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Despite the slight improvement in volume to 13.4 million units, this figure is still comparable to the 2015 market when it was still in a growing phase.
In the last quarter of 2022, the market took a sharp downturn, with a 50.3% drop year over year to 2.6 million units, the lowest figure recorded since the third quarter of 2021, when the industry grappled with supply chain disruptions due to the COVID-19 pandemic.
Consumer demand weakened considerably, exacerbated by high inflation and economic uncertainties. The underwhelming figures come as a surprise as the fourth quarter of the year is typically a robust period for the market.
Apple was a bright spot in 2022, being the only top smartphone vendor to weather the decline with a positive growth due to the high demand for the iPhone 14 series despite the production issues in China affecting the iPhone 14 Pro and iPhone 14 Pro Max supplies.
Samsung declined 4.9% quarter over quarter, but it made a remarkable effort in the market downturn. Its Galaxy A-series phones contributed the largest to Samsung's shipments, with the Galaxy A04, Galaxy A13, and Galaxy A23 being the most popular. Samsung's share increased to 40.4% in 4Q22 from 34% in the third quarter of 2022.
OPPO kept its second position with a 21.3% share by units in the last quarter of 2022, despite a slight 0.3 percentage point drop quarter over quarter. Its shipments declined for the second straight quarter with a 21% and a 38.9% year-over-year drop. OPPO's affordable smartphone range, such as the A17k, A57, A77s, and A17, were the main workhorses across its portfolio.
Apple was a bright spot as its shipments increased 42.7% quarter over quarter in the fourth quarter of 2022. The new iPhone 14 series drove the growth of Apple in Vietnam despite production issues. Apple's overall shipments grew 23.6% year-on-year for 2022, broadly outperforming the market downturn.
Vivo faced a steeper shipment drop of 80.7% year-on-year and 49.5% quarter over quarter in the fourth quarter of 2022, resulting in a more cautious approach and supporting sales by offering discounts and/or other activities. Vivo finished in the last quarter of 2022 with a 6.3% share, a decline from a 9.9% share in the previous quarter.
Xiaomi's shipments dropped down to 138,000 units in the fourth quarter of 2022, a decline of 74.8% year-on-year and 71.0% quarter over quarter as its share declined to 5.4% from 14.9% in the previous quarter. Its Redmi A1, Redmi 10C, Redmi Note 11/Note 11 Pro, and Redmi 9C represented the largest contribution of all Xiaomi smartphone shipments in the fourth quarter of 2022.
Vietnamese enterprises ready for digital transformation
The impacts of COVID-19 and the complexity of the global situation have boosted Vietnamese enterprises in many industries, and they will continue to pursue digital transformation in 2022.
Orientation and strategy, people and organisation, and customer experience and omnichannel are the three aspects with the best digital transformation readiness, according to the Annual Report on Enterprise Digital Transformation 2022: "The readiness of Vietnamese enterprises for digital transformation."
The report also showed that there are eight key technologies – mobile internet, cloud computing, big data, artificial intelligence, fintech, IoT, advanced robotics, and additive manufacturing – that are likely to help Vietnamese businesses transform.
In 2022, the number of surveyed businesses that are conducting digital transformation showed signs of increasing, and many businesses have also spent more or less on this activity after learning, researching, and consulting information in 2021. This change is mainly due to rising awareness, skills, and experience related to the community of leaders and human resources of the enterprise, the report stated.
According to the report, businesses have made a breakthrough in applying digital technologies in marketing, distribution, and omnichannel to enhance customer experience and care.
The readiness of businesses is also positive, with 12 out of the 16 surveyed industries scoring above the average rate of 2.5.
This means that most of the surveyed industries have been developing digitalisation goals in strategic planning, and creating management positions or separating digital transformation projects.
Industries with the highest rates of readiness in digital transformation are all those whose activities are closely related to production, goods transportation, and services, such as agriculture, forestry, and fishery; the manufacturing and processing industry; wholesale and retail, repair of motor vehicles; accommodation and catering services; or construction.
Agriculture, forestry, and fisheries have a readiness of 3, wholesale and retail have a readiness of 2.9, and manufacturing and processing have a readiness of 2.8, the report showed.
Trinh Thi Huong, deputy director of Enterprises Development Agency, said: "The annual report on digital transformation of enterprises 2022 aims to raise general awareness of some technology trends in the world, understand the status, readiness of digital transformation, and learn from stories of digital transformation. This will help each business build its own appropriate digital transformation strategy, contributing to improved business efficiency and competitiveness."
The report, which is the result of a survey of 1,000 enterprises from various fields and industries across the country, was released on Thursday by the Enterprises Development Agency, which is part of the Ministry of Planning and Investment, and the US Agency for International Development (USAID).
Fruits face slow consumption due to excess of supply over demand
The prices of oranges and some fruits in the Southern and the Northern regions have dropped dramatically while the demand for purchase from merchants and consumption remains low.
The information was shared by Nguyen Nhu Cuong, Director of the Department of Crop Production under the Ministry of Agriculture and Rural Development after the article of “Oranges and pineapples are ripe amid sluggish consumption" published by Sai Gon Giai Phong (SGGP) Newspaper on February 18.
In recent years, the area of growing oranges has increased sharply although authorities have issued warning about the risk of disrupting the planning and excess of supply over demand.
Various kinds of oranges in Vinh Long, Ha Giang and Tuyen Quang provinces are mainly consumed in the domestic market, mostly in the Southern region in these days of scorching weather.
Currently, oranges cannot be exported due to complicated procedures so farmers mainly expect traders to buy the products for domestic consumption, added Mr. Nguyen Nhu Cuong.
Director of the Department of Crop Production Nguyen Nhu Cuong also mentioned the solutions regarding the issue. Notably, it is important to adjust the planning of citrus plants.
For a long time, the media and social networks have only focused on providing information about how farmers have earned benefits from growing oranges without sharing the difficulties and limitations of this plant. Farmers have long concentrated on growing oranges and citrus fruit crops.
In many localities, the actual area for growing oranges and citrus plants has exceeded the planning. For example, the planning of growing oranges in the Mekong Delta province of Vinh Long has been expanded from 12,000 hectares to 17,000 hectares while the capital city of Hanoi has developed from 2,000 hectares of citrus plants to 10,000 hectares accounting for 50 percent of the total area of fruit trees.
Currently, there are 125,000 hectares of growing fruit trees in the whole Northern region.
Vietnam to add value to vegetable and fruit
Capital shortage and backward technology have been blamed for the underdevelopment of vegetable and fruit processing in Vietnam.
The Vietnam Fruit Association has called on the Government and concerned ministries and sectors to have policies to encourage investment and support the development of fruit and vegetable processing with capital and technology transfer.
Secretary General of the association Dang Phuc Nguyen said it is necessary to strengthen the control of growing areas, the quality of materials and seedlings, and the course of production and processing to ensure product quality.
The Ministry of Agriculture and Rural Development will soon submit to the Government mechanisms and policies improving the connection of the production, processing, and consumption stages within the framework of value chains and encourage businesses with the financial and technological potential to lead this process.
Companies and cooperatives are expected to shift production towards thorough processing, thereby increasing the proportion of high-value-added products.
Vietnam produces some 31 million tons of vegetables and fruits annually, but only 1.1 million tons are processed with modern technology in 150 factories across the country.
About 7,500 micro-factories or households process about another 3.4 million tons, but their quality does not meet export requirements.
According to the Ministry of Agriculture and Rural Development, up to 76% of vegetables and fruits are exported fresh or semi-processed, while the world's consumers are leaning towards processed ones.
It is the reason why Vietnam's fruit and vegetable export volume only reached US$3.34 billion in 2022, including more than US$1 billion in processed products.
Chairman of the Board of Directors cum Director-general of Dong Giao Foodstuff Export JSC., Dinh Cao Khue said processing the fruit and vegetable will help control prices and increase product value by 3 – 4 times compared to fresh items.
However, he said it requires significant investments, while most companies in the sector are small-scale (80% of facilities have less than VND2 billion).
According to Chairman of the Board of Directors of Nafoods JSC., Nguyen Manh Hung, the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade plan to work out policies on preferential loans for enterprises in the sector to invest in cold storage, technological innovation, and development of vegetable and fruit processing factories.
Circular economy gains momentum back home
The circular economy has begun to gain traction in Viet Nam for its potential to optimise resource use, stabilise supply, and offer competitive advantage opportunities for businesses.
Pham Minh Thien, general director of Thanh Binh Company Ltd, revealed that his company's production process had been designed so that waste in one stage becomes fodder for another.
He said his company had bought land in the Tan Hong region to grow a particular strain of rice, which can easily do without fertilisers, pesticides, and crop care. As such, the strain causes a minimal impact on the environment.
At harvest time, its straw is reused as a medium to grow mushrooms whereas its rice husk as a biomass fuel for export. Its rice bran is processed to produce bran oil and animal feed. The residue from this oil-making process is reclaimed to feed poultry.
The circular economy embraced by Thanh Binh Company Ltd has proved to be highly beneficial to its stakeholders, not only economically but also environmentally.
As a result of the sustainable farming practices, the soil cultivated by the company, which was contaminated previously by chemical substances, has been gradually improving in quality.
Nestle Viet Nam Company Ltd is another name that has managed to incorporate the circular economy into its production.
The company has put coffee grounds to good use by turning them into biomass, which is used to fuel its boilers. The ash left after the combustion will serve as a raw material for the production of bricks.
Coffee sludge is processed into microbial fertilisers to enrich the soil, whereas the steam from the boilers goes to the cooling towers for further reuse. Even the wastewater is not wasted: it will be recycled into A-standard clean water to close the production loop.
Tran Thi Hong Minh, head of the Central Institute for Economic Management, asserted that the circular economy would serve businesses well by enabling the efficient use of resources and facilitating their deeper involvement in the global supply chains.
She said the circular economy is no longer an option but an imperative for businesses because global customers have become more eco-conscious and willing to shift toward a more sustainable buying behaviour.
Vu Kim Hanh, chairman of the Association of Vietnamese High-quality Products, opined that the Government needs to take active steps to lay the groundwork for a broad-based transition to the circular economy.
The to-do list should comprise a long-term scheme for the transition and the entry into force of a sufficient number of legal documents that regulate the notion.
She also said the feasibility of the circular economy in the country would hinge on technological, institutional, infrastructural, and human resources factors.
Nguyen The Chinh, director of the Environmental Economic Policy Institute, underlined several obstacles in the way of businesses trying to embrace the transition.
The first obstacle involves advanced technology, which is not always readily accessible to a large number of businesses. Without advanced technology at their disposal, many businesses get stuck in their traditional linear way of production.
The second obstacle centres around the rigidity of domestic consumption habits. For instance, a wide range of consumers back home keep using plastic bags for their convenience and show a reluctance to shift gears, posing a setback for recyclable bags.
Uplift in processed fruit and veg sector
Processed fruit and vegetables are making up a growing percentage of fruit and vegetable exports, leading to potential for increased investment in the sector.
According to the Agency of Foreign Trade (Ministry of Industry and Trade), exports from Vietnam's fruit and vegetable sector in 2022 were seriously impacted by China's pandemic strategy and totalled just $3.34 billion, a decrease of over 6 per cent on-year. According to analysts, however, the structure of Vietnam's fruit and vegetable exports has undergone favourable adjustments, with the share of processed goods growing substantially.
The $3.34 billion in exports comprised approximately $2.3 billion of fresh and frozen products and just over $1 billion in processed fruit and vegetables, surpassing that mark for the very first time. This has provided impetus to invest in strategically designed and certified processing factories and growing areas in order to quickly achieve the $2 billion export goal.
The growth rate of processed fruits and vegetables may be in part due to the increasing number of Vietnamese goods that are satisfying the stringent standards of the US, European Union, Japanese, and Korean markets. It is anticipated that this pattern will continue in the future as more Vietnamese businesses invest in fruit and vegetable processing factories.
Investments in deep processing increase the value of agricultural goods in Vietnam, but this is also a vulnerability of the agricultural sector. The Ministry of Agriculture and Rural Development (MARD) estimates that Vietnam produces over 30 million metric tonnes (MT) of fruits and vegetables annually, but less than 20 per cent gets processed.
According to the MARD, the nation as a whole has 153 fruit and vegetable processing facilities that handle over 30 million MT of vegetable products annually. Therefore, it is necessary to boost investment in processing plants and integrate them into production chains to keep up with global market sentiment.
This means that more than 70 per cent of exported fruits and vegetables are still in the raw or preliminary preservation stage. Although the nutritional requirements of people throughout the globe, and in Europe in particular, are shifting towards processed fruit and vegetables.
According to the Netherlands' Center for the Promotion of Imports from Developing Countries, European imports of processed fruit and vegetables accounted for 45 per cent of worldwide imports in 2020. This explains why Vietnam's fruit and vegetable exports only make up a small fraction of its total export revenue.
As a promising indicator of future growth, an increasing number of significant companies have committed hundreds of millions of dollars to construct processing facilities with contemporary technology. These factories guarantee that items produced for overseas markets fulfil their stringent requirements.
In particular, it is anticipated that Dong Giao Foodstuff's Doveco Son La Factory, with a capacity of 52,000 MT of goods per year, will be put into operation later this quarter, contributing to an increase in revenue compared to the more than $100 million attained in 2022.
Nonetheless, investment in a modern processing facility and cutting-edge equipment must be paired with a variety of other elements. It is not rare for manufacturing plants to be operating at only 60 per cent capacity, either because the plant is not conveniently located near a sufficient raw material source or because the raw materials do not adhere to requirements.
Nguyen Manh Hung, general director of Nafoods Group, said, "If raw materials are plentiful, that's great for the processing facility, but the quality of commodities may not be consistent, or high levels of pesticide residuals remain in the product. This results in post-processed commodities that can only be supplied to low-value markets".
Hung stated that these deficiencies must be remedied swiftly in order to advance towards a more sophisticated manufacturing and export business that generates greater actual value.
According to European Statistics, the global market for processed fruit and vegetables is expected to reach $392 billion by 2025. Vietnam mostly exports fresh fruit to the Chinese market. Exports to the markets of the European Union, the United States, Japan, and Australia are still restricted since the preservation stage has not yet satisfied their standards and the expense of air transport makes it difficult to compete.
Can Tho seeks to build new bridge to Dong Thap
The Mekong Delta city of Can Tho has proposed building O Mon bridge over the Hau river to connect the city with Dong Thap province.
According to a document signed by Vice Chairman of the municipal People’s Committee Nguyen Ngoc He on February 20 sent to the Ministries of Planning-Investment and Finance, the proposed bridge will have a total length of 5.4km including the access roads, starting at the intersection with National Highway 54 in Dong Thap province and ending at the interchange with provincial road 920 in Can Tho City’s O Mon district.
The project will require nearly 9.2 trillion VND in investment (374 million USD), with over 7.2 trillion VND to be sourced from Japan’s official development assistance loans and the remainder from the city’s budget and other sources.
The province also proposed executing the project in the 2023-2030 period.
O Mon bridge, coupled with a road connecting O Mon district and Thoi Lai district in Can Tho with Giong Rieng district in Kien Giang province and a route linking O Mon and Sa Dec in Dong Thap, will form a regional route and boost socio-economic development in the Mekong Delta region, according to the municipal government.
Can Tho has two bridges over the Hau river. Can Tho bridge connects the city with Vinh Long while Vam Cong bridge links the city with Dong Thap.
However, the city government said that a distance of 50km between the two bridges is not convenient for regional connectivity. Besides, the longer travel time for vehicles increases greenhouse gas emissions, leading to climate change.
As such, the O Mon bridge project will create a safe and effective route, reducing environmental pollution and traffic accidents, the Can Tho government said in the document sent to the ministries.
Swiss daily: Vietnam becomes a new destination for foreign companies
Swiss daily Tribune de Gèneve has recently published an article hailing Vietnam as a new destination for foreign companies.
The article said Vietnam recorded the strongest economic growth in Asia in 2022 following a period of closure due to the COVID-19 pandemic. Switzerland is well-positioned to leverage advantages brought about by the Vietnamese economy. Two-way trade between Switzerland and Vietnam hit about 3.2 billion USD in 2020.
Hundreds of Swiss companies have been among the most important European investors present in Vietnam. In particular, the Swiss industrial equipment sector should fully tap the growing trend of "Made in Vietnam" products.
According to the article, the industrial boom in Vietnam could be clearly felt when entering the Van Trung Industrial Park, which is an hour's drive to the north of Hanoi. Early in the morning, many people were lining up in front of recruitment office of Foxconn - the most famous subcontractor for Apple. In front of a large dormitory for workers, there is also a large poster with a notice that Foxconn is recruiting 10,000 employees with favourable working conditions.
Foxconn is not the only factory hiring a large number of workers. Not far away, LuxShare, a competitor, is announcing that it will recruit 13,000 new employees. An automobile supplier is seeking 700 eligible positions while a solar panel manufacturer is announcing the recruitment of 6,000 positions.
Large industrial zones are being built and taken over by advanced electronics manufacturers, said the article.
The Republic of Korea's electronics conglomerate Samsung inaugurated a brand new research and development centre in Hanoi in December 2022. It also plans to invest around 3.2 billion USD to produce semiconductors in a neighbouring province. The US’s semiconductor equipment company Amkor Technology will soon open a factory near the airport. And Pegatron of Taiwan (China) that produces components for electric carmaker Tesla and assembles iPhones, has recently begun operations near Ha Long Bay.
The article attributed Vietnam's above-said attraction to various factors such as a stable investment environment, 15 free trade agreements, including one signed in 2020 with the European Union (EU), helping Vietnam become a hub of industrial production at affordable costs.
Vietnam is being rated by foreign investors as a top priority for investment. Therefore, the country will continue to witness the emergence of super factories in the future, it concluded.
Over 200 booths to represent Vietnam at 20th CAEXPO
Vietnam is set to be represented by over 200 booths at the coming 20th China-ASEAN Expo (CAEXPO), the biggest number of booths it will have at this annual event so far.
CAEXPO, first held in 2004, plays a highly important role as it provides a chance for Vietnam to advertise product brands in the southern Chinese market and promote exports to the neighbouring country.
This year’s CAEXPO is scheduled to take place in Nanning city of China’s Guangxi province from September 16 to 19, after three years held online due to the COVID-19 pandemic.
Covering 122,000sq.m. both indoor and outdoor, it will feature six main zones, namely a zone for displaying products of ASEAN countries and China, an exhibition zone for their outstanding cities, a zone for investment cooperation exhibition, and the other three for showing agricultural cooperation, new technologies, and trade services.
Besides, more than 100 investment and trade promotion events, along with conferences and workshops of the 10 ASEAN countries and others will also be held.
The expo, which will mark the 20th anniversary of both the China-ASEAN strategic partnership and CAEXPO, will also re-activate the ASEAN economic ministers’ forum, according to CAEXPO Secretary-General Wei Zhaohui.
Le Hoang Tai, Deputy Director of VIETRADE, said that with the in-person format resumed, the 20th CAEXPO will be a big rendezvous for ASEAN and Chinese enterprises as well as others around the world. It will enhance enterprises’ trust in the recovery and development of trade and investment partnerships.
VIETRADE will coordinate with other agencies of Vietnam to arrange the participation in the expo and create the best possible for Vietnamese firms to take part in this event with the most fruitful results, he noted.
Vietnam’s rice sector expected to win big with exports in 2023
Vietnam’s rice sector is expected to hit big from exports this year, heard a conference held by the Ministry of Industry and Trade (MoIT) in Ho Chi Minh City on February 21.
Speaking at the event, the Director of the MoIT’s Department of Export and Import Pham Van Chinh said thanks to the Government’s timely support, Vietnam exported 7.13 million tonnes of rice last year, up 13.8% in volume and 5.1% in value annually, making it among the top three rice exporters globally.
This year, Vietnam’s rice export is estimated at about 6.5-7 million tonnes thanks to higher demand for Vietnam’s quality rice.
According to the Vietnam Food Association, Vietnam’s rice export prices maintained growth in the first two months of this year.
Rice production for export is mostly in the Mekong Delta while that in other regions is mainly for domestic consumption, said the Ministry of Agriculture and Rural Development (MARD)’s Department of Crop Production.
Deputy Director of the Can Tho municipal Department of Industry and Trade Tran Minh Kiet said since the beginning of this year, exporters have fulfilled signed contracts and struck new deals. The agreements have been mostly shipping jasmine rice to the Philippines, Ghana, Cameroon, Ivory Coast, and especially the Republic of Korea.
Deputy Director of the An Giang provincial Department of Industry and Trade Nguyen Thanh Huan proposed that the MoIT continue assisting localities with market information as well as inviting domestic and foreign importers to localities for the purchase of agro-fisheries.
Besides, the MoIT and MARD suggested China hold more trips to Vietnamese localities to grant licenses to eligible businesses to export rice to the country.
Regional automotive trade fair to open in HCM City in June
Automechanika 2023, a regional trade fair for the automotive service industry, will take place at Saigon Exhibition & Convention Centre (SECC) in Ho Chi Minh City from June 23 to 25.
More than 400 exhibitors are expected to join the event, which is co-organized by Messe Frankfurt (HK) Ltd, Chan Chao International Enterprise Group, and Yorker Exhibition Service Vietnam.
Speaking at the press conference announcing the event on February 21, Calvin Lau, director of Messe Frankfurt (HK) Ltd, said that Vietnam is in a special position in the development of electric vehicles thanks to the transformation in automobile manufacturing, electrification, and digitalization.
Opportunities are open for businesses to participate in the supply chain in Vietnam and the global automotive industry.
To accelerate the development, the Government of Vietnam has launched many initiatives to support the public and private sectors, with priorities given to investment plans and tax incentives.
Automechanika Ho Chi Minh City 2023 is expected to attract more than 400 businesses from countries including Germany, China, Singapore, Malaysia, Taiwan (China), Japan, the Republic of Korea, Thailand, and Vietnam who will display products in automobile manufacturing, automotive maintenance, accessories, customization, and connected technology.
Domestic and foreign speakers will talk about Automechanika exchange and connection, smart factories and the fourth Industrial Revolution, electrification, and digitization.
Int’l trade fair for construction, mining, transport to take place in April
The Vietnam International Trade Fair for Construction, Mining & Transport - Machinery, Equipment, Technology, Vehicle & Material (Contech Vietnam 2023) will take place in Hanoi from April 21-24, the organisers announced on February 21.
The fair is expected to draw the participation of exhibitors and brands from Germany, Spain, Japan, Sweden, the US, the Republic of Korea, China, Taiwan (China), Thailand, Australia, Singapore and Vietnam.
Le Anh Duc, a representative of the organisers, said that the event will not only offer a venue for businesses to introduce and promote their brands, but also create conditions for investors and businessmen to exchange information, seek partners, and boost trade promotion.
On the sidelines of the fair, there are several seminars and business matching activities.
Recalculating base prices and retailers' bonus key to stabilise fuel market: MPI
Recalculating base fuel retail prices and granting retailers a minimum bonus were among a number of suggestions made by the Ministry of Planning and Investment (MPI) as measures to put a stop to fuel retail disruption, as seen last year and earlier this year, across the country.
"The underlying cause behind disruptions in the domestic fuel market in recent months could be attributed to an inadequate calculation of the base fuel retail prices, which have resulted in retailers voicing concerns over prolonged financial losses and hurt their incentives to push sales," said the ministry in a public statement.
The ministry advocated for the current fuel management system but stressed the importance of implementing a revised calculation of retail prices, which should cover most, if not all, costs incurred by retailers' operations.
Meanwhile, reviews must be conducted on fees shouldered by retailers and how often they must pay them. The goal, according to the ministry, is to reach a balance among all of the sector's stakeholders.
In addition, the ministry supported establishing a minimum bonus regime for retailers, to serve as an incentive for sales, which aims at letting the market sort out supply and demand issues and to lessen the central government's role in it.
Retailers bear most of the responsibility in the distribution and quality of fuel and should be held accountable in the events of accidents and malfeasance, said the ministry. Having multiple suppliers, given the nature of the merchandise, will likely make it difficult for governmental agencies to enforce quality control measures.
"However, having only one supplier may also lead to difficulties in ensuring supply on retailers' part, especially during supply shortage as seen in previous months," said the ministry.
MPI, therefore, suggested that the Ministry of Industry and Trade develop measures to allow retailers to purchase from multiple suppliers while implementing stronger product origin regulations.
Regarding the country's fuel stabilisation fund, the MPI supported the continuation of the fund but stressed the central government should only intervene in the event fuel price fluctuate enormously within a 7-10 per cent margin.
According to the General Department of Vietnam Customs, the Southeast Asian country imported more than 1 million cubic metres of fuel in January alone, a 9 per cent increase compared to December 2022.
Imported fuel's average price was estimated at US$889 per cubic metre in January, a $17 hike from December 2022 and a 21 per cent increase from the same period last year.
The country imported nearly 9 million cubic metres throughout 2022, paying $9 billion, a 28 per cent increase in quantity and a 220 per cent increase in value compared to the year 2021. The average fuel price for 2022 was estimated at $1,007 per cubic metre, a 67 per cent increase from the same figure of the previous year.
Localities slowly approve investment of four key transport projects
The Ministry of Transport said that the investment policy of some component projects under four key transport projects of localities has not been approved yet causing the lateness of the whole projects' progress.
Of these, the Khanh Hoa – Buon Ma Thuot Expressway Project was required to complete the approval of the investment policy on January 20 of 2023. However, the investment policy of its component projects has not been approved so far.
The main reason is that the second component project travels through mountainous and rocky areas with a high risk of depression and landslide and the total investment is expected to lack around VND900 billion (US$38 million). Therefore, the Ministry of Transport is working with the two provinces of Khanh Hoa and Dak Lak to balance and adjust the total investment without exceeding the approved investment benchmark.
As for the Ring Road No.3 project in Ho Chi Minh City, the province of Dong Nai has not approved its component projects managed by the locality due to slow implementation on submitting the environmental impact report. As for Chau Doc – Can Tho – Soc Trang Expressway Project, the province of An Giang has not approved the first component project due to prolonged assessment.
The Ministry of Transport required the People’s Committee of An Giang to complete the project approval in February 2023.
As for the Ring Road No.4 project in the capital city of Hanoi, the approval of component projects of parallel roads, compensation and resettlement have not been implemented in the localities of Hung Yen, Bac Ninh and Hanoi.
The Ministry of Transport consulted the Government on directing relevant ministries, agencies, units and localities to soon complete the investment approval to implement the projects as scheduled.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
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