The Ho Chi Minh City People's Committee ordered related agencies and departments to add an additional 4,000 hectares of land for industrial production.

Yesterday afternoon, the Ho Chi Minh City People's Committee Office said that in order to support businesses, promote public-private cooperation, encourage investment and call for social contributions as well as improve the competitiveness of businesses in the city until 2025, the Ho Chi Minh City People's Committee requested the city Department of Natural Resources and Environment to urgently review land funds which can be used for developing projects around industrial clusters.

Moreover, the Department should submit its proposal of adjustments for worker housing projects to the Ho Chi Minh City People's Committee.

The Ho Chi Minh City People's Committee requested HEPZA to coordinate with the Department of Planning and Architecture and the Department of Industry and Trade to review the land fund and add 4,000 hectares of suitable land for the building of more concentrated industrial parks which will be included in the city's general planning.

Furthermore, these above-mentioned bodies should coordinate with Thu Duc City and districts to speed up site clearance progress in industrial parks to create land funds to serve the needs of businesses.

Related agencies should review land funds directly managed by the state, or lands for social housing projects in areas around industrial parks to propose the municipal People's Committee adjust the planning to conduct bidding to select investors for worker housing projects by exchanging the value of land use rights to create a worker housing fund.

At the same time, related agencies should give their opinions to the People's Committee of Ho Chi Minh City that the city authorities should allow economic organizations which are paying annual land rents to have the right to mortgage, transfer land or lease rental rights in land lease contracts. The land rents do not originate from the state budget.

The City Department of Planning and Architecture will be responsible for evaluating and adjusting industrial development orientations associated with a sustainable urban development model with synchronous infrastructure; Moreover, the department will adjust the planning of industrial parks according to advanced models that apply and promote models of marine economy, circular economy, and digital economy with high land use efficiency.

Last but not least, it will review, study and adjust the planning of existing industrial zones and clusters gradually renovating and synchronizing infrastructure, aiming to form smart, high-tech industrial zones or industrial complexes, business parks - modern urban services for integrating into the legal regulation of the general city planning.

The Management Board of the City's Export Processing Zones and Industrial Parks (HEPZA) should work to give advice to the Ho Chi Minh City People's Committee on solutions to accelerate the establishment of Vinh Loc 3 Industrial Park and Hiep Phuoc Industrial Park Phase 3 as well as solutions to remove problems in Le Minh Xuan Industrial Park 2.

HCMC launching promotional campaigns to boost purchasing power

Efforts have been made by both the city leaders and businesses to promote the purchasing power of goods, especially essential commodities, among city dwellers at the end of this year.

At weekends, many department stores like SC Vivo City in District 7, Van Hanh Mall in District 10, AEon Mall Tan Phu in Tan Phu District welcome a stable quantity of visitors even when the ‘Black Friday’ event is launched, with various lucrative discount schemes of 20-70 percent.

Analyses from businesses reveal that consumers are now being offered more shopping options, both online and offline. Adding to that are different discount programs running all year round. Therefore, instead of saving money to go shopping at one specific time, many consumers monitor the market and quickly make a transaction when they believe the prices of certain products are profitable to them.

People are also more careful with their purchases to focus more on essential commodities as their income is negatively affected by the Covid-19 pandemic. The director of a high-end cosmetic importer shared that even with massive discounts, his company could not reach its expected sales. The purchasing power for its goods did rise by 50 percent in the ‘Black Friday’ promotion, yet the transaction value only increased nearly 10 percent.

In contrast, the sales of essential food products are absolutely positive. Certain supermarkets like MM Mega Market, Emart (in Go Vap District) GO!, BigC (in District 10 and Binh Tan District) saw a remarkable growth as to processed food, vegetables, and fresh food thanks to their discounts from 40-60 percent.

To further boost the purchasing power of consumers in the city, the HCMC Department of Industry and Trade has cooperated with all localities and major retail systems in the country for high-quality, stable supply sources to maintain steady prices of essential commodities for customers.

This year, the volume of price-stabilized merchandise continues to comprise 25-43 percent of the market’s demands to serve the community during the upcoming Tet holiday. In particular, each month, the city can offer 70 million eggs, 2,000 tonnes of sugar, 8,000 tonnes of poultry, 200 tonnes of seafood, and 2,000 tonnes of cooking oil.

Deputy General Director Pham Thi Van of Saigon Trading Group (SATRA) informed that her organization has worked with its suppliers for a commitment not to increasing prices while ensuring the quality of provided merchandise during Tet holiday. It is expected that the total goods value of this company for the two months before and after Tet holiday is over VND550 billion (US$22.7 million), a rise of 10 percent compared to this time last year.

Retail businesses admitted that the current consumption trend has changed a great deal, so it is necessary to both offer buyers reasonably priced goods and attractive incentives.

Marketing Director of Marketing MM Mega Market Vietnam Dinh Quang Khoi commented that the purchasing power at year end is unpredictable, but his company hopes to have a sales increase of 20-30 percent compared to this time last year. To achieve this, MM Mega Market is launching its price stabilization scheme and affordable Tet gift sets aiming at both retail customers and businesses.

Communications Director of Central Retail Vietnam Nguyen Thi Bich Van stated that consumers in Vietnam pay more attention to essential commodities with acceptable prices. Therefore, her organization is running the scheme ‘1,000 products with cheaper prices’ following the principle of ‘Buy more get more’.

Economists comment that during such economic downturns right now, consumers are tightening their spending, directly affecting their purchasing power. In the long term, retail businesses and manufacturers must collaborate to offer more incentive programs and increase product quality. The HCMC market with 10 million people and the national one in general should be the focus of enterprises so that more practical strategies can be developed to sustainably and effectively exploit it.

Vietnam has opportunity to welcome coming supply chain shifts

Most participants at today’s forum said that Vietnam has many opportunities to welcome the wave of supply chain shifts in the coming time.

This afternoon, the Ho Chi Minh City Logistics Association (HLA) organized the 2023 City Logistics Forum with the theme ‘Shifting supply chain: Prospects and challenges’. According to forum participants, for good preparation for the coming supply chain shift, Vietnam needs to increase investment in developing logistics infrastructure, increase loading and unloading capacity and add warehouses at seaports as well and form a large logistics service supply center in Ho Chi Minh City.

According to Mr. Nguyen Cong Luan, Deputy Head of the Import-Export Management Division under the Department of Industry and Trade of Ho Chi Minh City, logistics activities in Vietnam in general and Ho Chi Minh City in particular still have many challenges. Road transport is still the main mode of transport, but road infrastructure is overloaded and degraded. Currently, about 20 percent of roads in Vietnam are built modernly and meet the requirements of the logistics industry while more than 50 percent of roads are of poor quality and do not ensure safety for transporting goods.

Roughly 9,600 Ho Chi Minh City-based businesses registered to operate in the logistics service industry accounting for 36.7 percent of the country. These are multi-industry businesses operating in transportation, and logistics; thereby, they helped the southern largest city maintain its position as a leading locality in logistics activities in the region and the country. However, Ho Chi Minh City does not have a large-scale logistics center applying modern advanced technology. Currently, the city has only one Logistics Center project in the High-Tech Park licensed in June 2023.

According to the Ho Chi Minh City University of Transport’s statistical results, the city has only 1,500 warehouses and only 30 standard cold storage warehouses which are not enough to meet market demand.

Forum attendees voiced their opinions about how to prepare for the supply chain shifts. As per their ideas, it is necessary to increase the implementation of investment projects to develop transport infrastructure and logistics infrastructure in the country, especially in Ho Chi Minh City. For instance, Mr. Nguyen Cong Luan said that the city will speed up the process of calling for investment in 6 logistics center construction projects in Thu Duc City’s Long Binh, Linh Trung, Cat Lai - Phu Huu wards, Binh Chanh outlying district’s Tan Kien Commune, Cu Chi District’s Binh My Commune and Nha Be District’s Hiep Phuoc Commune.

Discussing the challenges of Vietnam's participation in the global value chain, many experts say that high logistics costs and many intermediary stages in the goods production process resulted in increased costs. In addition, the connection between different modes of transport is also weak; Vietnam's infrastructure is only gradually developing. Therefore, Vietnam needs to continue to promote strong investment to create competitive advantages, especially improvement in infrastructure.

According to Agility Emerging Markets Logistics Index 2023, Vietnam moved into the top 10 of the Index among emerging markets. Moreover, among Southeast Asian countries, Vietnam is ranked fourth, behind Malaysia, Indonesia, and Thailand.

According to the assessment published by the World Bank in 2023, Vietnam ranks 43rd in the logistics efficiency index. Vietnam is among the top 5 countries in ASEAN, just behind Singapore, Malaysia, and Thailand.

Ministry allows businesses to offer 100 percent discount

The Ministry of Industry and Trade allowed businesses to offer 100 percent discounts on their products in the national promotion program.

This morning, the Agency of Trade Promotion under the Ministry of Industry and Trade held a press meeting to introduce the national promotion program 2023 (or Vietnam Grand Sale 2023) in Hanoi.

This program will take place simultaneously nationwide, with the Agency of Trade Promotion in coordination with departments of industry and trade of provinces and cities, associations, industries, businesses, and relevant organizations to guide and support businesses in implementing promotional programs.

The Competition Law intends to prevent market distortion caused by anti-competitive practices on the part of businesses. However, according to Clause 4 and Point b Clause 5 Article 6 of the government’s Decree No. 81/2018/ND-CP, businesses launching centralized promotional programs 30 days before the first day of the Lunar year are allowed to apply the maximum limit on the value of goods and services used for promotion.

Thus, according to this regulation, businesses are allowed to apply up to 100 percent discount in the national centralized promotion program held from December 2023 to early February 2024.

Accordingly, all businesses have been eligible to participate in the program by proactively carrying out their promotion program with consumer-oriented activities. During the program, businesses can apply maximum promotional limitations up to 100 percent; however, they must ensure legal, honest, public, transparent promotional activities, the legitimate rights and interests of consumers as well as the quality of goods and services.

Singapore firms keen on logistics, digital transformation in Long An

A number of Singaporean businesses have demonstrated keen interest in investing in the Mekong Delta province of Long An, particularly in the fields of logistics and digital transformation, the two sectors identified by the local government as key areas for attracting investment in the coming years.

During a forum held on November 29 to foster collaboration between Long An Province and Singaporean businesses, Huynh Van Son, vice chairman of the province, highlighted the alignment between the efforts of Singaporean companies and Long An’s strategic direction for targeted investments.

The province’s primary focus revolves around advancing the digital economy, promoting a green economy, and embracing a circular economy.

Long An has identified science, technology, and innovation as the cornerstones of its development strategy, with a strong emphasis on environmental protection to achieve long-term and sustainable economic growth.

The local government is actively encouraging Singaporean businesses to maintain and expand their investments in the Vietnam-Singapore industrial parks, with the goal of fostering sustainable growth through these endeavors.

Son said, “Long An is committed to creating favorable conditions for Singaporean businesses to expand their investments, especially in the fields of digital transformation and the transition to green energy.”

To facilitate the issuance of investment certificates for businesses, he said Long An has successfully reduced the processing time to a maximum of three days.

Singapore currently takes the lead in terms of foreign direct investment (FDI) in Long An Province with total pledged capital of over US$4 billion, accounting for 37% of the total investment received by the province from 40 countries and territories.

HoREA proposes VND110-trillion credit package for social housing

The HCMC Real Estate Association (HoREA) has proposed a VND110-trillion credit package aimed at facilitating the construction of affordable housing units for workers.

The purpose of this credit package, according to the association, is to address the pressing demand for affordable housing by offering loans at interest rates of 4.8% to 5% per year.

There exists a VND120 trillion credit package sourced primarily from commercial banks. This initiative targets both developers and individuals involved in social housing projects, providing an interest rate of 7.7% per year for homebuyers and renters, with a slightly higher rate of 8.2% for social housing project developers.

These rates may appear to be advantageous as they remain 1.5% to 2% percentage points lower than prevailing interest rates at banks. However, concerns have been raised regarding the short-term benefits, with interest subsidy limited to a five-year term and the semiannual interest rate adjustments, which have created uncertainty among borrowers.

In response to these challenges, HoREA underscores the importance of ongoing collaboration among key stakeholders, including the Ministry of Construction, the State Bank of Vietnam, the Ministry of Planning and Investment, and the Ministry of Finance.

The proposed VND110-trillion credit package, initially suggested by the Ministry of Construction in February, mirrors the successful VND30-trillion credit program implemented between 2013 and 2016.

Featuring an attractive interest rate of 4.8% to 5% per year and a maximum loan term of 25 years, this proposed credit initiative allocates about 50% of the funds to social housing project developers, with the remainder dedicated to homebuyers and house tenants.

M&A deals total US$4.4 billion in Jan-Oct

The Vietnamese merger and acquisition (M&A) market had got 265 transactions worth over US$4.4 billion done in the year to the end of October, up by 23% year-on-year, showed KPMG’s statistics. The average value of each M&A transaction was US$54.5 million.

The first 10 months of the year saw a surge in M&A activity in areas like digital transformation, retail, and consumer goods.

Speakiing at the Vietnam M&A Forum 2023 held in HCMC yesterday, November 28, Deputy Minister of Planning and Investment Tran Duy Dong said the local M&A market is still attractive to foreign investors thanks to the country’s political stability, high economic growth and the rapid development of the consumer market.

At the forum, financial experts and economists appreciated the Government’s efforts in stimulating economic growth and consolidating investors’ trust over the past time, thus creating M&A opportunities.

Poor weather, fight against IUU fishing hit fishery output

Output of Vietnam’s fishery industry in the year to date has been affected by adverse weather conditions and the intensified combat against illegal, unreported, and unregulated (IUU) fishing.

Total fishery production has reached nearly 8.5 million tons, up by a modest 2.2% versus the same period last year, a report of the General Statistics Office said today, November 29.

Breaking down the figures, fish production exceeded six million tons, a 1.7% year-on-year increase, while shrimp production surged by 5.2% to 1.2 million tons.

Output of other fishery products has totaled 1.2 million tons, up by 1.8%. In November alone, more than 836,000 tons of seafood has been produced, up by 3.2% year-on-year.

However, a combination of unfavorable weather conditions, declining marine resources, and rising fuel costs has contributed to a 0.4% decline in marine catches for the month.

In contrast, aquaculture production has grown by a 5.2% over the same period last year to 550,600 tons. This increase is driven by fish production, which has reached 368,100 tons (up 4.2%), and shrimp production, which has surged by 7.8% to 121,400 tons.

The report highlighted a significant rise in farmed tra fish (pangasius) harvest in November, increasing by 4.5% year-on-year to 177,300 tons.

Technological advancements in shrimp farming, including the adoption of super-intensive shrimp farming models, have played a role in boosting overall production. Whiteleg shrimp production has expanded by 9% to 88,600 tons, while black tiger shrimp production has risen by 3.8% to 24,700 tons.

30 Belarusian businesses to attend Vietnam Expo 2023

As many as 30 Belarusian businesses are due to attend the Vietnam International Trade Fair (Vietnam Expo 2023) which is slated to run from December 7 to December 9 in Ho Chi Minh City.

Belarusian firms will showcase a wide variety of goods and services from industries such as engineering, petrochemicals, electrical engineering, agriculture, food and beverages, scientific and technical development, education, and marketing.
  
Visitors will have the opportunity to explore advanced technologies and products which represent Belarus’ industrial production and consumption, as well as sampling Belarusian food and drinks at the pavilions.

Vietnam Expo 2023 is expected to attract the participation of 1,200 exhibitors from 20 countries and territories from around the world.

On display across the 1,600 booths will be an array of cutting-edge products in five fields, including hardware, hand tools, gardening technology, landscape decoration, elevators, accessories, sports, and bicycles.

Most notably, this year’s expo will witness the participation of the pavilions of the Vietnam Private Sector Competitiveness Enhancement Project (IPSC) organised by the US Agency for International Development (USAID).

A number of seminars will be held during the course of the event, along with tours to industrial parks DIY workshops and other competitions.

In particular, the Belarusian delegation will host the Belarus - Vietnam forum on December 7 in order to introduce the trade and economic potential of key manufacturing industries.

A wide range of trade exchange events between Vietnamese and Belarusian businesses will be held immediately after the forum.

Debt collection taking on new hue

Vietnam faces increasing complexities in consumer lending, with escalating concerns over illegal lending practices, challenges in debt recovery, and a call for stronger legal frameworks to manage non-performing loans and safeguard consumer rights.

Nguyen Quoc Hung, general secretary of the Vietnam Banks Association, detailed the challenges impeding the growth of consumer lending at a seminar on the issue in mid this month.

“The sector is not only grappling with broader economic difficulties but also faces serious issues such as intentional loan defaulting and social media groups promoting such behaviour, severely hindering debt recovery efforts,” Hung said.

This situation has led some financial institutions to reduce their consumer lending portfolios to prevent further escalation of bad debts. Legal challenges with borrowers, particularly in asset handover for debt recovery, are adding to the institutions’ woes, resulting in protracted legal processes.

Hung also highlighted the risks posed by bad debts and document falsification.

“The misuse of technology for fraudulent activities is threatening both individuals’ financial stability and the reputation of financial organisations,” he warned.

Meanwhile, some banks have also recommended measures to enhance consumer lending while controlling bad debts. Proposals included streamlined legal procedures for credit disputes, especially those secured by real estate, and integrating national population data for electronic information authentication.

A representative from Agribank pointed to recent economic challenges and a sluggish real estate market impacting loan security.

“Borrowers with multiple small loans across different institutions complicate the debt classification process, and non-cooperation in asset handover for debt recovery necessitates time-consuming legal interventions,” the representative explained.

“Moreover, we recommend that the Vietnam Credit Information Centre adopt more nuanced debt classification policies for customers with multiple loans. For instance, a loan at Agribank should not be automatically classified as bad if a borrower’s loan at another institution is classified as such.”

Additionally, the representative underscored the necessity for a national database on real estate and collateral valuation, stating, “Access to such a database would be crucial for credit institutions to accurately assess credit ratings and digitalise lending processes, significantly reducing associated risks,” he said.

Highlighting the urgency for legislative action, Agribank advocated for new regulations to succeed Resolution 42 of the National Assembly, which is due to expire at the end of 2023. “Timely legislation is essential to maintain the banking system’s efficiency, particularly in managing non-performing loans,” the representative said.

A BIDV representative suggested that the State Bank of Vietnam consider allowing credit institutions to use alternative authentication methods. “For smaller online loans, exempting the verification of loan purposes could be beneficial,” he said.

Bui Duc Tai, deputy head of the Criminal Police Department at the Ministry of Public Security, stressed the importance of utilising national population databases effectively for authentication, cleansing, and the elimination of “ghost” bank accounts.

“We urge legitimate financial institutions to streamline their credit issuance processes, which will enhance state management efficiency and play a crucial role in combating illegal lending,” Tai said.

Interest rate cutbacks designed to assist borrowers

Several Vietnamese banks implemented substantial interest rate reductions in 2023 to stimulate loan uptake across various sectors, despite challenges in meeting credit growth targets.
 
In the second half of November, MSB announced a significant interest rate cut, marking its fifth such reduction since the start of the year. This initiative, effective through late December 2023, is designed for individual clients seeking mortgage loans for home purchases, renovations, consumer goods, education abroad, and tuition payments.

Prior to this, SHB introduced a substantial interest rate cut of up to 2 per cent per annum, extending through the end of 2023. This reduction is targeted at existing clients, encompassing both individual and corporate borrowers, together with priority sectors such as agriculture, small- and medium-sized enterprises (SMEs), and green projects, among others.

Earlier this month, BIDV also implemented a reduction in interest rates for personal business and consumer loans. Specific rates have been adjusted to 5.4 per cent per annum for loans shorter than six months in environmentally sustainable sectors, and 6.4 per cent per annum for loans between 6 and 12 months.

A credit officer from a state-owned bank highlighted the difficulties in meeting targets, resulting in frequent staff resignations. “Businesses eligible for loans, especially at preferential rates, are scarce, while those willing to borrow often face reluctance in loan processing due to risk considerations.”

In a statement to the National Assembly on November 6, State Bank of Vietnam (SBV) Governor Nguyen Thi Hong attributed the year’s subdued credit growth to businesses experiencing a decline in orders. Households and entrepreneurs are still grappling with the aftermath of the pandemic.

“From the supply side, the SBV has been directing efforts to create better conditions for credit institutions in extending loans. It has taken multiple actions, including directing institutions to revise lending processes to reduce turnaround times and providing recommendations to various ministries and agencies to enhance credit access, especially for SMEs,” she said.

One of the key factors influencing the overall credit growth in the economy is the diminished credit uptake in the real estate sector.

As of September 30, the total loan portfolio of 28 banks marked a 9 per cent increase from the start of the year. Despite a consistent decrease in deposit interest rates, total customer deposits have shown an 11 per cent rise since the beginning of the year.

Dinh Quang Hinh, an analyst at VNDirect, predicts a further decline in lending rates towards the end of this year, owing to the rapid decrease in commercial banks’ cost of funds.

“The recent sharp decline in the funding costs for banks is likely to lead to a continued downward trend in loan interest rates in the coming months,” Hinh said.

Economic expert Dr. Le Xuan Nghia voiced scepticism about achieving the SBV’s target. “In the current economic context, it’s extremely challenging for the banking sector to reach the 14 per cent credit growth target. This would likely require a flurry of substantial loan approvals in the final days of 2023, which seems improbable,” he said.

BSC Securities, in its latest analysis report this month, referenced a pattern since 2016 where initial slow credit growth typically leads to a strong end-of-year rally.

“Despite a slow start, we expect the credit growth for 2023 to reach approximately 12 per cent, buoyed by a more optimistic economic outlook as the year ends,” BSC said.

The brokerage is optimistic about the overall credit growth, expecting it to improve to about 13-14 per cent.

“With continued relaxed monetary policies, increased public investment disbursement due to low capital costs, and manageable government debt repayment pressures, coupled with a slowly warming real estate market, we believe the credit growth will see an uptick,” BSC added.

Tran Thi Ha My, chief economist at Viet Dragon Securities, highlighted the government’s ambitious credit growth target for 2024 of 15 per cent, surpassing the 14-15 per cent goal set for 2023.

“Given the current pace of credit growth, which is aligning with only about a 10 per cent increase on-year, the 2024 outlook seems more optimistic. A reduction in interest rates creates a necessary condition, but a stronger recovery in business operations, investments, and consumption, particularly in housing loans, is crucial,” My said.

Hanoi’s consumer price index up 0.07% in November

The consumer price index (CPI) in the capital city grew up 0.07% in November from the previous month, according to the Hanoi Statistics Office.

This figure represents an increase of 4.72% compared to the same period last year.

Moving in the upward trend were groups of education (0.44%), apparel, headwear and footwear (0.38%), restaurants and catering services (0.06 %) and other goods and services (0.48%). The prices of foodstuffs grew by 1.37%.

The group of housing, electricity, water and construction material, transport and postal and telecoms services group were the three groups of commodities that saw their prices go down.

An adjustment to petrol prices brought a 0.06% decrease in the transport group compared to the previous month and the postal and telecoms services group declined by 0.05%. Housing, electricity, water and construction materials group fell by 0.18% month-on-month due to lower prices of electricity and kerosene.

The average CPI in the first eleven months of 2023 expanded by 1.8% year-on-year.

The Statistics Office also said that the gold price went up by 3.88%, while the price of US dollar rose by 0.09% as compared to October.

Singaporean enterprises explore Long An’s investment environment

The Mekong Delta province of Long An is willing to create favourable conditions for Singaporean businesses to expand investment in the locality, especially in the fields of innovation, green energy transition, industrial infrastructure, urban infrastructure, health, processing, manufacturing, and financial market development.

The statement was made by Vice Chairman of the provincial People’s Committee Huynh Van Son on November 29 at a seminar to promote trade cooperation between the province and Singapore, which attracted the participation of representatives from over 40 Singaporean enterprises.

Son said that Singapore is currently the leading country in FDI investment in Long An with more than 4 billion USD, accounting for 37% of the total FDI from 40 countries and territories pouring capital into the locality. This proves that the province's investment environment is a leading and reliable destination for Singaporean investors.

Long An hopes Singapore businesses will continue to promote the effectiveness of the model of Vietnam - Singapore industrial parks in a sustainable direction, towards the formation of industrial, innovation, urban, services and high technology ecosystems, he stressed.

He pledged to speed up administrative reform, support investment projects, and ensure investors fully enjoy preferential policies in accordance with regulations, adding that the province is also implementing a plan to improve human resources to meet the needs of businesses.

Singaporean Consul General in Ho Chi Minh City Roy Kho said that Long An is one of the important and potential partners for Singapore businesses.

The two sides still have a lot of room to increase cooperation and investment in all fields, particularly in renewable energy, smart city building, logistics, agriculture, and tourism, he emphasised, showing his hope that the seminar will help both sides identify challenges, opportunities and solutions to promote connectivity and create more cooperative and investment relationships.

Petrol prices increase on November 30

The Ministry of Industry and Trade, and the Ministry of Finance on November 30 decided to increase the retail prices of petrol products.

Accordingly, the price of E5RON92 rose 109 VND to 21,799 VND (0.9 USD) per litre, while that of RON95-III reduced by 34 VND to 22,900 VND per litre.

Meanwhile, the price of diesel oil were adjusted to 20,196 VND per litre, down 87 VND per litre; those of kerosene and mazut increased to 21,116 VND per litre and 15,729 VND per kilogramme, up 172 VND and 91 VND, and respectively.

With this price adjustment, the ministries decided not to use the petrol and oil price stabilisation fund.

Quang Ninh hosts 15th Vietnam-China international trade, tourism fair

The 15th Vietnam-China international trade and tourism fair opened in Mong Cai City, in the northern border province of Quang Ninh on November 30.

The fair has been held in turn by Mong Cai and China’s Dongxing city since 2006, and is included in the annual national trade promotion programme of the Vietnamese Ministry of Industry and Trade.

This year’s five-day event comprises more than 400 booths of over 200 organisations, with over 2,000 products from over 50 provinces and cities in Vietnam and China on display.

In his opening remarks, Vice Chairman of the Quang Ninh People’s Committee Bui Van Khang said that during its development and international integration process, Quang Ninh has worked hard to develop its friendship and cooperation with Chinese localities, partners and investors.

China is currently Quang Ninh’s leading partner in foreign direct investment (FDI) with 92 projects, accounting for 47.42% of registered capital of a total of 172 FDI projects in Quang Ninh.

Huang Jiasheng, head of the delegation of the Guangxi Zhuang Autonomous Region, proposed the two sides work together to perfect the policy of opening the door to cross-border trade.

This year’s fair includes an exhibition of the socioeconomic achievements, a display and introduction of Vietnamese and Chinese goods, a forum on cross-border tourism via the international border gate pair of Mong Cai and Dongxing, and a forum on the export of agro-forestry-fisheries products to China.

In addition, cultural and sport activities are scheduled to be held, including singing on the border river, a cultural exchange event between the youth of Mong Cai and Dongxing, an international golf tourism tournament, and a friendship running race.

Dong Thap calls for investment from Japan

A conference aimed at promoting investment and trade cooperation between the Mekong Delta province of Dong Thap and Japan was organised on November 29, attracting more than 50 enterprises and investors from both sides.

Addressing the event, Secretary of the provincial Party Committee Le Quoc Phong said that Japan has signed many bilateral and multilateral free trade agreements (FTAs) with Vietnam, creating important legal frameworks for promoting trade, investment and business relations between the two countries. Over the past years, Dong Thap has boosted collaboration with many Japanese localities, organisations and individuals, he said.

As the province has always ranked in the top five in the country in terms of the provincial competitiveness index for the past 15 consecutive years, Dong Thap is confident that it is an ideal investment environment for Japanese businesses, he noted

Japanese Consul General in Ho Chi Minh City Masuo Ono said that once Dong Thap's road and waterway transportation system is complete, it will open up opportunities for investment and trade collaboration between the province’s enterprises and Japanese companies in such fields as agricultural processing, logistics, and tourism.

At the conference, participants were briefed about industrial parks, border gate economic zones, industrial clusters, fields and projects that are calling for investment.

Investment and trade connection activities between Dong Thap businesses and Japanese businesses were also organised within the framework of the event, along with the introduction of local culture, tourism, and cuisine as well as products with demand for export to Japan.

The total trade turnover between Dong Thap and Japan reached 18.17 million USD in 2022 and topped 20.5 million USD in the first eight months of this year. Dong Thap exported seafood, apparel, footwear, shrimp crackers and products made from rice to Japan while importing textile accessories and animal feed.

Bac Ninh, Dutch company work on logistics training

A signing ceremony for a Memorandum of Understanding (MoU) on cooperation between the People's Committee of Bac Ninh province, the STC B.V from the Netherlands, and Tan Cang -STC Human Resources Development Co. Ltd, took place in the northern province on November 30.

The MoU will help with human resources development, education and training aligned with local socio-economic development goals. It also aims for the development of the parties involved in consulting, training, recruitment, internship and human resources development in the port, logistics, and supply chain management industry of Bac Ninh.

Chairwoman of the provincial People's Committee Nguyen Huong Giang said Bac Ninh has a particular advantage in the development of trade and logistics services with 16 industrial infrastructure projects that have been put into operation and eight others under construction with a total area of 6,400ha.

So far, the Bac Ninh Industrial Zones Authority has granted licences to 24 logistics projects covering over 260ha, with a total new and additional capital of over 490 million USD, she added.

She also committed all possible support to ensure that the MoU yields positive results.

Vietnam, China push up cross-border trade

Permanent Vice Chairman of the Lang Son provincial People's Committee Duong Xuan Huyen held a working session with a visiting delegation from the People's Government of China's Guangxi Zhuang Autonomous Region on November 30 to discuss measures to facilitate exchanges and cross-border trade.

Huyen said Lang Son is the largest transshipment area for Vietnam-China import and export goods by road, playing a crucial role in facilitating the export and import of Vietnamese agricultural products to and from China. It serves as a vital route in promoting economic and trade exchanges between Vietnam, China, and ASEAN, and vice versa.

With the goal of further raising the customs clearance capacity at local border gates, the provincial authorities directed departments and agencies to develop a pilot project on the construction of smart border gates at the specialised route for transporting goods at Huu Nghi – Youyi Guan border gate. The project has now been basically completed and submitted to the Prime Minister for approval, he said.

He proposed that authorities of Guangxi continue working with Lang Son to promptly resume customs clearance activities at several pairs of border gates between the two sides. Additionally, they should facilitate the customs clearance through these border gates and hold a ceremony to operate the route dedicated to goods transport through Tan Thanh (Vietnam) - Po Chai (China).

The host suggested the early resumption of customs clearance for goods through the Binh Nghi-Ping Erguan border gate pair, and the upgrade of it to a bilateral border gate and promotion of tourism activities there.

Liao Pinhu, Vice Governor of the People's Government of Guangxi Zhuang Autonomous Region, wished that Lang Son would promptly build smart border gates under the framework agreement already signed between the two sides.

He also urged the Vietnamese Government to implement the construction and upgrade of the Hanoi - Dong Dang railway route and continue with measures to facilitate customs clearance at border gates of both sides.

Transactions worth from 400 million VND must be reported to state bank from Dec 1

Transactions with a value of 400 million VND (16,520 USD) or more must be reported to the State Bank of Vietnam (SBV) from December 1, according to a new decision issued by the Prime Minister.
 
Previously, the value of transactions to be reported to the SBV is 300 million VND.

Under the Prime Minister’s Decision 11/2023/QD-TTg, the new regulation is applied to financial institutions, and organisations and individuals engaged in related non-financial businesses as prescribed in Clauses 1 and 2, Article 4 of the Anti-Money Laundering Law.

It affects financial institutions licensed to perform one or several activities including: acceptance of deposits; lending; financial leasing; payment services; intermediary payment services; issuance of negotiable instruments, bank cards, money transfer orders; bank guarantees and financial commitments; provision of foreign exchange services and monetary tools in the currency market; securities brokerage; securities investment consulting, securities underwriting; securities investment fund management; securities investment portfolio management; life insurance business; and currency exchange.

Relevant non-financial businesses and professions carrying out one or several activities including prize-awarding games (including electronic games); telecommunications network-based games; Internet-based games; casinos, lottery and betting; real estate transactions except real estate leasing and subleasing activities and real estate consulting services; trading precious metals and gemstones; providing accounting services, notary services and legal services by lawyers and law-practicing organisations; services for establishing, managing and operating businesses; director and secretary services for third parties; and legal agreement services will also have to comply with the decision.

Initiatives proposed to develop sustainable financial policies

The Vietnam Finance Forum 2023 themed “Financial Policies to Overcome Challenges towards Sustainable Development” was held in Quy Nhon city, the central province of Binh Dinh, on November 30.

The forum, jointly held by the Vietnamese Ministry of Finance (MoF), the German Agency for International Cooperation (GIZ), the European Union, and the German Ministry for Economic Cooperation and Development, discussed and proposed initiatives and solutions to implement major orientations on finance and budget in the coming time, following those approved in the Finance Strategy by 2030.

MoF Deputy Minister Cao Anh Tuan said that financial and budget policies and solutions in recent times have contributed to stabilising the macro-economy, controlling inflation, and basically ensuring major balances. The GDP growth reached 5.33% in the third quarter of 2023, and 4.24% in the first nine months of this year. The 10-month average consumer price index increased by 3.2%. Production and business activities have been restored and are increasingly developing.

Budget spending has prioritised green growth, state budget spending for environmental protection become increasingly specific and clear, and public investment for green growth been mainstreamed in investment priorities for industries, sectors, localities and environmental works, said Tuan.

Arne Främk, GIZ representative, Team Leader of the “Strengthening Public Financial Management in Vietnam” project, highly valued the Vietnamese Government’s efforts to carry out green growth solutions and facilitate continuous economic growth while maintaining a healthy balance and managing environmental impacts.

Towards sustainable green growth, she stressed that the energy transition process requires huge financial resources which cannot be met from the Government alone. Therefore, GIZ recommends a fair transition solution. Budget, public debt and tax management could be a foundation for broader reforms, as well as stimulating investment from the private sector.

To help Vietnam grow sustainably, Ngo Thi Kim Thu, representative of the European Union Delegation to Vietnam, said that the EU Delegation to Vietnam also has programmes and policies to support Vietnam in energy transition.

Currently, the delegation and other international partners have committed to mobilising more than 15 billion USD to support Vietnam in its just and sustainable energy transition to achieve its net emissions target by 2050.

Bac Ninh, Dutch company work on logistics training
 
A signing ceremony for a Memorandum of Understanding (MoU) on cooperation between the People's Committee of Bac Ninh province, the STC B.V from the Netherlands, and Tan Cang -STC Human Resources Development Co. Ltd, took place in the northern province on November 30.  

The MoU will help with human resources development, education and training aligned with local socio-economic development goals. It also aims for the development of the parties involved in consulting, training, recruitment, internship and human resources development in the port, logistics, and supply chain management industry of Bac Ninh.

Chairwoman of the provincial People's Committee Nguyen Huong Giang said Bac Ninh has a particular advantage in the development of trade and logistics services with 16 industrial infrastructure projects that have been put into operation and eight others under construction with a total area of 6,400ha.

So far, the Bac Ninh Industrial Zones Authority has granted licences to 24 logistics projects covering over 260ha, with a total new and additional capital of over US$490 million, she added. She also committed all possible support to ensure that the MoU yields positive results.

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