The Vietnam - Australia Digital Forum 2023 was held in Sydney, the Australian state of New South Wales (NSW), on August 4 to promote the cooperation in information and communication technology as well as the digital field between the two countries.

The event was co-organised by Vietnam's Ministry of Information and Communications (MIC), the Australian Trade and Investment Commission (Austrade) and the NSW Trade and Investment Department in charge of the Vietnam market.

The forum took place as part of Vietnamese Minister of Information and Communications Nguyen Manh Hung's visit to Australia, Director of the MIC’s Department of International Cooperation Trieu Minh Long told Vietnam News Agency correspondents in Sydney.

In 2023, one of the key tasks that the ministry focuses on implementing is to support Vietnam's digital business community  go global. In addition to activities in Australia, it also implements programmes in other countries and regions around the world such as the US, Japan, and Europe.

Long highlighted strengths of Vietnam's digital technology enterprises, saying some of them have been successful in foreign markets, even in choosy markets like the US and Japan.

One of the advantages of Vietnamese businesses when accessing the Australian market is that the two countries have good diplomatic and economic relations, along with the strong Vietnamese community in Australia.

Speaking at the forum, Consul General of Vietnam in New South Wales, Queensland and South Australia Nguyen Dang Thang said that developing a digital platform is a breakthrough solution to promote faster digital transformation, reduce costs and increase economic efficiency.

International cooperation is also an important solution to carry out digital transformation, especially promoting the transformation in society, thereby creating momentum for the digital transformation process in government agencies, he added.
Highlighting the two countries' new cooperation opportunities, Thang said Vietnam and Australia have a strong cooperative relationship, high political trust which is an important point for cooperation in cybersecurity.

Karla Lampe, Director of NSW International Engagement & Market Development under the NSW’s Department of Enterprises, Investment and Trade (DEIT), emphasised that Vietnam and Australia are maintaining strongest-ever partnership, both from economic perspective and from the ties between the two governments. Both New South Wales and Vietnam have large technology companies and influential individuals in the media.

She expressed her hope that the two countries further promote economic and trade ties in the future, and outline ambitious digital transformation goals.

At the forum, representatives from agencies, organisations, research institutions and businesses of the two countries discussed issues related to information and communication technology, and digital technology to learn about policy incentives, the investment environment in Vietnam and Australia.

At the end of the forum, they witnesses the signing of a memorandum of understanding (MoU) between Vietnam's Posts and Telecommunications Institute of Technology and its Australian partners including Western Sydney University, the University of Canberra, SET Education, the Association of Vietnamese Australian Scholars and Professionals (VASEA).

Vietnam Report announces Top 10 prestigious banks, insurance, digital companies

The Vietnam Report JSC in collaboration with e-newpaper vietnamnet.vn on August 4 announced lists of the top 10 prestigious companies in banking, insurance and technology in Vietnam in 2023.

The ten banks honoured as the most prestigious commercial banks in the country in 2023 are Vietcombank, VietinBank, Techcombank, BIDV, Military Bank, VPBank, ACB, AgriBank, TPBank, and VIB.

Meanwhile, the ten most prestigious life insurance companies include Bao Viet Insurance, Dai-Ichi Vietnam, AIA Vietnam, Prudential Vietnam, Chubb Vietnam, Generali Vietnam, Hanwha Life Vietnam, Cathay Vietnam, MB Ageas and Mirae Asset Prévoir.

The top ten prestigious information technology - telecommunications companies include Military-run Industry and Telecoms Group (Viettel), FPT Corporation, Viet Nam Posts and Telecommunications Corporation, VNPT Vinaphone Corporation, Mobifone Corporation, CMC Corporation, VNPT-Vinaphone, Vietnam Technology and Telecommunication Joint Stock Company, Hanel Joint Stock Company, Việt Nam Technology & Telecommunication Joint Stock Company, Việt Nam Maritime Communication and Electronics Company, and Tien Phat Technology Joint Stock Company.

The annual rankings are based on independent research and assessment by Vietnam Report. The enterprises honoured in this year's lists are all effective, experienced, well-positioned and reputable representatives, making positive contributions to the overall development of the industry in particular and Vietnam’s economy in general in recent years.

According to a survey by Vietnam Report, banks do not expect breakthrough growth in the second half of 2023. The industry outlook is forecast to be stable, with a growth rate of between 42% and 44. 2% compared to the survey results in 2022 and 2021.

However, opportunities coming from the State Bank's new policies such as flexible interest rate management, closely following market developments, and global digital transformation are expected to bring great impetus for banks to overcome difficulties.

For the insurance industry, the "headwinds" in the market have had a strong impact on the industry in recent years, especially the series of cases related to insurance distribution channels through banks that have pulled down public confidence in the llife insurance market in particular and the insurance industry in general.

Meanwhile, the information technology - telecommunications industry has made progress and continued to be a bright spot in Vietnam's economy in 2022. But from the end of 2022 to the beginning of 2023, businesses in the industry are affected by the weak demand due to the risk of world economic recession and inflationary pressure.

To maintain growth in the current difficult context, businesses need to maintain their development goals, come up with balanced and comprehensive action strategies around technology and process issues and people such as improving competitiveness compared to other technology competitors, enhancing training of high-quality human resources.

Over 81,000 apartment units in HCMC await ownership certificates

More than 81,000 apartment units in HCMC are still awaiting ownership certificates, making life tough for both residents and project developers.

During a recent Q&A session on the issuance of ownership certificates, the HCMC People’s Council Standing Committee said, “Though the city authorities have assigned relevant departments to remove hindrances to commercial housing projects in the city, the handling progress could not meet the expectation of the developers and house buyers, with over 81,000 apartment units still awaiting ownership certificates.”

Estimates show that the documentation handling rate in the realty sector only reaches 67% of the total documents received on a yearly basis. Bottlenecks faced by some properties have existed for decades and the issuance of ownership certificates for apartment buyers lacks a synchronization from different levels of authorities, according to the committee.

One of the main challenges is the lack of a body governing the development of commercial housing projects and a comprehensive overview of projects awaiting ownership certificates. This makes it difficult to identify the reasons for the delays, find solutions, and accurately forecast project schedules.

In response to the situation, the HCMC People’s Council Standing Committee has urged the relevant departments and district authorities not to evade their responsibilities and to expedite the issuance of ownership certificates for apartment buyers. The aim is to complete the process in the third and fourth quarters of this year, according to the Government news site at www.baochinhphu.gov.

Additionally, strict sanctions should be imposed on developers who fail to release mortgages over projects, causing delays for residents in receiving their ownership certificates.

The real estate market in Vietnam is not yet out of the woods due to supply and liquidity problems, despite efforts to stimulate growth through interest rate reductions.

The Ministry of Construction has highlighted the significant shortage of supply across all segments, particularly in social housing and affordable commercial housing. Difficulties in accessing funding sources have hindered businesses from progressing with real estate projects, leading to mass layoffs and impacting social welfare and order.

In the first half of this year, only 25 commercial housing projects were completed, introducing approximately 10,000 new units to the market. This represents a 50% decrease against the same period in 2022.

Similarly, only four social housing projects were finalized, providing 934 units. On the other hand, eight combined resort and officetel projects were concluded, totaling nearly 3,900 units, up 33% over the fourth quarter of 2022. These included 2,500 tourist apartments, 680 villas, and 247 officetel units.

Property transaction prices have also declined. Condominium prices in various localities have dropped by 2-6%. Land prices within projects have fallen by 8-11%.

In terms of transaction volume, around 187,000 successful transactions have been recorded, accounting for 36% of the total transactions seen in the second half of 2022. The land segment has experienced the majority of these transactions, while condominium and landed-house transactions have significantly decreased, amounting to only 40% of the July-December period in 2022.

GE Digital, Bamboo Airways to accelerate fuel cost savings

GE Digital has recently announced an agreement with local carrier Bamboo Airways to help the airline enhance its fuel efficiency and reduce carbon emissions.

The agreement will allow Bamboo Airways to adopt GE Digital’s two software solutions, Fuel Insight and FlightPulse, to reduce fuel costs and optimize operations.

Fuel Insight is designed with advanced algorithms and data analytics to provide insights that airlines can use to optimize fuel consumption. The tool enables businesses to identify inefficiencies and take action to improve fuel efficiency.

Meanwhile, FlightPulse provides a personalized, automated analytics solution for pilots, with timely insights into fuel usage and support their data-driven decisions.

“Bamboo Airways is committed to reducing its environmental footprint and delivering a superior customer experience,” said Captain Tran Duc Luyen, deputy director of Flight Operations Unit of Bamboo Airways.

The partnership between the two firms supports Bamboo Airways to leverage pilots’ expertise and technology to achieve these goals and drive sustainable growth, he added.

Over VND1,400 billion approved for ecotourism project in Ca Mau

The Mekong Delta province of Ca Mau plans to spend VND1,458 billion on resort and ecotourism development in U Minh Ha National Park by 2030.

The project will cover an area of 1,318 hectares, and offer a broad range of tourist products and attractions, such as fauna and flora collections, herbal gardens, forest villages, and traditional craft villages, in addition to diverse hospitality services.

Tran Hieu Hung, director of the provincial Department of Culture, Sports, and Tourism, said the development of tourism in U Minh Ha National Park would ensure natural resources protection and biodiversity preservation in the area.

The province has a two-pronged approach that improves the livelihood of locals based on sustainable tourism and raises public awareness on environmental conservation.

The 8,500-hectare U Minh Ha is part of Vietnam’s 34 national parks and one of the three core zones of the UNESCO-recognized World Biosphere Reserve Mui Ca Mau (Ca Mau Cape).

Northern Vietnam needs 500-kV line in place for more power supply

The prime minister has called for the expedition of the extended 500-kV transmission line circuit 3, aiming to make it operational by June 2024 and enhance the power supply for northern Vietnam. Minister of Industry and Trade Nguyen Hong Dien shared this information during a meeting last week.

The project involves extending the 500-kV transmission line circuit 3 with a length of 514 kilometers, connecting Quang Trach in Quang Binh Province and Pho Noi in Hung Yen Province. It has a total investment of VND23,000 billion and consists of four components.

The project has already been included in the National Power Development Plan VIII and was initially planned for operation in 2025-2026.

To meet the revised deadline, the minister urged Vietnam Electricity Group (EVN) and the National Power Transmission Corporation (EVNNPT) to complete the necessary project dossiers this month and apply for investment policy approval and project investment approval by September.

“After the investment projects are approved, EVN and EVNNPT are required to collaborate with the affected localities to expedite site clearance. This will ensure the project’s completion and operation by no later than June 2024,” said the minister.

Speaking at the Ministry of Industry and Trade’s mid-year conference, General Director of EVN Tran Dinh Nhan said the northern part of the country would face multiple power supply challenges, especially in 2024 and 2025.

He affirmed EVN’s commitment to mobilize all available resources to meet the completion deadline for the 500-kV transmission line circuit 3, which will transmit power from the central and southern regions to the north.

Prior to this, the section of the 500-kV transmission line circuit 3 connecting Vung An, Quang Trach, Doc Soi, and Pleiku 2 was already operational, contributing 2,200 MW of power supply to the north.

Once the extended 500-kV circuit 3 transmission line is completed, it is expected to increase the power capacity transmitted from the south to the north to 5,000 MW.

Vietnam’s fuel price projected to hit VND23,000 per liter in Q3

This represents an increase of nearly VND2,000 per liter for RON95 compared to the current price, bringing it close to the price threshold observed in November 2022.

The price of RON95 gasoline, which currently accounts for 70% of the total amount of gasoline products consumed in the domestic market, is expected to reach up to VND23,000 (US$0.97) per liter in the third quarter.

The Ministry of Industry and Trade (MoIT) released the forecast in its latest report, which assumes that the global price will hit $98 per barrel.

Based on the ministry's analysis, the current domestic gasoline prices are significantly lower compared to the first half of 2022. Specifically, RON 95 gasoline is priced at VND21,420 ($0.91) per liter, representing a 35% decrease. Diesel is 39% cheaper, followed by kerosene at 37% cheaper and mazut at 29% lower.

However, the MoIT expects domestic fuel prices to rise again in the third quarter due to an increase in global prices. According to the analysis and forecast of global consulting firm Wood Mackenzie, the average global crude oil price is expected to be between $87-92 per barrel, resulting in finished product prices of about $90-98 per barrel for gasoline and diesel.

Although these levels reflect a decrease of nearly 13-23% compared to the same period in 2022, they are expected to increase by about 1-2% compared to the first half of 2023.

Under the scenario of an average world oil product price of $90 per barrel, the MoIT expects the prices of biofuel E5-RON92 gasoline to be VND21,325 ($0.9), RON95 gasoline to be VND21,597 ($0.91), and diesel oil to be VND18,115 ($0.77).

If the world finished product price reaches $98 per barrel, the price of diesel oil would be VND19,415 ($0.82) per liter, E5-RON92 would be VND22,657 ($0.96) per liter, and RON95 would be VND23,049 ($0.98) per liter. This represents an increase of nearly VND2,000 per liter for RON95 compared to the current price, bringing it close to the price threshold observed in November 2022.

To mitigate significant fluctuations in domestic fuel prices compared to global prices, the MoIT, in cooperation with the Ministry of Finance (MoF), plans to use the price stabilization fund tool flexibly. This approach aims to control inflation, support economic recovery, and ensure that the Price Stabilization Fund has sufficient room to operate during periods of market uncertainty and high price trends.

According to the General Department of Vietnam Customs, the country imported nearly 4.2 million tons of oil in the year's first five months. Of these imports, diesel oil accounted for about 53% (2.2 million tons), gasoline for 22%, and fuel oil for the rest. On average, Vietnam imports more than 0.8 million tons of gasoline and oil every month.

The two domestic oil refineries, Nghi Son and Binh Son, have a combined monthly production capacity of about 1.1 million tons of petroleum products. At the end of May, the inventory of these focal points was about 1.6 million cubic meters.

Starting on August 25, the Nghi Son refinery, which accounts for more than 35% of the domestic fuel supply, will enter a maintenance period expected to last until late September or early October. To prevent a recurrence of supply disruptions experienced during previous maintenance periods, Minister of Industry and Trade Nguyen Hong Dien announced on July 4 that key gasoline retailers would be urged to effectively implement plans to allocate the minimum required total petroleum resources.

The MoIT has assigned the Vietnam Oil and Gas Group (PVN) to supervise oil refineries and prepare comprehensive plans to ensure their stable operation.

PVN is also responsible for developing scenarios, including technical, human resources, materials, and raw materials, to enable refineries to operate at full capacity and possibly exceed their regular output.

In addition, petrol retailers have been instructed to calculate the expected production shortfall during the Nghi Son refinery maintenance period. These calculations will help prepare a supply plan for the distribution system and the market.

To ensure that enterprises have sufficient resources, the MoIT has asked the MoF to promptly adjust the cost of gasoline and oil trading in the base price formula. Banks are encouraged to provide favorable conditions such as credit lines, preferential interest rates, and foreign exchange support to oil companies to enable them to acquire the necessary funds to import and purchase fuel.

Life insurers under fire over policy deficiencies

Vietnam is working to urgently address shortcomings in the cross-selling activities of life insurance policies, highlighting concerns over advisory quality and the need for comprehensive market inspections.

The National Assembly (NA) has called on the government to urgently deal with deficiencies in corporate bond investment advisory, brokerage, and cross-selling of life insurance policies during loan approval processes.

Of particular concern is the comprehensive inspection of the life insurance market, with a specific focus on investment-linked insurance. The resolution comes following widespread incidents of banks fraudulently selling insurance policies under false pretences, which have shaken confidence in the insurance industry.

The explicit inclusion of a comprehensive inspection of the life insurance market in the parliamentary resolution has sparked considerable public interest.

Currently, there are 19 life insurance companies operating in Vietnam, including major players such as Bao Viet Life Insurance Corporation, Prudential Vietnam, Manulife Vietnam, AIA Vietnam, and Chubb Life Insurance.

According to the Insurance Association of Vietnam (IAV), all insurers have submitted reports to the Insurance Supervisory Authority on their review of insurance agency contracts and efforts to improve control over agency activities. This aims to enhance customer service quality and ensure compliance with the Law on Insurance Business.

Ngo Trung Dung, deputy secretary-general of the IAV, said that recent incidents in the life insurance industry have led to all life insurers taking collective action, reviewing, adjusting, and even reforming their activities and processes.

“Lessons and experiences from similar incidents around the world are being analysed and applied to improve the quality and rebuild trust with customers and regulatory authorities. The IVA and insurers are actively reviewing and amending the code of conduct for insurance agencies, applying strict penalties for violations. These actions seek to improve the quality of life insurance, restore customer trust, and strengthen regulatory oversight in the industry,” he said.

The first five months of 2023 have proven to be a difficult period for the life insurance market, with total premium revenue estimated at VND93.18 trillion ($3.88 billion), a decline of nearly 1.5 per cent compared to the same period last year.

This stands in contrast to previous years, which consistently saw double-digit growth.

A recently-released survey by Vietnam Report noted, “Market confidence is currently at its lowest level in 30 years. Prolonged instances of incorrect advice and deliberate obfuscation by insurance advisors have caused significant difficulties for policyholders, eroding trust in the insurance sector.”

Manulife Vietnam, previously ranked eighth among the top reputable life insurance companies in 2022, is absent from this year’s list. Instead, Mirae Asset Prévoir Life Insurance Co., Ltd. has made its debut entry into the rankings.

Inspections conducted by the IAV in 2022 uncovered approximately 3,100 cases of agent misconduct across 14 offence categories. These cases involved false advertising and misrepresentation of insurance products and services.

The quality of advisory personnel within life insurance companies has raised concerns, particularly in the bancassurance channel, where advisors tend to provide superficial advice, emphasising short-term benefits while neglecting to explain risks and exclusion clauses associated with investment-linked insurance products.

Experts recommend that customers conduct thorough research, engage in discussions with advisors, and resolve any doubts before signing insurance contracts. They suggest exploring multiple product options and insurance companies to find the most suitable coverage, thereby mitigating future insurance disputes.

Companies have been implementing many measures such as increased training programmes for bancassurance advisors and the enforcement of stringent penalties for employee misconduct.

Additionally, the NA plans to issue a decree with stricter regulations on insurance business operations, including requirements for qualifications and certifications of advisory personnel at banks.

These regulations may encompass university degrees specialising in insurance, professional certifications, and a minimum of three trained staff members with appropriate insurance agency licences in every branch of relevant financial institutions.

SBV raises credit growth target to counter economic headwinds

In a move that underscores its proactive policy stance amidst the prevailing economic challenges, the State Bank of Vietnam (SBV) disclosed on July 10 an adjustment to the credit growth target for its credit institutions (CIs) to an estimated 14 per cent across the board.
 
This strategic decision has been made in response to proposals from the CIs themselves, based on a comprehensive evaluation of their operating conditions, financial strength, governance efficiency, and potential for sustainable credit expansion.

The main goal behind this shift is to safeguard the liquidity and operational safety of the entire CI system. Each CI has received specific targets in line with this overarching plan.

In relation to its objectives for 2023, the SBV stated that following the economic growth and inflation targets established by the National Assembly and the government, it has set a preliminary credit growth target for 2023 of around 14-15 per cent. This rate is open to adjustments in line with real-world economic developments.

Amidst an economic growth rate in the first half of the year that fell short of projections, and the difficulties encountered by the principal sources of economic capital, the SBV has recalibrated the credit growth target with an eye on fuelling the economy with additional credit capital – while also remaining mindful of potential inflation risks.

Along with the release of the revised credit growth figures, the SBV has issued a two-pronged directive to the CIs.

Firstly, they are urged to rigorously implement Directive No.01/CT-NHNN issued on January 17, by the SBV's Governor. This concerns the priority tasks for the banking sector in 2023, with a particular focus on potent measures to invigorate safe and efficient credit growth.

The directive calls for an enhancement of credit quality and advocates steering credit towards sectors that are productive and business-centric. This strategy aligns with the government's policy and seeks to meet the capital requirements of enterprises and the public in a timely fashion.

Secondly, the SBV has instructed the CIs to streamline and reduce administrative procedures, simplify and expedite loan processes, and ensure comprehensive legal compliance. The aim is to make it easier for customers to access bank credit, providing a vital boost for businesses and individuals alike in their efforts to revitalise production and business activities, whilst also securing the robust operation of the CIs.

In its forward-looking statement, the SBV has committed to maintaining a close watch on domestic and international market fluctuations. It stands ready to provide liquidity support and enable the CIs to effectively meet the credit demands of the economy.

At the same time, the SBV will continue to review credit growth across the system towards the end of the year and calibrate its management strategies accordingly.

In an interview with local media on July 10, the CEO of a joint-stock bank headquartered in Ho Chi Minh City, revealed that the SBV has just allowed it a credit growth increase of 150 per cent compared to the beginning of the year.

Meanwhile, a leader of another bank in Ho Chi Minh City also mentioned the SBV's move to enlarge its credit room. The executive did not disclose the specific figures but noted that the growth rate varies depending on the credit quality and the assets of each bank.

As of the end of June, credit across the entire system has only increased by 4.73 per cent, equal to one-third of the planned target.

Thai authorities encourage businesses to expand presence in Vietnam's retail market

The Department of International Trade Promotion (DITP), a division of the Thai Ministry of Commerce, has urged Thai entrepreneurs to carefully examine the potential of harnessing Vietnam's thriving retail market.

According to the agency, Vietnamese retailers have undergone a remarkable transformation, embracing modernity and demonstrating a notable receptiveness towards investment and collaboration – thereby presenting lucrative sales prospects.

The DITP's director-general Phusit Ratanakul Sereroengrit emphasised that Vietnam's retail market is poised to reach a staggering $350 billion by 2025.

In addition to this, the leadership at the DITP has encouraged Thai enterprises to prioritise commercial enhancements, engage in environmentally friendly production practices, and demonstrate a keen focus on circular and green economies – all of which are instrumental in stimulating growth within Vietnam's retail landscape.

Moreover, Sereroengrit underscored the significance of e-commerce, noting that online transactions have emerged as a prevailing trend in Vietnam. Leveraging social media platforms for sales would provide Thai businesses with a convenient means to access Vietnamese consumers.

However, he also advised potential entrants into Vietnam's e-commerce market to meticulously examine the country's laws and regulations pertaining to online transactions.

Concluding on a forward-looking note, Sereroengrit disclosed the DITP's forthcoming endeavours in Vietnam, including sales promotion events aimed at facilitating commercial exchanges between Thai and Vietnamese retail establishments. These events are scheduled to unfold from August 1 to 14.

It is worth highlighting that even before Sereroengrit's recommendations, the Vietnamese retail market had already attracted substantial investments from prominent Thai retailers, with Central Retail Corporation (CRC) emerging as a standout player.

According to CRC's CEO Yol Phokasub, Vietnam is regarded as a market brimming with untapped potential, propelled by its continuous economic growth. The Vietnamese retail market is estimated to be valued at an impressive $49.7 billion, exhibiting a robust annual growth rate of 10-12 per cent.

Building on its solid foothold in Vietnam over recent years, CRC has outlined a comprehensive five-year expansion plan that earmarks an investment of approximately $1.45 billion to be deployed over the period.

Shipbuilding industry eyes rosy prospects

In a quest for investment opportunities, leading global players are fuelling the potential of Vietnam’s shipbuilding industry.

More than 100 renowned players in the shipbuilding industry from countries including the United States, the United Kingdom, Singapore, Thailand, and Japan made their presence felt at the Vietnam Marine and Offshore Expo 2023 in Hanoi from July 5 to 7.

This marks an important watershed in the development of Vietnam’s shipbuilding industry, as it attests to the immense development potential of the country’s maritime sector.

By presenting innovative technologies and professional expertise on marine and shipbuilding technology, the exhibition aims to provide investors and businesses with updated information on the opportunities that could further propel the sector’s development.

Hoang Hung, deputy chairman and general secretary of the Vietnam Shipbuilding Industry Association, noted that the nation’s shipbuilding industry has encountered multiple hardships during its development process.

For instance, the impacts of the global economic recession and specific difficulties in the local economy in the early 2000s slowed down the sector's growth, leading many shipbuilders to transition into other fields of production, with some even going bankrupt.

Currently, the local shipbuilding industry is still facing a host of challenges related to capital access, manpower, and materials.

Kenny Yong, CEO of Fireworks Trade Media, however, believes that Vietnam's shipbuilding industry has emerged as a competitive force that should not be underestimated, demonstrating remarkable growth, resilience, and adaptability.

For more than a year now, local shipbuilders have the hope of thriving again and acquiring large shipbuilding contracts.

With abounding potential for sea-based tourism, plus the growing middle class, Vietnam is deemed as having rosy prospects for the yacht industry’s development.

This is particularly significant given the fact that the global yacht industry is developing strongly, and many order books are saturated until 2026-2027.

Danang, for instance, has great advantages in terms of yacht-related services thanks to its geographical position. This is expected to create new motivation to drive the city’s development.

According to a report by the Transport Development and Strategy Institute, Danang is home to 19 priority investment ventures in the yachting industry and services sector.

The total investment value of the projects approximates $298 million, all coming from non-state sources. The projects involve the yacht building and repair industry, associated supporting sectors, commercial services, as well as port and travel infrastructure.

Revenue from the yacht industry and marina services is divided into two phases. Over the 2022-2025 period, the estimated revenue comes to $17.4 million a year, and for the 2026-2030 period, the figure is expected to reach $43.4 million.

Currently, the world's shipping fleets are expected to feature many ships originating from Vietnam. This attests to the real capacity of the domestic shipbuilding industry.

For more than a year now, local shipbuilders have the hope of thriving again and acquiring large shipbuilding contracts.

For instance, at the end of last year, Pha Rung Shipyard under the Shipbuilding Industry Corporation inked a contract to build a new series of five specialised 13,000-tonne oil and chemical tankers to export to South Korea.

The contract will be implemented over three years, with three ships being built this year. The remaining two will be completed and handed over in 2025.

Vietnam examines hot-rolled coil imports from Malaysia, Thailand, and China

The domestic industry claims that Malaysian, Thai, and Chinese hot-rolled coil (HRC) products have been distributed in the Vietnamese market.

The Ministry of Industry and Trade has issued Decision No.1704/QD-BCT dated July 5 regarding the investigation and application of anti-dumping measures against HRC products from Malaysia, Thailand, and China (Case No.AD17).

The probe began with a dossier for an investigation request to apply anti-dumping measures filed by an industry representative on August 9, 2022.

The Vietnamese industry believes that HRC products from Malaysia, Thailand, and China are being dumped in the domestic market, and that this behaviour is the principal impediment to the development of Vietnam's prestressed steel cable industry.

Hoa Phat Group (HPG) is currently the only Vietnamese company capable of producing HRC and prestressed steel cables, thereby reducing the nation's reliance on imported steel sources. In the first half of 2023, HPG produced 2.9 million tonnes of steel billets and HRC, a decline of 27 per cent from the first half of 2022.

HRCs are steel cables that are braided for use as electrical lines and to bind together concrete blocks for construction projects.

Export pressure on steel groups heightens

When competing with China's massive output to meet the rising demand, Vietnam's steel exports are hampered.
 
Li Peng, purchasing director at the International Corporation of Third Construction Co. Ltd., a subsidiary of the state-owned China State Construction, said in early July that the market for sheet and section steel products in Indonesia has been quite favourable for the past few months due to the construction of factories for projects funded by Chinese companies.

China's exports of steel products rose by 41 per cent on-year during the first half of 2023, according to data from the country's Customs Administration. Local analysts predict that in 2023, the country's steel exports will reach a record 77 million tonnes, the highest seen since 2016.

The high energy costs in several nations leave steel production less competitive when compared to Chinese prices, according to Hao Pei, a senior analyst based in Shanghai. The World Steel Association reports that steel production in Asia and Oceania decreased by 6 per cent in May.

In May, steel prices reached their lowest level in three years as a result of the months-long downturn in China's real estate market.

Nguyen Quoc Hiep, chairman of the Board of Directors of Global Property Investment Corporation, shared with VIR that, "The health of Vietnam's real estate market is deteriorating, resulting in a number of construction sectors, including steel, struggling to survive."

However, unlike China, Vietnam's exports of steel remain minimal. According to the General Statistics Office, exports of steel dipped by 17.2 per cent in the first six months, reaching only $4.13 billion.

Duong Duc Quang, deputy director of the Mercantile Exchange of Vietnam, said that China accounts for about 70 per cent of the world's iron ore imports and generates more than half of the world's steel, which explains why Vietnam's steel export volume is still limited despite the sudden increase in the Chinese market.

In addition, the EU's Carbon Border Adjustment Mechanism will address commodity groupings with a higher risk of carbon leakage, such as steel. According to Dr. Dao Gia Phuc from the Institute of International and Comparative Law at the Vietnam National University in Ho Chi Minh City, this mechanism applies a fee on goods imported from countries with less rigorous emission reduction regulations, which will create obstacles for steel exports to the EU after it goes into effect on October 1.

According to the European Steel Association, the demand for steel in the EU is expected to decrease by 1 per cent in 2023, before rebounding by 5.4 per cent in 2024. This concerns steel exporters, since Vietnam's steel industry has a billion-dollar export market in the EU. In 2021, steel exports to the EU reached $1.8 billion for the first time.

However, according to Quang, Vietnam's steel exports will have advantages in the future. In particular, on June 26, the EU revised its regulations on the application of safeguard measures on certain imported steel products, with the new rules taking effect on July 1.

In addition to the EU, India will be a potential customer for Vietnamese steel exports due to the recovery of its construction industry and its policy to promote public expenditure to support steel demand, according to Vietcombank Securities analyst Vu The Duyet.

Based on to information from the Indian Steel Joint Plant Committee, Vietnam was the fifth largest supplier of steel to the Indian market between April 2021 and March 2023.

HCMC supports small production facilities to relocate to safer places

Aware of the possible dangers pose by small production facilities inside residential areas, the municipal authorities have offered aid in relocation tasks.

For a long time in HCMC, the model of combining accommodation and business or production facilities is extremely popular, especially in the suburb. They can be in different fields of scrap trading, aluminium – stainless steel door welding, fabric dyeing, or wood processing. Since they are rather small and built close to one another without proper fire prevention or environmental protection methods, they pose a high risk of explosion, fire, or pollution.

Therefore, it is advisable to relocate these dangerous companies out of residential areas, lessening that risk and contributing to creating a cleaner environment for dwellers while helping them stabilize their operations for a more sustainable growth.

HCMC has introduced several support policies for small production facilities with a high risk of fire, explosion, and pollution to relocate themselves to more suitable places.

Deputy Head Pham Thanh Truc of the Management Board of HCMC Exporting Processing and Industrial Zones (HEPZA) said that relocated companies to industrial parks can enjoy preferential land rent rates, aids in administrative procedures related to land use, investment registration, construction, and environment protection methods. Moreover, they can use the existing water and common sewage processing systems.

Deputy Director Nguyen Thi Thanh My of the HCMC Department of Natural Resources and Environment stated that her organization has already proposed to HCMC People’s Committee about collaboration between the Planning & Architecture Department and the Industry & Trade Department to develop an investment attraction plan for approved industrial clusters with proper infrastructure so that needy production facilities can move there for long-term stability and pollution addressing.

Deputy Director My added that HCMC People’s Committee has been suggested to tighten its monitoring and inspection over the environment protection task of all production facilities in the city, particularly those having received many reports from local residents. Meanwhile, the HCMC Department of Natural Resources and Environment is going to cooperate with related state agencies to help those companies to upgrade their production technologies and machines for less pollution.

Dr. Dinh Thi Thanh Nga from the Law Faculty of Sai Gon University shared that HCMC should consider the task of relocating polluted production facilities out of residential areas an urgent one regardless of many challenges (mostly financial issues) on the way. The city needs master planning for its industrial clusters, cottage industrial zones, along with appropriate support policies on land rent rates, loan packages so as to encourage small production facilities to move there. However, it is not wise to force the relocation when new places are not ready for them.

Assoc. Prof. Dr. Phung Chi Sy from the Vietnam Association for Conservation of Nature and Environment (VACNE) stressed that HCMC must first update the list of current production facilities sited inside residential areas, especially polluted ones in the fields of fabric weaving and dyeing, cattle raising and slaughtering. Following that is the classification step. Concerned companies can either relocate themselves, or change to other work, or upgrade production technologies. Meanwhile, industrial clusters must complete their infrastructure preparation (proper surface area, full utilities) to welcome these facilities. This can stop the situation of moving a polluted company from this to another temporary place, which is a waste of time and finance.

Assoc Prof. Dr. Nguyen Hong Quan – Head of the Institute for Circular Economy Development (ICED) in Vietnam National University-HCM said that the case of a relocated production facility being surrounded by new residential areas now shows either improper planning of HCMC or wrong implementation of that planning due to a lack of resources, supervision. Therefore, the city needs a comprehensive report on which fields should be relocated, along with corresponding new places.

In addition, it is necessary to discuss with concerned production facilities about their choices for these new places. Like it or not, these polluted companies have also contributed to the economic growth of HCMC so far, which should be appreciated. The city must have suitable locations to welcome each type of industry instead of gathering them all into one place. Those facilities that do not want to move can be helped to upgrade their production technologies and machines as well as better observance of applicable laws. Synchronous implementation of these measures will provide long-term benefits for both the city and the companies themselves.

Hanoi's real estate market sees breath of air on the horizon

Hanoi's real estate market is expected to get a boost from the transformation of the rural Dong Anh district into an urban area.

Dong Anh District, which has emerged as one of Hanoi's major real estate development hubs in recent years, has seen a surge in property prices driven by urban planning and infrastructure development.

However, in 2023, the district's real estate market experienced a downturn due to economic challenges, resulting in a decline in transactions, especially in the lucrative land segment.

Nevertheless, Dong Anh has strong potential to transform into a modern urban area, given its position as the northern gateway to Hanoi and the significant investment in infrastructure development.

Plans for the upgrading of the district, the expansion of the central urban area along the north bank of the Red River, and the attraction of major domestic and international real estate players such as Sun Group, Vingroup, BRG, and Becamex ITC have boosted confidence in the market.

Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, noted that the local real estate market has flourished since the announcement of Dong Anh's planned transition to urban areas.

Notable projects include Vingroup's ambitious national exhibition center in Dong Hoi commune, Sungroup's Disneyland Park, Kim Quy cultural tourism project in Vinh Ngoc and Tien Duong communes, Becamex ITC's software technology park in Tien Duong and Nguyen Khe communes, and the BRG Smart City project jointly implemented by Sumitomo Group and BRG Group in Vinh Ngoc and Hai Boi communes.

Previously, Vinh Ngoc, Hai Boi, Tien Duong and Nguyen Khe communes were predominantly rural, with people mainly engaged in agricultural activities. However, significant investments in infrastructure and transportation have transformed these areas.

New services have emerged, seeping into every alley and leading to a significant increase in land prices. What was once valued at VND5-10 million (US$211-422)/m2 around 2010 has now escalated to VND50-60 million (US$2,110-2,500)/m2.

Similarly, in Dong Anh Town and Uy No Commune, land prices have reached an astounding VND300 million ($12,674) per square meter on certain major streets, signifying a remarkable transformation in this rural region.

Dinh said as Hanoi focuses on building new urban areas to accommodate a growing population, Dong Anh has become a target for substantial investment in infrastructure and services. As a result, there has been a strong shift in real estate investment towards this area, he continued.

Dong Anh has now met the criteria to become an urban district, and all necessary processes and procedures are expected to be submitted for approval by the government and the National Assembly Standing Committee by the end of 2023.

However, it is unlikely that the real estate market in Dong Anh will experience a boom similar to previous periods. Housing prices in the area have already exceeded the market average, coupled with increased government regulation and control.

However, this will not hinder the market's development in the short term, as Dong Anh has become a prime investment attraction.

Anh added that the real estate market in Dong Anh is expected to continue its growth trajectory, solidifying its status as a promising investment hotspot for developers.

The appeal of Dong Anh goes beyond the current and planned super projects. The area serves as a focal point for numerous urban and residential developments and future resettlement plans. In addition, forthcoming investments in bridge and road infrastructure are adding further momentum to the real estate market. Dong Anh has the potential to achieve impressive growth figures as it positions itself as a city along the Red River.

However, experts caution that the current Dong Anh real estate market may not be suitable for speculative investors, as prices are high and the area is entering a period of stability and sustainability.

To minimize risks, investors are advised to consider key factors such as planning information, the potential for price appreciation in the area, the presence of reputable developers, and historical market movements. It is crucial to avoid falling into the trap of unscrupulous brokers looking for quick profits, Hang said.

Pig-breeding restructuring underway in Vietnam

Swine breeding businesses are glad of the rise in pig selling prices, after a 2023 so far with financial results in the doldrums.

A fortnight ago, the price of live hogs saw a rise to about $2.75 per kilogramme, an increase of over 20 per cent compared to two months ago, according to the Mercantile Exchange of Vietnam. A price higher than $2.70 is said to be the level at which livestock businesses and farmers start to make profits.

Larger enterprises that can breed at lower costs are projected to recover more quickly. However, for the past year or so, most local husbandry companies have reported negative business results, and major players like Dabaco have struggled with big losses.

According to its financial statement for the first quarter in 2023, Dabaco Group reported $96.4 million in revenues, down 17.5 per cent on-year, and lost $13.4 million in after-tax profit. Selling prices of the company’s pigs were lower than the cost, so gross profit was reported at -$3 million.

Meanwhile, BAF Vietnam Agriculture reported $34 million in revenue, down 46.9 per cent on-year, and $163,000 in after-tax profit, down 95.5 per cent on-year. Of this, the gross profit margin decreased from 9.2 to 7.8 per cent.

Economic recovery along with lower input prices may support the market in the long term. The Organisation for Economic Co-operation and Development forecast that pork consumption in Vietnam will record an annual growth of about 3.1 per cent in by the end of 2023, while consulting firm Fitch Solutions also said Vietnam’s pork consumption is increasing by 25 per cent between 2018 and 2026.

Based on inflation dipping since March, the domestic demand is likely to have markedly improved, which is expected to help hog prices continue rising in the second half of this year. Besides that, the cooling of agricultural product prices since the beginning of the year will also support the industry, especially when about three-quarters of the country’s feed material supply depends on import resources.

According to preliminary data from the General Department of Vietnam Customs, the country imported over 398,600 tonnes of corn in May, down 36 per cent on-month. The cumulative import of corn in the first five months of this year was also 9.6 per cent lower than the same period last year, and major markets were from Brazil (accounting for 43 per cent of the total corn import of the country), and Argentina (making up 28.3 per cent).

BAF chairman Truong Sy Ba said that the pig breeding sector is in a period of restructuring.

At present, the total herd of BAF is about 230,000 pigs. It is continuing to add to its modern farms, and expects to put into operation nine more by the end of 2024. The company self-produces animal feed and utilises waste bananas, and so production costs are cheaper than other firms.

Enterprises wary over “rushed” tax on sugary drinks

Vietnam is considering a special consumption tax in its battle against the escalating obesity crisis, but industry insiders urge prudence due to the possible detrimental consequences for the beverage sector and wider economy.

The Vietnam Chamber of Commerce and Industry convened a seminar last week to discuss the potential creation of the special consumption tax (SCT), marking the latest in a series of actions aimed at implementing fiscal tools to improve public health.

At the heart of the proposal, spearheaded by the Ministry of Finance (MoF), is the introduction of the SCT on sugary beverages to mitigate the prevalence of non-communicable diseases, most notably obesity.

Delegates at the seminar, however, expressed apprehension over the efficacy of such measures, questioning their potential to successfully curb obesity rates and enhance public health. There were also fears about possible adverse effects on the beverage industry and macroeconomic stability.

They noted that the SCT law from 2008 has already been amended several times, and as recently as last year, to align with practical realities and evolving tax management requirements.

However, as the application of the SCT has unfolded, several aspects have become outdated, particularly those encouraging the shift towards importing, producing, and using environmentally friendly products that safeguard consumer health.

In light of these practical necessities, many representatives recommended revising the current law, focusing on elements with significant impact on businesses within the production and commerce chains.

Nguyen Minh Thao, director of Business Environment and Competitiveness at the Central Institute for Economic Management (CIEM), said that any expansion of the tax required careful thinking. She criticised the MoF for the vagueness of their outlined objectives and the lack of clarity regarding the policy’s ramifications for individuals, businesses, and the national economy.

A similar proposal to implement an SCT on sugary drinks was put forth by the MoF in 2017, but never came to fruition.

“A CIEM survey conducted between 2018 and 2021 revealed that should such a tax be introduced at 10 per cent, coupled with a 2 per cent increase in VAT, the beverage industry could potentially incur losses of around $158 million,” Thao said. “In contrast, the rise in state budget tax revenue would only be roughly $113.45 million.”

In addition to the direct implications for the beverage industry, there is a potential domino effect on the wider value chain, affecting packaging companies, transportation, retail, and even the sugar industry, with consequences for the broader Vietnamese economy, Thao added.

Nguyen Van Viet, chairman of the Vietnam Alcohol-Beverage-Soft Drink Association, pointed to figures from the General Statistics Office highlighting the first half-year economic scenario.

As per these figures, Vietnam’s GDP in the second quarter of 2023 saw a moderate uplift of 4.14 per cent on-year, barely outpacing the meagre growth observed during the same period in 2020. Meanwhile, the consumer price index for the first half of 2023 rose by 3.29 per cent on-year, while core inflation soared to 4.74 per cent on-year.

Vu Tu Thanh, deputy regional managing director of the US-ASEAN Business Council, offered insights into the global application of the SCT. He highlighted instances where obesity rates rose rather than decreased in the years following the SCT’s implementation of sugar-sweetened beverages.

Emphasising the significance of the SCT law, Thai Quynh Mai Dung, standing member of the National Assembly’s Committee for External Relations, proposed a measured approach to amendments to reflect the country’s growth and current context.

More clarity requested for Vietravel plans

The Ministry of Planning and Investment last week sent a dispatch to Vietravel Airlines pertaining to policy revisions of its intention to expand its fleet.

In the dispatch, the ministry (MPI), who oversees Vietravel's appraisal activities, asked the firm to clarify certain aspects of its investment dossier, including feedback from relevant state management agencies, before submitting to the prime minister for a final decision.

Vietravel delivered a proposal to the MPI to expand its airline business in April 2022. The following October, the newcomer to the aviation sector sent its proposals to relevant state management agencies.

Vietravel was originally approved in April 2020. At the time, the number of aircraft requested for the first year of operation was three units, gradually rising to eight in the fifth year of operation, using Airbus/Boeing or equivalents. The project’s investment value was also set at $30.4 million, all as investor equity.

In the revised dossiers, Vietravel asked to change its name from Vietnam Travel Aviation Co., Ltd. to Vietnam Travel Aviation JSC, and expand the scale of the aircraft fleet.

In the period after 2030, the company wants to be able to develop a fleet suitable to market demands, using Airbus/Boeing or equivalents.

Thus, the number of aircraft has now surged to 25 by 2025, and 50 by 2030. After 2030, the company intends to develop a fleet suitable to market demands, using Airbus/Boeing or equivalents.

In the project’s revised dossier, Vietravel asked to raise the investment value by more than 10-fold of the approved value to $358.6 million, of which investor’s equity amounted $86.9 million, the remainder to be offset by commercial loans and investor’s returned earnings for reinvestment.

In the MPI’s dispatch, the ministry requested Vietravel to explain the difference in the project’s investment value between the document asking for revision of the project’s investment policy and the official proposal asking for investment policy revision, which differs by around $20 million.

Vietravel Airlines is run by Vietravel Corporation (ticker: VTR). Its first commercial fight connecting Ho Chi Minh City and Hanoi took off in January 2021.

This air carrier currently operates four aircraft and is expected to add two more to its fleet this year.

Discussing the sharp hike in capital scope, Vietravel Airlines chairman Nguyen Quoc Ky said the proposal is to meet the company’s investment development requirements, particularly the demand to upscale the aircraft fleet.

Over 82% of soft loans for businesses in HCMC disbursed

A credit package worth VND453 trillion under HCMC’s bank-company matching program has been disbursed at a rate of 82.8%.

As of the end of June, over VND375 trillion had been disbursed, primarily benefiting exporters, agricultural firms, rural area development projects, supporting industries, and technology-driven enterprises.

The State Bank of Vietnam’s HCMC branch reported that 20 lenders have registered to participate in this preferential credit program, which offers a two-percentage-point interest rate subsidy. This program aims to provide businesses with enhanced financial access and support.

To ensure the program’s success, the participating banks are implementing strategic measures. They plan to expand the program’s reach in different districts and rural areas, focusing on disbursing preferential credit  and offering loans and support in accordance with government credit programs.

Binh Duong to build river port to transship containers to deep-water ports

The southern province of Binh Duong has announced plans to construct a river port as a transshipment hub for containers destined for HCMC and Ba Ria-Vung Tau.

The An Tay river port project, which has received approval from the Binh Duong authorities, will help improve the waterway logistics system, connecting the inland province of Binh Duong with deep-water ports like Cai Mep port in Ba Ria-Vung Tau Province and Cat Lai port in HCMC.

The 100-hectare project will be located near the Saigon River in the southern An Tay Commune, Ben Cat Town, Binh Duong Province. It is expected to contribute to the development of a comprehensive service network with multimodal transport capabilities within the province.

The estimated cost of the project is around VND2,279 billion, including for compensation, site clearance, and resettlement amounting to VND453 billion. The construction of the port is scheduled to be completed within four years.

It would be able to handle container vessels of 3,000 DWT for inland waterway transportation along the Saigon River.

The An Tay river port will play a vital role in transporting cargo from Tay Ninh, Binh Phuoc, and Tay Nguyen provinces, connecting various industrial parks and alleviating road traffic congestion in HCMC.

HCMC-Moc Bai Expressway cost revised up

The HCMC People’s Council has approved a resolution revising up the investment cost of the HCMC-Moc Bai Expressway to VND21.5 trillion.

The project will be implemented through a build-operate-transfer (BOT) or public-private partnership (PPP) contract.

Under the resolution, the total capital for the project will increase by VND5.5 trillion to VND21.52 trillion, with VND9.82 trillion coming from the State budget and VND11.7 trillion from investors.

The construction cost was initially estimated at VND9.8 trillion, while the expenses for site clearance, resettlement, and compensation would be VND6.9 trillion.

The HCMC-Moc Bai Expressway will initially have four lanes. It will be over 51 kilometers long, an increase of more than one kilometer compared to the previous plan.

The project is expected to commence construction before April 30, 2025, and be completed before December 31, 2027.

Once completed, the HCMC-Moc Bai Expressway would ease traffic on National Highway 22, establish a better transportation system in the southern key economic zone, and enhance the capacity of an international trade route connecting HCMC and Cambodia.

Securities firms speed up the digital race

Competition on digitisation in securities trading is creating a driving force for the development of financial firms, and at the same time bringing many benefits for investors.

A series of new features integrated with advanced technology have been launched, making stock trading easier and more convenient.

Securities trading in Vietnam is changing drastically thanks to the application of technology, especially following the COVID pandemic.

In 2020, DNSE securities pioneered by opening a fully digitised e-KYC identity account, with most other securities companies implementing this feature later on as well. This helps investors when opening an account without having to go directly to the counter, saving time and costs.

The mobile app development trend has also created a push in the digital race of securities companies. Investors can trade on the go from anywhere.

Trading apps are integrated with smart and necessary features including real-time information updates, technical analysis, and quick order placement, helping to optimise the experience of customers. Customers no longer have to go directly to exchanges or securities companies and do not have to place orders through brokers by phone as before.

DNSE Securities offers an AI Broker feature that uses machine learning and AI technology to filter and aggregate information about stocks and businesses, and send personalised notifications according to the needs of investors.

The Margin Deal feature allows users to see profit and loss on each transaction instead of compounding into the average price - this is also a pioneering feature of DNSE securities to support risk management.

A number of other securities companies are providing i-Invest products, based on transaction data, financial indicators, and valuation to offer services at the request of investors. They also introduced a copy trading service, allowing investors to follow other investors' trades.

Most securities management systems of large domestic are old systems that are outdated and take a long time to update. This is an opportunity for securities companies to actively grasp technology, create products different from the traditional ones, optimise benefits of investors and create a new face for the Vietnamese stock market.

Personalisation of experience and diversification of investment products continue to be strong moves in the digital securities race.

Many digital technology-based transaction management products such as Copytrade, OneID, and Wealth Management have been introduced to the market. One securities company even integrates iBroker – a digital 24/7 investment advisor assistant.

DNSE continuously offers cutting-edge digital experiences on the Entrade X platform. The Margin Deal risk management system completely changes the traditional management of the Vietnamese stock market, helping users manage risks transparently and have many flexible loan package options.

DNSE Securities is also promoting product personalisation for users with its AI Broker, as well as cross-platform “one-touch trading”, and direct investment with an Entrade X account on such platforms as FiinTrade and ZaloPay.

Recently, this unit also launched a derivative product that applies a transaction-by-transaction management system, in which profit and loss and deposit ratio are continuously alerted, ensuring speed and ease for traders when participating in the derivatives market.

Ministry of Finance hits targets in first half of 2023

The Ministry of Finance (MoF) hit its target in the first six months of 2023 with fiscal revenue of VNĐ876 trillion (US$37 billion) and expenditure of VNĐ805 trillion ($34 billion).

This was the remark made by a MoF representative in a virtual conference yesterday, which was attended by Deputy Prime Minister Lê Minh Khái.

The representative said MoF's proactive approach to fiscal policy had helped Việt Nam sustain its economic growth and produced favourable effects on the business sector. Fiscal revenue in the first half of the year reached 54 per cent of the annual target, whereas fiscal expenditure was 38.8 per cent.

The Ministry's efforts in improving the legal framework were another praiseworthy contribution to the financial sector. The MoF pushed the draft Law on Price through the National Assembly in June and accomplished 16 out of 26 legal projects assigned to it in six months.

Bond-issuance was the next task that the Ministry performed well. By late June, nearly VNĐ180 trillion ($7.6 billion) of government bonds had been issued, with an average term of 12.23 years and an average annual coupon of 3.7 per cent.

The Ministry also did a great job in promoting domestic consumption through its proposal of Resolution No.101. The Resolution, approved by the National Assembly in June, will trigger VAT cuts of 2 per cent on certain categories of goods and services between July 1 and December 31.

The Ministry has doubled its tax-based efforts by proceeding with three more resolutions during the period, namely Resolution No.12, Resolution No.36, and Resolution No.41. Resolution No.12 grants tax extensions to businesses in 2023 in regard to income and value-added taxes.

The combined effect of the three resolutions was expected to amount to around VNĐ200 trillion ($8.5 billion) for the whole year. In the first six months of the year, approximately VNĐ70 trillion ($3 billion) of tax was extended in favor of the business sector.

It was also worth noting that the Ministry's price management was on the right track, with six-month CPI growth kept at 3.29 per cent and core inflation at 4.74 per cent.

The representative forecast that the second half of 2023 would remain tough for the MoF because more challenges were emerging. To overcome the challenges, MoF's to-do list must involve measures to keep public debt in check and improve the efficiency of loan usage.

Additionally, the Ministry must accelerate the delivery of public money to reach the disbursement target set by the Prime Minister for 2023. Surveillance must be strengthened to ensure a sound and healthy financial system.

The securitisation and divestment of State capital in State-owned enterprises must be expedited to supplement the fiscal revenue and improve the efficiency of public finance.

Vinacomin's coal supply for power generation up 16% in H1

Vietnam National Coal and Mineral Industries Group (Vinacomin) manufactured approximately 21.2 million tonnes of coal for power generation in the first half of this year, up 16 per cent year-on-year and fulfilling 55 per cent of the annual target.

Despite the limited mining licences and capacity, the state-owned mining company produced 20 million tonnes of raw coal, reaching 51 percent of the annual plan, which equates to 91 per cent growth compared to last year's same period and generated 25 million tonnes of commercial clean coal.

The group has been highly appreciated by the Prime Minister for its effective production management and increased coal output to meet the needs of thermal power plants, contributing to ensuring electricity supply during the peak period of hot weather.

The group's revenue was expected to surpass VNĐ87 trillion (US$3.7 billion), up 7 per cent year-on-year and representing 51.6 per cent of the annual target. The profit was projected to exceed VNĐ3 trillion, which is about 60 per cent of the annual plan and 50 per cent higher than the corresponding period's target.

Vinacomin contributed VNĐ17.6 trillion to the State budget, an 8 per cent increase compared to the same period in 2022.

Given the persistently high coal demand across various economic sectors during the remaining months of 2023, Vinacomin has outlined a strategic focus on further increasing production and exploiting approximately 10 million tonnes of coal in the third quarter. 

Vietnam International Sourcing 2023 slated for mid-September

Vietnam International Sourcing 2023 will take place in Ho Chi Minh City from September 13-15, aiming to support domestic firms to engage more deeply into the global production and supply chains.

According to the Ministry of Industry and Trade (MoIT), the organiser of the event, many foreign supermarkets, distributors and retailers are making their shopping list for products from Vietnamese suppliers at the event, which is expected to connect foreign importers and domestic manufacturers and exporters.

Vietnam International Sourcing 2023 will include a series of activities, including conference, trade exchange programmes and the Vietnam International Sourcing Expo 2023, which expects the participation of 300 businesses from different areas in the international supply chain.

Vietnam International Sourcing 2023 is a reputable event that draws leading firms in various fields, including food, garment and textile, footwear, handbag, sportswerar, home appliances, furniture, and supporting industries.

This year, the event expects to welcome 8,000 visitors and 150 delegations from 30 countries and territories. It has received greatest-ever interest from world leading companies.

Leading experts from Europe will give an online training to participants at the event on August 15 and an in-person training on August 12 to ensure that they are well prepared and make full use of opportunities from the event.

Particularly, Walmart Inc, which operates approximately 10,500 stores and clubs in 20 countries and eCommerce websites, will send a team lead by one of its senior official to the Vietnam International Sourcing 2023 to seek partnership with Vietnamese firms.

Imports of automobiles rise in June

The import of completely-built automobiles (CBUs) saw an upward trend in June, after dropping up to 40% in the previous month, according to the latest preliminary statistics of the General Department of Customs.      

In June, Vietnam imported 9,006 cars worth US$250 million, up 18.4% in quantity and up 30.7 in value from the previous month.

Indonesia and Thailand were Vietnam’s two leading vehicle suppliers. Indonesia retained its top position, shipping 3,965 units worth US$55.4 million to Vietnam. It was followed by Thailand with 2,351 units valued at US$63.75 million, and China with 1,340 units worth US$53,25 million.

Between January and June 2023, Vietnam spent US$1.65 billion on importing 70,915 CBUs, up 11.4% in quantity and up 5.2% in value compared to the same period last year.

From June 1 to 15 alone, local businesses purchased 4,838 cars worth US136.4 million from Thailand, Indonesia, and China. Among them were 3,576 cars with fewer than nine seats, valued at nearly US$82 million.

Earlier, Vietnam imported 7,608 CBUs worth US$191.2 million in May, down 38.3 % in quantity and down 33.6% in value compared to the previous month.

Elsewhere, the Vietnam Automobile Manufacturers’ Association (VAMA) reported that a total of 23,800 cars of different kinds were sold in June, up 15% compared to the previous month.

By the end of June 2023, the sales of domestically assembled cars decreased by 37%, while the number of imported ones sold dropped by 25% compared to the same period last year.

Experts attributed the increase in automobile sales in June to growing consumer demand as well as car manufacturers’ stimulus packages and promotion programmes.

Bình Định looking for investors for high-tech agricultural zone on shrimp

The Bình Định Department of Planning and Investment has called for private investments into a project of hi-tech agricultural park for shrimp development in Mỹ Thành Commune, Phù Mỹ District.

The deadline for interested investors to submit project registration documents is 7:30am on August 28.

The project has a total preliminary cost of VNĐ1.17 trillion (US$79.4 million), plus compensation and resettlement support costs of VNĐ277.3 billion, and a total land area of about 218.96ha.

The project aims to be in operation by the third quarter of 2026 and will include a shrimp processing factory with a capacity of 20,000 tonnes of shrimp per year, with an export value of $256 million, as well as an aqua feed factory with a capacity of 100,000 tonnes per year.

It also includes a high-tech commercial shrimp farming zone with a total output of 14,500 tonnes per year and will also feature a white-leg shrimp seed production area with a capacity of two billion seeds per year, creating 4,000 to 5,000 jobs. 

Cashew export target cut

With exports expected to remain mired in difficulties for the rest of the year, the cashew industry has lowered its export target for this year to US$3.05 billion, $50 million and $750 million below its own previous target and the Ministry of Agriculture and Rural Development’s.

Speaking at a conference held by the Vietnam Cashew Association (VINACAS) in HCM City to review the industry’s performance this year on Wednesday, Bạch Khánh Nhật, VINACAS’s deputy chairman, said cashew exports grew in the first half despite all the difficulties.

Over 279,000 tonnes were exported for US$1.6 billion, a year-on-year increase of 7.65 per cent, he said.

The average export price was down by 1.73 per cent to $5,717 per tonne.

Nhật said the industry has been experiencing difficulties posed by geopolitical crises, monetary tightening by central banks globally, inflation, lower demand in key markets, and consumers tightening their purse strings.

Buyers mainly placed spot contracts for small volumes in the first half, he said.

The positive factor is that cashew prices are competitive with those of other nuts, and globally retailers are carrying out promotions to stimulate demand, he said.

In the worst case, VINACAS assumes the global economy will continue to slow further, and cashew demand among end consumers will continue to decrease, and importers in many markets will not be in a hurry to buy cashew again until they see an increase in demand.

So its executive board has lowered the export target to $3.05 billion.

Phạm Văn Công, its chairman, said to boost exports to key markets including those that have free trade agreements with Việt Nam, it is important to strengthen promotions so that consumers know about Vietnamese cashew.

The association said the Ministry of Industry and Trade should help the industry promote its products at international fairs.

The association will organise a trade promotion programme in Japan at the end of this year, the International Cashew Conference in Quảng Bình in the first quarter next year and a trade promotion programme in China next year, and it wants the ministry’s support for them under a national promotion programme.

It also called for policies to help enterprises improve technologies and equipment, speed up digital transformation, invest in intensive processing, grow organic cashew, make cashew shell oil, and diversify exports.

Since Việt Nam still imports large volumes of raw cashew for processing, the association called for conducive mechanisms and policies, especially in terms of bank credit, tax and customs.

Nguyễn Minh Họa, the association’s deputy chairman, said processing firms should no longer stockpile raw cashew like before because availability is now abundant.

So they need to carefully study the market and make appropriate plans for imports, he added. 

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