return icon Vietnamnet.vn

VIETNAM BUSINESS NEWS AUGUST 9

Extra efforts needed to achieve target of 5 million foreign tourists: insiders
Extra efforts needed to achieve target of 5 million foreign tourists: insiders hinh anh 1
Tourists to Hoi An ancient city in Quang Nam province (Photo: VNA)
To achieve the goal of welcoming 5 million foreign tourists this year as set out earlier, Vietnam's tourism industry needs to make greater efforts in promoting its image and building more tourism products, according to insiders.

Statistics from the Vietnam National Administration of Tourism (VNAT) show that in the first seven months of 2022, Vietnam served 954,600 foreign tourists, up nine folds compared to the same period last year. In July alone, the nation welcomed 352,600 foreign visitors, up 49% month-on-month.

Foreign tourists to Vietnam over the recent past mainly came from the Asia-Pacific region, prominently in the top 10 markets being the Republic of Korea with 196,200 arrivals, up 903.7% year-on-year; the US 102,900, up 5,382%; and Japan 46,000, up 794.6%.

The VNAT also pointed out that European markets show impressive increases in the number of visitors to Vietnam and will gradually increase in the near future such as the UK (26,400 arrivals, up 2,958.6%), France (23,400, up 2,963.7%), and Germany (23,600, up 3,897.1%).

The sector expects that the number of foreign visitors will surge when the peak inbound tourism season starts from September.

Dak Lak prepares for export of passion fruit to China

The Dak Lak province Department of Agriculture and Rural Development is preparing necessary conditions for the shipping of local passion fruit to China, as the fruit has been officially allowed to enter the market.

The preparation includes supporting businesses and farmers in making the fruit meet related requirements. The Central Highlands province is home to 1,055ha of passion fruit, of which 884ha are yielding 14,703 tonnes annually.

The planting area and production of passion fruit nationwide are continuously increasing, especially in Central Highlands localities. Currently, Vietnam grows the fruit on about 6,000ha across 46 cities and provinces with an annual output of 300,000-400,000 tonnes.

With relevant negotiations beginning in 2006, the General Administration of Customs of China (GACC) agreed this year to pilot the import of Vietnamese passion fruit starting in July, making it the 10th Vietnamese fruit permitted to enter the market.

According to the two sides’ agreement on phytosanitary requirements, in the immediate future, GACC permits the import of fresh passion fruit from Vietnam through seven border gates in China's Guangxi province.

Thanh Hoa proposes building new terminal at Tho Xuan airport

The People’s Committee of the north central province of Thanh Hoa has submitted an official dispatch to the Ministry of Transport regarding the investment of the T2 passenger terminal and other infrastructure at the local Tho Xuan airport.

Per the official document, the province asked the Ministry of Transport to consider attracting capable businesses and investors or arrange other lawful capital sources from the state budget for the construction of the terminal and infrastructure in the 2022-2025 period.

Earlier, the locality received a notice from the Airports Corporation of Vietnam (ACV), which is managing and operating the Tho Xuan airport. The report said the investment project worth some 2.12 trillion VND (90.83 million USD) is not included in its medium-term public investment plan for the 2021-2025 period, but has been earmarked for investment after 2025. According to the project, the T2 terminal is designed to be capable of serving 5 million passengers a year.

The Ministry of Transport’s Decision No. 1136/QĐ-BGTVT dated June 12, 2020, approved a plan for the airport for the 2021 – 2030 period with a vision to 2050. The plan stipulated that the 10-year period will see the expansion and upgrade of the existing passenger terminal T1, and the construction of the T2 and a cargo terminal, with a handling capacity of 27,000 tonnes per year.  

Retailers, industrial real estate to boost hiring in Q3

Recruiting demand from retailers is on the rise in the third quarter of this year as employers are accelerating the operations of new stores to compensate for ones closed last year, according to a report released by recruitment service provider Navigos Group.

Businesses in the retail industry are enhancing the number of personnel, focusing on finance/accounting, sales, marketing, and merchandising, according to the report that was based on recruitment demands of Navigos Search’s clients in the second quarter of this year.

The demand for recruiting personnel in this segment is forecasted to grow sharply in the next three to six months.

After Covid-19, candidates in the retail industry are often seeking a salary 30 per cent to 50 per cent higher than their previous pay level.

The reason given is that due to two years of COVID-19 pandemic, their salaries were not increased or were even reduced. This has led to demanding a higher salary than before 2019.

In addition, candidates in this industry are interested in a hybrid working model or working remotely full-time.

The industrial real estate sector also expects an increase in recruitment demand in the third quarter of the year.

Sub-project approved for upgrading Nha Trang – Sai Gon railway section

The Ministry of Transport (MoT) has approved an investment worth nearly 1.1 trillion VND (over 47 million USD) for a sub-project to upgrade the Nha Trang – Sai Gon railway section, which is part of the project to renovate and upgrade the Hanoi-Ho Chi Minh City railway route in the 2021-2025 period.

The 411-km route will be implemented from 2022 – 2025, running through the provinces of Khanh Hoa, Ninh Thuan, Binh Thuan, Dong Nai, and Binh Duong, and Ho Chi Minh City.

The sub-project aims to ensure traffic safety, improve the quality of railway infrastructure and transport capacity of both passengers and goods, thus effectively exploiting the existing infrastructure along the Nha Trang – Sai Gon route.

The budget for this will be sourced from the State budget under the medium-term public investment plan for the 2021-2025 period.

About 80 billion VND will be allocated in 2022; and 350 billion VND, 400 billion VND and 269 billion in 2023, 2024 and 2025, respectively.

Vietnam needs skilled workforce to become upper-middle-income economy by 2035: WB

Vietnam will need a skilled workforce to transform itself into an upper-middle-income economy by 2035, the World Bank has suggested in its recently-released report named “Taking Stock: Educate to Grow”.

In its bi-annual report, the lender said: “Vietnam needs a workforce with 21st century skills to grow. As the economy moves from being driven by low skill and low wage jobs in manufacturing and services towards a more innovation driven growth model built on higher value-added industries and services, Vietnam’s workforce will need to attain higher level and more relevant skills.”

The Vietnamese Government’s Socio-economic Development Strategy for 2021-2030 says as much, aiming to use scientific, technological, innovative, and digitally transformative knowledge and build quality human resources as key drivers of higher productivity and future economic growth. To achieve these goals, Vietnam needs to reform its education system to improve quality and access, and thus provide the necessary skills to the population, it affirmed.

This edition also underlines transforming the higher education system as the key to boosting the country’s productivity and achieving its development goals, in the context where the country re-emerges from the pandemic and into a challenging global environment.

The report’s co-author Dorsati Madani said that while Vietnam’s economic recovery had been relatively stable, not all sectors witnessed the same situation.

The impact on workers and households during the crisis was serious and lasting, with about 45% claiming lower incomes in December 2021 than the previous year.

The impact of the pandemic is still present with businesses reporting broad-based labour shortages as of March 2022, which were felt more acutely in services and manufacturing, and in the Ho Chi Minh City area.

This, in addition to growth slowdown or stagflation in main export markets, further commodity price shocks, continued disruption of global supply chains, or the emergence of new COVID-19 variants, are hindering Vietnam’s full recovery.

Tech to transform e-logistics landscape

Tech is rapidly changing the e-logistics landscape, raising the need for Vietnam to increase the application of advanced technologies to develop an efficient logistics industry to grab opportunities arising from e-commerce.

According to Tran Thanh Hai, deputy director of the Import-Export Department, Vietnam has a young population with fast access to technology together with a digital economy market forecast at more than 50 billion USD, providing great potential for e-commerce and e-commerce logistics.

While logistics costs in Vietnam remain high, Hai said it was necessary to use technology to improve efficiency.

A report by global supply chain service provider Aligity last year showed the logistics cost in Vietnam was more than 20% of GDP, compared to the world average of 11%.

Hai pointed out several problems in the logistics industry, including weak linkage of the transport infrastructure system and heavy dependence on roads.

He said technology had been applied in logistics activities such as apps or platforms to share transport vehicles and optimise warehouse usage. AI was also used to automate warehouse management processes.

Applying technology in logistics would help lower costs and increase efficiency, he said.

Especially in e-commerce with many delivery orders but in different locations, automation would help increase efficiency, reduce time and increase accuracy, Hai stressed.

In e-commerce, the difference between urban and rural areas created a cost problem for many logistics service providers.

Rural areas in Vietnam were characterised by a wide geographical range and low population density. Shopping rates were also not as high as in the city, so deliveries covered a long distance.

The cost factor might not lie in the success rate of the first delivery, but in the distance travelled, Hai said, adding that enterprises could cooperate to build warehouses in nearby districts.

Automated delivery solutions such as drones should also be considered to help shorten travel distance. Such technologies could operate regardless of terrain.

Phan Xuan Dung from logistics provider Ninja Van Vietnam said the number of e-commerce delivery orders tripled in the past five years. When orders increased rapidly, if enterprises did not have solutions, the system would overload and costs increase.

Dung said technology would be the decisive factor in reducing logistics costs and improving efficiency.

More than 300 businesses attend ASEAN Online Sale Day 2022

ASEAN Online Sale Day 2022, part of activities marking the 55th founding anniversary of the Association of Southeast Asian Nations (ASEAN), kicked off on August 8, drawing more than 300 businesses from the region.

The three-day event is intended to promote cross-border e-commerce and open up cooperation opportunities for regional firms.

Co-hosted by Cambodia – ASEAN Chair 2022, Singapore and Vietnam, the programme has two tiers for domestic and cross-border transactions. There are currently 185 enterprises out of the 300 firms that have registered to conduct business in Vietnam.

Information about the event as well as the participating businesses is available on its official website at www.onlineasean.com, which has been integrated into ASEAN’s website asean.org.

Notably, the Online Dispute Resolution (ODR) will be applied during this year’s programme to ensure rights and interests of consumers.

Mexico initiates anti-dumping investigation into Vietnamese cold-rolled steel

The Mexican Secretariat of Economy has announced an anti-dumping investigation into cold-rolled steel imported from Vietnam, according to the Ministry of Industry and Trade (MoIT).

The investigated products are classified under HS codes 7209.16.01, 7209.17.01, 7209.18.01, 7209.26.01, 7209.27.01, 7209.28.01, 7209.90.99, 7211.23.03, 7211.29.99, 7211.90.99, 7225.50.07, and 7226.92.06.

Statistics from the International Trade Centre (ITC) showed that Vietnam earned 220 million USD from exporting iron and steel, mostly those coded HS 7209 and 7210, to Mexico in 2020, an increase of 70% compared to 2019. The export earnings of cold rolled steel which are under investigation reached 50 million USD.

After officially initiating the case, the Mexican investigation agency sent questionnaires to relevant businesses for responses before September 6, but the deadline may be extended. The agency is expected to issue a preliminary decision within 130 days after the initiation of the investigation.

Vietnamese firms tap into giant trade deal: official

Vietnamese enterprises have been diversely capitalising on the EU - Vietnam Free Trade Agreement (EVFTA) to boost shipments to the EU, an official from the Ministry of Industry and Trade (MoIT) told a seminar held in Hanoi on August 8.

Ngo Chung Khanh, Deputy Director of the MoIT’s Multilateral Trade Policy Department, said that commodities previously subject to high tariffs are now benefiting from tax cuts under the EVFTA and have recorded strong export growth.

Despite the fact the EU is a demanding market, Vietnamese businesses have managed to satisfy strict technical requirements, showing a change in mindset to meet the EU’s demand, he noted.

Tran Thanh Hai, Deputy Director of the MoIT’s Foreign Trade Agency, said the EVFTA, taking effect on August 1, 2020, has created a substantial demand for exports, which have increased almost 15% to about 83 billion USD over the last two years.

He added most items exported to the EU have posted fast growth during the period, especially steel (200%), coffee (75.2%), and cashew (55.8%). Others that were shipped in large volumes before the deal took effect like textiles and garments, footwear, and wood products have also enjoyed growth of 10-15%.

Only mobile phones and components have seen a decline in export revenue due to COVID-19.

Le Hang, director for communications at the Vietnam Association of Seafood Exporters and Producers (VASEP), said despite the pandemic’s impacts, fishery exports have recovered considerably, rising 8% year-on-year in 2020 and continuing to recover in 2021.

US launches anti-tax evasion investigation into steel pipe imported from Vietnam

The US Department of Commerce (DOC) announced that it has launched a trade remedy duty evasion investigation into a number of steel pipe products imported from Vietnam.

According to the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade, in this case, the plaintiffs, including US large steel pipe manufacturers, accused Vietnam of importing hot rolled steel (HRS) - the main raw material for the production of steel pipes - from China, Taiwan (China), the Republic of Korea, and India, and then simply processing them into steel pipes and exporting them to the US in order to avoid the respective trade remedies that the US is applying to these countries.

According to US law, relevant parties have 30 days from the date of initiation to submit comments and provide counter-information to US investigative agencies. Within 300 days of initiation, the DOC must issue a final conclusion of the case, which may be extended, but for a total period not exceeding 365 days.

Earlier in May, the US received requests to investigate against trade remedy tax evasion with a number of Vietnamese steel pipe products.

The Trade Remedies Authority of Vietnam advised relevant steel pipe producers and exporters to continue studying the regulations and procedures for trade remedy evasion investigation in the US.

In addition, businesses need to properly and fully comply with the requirements of the US investigation agency and closely coordinate with the authority throughout the case, it said.

Hanoi, HCM City boost tourism linkages with Central Key Economic Zone

Revenue from travel among Hanoi, Ho Chi Minh City and the five Central Key Economic Zone city and provinces exceeded 63.07 trillion VND (over 2.69 billion USD), heard at a conference on August 8.

The conference was held in the district of Tu Nghia, the south-central province of Quang Ngai, to review the two-year cooperation for tourism development among the two metropolises and the central localities of Thua Thien-Hue, Da Nang, Quang Nam, Quang Ngai, and Binh Dinh.

The review was expected to lay ground for the continued implementation of initiatives to boost intra-bloc partnership in tourism development post-pandemic.

Reports showed that intra-bloc tourist arrivals totalled more than 17,68 million last year, given that the sector was badly hit by COVID-19.

With COVID-19 restrictions removed, the figure reached close to 32.92 million, including some 1 million foreign arrivals, in the first half of 2022, generating total turnover of over 87.89 trillion VND.

Comprehensive revisions needed for Petroleum Law

After nearly 30 years of enforcement, the Petroleum Law now needs revisions to be in line with international practices and Vietnam’s energy development strategy and create momentum for the oil and gas industry’s development.

Nguyen Van Que, General Director of the Cuu Long Joint Operating Company - which is running the Su Tu Trang (White Lion) project, said the overlaps among existing laws such as the Petroleum Law and the Law on Public Investment have been impeding the implementation of exploration and exploitation projects.

Citing difficulties his company faced when operating Su Tu Trang, he said in this law, the regulation on capital preservation at risky projects such as oil and gas exploration and exploitation should be amended in order to attract businesses, especially foreign ones.

The Cuu Long JOC also proposed Article 47 on the making, assessment, and approval of development plans for oil and gas wells be revised.

Trinh Viet Thang, member of the Members’ Council of the PetroVietnam Exploration Production Corporation (PVEP), said his firm has 35 oil and gas contracts but most of them are about to be expired. PVEP carried out 26 projects from 2007 to 2015. However, since the Law on Public Investment took effect in 2016, only two new projects have been signed.

New oil and gas projects are hard to be signed and developed partly because most of Vietnam’s investment incentives are related to exploitation zones, not the exploitation scale like in many other countries, he explained.

In addition, projects in the industry are currently subject to regulations in many laws such as the Petroleum Law and the Law on Public Investment. Therefore, for enterprises completely owned by the State like PVEP, all projects in Group B (which are worth between 120 billion VND (5.13 million USD) and under 2.3 trillion VND) must be submitted to authorities at different levels, which is time-consuming and may encountered many problems.

At a seminar on revisions to the Petroleum Law held in Vung Tau city on August 5, Deputy General Director of the Vietnam Oil and Gas Group (PetroVietnam) Do Chi Thanh called for incentive suggestions so that the investment climate in this industry can regain its attractiveness.

Chairman of the Vietnam Petroleum Association Nguyen Quoc Thap held that the law should be revised comprehensively, and even a new petroleum law should be built to meet current demand.

He pointed out that many oil and gas projects are being implemented in sensitive areas, so in many cases, they could not be offered for open international bidding. Besides, many of such projects are located offshore and need a large number of accompanying supplies and services, thus causing additional expenses. All of these issues should be regulated in the new law to attract foreign investors.

Meanwhile, Deputy General Director of PVEP Hoang Ngoc Trung said the law needs to detail investment procedures for oil and gas projects, investment incentives, and financial mechanisms for dealing with risks.

A new law will provide an important impulse and necessary legal corridor for PVEP to immediately carry out five new projects and increase reserves, he told the seminar.

Phan Duc Hieu, permanent member of the National Assembly’s Committee for Economic Affairs, said the revised law should focus on improving the effectiveness and efficiency of oil and gas-related activities and enhancing investment attractiveness.

Vietnam’s manufacturing output continues to rise

The Vietnamese manufacturing sector remained in growth territory at the start of the third quarter of the year, but there were some signs of demand softening, according to a survey released on August 8 by S&P Global.

S&P Global said the Vietnam Manufacturing Purchasing Managers' Index (PMI) remained above the 50.0 no-change mark for the tenth successive month in July, signalling a further strengthening of business conditions. That said, at 51.2, down from 54.0 in June, the index signalled a softer improvement.

As such, output, new orders and employment all increased at weaker rates than in June. New orders increased for the 10th month running, but the rate of expansion eased to the weakest since April. New export business rose solidly, meanwhile, and at a faster pace than total new orders.

The continued growth of new orders encouraged manufacturers to keep expanding production in July. Output rose for the fourth successive month. That said, the rate of expansion was only marginal and the softest in the current sequence of growth amid signs of demand softening, shipping difficulties and price pressures.

There were signs, however, of price and supply pressures easing at the start of the third quarter.

Seven-month index of industrial production up 11.2%

The index of industrial production (IIP) in July was estimated to increase by 1.6%  over the previous month and by 11.2% over the same period last year, according to the General Statistics Office.

The rise was thanks to a further reopening of the economy in the wake of COVID-19 disruptions.

Output growth accelerated for most components, including manufacturing (12.8% against 9.9% in June); electricity and gas supply (8.7% against 5.5% in June); and waste treatment (9.2% against 6.3% in June).

In contrast, mining output fell 1.5%, reversing from a 5.1% growth in June.

Textile firms see mixed performance in Q2

In contrast to a sector-wide pickup in the first quarter of 2022, textile firms saw mixed performance in the second quarter.

According to the Vietnam Textile and Apparel Association (VITAS), textile exports hit around 22.3 billion USD in the first six months of the year, up 17.7% compared to the same period last year.

Vietnam National Textile and Garment Group (Vinatex) made an after-tax profit of 573 billion VND (25 million USD) in Q2, up 49% compared to Q2/2021.

The firm attributed the rise in profit to its high volume of cotton in storage, which resulted in low production costs amid mounting cotton prices.

TNG Investment and Trading JSC followed suit with a revenue of nearly 2 trillion VND and after-tax profit of 87 billion VND, up 35.7% and 42.3% year-on-year, respectively.

Phong Phu Corporation was another firm that came out well in Q2. It raked in over 160 billion VND in profit, surpassing the figure in Q2/2021 by 11%.

Although many firms were riding high in the second quarter, some others saw their profits eroded by rising costs.

International wood fair opens in Binh Duong

Bifa Wood Vietnam 2022, an international fair showcasing an array of woodworking machinery and wood materials, kicked off on August 8 in the southern province of Binh Duong.

The occasion features the participation of over 100 enterprises from both at home and abroad, including Germany, the United States, Italy, and China, all of whom have come to showcase their products across over 700 booths.

Nguyen Van Danh, vice chairman of Binh Duong province’s People’s Committee, said that the fair will greatly contribute to helping businesses gain access to advanced technology, diverse their sources of wood materials, and boost local wood exports.

A wide range of activities will be held during the course of the four-day fair, including field trips which will give visitors the opportunity to explore wood processing and manufacturing taking place at local plants.

Furthermore, several workshops on automation technology and digital transformation will also take place during the the event.

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

MORE NEWS

MPI: Growth scenario in 2023 of about 6.5 percent

Assessing that difficulties and advantages will be inextricably intertwined in 2023 but the difficulties will far overweigh the advantages.

HCMC welcomes first group of cruise ship tourists after Covid-19 pandemic

The Saigon Port Joint Stock Company, in collaboration with the Department of Tourism of Ho Chi Minh City and some units, on October 2, held a ceremony to welcome the luxury cruise ship Le Laperouse of Ponant (France).

VIETNAM NEWS HEADLINES OCTOBER 2

Investigations on corruption cases to expand: official

Rock tales in Ganh Yen

Ganh Yen is located along the fishing village of Thanh Thuy in Binh Hai Commune, Binh Son District, Quang Ngai Province.

VIETNAM BUSINESS NEWS OCTOBER 2

GDP growth to hit 8% this year in base-case scenario: Official

Doan Thien An crowned Miss Grand Vietnam 2022

Doan Thien An, 22-year-old beauty from the Mekong Delta province of Long An, was crowned Miss Grand Vietnam 2022 after surpassing 49 other contestants at the pageant finale in Ho Chi Minh City on October 1.

Vietnam’s GDP growth to be among the highest in SE as int’l organisations forecast

Vietnam’s GDP growth in 2022 and 2023 will be among the highest in Southeast Asian as shown in many international organisations’ forecasts and assessments on the Vietnamese economic outlook.

Amid global unrest, VN billionaires incur huge losses

Despite good news about the economy, including high growth rate and low inflation, stock prices have been sliding all over the globe.

Vietnam needs to expand airport network to relieve pressure on infrastructure

Vietnam ranks No.1 on the list of the 25 countries with the fastest post-pandemic recovery of the domestic aviation market.

Binh Duong lures foreign investors with special care

The southern province of Binh Duong has taken the lead for foreign direct investment (FDI) attraction thanks to its methods of taking care of investors.

Securities under pressure from external risks

Although the US Federal Reserve (FED) raised the interest rate in the hope of reducing inflationary pressure, it has come as a shock to see a rise in the core US inflation data, despite falling oil prices.

Unemployment rate falls, workers' incomes increase

According to the General Statistics Office's Report, the labor and employment situation in the third quarter of 2022 continued to recover.

The most expensive birds in Vietnam

Red-whiskered bulbs (Pycnonotus jocosus) with original colors are priced at VND500 million and tiny chickens with original colors sell for thousands of USD.

Drinks from dracontomelon: A popular heat-relieving drink in Hanoi

Sweet drinks made from ‘sau’, a fruit which is known scientifically as Dracontomelon, are a popular heat-relieving drink in Hanoi during the hot summer.

1,000 authors with doctoral degree or higher compiled textbooks for new academic year

As many as 1,574 authorities participated in compiling textbooks for six grades in accordance with the new general education program issued in 2018.
back_to_top