Hai Phong city's Economic Zone Management Board and the US Customs and Border Protection on December 5 organised a workshop on developing a free trade zone and a non-tariff zone in the city.

Speaking at the event, Le Trung Kien, head of the board, said that the city is preparing for the construction of a new 20,000-ha economic zone in the south of the city, adding it will offer incentives to investors in the development of a free trade zone while also focusingon developing a 752-ha non-tariff zone at Lach Huyen International Port.

Kully Nelson, Commercial Attaché at the US Embassy in Vietnam, said that the workshop concretises the cooperation agreement between Vietnam and the US that leaders of the two countries reached during the US President Joe Biden’s visit to Vietnam over two months ago. It also demonstrates the cooperation between the US Embassy in Vietnam and Hai Phong city in terms of trade.

As of November 30, 2023, there had been 904 foreign investment projects in Hai Phong city with a total investment capital of nearly 30 billion USD, with 520 of those located in industrial parks and economic zones and totally capitalised at 25.98 billion USD. In the first 11 months of 2023, Hai Phong attracted 3.2 billion USD in foreign direct investment, accounting for 160% of its plan.

Bain Capital adds 50 million USD into Masan Group

Bain Capital –  a leading private investment firm with approximately 180 billion USD of assets under management, has agreed to pour another 50 million USD into Masan Group, raising its total investment in the enterprise to 250 million USD from 200 million USD announced in October.

The transaction is an equity investment in the form of Convertible Dividend Preference Share (CDPS) to be issued at a price of 85,000 VND (3.5 USD) per share which can be converted into ordinary shares at a 1:1 conversion ratio.

Proceeds from the transaction will be used to improve Masan’s financial indicators and de-lever its balance sheet.

In only two months from the first transaction, Bain Capital has invested 250 million USD in Masan. Masan expects that the transaction will be completed in several months.

According to Masan, despite short-term fluctuations in the financial market, Bain Capital's increase in investment scale shows the investor’s strong confidence in Masan's long-term strategy and prospects. This is evident in Masan's solid business results in the third quarter of 2023.

Hoa Binh exports first batch of “Dien” pomelos to US

The first batch of “Dien” pomelos weighing 16 tonnes, part of an order of 48 tonnes, from Luong Son district, the northern province of Hoa Binh, was exported to the US on December 5.       

At the ceremony, Vice Chairman of the provincial People's Committee Dinh Cong Su affirmed that it is the second year Hoa Binh has exported Dien pomelos, but there is a significant difference compared to December 2022 when only one container was flown to the UK.

He said this year, the province has received orders for the pomelo from several EU countries and three orders from the US, affirming the expansion of export markets and the rapid increase in the export volume of agricultural products from Hoa Binh.
  
At present, the pomelo tree is becoming a key crop in Hoa Binh. In particular, the area dedicated to Dien pomelos this year has reached over 3,200ha, accounting for nearly 60% of the total pomelo cultivation area and 31% of the citrus tree area in the province. The expected yield of Dien pomelos this year is over 52,000 tonnes, mostly in Yen Thuy, Luong Son, and Kim Boi districts.

Local agencies and localities support pomelo growers, by expanding the areas that are granted identification codes, regularly monitoring food safety and those subject to plant quarantine, enhancing training for farmers and supplying essential supplies for production.

Support has also been extended to farmers in acquiring certifications such as VietGAP and GlobalGAP. As the result, the quality of exported pomelos has improved considerably.

Vietnam becomes China's second largest banana exporter

Vietnam has become the second largest exporter of banana to China, behind only the Philippines, accounting for 28.2% of the total amount of bananas imported by the market, the Import-Export Department under the Ministry of Industry and Trade has announced.

The department quoted statistics released by the General Administration of Customs China stating that the northern market imported 1.46 million tonnes of bananas worth US$912.4 million during the first 10 months of this year, down 7.1% in volume and down 10% in value compared to the same period last year.
  
The average price of imported bananas reached US$623.2 per tonne, marking a drop of 3.1% year on year.

Most notably, China increased banana imports from Vietnam but decreased the imports from the Philippines, due to Vietnam’s geographical location coupled with the rise of costs in the Chinese market.

The country’s production of bananas, a fruit that can be harvested all year round, averages at about 2.1 million metric tonnes per year, according to the Ministry of Agriculture and Rural Development.

In a relevant move, on November 11, 2022, the Vietnamese Ministry of Agriculture and Rural Development and the Chinese General Administration of Customs signed a protocol requiring phytosanitary procedures for fresh bananas exported into China as part of General Secretary of the Communist Party of Vietnam Central Committee Nguyen Phu Trong’s official visit to China.

At present, Vietnam boasts 11 fruits licensed to enter the Chinese market. Among these fruits, the country has signed numerous Chinese protocols relating to phytosanitary requirements for four kinds - mangosteen, passion fruit, durian, and banana.

Vietnamese garment exports to Australia rise despite shrinking market

Vietnamese garment exports to Australia have kept rising over the past months, though Australia is reducing garment imports from suppliers.

According to https://textalks.com/aussie, Australia’s garment imports decreased by 11.5% in the first nine months of this year but the value of Vietnamese garment shipments to Australia rose by 10% compared to the same period last year.

Meanwhile, statistics unveiled by the General Department of Vietnam Customs show Vietnamese garment exports to Australia in the Jan.-Oct. period this year grew by 8% over the same period in 2022 and by 38.2% over the same period in 2021.

The Vietnamese Trade Office in Australia says to sustain the steady growth it has introduced Vietnamese garment products at the global sourcing expo, the largest in Australia, and used digital platforms to expand opportunities for businesses.

This year, the expo attracted nearly 1,000 suppliers and about 4,000 importers from across the globe to seek partnerships.

Besides introducing garment products, the Vietnamese Trade Office also promoted the export of raw materials for textile-garments and leather shoes. The first 10 months of this year saw the export of these raw materials increase by 17.6% year on year.

However, the trade Office warned that the export of garments to Australia would be more difficult ahead due to the importer’s green production requirements.

Bac Giang, RoK’s Chungcheongnam province sign cooperation agreement

A delegation from the Republic of Korea (RoK)’s Chungcheongnam province held talks and signed a cooperation agreement with authorities of the northern province of Bac Giang on December 5.

Speaking at the event, Chairman of the provincial People's Committee Le Anh Duong said the RoK now ranks first in terms of the number of projects and second in investment capital among 30 countries and territories investing in Bac Giang.

In particular, Bac Giang has the Vietnam-Korea Vocational College of Technology, which effectively contributes to the goal of developing a skilled workforce that meet the requirements of the local industrial sectors and Korean businesses in Vietnam.

At present, Bac Giang has 1,750 workers employed in the RoK, and nearly 1,200 Korean workers are working in the province. Cultural and economic exchanges between Bac Giang and the RoK are increasingly expanding.

The RoK is the second largest export-import market of Bac Giang, with bilateral trade turnover totalling 13.3 billion USD last year, up 46.2% annually. In the first 11 months of this year, the figure reached around 14.8 billion USD, or 31.2% of the province's total export-import turnover.

Bac Giang exported various goods to the RoK, including apparel, leather and footwear, computers, electronic products and components, phones and accessories, processed and fresh farm produce. It imported raw materials and accessories for apparel, leather and footwear, computers, electronic products and components, phones and accessories, machinery and equipment, processed and fresh farm produce from the RoK. The import turnover from the RoK accounted for 35.5% of the province's total.

Governor of Chungcheongnam province Kim Tae-heum expressed his hope that diplomatic ties between the two localities will be further strengthened both in depth and width.

After the talks, the two sides signed a cooperation agreement on the regular exchange of delegations to share managerial experience, cultural exchanges to raise understanding of each other's history and culture, economic cooperation in industrial and agricultural development, and collaboration in the fields of health care, education, training, high-quality human resources and labour exchange, among others.

Vietnamese, Indian firms seek to boost cooperation in electricals, electronics

Representatives of hundreds of Vietnamese enterprises operating in the electricals and electronics industries, and those from the Indian Electrical and Electronics Manufacturers' Association (IEEMA) gathered in Hanoi on December 5 for a meeting jointly held by Invest Global and the Indian Embassy in Vietnam.

According to Indian Ambassador to Vietnam Sandeep Arya, electricals and electronics are important for the industrial development of the two countries, and are also areas where Vietnamese and Indian businesses can expand partnership.

In recent years, India and Vietnam have recorded an impressive growth in terms of electricals, electronics and related fields such as power transmission and distribution, the diplomat said.

He, however, noted that the trade value of electrical products between India and Vietnam has just reached more than 200 million USD - a modest figure compared to the cooperation potential between the two countries.

With the recently approved National Power Development Plan VIII, Vietnam has a lot of potential for cooperation with India in these fields, Arya said, adding that the embassy will have more programmes to connect the two countries' business communities, thus expanding trade cooperation.

Nguyen Noi, Deputy General Director of Invest Global, said that Vietnam has a huge demand for investment capital in the field of electrical equipment.

In the period 2021-2030, the total investment capital needed to develop power sources and transmission grids is estimated at 134.7 billion USD, he said.

Foreign investors, including Indian firms, can invest in the form of 100% foreign capital, or through technology transfer, and merger and acquisition (M&A) deals with Vietnamese enterprises, Noi said.

With a leading position in the fields of electricals, electronics, information technology, and artificial intelligence, Indian businesses will certainly achieve success when investing and doing business in Vietnam, he stressed.

Vu Quang Hung, Deputy Director of the Research Institute for Industry Policy and Strategy under the Ministry of Industry and Trade (MoIT), said that there are many opportunities for Indian businesses to work with Vietnamese firms, especially in developing wind, solar and gas power.

Indian businesses can also provide equipment such as boilers and turbines for power plants in Vietnam, and join Vietnamese businesses in providing cable systems, and equipment for power transmission projects, and developing smart grid systems, he said.

Electronic businesses can partner with Vietnamese electricity supply and production businesses in supplying equipment for handling incidents in electricity supply and promoting digital transformation, he added.

IEEMA comprises 900 members, including equipment manufacturers throughout the supply chain of the power generation, transmission and distribution industry, with a combined annual revenue of over 50 billion USD, and export turnover of over 10 billion USD, and supplying 90% of all electrical equipment installed in India.

Ample room remains for HCM City - St. Petersburg cooperation: Forum

There remains ample room and potential for Ho Chi Minh City and Saint Petersburg City of Russia to increase trade turnover and expand investment cooperation in digital transformation, manufacturing and processing industry, pharmaceuticals, healthcare and education, heard a business forum in HCM City on December 5.

Addresssing the event, which was hosted by the Committee for External Relations of St. Petersburg, Director of the HCM City Department of Foreign Affairs Tran Phuoc Anh said that the fruitful development of friendship and cooperative relations between Vietnam and Russia in recent times has created a favourable foundation for the HCM City - Petersburg friendship to constantly develop.

HCM City considers St. Petersburg one of 12 key localities that it will actively promote cooperation with in the coming time, he noted.

According to the official, there is a great prospect for the two sides to strengthen economic cooperation because HCM City is a potential market with a growing number of middle-class people, and an attractive investment destination with advantages in terms of geographical location, political stability, flexibility, and support policies for foreign businesses and investors.

HCM City has chosen green growth as its future development strategy, focusing on innovation, developing modern infrastructure, and improving the efficiency and competitiveness of the economy, thus promoting sustainable economic growth, Anh added.

Grigoriev Evgeny Dmitrievich, Chairman of the Committee for External Relations of St. Petersburg, highlighted the development of the bilateral relations between Vietnam and Russia, and relationship between localities of the two countries, including HCM City and St. Petersburg.

HCM City is home to over 20 Russian businesses, while there are more than 60 enterprises in St. Petersburg regularly doing business with Vietnamese companies, he said. However, Dmitrievich noted that the above-mentioned numbers do not fully reflect the potential for cooperation between the two sides.

Businesses of the Vietnamese and Russian cities have the demand to set up cooperation in information technology, health care, and education, he added.

The authorities of St. Petersburg encourages its businesses to promote trade and investment cooperation with foreign firms, including those from Vietnam, Dmitrievich said.

Goryshina Olga Anatolievna, vice head of the Committee for Industrial Policy, Innovations and Trade of St. Petersburg, said St. Petersburg is one of the cities with developed industry and vibrant commercial activities in Russia. Goods produced in St. Petersburg are currently exported to more than 100 countries around the world, including Vietnam.

Vietnam, and HCM City in particular, can enhance cooperation with the Russian city in the fields of shipbuilding and water treatment, she said.

Representatives from businesses of St. Petersburg said that HCM City is not only the largest economic hub in Vietnam but also an international trade gateway that connects dynamic economic regions in Asia.

Goods volume surges at Quang Ninh’s Mong Cai border gate

The total volume of commodities imported and exported through Mong Cai international border gate in the northern province of Quang Ninh reached more than 1.4 million tonnes as of December 3, up 74% from a year earlier, according to Tran Bich Ngoc, head of the border gate management board.

Of the total, nearly 706,650 tonnes of goods transported by 43,405 vehicles via the Bac Luan bridge II border gate, a year-on-year increase of 29.2%.

About 35,730 tonnes of goods were transported via the Km3 4 Hai Yen border crossing, up 72.9% year on year.

Besides, authorities at the Mong Cai international border gate carried out immigration procedures for over 3.9 million people.

Vietravel Airlines holds annual safety-quality conference

Vietravel Airlines, a subsidiary of tour operator Viettravel, convened its annual conference on safety and quality on December 5.

Addressing the event, the CEO of the carrier and head of its safety committee, Nguyen Minh Hai, underscored safety and quality as top priorities.

Ensuring absolute safety for passengers and the workforce is crucial to affirming Vietravel Airlines’ position and reputation, he stated.

Participants mulled over issues related to operation improvements, with outcomes of their discussion serving as input to devise an action plan for 2024.

Founded in late 2019, Vietravel Airlines ran the first commercial flight on January 25, 2021, becoming the first travel airline in Southeast Asia and the fifth commercial carrier in Vietnam. It is set to focus on operating commercial flights using modern narrow-body aircraft such as the Airbus A321/Boeing 737 or equivalent.

According to its General Director Vu Duc Bien, in the first half of 2023, the numbers of flights and passengers increased by 48% and 43% compared to the same period last year, respectively, with the occupancy rate of each flight being up to 80-85%. These are important premises for the carrier to thrive in the aviation sector.

The airline expanded its flight network to major cities such as Da Nang, Phu Quoc, Nha Trang, Quy Nhon and Da Lat, and Bangkok (Thailand). It also operated charter flights to Daegu and Muan (the Republic of Korea), and Macau and Sanya (China).

Ample room for Vietnam, Japan to boost cooperation in digital economy: Forum

Vietnamese and Japanese experts exchanged views on solutions to foster cooperation in digital economy between the two countries at a forum in Hanoi on December 5.

The “Vietnam-Japan Policy Research Forum: Digital economy partnership under Indo-Pacific Economic Framework for Prosperity: How should Japan and Vietnam cooperate?” was held by the Central Institute for Economic Management (CIEM) in coordination the Graduate School of Public Policy under the University of Tokyo, with the support of the Toshiba International Foundation.

Speaking at the event, Nguyen Anh Duong, Director of the CIEM’s Department for General Economic Issues and Integration Studies, highlighted Vietnam’s efforts in boosting digital economy and cooperation in this field.
 
Kazuo Kusakabe, Chief Representative of Hanoi Representative Office of Toshiba Asia Pacific Pte Ltd, pointed to substantial potential for the two countries to strengthen their collaboration in digital economy.

Vietnam and Japan issued a joint statement on the elevation of their relations to a comprehensive strategic partnership for peace and prosperity in Asia and the world last month, which also mentioned enhancing cooperation in digital economy, he stressed.

Participants said Vietnam should work to raise its capacity for digital economy in combination with its partnerships in this regard. They also discussed changes in the Vietnam-Japan relations, and international trends and developments that affect economic cooperation in the Indo-Pacific.

Vietnam attends France trade, investment forum

Minister of Industry and Trade Nguyen Hong Dien on December 4 attended a forum on trade and investment between France and Southeast Asia.

The event was organised by the French Senate and Business France which is responsible for fostering export growth by French businesses, facilitating international investment in France.

It attracted more than 200 businesses from France and ASEAN countries, including Vietnam.

Dien affirmed that the event helps strengthen cooperation between ASEAN and France in particular and between ASEAN and EU in general, to together address world issues and promote their 45-year ties.

He spoke highly of France's leading role in cooperation with ASEAN countries, stressed that Vietnam has special advantages to contribute to promoting relations between ASEAN countries and France, and affirmed that the Vietnamese Government is striving to build an independent, self-reliant economy and integrate into the world market in a positive, profound, substantive and effective manner.

Vietnam welcomes businesses and investors and is committed to providing long-term policies for them to operate effectively in the country, he said.

Within the framework of the forum, Business France and Vietnam’s Ministry of Industry and Trade held a roundtable on Vietnam.

At the roundtable, Minister Dien introduced Vietnam’s vision and policies for sustainable development to turn it into a hub in regional and world production and supply chains.

The French business community can take Vietnam as the gateway to ASEAN, and Vietnamese businesses can also take advantage of the EVFTA to make France a centre for distributing goods to the entire EU, the official said.

According to French customs data, in 2022, the trade turnover between Vietnam and France reached 8.1 billion euros (about 8.7 billion USD), accounting for only 0.6% of the total between France and the whole world. This shows that economic relations and trade between the two countries still have much room for development, Dien said.

On the sidelines of the forum, he also met with leaders of major French oil and energy groups including Perenco, Electricite de France (EDF), Air Liquide, Hydrogen de France (HDF).

Dien spoke highly of the efforts and contributions by the French groups to the energy sector development and affirmed that in the coming time, it’s inevitable for Vietnam to shift from fossil fuels to clean energy.

Leaders of French corporations showed special interest in the Vietnamese market and affirmed that they will continue to maintain and expand their business and investment in Vietnam, especially targeting new energy industries such as renewable energy, green hydrogen, biomass.

During his stay in Paris, Minister Dien and Vietnamese Ambassador to France Dinh Toan Thang co-chaired a talk show on mobilising resources of overseas Vietnamese intellectuals and businesses to develop Vietnam’s energy and commerce sectors.

India's DGTR reveals details on trade investigation Vietnamese steel

In a recent development, the Directorate General of Trade Remedies (DGTR) in India has revealed details about its investigation into the sunset review of countervailing duties imposed on stainless steel welded pipes originating from Việt Nam and China.

According to information received by the Ministry of Industry and Trade's Trade Remedies Authority of Vietnam, the DGTR has issued an investigation questionnaire for the sunset review of countervailing duties on stainless steel welded pipes from the above-mentioned countries.

The reviewed stainless steel welded pipes fall under HS codes: 7306 40 00, 7306 61 00, 7306 69 00, 7304 11 10, 7304 11 90, 7304 41 00, 7304 51 10, 7304 90 00, with the scope of the products under review extending beyond these HS codes.

In adherence to Indian regulations, a sunset review is mandated after five years of enforcement. This review, prompted by the domestic industry's representatives, aims to evaluate the necessity of continuing with trade defence measures. It also explores the potential recurrence of subsidisation or harm to the domestic industry if these measures are terminated.

The DGTR initiated the investigation on September 30, 2023. The official date of dispatching the investigation questionnaire to manufacturers, exporters, and relevant parties was November 28, 2023.

Stakeholders involved are urged to submit their perspectives on the complainant's security interests within seven days of the DGTR officially sending the investigation questionnaire.

Comments on the application, the scope of investigated goods, and proposals for the Product Control Number (PCN) should be submitted within 15 days. Responses to the investigation questions and pertinent information are expected within 30 days from the official date of the investigation questionnaire dispatch by the DGTR. 

Trade promotion event affirms their roles

This year 2023 marks 10 years of development and affirms the role of a prestigious and widespread trade promotion event - the Việt Nam Local Specialty Fair.

The fair has become more and more attractive, increasingly receiving the active response and participation of a large number of provinces and cities across the country, capital consumers, and domestic and foreign tourists.

It has become a trade bridge for domestic producers and traders of processed agricultural and food products with distribution systems, shopping centres, and supermarkets.

Participating units are also constantly innovating and creating in terms of form, scale and quality of products participating in the fair.

Director of the Việt Nam Centre For Agricultural Innovation Nguyễn Thu Hương assessed that this was a large and prestigious trade promotion event, contributing to supporting businesses and localities to promote speciality products to Hanoian consumers as well as participating in the supply and consumption chain effectively in the capital market and serving exports.

The 2023 Việt Nam Local Specialty Fair will become not only a meeting place to connect and introduce typical products, specialities, products protected by geographical indications, and high-quality OCOP products of 56 provinces and cities, but also a place where trade connection activities take place between businesses and major distributors, along with many cultural and tourism promotion activities.

“With the efforts of Hà Nội City, the co-ordination of provinces and cities and the response of businesses, I believe that the Việt Nam Local Specialty Fair will continue to affirm as an important bridge between manufacturers, distributors and consumers, is an effective promotion channel for Vietnamese speciality products, and is a national speciality festival flocking to the capital. This is also an opportunity to introduce the traditional culture and typical tourism of each land to domestic and international tourists," affirmed Bùi Duy Quang, deputy director of the Hà Nội Centre for Investment, Trade and Tourism Promotion. 

Điện Biên airport receives Airbus A321 aircraft for the first time

Flight VN1802, operated by Vietnam Airlines, took off from Hà Nội at 10am and landed at Điện Biên airport on December 2 almost an hour later.

The introduction of the Airbus A321 to Điện Biên airport marks a special milestone as the airport successfully welcomed a large and modern aircraft for the first time in its history and is expected to bring new development opportunities to the province's economy and society.

In the initial phase, the airline will operate daily flights between Hà Nội and Điện Biên with a frequency of seven flights per week.

With the reduced travel time of just one hour, it will be much more convenient for people to travel between the capital city of Hà Nội and the historical land of Điện Biên in the Northwest region of Việt Nam.

Hoành Sơn Group raises ownership in Sao Vàng Rubber to over 50 per cent

Hoành Sơn Group Joint Stock Company has acquired 7.2 million shares of Sao Vàng Rubber Joint Stock Company (SRC), elevating its ownership to 14 million shares, equivalent to 50.22 per cent of the capital.

As a result, it has surpassed Vinachem (with a 36 per cent stake) to become the largest shareholder of SRC.

The Chairman of the Board of Directors and General Director of Hoành Sơn Group, Phạm Hoành Sơn, also holds the position of Chairman of the Board of Directors at SRC.

The acquisition of Sao Vàng Rubber shares by Hoành Sơn Group was conducted through put-through transactions with six individuals. This includes the purchase of more than 1.3 million shares from Hồ Việt Hùng, 1.3 million shares from Nguyễn Thị Hồng, 550,000 shares from Nguyễn Tiến Dũng, and the remaining shares from Nguyễn Tiến Ngọc, Nguyễn Huy Hùng and Trần Thị Thuý Hằng.

Following the transaction, Hồ Việt Hùng's ownership was reduced to 1.28 per cent, while Nguyễn Thị Hồng and Nguyễn Tiến Dũng both decreased their ownership to 0 per cent.

Between November 29 and December 1, SRC recorded a series of put-through transactions, involving a total volume of exactly 7.2 million shares. These transactions were carried out among the aforementioned organisations and individuals. The total value of the deal exceeded VNĐ216 billion (US$8.9 million), equivalent to VNĐ30,000 per share.

On the market, SRC shares have witnessed a 70 per cent increase since the beginning of September. Starting from a price range of VNĐ17,000 per share, the current price has risen to over VNĐ29,000 per share.

Sao Vàng Rubber's business activities have experienced a decline in profits since 2009. In 2019, Việt Nam Chemical Group (Vinachem) divested 15 per cent of its capital in SRC, during which new shareholders emerged, with Hoành Sơn Group becoming the major shareholder.

In the first nine months of 2023, Sao Vàng Rubber generated revenue of VNĐ709 billion, showing a slight increase compared to the same period last year. However, due to high costs of sales, the company's after-tax profit decreased by 57 per cent, amounting to just over VNĐ16 billion.

Hoành Sơn Group, established in Hà Tĩnh in 2001, operates in various industries including fertiliser, seaport, and real estate. 

Gemadept can earn up to $12 million after selling Nam Hải Port

The sale of all capital at Nam Hải Port Joint Stock Company can potentially generate earnings of approximately VNĐ150 (US$6.2 million) to VNĐ300 billion for Gemadept Joint Stock Company (GMD).

Gemadept early last month announced its plan to transfer 99.98 per cent of shares at Nam Hải Port Joint Stock Company, which directly operates Nam Hải Port and Nam Hải Dry Port (Nam Hải ICD) in Hải Phòng City.

At present, there is limited information available regarding the partners involved in the deal and the expected profits. However, according to the latest assessment by BSC Equity Research, Gemadept Port could achieve a pre-tax profit of around VNĐ160 billion from divesting its stake in Nam Hải Port.

This profit represents only 9 per cent of the value of the previous transfer deal involving Nam Hải Đình Vũ Port, also conducted by Gemadept in May 2023.

Meanwhile, Vietcap Securities estimated that this deal with Nam Hải Port Joint Stock Company could generate profits ranging from VNĐ150 to VNĐ300 billion for Gemadept.

BSC Equity Research said that the anticipated profits from this new deal would be lower due to the less favourable location of Nam Hải Port, which is situated behind Bạch Đằng Bridge and faces challenges in accommodating loaded ships weighing 20,000DWT or more. Additionally, Nam Hải Port is the smallest port within Gemadept's northern port cluster.

In fact, the number of ships with a tonnage of 20,000DWT passing through Bạch Đằng Bridge has decreased by nearly 40 per cent since the Bạch Đằng Bridge in operation in the beginning of 2023. BSC Equity Research predicted that this downward trend would persist in the future, given the increasing preference for larger ships.

Therefore, Gemadept's decision to divest from Nam Hải Port was a strategic move aimed at enhancing the operational efficiency of its existing ports. Furthermore, it would provide additional resources for Gemadept to focus on projects in the North, particularly the upcoming Nam Đình Vũ phase 3, which is anticipated to commence operations in 2025.

According to BSC Equity Research, if the aforementioned deal proves successful, it is expected to contribute approximately 10 per cent to Gemadept's core profit after tax in 2024. 

EVNNPC to divest more than 2.3 million shares in NEEM

The Hà Nội Stock Exchange (HNX) plans to hold an auction for shares of North Electrical Equipment JSC (NEEM), which is owned by the Northern Power Corporation (EVNNPC), on December 5.

The number of shares offered for auction amount to more than 2.3 million, which represents 26.26 per cent of NEEM's registered capital and the entirety of EVNNPC's investment in NEEM. This transfer of NEEM's capital from EVNNPC is part of the approved plan by EVN to recover invested capital for the 2021-25 period.

The starting price is set at VNĐ12,200 per share (US$0.5 a share). According to the auction regulations, foreign investors are not permitted to purchase shares.

This will be the second auction session held at HNX in 2023. Prior to this, the auction session for shares of Tia Sáng Battery JSC was successfully concluded, with a total of over 3.4 shares sold at a winning bid value exceeding VNĐ134.8 billion.

NEEM officially became a public company on June 6 this year, and is currently undergoing the procedures to register its shares for trading on the UPCoM market. Besides, EVNNPC, NEEM has two other major shareholders who hold respective stakes of 35.98 per cent and 26.26 per cent.

NEEM is located in Quế Võ Industrial Zone, Bắc Ninh, spanning an area of 23,596 square metres. Its main business involves manufacturing and assembling high-voltage, medium-voltage, and low-voltage switchboards, as well as information and telecommunications cabinets and other electrical equipment.

Due to the COVID-19 pandemic since 2019, NEEM has temporarily halted manufacturing activities and focused on selling outdoor high and medium voltage equipment, switchboards, transformers, new energy power stations, power quality management devices and circuit breakers for city power grids. Its primary market is the northern region.

In 2022, NEEM achieved sales revenue of over VNĐ24.67 billion with a profit after tax of more than VNĐ560.33 million.

In the first nine months of 2023, its sales and service revenue amounted to over VNĐ15.35 billion, but posting a loss of VNĐ343.8 million.

Sole export growth: Agro-forestry-fisheries in spotlight for 11 months

Deputy Minister of Industry and Trade Phan Thi Thang on December 5 highlighted the resilience of the agro-forestry-fisheries sector, the sole group witnessing export growth amid declining trends in other categories over the 11 months. 
 
This sector continues to be a bright spot for the export-driven economy.

On December 5, the Ministry of Industry and Trade presented a report on the import-export and production situations for the first 11 months of 2023.

The report reveals a 7 percent drop in the total export turnover of the processed industrial goods group and an average 15.1 percent decline in the fuel and mineral group over the 11 months, compared to the same period in 2022. “Most items within this category decreased sharply, including a 15.4 percent drop in crude oil, a 50.7 percent decrease in coal, a 7.4 percent decline in petroleum, and a 12.2 percent reduction in other ores and minerals," as outlined in the report.

Nevertheless, Deputy Minister of Industry and Trade Phan Thi Thang highlighted that the export turnover of the agro-forestry-fisheries sector was the sole category showing growth in the first 11 months of 2023, reaching an estimated total of US$29.5 billion, marking a 4.6 percent increase year-on-year.

Among these, the leader of the Ministry of Industry and Trade emphasized the remarkable performance of the fruit and vegetable products, recording an export turnover of $5.32 billion over the 11 months, up 74.5 percent compared to the same period last year. Additionally, rice has seen noteworthy growth, with 7.75 million tons exported, reflecting a 16.2 percent increase, and the export value of rice reaching an estimated value of $4.4 billion, up 36.3 percent compared to the same period in 2022.

In order to boost the export market for the agro-forestry-fisheries sector, Deputy Minister Phan Thi Thang announced that the Ministry of Industry and Trade would coordinate with the Ministry of Agriculture and Rural Development to engage in negotiations with relevant Chinese authorities to open up additional export opportunities for various Vietnamese fruit and vegetable products, including green-skinned pomelos, fresh coconuts, avocados, pineapples, star apples, limes, and cantaloupes.

Furthermore, authorities will work together to optimize the efficiency of customs clearance for imports and exports at border crossings along the Vietnam-China border, especially for seasonal agricultural and aquatic products, rapidly and strongly shifting them towards official export channels.

Overall, in the first 11 months of 2023, the total import and export turnover of goods reached $619.17 billion, a decrease of 8.3 percent compared to the same period last year. Nevertheless, the trade surplus for goods over the 11 months is estimated at $25.83 billion.

Nearly half of businesses stop digital transformation plans in post-Covid-19 era

Up to 48 percent of Vietnamese businesses stopped their digital transformation plans after the Covid-19 pandemic, according to Mr. Nguyen Anh Duong, Head of the Central Institute for Economic Management’s General Research Department.

Mr. Nguyen Anh Duong announced this at the Vietnam - Japan research forum on digital economic partnership within the Indo-Pacific economic framework organized by the Central Institute for Economic Management (CIEM) on December 5, one of a series of the official events commemorating the anniversary of 50 years of establishing diplomatic relations between Vietnam and Japan (from 1973 to 2023).

Mr. Nguyen Anh Duong said that Vietnam has made important efforts to promote digital economic development and digital economic cooperation; however, 48 percent of Vietnamese businesses presently suspended their digital transformation plans in the post-Covid-19 era.

The country still needs a lot of effort because the current legal framework does not support new digital business models; plus, the present legal framework lacks regulations to protect users in addition to inadequate digital technology infrastructure and limited human resources. Above all, entrepreneurs are not eager to make innovations.

Forum participants pointed out that Japan and Vietnam have much potential to promote cooperation in the digital economy. For instance, Professor Takashi Terada from Japan’s Doshisha University recommended that Vietnam join the WTO Joint Statement Initiative (JSI) on e-commerce which is currently under negotiation and the Southeast Asian nation will gradually harmonize rules on digital commerce value.

This expert also emphasized the importance of digital technology application in governmental agencies as he said that digital technology is an important solution to the upcoming population aging trend in Asia, including Japan and Vietnam.

With the same opinion, Professor Mie Oba from Japan’s Kanagawa University proposed that Vietnam actively participate in the process of establishing rules in cross-border economic activities in the Asia/Indo-Pacific region including digital economy, cooperation promotion with Japan on the digital economy in various mechanisms to provide digital public goods in the form of software, data sets, AI models, standards or content that are generally free cultural works and contribute to sustainable national and international digital development in the digital economy.

New enticing year-end tours, routes welcoming visitors to HCMC

On December 5, as part of the third HCMC Tourism Week in 2023, the HCMC Department of Tourism collaborated with various districts to unveil a range of new tours and routes to attract visitors to the city at year's end.
 
Specifically, the Department cooperated with the People's Committee of District 7 to introduce new and regular waterway tourism products. Of which, the Ngoi Sao Viet (Viet Star) boat terminal at 9A Tran Van Tra Street, Tan Phong Ward, District 7, is specifically designated as the central pier area, serving as the starting point for various waterway tourism routes.

The inner-city waterway transportation route, the waterway routes to Nha Be District in HCMC, to Can Giuoc in Long An Province, and Can Gio District in HCMC, and the waterway route connecting to Dong Nai Province through the Golf tour offer a highly convenient high-speed canoe travel time of just 25 minutes.

Several noteworthy waterway routes with short distances include the "Nhieu Loc – Thi Nghe inner-city tourism route," which departs at 5 p.m. daily, lasting from two to four hours; the "Exploring the Beauty of the Saigon River" route, with itinerary through the Bach Dang Waterway Station – Mui Den Do (Red Light Cape) - Thanh Da Peninsula – Bach Dang Waterway Station; and the route for viewing the "Sunset on the Saigon River."

The mid-range waterway route "HCMC – Binh Duong" features a two-day, one-night cruise, starting from Bach Dang Waterway Station, passing through Tiamo Wharf, and concluding at Becamex Hotel New City, specifically designed to serve golf enthusiasts.

On the same day, the District 1 People's Committee revealed their partnership with the HCMC Department of Tourism and Vietluxtour to present the "District 1 – Night Colors" tour on the evening of December 6. Participants will immerse themselves in activities such as enjoying art performances, exploring the night streets, shopping, and relaxing, along with the distinctive healthcare services offered in District 1.

Hanoi sets economic growth target of 7% in 2024

Hanoi strives to hit a gross regional domestic growth (GRDP) of 6.5-7% in 2024, as the city expects a favorable global context to spur a strong economic rebound.

The target was mentioned in a resolution on the 2024 socio-economic plan ratified by the municipal People’s Council today [December 5], which outlines 24 key development targets for next year.

Among key goals are GRDP per capita of VND160-VND162 million (US$6,591-$6,674); a 10.5-11.5% increase in realized investment capital; export growth of 4-5%; consumer price index growth below 4%, and a reduction in the number of poor households by 300-400.

The overall objective is to sustain growth while controlling inflation and maintaining economic fundamentals in the capital. This involves promoting positive changes through implementing breakthrough policies and restructuring the local economy, spearheaded by innovative growth models, enhanced productivity, improved quality, efficiency, competitiveness, and the internal strength of the capital's economy.

Emphasis will be placed on advancing administrative reform through digital transformation, refining and building a streamlined, effective apparatus, optimizing human resources, and restructuring the civil servants and public employees' teams.

“Efforts will continue to focus on enhancing the investment climate, addressing bottlenecks, and fostering production and business activities,” noted the resolution.

It suggests that comprehensive and synchronized development in culture, education, and health should be prioritized, along with the promotion of infrastructure and digital technology, and the integration of science and technology in the construction of smart cities. Social security and welfare policies should be effectively implemented to enhance the material and spiritual well-being of the population.

The solutions include refining the effectiveness of land and resource management, emphasizing environmental protection, and proactively responding to climate change. Rigorous management and development of urban infrastructure under approved plans are also on the agenda.

Anti-corruption measures will be significantly intensified, with a focus on eradicating negativity and minimizing waste. The goal is to enhance the efficiency of foreign affairs and international integration, ensure national defense and local military strength, and maintain social order and security. Ongoing implementation of the five themes of "Discipline, responsibility, action, creativity, and development" remains a priority.

At a meeting held on the same day, Vice Chairman of the Hanoi People's Committee Le Hong Son reported that the city had successfully maintained its GRDP growth pace, with this year’s economic growth expected to be around 6.27%.

Son added that the socio-economic performance in 2023 successfully met 18 out of 23 planned targets. Notably, three targets exceeded expectations: a greater reduction in the number of poor households compared to the previous year (reaching 34.4% against a planned target of 30%), a higher percentage of urban wastewater treated (30.9% compared to a planned target of 28.8%), and an increase in the number of public schools meeting national standards (130 newly accredited schools and 270 reaccredited schools, surpassing the planned targets of 81 and 50 schools, respectively). Budget revenue surpassed yearly estimates by 13.5%, reaching a total of VND400 trillion ($16.47 billion).

Meanwhile, exports and imports have declined due to disruptions in the global supply chain and lower demand in key markets. The estimated export turnover for 2023 is $17.30 billion, an increase of 1%, while imports are expected to reach $44.17 billion, marking an 8% increase.

Double-digit growth was observed in trade and services, while agriculture showed steady growth, continuing to serve as a robust pillar of the economy. The consumer price index was well-controlled at 1.51%, markedly lower than the national level of 3.2%.

There were positive trends in social investment capital, foreign investment, and registered businesses. Social investment capital is expected to increase by 9%, slightly below the planned target of 10.5%. In the first 10 months of the year, FDI capital attracted amounted to $2.6 billion, representing a 2.04 times increase.

Son noted that Hanoi is actively executing its investment plan across three key areas: education, health, and the repair and restoration of monuments.

Special attention is being paid to investment in education, healthcare, and monument restoration. 

Meanwhile, significant progress has been made in the planning process, with approval granted for many crucial plans.

The urban technical infrastructure remains a focal point, and the construction of the Ring Road No.4 project is expected to contribute to the improvement of public transport capacity.

Hanoi Grand Sale 2023: Over 12,000 promotions worth US$1 billion

Over 12,000 promotion programs of Hanoi's enterprises with an estimated total value of over VND25 trillion (US$1 billion) were offered at the Hanoi Grand Sale 2023, which ran until November, in response to the national concentrated promotion program, said Tran Thi Phuong Lan, Director of the Hanoi Department of Industry and Trade, at the opening ceremony of the Vietnam Grand Sale 2023 in Hanoi on December 4.

She said that in response to the national concentrated promotion program initiated by the Ministry of Industry and Trade, Hanoi will launch a stimulus campaign covering food, consumer goods, fashion, textiles, electronics, telecommunications, banking, and real estate.

Hanoi's retail sales of consumer goods and services reached VND567.5 trillion (US$23.4 billion) in the first 10 months of 2023, up 28.8% year-on-year, she added.

Speaking at the event, Le Hoang Tai, deputy director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, said the program will be implemented through both traditional trade and e-commerce channels, combined with fairs, exhibitions and events.

Government agencies and citizens will inspect and monitor the promotional activities of enterprises to ensure transparency and compliance with legal regulations.

The Vietnam Grand Program 2023, which runs from December 4 to January 10, 2024, is expected to contribute to the overall increase in retail sales and service revenues.

According to the General Statistics Office, in the first 11 months of this year, total retail sales of goods and consumer service revenues reached VND5.55 trillion ($235 billion), up 9.6% year-on-year.

Newly established small businesses increase by 3.5 percent y-o-y

Newly-established small businesses increase of 3.5 percent year-on-year was reported.

According to the latest data announced by the General Statistics Office, from the beginning of the year to the end of November 2023, roughly 201,500 new businesses were started in 2023, an increase of 3.5 percent compared to the same period last year.

In the same period, around 158,800 businesses were withdrawing from the market, an increase of 20 percent over the same period last year. The average registered capital of newly established enterprises in the first 11 months of 2023 reached VND9.4 billion (US$ 387,559), down 13.1 percent over the same period last year. The total registered capital added to the economy in the first 11 months of 2023 reached VND3.15 trillion, down 29.4 percent over the same period last year.

As the country has not achieved the target of 1 million businesses in 2020, the target of 1.5 million businesses in 2025 also seems quite difficult. Moreover, the country has not obtained the target of the total number of registered firms with limited liability per 1,000 working-age people. Business resilience is still fragile, and the business environment is still not as good as expectations.

The motto of not criminalizing business relations has been consistently affirmed by the Party and the State. The most recent resolution 41-NQ/TW on building and developing a team of entrepreneurs in the new era once again affirmed that the government will protect legal property rights for starting a business and adding appropriate economic sanctions to handle violations.

However, the National Assembly committees’ recent supervision on the promulgation of legal documents have clearly shown that on average each law has 45 guiding documents, including 34 circulars and 11 decrees. Laws remain unchanged, but instructions frequently change, and there are even conflicts between relevant state management agencies, creating huge legal risks for businesses. Therefore, it is necessary to consider limiting cases where ministries are issued circulars.

Real estate companies among top tax debtors in HCMC

Nearly 200 businesses in HCMC owe a combined tax debt of over VND8.08 trillion, with real estate companies featuring prominently among the top 20 entities with the highest tax arrears.

The city’s tax department recently unveiled its second batch of tax debtors, with the list finalized on October 31.

Leading the list is Xuyen Viet Oil Travel and Transport Trading Company, owing a substantial VND1.5 trillion in taxes. Golden Hill Investment Corporation, previously known for developing the Alpha City project in District 1, follows closely behind with a debt of VND1.29 trillion.

Housing Development and Trading JSC also makes an appearance, with a tax debt exceeding VND600 billion. Several other major real estate firms, including Dat Xanh Group JSC, Danh Khoi Group JSC, Truong Thinh Phat Investment Construction Real Estate Corporation, and Danh Khoi Holdings Investment JSC, are among the top 20 businesses with the highest tax debts.

As of September, tax arrears in the city had reached an alarming VND50 trillion, up by 10% against January. Land-related payments account for the majority of these defaults, totaling over VND12.6 trillion. Among these, businesses owing substantial amounts in land-related taxes constitute a significant portion, while real estate sector entities have accrued a substantial debt in corporate income taxes, amounting to VND4.2 trillion.

Government proposes extending fuel environment tax cut to late 2024

The Government has asked the National Assembly Standing Committee for approval of an extension of the environment tax cut for fuel until the end of next year.

As per the proposal, the environmental protection tax would be VND2,000 per liter for gasoline, VND1,000 for jet fuel, diesel oil, heavy fuel oil, lubricating oil, and lubricant grease, and VND600 for kerosene. Should these tax rates be approved for extension, consumers would benefit from a reduction of VND1,000 to VND2,200 for every liter of gasoline and VND660 for each liter of kerosene.

Commencing on January 1, 2025, the tax rate would be increased to the ceilings of the respective tax rates. Specifically, the tax for gasoline would be VND4,000 per liter; jet fuel to VND3,000 per liter; diesel oil, heavy fuel oil, and lubricating oil to VND2,000 per liter; kerosene to VND1,000 per liter; and lubricant grease to VND2,000 per liter.

It is estimated that environmental tax revenue from fuel would decrease by VND38,929 billion annually due to this reduction. However, the Government underlines the importance of reducing the environment protection tax, as this policy is expected to maintain local fuel prices at stable levels and provide support to businesses, ultimately aiding in inflation control and ensuring macroeconomic stability.

The current environment protection tax rates are 50% lower than the tax bracket and these rates have been in effect since April 1, 2022 and will revert to these original levels on December 12, 2023 if the extension is not approved.

Expressway project faces sand shortage though completion deadline nears

The My Thuan-Can Tho Expressway project, slated for completion by December 31 this year, is facing a significant sand shortage.

Approximately 92,000 cubic meters of sand is still required to complete various elements of the project, particularly the collecting road systems and overpasses, while the main route of the expressway has been finished.

The Ministry of Transport estimated that the entire project requires 3.2 million cubic meters of sand. An Giang Province has already provided 756,000 cubic meters of sand, making a substantial contribution to the completion of the main route.

In mid-November, the Ministry of Transport held discussions with authorities from An Giang, Dong Thap, and Vinh Long provinces to explore additional sand supply options for the project.

During the meeting, the ministry urged An Giang to prioritize supplying 44,000 cubic meters of sand from the dredging of Vam Nao River’s currents. Initially intended for other projects, this sand allocation was requested to address the urgent needs of the My Thuan-Can Tho Expressway project.

The 23-kilometer My Thuan-Can Tho Expressway passes through Vinh Long and Dong Thap provinces and requires an investment of over VND4,800 billion.

The project’s first phase commenced in February 2021, with completion scheduled for December this year. Once operational, the southern expressway system will speed up travel time between HCMC and Can Tho City, connecting various components, including HCMC-Trung Luong, Trung Luong-My Thuan, My Thuan 2 Bridge, and My Thuan-Can Tho.

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