A lack of Vietnamese firms' presence in the Indian market is a shortcoming that has hindered trade between the nations, said Vietnamese Ambassador to India Pham Sanh Chau at a recent seminar.

The event introduced regulations and administrative procedures for setting up joint ventures in India, with Manan Agarwal, director of Indian consulting firm KrayMan Consultants LLP, as its keynote speaker. It was the first to be held among the 50 planned by the Vietnam Trade Office in India to provide information on the Indian market and trade promotion and investment in India in a bid to boost bilateral trade, given the two countries’ celebration of the 50th anniversary of their diplomatic relations this year (1972-2022).

Representatives of more than 50 Vietnamese companies, including five with intention for such joint venture establishment, participated in the seminar, where experts fielded their queries, particularly regarding India’s FDI attraction policies and the process for establishing a Vietnamese company in the country.

The Vietnam – India trade topped 13 billion USD for the first time in 2021, turning India into the 8th biggest trade partner of Vietnam. A goal has been set for the figure to hit 15 billion USD in the time to come.

German enterprises plan to expand business in Vietnam

Despite being affected by the COVID-19 pandemic, German firms have planned to expand their business in Vietnam, Alexander Goetz, Chairman of the German Business Association (GBA), has said.

According to Goetz, Vietnam remains a strategic investment destination for European corporations and enterprises. More than 65 percent of the respondents of a recent survey conducted by the German Chamber of Commerce (AHK) believed that the Vietnamese economy would recover in 2022.

Over the last year, the number of new investments from German companies was quite low. This, however, did not reflect a decrease of interest of German investors in doing business in Vietnam. It is just simply a slowdown due to travel restrictions and lockdowns.

The EVFTA is a key driver for the optimism of German companies in Vietnam. It gives European companies better opportunities to expand further in the market, he told Dau tu (Vietnam Investment Review).

HCM ranks first in January exports

Ho Chi Minh City exported 4.1 billion USD worth of goods in the first month of 2022, surpassing the northern province of Bac Ninh to become the largest export locality in the country, according to the General Department of Customs.

This is the second consecutive month the country's biggest hub has lead the nation in export turnover.

The department reported that Vietnam’s export turnover in January hit 30.84 billion USD, 2.3 billion USD higher than that of January last year.

The country enjoyed a trade surplus of 1.4 billon USD in the period, it added.

Notably, the export value of a series of farm produce witnessed two-digit growths compared to the same period last year, including seafood (up 34.3 percent), coffee (32 percent), and rice (29 percent).

Bamboo Airways to launch Vietnam-Singapore route next month

Bamboo Airways will launch the Vietnam-Singapore route from March 24, part of the carrier’s plan to expand its international network to 40 this year.

The move is to meet a rising travel demand and help bolster economic recovery in the post-pandemic period.

Bamboo Airways on February 16 inked a memorandum of understanding on CFM56-5B engines maintenance worth 60 million USD with SR Technics, and an agreement with Boeing Digital Solutions.

The carrier also discussed the purchase of the aerospace company’s latest fuel-efficient wide-body Boeing 777X.

The airline will increase flights to Laos, Cambodia and the US in the coming time.

Vietnam sees opportunities for spices exports to India

The Vietnam Trade Promotion Agency’s Export Promotion Center (PROMOCEN) has announced a virtual event to take place later this month serving trade connection between Vietnam and India regarding spices and flavourings.

Accordingly, the two-hour networking is slated for February 23 and expected to gather about 40 Vietnamese and Indian firms.

The participants will inform each other on their respective markets, particularly in terms of advantages and obstacles; and introduce their products and strengths to potential importers.

The organisation of the event sees the coordination of PROMOCEN, the Indian Embassy in Vietnam, and the Spices Board of India.

Reference exchange rate down 6 VND

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at 23,113 VND/USD on February 17, down 6 VND from the rate on the previous day.

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,806 VND/USD and the floor rate 22,420 VND/USD.

The opening-hour rates at commercial banks saw fluctuations.

At 8:30am, Vietcombank listed the buying rate at 22,590 VND/USD, up 20 VND, and the selling rate at 22,900 VND/USD, down 20 VND from February 17.

Meanwhile, BIDV kept both rates unchanged from the previous day, listing at 22,610 VND/USD (the buying rate) and 22,890 VND/USD (the selling rate).

Vietnam enjoys positive signals in foreign investment in 2021: experts

Despite challenges prompted by the complex developments of COVID-19, Vietnam saw positive signals in foreign investment in 2021, according to an article published on the foreign investment consulting firm Dezan Shira & Associates’ Vietnam Briefing website.

It cited statistics of the Ministry of Planning and Investment, which showed that Vietnam granted permission to 1,738 new projects last year, posting a year-on-year plunge of 31.1 percent. However, registered capital hit 15.2 billion USD, rising 4.1 percent compared to the previous year.

Economic zones and industrial parks (IPs) attracted 539 foreign direct investment (FDI) projects and 615 domestic ones with combined registered capital valuing at 12.8 billion USD, up 15 percent compared to that in 2020.

Regarding Vietnam’s perspectives in 2022, the article believed that thanks to competitive labour costs, preferential tax and investment policies, and its geographically strategic location, the country has become one of the go-to destinations for multinational companies’ manufacturing and assembly needs.

In the year ahead, Vietnam is expected to recover to pre-COVID growth. Vietnam’s role as a low-cost manufacturing hub is expected to continue to grow, helped by the further expansion of existing major industry sectors.

HCM City-Kuala Lumpur air route to re-open on February 17

Vietnam Airlines said it will resume Ho Chi Minh City - Kuala Lumpur (Malaysia) air route from February 17.

This is the first regular international route to be re-opened by the national flag carrier after the Civil Aviation Authority of Vietnam (CAAV) announced that Vietnam lifted restrictions on the number of international flights from/to Vietnam starting February 15.

Accordingly, the HCM City - Kuala Lumpur flights and vice versa will depart on February 17, 22 and 27, and every Wednesday from March 1.

The airline is scheduled to increase the total number of international flights to at least 95 flights per week from April, and at least 164 flights a week from July this year.

With this plan, all the international air routes of the airline will be re-opened as before the COVID-19 pandemic.

Vietnamese firms seeking long-term partners in South Africa

Vietnamese Ambassador to South Africa Hoang Van Loi has called for the close coordination of the Cape Chamber of Commerce to help Vietnamese firms seek prestigious, long-term partners in Cape Town city and Western Cape province at large.

Loi made the suggestion during his working session with CEO of the chamber John Lawson as part of the diplomat’s working trip to Cape Town from February 8-14.

For his part, Lawson said Cape Chamber stands ready to coordinate with the Vietnamese Embassy and Commercial Affairs Office to boost trade and investment ties between the two countries.

The two sides discussed the organisation of a business-to-business (B2B) event for Vietnamese and South African firms operating in such sectors as furniture, agricultural processing and pottery in May.

Statistics from the Vietnamese side show that the bilateral trade reached 1.27 billion USD last year, of which Vietnam’s export revenue to South Africa was 847 million USD, up 24.3 percent year-on-year.

Among items shipped to South Africa, Vietnamese mobile phones, footwear, laptops, pepper and textiles-garments have posted high export values.

Vietnamese delegation meets Singapore Airshow’s organiser

A delegation from the Vietnamese Ministry of National Defence headed by Lieutenant General Phung Si Tan, Deputy Chief of the General Staff of the Vietnam People's Army, on February 16 joined a working session with Leck Chet Lam, Managing Director of Experia - the organiser of the ongoing Singapore Airshow 2022.

The Vietnamese delegation is attending the eighth edition of the airshow, which is taking place from February 15 to 18, at the invitation of the Singaporean Ministry of Defence.

At the working session, the sides exchanged experience in preparation for and holding of international events.

Tan said the National Defence Ministry of Vietnam highly values efforts made by Experia and its partners for the successful organisation of the airshow amid the negative impacts of COVID-19 on global travel.

Experia’s experience will serve as a precious lesson for the holding of Vietnam’s international defence expo slated for late 2022 hosted by the Vietnamese ministry, he added.

RoK represents largest importer of Vietnamese squid, octopus

The Republic of Korea (RoK) makes up Vietnam’s largest importer of squid and octopus, accounting for 41% of the country’s total export value, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Vietnamese squid and octopus exports to the RoK recovered strongly in the fourth quarter of 2021, with the value rising 20% compared to the same period from 2020 to reach US$82.1 million.

Overall, exports to the market recorded a surge of roughly 7% to reach US$247.9 million in value last year, with frozen octopus accounting for 78% of the total export value.

Data released by the website kita.org indicate that Vietnam is the largest supplier of frozen octopus to the RoK, making up 43% of the overall market share, followed by China with 41%.

China increases rubber imports from Vietnamese market

Vietnam represented the second largest rubber supplier to China, with exports of this product reaching US$2.28 billion, up 27.8% compared to 2020, according to industry insiders.

The nation's share of the rubber market as part of the total import turnover of China in 2021 accounted for 18.2%, representing an annual rise of 16.3%.

The Import-Export Department under the Ministry of Industry and Trade quoted statistics from the General Administration of Customs of China saying that last year saw China's rubber import turnover reach US$12.56 billion, up 14.8% compared to 2020.

Vietnam was also the second largest supplier of natural and synthetic rubber to China, reaching US$1.77 billion with an increase of 16.9% on-year.

The market share of mixed natural and synthetic rubber in the nation also accounted for 39.5% of the total import turnover of China's natural and synthetic rubber mixtures, a sharp rise of 31.8 % from 2020.

Asia-Africa blocs account for 63 per cent of Vietnam's trade turnover in 2021

The Asian and African markets played an important role in the growth of Viet Nam's trade thanks to positive import-export figures in 2021, according to the Ministry of Industry and Trade (MoIT).

Last year, bilateral trade between Viet Nam and the Asia-Africa regions topped US$444 billion, up 23 per cent year-on-year, or 67.3 per cent of the Southeast Asian country's total trade value, according to the General Department of Customs.

Viet Nam's exports to the two blocs hit $165.9 billion, a year-on-year increase of 15 per cent or equivalent to 50.2 per cent of the country's total export turnover.

Among Vietnamese export items recording a strong turnover in 2021 included phones and components with $32.29 billion; computers, electronics and components ($27.32 billion); machinery, equipment, tools and spare parts ($13 billion) and textiles and garments ($10.6 billion).

Viet Nam's exports to major Asian partners such as China, South Korea, Japan and ASEAN all saw high growth rates last year, contributing to the positive growth of the country's exports to the bloc.

January results bode well for improved post-pandemic foreign direct investment

According to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA), Vietnam counted a total foreign direct investment (FDI) inflow of $2.1 billion, an increase of 4.2 per cent on-year, while realised FDI came out at $1.6 billion, up 6.8 per cent as compared to that in the same period last year.

Sixty per cent of the total has been contributed by expanded projects. Around $1.27 billion was added to 71 projects currently underway, up 54.3 per cent in the number of projects and 169 per cent in value. The three largest ones have become good news for provinces such as Nghe An, Bac Ninh, and Phu Tho.

According to the FIA, foreign-invested enterprises have been working well and expanding operations after last year’s tough battles. Thus, the disbursement last month increased by 6.8 per cent on-year.

“Both additionally-registered and share purchases have soared on-year both in the number of projects and total value. So we can see the trust of foreign-invested businesses in the investment climate of Vietnam,” said the FIA’s general director Do Nhat Hoang.

Nguyen Van Toan, vice chairman of the Vietnam Association of Foreign-Invested Enterprises believed that the nation is likely to attract as much as $40 billion of registered FDI this year.

State councils ready to appraise pre-feasibility reports of new expressway projects

Deputy Prime Minister Le Van Thanh on February 15 signed decisions to set up the state appraisal councils for pre-feasibility reports of the Bien Hoa-Vung Tau and the Khanh Hoa-Buon Ma Thuot expressways.

The first stage of the Bien Hoa-Vung Tau project has a length of over 53km and an investment of VND18 trillion ($782.6 million). The expressway is scheduled to be kicked off in 2023 and completed in 2025.

Elsewhere, the Khanh Hoa-Buon Ma Thuot expressway is proposed to have a length of over 117km. It is estimated to cost nearly VND22 trillion ($956.52 million). The construction is expected to begin in 2023 and be completed in 2026.

Indian corporation in partnership with Dai An Group to build a billion-dollar Pharma Park in Hai Duong

In the afternoon of February 15, the Hai Duong Provincial Party Committee held a meeting on the project, during which prominent Indian investors, including SMS Pharmaceuticals Ltd. and Vietnam's Dai An Group, reviewed the proposal and authorised a location for the investment.

SMS is one of the leading pharmaceutical manufacturing companies in India, with world-class facilities and a business presence in over 70 countries.Avantika Contractors Ltd., (India) signed an MoU to work on the infrastructure of India’s venture in Vietnam.

Thanh Mien and Binh Giang districts are identified as strategic sites for the Indian investor, with a combined 960 hectares.

Indian corporation in partnership with Dai An Group to build a billion-dollar Pharma Park in Hai Duong
During the meeting, Hai Duong province thoroughly addressed all of the Indian investors’ requests and any concerns. The provincial officials also vowed to put the strategic plan into action.

A variety of subjects were discussed, including construction materials, renewable energy sources, a one-time land rental payment, site clearing, and legal issues.

The park is expected to be worth $1 billion and one of the largest foreign investment projects in Hai Duong to date.

Taiwanese Jih Sun fund comes to Vietnam to strengthen investment

The Taiwanese Jih Sun Securities Investment Trust is entering the Vietnamese market via VinaCapital Fund Management JSC on a newly launched fund – the Jih Sun Vietnam Opportunity Fund (JSVOF).

In its statement released on February 15, VinaCapital stated that in its initial public offering, which ended on January 19, JSVOF raised $143 million. JSVOF’s custodian is Taiwan Cooperative Bank, ranked as one of the top three banks in Taiwan, according to The Banker magazine.

According to Richard Kao, CIO of Jih Sun, Taiwanese people have long heard about the enormous growth that has been occurring in Vietnam over the past few years.

Viettel employees install equipment at a 5G station

Viettel Construction Joint Stock Corporation will list nearly 93 million shares, valued over VND929 billion, on the Hochiminh Stock Exchange (HoSE) on February 23 under the stock code CTR, according to an announcement of HoSE.

Its reference share price on the first trading session is VND84,500, with a margin of 20%.

Viettel Construction canceled its listing on the Unlisted Public Company Market (UPCoM) yesterday, February 15. On February 14, CTR ended at VND87,000 with nearly 0.73 million shares traded on UPCoM.

The company recently released its financial statements in 2021 with revenue and before-tax profit reaching an estimated VND7.45 trillion and VND472 billion, up 17% and 37% year-on-year, respectively.

Viettel Construction, under military-run telecoms company Viettel Group, was formerly known as Construction Enterprise which was established in 1995.

71 gas stations in HCMC extend business hours

The Dong Nai government has proposed the Government ask for the National Assembly’s approval for the province to retain VND4.57 trillion from the land use fee of the resettlement areas for the Long Thanh International Airport project.

The proposal was aimed at facilitating the province to continue allocating capital for road projects connecting with the Long Thanh International Airport project.

Moreover, the Dong Nai government has proposed the prime minister adjust the feasibility report for some components of the airport project.

Specifically, the province has suggested stopping the execution of two subprojects: the technical infrastructure in the third area of the resettlement area in Binh Son Commune and the social facilities of the resettlement area.

The suspension of the two subprojects will reduce the investment in the airport project by some VND4.1 trillion.

If the province is allowed to retain VND4.57 trillion from the land use fee of the resettlement areas for the airport project, together with VND4.1 trillion saved from the suspension of two subprojects, it will retain some VND8.7 trillion.

International arrivals to Vietnam surge sharply following restriction removal

The Civil Aviation Authority of Vietnam (CAAV) has just said that, by February 15, regular passenger flights to Vietnam from 19 countries and territories were resumed.

The number of the passenger has gradually surged after Vietnam lifted restrictions on international flights starting February 15.

Accordingly, flight routes to the Republic of Korea, China, Taipei (China), Singapore, Thailand, Cambodia, Laos, Australia, Germany, Russia, France, the United Kingdom, the United States, Hong Kong (China), Malaysia, Turkey, Qatar and UAE have been re-exploited.

As for China, airlines are only performing flights carrying passengers from China to Vietnam, meanwhile, the vice versa is still limited due to the country's Covid-19 prevention policy, including applying strict prevention for international flights.

It is expected that the number of passengers planning to travel to Vietnam will continue to surge sharply in the upcoming time thanks to restrictions removal on international passenger flights.

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

VIETNAM BUSINESS NEWS FEBRUARY 16

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