Vietnam Airlines began selling tickets on December 26 for commercial flights on the Vietnam-Japan route which is scheduled to take off on January 5.

The price of a one-way ticket will start from VND9 million, equivalent to US$391.3, per trip, Vietnam Airlines announced.

Accordingly, flights running between Hanoi and Narita will take off on every Thursday and Sunday, whilst flights from Ho Chi Minh City to Narita and vice versa will be held every Saturday.

Japan announced that two of their airlines, Japan Airlines and All Nippon Airways (ANA), will be operating flights to Vietnam and back.

A shrimp farm in Tran De district, the Mekong Delta province of Soc Trang (Photo: VNA)

Aquaculture output grows 4.17 percent to 4.75 million tonnes

Vietnam's aquaculture output is estimated at 4.75 million tonnes this year, rising by some 4.17 percent from 2020, according to the Directorate of Fisheries under the Ministry of Agriculture and Rural Development (MARD).

Of which, the output of tra fish, a major foreign currency earner, stood at 1.5 million tonnes, equivalent to last year's figure.

The directorate predicted that the COVID-19 pandemic may continue developing complicatedly in 2022, directly affecting logistics and subsequently production and business activities of the fisheries sector. Processing firms may face material shortages in the first quarter of next year.

Given this, MARD will order localities to press on with farming so as to ensure sufficient supply of materials for processing in 2022, the directorate added.

This year’s aquatic product exports are estimated at 8.89 billion USD, posting a year-on-year increase of 5.7 percent, data from the Directorate of Fisheries show.

Reference exchange rate down VND19 on Monday

The State Bank of Vietnam set the daily reference exchange rate at 23,174 VND/USD on December 27, down 19 VND from the last working day of previous week (December 24).

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,869 VND/USD and the floor rate 22,479 VND/USD.

Ninh Thuan approves projects to call for investment by 2025

The People's Committee of Ninh Thuan province has approved a list of 67 key projects to call for investment in the period 2021-25.

According to the Decision 633/QD-UBND approved by Chairman of the provincial People's Committee Tran Quoc Nam, those projects are in the fields of developing residential areas, urban areas and tourism.

They include 17 projects in Phan Rang - Thap Cham City, 13 projects in Ninh Hai district, 13 projects in Thuan Nam district, nine projects in Thuan Bac district, seven projects in Ninh Son district, six projects in Bac Ai district and two projects in Ninh Phuoc district.

In this list, there are many projects with a total investment of over 1 trillion VND such as Dam Ca Na new urban area with an investment of about 3.5 trillion VND; a new urban area along Dinh River in Phan Rang - Thap Cham city with capital of 3 trillion VND; and a new urban area on the east bank of Ong River with an investment of 2 trillion VND.

HSBC optimistic about Vietnam’s economy

Vietnam’s economy should get back to GDP growth of 6.8 per cent next year, which will be driven by a return of strong foreign direct investment into the market, mainly focusing on the manufacturing sector, according to HSBC Vietnam.

Vietnam’s economy should get back to GDP growth of 6.8 per cent next year, which will be driven by a return of strong foreign direct investment into the market, mainly focusing on the manufacturing sector, according to HSBC Vietnam.

HSBC Vietnam said this would benefit Vietnam’s exports, especially as free trade agreements that have been signed over the past two years start to bear fruit.

The continued expansion of the middle class and in particular the rising affluent sector will lead to changes in consumption as Vietnamese people start spending more and more on leisure and travel.

Infrastructure roll-out will also continue to fuel economic activities especially in the renewable/green arena given the strong ambitions made by the Vietnamese Government following the recent 26th United Nations Climate Change Conference of the Parties in Glasgow, the UK. 

Vietnam’s exports to EU forecast to grow further in 2022

Vietnam's goods exports to the European Union (EU) market are expected to get brighter than in 2021 as Vietnamese businesses are better taking advantage of incentives of the EU-Vietnam Free Trade Agreement (EVFTA), according to trade experts.

They also said that after 2 years of the COVID-19 outbreak, both Vietnam and the EU are adapting better and better to the pandemic and speeding up the vaccination of basic and booster shots.

In particular, the Vietnam - EU economic and trade ties with a solid foundation from the EVFTA will enjoy many promising opportunities after the pandemic, thus bringing practical benefits to the business communities of both sides.

Thee EVFTA officially became effective on August 1, 2020, marking an important milestone during 30 years of cooperation and development between the two sides, and opening up a new promising stage for the bilateral comprehensive partnership.

Automobile sales enjoy growth at year’s end

Automobile sales in Vietnam posted a month-on-month increase of 30 percent and a year-on-year increase of 6 percent in November, announced the Vietnam Automobile Manufacturers’ Association (VAMA).

The figure is expected to grow in late 2021 and early next year.

The VAMA has announced that the total market sales of its member units reached 38,656 vehicles in the month. The sales of passenger, commercial and special-purpose vehicles all expanded by 40 percent, 8 percent and 39 percent, respectively, compared the previous month.

VAMA's member units had total sales of 257,390 vehicles in the first 11 months of this year, up 3 percent over the same period last year. 

Southern localities make efforts to diversify tourism products in ‘new normal’

The tourism sectors of southern provinces and cities are exerting efforts to reform and diversify products to attract visitors while ensuring safety in the ‘new normal’, as the 2022 New Year and traditional Tet (Lunar New Year) holidays approach.

Numerous travel companies and tourist destinations have resumed on-the-spot tours and multi-day ones to northwestern and central localities, together with those in Vietnam’s southwest coastal areas like Phu Quoc and Ha Tien of the Mekong Delta province of Kien Giang.

The tourism programmes have been carried out in a flexible manner in open space with preventive measures being in place.

In December, more than 1,200 tourists of 14 delegations registered to participate in Saigontourist’s MICE tourism programmes in Ha Long of the northern province of Quang Ninh; Da Nang and Quy Nhon of Binh Dinh in the central region; and Ben Tre, HCM City and Phu Quoc in the south.

Samsung plans to invest 850 mln USD in Vietnam subsidiary

Electronics giant Samsung has approved the spending of some 850 million USD for its unit in Vietnam to manufacture flip-chip ball grid arrays (FC-BGA), according to KBS News.

Electronics giant Samsung has approved the spending of some 850 million USD for its unit in Vietnam to manufacture flip-chip ball grid arrays (FC-BGA), according to KBS News.

FC-BGA is a highly-integrated package board used to connect a high-integration semiconductor chip to a main board.

The company will spend the investment in phases until 2023 to build a new FC-BGA production line.

Under the plan, the Vietnamese subsidiary will focus on producing FC-BGA while Samsung's factories in the Republic of Korea will specialise in technology development and high-end products.

Demand for traditional New Year goods starts to rise

Demand of goods in Ho Chi Minh City, the country’s biggest, is increasing gradually before the Lunar New Year holidays thanks to promotions and the greater diversity of products than last year.

Though there is more than a month to go for the year's biggest festival, many retail chains have started offering discounts already.

Products such as cosmetics, cleaning products, personal care and beauty products, and foods that can be stored for long without spoiling are sold at discounts now so that customers only need to buy fresh foods or ready-to-eat dishes before the holidays.

Other promotions such as offer of gifts, higher reward points than normal and gift vouchers are also regularly rolled out.

City authorities have urged businesses to ensure there is adequate supply and offer promotions for the festival while following pandemic prevention measures.

Vietjet welcomes first wide-body A330 aircraft

Vietjet welcomed the first wide-body aircraft A330 to its fleet at Ho Chi Minh City’s Tan Son Nhat Airport on December 25, a move for the budget carrier to expand its international flight network and optimise customers’ experience.

According to Vietjet, its A330 aircraft uses Trent 700, a high-bypass turbofan produced by Rolls-Royce, and offers 12 Business-class and 365 Economic-class seats.

Vietjet Air expects to reopen regular international flights starting January 1 next year.

Fuel prices pick up in latest review

The retail prices of oil and petrol were revised up starting from 3pm on December 25 after going down in the two consecutive reviews by the Ministry of Industry and Trade and the Ministry of Finance.

According to the ministries’ latest review, the retail price of E5 RON92 bio-fuel increased 470 VND to 22,550 VND (0.99 USD) per litre while that of RON95 was also up 490 VND to 23,290 VND per litre.

Kerosene is now sold at 16,510 VND per litre, up 190 VND, and diesel at 17,570 VND per litre, up 240 VND. Meanwhile, the price of mazut remained at 15,740 VND per kg.

The two ministries review fuel prices every 15 days to adjust the prices in accordance with fluctuations on the world market.

Promoting digital transformation seen as "vaccine" for economic recovery

Digital transformation can be regarded as a necessary "vaccine" that needs to be increasingly used in order to aid the economic recovery process in the near future to allow it to be faster and more sustainable than expected.

Coming off the back of 2021, a tumultuous year that has seen both bright spots and disruption for the national economy, agriculture and exports are contributory factors to creating momentum for economic recovery.

It must therefore be affirmed that digital transformation of all types can be viewed as a practical and effective solution to the situation, thereby contributing the most to this joint effort.

Fuel prices pick up in latest review

The retail prices of oil and petrol were revised up starting from 3pm on December 25 after going down in the two consecutive reviews by the Ministry of Industry and Trade and the Ministry of Finance.

According to the ministries’ latest review, the retail price of E5 RON92 bio-fuel increased VND470 to VND22,550 (US$0.99) per litre while that of RON95 was also up VND490 to VND23,290 per litre.

Kerosene is now sold at VND16,510 per litre, up VND190, and diesel at VND17,570 per litre, up VND240. Meanwhile, the price of mazut remained at VND15,740 per kg.

The two ministries review fuel prices every 15 days to adjust the prices in accordance with fluctuations on the world market.

VCCI: Banks should be allowed to lodge complaints against low credit ratings

In cases where banks disagree with the credit assessment of banking authorities, they should be allowed to ask for clarifications on the credit ratings assigned to them, according to the Vietnam Chamber of Commerce and Industry (VCCI) in response to a draft circular amending and supplementing credit rating assessments.

According to VCCI, credit scores are crucial to credit institutions because low-scores are more likely to be inspected and closely supervised by banking authorities. For this reason, banks should be allowed to file complaints when they disagree with the credit results, and the authorities have to respond to the complaints and clarify their assessments.

Thus far no regulations have been introduced to regulate complaints, settlement of complaints and time frames to respond to complaints in regard to credit ratings. Such regulations, if put in place, would add more transparency to assessments and incur no additional administrative costs.

The VCCI believes foreign bank branches should be allowed to provide the results to their parent banks on condition the results be kept secret.

Analysts optimistic about market recovery this week

Analysts from securities companies are optimistic about stock market movements during the last trading week of this year, betting that the cash flow will soon shift to good fundamental large-cap stocks like banking and securities groups.

On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index gained 1.38 per cent to end Friday at 1,477.03 points. The index had lost 0.19 per cent last week. An average of 1 billion shares were traded on the southern exchange during each session last week, worth VND32.4 trillion (US$1.4 million).

According to MB Securities Joint Stock Company (MBS), during the last session of last week, the market recovered and regained almost all the points lost in the previous session, mostly thanks to the strong growth of banking blue-chips.

According to SHS, in the 2011-2020 period, there were only two times, in 2012 and 2018, that the VN-Index dropped in the last trading week of the year.

Mitsubishi sells 15 per cent stake in Vung Ang II thermal power plant

Shikoku Electric Power Co., Inc. from Japan has completed the purchase of a 15 per cent stake in Vung Ang II thermal power plant from Mitsubishi Corporation for $87 million, despite the global trend to move away from coal.

After the deal, Mitsubishi holds a 25 per cent stake in the project while another Japanese utility, Chugoku Electric Power Co., Inc., owns 20 per cent and Korea Electric Power Corporation holds the remaining 40 per cent.

This move is a part of Shikoku’s plan to expand operations overseas to boost growth. Shikoku Electric currently has a charter capital of $170 billion.

The loan is co-financed with private financial institutions as well as the Export-Import Bank of Korea. The total co-financing amount is approximately $1.77 billion. 

Vingroup to issue international bonds to raise $1.5 billion for VinFast

Vietnam-based conglomerate Vingroup has expressed interest in raising $1.5 billion via international bonds next year for its vehicle division VinFast.

The proceeds would be utilised to repay debts and to expand VinFast, the group's vehicle division and Vietnam’s first fully-fledged local automobile manufacturer.

Bondholders will be allowed to execute options for shares in VinFast Singapore.

Vingroup established a Singapore-based holding company earlier December to acquire an interest in VinFast's activities in Vietnam in preparation for the automaker's planned offering on the New York Stock Exchange (NYSE) in the second half of 2022.

The bonds would have a 5-year maturity. The par value has not yet been announced.

US$1.3 bln invested into North-South overhead road

The Department of Transport of Ho Chi Minh City said that the Municipal People’s Committee approved assignment for investors to study and make the proposal of building overhead road No.5, at a section from the intersection of Station 2 in Thu Duc City to An Suong intersection and the North-South overhead road project from Cong Hoa Street to Nguyen Van Linh Street under the public-private partnership (PPP) form.

Accordingly, Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) was responsible for studying to build the proposal of North-South overhead road investment and construction project with an estimation capital of VND30,000 billion (US$1.3 billion) in the form of public-private partnership (PPP) from enterprises' financial source within six months since the date of assignment.

Besides, IDICO Infrastructure Development Investment Joint Stock Company also proposed to study and invest in the project of overhead road No. 5.

The two projects are on the list of works in Ho Chi Minh City calling for investments in the period of 2021-2030 under BOT contracts.

World Bank provides US$221.5 million to support Vietnam recovery from Covid-19 

The Vietnamese Government and the World Bank have signed an agreement for financing of US$221.5 million to support Vietnam’s recovery from the Covid-19 pandemic through policy reforms aimed at improving financial inclusion and spurring greater environmental resilience.

The US$221.5-million-credit is a budget support operation and comes in the form of concessional terms for a period of 30 years with a grace period of five years. It encourages policy reforms under two pillars.

The credit is provided through the World Bank’s International Development Association (IDA), the Bank’s concessional lending window for low-income countries.

VinFast delivers first smart electric cars to customers

Vietnamese automaker VinFast on December 25 delivered its first smart electric cars VF e34 to customers, making Vietnam one of a few countries worldwide mastering electric vehicle production technology.

Nearly 100 cars will be delivered in December, and about 2,000 others in January.

Vinfast said it has received orders for over 25,000 units of the SUV model in the C segment, with respective length, width and height being 4,300mm, 1,768mm and 1,613mm, equipped with an electric motor with a maximum capacity of 110 kW.

National Business Portal online to support and connect enterprises

The National Business Portal, which has been launched on December 23, is a free and modern digital platform that helps businesses find solutions and connect globally, improving their competitive advantage.

The National Business Portal will be managed by the AED to deliver an urgently needed information and service hub that will address challenges facing businesses, especially SMEs endeavouring to internationalise. It will help raise the awareness and availability for Vietnamese enterprises on how to enter and tap into additional markets within and outside of the country and the region.

The regional project “Strengthening Regional Structures for SME Promotion in ASEAN” funded by Germany and implemented by Germany’s technical assistance agency GIZ has supported AED in creating this portal and similar initiatives in Cambodia and Myanmar.

Source: VNA/VIR/VNS/VOV/SGGP/VGP

VIETNAM BUSINESS NEWS DECEMBER 26

Tax reductions, exemptions likely to amount to VND60 trillion next year