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Member carriers of Vietnam Airlines Group are planning to resume 10 more domestic air routes from January 2022, raising the number of such routes to nearly 50.
The group, comprising Vietnam Airlines, Pacific Airlines, and VASCO, will reopen the routes connecting Ho Chi Minh City with Quang Ninh province; Hai Phong city with Da Lat, Buon Ma Thuot, and Nha Trang cities; Thanh Hoa province with Buon Ma Thuot and Da Lat; Vinh city with Buon Ma Thuot, Nha Trang, and Da Lat; and Hue city with Da Lat.
The routes are scheduled to resume from January 16, with three to four flights per week each. The carriers will also increase the flight frequency on many routes to an average of about 300 one-way flights per day in total.
HCMC formulates plan for housing development during 2021-2025
HCM City has approved the plan for housing development in the city for the period of 2021-2025.
According to this plan, the total floor area of houses will increase at least 50 million square meters from now to 2025. The average floor area per person is about 23.5 square meters.
Presently, the existing central area is 25.6 square meters a person while the existing inner-city area is 22.5 square meters a person. In the future, the inner city area will develop to 23.9 square meters a person and the average floor area per person in five suburban districts is 24.2 square meters a resident.
The city will need about VND566,983 billion (US$24,912,324,083). Of the amount, VND239,748 billion will be for construction and development of commercial housing while VND 289,542 billion will be for building separate houses of households and individuals and roughly VND37,693 billion will be for social housing construction.
Sputnik: experts upbeat about Vietnam’s economic growth 2022
The World Bank, Asian Development Bank, VNDIRECT Securities Corporation, experts and investors are optimistic about Vietnam’s economic growth prospect next year thanks to drivers such as exports, domestic consumption, foreign direction investment attraction, timely and effective policies by the Government, according to an article recently published by Russia’s Sputnik.
The article said with high vaccination rate in late 2021, the Vietnamese economy has rebounded strongly with positive signals.
Preliminary data by the General Statistic Office, the General Department of Vietnam Customs and the Ministry of Industry and Trade showed that as of December 15, Vietnam’s total export-import value was estimated at a record 633.22 billion USD, up 22.9 percent annually, making Vietnam a trade surplus country for six consecutive years and one of the 20 leading economies worldwide in terms of global trade. Its export is forecast to continue to be a major driver of economic growth next year.
The article quoted ADB Country Director in Vietnam Andrew Jeffries as saying that as Asia will witness a remarkable export recovery next year, Vietnam needs to make the best use of this opportunity, apart from 15 signed free trade agreements, to boost exports.
EVN, Sembcorp Industries sign MoU on electricity cooperation
Vietnam Electricity (EVN) and Singapore’s Sembcorp Industries signed a Memorandum of Understanding on electricity cooperation via videoconference on December 27.
Speaking at the event, Vietnamese Ambassador to Singapore Mai Phuoc Dung affirmed that EVN is the leading Vietnamese energy group while Sembcorp Industries has 25 years of experience in Vietnam with outstanding projects and holds strength in green energy.
Dung expressed his belief that their cooperation will be a success.
Chairman of the EVN’s Board of Directors Duong Quang Thanh said both sides will work closely together to seek ways in adaptation with rapid and strong changes in the sector following the 26th United Nations Climate Change Conference.
He also suggested devising a detailed plan for collaboration for 2022 and the subsequent years.
Exporters advised to change themselves to further exploit UK market
Vietnamese firms are advised to change themselves towards increased application of high technology and stronger digital transformation to improve their products’ quality and optimise the UK-Vietnam Free Trade Agreement, thus better conquering this promising market.
Statistics from the European-American Market Department under the Ministry of Industry and Trade showed that despite COVID-19, trade between Vietnam and the UK has risen 15.8 percent so far this year to 5.4 billion USD, with Vietnam’s exports up 14.5 percent.
A strong rise was seen in the export of many Vietnamese products to the UK, including rubber (85 percent), fruits and vegetables (73 percent), rattan products (61 percent), and steel products and steel of all kinds, 138 and 1,405 percent, respectively.
WB loan to support Vietnam’s economic recovery
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The Vietnamese Government and the World Bank have signed an agreement for financing of 221.5 million USD to support Vietnam’s post-pandemic recovery through policy reforms aimed at improving financial inclusion and spurring greater environmental resilience.
According to the WB, the 221.5-million-USD 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 first supports an inclusive economic recovery by easing the tax burden on businesses, improving access to financial assistance for vulnerable groups, reducing gender gaps in the workplace, and promoting financial inclusion. The second pillar contributes to greening trade policies, accelerating the adoption of e-government, and increasing the uptake of renewable energy.
The credit is provided through the World Bank’s International Development Association (IDA), the bank’s concessional lending window for low-income countries.
Aeon keen to expand operations in Vietnam
Japanese retail group Aeon has planned to expand its operations in the coming years in Vietnam – a key market its Aeon’s business strategy in Southeast Asia.
The retail group plans to open 100 or so of its MaxValu supermarkets in Vietnam by 2025, up from just four in Hanoi capital at present. It will add bigger stores with 500 sq. meters or more of floor space in its expansion, said Okazaki.
According to Nikkei, supermarkets are one part of the group's vision for growth. Tokyo-listed subsidiary Aeon Mall plans to increase its shopping centers in Vietnam to 16 locations by 2025 from the current six.
The group is vying for a larger share against Vietnamese supermarket leader Masan Group and Thailand's Central Group, which operates 230 stores.
By fiscal 2025, Aeon aims to increase the overseas share of its annual investment to 25%, nearly twice the previous level, and to more than double its annual operating profit in Asia outside Japan to a little over JPY100 billion (US$875 million). It plans to open more supermarkets in Indonesia, Cambodia and elsewhere in the region.
Cashew nut exports likely to exceed US$3.6 billion this year
Despite facing challenges caused by COVID-19, the Vietnamese cashew industry has witnessed an upturn during the past 11 months and is likely to surpass the US$3.6 billion export target this year, according to statistics released by the General Department of Vietnam Customs.
Vietnam exported approximately 531,500 tonnes of cashew worth US$3.34 billion over 11 months, up 14.4% in volume and 14.7% in value year on year, with the average export price edging up 0.2% to US$6,288 per tonne.
November alone witnessed Vietnamese cashew nut exports to several traditional markets increase sharply, with the exception of China, the United Kingdom, and Russia.
Flower gardeners in Mekong Delta emphasise diversity to adapt to new normal
Farmers in the “flower capital” of the Mekong Delta are busy growing flowers along with long-term plants for the upcoming Tết (Lunar New Year) holiday.
Trần Văn Tiếp, chairman of the “I love purple” club in Sa Đéc City in Đồng Tháp Province, said that despite the impact of the COVID-19 pandemic, 20 members of the club have been focusing on growing flowers such as raspberry chrysanthemum, Taiwanese chrysanthemum, marigold, and dahlia for Tết. The club aims to produce 40,000 pots of flowers, down 50 per cent compared to previous years.
In Phước Định yellow apricot village in Vĩnh Long Province and Chợ Lách flower village in Bến Tre Province, gardeners are speeding up the production of Tết flowers.
In Bến Tre, head of Agriculture and Rural Development Department of Chợ Lách District, said that ornamental flower growers have been able to maintain usual business.
HCM City tourism department wants policies that help travel industry bounce back from COVID
The HCM City Department of Tourism has called for policies to revive tourism businesses from their COVID-19-induced slump, especially small and medium-sized ones, that include providing interest-free and unsecured loans.
The Department of Planning and Investment is working on a plan to support local small and medium-sized businesses until 2025.
The Department of Tourism said tourism has been the worst impacted industry since 2020 and wanted the plan to comprise certain supportive policies exclusively for it to help businesses recover and pay their employees.
Small and medium-sized businesses should also have their land rent and tax subsidised or waived, it said.
The department has been helping businesses work on domestic tourism products for New Year and Tet 2022.
Local goods with meaningful value dominate Tet gift scene
Instead of imported wine and snacks, this year’s Tet (Lunar New Year) gift baskets are filled with distinguished local goods or ones with healthy, practical and meaningful value. This reflects a rising trend in the local gift scene amid the COVID-19 pandemic.
Compared to traditional Tet gift baskets, ones with local products tend to be more affordable. Considering the negative impact of COVID-19 pandemic and how it changed locals’ shopping habits, affordability is definitely a plus when it comes to local Tet gift baskets.
With local brands, appealing and unique packaging is crucial to make them stand out. Due to locals’ concern over health, healthy, organic and practical gift options are very “in” this year. At popular retailers and supermarkets, “healthy” gift baskets are usually displayed in the most prominent sites.
Heavy tasks ahead for State Treasury in 2022
State Treasury will have to take on challenging tasks next year as public spending is expected to rise, according to Deputy Minister of Finance Vo Thanh Hung.
Hung said rising government expenditure will require a sound plan of fundraising right from the beginning of next year. Capital control will also need to be improved to deal with new projects from support packages.
Under State Budget Plan for 2022, the State will run a budget deficit of around VND372.9 trillion in the fiscal year of 2022, equivalent to 4 per cent of GDP and up 8.5 per cent compared to the projected deficit of 2021.
The deputy minister also called for more training programmes to keep local treasuries well-informed about new regulations of capital control on public projects. These regulations will come into force on January 1, 2022.
By December 15, the State Treasury and its local agencies carried out control on frequent expenditures worth VND883.1 trillion and investment expenditures worth VND302.2 trillion. Through expenditure control, the treasury has also declined payments amounting to VND22.6 billion.
Shares end higher on the back of financial shares and heavy-weight stocks
Vietnamese stocks had a good start on Monday largely led by gains in financial shares and heavy-weight stocks.
On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index gained 0.80 per cent to end Monday at 1,488.88 points. The index had lost 0.19 per cent last week. The market's breadth was positive with 259 gainers and 199 losers.
Liquidity declined compared to the previous session with 752 million shares traded on the southern bourse, worth nearly VND22 trillion (US$964 million).
The VN30-Index, tracking the 30 biggest stocks on HoSE, gained 0.52 per cent to end at 1,514.55 points. Twenty-three out of 30 stocks in the VN30 basket posted gains, while six decreased.
On the Ha Noi Stock Exchange (HNX), the HNX-Index gained 0.85 per cent to end at 449.41 points.
Japan's Shikoku Electric buys 15 per cent equity in coal power plant project in Ha Tinh
Japan's Shikoku Electric Power Company has paid more than 10 billion yen (US$87 million) to buy a 15 per cent stake in the Ha Tinh-based Vung Ang 2 coal-fired power plant project in Viet Nam.
Reuters reported Shikoku paid between 10 billion and 20 billion yen to the Japanese trading house Mitsubishi Corp to buy the stake.
The move is part of Shikoku Electric's efforts to expand overseas operations to boost growth. It aims to support the operation of the plant with the know-how derived from its domestic power business, the company said.
After the deal, Mitsubishi holds a 25 per cent stake in the project while another Japanese utility, Chugoku Electric Power Co Inc, owns a 20 per cent stake.
Reference exchange rate down VND32
The State Bank of Vietnam set the daily reference exchange rate at 23,142 VND/USD on December 28, down 32 VND from the previous day.
With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,837 VND/USD and the floor rate 22,447 VND/USD.
FDI inflows record annual rise of 9.2% to over US$31 billion
Despite the negative impact of the COVID-19 pandemic, Vietnam has attracted US$31.15 billion in foreign direct investment (FDI) as of December 20, a year-on-year rise of 9.2%, according to the latest statistics from the Ministry of Planning and Investment.
The country has welcomed 1,738 newly-licensed FDI projects capitalised at US$15.2 billion, down 31.1% in project numbers but up 4.1% in registered capital compared to 2020.
Furthermore, 985 operating projects were also permitted to raise their capital by over US$9 billion, representing an increase of 40.5% year on year.
The impressive growth is considered a bright spot in the overall picture of FDI attraction for the entire year, reflecting foreign investors' confidence and optimism in the local investment climate.
Businesses face hurdles in exporting to Latin America market
Despite Latin America representing a potential market for Vietnamese exports, local businesses have encountered numerous difficulties when attempting to enter this region, according to industry insiders.
Along with obstacles faced in terms of geographical distance, a lack of direct transport routes, language differences, and a dearth of information about business opportunities, transporting goods is considered the biggest challenge for Vietnamese enterprises when making inroads into the market.
Logistics experts also made a proposal to transport goods to the US first, before subsequently crossing the border to import into Mexico, a move which could potentially save costs and reduce shipping time for between 15 days and 20 days compared to shipping goods directly to Mexico.
Source: VNA/VOV/VIR/SGGP/SGT/VNS
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