantages, leading to the risk of losing part or all of the export market to Indonesia.

Therefore, TRAV recommended that relevant manufacturing and exporting enterprises actively register to participate and co-operate fully and comprehensively with KADI during the case process.

In addition, enterprises need to carefully study the content of the notice and strictly comply with the requirements of KADI in terms of time limit, format, content of information provision and documents.

At the same time, they also need regularly exchange and provide information to TRAV for timely support.

Polypropylene copolymer is a thermoplastic material that possesses many enabling properties and is used in a wide range of applications that can be found in packaging, home appliances, auto parts, textile manufacturing and medical devices.

The chemical and moisture resistance of polypropylene copolymer has led to its frequent use in the manufacture of food containers, beverage bottles.

In addition, the textile industry uses polypropylene copolymer to create nonwovens for protective gear and filters.

Because of its biocompatibility and sterilisation, it is also commonly used in medical devices such as IV bags and syringes. 

NASCO to auction 1 million shares of Nội Bài Cargo Terminal Services

Nội Bài Airport Services Joint Stock Company (NASCO) plans to auction one million shares of Nội Bài Cargo Terminal Services (NCTS), equivalent to 3.82 per cent of NCTS's charter capital, with a starting bid of VNĐ87,130 per share.

The Hà Nội Stock Exchange (HNX) will undertake an auction on August 25.

NASCO and NCTS are both subsidiaries of Vietnam Airlines Corporation. Vietnam Airlines Corporation holds 51 per cent of charter capital at NASCO and 55.13 per cent of charter capital at NCTS.

The sale of NASCO's capital at NCTS aims to implement NASCO's divestment policy as well as following the instruction of Vietnam Airlines Corporation. After the auction, NASCO's ownership rate in NCTS is estimated to fall from 6.98 per cent to 3.16 per cent. As a result, NASCO is no longer a major shareholder in NCTS.

NCTS began trading on the HCM City Stock Exchange (HOSE) on January 8, 2015. NCT shares are currently valued at VNĐ88,500 per share.

According to the State Securities Commission's Official Letter No. 4004/UBK-PTTT issued June 27, 2022, the foreign ownership rate in NCTS is capped at 30 per cent. At the upcoming auction, foreign investors are allowed to purchase 100 per cent of the offered shares.

Established in 2005, NCTS currently has a charter capital of more than VNĐ261.6 billion. After 18 years of expansion, NCTS now serves air cargo for 33 airlines, including three domestic airlines and thirty foreign carriers. The primary service types provided by the company are cargo servicing, cargo storage, and cargo handling.

In recent years, NCTS's business results have remained consistent. NCTS is one of the firms whose business results were less impacted by COVID-19 pandemic.

In 2021, the revenue of the company increased by 11 per cent from 2020's figure, reaching VNĐ742 billion. Its revenue declined to VNĐ735.9 billion in 2022.

By the end of the first quarter of 2023, the company achieved revenue of nearly VNĐ150 billion. NCTS's total asset value remained above VNĐ500 billion. In the last three years, annual profit after tax has surpassed VNĐ200 billion. 

Technology can reduce electricity consumption by 40%: VCCI

Vietnamese factories have the potential to cut power consumption by 20-40% by embracing modern technology, automation, and high-efficiency electrical equipment, according to a representative of the Vietnam Chamber of Commerce and Industry (VCCI).

Driven by rising electricity demand and constrained supply, Vietnam is increasingly focused on energy conservation. The Vietnam Union of Science and Technology Associations highlighted the need to develop new energy sources over a period of three to four years, given the vulnerability to supply shortages. Recent electricity disruptions in northern Vietnam underscore the urgency for change.

Bui Trung Nghia, VCCI deputy chairman, underlined the impact of advanced automation and energy-efficient equipment on energy consumption reduction, saying that manufacturers could achieve impressive results of 20-40% through these approaches.

Speaking at a seminar on energy usage in the supporting industry and food processing sector on August 18, Nghia stressed the importance of energy-saving measures in production processes and their contribution to economic growth.

Vietnam’s ongoing energy challenge is driving businesses to seek energy-saving solutions. In collaboration with Energy Transition Partnerships (ETP), VCCI is leading a project that encourages enterprises to adopt innovative practices.

John Robert Cotton, senior programme manager for Southeast Asia at ETP, highlighted ETP’s focus on energy-intensive nations like Indonesia, the Philippines, and Vietnam. He said these countries hold the potential for renewable energy development despite their reliance on fossil fuels.

Within Vietnam’s supporting industries and food processing sector, enterprises encounter obstacles in adopting energy-saving solutions due to limited information on efficient practices. Financial constraints, technical limitations, and energy consumption audit capacities also hinder such initiatives.

Cotton introduced the Energy Service Company (ESCO) model as a practical solution. ESCOs offer comprehensive solutions including energy-efficient design, project implementation, conservation, infrastructure enhancement, and risk management. ESCOs frequently employ performance-based contracts, wherein a lack of investment returns leads to the company compensating the difference, ensuring energy and cost savings for partners.

VCCI and ETP are initiating a project involving 100 businesses to enhance financing access and connect participants with ESCOs. The Vietnamese ESCO Association is also envisioned to further energy-efficient practices in traditionally energy-intensive industries.

This effort empowers businesses to optimize resource usage, thus reducing emissions in energy-intensive sectors, noted Cotton.

The French Development Agency (AFD) has committed to allocating over 2.3 billion euros to support 100 green initiatives. Nguyen Thi Thanh An, head of Energy Transition Division at AFD, emphasized their commitment to Vietnam’s sustainable development by encouraging green projects through banks and risk-sharing mechanisms.

Kentaro Takahashi from Japan’s Office of International Cooperation for Transition to Decarbonization and Sustainable Infrastructure expressed Japan’s interest in collaborating with developing nations like Vietnam through technology transfer.

HCMC leads domestic tourism rankings for January-June

HCMC has claimed the top spot for attracting tourists nationwide during the first half of 2023, according to a report by The Outbox Company.

Hanoi City and Quang Ninh Province secured the second and third positions during this period.

The report, released on August 17, delves into Vietnam’s tourism sector for the first half of 2023, analyzing the supply and demand within the industry.

With 64 million visitors from January to June, a 1.5-fold increase compared to the same period in 2019, Vietnam has achieved over 60% of its 2023 tourism target.

Statistics indicate a significant surge in tourism demand during holidays such as the Lunar New Year festival in January, Reunification Day on April 30, and International Workers’ Day on May 1.

The Outbox Company noted that this growth momentum follows the 2022 tourism recovery phase, demonstrating the potential for continued growth in inbound tourism for 2023 and beyond.

However, the firm also highlighted that the second half of the year lacks extended holidays, which might weaken the momentum.

During the first half of 2023, there were 5.67 million international travelers to the country, accounting for 65.7% of the total foreign visitors in 2019.

Despite rising prices, tourism demand remains robust. At this pace, Vietnam’s tourism recovery is anticipated to outpace expectations, making the goal of welcoming eight million foreign tourists in 2023 more attainable, according to the report.

Da Nang promotes non-cash payment in tourism

The central beach city of Da Nang has promoted non-cash payment, particularly in tourism areas and market system, making things more convenient for the locals and visitors. 

Recently, An Thuong pedestrian street and night market in My An ward, Ngu Hanh Son district, has implemented online payment methods, including QR codes scanning and e-wallets.

Many food and beverage shop owners in the area said that the non-cash payment application has created a new and modern look for the area in the eyes of tourists, especially foreigners. 

Dang Thi Ni Na, owner of a beverage shop on the street, said around 80% of her customers choose to pay by scanning QR codes.

Bach Ngoc Hai, Chairman of the My An ward’s People’s Committee said that the district has invested in infrastructure in the An Thuong tourism street to better serve tourism development. The district aims to have all 150 business households on the street to accept non-cash payment early.

Meanwhile, a model of “non-cash payment market” was introduced at Tuy Loan night market, Hoa Vang district at the end of July 2023. The model then has been implemented in 11 communes of the district. The district has invested in high-speed internet cable to provide free wifi service at the market, helping to bolster non-cash payment at the place. 

The move is in line with a document issued by the municipal People’s Committee in January requesting departments, agencies, units, and People's Committees of districts to speed up the implementation the national project on promoting non-cash payment in Vietnam during the period of 2021-2025.

Da Nang’s Department of Tourism has issued a plan to implement a project on developing non-cash payment in the tourism industry in the period of 2023-2025. The sector has set the target that by 2025, 100% of tourism service businesses in the area apply one or more non-cash payment methods such as payment by QRCode, payment gateway VNpay, POS machine, internet banking and mobile banking.

Currently, the city has cooperated with the Viettel Military Industry and Telecoms Group (Viettel), Vietnam E-commerce Association and banks to implement a programme on cashless streets and markets.

To date the city has implemented the "Market 4.0" model in a number of major local markets such as Han, Con, and  Dong Da markets, encouraging small businesses and consumers to utilise non-cash payment methods.

Beside An Thuong street, many cashless payment streets have formed in the central area such as Nguyen Van Linh, Tran Van Tru, Nguyen Huu Tho and Huynh Thuc Khang streets.

The simultaneous formation of many cashless streets in Da Nang aims to bring satisfaction to residents and visitors in the process of digital transformation and building a smart city. These are solid foundations for the city’s tourism industry to realise its digital economic goals.

Enterprises processing rice products face difficulties due to rice price hike

The sharp increase in rice prices recently has caused difficulties to many enterprises producing flour and rice-made products in the southern province of Đồng Tháp.

Enterprises said although the price of input materials has increased rapidly, production costs have increased, but they have not been able to increase the selling price of products or even sell many rice-made products equal to or below the cost of production.

Mật Bích Khuầy who owns a production facility in the province's Sa Đéc City, said that her facility has signed many deals with partners to supply rice-made products until the end of this year.

However, the price of raw rice has increased continuously. The price of IR504 rice has increased to the current VNĐ15,000 per kg from VNĐ13,600 per kg recorded at the beginning of August.

She said the rice price hike leads to an increase in input and production costs, but the selling price of products must be the same following contracts signed earlier with partners so that her facility has to maintain operations to keep customers.

Khuầy said rice is the main raw material for her facility's products. To cope with the increase in rice prices, in the immediate future, her facility had to implement many solutions to minimise input costs.

For retail customers, her facility will negotiate to increase the selling price of the product by a few per cent, but there must be a certain delay, the selling price cannot be increased suddenly according to the price of rice, she said, adding that investing in advanced equipment and machinery to increase labour productivity and reduce production costs may be included.

A large-scale firm Bích Chi Food JSC, which specialises in flour production and rice products in Sa Đéc City, was also heavily affected by the skyrocketing rice price increase. The company produces 10 tonnes of flour and 20 tonnes of rice products each day, earning an export turnover of US$15-20 million each year.

Phạm Thanh Bình, General Director of Bích Chi Food JSC, said the sudden rise in the price of raw rice has caused difficulties for the company in production and business.

Bình said from the beginning of August, the average price of raw rice has increased to VNĐ3,500 from VNĐ3,000 per kg (depending on the type of rice).

Not only rice, but prices of many other materials that the company imports from abroad such as potato flour and pea flour have also soared by nearly 100 per cent.

For orders that the company has signed with partners before with a fixed price, the company had to sell without profit. As for the upcoming orders, the company has announced that the product price will increase from 5 per cent to 11 per cent.

However, the price increase must be slow and cannot go with the price of rice, Bình said.

He also added that from the beginning of 2023, the company's goods consumption was 25-30 per cent slower than that in 2022.

Đồng Tháp is one of the provinces with a large production area and output of rice in the Cửu Long (Mekong) Delta region. The province's annual rice production area ranges from 480,000ha to 500,000ha, with an estimated output of over 3.3 million tonnes.

In the first half of this year, Đồng Tháp exported nearly 263,000 tonnes of rice for $152.15 millịon. The province aims to ship 338,000 tonnes of rice abroad, earning a turnover of $232 million.

With the strong fluctuations in the world market, the price of rice in the province has continuously increased. Faced with this situation, the provincial People's Committee has directed relevant units to coordinate in stabilising the rice market.

At the same time, the provincial Department of Industry and Trade should urge businesses that have participated in the stabilisation programme to draw up a plan to ensure supply for the market from now until the end of 2023 and the Tết period with stable prices. 

Cashew nut exports projected to enjoy robust growth in subsequent months

The initial seven months of the year saw cashew nut exports reach 334,870 tonnes, bringing in more than US$1.94 billion, up 13.3% in volume and 9.7% in value over the same period from last year, according to preliminary statistics released by the General Department of Customs.      

July alone witnessed Vietnamese cashew exports hit 54,675 tonnes worth more than US$304.3 million, a drop of 7.5% in volume and 10.2% in turnover compared to the previous month.

The average export price during the reviewed period stood at US$5,805 per tonne, down 3% on-year. Cashew nuts were one of the agricultural products with export value at over US$1 billion during the seven-month period.

Regarding markets, the United States represented the largest import market of Vietnamese cashew nuts. Specifically, cashew nut exports to the US in July reached 14,385 tonnes with a turnover of more than US$79.5 million.

Throughout the reviewed period, cashew nut exports to the US hit 88,903 tonnes valued at more than US$512 million, up 0.7% in volume and 0.32% in value over the same period from 2022.

According to information given by the Import-Export Department under the Ministry of Industry and Trade, during the opening months of the year, the weakening economy, high inflation, and continued conflict between Russia and Ukraine caused the majority of the world's major economies to reduce cashew nut imports. This thereby had a negative effect on the global cashew industry in general, including Vietnam.

Moving forward, it is forecast that in the short term the global cashew industry will still be negatively hit amid demand for cashew nuts used as snacks or for cooking and desserts decreasing due to growing consumer inflation.

In the long term, when inflation is brought under control and the global economy recovers, the demand for cashew nut consumption will increase again.

According to Reuters, global demand for cashew nuts reached US$9.94 billion in 2018 and is expected to hit US$13.48 billion in 2024, with an average growth rate of 5.2% in the 2018 to 2024 period

This is based on the following factors such as growing market demand for healthy snacks, including growing demand from the EU, the US, China, and the rise of large processing facilities in Africa.

Vietnamese cashew nut exports are anticipated to increase in the third quarter of the year thanks to the cyclical factor coupled with the increasing demand for imports from the US and EU.

Currently, domestic factories have signed many new orders and the demand for this item has begun to increase again.

Improving quality, diversifying products, and making good use of opportunities from major markets will contribute to helping the cashew industry continue to grow and make breakthrough in the time to come.

Investment in deep processing and product diversification is an advantage for Vietnamese cashew nuts to easily compete for exports. Typically, Hanfimex Group Joint Stock Company always achieve export orders to export to demanding markets thanks to their delicious and high-quality products. This is also the right direction for local businesses to move towards.

Vietnam's rice export prices stay highest in world market

The Ministry of Agriculture and Rural Development and the Vietnam Food Association yesterday said that the export price of Vietnamese rice rose to the highest level in the world.

Especially, the export price of 25 percent broken rice was sold at US$618-622 a ton, exceeding Thailand's price by $57 per ton while Vietnamese 5-percent broken rice fetched $628-632 per ton, $10 per ton higher than Thailand's rice price.

According to exporters, prices of Vietnamese rice have increased by about $100 per ton in the past two months.

According to the Ministry of Industry and Trade, some 210 traders across the country are eligible for exporting rice. Ho Chi Minh City has 47 exporters while the Mekong Delta City of Can Tho City has 42 traders, the Mekong Delta Province of Long An 25 traders, Dong Thap 19 traders, and An Giang 18 traders.

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