Hanoi’s budget revenue is estimated at 253.2 trillion VND (10.6 billion USD) in the first seven months of this year, equal to 71.7% of the yearly estimate, and up 20.8% year-on-year, according to the municipal People’s Committee.

Of the total, domestic revenue totalled 238.3 trillion VND, up 23.5%, while revenue from crude reached 1.9 trillion VND, up 12.9%, and that from import and export activities 13 trillion VND, down 12.9%.

In the period, the State-run business sector contributed 49.9 trillion VND to the budget, up 37% year-on-year, the foreign-invested sector 17.1 trillion VND, up 23.1%, and the non-State sector 48.9 trillion VND, up 6.8%. Collection of personal income tax rose by 0.3% to 24.7 trillion VND.

Meanwhile, the capital city’s budget spending in the period was estimated at 45.7 trillion VND, up 26.4% year-on-year and equal to 43.5% of the yearly estimate. Of the amount, 18.8 trillion VND was spent on development investment, a yearly rise of 53.1%, and 26.9 trillion VND was regular expenditure, up 14.2%. In Jan-Jul, the total mobilised capital of credit institutions in the city was estimated at 4.98 quadrillion VND, up 0.31% against the previous month and 2.6% compared to that at the end of 2022.

The total credit outstanding balance reached 3.06 quadrillion VND, a month-on-month increase of 0.58% and up 4.18% compared to that in late 2022.

Danang welcomes 3.5 million tourists in H1

Over 3.5 million domestic and international tourists came to the central coastal city of Danang between January and June, soaring by 116.6% over the same period last year.

During the six months, accommodation and catering services generated total revenue of VND10,600 billion, rising by 39.1% year-on-year.

Notably, the city’s hospitality industry served 706,000 tourists in June alone, when the Danang International Fireworks Festival took place. The figure increased 34.1% against May.

On certain days, Danang International Airport handled up to 150 flights per day, a 1.5-fold rise over the daily average.

The positive results have been driven by steady growth in Danang’s tourism sector post pandemic. After a three-year hiatus due to Covid-19, the city welcomed 3.7 million visitors in 2022, a 3.1-fold increase over 2021.

Local authorities have made efforts to improve the quality of services and diversify its tourism offerings to attract visitors.

Of note, the number of lodging facilities in Danang grew 5.4 times from 2008 to 2018. As of 2020, Danang had over 940 tourist accommodations of all types with 40,000 guest rooms.

Startups ponder moves during fundraising scarcity

Difficulties are encircling many tech startups, with capital flows into the field congested and sharply decreasing over the past few months.

Hoang Bao Long, CEO of tech development startup LacBird, admitted that the economic downturn has affected investors, partners, and customers of businesses.

“Three investment funds have committed to support LacBird up to $500,000, but we have not received any disbursement so far this year,” Long said.

This is in contrast from 2022 when the company quickly received disbursement from three investors as well as a venture capital fund.

Vietnam’s technology startup ecosystem ranks third in Southeast Asia in terms of attracting investment, but it is moving in a downward direction.

According to data tracking platform Tracxn in mid-July, total investment in tech startups in Vietnam in the first half of 2023 fell by 82 per cent on-year, from $372 million to $66 million.

Funding for tech startups at seed level saw the biggest decline when they raised only $7.3 million over the course of six months, down 81 per cent on-year. Most of the successful fundraising deals took place in the first quarter, with only $8.5 million successfully raised in Q2.

According to Tracxn, the decline stems from fluctuations in the global economy and rising inflation rates, which has made many investors more cautious.

“It is not easy to maintain a team of 500 engineers in this difficult context,” said CEO of ZSolution, Tran Quang Chau. ZSolution has been providing solutions to increase sales revenue and business administration since 2020, and is aiming to become a unicorn within the next two years.

Bui Diep, co-founder of the eJoy startup project in educational technology and the champion of Startup Vietnam 2022, said, “It is very difficult to convince people to invest in this period, especially for projects that do not yet have a product because customers are no longer willing to pay for things that are unclear like previously.”

Nevertheless, some investors are still willing to make a move if they can see the attractiveness and long-term development potential of a project.

“I can invest in a scalable startup that demonstrates the founder’s vision for the next decade. Startups need to verify the suitability of their products to the market and find a growth model that can generate sustainable profits,” said Hoang Thi Kim Dung, country director at Genesia Ventures Vietnam.

According to Tracxn, venture capital flows in the first half of this year tended to pour into healthtech, fintech, and enterprise applications. Healthtech successfully raised $53.5 million, up 118 per cent on-year, while fintech and enterprise applications successfully attracted $6.2 million and $5.1 million, respectively.

Blockchain infrastructure, meanwhile, remains a high-potential area as it continues to lead in terms of venture capital, with 20 private transactions and over $493 million in funding. This was followed by DeFi with $144 million and Web3 with $107 million, according to global statistics from CoinTelegraph Research Venture Capital.

In this country, the Vietnam Blockchain Association (VBA) in July launched the SwitchUp accelerator programme with the goal of solving the problem of interaction between investment funds and startups.

VBA vice president Phan Duc Trung said, “We are a non-profit professional social organisation, but we remain committed to promoting the development of the tech market by incubating capital sources to promote venture activities through connection with financial institutions.”

The main feature of the project is an investment committee that combines traditional financial investors and international investment funds with digital assets, Trung added.

With investment from more than 50 funds and international organisations, SwitchUp is committed to supporting startup projects throughout Vietnam and the wider region to raise capital and develop sustainably in the blockchain ecosystem.

Banking organisations seek VAT reduction addition

The Vietnam Banks Association has proposed a 2 per cent VAT reduction for the entire banking sector, which is currently excluded from the list of sectors entitled to the tax cut.

Nguyen Quoc Hung, vice president and secretary general of the association (VNBA), emphasised the prevailing challenges encountered by enterprises, especially with resource depletion.

“Despite the government implementing numerous impactful measures to alleviate hardships faced by businesses and citizens, the economy’s capital absorption capacity remains subdued,” Hung said.

In light of this scenario, the VNBA proposed the reduction of VAT for commercial banks on par with other businesses. This move aims to provide commercial banks with the necessary leeway to significantly lower lending interest rates, thereby extending much-needed support to struggling businesses.

Hung pointed out several significant challenges banks are currently facing, including issues around credit growth rates and bad debts.

“The economy’s capital absorption is relatively low, despite credit institutions implementing substantial reductions in lending interest rates. As a result, the credit growth rate remains modest, hovering just above 4 per cent. Compounded by difficulties in the capital market and real estate sector, the quality of bank assets has deteriorated, leading to an increase in bad debts,” he noted.

Some experts, however, have pointed out that banks continue to report significant profits, and thus a proposal to reduce VAT for them may be viewed as inappropriate.

Dr. Dinh Trong Thinh of the Academy of Finance asserted that policymakers have thoroughly examined the impact of VAT reduction in the banking and financial sector.

“Their assessments revealed that such a reduction fails to stimulate consumption activities effectively, or foster growth in the banking industry. Consequently, the National Assembly does not support including the banking sector to be eligible for VAT reduction,” Thinh said.

According to him, businesses and associations have the right to propose tax reductions tailored to their respective industries and fields of activity. However, policymakers must carefully balance the overall economy and consider numerous factors across all sectors.

“The primary objective of VAT reduction is to stimulate demand and encourage consumption while ensuring budgetary equilibrium for optimal economic functioning and minimal adverse impact,” he said. “The VAT reduction policy should be harmonised across industries in the economy, tailored to the prevailing economic conditions during each specific period.”

A deputy general director of one state-owned bank acknowledged that the VAT reduction policy benefits consumers as an indirect tax. However, in the banking industry, VAT is only applicable to certain services such as inter-bank and overseas transfers, SMS banking fees, and ATM withdrawal fees, among others. Consequently, if the banking industry receives a VAT reduction, those utilising banking services will also experience positive effects.

“Nevertheless, the impact of the VAT reduction on banking services may not be particularly significant for consumers. This is due to the fact that many digital banking applications offer free money transfers between banks, rendering the related fees negligible,” he said.

“For instance, the current SMS fee is generally about 46 US cents, inclusive of 10 per cent VAT. A reduction of 2 per cent for the banking industry is quite minimal and will not be perceptible to most consumers.”

Exporters being stifled by VAT tweaks

The constant changes of requirements for verification of records and invoices are being called too challenging for exporters, with businesses complaining that VAT refund procedures are becoming more baffling.

Nguyen Thu Doan, director of a furniture exporter in the southern province of Binh Duong, claimed that the requirements for verification of invoices and the origin of raw materials are constantly changing, so it is difficult for businesses to get a handle on the regulations.

The tax authority requires enterprises to verify every invoice for domestic materials, and then verify foreign customers. However, instead of waiting for the tax authority to verify the identity of the overseas buyers as before, the company is asked to have a tax officer check and verify when the goods are shipped, Doan said.

“At present, the market is falling and we have narrowed the company’s operations due to a lack of orders. This July, we had an export order and asked the tax officer to come and verify. After scheduling an appointment, the tax authority said it did not need to check shipping orders, and they would check the input invoice verification records, and otherwise they would only refund verified invoices,” she said.

“However, the tax authority has already confirmed more than 60 per cent of the total input invoices, but we have yet to be refunded because of the requirement to verify the origin of the wood,” Doan said. “Enterprises mainly buy raw materials from other companies, mostly state-owned ones, but it takes a lot of time to verify. And verifying shipping lines or ports is the responsibilities of the tax authorities. What are businesses supposed to do?”

Le Manh, chairman of Leglor Services Trading Production in Ho Chi Minh City, said that over the last two years, delayed VAT refunds have totalled VND30 billion ($1.25 million). The company has received VND10.5 billion ($437,500) so far, and do not know when they will get the rest.

“The process of VAT refunding is too complicated. Our tax refund dossier was first submitted in July 2021. At the end of 2021, the dossier had to be adjusted because the District 9 Tax Department was waiting to merge with Thu Duc’s tax department,” Manh said.

“Since then, we have sent six petitions and two proposals to the new tax office. The authority confirmed that the dossier was complete and clear, but could not give a refund due to problems in regulations on origin verification,” Manh added.

Ngo Sy Hoai, vice chairman of the Vietnam Timber and Forest Products Association, said that wood exports have dropped significantly in recent times. There are numerous reasons for the difficulties in the wood industry, but most come from the US market (accounting for 55 per cent of total exports) applying trade protectionism, resulting in a decrease in exports from Vietnam.

He said that amid these difficulties, $260 million in VAT for related enterprises has not been refunded, of which the woodchip industry accounts for 65 per cent.

“This is just an estimated amount, and it may be even double because many businesses are afraid to ask tax and customs authorities. So the VAT refund for businesses needs more substantive and effective solutions to remove these issues,” Hoai said.

He added that timber exporters wanted the lending rate from foreign currency loans to be reduced to 3.8 per cent from an existing average of 4.2-6 per cent a year in order to support them to overcom challenges and increase competitiveness. “It is necessary to conduct a VAT refund for these enterprises because the amount is too large. Moreover, the tax authority should remove wood producers from the high-risk business list in tax refund because the main sources of raw materials come from forests and farmers, so it is difficult to meet the requirements of the tax authority,” Hoai said.

Economist Dinh Trong Thinh said that tax authorities were responsible for fully refunding tax according to legal provisions.

“The law also identifies the maximum confirmation time for extension is 15-20 days, and cannot be extended for a whole year. If the tax refund is delayed, the tax authority must consider and change the regulations, and give a specific deadline,” Thinh said.

“It is also necessary to stipulate that after getting tax refunded, if any fraud is detected, enterprises must take responsibility, which will improve the responsibility of businesses,” he added.

Eighty-two companies delay bond repayments in H1

A recent report by MBS Research said that 82 companies have deferred the payment of principal and coupon on their bonds from January to June.
The real estate sector has borne the brunt of the delays, with 73% of the postponed payments attributed to businesses in this sector.

During the second quarter of 2023, the total value of delayed bond repayments reached nearly VND24.3 trillion, contributing to an estimated overdue debt of VND183 trillion for the year thus far. These delayed payments constitute 17% of the overall outstanding corporate bond value.

Despite persistent woes, the corporate bond market showed signs of improvement in the second quarter, backed by a surge in bond issues in June, totaling over VND30.6 trillion.

The banking sector played a significant role in this period, actively engaging in the issuance of bonds worth VND19.8 trillion, which accounted for 55% of the total value of bond sales over the three months.

However, the first half of the year saw a sharp decline of 65% in corporate bond issues against the same period last year, the steepest fall in the market in five years.

Throughout this period, the real estate sector dominated bond issues, contributing to more than 50% of the total bond value issued since the beginning of the year.

Key issuers in this segment include Hung Yen Urban Investment and Development Company, Nam An Investment And Trading JSC, and Southern Star Urban Development and Trading Investment JSC.

Hung Yen Company issued bonds valued at VND7.2 trillion, while the others each sold VND4.7 trillion in bonds.

On the other hand, the banking sector witnessed the involvement of 10 lenders in bond issues during the first half of the year, raising VND20.2 trillion through this channel.

Techcombank and TPBank led the way with the highest bond issues, at VND8 trillion and VND3.8 trillion, respectively, followed by HDBank and OCB with VND2 trillion each.

Farm exports thrive but fishery and forestry crumble in January-July

While agricultural and livestock exports gained impressive growth in the first seven months of 2023, the fisheries and forestry sectors struggled.

Agricultural, forestry and fishery exports in July edged up 5.3% over the same period last year to US$4.62 billion, according to data of the Ministry of Agriculture and Rural Development.

Agricultural exports surged 27% against last July to US$2.32 billion while the livestock industry expanded a sharp 35.6% to US$45 million.

However, aquatic exports fell 15% to US$800 million, and the outbound shipments of forestry products dropped 11% to US$1.24 billion.

Vietnam earned some US$29.13 billion from exports of agricultural, forestry and fishery products in the first seven months of 2023, down 9.1% over the same period last year.

The fishery industry faced the most significant setback, with its exports down 25.4% to US$4.95 billion. Similarly, forestry exports slid 25.5% to US$7.79 billion.

Conversely, the agricultural sector demonstrated resilience, with its exports reaching nearly US$15 billion, up 13.2% year-on-year.

Some products reported the strongest rise in export revenue, such as fruits and vegetables at US$3.23 billion, up 68.1%; rice at US$2.58 billion, up 29.6%; cashew nuts at US$1.95 billion, up 9.8%; coffee at US$2.76 billion, up 6%; and livestock products at US$276 million, up 27.4%.

In terms of export destinations, Asian markets took the lead, accounting for US$14.06 billion and expanding by 2.3%. Exports to Africa also grew 14.1% to US$573 million.

However, exports to the Americas plunged 29.2% to US$6.52 billion. European markets also faced challenges, with exports amounting to US$3.29 billion, down by 13.3%. Similarly, exports to Oceania declined 25.6% to US$408 million.

China, the U.S., and Japan remained Vietnam’s top export markets, with China making up 21.9% of Vietnam’s total exports at US$12.68 billion, up 12.5%.

The U.S. contributed 20.4% to Vietnam’s export revenue, totaling US$5.93 billion, down 29.3%. Japan held a 7.6% share, reaching US$4.44 billion, down 6.9%.

PM urges to prevent illicit trade, transportation of pigs into Vietnam

Prime Minister Pham Minh Chinh urged to prevent illegal trade and transportation of pigs across the border into Vietnam.

In his telegram, the PM stated that the illegal trade and transportation of pigs into Vietnam, especially from Cambodia, has recently become complicated, affecting domestic production and increasing the risk of infection and spread of dangerous diseases in herds of pigs locally.

Smuggled pigs of unknown origin may be fed with banned animal feeds in husbandry. Moreover, illicitly transported pigs fail to meet veterinary hygiene and food safety requirements; thus, posing a serious risk to the domestic livestock herds and consumers’ health.

The Prime Minister requested chairpersons of municipal and provincial people's committees, ministers and heads of the National Steering Committee against Smuggling, Commercial Fraud and Counterfeiting (or the National Steering Committee 389) to implement solutions to prevent, detect and strictly handle cases of illegal trade and transportation of pigs across the border into Vietnam.

Responsible ministries, branches and localities should strengthen inspection and control, especially at border gates, trails, openings of border areas, seaports, and riverways to throw the book on smugglers who illegally transport pigs into Vietnam across border crossings.

Staff of responsible agencies once detecting illegally imported pigs must be re-exported or destroyed immediately as well as issued tough penalties on organizations and individuals that breach the regulations. Inspectors should pay regular visits to establishments that collect and slaughter cattle, especially those adjacent to the border as well as strengthen traceability for the transportation of pigs for consumption in the area for prompt detection of violations.

The Prime Minister also requested to establish inspection teams who will control and prevent the illegal transport and trade of pigs into Vietnam. The Ministry of Public Security should direct police stations and localities to set up special teams to fight against illegal cross-border traffickers and transports.

Meanwhile, the Ministry of Industry and Trade should direct market surveillance forces to strengthen measures to control market circulation, promptly detect and strictly handle cases of illegal transportation, trading and transportation of pigs into Vietnam and keep a close eye on illegal trade of pigs without clear origin on the market.

The National Steering Committee 389 should direct preventative measures against smuggling, transporting and illegally trading in animals and animal products, especially pigs. Furthermore, it should share information and data with veterinary authorities at all levels to do well its task.

US$165 million aluminum alloy plant to be built at VSIP Nghe An

 On August 1, the People's Committee of Nghe An Province granted a license to Innovation Precision Co., Ltd for the construction of an aluminum alloy plant with a value of US$165 million.

Being a member of China-based Shandong Innovation Metal Technology Group, the plant will have a total annual output of 100,000 tons of aluminum alloy to produce home electronic products, green energy generation, metal furnaces and auxiliary industries.

Covering an area of 11.78 hectares, the plant will be located in the Vietnam-Singapore Industrial Park (VSIP) Nghe An and will employ about 1,500 local workers.

The company expects to start construction of the plant in August 2023, with production lines fully operational in October 2024.

According to the Foreign Investment Administration under the Ministry of Planning and Investment, Nghe An province attracted a total of US$725.4 million in newly registered and increased capital in the first half of the year, ranking eighth among 63 provinces and cities nationwide.

So far, the province has attracted a total of US$890 million in FDI capital.

Vietjet offers tickets to Japan, Singapore, Indonesia from only 0 VND

Vietjet is offering thousands of attractive international flight tickets from 0 VND on every Wednesday, Thursday, Friday in August.

Especially, with this week's zero-dong flight menu from August 2 to August 4, Vietjet invites travel fans to discover some of the most favourite destinations this summer: Japan, Indonesia, Singapore at www.vietjetair.com and Vietjet Air mobile app.

Accordingly, from 0:00 to 23:59 from August 2 to August 4, passengers have opportunities to hunt 0 VND tickets on routes including Hanoi – Fukuoka/Nagoya, Ho Chi Minh City – Bali/Jakarta, Hanoi – Bali, Da Nang – Singapore at  www.vietjetair.com or Vietjet Air mobile app with flexible flight time from August 10, 2023 to March 31, 2024.

Vingroup raises funds from bond issuance for VinFast factory in Hai Phong

Vingroup, the largest private economic conglomerate in Vietnam, is going to issue bonds to mobilise VND10 trillion for its affiliate VinFast’s car manufacturing plant in Hai Phong.

The group is expected to raise VND6 trillion from 36-month term bonds and VND4 trillion from 24-month term bonds, offering a price of VND100,000 each bond.

Holders of 36-month term bonds will enjoy an annual interest rate of 15% for the first two years, and then a floating interest rate equal to the reference interest rate plus 4.5% in the following years.

Meanwhile, holders of 24-month term bonds will enjoy an annual interest rate of 14.4% for the first two years, and then a floating interest rate equal to the reference interest rate plus 4% in the following years.

The money to be raised from bond issuance will be used to invest in VinFast’s car manufacturing plant in Dinh Vu Economic Zone in the northern port city of Hai Phong.

Established in 2017, VinFast, an affiliate of Vingroup, owns a state-of-the-art automotive manufacturing complex with globally leading scalability that boasts up to 90% automation in Hai Phong.

VinFast is committed to its mission of creating a sustainable future for everyone. The company converted into a fully EV manufacturer in 2022, and has delivered four EV models: VF e34, VF 8, VF 9 and VF 5 to customers in Vietnam to date.

VinFast recently crossed an important milestone on the journey to becoming a recognised global EV brand with the first VF 8 EVs exported to North America earlier this year. It hosted a groundbreaking ceremony on July 28 for its electric vehicle plant in North Carolina, USA.

The company has also opened its flagship stores in Europe in an effort to make inroads into this lucrative market.

Vietnam expects more positive economic recovery in H2

Vietnam’s economy started the second half of this year with positive signals which are expected to pave the way for a better recovery in the coming time.

According to the General Statistics Office (GSO), in July, industrial production which can reflect many angles of the economy was better than the previous month.

The Index of Industrial Production (IIP) in July 2023 not only increased by 3.9% compared to the previous month but also increased by 3.7% compared to the same period last year. In particular, the IIP in July 2023 increased again in localities including Bac Ninh (up 23.8%), Thai Nguyen (9%), Vinh Phuc (5.8%), Binh Duong (2.3%), Ho Chi Minh City (1.9%), and  Long An (0.8%)

In the first seven months, the IIP of 49 provinces and centrally-run cities increased and that of 14 others across the country decreased.

Increased industrial production probably implied positive signals for domestic consumption and exports. Data from the GSO showed that Vietnam’s export turnover in July 2023 reached 29.68 billion USD, up 0.8% compared to June. Meanwhile, foreign investment attraction for the first time this year increased by 4.5% from the same period last year, reaching nearly 16.24 billion USD.

The figures are quite consistent with the data on the Purchasing Managers' Index (PMI) of Vietnam's manufacturing industry that S&P Global has just released.

Accordingly, Vietnam's PMI rose to 48.7 points in July from 46.2 points in June. Although the number was still below 50 points, which showed production declined for the 5th consecutive month, this decline was quite mild and lowest in this period.

Despite the modest increase in industrial production and exports, Vietnam’s tourism and services saw a positive recovery as the country welcomed more than 1 million international visitors in July, 6.5% higher than the previous month and 2.9 times higher than the same period last year.

In general, in the first seven months, Vietnam welcomed more than 6.6 million international visitors, 6.9 times higher than the same period last year.

Meanwhile, revenue from accommodation and food services in the first seven months of 2023 reached 377.3 trillion VND (15.88 billion USD), accounting for 10.7% of the total retail sales of goods and services, up 16.3% over the same period last year. Tourism revenue reached 18.6 trillion VND, accounting for 0.5% of total retail sales of goods and revenue of consumer services, up 53.6% over the same period last year.

Localities saw rising tourism revenues in the last seven months included Da Nang, up 99.7%; Hanoi 89.7%; Quang Ninh 82.5%; and Khanh Hoa 75.1%.

International organisations through their latest reports also forecast a more positive outlook for Vietnam's economy in the second half of the year.

Standard Chartered Bank forecast that Vietnam's economy will recover in the second half of 2023 with GDP growth predicted to reach 7% year-on-year, from 3.7% in the first half of the year.

According to the International Monetary Fund (IMF), Vietnam's economic growth will recover in the second half of 2023 thanks to the recovery of exports and loosening domestic policies.

Deputy Minister of Planning and Investment Tran Quoc Phuong said that, to overcome economic difficulties, it is necessary to implement drastic and effective solutions to speed up the disbursement of public investment, stimulate consumption and investment demand, and boost exports as they are important growth drivers of the economy.

More business conditions need to be removed to create momentum for enterprises

Besides reducing business conditions, a number of ministries and sectors have continued to issue and enforce new business conditions with stricter requirements that cause difficulties for enterprises, said Deputy Minister of Planning and Investment Tran Duy Dong.

Dong said that if the problem is not solved soon, it will erode achieved reform results and reduce business confidence.

The Government has defined improving the business environment and increasing the national competitiveness as key economic policies. 

According to the latest preliminary review of the Central Institute for Economic Management (CIEM), the quality of business condition reform in some areas has improved. Specifically, business conditions in some fields are systematically designed, making them clear, easy to understand, and easy to follow. Business conditions were removed as they were too general, and vague. Conditions relating to personnel and facilities are also clearly defined.

The list of conditional business lines has been reduced from 267 in 2014 to 243 in 2016, and to 227 at present under the Investment Law 2020.

Nguyen Minh Thao, Head of the Research Department on Business Environment and Competitiveness of CIEM, said that the list of conditional business lines has decreased just in number but their content is broader. 

In other words, the number of specific industries with regulations on business conditions in specialised laws is much larger than 227 lines under the Investment Law 2020.

Thao said that the results from a survey of the Vietnam Chamber of Commerce and Industry (VCCI) with over 10,000 businesses showed that up to 60.1% of businesses had difficulties relating to administrative procedures when applying for business licenses to conditional business lines.

Over 61% of the businesses said that they paid informal fees to get business licences. Difficulties in granting conditional business licenses are the reason why 21.7% of businesses have to delay or cancel their business plans.

According to CIEM's preliminary assessment when reviewing and evaluating reforms in terms of business conditions and reform efforts, the results have not changed compared to 2019. 

Ly Thi Kim Chi, Chairwoman of the Ho Chi Minh City Food Association, said that she knows some inadequacies in administrative procedures have existed for five years and caused difficulties and losses for businesses.

Nguyen Thi Dieu Hong, Head of the Law Building Section at the VCCI’s Legal Affairs Department, said that it is necessary to have a consensus among ministries and agencies when approaching the term “business conditions”.

Different understanding causes inaccuracy in determining a business condition and management mechanism.

“Notably, the quality of business environment reform will also be improved if ministries and sectors strengthen the control over the issuance of business conditions and conditional business lines,” Hong said.
 
In a relevant development, the Ministry of Planning and Investment is finalising a draft resolution on improving the business environment and the national competitiveness, which is expectedly submitted to the Government in September 2023. 

Deputy Minister of Planning and Investment Tran Duy Dong said that the ministry also plans to propose the establishment of a working group to promote the implementation of the resolution.

Ministries and sectors were urged to engage the business community in formulating policies to ensure their feasibility in practice, which helps create breakthroughs for the business environment in 2023 and the coming years.

Hanoi launches OCOP product, safe farm produce fair

Hanoi launched a week-long event on August 3 to popularise and promote sales of products of the OCOP (One Commune-One Product) Programme and craft villages, as well as safe agricultural and food products.

Ta Van Tuong, Vice Director of the municipal Department of Agriculture and Rural Development, said that the event aims to support OCOP product producers in Hanoi and other localities to increase sales of OCOP products and specialties through both online and offline channels to consumers in the capital city and other countries.

During the event, producers will receive consultations and guidance on how to make their OCOP products, products of craft villages as well as safe agricultural and food products suitable to the market standards, requirements, customers’ trend, and procedures of distributors, thus increasing their sales.

Nguyen Van Tuan, a representative of Tan Viet A agricultural cooperative from the northern province of Cao Bang, said that the event provides the cooperative a chance to have new partners and new customers.

Nguyen Thu Hang, a local of Tay Ho district of Hanoi, said that she is interested in fresh seasonal fruits sold at the event, including longan, durian and avocado, which have high quality and reasonable prices.

With more than 50 booths, the event is offering a chance for Hanoi consumers to enjoy diverse products and specialties of many localities.

It will take place until August 6.

PM gives directions to untangle knots in real estate market

Prime Minister Pham Minh Chinh assigned specific tasks to ministries, agencies, localities and businesses to tackle obstacles in real estate market development at a teleconference in Hanoi on August 3 that reviewed the implementation of the Government’s Resolution No. 33/NQ-CP on a number of solutions to boost the real estate market's development.

As difficulties are forecast ahead for the country, the region and the world, the PM said the priority will continue to be given to stabilising macro-economy, curbing inflation, ensuring major balances of the economy, propelling economic growth while managing public and Government debts, budget overspending, which will lay a foundation for the development of real estate market.

He requested that the legal framework related to the property market should be reviewed, with a focus on expediting the launch of real estate trading floors, intensifying urban planning efforts, adopting flexible monetary policies, expanding fiscal policies and ensuring a harmonious and effective coordination between monetary and fiscal policies.

Moreover, efforts should be made to boost public investment and the implementation of the three national target programmes, stimulate production and trade, generate jobs and create people's livelihoods.

Additionally, the segments and prices of the real estate market must be restructured, while the construction of social housing and accommodations for workers, as well as renovation of old apartment buildings should be accelerated, the PM said.

The Ministry of Construction was assigned to continue fine-tuning the draft revised Housing Law, the draft amended Real Estate Business Law and the draft Land Law and revising related decrees, toward creating a synchronous, consistent and feasible legal framework. The ministry was also required to work with relevant ministries and sectors to guide and assist enterprises and localities in carrying out the project on building at least 1 million social housing units for low-income earners and workers in industrial parks during the 2021-2030 period, and effectively rolling out the support package of 120 trillion VND (5.2 billion USD) and a credit support package under the economic recovery programme.

The leader asked enterprises to continue restructuring their operations, investment portfolios and products to suit their financial and business administration capacity as well as public demand. They should focus resources on projects that are nearing completion and large projects with high feasibility in order to early put them into operation and create cash flow for them while increasing supply for the market.

They were also advised to handle bad and overdue debts in order to access credit, bonds, securities for project implementation.

Other specific tasks were also assigned to the State Bank, the ministries of planning and investment, finance, natural resources and environment, and the Government Inspectorate.

Top 30 social impact businesses announced

Thirty outstanding social impact businesses (SIB) participating in the 2023 COVID-19 recovery programme was announced on August 3 by the Agency for Enterprise Development under the Ministry of Planning and Investment, the Global Affairs Canada, and the United Nations Development Programme (UNDP).

The winners will undergo intensive training and receive 100 million VND (4,208 USD) each to reform their business models and products, and recover after the pandemic.

The programme forms part of the "Leveraging Vietnam's Social Impact Business Ecosystem in Response to COVID-19" (ISEE-COVID) project that provides technical and financial support for SIB with feasible business models and significant impacts on agriculture, tourism, education and health care.

The 30 were selected from 239 businesses nationwide, of which more than two-thirds have put women at the centre.

In his remarks, Deputy Minister of Planning and Investment Tran Duy Dong noted that the 2021 support package has proven effective as it has helped 31 SIB outline their business strategies integrated with sustainable development factors like environment, climate change response and social welfare.

Notably, the turnover of all the 31 has recovered and increased from 2021, the official said.

Canadian Ambassador to Vietnam Shawn Steil lauded the role of SIB in addressing social gaps and environmental issues, and creating positive impacts in Vietnam.

They have generated jobs for vulnerable groups, promoted environmentally-friendly products, and increased values for products, he added.

UNDP Resident Representative Ramla Al Khalidi expressed her belief that the selected businesses will optimise benefits from the programme to develop and perfect their products and services.

Vietnam Medipharm Expo opens in HCM City

The 21st international medical, hospital, and pharmaceutical exhibition – Vietnam Medipharm Expo 2023 opened on August 3 in Ho Chi Minh City with the participation of more than 400 businesses from 22 nations and territories.

The exhibitors are showcasing healthcare products, food supplements, medical equipment, and hospital services in 450 booths.

Speaking at the opening ceremony, Pham Dang Khanh, Deputy General Director of the Vietnam National Trade Fair & Advertising Company (Vinexad) said that the expo introduced the most advanced products and services of large corporations, leading companies from countries and territories including India, the UK, Poland, Belgium, Indonesia, Malaysia, US, and Spain.

In addition, medical associations and international health ministries from India, Russia, the Republic of Korea, Indonesia, Turkey, and China have also designed their national pavilions.
 
Hua Phu Doan, Vice Chairman of the Ho Chi Minh City Medical Equipment, said that the expo taking place from August 3- 5 is expected to help boost trade promotion and develop the medical and pharmaceutical market in Vietnam.

He said the expo also aims to help turn Vietnam into a top destination and choice for investors, contributing to the implementation of the strategy on public health care.

Visitors to the expo will have an opportunity to see the latest medical technologies, breakthrough health care solutions, and quality medical products in the global market.

Within the framework of the expo, seminars, and business matching activities will be held to bridge domestic and international businesses, sellers, and buyers.

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