A forum to promote investment in information and communications technology (ICT) in the central city of Da Nang from the Republic of Korea (RoK) was held virtually on November 30, bringing together representatives from over 200 enterprises and investors from the two countries.

The event aims to introduce potential, advantages, preferential and investment support policies of Da Nang to RoK businesses and investors, especially in ICT, and high technology.

Addressing the event, Deputy Minister of Information and Communications Phan Tam said the RoK is the largest foreign investor in Vietnam with over 9,000 valid projects worth over 71.5 billion USD, including nearly 500 investment projects in the ICT field with the presence of the world's leading technology corporations such as Samsung and LG.

To welcome more investments from the RoK, the Vietnamese Government has been perfecting models, mechanisms and policies to create breakthrough development for concentrated IT parks in key economic centres, he said.

Da Nang is likened to a "silicon valley of Southeast Asia". The municipal authority is working with the central agencies to build a digital ecosystem, giving priority to attracting foreign-invested projects in IT and high technology, towards developing the central city into a destination for global digital technology corporations, Tam said.

Participants discussed the development of Vietnam's ICT industry, investment of Korean firms in general and Korean ICT enterprises in particular in Vietnam.

Korean investors also shared their investment experience in Da Nang.

Consul General of the RoK in Da Nang Ahn Min-sik said this is the right time to strengthen cooperation in IT in order to connect other sectors, expressing his hope that RoK corporations and Da Nang city will promote stronger ICT cooperation as well as in other fields for sustainable development.

According to Vice Chairman of the municipal People’s Committee Tran Phuoc Son, the city considers the RoK one of its key partners, and wishes to promote connectivity and investment from Korean companies in its ICT sector.

Da Nang pledges to create favourable conditions for RoK investors to set up and operate effectively projects in Da Nang, he affirmed.

The RoK is one of the strategic markets that Da Nang is calling for investment. The RoK is one of the five countries and territories having the highest number of projects and investment capital in Da Nang, with 233 projects worth 378.14 million USD as of this November.

Information technology is one of the key areas that Da Nang city is focusing on calling for Korean investors. The city has set a target of earning 2.34 billion USD from the ICT sector by 2025./.

Retail sales of goods, services fall 8.7 percent in 11 months

Total retail sales of goods and services plunged 8.7 percent year-on-year to nearly 4.13 trillion VND in the first 11 months of this year, the latest report by the General Statistics Office (GSO) shows.

In November alone, the total retail sales of goods and services picked up 6.2 percent month-on-month thanks to the resumption of business and services activities after months-long restrictions placed to curb the spread of COVID-19. However, the figure declined 12.2 percent compared to the same period last year.

During the 11-month period, retail revenue of food and foodstuffs edged up 4.9 percent year-on-year, while that of clothing shrank 12.4 percent, household appliances 11.4 percent, cultural and education products 10.7 percent, and vehicles 6 percent.

HCM City experienced the largest fall of 24.8 percent in retail sales of goods from January to November, followed by Khanh Hoa (15.3 percent) and Hai Phong (8.5 percent). The southern hub also recorded the biggest contraction of 45.5 percent in revenue from lodging and catering services, followed by Binh Duong (24.8 percent) and Thua-Thien Hue (21.8 percent).

Tourism and travel services in the coastal province of Khanh Hoa was hit the hardest by COVID-19 impacts with revenue nosediving by 88.3 percent, followed by Thua-Thien Hue (81.4 percent) and Quang Nam (81.2 percent)./.

Reference exchange rate up VND4 on December 1

The State Bank of Vietnam set the daily reference exchange rate at 23,143 VND/USD on December 1, up 4 VND from the previous day.

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,827 VND/USD and the floor rate 22,440 VND/USD.

The opening-hour rate at commercial banks saw increases.

At 8:30am, BIDV listed the buying rate at 22,580 VND/USD, down 15 VND, and the selling rate at 22,780 VND/USD, up 25 VND from November 30.

Meanwhile, Vietcombank kept both rates unchanged, listing the buying rate at 22,560 VND/USD and the selling rate at 22,790 VND/USD./. 

There remains large room for exports to US

The US remains a promising market of Vietnam and there remained large room for more exports, Minister Counsellor Bui Huy Son of the Vietnam Trade Office in the US told a consultation session on export to the US held via conference on November 30.

Son said the US is importing more Vietnamese farm produce, food and wooden furniture. Between 2021-2025, its demand for food and farm produce is forecast to keep rising.

In the remaining months of this year, the prospect of exporting wooden furniture to the US is bright on the back of growing shopping demand during holidays, he said.

Deputy Director of the Ministry of Industry and Trade’s Vietnam Trade Promotion Agency Le Hoang Tai said the US economy is recovering strongly with a gross domestic product growth of 4.9 percent in the third quarter this year. Despite the pandemic, two-way trade between Vietnam and the US is about to hit 100 billion USD in 2021.

As online shopping trend is becoming popular, several opinions suggested tapping major e-commerce sites such as Amazon to introduce products. Therefore, firms need to make difference via design or marketing strategies.

In order to help Vietnamese goods successfully enter the US market, they were advised to ensure the origin of materials and step up trade promotion activities.

Experts instructed them how to set up a distribution system, accelerate the use of advanced technologies and actively link up with Vietnamese business associations in US states./.

Webinar on multilateral approach to circular economy

A webinar on multilateral approach – the success key to the circular economy was held on November 30.

The event was co-hosted by the Asian Development Bank (ADB), the Ministry of Natural Resources and Environment (MONRE)’s Vietnam Environment Administration in collaboration with the Norwegian Embassy in Hanoi and Innovation Norway.

Recently, the MONRE and the United Nations Development Programme (UNDP) announced the establishment of the Vietnam National Circular Economy Network to raise awareness and capacity of all stakeholders, including governmental agencies, businesses, civil social organisations and scholars.

At the 26th United Nations Climate Change Conference of the Parties (COP26), Vietnam signed the Global Coal to Clean Power Transition Statement. Vietnamese Prime Minister Pham Minh Chinh also affirmed Vietnam's commitment to reduce greenhouse gas emissions to zero by 2050./.

Binh Duong province calls for investment from Japan

The People’s Committee of southern Binh Duong province held an online conference on November 30 to call for investment from Japan, attracting representatives of about 100 Japanese enterprises.

Speaking at the event, Permanent Vice Chairman of the provincial People’s Committee Mai Hung Dung said by the end of October, Japan had invested in over 4,700 projects worth 64 billion USD in Vietnam, including 328 projects valued at 5.77 billion USD in Binh Duong alone.

So far, over 90 percent of local firms have resumed their operations while all residents aged above 18 have been vaccinated against COVID-19, Dung said.

He added that Binh Duong is focusing on building a smart city and a science and technology industrial park. In the next period, the province will continue investing in infrastructure, especially major roads connecting with airports and seaports to save time and costs.

According to the official, Binh Duong is also stepping up digital transformation and working to build 1 million affordable houses for workers during 2022-2025.

Chief Representative of the Japan External Trade Organisation (JETRO) in Ho Chi Minh City Shinji Hirai spoke highly of Binh Duong’s investment environment, especially its advantages in terms of workforce, geographical location and infrastructure.

Japanese enterprises participating in the event also discussed the province’s measures against the pandemic in the near future.

Dung said local leaders always offer all possible support for foreign investors, including those from Japan./.

People-orientated solutions needed in future industrial parks

The disruption caused by the pandemic to production in industrial parks (IPs) and export processing zones (EPZs) is leading some to suggest a radical overhaul in the way in which these areas operate in the future.

Experts said the practical application of more people-orientated models of work will help factories in IPs and EPZs across the country, enhancing productivity competitiveness, saving costs and protecting the environment.

Hoang Quang Phong, Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), quoted data from the Ministry of Planning and Investment (MPI) when saying: “Vietnam has 575 IPs and EPZs in 61 provinces and cities.”

Phong added that they are home to thousands of local and international businesses from 122 countries and territories around the world.

However, many of these bases lack social infrastructure meaning they are failing to meet the needs of workers and the development of businesses.

Phong said: “Most industrial parks mainly focus on building and developing infrastructure for production and focusing on profits, focussing on economic benefits without paying due attention to the development of social infrastructure for workers.”

He mentioned: “While workers have not yet settled down, it could affect the quality of labour and the economic, production and business development on the whole.”

As an example of how settling down could help, Long Hau IP in Long An province was highlighted as one of the top enterprises in Asia for its people-focused model.

Tran Hong Son, General Director of Long Hau JSC, told Vietnam News: “The application of a customer-oriented approach has made Long Hau one of the few IPs in the country that is highly appreciated by prestigious domestic and foreign organisations for business performance.”

Next to HCM City and connecting other provinces along the National Highway 50, the 500 ha IP in Long Hau commune does not follow the traditional IP model of other factories, but built itself as a close circle encompassing all the necessary infrastructure.

The IP includes a customs office, a standard wastewater treatment plant, a fire-fighting station, police station, service centre, polyclinic, kindergarten, convenience supermarket and a residential area with a capacity of more than 6,000 people.

The IP is home to 200 domestic and international firms, many of which have their headquarters and factories at the IP.

Son added, “We spent 33 per cent of the land fund to build public works as we want to make everything done in our IP.”

Son said that they provided accommodation for workers, helping them to contribute to the success of the firm. During the pandemic, the isolated accommodation helped reduce the risk of the virus spreading to the community.

With such facilities, Long Hau IP is ready to offer favourable conditions to welcome a wave of new investment, production and business transformation of domestic and foreign enterprises to Long An.

On November 25 the IP launched a conference with their Korean partners, inviting them to stay with its IP in Da Nang as the production hub of Vietnam.

As another example, late last year, Nam Cau Kien IP in Hai Phong City opened the so-called ‘Kyousei-no-niwa' Garden, a Japanese garden that covers 30,000 sq.m, using water directly treated from a wastewater treatment plant in the park.

The IP not only produces commodities but has all the typical features of an eco-park. Its production chains are circular from input to output through reuse, refurbishment and recycling of solid wastes and wastewater.

While experts said such facilities have met the basic requirements of a circular economy, which keeps products and materials in use for as long as possible to get the maximum value, chairman of the IP, Phan Hong Diep, said the IP model aimed at creating a symbiotic association between the economy, environment and society to achieve the final goal of an increase in sustainable natural resources flows.

In the future, the Ministry of Construction (MoC) said it would coordinate with the relevant ministries and branches to study and potentially amend the Housing Law 2014 on the investment and construction of housing for workers in IPs and EZPs. Any amendments will be submitted to the National Assembly.

Ha Quang Hung, Deputy Director of the Department of Housing and Real Estate Market Management, told local media: “The investment in social housing development, especially housing for workers in IPs, is a necessary solution to restore production and economy after the pandemic.”

In addition, the MoC proposed that the provincial People's Committee must arrange accommodation for at least 50 percent of workers in IPs.

The Government of Vietnam considers the construction and development of industrial parks and economic zones a major policy to encourage socio-economic development. Recently, several regulations on IPs and EZs have been issued, amended and supplemented to improve the operational efficiency of these real estate facilities.

Decree No. 82 in 2018, on the management of IPs and EZ, has created a relatively complete legal basis to support enterprises in building and maintaining new real estate projects.

The National Assembly has also adopted the national land-use master plan for 2021-2030, with a vision to 2050, and a five-year land-use plan for 2021-2025. By 2030, the total land area of industrial property will rise by an additional 120,000ha. In 2021-2025, the designated land area for industrial real estate will increase by 62,000ha./.

Seeking solutions to improve cooperative economic efficiency

The key role of collectives in Vietnam's socialist-orientated market economy has been reinforced through the success of cooperatives up and down the country, though their further potential remains untapped.

The development of cooperatives was a key target of localities. In order to promote the local economy and overcome the ineffective operations of the current cooperatives, provinces focused on training workforce, mobilising financial sources and fostering administrative qualifications and management methods.

According to a report by the Vietnam Cooperative Alliance, by June 2021 there were over 26,000 cooperatives nationwide, of which more than 17,000 were agricultural cooperatives, over 7,000 were non-agricultural cooperatives and 1,100 were people's credit fund cooperatives with over 6.8 million members, creating jobs for over 2.4 million employees.

It is clear that the cooperatives have been participating in the One Commune, One Product (OCOP) programme, a national programme for Hunger Eradication and Poverty Reduction and the Programme of New Rural Development.

Many provinces have seen progress in the expansion of cooperatives.

Currently, Binh Thuan province has 201 cooperatives engaging in all economic sectors and fields with total capital of over 3 trillion VND (132 million USD) and over 50,000 members.

In the agricultural production field, more than 30 cooperatives are participating in linkage chains to organise production associated with the value chains, to create a larger volume of quality agricultural products and higher economic value.

Many products of these cooperatives have been recognised by the OCOP programme as provincial-level three and four-star products.

In particular, 25 people's credit funds, which are present in all communes and districts in the province, have played important role in actively supporting cooperative members in production and business activities, as well as contributing to the government to repel black credits.

However, Ho Cong Duong, Chairman of Binh Thuan province’s Cooperative Alliance, said that most cooperatives are small-scale with little capital and outdated equipment, and have not yet built a sustainable basis for operations.

Some cooperatives had not yet connected their members with the market, Duong said.

This leads to a very loose bond between the members and cooperatives, he said.

These are inherent limitations that the alliance had noticed and was looking for solutions to remove the shortcomings, Duong added.

Meanwhile, Nguyen Thi Minh Ngoc, Director of the Supporting Centre of Cooperative Alliance of Lam Dong province, said that product consumption was one of the most important service activities of the cooperatives in order to help members overcome the situation of 'good harvest, low prices', while alliances between cooperatives play an important role in supporting product consumption.

“The coordination between the departments, agencies, the alliance and the cooperatives is very important in bringing efficiency in the promotion, advertisement and consumption of products,” Ngoc said.

“In addition, the cooperatives and their members needed to realise the importance of linking members together and organising production and consumption of the value chain as well as helping members produce with co-operatives’ development drive,” she said.

According to Ngọc, the alliance should further promote cooperatives’ products via fairs, seminars and exhibitions.

Vo Thi Anh Hong, Chairwoman of the Cooperative Alliance of Tay Ninh province, said that the alliance needed to take advantage of capital from the National Target Programme on New-style Rural Area Building to coordinate with relevant agencies to build a new-style cooperative that promoted production associating with value chains and high technology application.

According to Thich Duc Thien, National Assembly (NA) delegate of Dien Bien province, for Vietnam's economy, in terms of size and the relationship between the production groups, the development of cooperatives is vital to solving the basic development issues of rural areas.

Developing the local economy and cooperatives is an effective lever to assisting the central economy, including the state's key economic groups, Thien said.

This was even more evident during the recent COVID-19 pandemic, he said.

“When the cooperatives paid attention to developing, they create a driving force for the country’s agriculture, including the development of organic agriculture, OCOP programme and hi-tech agriculture,” the NA delegate said.

The cooperative model is very suitable in rural areas and will promote the efforts and creativity of farming households, who are the owners of agricultural production activities.

These farming households will also receive effective support from cooperatives and thereby receive maximum support from the State via the National Target Programmes, Sustainable Poverty Reduction Programme, National Programme of New Rural Development and Socio-economic Development Programme in Ethnic Minority and Mountainous Areas, as well as being able to promote links with businesses and fully meet the requirements of international trade and economic integration.

However, there are also some shortcomings in developing cooperatives.

Most cooperatives operate on a small scale with little capital and poor management. This leads to weaknesses in setting up production and business strategies, especially in the period of international integration.

Therefore, fostering human and financial resources and updating management methods need support and investment from the State.

Nguyen Thanh Nam, an NA delegate of Phu Tho province, said that it is necessary to promote collective economic development with various forms of cooperation, though success should be built around cooperatives based on members' and collective ownership, and widely linking households to promote production and business to adapt to the new situation.

In order for the cooperatives to properly develop their role and promote the development of the household economy, the Government, both ministries and branches, should continue to pay attention to this area, including effectively implementing promulgated policies, especially those related to improving human resources for co-operatives, application of scientific and technology in production, investment, infrastructure development in agricultural production, and sustainable product consumption, Nam said./.

Forum seeks solutions to revive Vietnam’s tourism

An open forum aimed at seeking solutions to sustainably recover Vietnam’s tourism was held in Hanoi and virtually connected to 26 localities on November 30.

In his opening remarks, Vice Chairman of the Vietnam Tourism Association (VITA) Vu The Binh believed that amid complicated developments of the COVID-19 pandemic, safety has become a top priority in all tourism activities, which requires stakeholders to adjust for adaptation and sustainable development.

Nguyen Trung Khanh, Director of the Vietnam National Administration of Tourism (VNAT) under the Ministry of Culture, Sports and Tourism, said that the VNAT will closely work with localities and destinations which stand ready to welcome tourists back like Phu Quoc of Kien Giang and Ha Long of Quang Ninh, so as to serve foreign visitors while meeting requirements in COVID-19 prevention and control and safety standards.

At the event, participants delivered numerous reports on the COVID-19’s impacts on tourism, together with support policies for workers in companies in the field. They proposed solutions to sustainably recover the sector, including the building of new products in the new normal.

This month, three Vietnamese localities opened their doors to welcome 978 foreign tourists back, showing efforts made by the tourism sector at large and the travel business community in particular in reviving the industry./.

Singaporean firms share experience in developing factory workers’ housing

Singaporean experts have shared experience in developing workers’ accommodations in industrial parks with Vietnam during a recent meeting with officials from the Ministry of Construction.

Speaking at the event, Minister of Construction Nguyen Thanh Nghi said his ministry pays particular attention to building housing for specialists and workers at industrial parks.

The development of integrated urban-industrial models amid the COVID-19 pandemic must be done without disruptions to production and supply chains as well as workers’ living quality, he said.

Siah Gim Lim, Senior Vice President of Singaporean consultancy company Surbana Jurong, said the island country is piloting the transformation of existing industrial parks into worth-living industrial cities which comprise not only hi-tech industrial areas but also residential buildings, schools, office and commercial buildings and amusement parks, providing all kinds of services to residents.

A 4.0 industrial park integrated with residential and non-industrial zones would smooth the way for production and prevent supply chains from being disrupted, even if there are COVID-19 outbreaks.

Jason Poh, Chairman of Centra Group, said most workers’ housing projects in Singapore were built near production zones at industrial parks, offering all necessary technical, social infrastructure and urban services so any COVID-19 outbreaks can be quickly zoned off and contained without effecting workers’ life and production.

He suggested Vietnamese cities and provinces to corporate Singaporean experience in planning industrial parks amid complicated developments of the COVID-19 pandemic./.

Vietnam’s export turnover projected to hit 535 billion USD by 2030

Vietnam’s export turnover is projected to record an annual average growth of 7 percent per year, hitting 535 billion USD by 2030, according to a new research by Standard Chartered issued on November 30.

The "Future of Trade 2030: Trends and markets to watch" also forecasts that the global exports will almost double from 17.4 trillion USD to 29.7 trillion USD over the next decade.

Vietnam is considered an important market contributing to the growth of the global trade, it said.

It also found that 41 percent of global businesses currently operate or plan to invest in Vietnam within the next five to 10 years. This shows that Vietnam will be one of the important motivations of global trade growth in the next 10 years.

The US and China will continue to be Vietnam's largest export markets, respectively accounting for 26 percent and 19 percent of the Southeast Asian country’s total export turnover by 2030.

According to the study, Vietnam is an emerging manufacturing powerhouse with expanding international trading relationships.

According to Michele Wee, CEO of Standard Chartered Bank Vietnam, Vietnam’s increasing integration into the world economy through various free trade agreements (FTAs) such as the EU – Vietnam FTA and the UK – Vietnam brings Vietnam many advantages and allows it to expand its exports, move up value chains across sectors as well as create skilled jobs.

The report, commissioned by Standard Chartered and prepared by PwC Singapore, is based on an analysis of historical trade data and projections until 2030, as well as insights from a survey of more than 500 senior leaders in global companies./.

Vietnam National Pavillion to be set up on Chinese JD.com platform

Once operational, the Vietnam National Pavillion on Chinese e-commerce platform JD.com will help Vietnamese products to be distributed directly to consumers in the importing countries, said an official.

Dang Hoang Hai, head of the Vietnam E-commerce and Digital Economy Agency (VEDEA) under the Ministry of Industry and Trade, said at a press briefing in Hanoi on November 30 that this is the first Vietnamese pavilion on an international e-commerce platform which enables Vietnamese firms to provide their products to customers directly through trans-border e-commerce method.

With the support of JD.com, Vietnamese products will be distributed in the Chinese market through an official and prestigious channel, he said.

Hai said that the VEDEA will coordinate with domestic and foreign partners, including JD.com, Vinanutrifood, Viettel Post, VP Bank and Visa to set up the Vietnam National Pavilion on the JD.com e-commerce platform.

The agency will help connect businesses and give them guidelines on distributing products on the pavilion in line with regulations of the platform and the law of the importing country. At the same time, it will also seek resources from partners to promote Vietnamese products and support local firms to smoothly distribute their products on the JD e-commerce platform, thus increasing exports to China.

Hai held that trans-border e-commerce will be the fastest channel to directly connect businesses and consumers, supporting the traditional distribution channel, and reducing cost for enterprises.

Meanwhile, Bui Huy Hoang, Vice Director of the IT and Digital Technology Centre under the agency said that despite negative impacts of COVID-19 in 2020, Vietnam still saw strong growth in e-commerce activities and became one of the fastest growing e-commerce markets in the Southeast Asian region.

The Vietnam E-commerce White Book clarified that last year, the local e-commerce market expanded 18 percent to 11.8 billion USD, making Vietnam the only Southeast Asian country to enjoy two-digit growth in the field.

Notably, the global revenue from e-commerce activities between businesses and consumers is predicted to hit 2.88 trillion USD in 2023, noted Hoang, stressing that trans-border e-commerce will be a sharp tool for businesses to expand markets./.

Vietnam-US direct flights boost economy, cultural exchange: Diplomat

The launch of a direct air route between Vietnam and the US is an important milestone reflecting the strong growth of the bilateral relations and helping boost Vietnam’s economy and cultural exchange, said Vietnamese Deputy Consul General in San Francisco Hoang Huu Anh.

The Vietnam-US air link was very promising, Anh told Vietnam News Agency following the launch of national flag carrier Vietnam Airlines’ first direct service between the two countries at San Francisco International Airport on November 29 (Hanoi time). The event also marked the first time a Vietnamese airline had operated a direct flight to the US.

Some 1.4 million people travelled between Vietnam and the US in 2019, with an annual growth of 8 percent from 2017 – 2019, he cited.

Non-stop flights will facilitate travel by the two countries' people amid growing demand, the diplomat said, adding there has been an increase in businesses wishing to travel between the two countries to seek opportunities in trade and investment, not to mention a large number of Vietnamese students and expats living in the US as well as American tourists interested in visiting Vietnam after COVID-19 restrictions are eased.

He pointed out that in addition to San Francisco, Los Angeles and Seattle are also very potential destinations to set up transit points for the direct service in the US as they are home to large Vietnamese communities.

Vietnam Airlines is operating two regular direct flights each week between HCM City and San Francisco and plans to increase the frequency to seven flights a week once the pandemic is under control.

All flights between Vietnam and the US are carried out by Vietnam Airlines' most modern wide-body fleet, Boeing 787-9 Dreamliner.

Vietnam's aviation industry and Vietnam Airlines have prepared for 20 years to open a regular air route to the US. The scheme officially completed on November 4 this year after the national flag carrier officially received a permit from the US Federal Aviation Administration (FAA) to operate non-stop commercial flight service between the two countries./.

Banks allowed to extend credit growth quota

The State Bank of Vietnam (SBV) has extended the credit growth limits for the third time this year to some commercial banks to meet rising capital demands at year-end.

According to a report from the Bank for Investment and Development of Vietnam’s Securities Company (BSC), 11 banks have been given permission to increase their credit growth limit.

TPBank has the highest rising rate of 6 percent, from 17.4 percent to 23.4 percent, thanks to its strong capital adequacy ratio (CAR) according to Basel II standards and diverse investment portfolio.

In addition to TPBank, a number of other banks were allowed to expand their credit room by roughly 4-5 percent, including Techcombank (from 17.1 percent to 22.1 percent), MSB (from 16 percent to 22 percent) and MB (from 15 percent to 21 percent).

Credit room of VIB and VPBank was also expanded from 14.1 percent to 19.1 percent, and from 12.1 percent to 17.1 percent, respectively.

The SBV stated in its monetary policy management solutions for the last three months of the year that it will periodically assess and modify credit growth objectives for each bank based on its operational status, financial capacity and stability of credit expansion.

According to Nguyen Tuan Anh, head of the SBV’s Credit Department, credit growth rates were granted based on the particulars of each bank.

Moreover, banks that do not focus on hazardous and vulnerable businesses, with favourable interest rates are gaining the upper hand in terms of credit quota.

As a result, credit institutions that lower lending interest rates to support affected clients will be given priority consideration.

At the beginning of 2021, the SBV outlined three credit growth scenarios for the year.

The first scenario posits widespread COVID-19 vaccine coverage and the containment of the pandemic. This could see credit increases of 12-13 percent, perhaps even 14 percent.

In the second scenario, if the pandemic lasts until June, social distancing measures are still in place and vaccination rollout is prolonged, the rate could stand at 10-12 percent.

The third scenario suggests that credit growth could be at 7-8 percent if the pandemic lasts through the end of the year.

According to Anh, events so far are most similar to the third scenario as Vietnam suffers from the fourth outbreak of the COVID-19 pandemic.

However, credit growth in the first half of the year was far beyond the SBV’s expectation thanks to modest loan interest rates. As of June 21, the growth rate was 5.47 percent, considerably higher than the 2.45 percent over the same period last year.

The Asia Commercial Bank’s Securities Company forecast credit growth this year to be at 14 percent, equivalent to the highest rate in the best-case scenario, noting that it may even reach 15-20 percent among private banks.

ACB expects that credit demand will stay strong and credit growth will remain high in the second half of 2021, especially during the fourth quarter./.

Seminar seeks ways to enhance efficiency of guest workers in RoK

A seminar aimed at improving the effectiveness of management activities and supporting labourers in the fishing industry was organised by the Labour Management Board and the Vietnamese Embassy in the Republic of Korea (RoK) on November 29.

Attending the seminar were representatives of the Vietnamese Embassy in the RoK, the Labour Management Board (LMB) as well as those of the Korea Fisheries Association, businesses and the Korea Support Centre for Foreign Workers.

According to Ta Thi Thanh Thuy, head of the LMB, currently, there are 17 Vietnamese enterprises engaged in providing crew members for fishing boats in RoK. The total number of Vietnamese labourers working in the RoK under E-10 visa is 8,602.

Vietnamese crew members are highly appreciated by RoK ship owners for their skills and ability. However, enterprises believed that the seafarer labour market is facing strong competition from other countries. Many ship owners are ready to accept those from some countries due to the poor discipline of Vietnamese crew members.

Limitations of language are also a reason for differences in the work and life of the crew members.

Participants at the seminar pointed out that the situation of workers in the fishing industry breaking their employment contracts to work illegally needs to be solved. It is blamed on a big gap between the income of contract workers and illegal ones.

According to RoK’s C&P Company, it is very important to coordinate with Vietnamese companies in the recruitment process. Seafarers have not been properly given orientations about the characteristics of each profession operating at sea, so they cannot choose the one that is suitable for their physical strength, leading to dissatisfaction after entering the country, it said, suggesting that crew members should be equipped with the essential knowledge to avoid any contradiction that might arise between ship owners and crew members.

Kim Jae Man from Korea Fisheries Association proposed that relevant Vietnamese agency, as well as labour supply enterprises, strengthen orientation education for workers to reduce the rate of illegal labourers./.

Economic forum to help Gov’t develop recovery measures

The Vietnam Economic Forum 2021 is scheduled to take place on December 5 to help the Government design a package of fiscal and monetary solutions to shore up the economy.

Chairman of the National Assembly (NA) Vuong Dinh Hue presided over a meeting in Hanoi on November 30 with standing members of the NA’s Committee for Economic Affairs and a group of experts and researchers on financial and monetary policies assisting the implementation of the socio-economic recovery and development programme.

He said the forum will be organised by the NA’s Committee for Economic Affairs, the Party Central Committee’s Economic Commission, and the Vietnam Academy of Social Sciences.

The event will take place both in person and via videoconference and gather domestic and foreign scholars, experts, and researchers. It aims to help clarify scientific and practical grounds to help the Government design a package of fiscal and monetary solutions.

Hue said it is necessary to have in-depth assessment since the global economy has changed constantly amid the COVID-19 pandemic’s impacts; as well as to identify the extent of damage and recovery capacity of the economy, determine sectors needing more support to recover and develop, and find out potential areas for accelerating recovery to fuel growth of the economy.

Short-term solutions also need to take into account long-term issues, macro-economic stability, and sustainable development, the Chairman said, adding that the policies helping with economic recovery in the short term should not cause macro-economic instability in the long term, according to the top legislator.

The Government has built a plan to develop fiscal and monetary mechanisms and policies for assisting the implementation of the general socio-economic recovery and development programme./.

HCM City CPI down 0.17 percent in November

Consumer price index (CPI) of Ho Chi Minh City in November decreased 0.17 percent over October, but rose 1.83 percent compared to the same time last year.

According to the city Statistics Office, compared to the previous month, downturn was seen in four goods groups, including foodstuffs and catering services (1.41 percent), post and telecommunications services (0.09 percent), culture, entertainment and travel (0.03 percent) and education (0.03 percent). Other groups saw price hikes of between 1.01 percent and 3.1 percent.

Due to abundant supply, the prices of a number of foodstuffs and food fell considerably, led by fresh aquatic products at 4.93 percent, meat at 4.85 percent, and vegetables 4.84 percent.

However, according to the city Statistics Office, despite the drop, the prices of food and foodstuffs in the city remained high compared to the period before COVID-19 broke out.

Meanwhile, the prices of housing, water and electricity supply services and construction materials increased 1.01 percent over October after support policies in water and power prices end.

Similarly, transportation prices also rose 3.1 percent month on month, mostly because of 6.94 percent increase in fuel prices.

In November, gold price rose 3.20 percent compared to October and 5.28 percent year on year, while USD price dropped 0.14 percent and 0.26 percent respectively./.

Agricultural sector forecast to exceed annual export target for 2021

The Ministry of Agriculture and Rural Development (MARD) expects to exceed its annual export target for agricultural, forest and fishery products, thanks to the restoration of production and business after the COVID-19 outbreak.

“This year, MARD has predicted that the export turnover of agricultural, forest and fishery products to reach over 44 billion USD, exceeding its initial target of 42 billion USD," said Phung Duc Tien, Deputy Minister of Agriculture and Rural Development.

According to the Minister of Agriculture and Rural Development, Le Minh Hoan, there will be many export opportunities for local agricultural products in the fourth quarter of 2021, especially over Christmas and New Year of 2022 and the Lunar New Year.

The European market will be a big destination for Vietnamese agricultural products and strong trade with the Thai, South American, African markets is expected to continue, he said.

"I hope that the Government’s existing policies, along with the initiatives of localities, will encourage exporting enterprises to restore their trading activities," Hoan said.

To seize opportunities to recovery and increase exports of agricultural, forestry and fishery products by this year-end, MARD will coordinate with ministries and sectors to implement trade promotion programmes that focus on opening new export markets, according to Nguyen Quoc Toan, Director of the Department of Agricultural Product Processing and Market Development.

They will also provide businesses with market information and regulations on goods that are traded between Vietnam and China, and quotas for local agricultural products under the EVFTA and UKVFTA agreements.

This year exports of agricultural, forestry and fishery products have faced many challenges caused by the COVID-19 pandemic. In particular, the fourth outbreak that began in late April led to disruption across the economy, impacting farm produce supply chains, production and export activities nationwide, according to MARD.

The agriculture industry has maintained export growth for many products in both quantity and value. In the first ten months of this year, the export value of agricultural, forestry and fishery products was estimated at 38.8 billion USD, up 13.1 percent over the same period in 2020, the ministry said.

Nudging closer to the target of 44 billion USD in export value for this whole year, the sector’s export turnover reached at least 5.2 billion USD in the last two months, according to the ministry.

This is a great success in the context of the complicated development of the pandemic that has disrupted the supply chains of agricultural raw products, directly affecting the processing and export of agricultural, forestry and aquatic products.

The disruption in the supply chain of agricultural products is due to localities implementing the Government’s regulations on prevention and control of the COVID-19 in different ways, according to Tien.

He also believes that the Government's goal of recovering economic development may face some difficulties if the pandemic continues to reemerge in new localities.

Agricultural development faces challenges from other areas too; crop and animals diseases, climate change, natural disasters, drought and saltwater intrusion also continue to negatively affect production.

Other problems include the slow recovery of production chains, a lack of labour and the congestion in transporting agricultural, forestry and fishery products. Many processing enterprises are also short of the capital needed to continue production and business. Others have not yet met the material conditions to maintain production.

Higher freight along some routes and an increase in the price of animal feed and fertiliser have also created more difficulties for enterprises.

MARD plans to help restore agricultural development through the Government policies that were issued after the COVID-19 outbreak. MARD and the Ministry of Industry and Trade are coordinating to reduce inventories of agricultural products and ensure supply for the export agricultural products. They will also have solutions to reduce the price of input materials that have increased recently.

“The higher input price in Vietnam is caused by an increase in prices around the world, due to the COVID-19 pandemic. Agricultural input in the country depends on imports, which accounts for 70-80 percent of demand. If imports are interrupted due to transportation difficulties, this will lead to a shortage of input material on the domestic market,” Tien remarked.

The two ministries have recommended that the Government produce policies that encourage the domestic production of input materials and introduce a mechanism that cuts the volume of export commodities that could be used for raw material production in the future.

It has also been suggested that farmers be more conservative with their input materials usage, as often they use more input materials than is needed. If farmers can adapt to using only what they need, it could reduce usage by up to 40 percent.

In addition, to restore supply chains, the agriculture sector has proposed that the Ministry of Health increase the number of vaccines available to industry workers, as farming products must be transported across many regions.

According to Tien: “In the future, Vietnam’s agriculture sector must ensure seeds and input material as well diversifying markets and products. The sector also needs to build raw material areas and supply chains based on enterprises and cooperatives, meeting standards of export markets."

Dinh Cao Khue, Chairman of the Dong Giao Foodstuff Export Joint Stock Company (DOVECO), an enterprise that exports agricultural products and fruits to 55 countries, said that his company has maintained exports during the fourth outbreak of COVID-19.

“We have faced many difficulties, especially in purchasing and transporting raw materials as many localities have applied social distancing measures to control the pandemic, according to Directive 16,” said Khue.

At the same time, the cost of exporting to the US and European markets continues to rise compared to before the pandemic, which is creating financial pressure on exporting enterprises.

Despite this, Nguyen Dinh Tung, General Director of Vina T&T Group, argues that: “the last months of the year are an opportunity for fruit export, as fruit demand is highest in those months for festivals at the end of the year and the early next year. We hope to increase the volume of exports because of increasing orders from partners.”

Ngo Tuong Vy, Deputy Director of Chánh Thu Fruit Import-Export Co, Ltd, said that to increase capacity to export key fruit products, her company will purchase more mangoes, durian and jackfruit in Dong Thap. These are key export products; mangoes for the US and Australia, jackfruit for China and durian for China, Japan and Australia.

To help meet demand, Vy's company will support cooperatives in technical consulting, the building of raw material regions and the establishment of production and supply chains to create a stable supply of exports, she said.

Nguyen Hai Nam, Chairman of the Vietnam Pepper Association, said the pepper industry has quickly restored production and business after the COVID-19 outbreak. They expect to gain growth in both quantity and value of pepper exports this year due to convenience in transporting raw materials./.

Binh Duong province calls for investment from Japan

The People’s Committee of southern Binh Duong province held an online conference on November 30 to call for investment from Japan, attracting representatives of about 100 Japanese enterprises.

Permanent Vice Chairman of the provincial People’s Committee Mai Hung Dung said by the end of October, Japan had invested in over 4,700 projects worth US$64 billion in Vietnam, including 328 projects valued at US$5.77 billion in Binh Duong alone.

So far, over 90% of local firms have resumed their operations while all residents aged above 18 have been vaccinated against COVID-19, Dung said.

He added that Binh Duong is focusing on building a smart city and a science and technology industrial park. In the next period, the province will continue investing in infrastructure, especially major roads connecting with airports and seaports to save time and costs.

According to the official, Binh Duong is also stepping up digital transformation and working to build 1 million affordable houses for workers during 2022-2025.

Chief Representative of the Japan External Trade Organisation (JETRO) in Ho Chi Minh City Shinji Hirai spoke highly of Binh Duong’s investment environment, especially its advantages in terms of workforce, geographical location and infrastructure.

Japanese enterprises participating in the event also discussed the province’s measures against the pandemic in the near future.

Dung said local leaders always offer all possible support for foreign investors, including those from Japan.

Vietnam eyes green and sustainable agriculture

Minister of Agriculture and Rural Development Le Minh Hoan and World Bank Country Director for Vietnam Carolyn Turk co-chaired a high-level policy dialogue on low-carbon green agricultural transformation and emissions reduction on November 30.

This is part of a series of policy dialogues and communication events on green, low-carbon and sustainable agriculture development implemented by the Ministry of Agriculture and Rural Development (MARD) in collaboration with the WB to orient the vision of Vietnam’s agricultural sector to 2050 towards green, low carbon and sustainable development.

In his remarks at the event, Minister Hoan said the ministry is drafting the Sustainable Agriculture and Rural Development Strategy to 2030 with a vision to 2050, aiming to restructure the agriculture sector, develop rural economy linking with new-style rural development.

The strategy is designed around three pillars: “ecological agriculture”, “modern countryside”, and “smart farmers”.

The minister underlined the necessity for the sector to have a far-sighted vision and bold actions in order to speed up green and sustainable agricultural transformation, saying that changes in agricultural development model are needed for ensuring sustainability, competitiveness and resilience in the face of challenges.

Minister Hoan stressed that with new thinking, Vietnam can aspire to become a country of ecological and carbon-neutral agriculture instead of just a food production powerhouse.

However, in order to make breakthrough changes, the agricultural industry cannot do it alone. It needs companionship and support of relevant ministries, sectors and localities, as well as organizations and individuals at home and abroad, he said.

WB Country Director for Vietnam Carolyn Turk said agriculture is one of the main contributors to climate change when it causes greenhouse gas emissions (GHG emissions). GHG emissions are forecast to reach 120 million tonnes of CO2 by 2030, up to half of which will come from the rice industry.

Vietnam has made a strong commitment at COP26 to achieve net zero emissions by 2050, reduce methane emissions by 30 percent by 2030, she said, noting that this is a challenge for Vietnam's rice industry.

WB will continue to cooperate, provide technical assistance, and expand investment activities with the MARD to help Vietnam move towards a brighter future for its agricultural sector, she affirmed.

Martien Van Nieuwkoop, Global Director for the Agriculture and Food Global Practice in the WB's Sustainable Development Practice Group said that Vietnam needs to change public spending in agriculture, create appropriate incentive mechanisms, and re-evaluate public investment in agriculture.

Attention should be paid to changing the structure of land ownership to solve the problem of small-scale production, which directly affects the development speed of the agricultural sector, he said, adding that it is necessary to have public-private partnerships to make proper investment decisions for agriculture./.

Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan

VIETNAM BUSINESS NEWS NOVEMBER 30

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