Vietnam’s consumer price index (CPI) in February grew by 0.45 % month-on-month, fueled by higher prices of oil, petrol, gas, and rental houses, the General Statistics Office said on February 28.

This month’s CPI and core inflation increased by 4.6% and 5.08% year-on-year, respectively.

Among the 11 main commodity groups, five marked a month-on-month increase in prices, and the rest registered a decline.

Transport services reported the highest rise of 2.11 % mostly due mainly to a 5.66% increase in oil and petrol cost, followed by housing and construction materials at 1.81% partly because of gas prices being up 14.56% since February 1.

The prices of other goods and services; household equipment and appliances; and medicine and health services inched up by 0.12%, 0.09%, 0.02%, respectively.

In contrast, the cost of education; restaurant services; beverage and tobacco; post and telecommunications services; apparel, footwear and hat; culture, entertainment and tourism were cut by 0.57%, 0.17%, 0.12%, 0.08%, and 0.02%, respectively.

Gen Z, the new cashew nut consumer
     
More than 350 delegates from 40 countries and territories took part in the 12th Vinacas Golden Cashew Rendezvous in HCM City to discuss measures and initiatives to help the cashew industry develop sustainably.

Organised by the Viet Nam Cashew Association and the Vietnam Trade Promotion Agency, the two-day conference starting on February 27, part of a national trade promotion programme, seeks to promote cashew trade and expand markets.

Pham Van Cong, chairman of the Viet Nam Cashew Association, said cashew exports fell by 15.1 per cent to US$3.07 billion last year, marking the end of a decade of growth.

In 2023, the nuts would continue to face low demand, and so the association has set an export target of only $3.1 billion, he said.

The industry would continue with its policy of reducing quantity and improving quality, he said.

Michael Waring, president of the International Nut and Dried Fruit Council (INC), said the resilience of the sector notwithstanding, it is increasingly challenging for companies to maintain production due to the slowing global economic growth and high costs.

He said the INC has created a multi-country dissemination plan that focuses on Gen Z, the new nut consumer, and it is being carried out in China and would next be held in India.

There are 2.47 billion Gen-Z consumers globally, and they would remain the largest consumer group until 2030 and become key drivers of the global market, he said.

They are significant influencers of household purchasing decisions, and health and wellness are their key concerns, and cashew products perfectly dovetail with this, he said.

The cashew and nut industries should strengthen their reach to this generation, he added.

Vu Ba Phu, director of the Vietnam Trade Promotion Agency, said with green production and trade becoming a popular trend globally, the cashew industry needs to be a pioneer in it to meet market demand, ensure traceability of its products and build the value chain to raise its competitiveness in the global market and penetrate demanding markets such as the EU, US and Japan.

Businesses and the industry need to have a methodical strategy for brand building to maximise the value of Viet Nam’s cashew industry, which leads the world in terms of exports, he said.

Vinacas signed an MoU with the Cambodia Cashew Nut Association to mutually develop their cashew industries.

Uon Silot, chairman of the Cambodia Nut Cashew Association, said more than 90 per cent of his country’s raw cashew was supplied to processors in Viet Nam.

He said scientific studies show that Cambodian cashew nut has high-quality in terms of both out-turn and nut size and so its prices are always high.

It hopes to supply more good quality cashew to Viet Nam, he said.

He said his government wants to raise the ratio of raw cashew nut processed in the coming years, and so wants to co-operate with Vietnamese and other foreign companies, who have strength in terms of processing technologies.

Adama Coulibaly, director general of Ivory Coast’s Cashew and Cotton Council, said his country is one of the largest suppliers of raw cashew in the world and wants to co-operate with Viet Nam since it has good processing technology to develop the cashew sector, including by learning from it innovative methods of processing by-products.

Delegates are set to be taken to cashew orchards and processing factories in Tay Ninh and Cambodia after the conference.

Hung Thinh Incons delays dividend payment again

Hung Thinh Incons JSC (HTN) will delay the 2021 dividend payment until 2024, according to the firm’s recent announcement.

The decision aims to secure enough cash for the firm’s business operations, so the new payment date is July 1, 2024, it said.

This is the third time HTN has revised its dividend payment plan. November 25 last year was the due date for the 2021 dividend payment, but it was moved to December 5, 2022, and February 28, 2023.

The dividend would be paid in cash at 12%, meaning shareholders would receive VND1,200 for every share held.

In 2022, HTN posted VND5,465 billion in net revenue and VND88 billion in profit after tax, plunging 11% and 63% over the year-ago period. Its total assets had amounted to VND9,053 billion as of late December 2022, up 18% against the start of the year.

Closing the trading session today, February 27, TNH inched down 2.44%, or VND300, against the session earlier to VND12,000.

Strong selling pressure sent the benchmark VN-Index of the Hochiminh Stock Exchange down 18.31 points, or 1.76% over the earlier session, to 1,021.25, with 66 advancers and 371 decliners.

Trade on the southern bourse soared by 36.76% in volume and 42.49% in value versus the session earlier at 588.6 million shares valued at over VND9.3 trillion, with nearly 74.7 million shares traded in block deals contributing about VND1.6 trillion to the overall value.

In the VN30 basket, the picture was somber as 28 stocks declined while only two made gains, making the VN30-Index lose 18.96 points.

Stocks of the seafood sector faced the steepest fall today, with ABT and ANV dipping to their lower limits, while IDI, VHCC, ACL and CMX dropped 6.4%, 6%, 4% and 3.6%, respectively.

Steel stocks continued taking the lead by liquidity, with 31.1 million HPG stocks and nearly 20.4 million HSG stocks of local steelmaker Hoa Phat Group and Hoa Sen Group changing hands.

The Hanoi Stock Exchange saw 44 winners and 122 losers, making the HNX-Index lose 4.06 points, or 1.96%, to 203.27.

Over 67.3 million shares valued at nearly VND944.5 billion were traded on the northern bourse, of which 2.35 million shares worth over VND67.7 billion were transacted in put-through deals.

Da Nang to launch this year's tourism stimulus programme

The central city of Da Nang’s Tourism Department has issued a plan to launch a tourism stimulus programme for this year. 

Themed “Enjoy Da Nang now”, the programme will treat holidaymakers with sea and resort tourism services, entertainment, food tasting and shopping experiences.

The city will offer about 10,000 free vouchers at local destinations, as well as launch the "Happy hour" programme to offer discounts and promotions at eateries, spa and massage parlors, and shopping outlets.

All local hospitality providers are eligible to join in the programme which will focus on key markets such as the Republic of Korea (RoK), Japan, Malaysia, Thailand, Singapore, China and domestic markets like Hanoi, Ho Chi Minh City, the eastern and southwestern provinces, and the northern provinces.

According to the department, a number of large-scale events will be held from March to December such as Quan The Am and hiphop festivals, Radikal Forze Jam, and the opening of the 2023 Da Nang beach tourism season. The Vietnamese University Games (VUG) will also open during the event,  as will the National Beach Handball Championship, the IRONMAN 70.3 Vietnam, SPRINT and IRONKIDS 2023 competitions, the Vibe Half Marathon 2023, the Da Nang Asian Film Festival 2023, the Da Nang International Yoga Festival 2023, and finally the Vietnam - Japan and Vietnam – RoK cultural exchanges.

Night-time entertainment activities are also planned, such as Dragon Bridge's fire and water shows every Friday, Saturday and Sunday, cruises on the Han River on tourist boats, and night markets to serve tourists.

Cultural and festival activities on both sides of the Han River include street music and dance shows, Bai Choi singing, performances featuring traditional Vietnamese musical instruments, traditional folk dances, dance competitions, flash mobs, music bands and contemporary dancing.

Major tourist attractions such as Sunworld Ba Na Hills, Than Tai mountain and Mikazuki Resort and Spa will offer various discounts to attract visitors during the holidays.

Trade ministry supports businesses to boost exports to China

The Ministry of Industry and Trade (MoIT) has said that it will organise a wide range of trade promotion activities to support businesses in exporting their products to China.

Vu Ba Phu, Director of the Ministry’s Trade Promotion Authority, said that despite serious impacts of the COVID-19 pandemic, economic and trade cooperation activities have developed continuously, stressing that China remains Vietnam's largest trade partner and import market.

In the coming time, the ministry will continue coordinating with localities and the Ministry of Agriculture and Rural Development to guide enterprises to complete export documents through official channels to better exploit this market.

The ministry is also planning to coordinate with Vietnamese and Chinese agencies to hold the first Vietnam-Shanghai Trade Forum on exporting Vietnamese agricultural and seafood products to China through Shanghai port. The event, slated for April in Hanoi, will become annual to boost the two countries’ economic and trade development.

According to the Vietnamese Trade Office in China, since China’s full reopening of its door on January 8, the country has loosened its policies on entry and exit and import and export activities. Therefore, commercial activities in general and trade promotion ones in particular have basically been resumed as before the pandemic.

Vietnam posts trade surplus of US$2.82 billion over first two months

Vietnam is estimated to have recorded a trade surplus of US$2.82 billion during the initial two months of the year, according to the latest report released by the General Statistics Office (GSO) on February 28.

February alone witnessed the country’s export turnover surge by 9.8% to US$25.88 billion from the previous month, witnessing a trade surplus of US$2.3 billion. Of the figure, the domestic economic and foreign-invested sectors grossed US$6.08 billion and US$19.8 billion, up 11.7% and 9.3%, respectively.

In the first two months of the year, the country’s export turnover dropped by 10.4% to US$49.44 billion against the same period from last year. Eight items brought in an export turnover of over US$1 billion each, accounting for 69.9% of the total export turnover.

Meanwhile, February’s import turnover stood at an estimated US$23.58 billion, down 6.7% year on year. Of which, the domestic economic and FDI sectors witnessed declines of 7.2% and 6.4%, respectively.

Generally, the import turnover of goods during the two-month period endured a decline of 16% to US$46.62 billion against the same period from last year.

The United States remains the largest Vietnamese export market with an estimated turnover of US$13.1 billion, while China represents the largest importer of Vietnamese goods with an estimated turnover of US$14.6 billion.

MB Cambodia Bank debuts as commercial lending institution

The MB Cambodia Bank, Public limited Company (MB Cambodia) officially launched its services on February 27 as a commercial bank wholly invested by Vietnam’s Military Commercial Joint Stock Bank (MB).

Addressing the ceremony in Phnom Penh, MB Vice Chairman and Director General Luu Trung Thai said realising opportunities in the retail and digital banking segments and with cooperation from strategic partners, MB leaders decided to transform the branch in Cambodia, founded in 2011, into a commercial bank. The move received approval from the Vietnamese Government and Cambodian authorities, especially the National Bank of Cambodia.

MB Cambodia is now operating as a commercial bank with a long-term vision of supplying diverse banking services for clients. Its main products and services include retail banking services for individuals and corporate banking services for organisations, he noted.

Vietnamese Ambassador Nguyen Huy Tang held that MB Cambodia has been present in Cambodia for more than a decade, and its transformation into a commercial bank is an important turning point marking MB’s development to the regional level.

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.

VinFast to deliver VF 8 City Edition to US customers from March 1

Vietnamese electric vehicle maker VinFast announced on February 27 that it will start delivery of VF 8 City Edition vehicles to US customers beginning March 1 (or March 2 in Vietnam).

The delivery event will be held at the VinFast store in California, marking its new journey in the international market.

These initial deliveries are from the first shipment of 999 City Edition vehicles, which were shipped to the US in December 2022. The VF 8 City Edition comes in both Eco and Plus trim with an EPA-rated range of 207 miles and 191 miles, respectively.

For those unable to attend the event, they can have their vehicles delivered at home or they may schedule a pickup at a VinFast store. VinFast also announced multiple test drive events throughout California for customers to best experience its electric vehicles.

"Our team worked tirelessly to ensure VinFast vehicles meet the highest standards of quality, fit and finish our customers expect. The presence of VinFast electric cars on US streets in the coming days is an important milestone, accelerating VinFast’s journey to compete in the US and abroad. Following deliveries in the US market, VinFast expects to deliver EVs in Canada, France, Germany, and the Netherlands”, said Le Thi Thu Thuy, Vice Chair of Vingroup and Chairwoman of VinFast Holdings.

The VF 8 City Edition offers many smart technology features such as Advanced Driver Assistance System (ADAS) and Smart Services to become a mobile platform that connects all aspects of life. These features will be enhanced regularly using over-the-air (FOTA) updates to improve vehicle functionality and customer experience.

Several leading insurance companies in the US have confirmed that they will provide vehicle insurance for VinFast owners. VinFast also offers an impressive 10-year warranty for their vehicles and batteries, as well as mobile repair services, and 24/7 roadside assistance.

Hanoi to build 13 resettlement areas for Ring Road No.4 project

Hanoi plans to build 13 resettlement areas for affected households under the Ring Road No.4 project with total investment capital of VND13.36 trillion (US$563 million) financed by central and local budgets.

The move was revealed in a decision signed by the Chairman of the Hanoi People’s Committee, Tran Sy Thanh, regarding the compensation, support, and resettlement under the Ring Road No.4 project.

The project involves land requisition, compensation, support, and resettlement in seven districts, namely Ha Dong, Soc Son, Me Linh, Dan Phuong, Hoai Duc, Thanh Oai, and Thuong Tin.

The total land area to be requisitioned for the construction of Ring Road No. 4 is approximately 812.07 ha, and the construction of 13 resettlement areas will need 39.28 ha in five districts of Me Linh, Dan Phuong, Hoai Duc, Thanh Oai, and Thuong Tin.

A key part of the project involves the construction of 13 resettlement areas in five districts of Hanoi, specifically three projects in Van Khe, Dai Thinh, and Chu Phan communes of Me Linh district; two in Duc Thuong and Dong La communes in Hoai Duc district; two in Cu Khe and Tam Hung communes of Thanh Oai district; and four in Khanh Ha, Van Binh, Hong Van, and Van Tao communes of Thuong Tin district.

The investment project for the construction of Ring Road 4 in the Hanoi Capital Region, covering 1,341 hectares and spanning a total length of 112.8 kilometers, will pass through Hanoi (58.2 kilometers), Hung Yen (19.3 kilometers) and Bac Ninh (25.6 kilometers). It will run from the Noi Bai - Lao Cai highway in Soc Son District to the Noi Bai - Ha Long highway in Que Vo District, Bac Ninh.

The project, with a total cost of VND86 trillion (US$3.64 billion), is divided into seven components, including three for compensation and support for households affected by the project, three for building urban roads as part of the Ring Road (financed through public funds), and one for constructing an expressway through a public-private partnership (PPP) mechanism.

Completing Ring Road 4 is expected to improve connectivity between Hanoi and neighboring provinces in the capital area, thereby boosting socio-economic development in the northern region. The capital city serves as the main driving force for growth.

Vietnam’s trade value reaches 72 bln USD by mid- February

According to the General Department of Vietnam Customs, from the beginning of this year to February 15, the country's total trade valued topped 72 billion USD, with export turnover standing at 37 billion USD and a trade surplus of nearly 1.7 billion USD.

Notably, in the first half of February alone, the country's export turnover reached 13.44 billion USD.

Phones and components; computers, electronic products and components; machinery, equipment, tools and spare parts; and textile and garment were the four groups of exports which enjoyed a turnover of "billion dollars" in the reviewed period.

In the meantime, import turnover was 12.38 billion USD. Two groups of imports of the "billion dollars" group were computers, electronic products and components; machinery, equipment, tools and spare parts.

In 2022, the country's total trade value reached a record high of USD 730.2 billion USD.

Nearly 300 trade promotion events planned for this year

The Ministry of Industry and Trade has passed the National Programme on Trade Promotion and the National Brand Programme in 2023 with nearly 300 trade promotion events to be held this year in Vietnam and abroad.

According to the ministry, this year, trade promotion is identified as one of the important and effective solutions to support Vietnamese businesses to develop production and the domestic market, and boost exports.

The newly-issued programmes will focus on connecting Vietnamese businesses to international buyers, promoting exports at prestigious international specialised fairs in key markets and potential new markets, and organise major international industry conferences in Vietnam to promote export potential, export industry, and typical export products.

Hundreds of thousands of businesses are expected to participate and benefit from the trade promotion activities.

Vietnam, India boost trade in farm produce, processed food

The Vietnam Trade Office in India, in collaboration with the National Investment Promotion and Facilitation Agency of India (Invest India) and the Federation of Indian Export Organisations (FIEO) held a teleconference on February 22 to step up business cooperation opportunities in farm produce and processed food.

Speaking at the event, Vietnamese Ambassador to India Nguyen Thanh Hai said the food processing sector accounts for 32% of the total food market and 14% of the manufacturing industry’s GDP of India. The sector is expected to draw 33 billion USD in investment in the next decade.

With a population of over 1.4 billion people, India is a promising market for Vietnam’s farm produce and processed food. Meanwhile, several kinds of India’s farm produce and processed food are likely to be sold well in Vietnam such as seafood, chili, spices, fruits and vegetables, he added.

Le Thanh Hoa, Deputy Director of the Agro Processing and Market Development Authority under the Vietnamese Ministry of Agriculture and Rural Development, said during 2021-2022, Vietnam’s farm produce exports to India reached 351 million USD, accounting for 1.3% of India’s total farm produce imports, a modest figure.

General Secretary of the Vietnam Fruit and Vegetables Association (Vinafruit) Dang Phuc Nguyen said more Vietnamese farm produce target meeting VietGAP and GlobalGAP standards.

He suggested both nations open their markets for fruits and vegetables and sign bilateral trade deals to facilitate trade in farm produce.

Vietnamese Commercial Counsellor in India Bui Trung Thuong wished that firms would continue joining trade exchange and market introduction programmes, particularly the upcoming event with the India state of Kerala on March 8 in the fields of agriculture, seafood and services.

In terms of agro-forestry-aquatic product trade, Vietnam is running a deficit with India, with 473.8 million USD in 2021 and 687.73 million USD in 2022.

HCM City recommended to further improve investment environment

Vietnam and Ho Chi Minh City in particular need to make changes and further accelerate administrative reforms in order to create a more attractive environment for foreign investors, President of the European Chamber of Commerce in Vietnam (EuroCham) Alain Cany has said.

Addressing a seminar hosted by the municipal People’s Committee on February 22 with representatives of 18 foreign business associations in the city, Cany said EuroCham recommended HCM City to further promote digital transformation in handling administrative procedures, and pay attention to boosting sustainable and green development by measures to support and prioritise businesses using green and environmentally friendly energy.

It is necessary for the city to enhance investment in synchronously developing public transport systems to achieve the goal of reducing the use of private vehicles, he added.

Sharing Cany’s opinions, Seck Yee Chung, Vice President of the Singaporean Business Association in HCM City, said Vietnam and HCM City in particular should  work harder on improving the investment and business environment.

James Ollen, Managing Director of the American Chamber of Commerce in Vietnam (AmCham) in HCM City, said the southern hub’s authorities need to have policies to develop high technology and industries with high-added values, improve local supply chains, develop digital economy services, and develop lifelong education.

HCM City should also have a consistent policy on simplifying administrative procedures related to visa issuance for foreigners, he noted.

Meanwhile, Angus Liew Bing Fooi, Director of the Malaysian Chamber of Commerce in Vietnam, recommended HCM City to have specific and preferential policies to support  businesses operating in the fields of green development and environmental protection.

In his speech,  Chairman of the municipal People's Committee Phan Van Mai affirmed that the city is focusing on improving the investment environment, clarifying the administrative responsibilities of agencies and the public duties of each public servant.

The city will pay heed to speeding up digital transformation in connection with improving the investment environment, thus creating the most favorable conditions for businesses, he said.

Basic activities of the local authorities are expected to be operated on a digital platform by 2025, Mai said, adding that the city has officially implemented digital economic development and increase the proportion of the digital economy in its economy in 2023.

HCM City hopes to receive support, and learn from experience from foreign investors and businesses in the scheme, he said.

The city has been focusing on developing transport infrastructure, Mai said, noting that financial investment for transportation accounts for about 50% -70% of the short term investment, focusing on metro, inner-city and inter-regional traffic routes.

Vietnamese longan sells well in Japan despite high prices
     
Vietnamese longan is welcomed in Japan although its retail prices are high, which brings a big opportunity for local farmers.

Nguyen Khac Huy, director of Hoang Phat Fruit Ltd Company based in the southern province of Long An, said that after its first batch of 10 tonnes of fresh longan was exported to Japan early this year, the company will continue exporting about 70-100 tonnes of the fruit by sea and by air to the market each month.

Longan retail price in Japan is high, about VND320,000 (US$13.5) per kilo, but the fruit quickly sells out, he said.

Dang Phuc Nguyen, General Secretary of the Viet Nam Fruit and Vegetable Association, said that four Vietnamese fresh fruits – dragon fruit, mango, lychee, and longan – are eligible to be exported to Japan through the official channel.

Longan is a high-value export and can be sold at high prices in Japan, he said, adding that Japan’s import of the fruit brings a big opportunity for Vietnamese farmers.

Viet Nam now has about 80,000 ha of longan with an output of about 600,000 tonnes per year. However, the area for the Indo-longan variety favoured by Japanese consumers is not much and that with the fruit qualified for export is small.

Ta Duc Minh, Viet Nam Trade Counselor in Japan, said that it’s difficult to enter Japan but it’s more difficult to maintain a foothold in the market as if only a batch of products fails to meet requirements, Vietnamese exporters will lose consumers’ trust and it’s very difficult to regain the trust. 

Ministry calls on three energy giants to ensure national supply
     
The Ministry of Industry and Trade has called on three major corporations, namely Vietnam Electricity (EVN), Vietnam Oil and Gas Group (PVN), and Vietnam National Coal-Mineral Industries Holding Corporation Limited (TKV), to ensure the efficient supply of electricity, gasoline, and coal for the country's socio-economic development and people's daily lives.

During a working session with the energy giants on Tuesday, Minister of Industry and Trade Nguyen Hong Dien emphasised that energy development is a strategic task that serves as the foundation for socio-economic development and realising industrialisation and modernisation goals, stating that "no supply shortages or disruptions are allowed in any situations."

He also requested that difficulties and problems in the production and business of electricity, gasoline, and coal be reported promptly to identify solutions.

Dien urged the energy corporations to focus on increasing labour productivity and operational efficiency, promoting innovation, and managing the relationship between input and energy prices following market rules and the socialist-oriented market economy.

Moreover, the energy corporations must strengthen their cooperation, particularly in consuming each other's products, to ensure national energy security and promote socio-economic development.

The energy corporations must also prioritise implementing key projects approved by the Commission for the Management of State Capital at Enterprises (CMSC) and focus on optimising cash flow and efficiently operating investment projects while promoting savings.

Additionally, market expansion must be strengthened, especially with markets that have trade agreements with Viet Nam.

Chairman of the CMSC Nguyen Hoang Anh stated that the CMSC would work closely with the Ministry of Industry and Trade to resolve difficulties state-owned energy enterprises face.

Statistics indicate that EVN's commercial electricity output increased by 7.73 per cent to reach 242.7 kWh in 2022, and the power loss rate was 6.25 per cent, 0.2 per cent lower than in 2021.

PVN also saw good growth last year, with oil and gas reserves increasing by 26 per cent to reach 16.97 million tonnes and oil production reaching 10.84 million tonnes.

In January, PVN's operations were smooth, with oil production reaching 0.88 million tonnes, 11.2 per cent higher than the month's plan.

TKV reported that the output of finished clean coal was 42.4 million tonnes in 2022, 8.6 per cent higher than planned and 2.8 per cent higher than the result in 2021. 

Deposit interest rates continue to decrease
     
Commercial joint stock banks have continued to lower deposit interest rates since the middle of this month, a move that is expected to help reduce lending rates and support businesses.

From February 14, GPBank lowered its saving interest rates by 0.4 percentage points. The six-month term and 12-month term rates now stand at 8.9 and 9.1 per cent per year, down from 9.3 and 9.5 per cent per year, respectively.

From February 18, Techcombank also cut saving rates for VIP customers by 0.5 percentage points for both terms of 12 months and 24 months to 8.7 per cent per year. It also cut the saving rate for six-month term deposits by 0.3 percentage points to 8.7 per cent per year.

From February 14, Sacombank decreased saving rates for six-month, 12-month and 24-month terms, bringing the six-month rate down to 8.2 per cent per year, the 12-month rate to 8.6 per cent per year and the 24-month rate to 8.8 per cent per year.

On the contrary, from February 14, Sai Gon Ha Noi Commerical Joint Stock Bank (SHB) slightly increased deposit interest rates. For online deposits, the interest rate increased to 8.42 per cent per year from 8.12 per cent per year. For the 24-month term, the deposit interest rate increased to 8.82 per cent per year from 8.52 per cent per year.

The highest deposit rate on the market is now 9.5 per cent per year (the six-month term at Sai Gon Commerical Joint Stock Bank (SCB) and PVcombank).

Meanwhile, the 9.5 per cent deposit interest rate is also applied for 12-month and 24-month terms at Bao Viet Bank, SCB, PVcombank, Dong A Bank, Viet A Bank, MSB, and Bac A Bank.

At a recent meeting among the State Bank of Viet Nam (SBV), commercial banks and property developers, a bank leader said the ceiling deposit rate would be brought down to 8.7 per cent per year in the coming time instead of the current 9.5 per cent per year.

The fact that commercial banks have continued to lower deposit interest rates since early this month and cut further last week has raised hope of a drop in lending rates.

Over the past week, banks such as Agribank, Techcombank, VietinBank, Sacombank, MB and SeABank have lowered lending interest rate by 1-3 per cent per year.

Agribank has announced a maximum lending interest rate reduction of 3 per cent per year for outstanding loans for real estate as of January 31, 2023.

Economist Le Xuan Nghia, a member of the National Financial and Monetary Policy Advisory Council, said deposit interest rates are still too high.

Recently, the Viet Nam Banks Association called on commercial banks to keep deposit interest rates at 9.5 per cent or below to reduce lending interest rates.

SBV Governor Nguyen Thi Hong has constantly called on banks to cut operating costs and improve administrative procedures so as to reduce lending interest rates.

Experts said the global economy is likely to have a recession this year. At the same time, the US Federal Reserve will continue its rate hikes, which will put pressure on interest rates to continue rising. 

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