The Consulate General of Vietnam in Vladivostok and the Vietnam Trade Office’s branch in the Far East on August 21 held a workshop to promote Vietnam-Russia foreign trade through Vladivostok port.

More than 30 enterprises and relevant officials from Vietnam and Russia joined the event in person and online.

It aimed at updating practical information on import and export activities between Vietnam and Russia, and the role of Vladivostok port in enhancing trade between the two sides.

Consul General in Vladivostok Nguyen Dang Hien said that political and economic situations in recent years have affected the trade turnover between the two countries.

However, in the first half of 2023, two-way trade turnover between Vietnam and Russia’s Far East reached 150-160 million USD, an increase of about 20% over the same period in 2022.  Goods from Vietnam and Russia transited through Vladivostok port clusters increased in both volume and type. The Vladivostok port plays an important role in the transport of imports and exports between the two countries.

For his part, Minister of Industry and Trade of Primorye Territory Sergey Kalintin affirmed that exporting Vietnam's goods through the Far East is the shortest way, adding that supermarket chains, shops, and businesses in Primorye are interested in importing Vietnamese goods.

He expressed his hopes to establish a regular connection between Vietnamese and Russian businesses to promote bilateral relations. Primorye is ready to support Vietnamese businesses to open trade centres in the area and will have attractive preferential policies for them.

Vietnamese Trade Counselor in Russia Duong Hoang Minh also said that Vietnam-Russia trade is seeing signs of recovery.

In the first quarter of 2023, the bilateral trade reached 732 million USD, down 49% over the same period in 2022. But in the first seven months of this year, it reached 1.9 billion USD, marking a decrease of only 15.7%.

Minh said that in May 2022, a direct shipping route Vladivostok port - Hai Phong city - Ho Chi Minh City was opened. In the first seven months of 2023, more than 20,000 TEUs of goods were transported through the route, marking a great success.

Vietnam spends nearly US$5 billion importing oil and petrol products in 7 months

Vietnam imported 6.13 million tonnes of petrol, oil and other petroleum products during the first seven months of this year worth US$4.88 billion, up 12.7% in volume and 14.7% in value compared to the same period last year.

According to the General Department of Vietnam Customs, July alone witnessed the country import 922,000 tonnes with a total value of US$725 million, marking a decrease of 11.8% in volume and 3.7% in value year on year.

Diesel made up the lion’s share of the imported volume with 3.35 million tonnes, up 6.2%, while petrol was also the main imported item with 1.28 million tonnes, up 28.9%.

The Republic of Korea was the largest petroleum supplier to the country with 2.46 million tonnes in the first seven months, up 13.5%, followed by Singapore and Malaysia.

The rise of oil and petrol imports can be attributed to the temporary closure of the Nghi Son Refinery Plant for maintenance. The plant, that supplies more than one third of Vietnam’s petrol and oil demand, is scheduled to suspend all production activities for 55 days, starting on August 25.

The plant reported the maintenance work to the Ministry of Industry and Trade from the end of 2022 so that the Ministry could come up with a plan to compensate for the shortage of petroleum supply.

Hydropower must be utilised to develop energy sources

Success in the development of renewable energy sources will not be sustainable if the role of hydropower is ignored.

The National Energy Master Plan, announced by the Ministry of Industry and Trade (MoIT) on August 9, virtually ignores the role of hydropower in reaching the required proportion of renewables in the energy mix, according to Nguyen Huy Hoach, secretary-general at the Vietnam Clean Energy Association.

“Hydropower is a flexible power generation solution with low operating costs and carbon emissions,” said Hoach. “It plays an important role in the development trend of renewable energy, including solar energy and wind energy. It is indispensable to replace fossil energy and reduce greenhouse gas emissions gradually. As of the end of 2022, solar power and wind power made up 26.4 per cent of the installed power capacity.”

Renewable energy is set to account for 15-20 per cent of Vietnam’s power supply by 2030 and about 80-85 per cent by 2050. The plan estimates that Vietnam’s total energy demand is expected to hit 107 million tonnes of oil-equivalent by 2030 and 165-184 million tonnes of oil-equivalent by 2050.

The increase in peak capacity can come from the expansion of the existing hydroelectric plants and the construction of low-head hydroelectric power and storage hydropower plants, according to Hoach.

Hoach said that Vietnam can exploit the hydropower capacity of around 120 billion kWh per year as the hydropower reserve of 300 billion kWh per year is a theoretical estimate. Meanwhile, the economic-technical capacity is estimated at 80-100 billion kWh/year.

Vietnam has faced a severe shortage of electricity this summer. “Power outages in the north in May and June have disrupted production and cost Vietnam about $1.4 billion, accounting for 0.3 per cent of its GDP,” said Dorsati Madani, senior economist at the World Bank, on August 10.

Vietnam’s imbalance of power supply is because the northern region mainly relies on hydropower and coal for electricity, both of which have been short of materials, leading to delays in energy production and distribution. The limited capacity for distribution makes it difficult for the area to access the excess energy supply in southern Vietnam, of around 20GW.

Vietnam’s energy industry advocates diversification of power sources. However, many investors cannot make new investment decisions because there is no fresh policy on price mechanisms.

Currently, only single hydropower plants of up to 30MW capacity each will be eligible for the avoided cost tariff (ACT) mechanism, said Dinh Ngoc Khac, representative of Hong Ha Energy Development and Investment Company.

Ry Ninh 2 Hydropower Plant has stopped applying the ACT mechanism since the beginning of 2023, and the plant is still waiting for a new mechanism.

“Hydroelectric power plants will find it difficult to proactively make their business plan as they have to comply with changing regulations each year,” Khac said. “We can’t take advantage of this affordable power source and make efficient use of the equipment, and so waste resources.”

The ACT, first issued in 2008 and replaced in 2014, encourages investment in small hydropower projects on the principle of ensuring fairness and transparency between buyers and sellers, minimising environmental pollution, and ensuring social security.

With some hydropower plants newly built and expanded to match the power structure of the national system, such as the Tri An hydropower project in the southern province of Dong Nai and the Bac Ai storage hydroelectric project in the central province of Ninh Thuan, many investors hope that the mechanism for developing a competitive electricity market will soon be completed.

Weight still placed on imported LNG

Vietnam’s growing dependence on imported liquefied natural gas could cause a hike in power production costs.
Vietnam is facing more pressure to balance electricity generation costs given that gas prices spiked again last week, with Europe enduring a hot summer.

On August 8, the price of Dutch natural gas, the European benchmark, jumped 24 per cent to €40 ($44) per MWh. The price of American natural gas has also climbed 18 per cent this month.

Vietnam is increasingly dependent on imported fuel to produce electricity. According to Nguyen Bich Lam, former general director of the General Statistics Office, the ratio of imported fuel costs to the total cost of raw materials in the whole economy is 37 per cent. Rising gas prices hit power, steel, fertiliser, and glass producers.

In 2022, Vietnam spent $1.89 billion importing nearly 2.48 million tonnes of petroleum gas and hydrocarbon gases from China, Saudi Arabia, and the United States, according to the 2022 Fertiliser Import and Export Report released by the Institute for Brand and Competitiveness Strategy in April this year.

Two weeks ago, Nguyen Anh Tuan, former deputy director of the Institute of Energy under the Ministry of Industry and Trade (MoIT), told VIR that a shortage of gas for electricity generation was imminent if Vietnam did not replenish the reserve in time and complete the infrastructure for importing liquefied natural gas (LNG). Fuel constitutes a high proportion of electricity costs, from 78 per cent to 86 per cent for gas-fuelled electricity.

“There is also a risk of an LNG shortage for combined-cycle gas power plants in the future due to the dependence on imports,” Tuan said.

As gas prices spiked again, this posed another threat to the development of LNG power projects in Vietnam, which are already facing some difficult-to-solve challenges related to policy, capital, and the market. With the goal of developing 23,900MW of LNG power projects, Vietnam needs to import 14-18 billion cubic metres of LNG by 2030 and 13-16 billion cu.m by 2045.

He added that the progress of the O Mon power plant cluster had been delayed until the end of 2026, when the gas price is expected to reach $13.1 per million BTU (British thermal unit). This price is too high given that the gas field design is not approved. It will lead to an increase in the cost of electricity production of the O Mon projects.

“The approved Block B gas price plan estimated that the gas price at the well mouth was $9.36 per MBTU in 2017. This is coupled with a $1.37 per MBTU pipeline fee to transport gas to the O Mon power centre. As a result, the gas price at the fence of the power plant is expected to reach $12.80/MBTU from 2024,” he said.

The World Bank said in October 2022 that it expected energy prices to decline by 11 per cent in 2023 after a 60 per cent surge following Russia’s invasion of Ukraine. While energy prices were easing, they would still be 75 per cent above their average over the past five years.

Many analysts also doubt the possibility of developing nearly 22,400MW of LNG power projects by 2023, as outlined in the Power Development Plan VIII (PDP8). As of present, there are only two LNG power projects with a combined capacity of 2,800MW inaugurated yet to sign power purchase agreements with Vietnam Electricity.

With the power source structure in PDP8, according to MoIT’s calculations, a 10 per cent increase in the LNG price will raise the average power production cost of the system by 1.1–1.5 per cent. If the LNG price jumps to $16.5 per MBTU, or 40 per cent, the average electricity price will climb by nearly 6 per cent compared to the base price calculated in the PDP8.

“This price increase is acceptable when compared with the average growth rate of the power tariff at about 5.5 per cent per year during 2010-2020. If LNG prices surge in the global market, the increase in the average electricity production cost of the whole system is still acceptable to Vietnam,” the MoIT stated.

State council set up to appraise $1.09 billion Gia Nghia-Chon Thanh section

A state council will be set up to appraise the feasibility of a project to build the $1.09 billion Gia Nghia - Chon Thanh section of the western part of the North-South Expressway.

The minister of Planning and Investment has been appointed as the chairman of the council, and the vice chairman is the deputy minister of Planning and Investment. The other members are the representatives of the ministries of Transport, Finance, Natural Resources and Environment, and Agriculture and Rural Development, among others.

The project has a total length of nearly 129km, passing through Binh Phuoc for 101km and the Central Highlands’ province of Dak Nong province for 27.8km.

It has a total investment of nearly $1.09 billion, including more than $675 million for construction and around $195 million for site clearance.

The construction will be implemented under the public-private partnership model, at which $421 million will be earmarked from the state budget and $170 million from the provincial budget. The remainder will be mobilised from investors.

The Gia Nghia - Chon Thanh section belongs to the western part of the North-South Expressway project, which was approved as part of the Vietnam Road Network Development Plan for 2021-2030 and beyond.

The project will tighten the regional linkage and is expected to create a breakthrough for local socioeconomic growth and investment capital attraction.

Tran Van Mi, Deputy Chairman of Binh Phuoc People’s Committee, told VIR that promoting the linkage was an important content of Resolution No. 24-NQ/TW dated 2022 of the Politburo on socioeconomic development and assurance of national defence and security in the Southeast region to 2030 and beyond.

“Binh Phuoc’s investment attraction faces the bottleneck in regional linkage, thus, once these two projects are developed, they will remove the bottleneck, paving the way for the investors to the province. We expect to double the coming capital compared to the current figure once the regional linkage is smooth,” Mi said.

The southern province of Binh Phuoc became one of Vietnam’s top 10 foreign-invested recipients for the first time in the first half of this year, after attracting 16 foreign projects worth of $632 million. This was a more than 12-fold increase compared to the first half of 2022 and represented 200 per cent of the annual target.

Agricultural exports record significant growth in H1

In the context of the overall decline in Vietnam's export of various commodities in the first half of 2023, some bright spots have emerged in exporting key agricultural products such as fruits, vegetables, rice, and coffee.
 
According to a report by FiinGroup, the growth of Vietnam's key agricultural products can be attributed to the 'Zero COVID' policy of China, unfavourable weather conditions for commodity production in other Asian countries, the Russia-Ukraine war, and the rising prices of Robusta coffee.

Notably, the policy in China, being Vietnam's largest trading partner, stimulated higher demand for fruits and vegetables, thereby elevating the export value of this crucial commodity group.

For rice, the export value surged due to a combination of factors, including potential declines in rice production in various Asian countries due to the hostile climate phenomenon of El Nino, and geopolitical issues such as the Russia-Ukraine war, leading to increased global food reserves.

Despite weather-related challenges impacting coffee production, the rising prices of Robusta coffee significantly supported the growth of coffee export value during the first half of the year.

The favourable growth in agricultural exports has indeed provided some relief to agricultural enterprises amidst the volatile business environment.

Indeed, there is a clear correlation between the resurgence in export activities within the agricultural sector and the revenue growth of agricultural enterprises during 2021 and 2022. FiinGroup's data reveals that net revenue growth experienced a decline in 2020, primarily due to the severe impact of the pandemic.

However, subsequent years witnessed a remarkable recovery and substantial growth, particularly evident in the rice and vegetable industries, achieving impressive growth rates of 46.5 per cent and 23.2 per cent respectively in 2022.

The recovery in export values of agricultural commodities served as a pivotal driving force behind the industry's positive financial performance, fostering an environment of resilience and growth.

Despite promising indicators, the future trajectory of the sector heavily relies on the ability of Vietnamese enterprises to take proactive measures to effectively confront a range of challenges. Undoubtedly, the sector's post-pandemic revival and favourable export performance constitute notable strides forward.

"However, amidst the backdrop of global macroeconomic fluctuations encompassing production costs, trade tensions, and the effects of climate change, there exist potential impediments in the foreseeable horizon. To maintain competitiveness and secure their position in the market, agricultural enterprises must prioritise strategic adaptability and engage in comprehensive risk analysis as they navigate the uncertainties ahead," the report said.

Wood exporters pleading for VAT refund resolution

Central-run authorities have given drastic directions to speed up VAT refunds for numerous businesses, especially struggling wood exporters.
 
Wood processors have waited for over a year for what is thought to be over $250 million in VAT refunds, Photo: Le Toan
Last week, the General Department of Taxation (GDT) sent a dispatch to tax departments in all cities and provinces to accelerate the settlement of VAT refunds.

The departments will review the classification of VAT refund applications to ensure compliance with regulations, especially dossiers that have been classified as ‘checked first, refunded later’, to speed up the inspection and verification of the refund process.

For the VAT refund dossiers that the tax authorities have finished checking and determined to be eligible for a refund, the amount should be sent immediately. For dossiers of exporters being examined later than regulation deadlines, authorities shall determine the amount eligible for refund, if inspection and verification have not detected any fraud.

The GDT has requested that if after receiving the refund, the tax authority discovers incorrect declaration of tax amounts, the enterprise must return the overpaid tax and the late payment interest, face inspection by public security authorities, and take full responsibility for any violations. Tax departments should send more officials to check VAT refund dossiers, accelerate the process, and ensure that the performance of refunds is much higher than that in 2022.

Numerous wood, rubber, and cassava exporters have demanded action for some time because of the lengthy tax refund debt process. Especially in the wood processing industry, businesses have had to wait for over a year for $253 million of VAT refunds.

Throughout the country at numerous businesses, dump trucks and excavators are standing idle, and machinery and production lines are operating in moderation. At Halong 12-11 JSC, the tax refund amount is up to $6.3 million.

“Every month, we have to pay $4,200 of loan interest because of the delay in the refund,” said director Pham Thi Vinh. “If this lasts too long, our loans will become bad debt, leading to bankruptcy. Such an outcome is not our fault.”

Ty Long Commercial Wood Co., Ltd. has been waiting for over $5.5 million of VAT refunds for more than a year. The company cut 100 workers last year and expects to lose more. Machines that cost up to $10 million are working very little.

“There are 150 employees in the company, but currently each shift has only 30-40 workers because of slowed-down operations. Carrying on like this, the company may have to close,” said director Vu Van Tuyen.

According to the Association of Vietnam Timber and Forest Products (Viforest), in northern provinces, about 200 wood exporters are awaiting VAT refunds. In Quang Ninh province’s Cai Lan Seaport area alone, 11 businesses are waiting for a refund amount of more than $42 million.

“We are currently struggling with too many problems, our tax refund arrears are up to $717,000, and we haven’t received a penny. Employees have no work and the company is temporarily shutting down,” said Nguyen Thi Minh Hung, director at Ich Yen Export-Import.

According to the GDT, since 2022, tax departments have received more than 5,000 tax refund dossiers. The department said it has now responded to 4,900 of them.

The GDT explained that the delay in tax refunds is caused by many inspection procedures and a lack of coordination with other authorities and shareholders.

“Tax authorities do not have enough resources to conduct verification of all business households as claimed. We only verify questionable and high-risk businesses, in accordance with the Law on Tax Administration,” explained Nguyen Tien Trung, deputy director of the GDT’s Tax Audit and Inspection Department.

The Vietnam Woodchip Branch under the Viforest claimed that the 4,900 dossier figure cannot be likely. “The numbers reported by the GDT do not include dossiers submitted since the end of 2021 that have yet to be finished,” said Thang Van Thong, deputy head of the branch.

Viforest proposes amendments to the Law on VAT to remove certain items from being subjected to the tax. At present, the Ministry of Finance is drafting amendments to the law, to submit to the National Assembly (NA) in May 2024. Some NA departments have also received claims from the business community, and are working with the ministry and the GDT to find a resolution.

Vehicle giants pivot to electrified and hybrid future

Carmakers in Vietnam are making dramatic changes to their operations in pursuit of sustainability, through expanding the scope and style of their offerings.
 
Toyota Vietnam is expanding on its strong commitments to reduce carbon emissions by 2050 and the goal of net-zero in manufacturing by 2035 through diverse solutions, it said at a workshop co-hosted by Toyota Vietnam and Binh Son Refining and Petrochemical organised in early this month in Hanoi.

“Toyota Vietnam has chosen a multidimensional approach to reduce carbon emissions, through alternative energy solutions and electric vehicles (EVs) that are suitable for users’ needs,” said general director Nakano Keita.

In the Vietnamese market, Toyota has already launched three hybrid models – the Corolla Cross, Camry, and Corolla Altis – with cumulative sales at about 7,000 vehicles to date.

Meanwhile, Koji Sugita, general director of Honda Vietnam, said it is set to reduce carbon emissions by 46 per cent compared to 2019 and still aims to be carbon-neutral by 2050.

In order to achieve these targets, Honda Vietnam is applying two key strategies: strengthening energy-saving activities and developing clean energy sources. This year, it put into operation rooftop solar power systems at factories in the northern provinces of Vinh Phuc and Ha Nam, with a total capacity of 8MWp. They are contributing to reducing the use of national grid electricity by more than 7.5 million kWh per year, equivalent to about 4,700 tonnes of CO2 reduction annually.

Amid growing calls to decarbonise, other carmakers are adopting targets to reduce carbon emissions. Nissan is working to cut CO2 emissions per new car by 90 per cent by 2050, compared with 2000. Meanwhile, General Motors plans to cut emissions from all products and businesses to net-zero by 2040.

The enhancement of efficient implementation of green and clean energy is becoming an urgent task of many sectors and fields, with the transportation industry still producing a large amount of emissions, accounting for more than a quarter of the nation’s total.

Vietnam’s strategy on green energy transformation includes a shift towards 100 per cent electric-powered road vehicles by the middle of the century.

In addition to initiatives from businesses in reducing carbon footprints, car manufacturers are also expanding and switching to EVs or hybrids.

By the end of this year, it is expected that more hybrid models will be launched in Vietnam, such as the Honda CR-V hybrid, Toyota Innova HEV, and the Kia Sportage Hybrid.

Dam Hoang Phuc, director of the Automotive Engineering Programme at Hanoi University of Science and Technology, said that the use of hybrid vehicles in combination with biofuels would be appropriate and cost-effective for Vietnamese people today, and at the same time, a timely solution to help reduce harmful emissions in Vietnam.

“Not only proved to be suitable for the Vietnamese market, but hybrid cars are also favoured by customers in many countries around the world,” Phuc said.

Earlier in August, the Ministry of Transportation submitted its proposal to Deputy Prime Minister Tran Hong Ha on incentives for e-vehicle producers and users, including exemptions and reductions of registration and licence fees. In particular, users could receive financial aid of up to $1,000 for each EV bought.

Central bank revises Circular 06

In rapid response to directives from the Prime Minister, the State Bank of Vietnam (SBV) has revised Circular 06/2023, which is foreseen to affect the real estate sector’s access to capital.

On August 23, 2023, the SBV issued Circular 10/2023, which suspends the enforcement of Clauses 8, 9, and 10 of Article 8 within Circular 39/2016, a regulation governing lending activities by banks. Circular 39/2016 was initially composed of six clauses but was later expanded to 10 due to the addition of provisions from Circular 06/2023.

Circular 06/2023, scheduled to take effect in early September, incorporates certain provisions from Circular 39/2016. These new regulations restrict banks from providing loans for activities such as equity transfers, capital repayment, and capital contributions towards investment projects that are not yet qualified for business operations.

This adjustment has raised concerns within the real estate industry. Experts have highlighted two primary issues: an increase in the number of cases where lending is prohibited and a lack of clarity regarding borrowing conditions.

Real estate enterprises are worried that these provisions might hinder access to capital, potentially impacting housing supply and individual property purchases.

The HCMC Real Estate Association (HoREA) emphasized that Circular 06/2023 would heighten credit access “barriers” compared to previous regulations. This is due to the expansion of cases in which banks are prohibited from lending, which has grown from 6 to 10 cases.

These constraints could impede credit access for various stakeholders, including real estate firms, prospective homebuyers, and investors, according to HoREA.

While the State Bank of Vietnam stated its intention to establish minimum lending conditions in alignment with the Law on Credit Institutions, HoREA argued that the revised circular adds further obstacles, making credit access more challenging than before.

Hà Nội enhances trade promotion activities for OCOP products

The capital city of Hà Nội has had many programmes to promote the consumption of products under the One Commune One Product Programme (OCOP) to increase the volume of those products on the municipal market.

Since the beginning of August, the Hà Nội Department of Agriculture and Rural Development has organised three events, the weeks to promote, introduce and sell products from the OCOP programme, craft villages, safe agricultural and food product producers in three districts of Bắc Từ Liêm, Long Biên and Thạch Thất.

Each event had more than 50 booths displaying products of more than 40 enterprises, business households and cooperatives from Hà Nội and other provinces such as Tuyên Quang, Quảng Ninh, Hà Tĩnh, Yên Bái, Khánh Hòa, Lào Cai, Hòa Bình and Thanh Hóa.

The three events attracted a large number of consumers in the capital as well as domestic and foreign tourists, to visit and shop at those booths. This is an opportunity for producers of OCOP products to introduce products to the market.

Director of Ba Vì Farm Dairy Joint Stock Company in Ba Vì District Nguyễn Thị Mai said the company sold a lot of products, especially OCOP-certified products from three-stars or more in the week organised by the Coordination Office of the New-Style Rural Development Programme of Hà Nội in Thạch Thất District.

In particular, this was also an opportunity for the company to grasp the tastes of the consumers in the capital city, thereby improving product designs and quality and having a suitable production and business strategy, Mai said.

Đinh Thị Dung, a customer from Hai Bà Trưng District, Hà Nội, shared the week of consumption promotion of products from the OCOP programme, craft villages, safe agricultural and food product producers held in Bắc Từ Liêm District introduced many goods items for the customers, including fruits, seafood and household items with clear origin and reasonable prices.

Meanwhile, Dương Thị Huệ, the owner of a facility producing fried featherback fish, a four-star OCOP product, said: “Hà Nội organising the event on consultation, introduction and consumption promotion of OCOP products every week has contributed to bringing more OCOP products to consumers.”

Huệ hopes that the city will integrate the trade promotion programmes for OCOP products into tourism activities so that tourists can enjoy Hà Nội's OCOP products at the production facility of those products.

Tạ Văn Tường, deputy director of Hà Nội Department of Agriculture and Rural Development, has affirmed that trade promotion events are important for businesses to introduce the OCOP products to customers, as well as for authorities to support and consult the producers and suppliers of OCOP products in ensuring safe and quality standards.

Thereby, the OCOP products and regional specialities are gradually recognised by consumers. They have appreciated the quality and packaging design of those products.

Weekly events help production and business entities strengthen trade connections to find distributors for products, exchange experiences on digital transformation, and flexible adaptation solutions after the pandemic and market fluctuations. 

This is also a practical activity to respond to the campaign "Vietnamese people give priority to using Vietnamese goods" in the new situation, contributing to promoting OCOP products associated with craft village tourism and rural tourism.

According to the Hà Nội Department of Agriculture and Rural Development, the city has certified 2,167 out of 9,852 OCOP products. They include six five-star products, 12 potential five-star products, 1,369 four-star products, and 780 three-star products. 

The certified products contain 1,372 food products, 47 beverage products; 39 herbal products; 660 handicrafts products; 47 fabrics and apparel products; and two tourism products. 

The OCOP programme is aimed at innovating production thinking and creating a strong change in the construction and development of the rural economy, especially in handicraft villages.

Nguyễn Văn Chi, Deputy Chief of the Standing Coordination Office for the Programme of Building New-Style Rural Areas in Hà Nội, said that from now until the end of 2023, this programme would organise many events to promote, connect and consume OCOP products. 

Specifically, Hà Nội planned to organise four events - weeks of consultation, introduction and consumption promotion products from the OCOP programme, craft villages, safe agricultural product producers; and four other events on introducing OCOP products associated with cultural activities of the northern mountainous provinces, and the Red River Delta, the Central Highlands and the South regions.

In addition, producers of the certified OCOP products are recommended to maintain and improve the quality of products and strengthen linkages under value chains to increase the volume of them on the market. 

On the other hand, distributors also need to actively strengthen trade connections in consumption of OCOP products, including trading centres, supermarkets, shops dealing in safe agricultural and food products, handicraft shops, points of introduction and sale of OCOP products and online trading floors. 

ATMs being "sluggish" in terms of digital transformation

Việt Nam was leading the way in embracing technology and digital transformation, said Winnie Wong, Mastercard Country Manager for Việt Nam, Cambodia and Laos at an online seminar on ensuring security and safety for electronic payments in the digital era.

The online seminar was organised on Monday by the Tạp chí Thị trường Tài chính Tiền tệ (Financial and Monetary Market Review) under the direction of the Việt Nam Banks Association and the companionship of Mastercard.

Digital transformation had taken place rapidly in the region and especially in Việt Nam in recent years, said Wong.

Banks and financial institutions in Việt Nam have been very proactive in ensuring they keep up with trends and technologies.

At least 95 per cent of banks in Việt Nam were actively implementing digital transformation, said Wong.

A Mastercard study last year revealed that 94 per cent of Vietnamese consumers used at least one digital payment method in the past year.

In the Asia Pacific region and even more-developed countries, this rate is only 88 per cent, while in Việt Nam this rate is 94 per cent.

Further evidence for this great movement, Nguyễn Quốc Hùng, Vice President and General Secretary of the Việt Nam Banks Association, said that before 2016, about 500,000 - 1,000,000 transactions per day was a dream number of credit institutions, up to now, the average transaction volume per day is up to eight million transactions, with the number of cash transactions about VNĐ900 trillion, equivalent to US$40 billion.

Phạm Anh Tuấn, director of the Payment Department under the State Bank of Việt Nam said that the system through Napas has the number of transactions reaching 4.8 billion transactions per year last year, and was expected to reach 8.4 billion transactions per year next year.

The average amount of money transfer payment transactions rose by 52.35 per cent as of June compared to last year, added Hùng.

The amount of payments through POS, QR code, internet and mobile banking increased both in terms of value and quantity.

Meanwhile, the amount of cash withdrawals via ATMs decreased by about 6.3 per cent. As could be seen, digital transformation could help limit the use of cash and promote payment in the fastest and most convenient way.

In addition, about 40 banks have opened payment accounts for customers with about 11 million accounts via eKYC method; about 20 banks opened card payment accounts for customers through eKYC with 10.8 million accounts. This is one of the positive results in the field of card payments.

“Notably, the Government has also asked for the connection and sharing of population databases, and without digital transformation, it would not be possible to integrate so quickly. So far, about 25 million customer accounts have integrated residential data after the Ministry of Public Security and the State Bank of Việt Nam reached an agreement on the implementation of the integration of residential data with bank accounts," said Hùng.

Apple Pay officially appeared in Việt Nam on August 8 plus Android has completed card integration on phones, said Văn Anh Tuấn, Senior Director of Information Security at Techcombank.

Along with the integration of the QR code application on the phone, people now just need to bring their phones to pay for all transactions from small to large quickly, easily and conveniently.

“Fast speed, no need to manage cash, it is clear that digital transformation applications have really entered the lives of people from small sellers to large businesses. Even ATMs are being " sluggish"”, said Tuấn.

From there, the bank would reduce investment in ATMs to invest in digital transformation more, and the number of branches and employees would decrease, he added.

“I believe in the future, the speed of non-cash payments will grow even more," he said.

Strategies to bolster exports for prioritised sectors and fields

The International Trade Center (ITC) has made a strategic report for Vietnam's five priority export sectors, including electronics, eco-friendly goods, wood and furniture, agriculture, and garments and textiles.

The export promotion strategy report for 10 priority sectors and fields has recently been handed over to the Ministry of Industry and Trade by representatives of the Swiss Agency for Development Cooperation Agency in Vietnam.

This is taking place as part of the programme aimed at supporting the implementation of the Commodity Import-Export Strategy for the period up to 2030.

The Commodity Export Strategy Report focuses on prioritized industries and sectors and is produced by the ITC, within the framework of the Trade Policy and Export Promotion Project (SwissTrade Project).

The reports are shared with the Ministry of Industry and Trade and have been consulted by the Ministry as part of the process of developing and submitting to the Prime Minister for signing and promulgating the Strategy for Import and Export of Goods to 2030, the Action Program to implement the Strategy, and a project on restructuring the industry and trade sector in the period towards 2030.

The reports and products developed by ITC reflect the overall picture of Vietnamese export development over the past decade, duly highlighting its achievements, limitations, and causes, while simultaneously giving suggestions on export development orientations and solutions moving forward.

Bui Huy Son, head of the Department of Planning and Finance under the Ministry of Industry and Trade, said, "The activities of the SwissTrade Project focus not only on building strategic reports but also continue to support the Ministry of Industry and Trade in the organization and implementation of the Strategy and Action Plan through training courses, capacity building training for staff on management, implementation, monitoring and evaluation of strategies as well as plans.”

According to Werner Gruber, head of the Swiss Agency for Development Cooperation Agency in Vietnam, through the strategic co-operation relationship with ITC, Switzerland supports the Vietnamese side in outlining an overall import-export strategy aimed at expanding its scope for effective access to global markets, as well as helping to shape industry strategies and drive growth and innovation within Vietnamese key industries.

This level of co-operation demonstrates Switzerland's commitment to supporting the nation’s sustainable and inclusive economic development.

A separate strategic report for each sector was developed by ITC based on its export potential and contribution to employment and socio-economic development.

Furthermore, ITC also focuses on building its own strategy for five commercial competitive areas, including digital transformation; innovation and entrepreneurship; quality; standards and certifications; sustainability and inclusion; and trade facilitation.

These are important contributors to value chain development and exports, whilst the report's conclusions are also consistent with the country’s major economic picture.

Vincem Ha Tien exports first cement batch to US

Vicem Ha Tien Cement Joint Stock Company (Vicem Ha Tien) has announced that its first batch of cement exported to the US will arrive at Guam port later this month.

The company's cement export to a demanding market like the US confirmed its capacity and position and marked a good sign for Vietnamese cement producers, thus contributing to the overall export turnover of the country.

In the coming time, Vicem Ha Tien will continue to diversify its consumption markets and conquer new markets which have strict requirements on product quality.

Vicem Ha Tien has to date had 13 products certificated with the “Green Mark” by the Singapore Green Building Council (SGBC) for meeting environmental friendliness.

Vietnamese businesses look towards green future: seminar

A programme and a seminar on green technology and carbon credit were held in Dong Nai on August 26 as part of the Innovative Entrepreneurship Day 2023 in the southern province (Techfest DongNai) and the Dong Nai technology-equipment and trade fair.

The seminar looked into opportunities and challenges to the inevitable trend of growing green to integrate into the world, businesses’ experiences in environmental protection, and policies in support of enterprises that are looking towards green technology and green future.  

Pham Hong Quat, Director of the National Agency for Technology Entrepreneurship and Commercialisation Development under the Ministry of Science and Technology, noted that Dong Nai and other localities nationwide are shifting to green technology, green economy and circular economy.

Nguyen Thanh Son, General Director of Incom Saigon, stressed that information technology helps businesses ensure sustainable administration and integrate into the world.

Vietnam will officially run a carbon trade exchange in 2028, according to a draft project on the development of a carbon market in Vietnam conducted by the Ministry of Natural Resources and Environment.

This market will strengthen the activities of connecting and exchanging carbon credits between Vietnam with regional and international markets.

According to the draft, Vietnam will pilot the operation of this carbon credit market in 2025.

The project is built on the basis of the Government's Decree 06/2022/ND-CP. This decree details the reduction of greenhouse gas emissions, the protection of the ozone layer and the development of the carbon market.

Hanoi, Red River Delta provinces boost connection

An exhibition featuring potential and opportunities for further connection between Hanoi and Red River Delta provinces opened in Ha Long city in the northeastern province of Quang Ninh on August 25 evening.

Director of the Hanoi Centre for Investment, Trade, and Tourism Promotion Nguyen Anh Duong said that the exhibition is part of activities to promote cooperation between Hanoi and Red River Delta localities, including Quang Ninh, Ha Nam, Thai Binh, Hai Duong, Thai Nguyen, Thanh Hoa, Ninh Binh and Lao Cai.

Covering an area of more than 2,000 sq.m, the exhibition shows the achievements, potential, and investment environment of Hanoi and other provinces and cities in the region.

In addition, their key products, including specialties, products under the One Commune One Product programme, and handicrafts together with tourism information are introduced.

The exhibition will run until the end of August 27.

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