The Regional Comprehensive Economic Partnership (known as the RCEP), which was signed on November 15, is the largest free trade agreement in the world. While offering substantial opportunities to Vietnamese exporters, it will also make the competitive landscape even fiercer, both at home and abroad. 

When the RCEP is implemented it will create a market of more than 3.5 billion consumers and total GDP of some 49 trillion USD, or 39% of global GDP. It will also become the largest free trade area in the world, with commitments on market openings in the fields of goods, services, and investment, the simplification of customs procedures, and rules of origin to facilitate trade.

It is clear, however, that several parties to the agreement share similar export products as Vietnam and may even have stronger competitive capacity. When it fully comes into effect, local enterprises will be subject to much fiercer competition.

But according to the Ministry of Industry and Trade, the commitments to which Vietnam is bound are no different from those in other trade deals the country has signed. The pressure on domestic enterprises is therefore not overly concerning.

According to insiders, lower import tariffs may result in an influx of imported goods, with Vietnam posting a trade deficit. The country’s competitive capacity, meanwhile, is currently only higher than three other RCEP signatories - Myanmar, Laos, and Cambodia. Experts have suggested closer ties be established between Vietnamese enterprises to improve the competitive capacity of every industry overall./.

Globally-standardized Vietnamese product platform launched   

The move is aimed to increase market confidence for Vietnamese goods.

The Vietnamese High Quality Products – Global Integration Standards (GIS) platform was launched on December 12 with an aim to empower Vietnam’s goods in the global integration.

GIS is born to increase market confidence for Vietnamese goods by providing high-quality products and encouraging the production of premium commodities.

GIS is new standards set by the Business Association of Vietnamese High Quality Products built based on existing regulations and practices in Vietnam and in line with international recognition and certification requirements.

GIS products always maintain its market credibility set by international standards organizations such as FoodPlus GmbH (GLOBALG.A.P.), NOAA Fisheries, GFSI, BRC, IFS, and GMP + International. GIS standards are strict, scientific and transparent. Consumers can always check, verify and trace the origin of the products.

The new standards are applied for farms (poultry and pigs, vegetables, fruit), aquaculture, factory/food processing facilities, and businesses with environmental responsibility. 

More than 20 years, Vietnam has made efforts to boost the consumption of Vietnamese goods, mostly the “Vietnam High Quality Product Program” launched in 1997.

So far, the country has “Vietnamese High Quality Products” title voted annually by the Vietnamese consumers.

Thaco, Peugeot cooperate to manufacture motorcycles

Truong Hai Auto Joint Stock Company (Thaco), and French automotive manufacturer Peugeot recently announced their strategic cooperation in motorcycle manufacturing for domestic distribution and export.

Peugeot Django scooter is the first product that marks a milestone in the strategic and comprehensive collaboration between the two sides.

Thaco has carried out study, and built a European-standard motorcycle manufacturing and assembling plant at Thaco Chu Lai Mechanical and Automotive Industrial Park in Quang Nam province.

R&D activities have been promoted since the company targets to master manufacturing technologies and increase local sourcing to over 40 percent so as to be able to export to the ASEAN bloc.

Thaco and Peugeot eye to ship some 30,000 Django scooters to ASEAN and other markets by 2030. The scooters will be sold in Thailand, Malaysia, Indonesia, the Philippines and China’s Taiwan next year.

Peugeot has been present in Vietnam for over 100 years. In 2013, Thaco and the French car company reached a deal that enabled Thaco to assemble and distribute Peugeot cars in the Vietnamese market.

Peugeot showrooms in Vietnam are built to its global standard in prime locations to provide customers with maximum convenience and European-class products and services. Thaco is now running 35 showrooms and service shops providing after-sale service for Peugeot passenger cars and motorcycles./.

Tra fish export value hits 1.2 billion USD in 10 months

Vietnam earned 1.2 billion USD from exporting Tra (Pangasius) fish as of October this year, reported the Vietnam Pangasius Association (VPA).

The figure is expected to hit 1.5-1.6 billion USD for the whole year, down nearly 30 percent year-on-year, VPA said.

About 1 million tonnes of Tra fish were harvested for processing in the last 11 months. The country’s Tra fish production in 2020 is forecast to reach 1.1 – 1.15 million tonnes, 10 percent lower than that of last year.

The Mekong Delta localities of An Giang, Dong Thap, Ben Tre and Can Tho are the leading localities in supplying Tra fish for export, accounting for over 90 percent of the total export volume.

According to the VPA, 2021 will see the recovery of the global pangasius market as the COVID-19 pandemic is gradually put under control.

China is the largest importer of Vietnamese Tra fish products with a 35 percent market share, followed by the US with 15 percent, and the European Union (EU) and ASEAN markets, with nearly 10 percent each.

Vietnam’s Tra fish export to China and the US is predicted to see good growth in the time to come./.

Quang Binh to hold investment promotion conference next year

The central province of Quang Binh will organise an investment promotion conference in mid-January 2021 in Dong Hoi city, according to the provincial People's Committee.

“This conference is an opportunity for Quang Binh to show its great potential in economic development and as an attractive and reliable investment destination for all investors," Secretary of the Party Committee of Quang Binh Vu Dai Thang said.

It will focus on introducing the potential and strengths of Quang Binh, including the energy industry, tourism, services, agriculture and the marine economic sector.

At the event, the People's Committee of Quang Binh will approve investment policies and investment registration certificates for a number of key projects. At the same time, it will sign agreements on investment co-operation and credit supply for a number of projects.

The investment promotion conference in 2021 will attract domestic and foreign organisations, enterprises and investors. It will create dialogues between the authorities and businesses of Quang Binh to seek opportunities for investment and business in the province and solutions on effectively exploiting the potential in this province.

The conference is expected to receive about 600 delegates, including representatives from agencies of the Government and the National Assembly, ministries, sectors, localities and diplomatic bodies of other countries in Vietnam.

They also include the Vietnam Chamber of Commerce and Industry and the chambers of industry and commerce of other countries in Vietnam, domestic and foreign financial, economic and commercial organisations, economic experts, and domestic and foreign investors./.

Thừa Thiên-Huế looks to boost tourism with three plans

The central province of Thừa Thiên-Huế is mobilising all efforts to boost the recovery of tourism in the next year.

The province has announced plans with different three scenarios for the local tourism sector in the near future and for the whole year of 2021 based on COVID-19 developments.

Solutions for the plans were discussed during the 11th session of the provincial People’s Council (seventh tenure) that concluded last week.

Under the first scenario which was unexpected to occur, if the pandemic is yet to be controlled both nationally and internationally, the province expects to welcome only 2-2.2 million visitors, mainly domestic tourists, and earn VNĐ4-4.4 trillion (about US$173-190 million) from the sector. 

In the second option, if the COVID-19 pandemic is well contained domestically but not many international flights to major tourism markets resume except some nearby ones which are declared relatively safe, the province aims to serve 3 – 3.5 million holidaymakers of whom 80 per cent are domestic tourists, earning an estimated VNĐ6.5-7 trillion.

Under the last scenario, if COVID-19 is controlled both at home and abroad thanks to vaccines, Thừa Thiên-Huế hopes to welcome 4-4.5 million tourists, and pocket more than VNĐ8 trillion from the industry in 2021. 

This year, the total number of tourists to the locality is estimated at only 1.7 million. 

According to Le Hữu Minh, Acting Head of the provincial Department of Tourism, the second option seemed most relevant to the province's conditions and to reach the target, it should focus more on the message 'Huế is a safe, tourist-friendly destination' and continue to ensure pandemic prevention and control.

The official said the department used an app called 'Blue map' to promote safe destinations among vacationers. 

He suggested developing leisure tourism apart from culture and heritage tourism products amid the difficult circumstances caused by COVID-19, saying local leaders should help remove difficulties for tourism projects. 

"The tourism market has changed. Tourists to Thừa Thiên-Huế previously were mainly from Europe, America, South Korea and China but now only those from domestic markets come. There will be fierce competition among the destinations in the country thus it requires the province to strengthen service products especially focusing more on vocation tourism, culture and heritage," said Minh.

Meanwhile, Head of the province's Department of Culture and Sports Phan Thanh Hải said experts warned that international travel would not return to normal until at least 2023, so the domestic market will still play the most important target for the provincial tourism industry.

"Culture and heritage tourism is still a sustainable product of Huế, however, a new approach is needed. Currently, the province is building brand names such as 'Huế - The Capital of Cuisine', 'Huế - The Capital of áo dài'. This is the right, sustainable and long-term development direction," according to the official.

In an effort to recover local tourism in the short term, Thừa Thiên-Huế will hold various cultural and sports events this month, including a marathon with the participation of about 7,000-8,000 people, along with programmes promoting áo dài (Việt Nam’s traditional dress) and local cuisine from December 18-20. 

Quang Binh to hold investment promotion conference next year

The central province of Quang Binh will organise an investment promotion conference in mid-January 2021 in Dong Hoi city, according to the provincial People's Committee.

“This conference is an opportunity for Quang Binh to show its great potential in economic development and as an attractive and reliable investment destination for all investors," Secretary of the Party Committee of Quang Binh Vu Dai Thang said.

It will focus on introducing the potential and strengths of Quang Binh, including the energy industry, tourism, services, agriculture and the marine economic sector.

At the event, the People's Committee of Quang Binh will approve investment policies and investment registration certificates for a number of key projects. At the same time, it will sign agreements on investment co-operation and credit supply for a number of projects.

The investment promotion conference in 2021 will attract domestic and foreign organisations, enterprises and investors. It will create dialogues between the authorities and businesses of Quang Binh to seek opportunities for investment and business in the province and solutions on effectively exploiting the potential in this province.

The conference is expected to receive about 600 delegates, including representatives from agencies of the Government and the National Assembly, ministries, sectors, localities and diplomatic bodies of other countries in Vietnam.

They also include the Vietnam Chamber of Commerce and Industry and the chambers of industry and commerce of other countries in Vietnam, domestic and foreign financial, economic and commercial organisations, economic experts, and domestic and foreign investors./.

Workshop calls for responsible timber trade practice

 Vietnamese businesses should adopt responsible timber trade practices to bridge the gap between the decree on Viet Nam Timber Legality Assurance System and the EU-Vietnam Voluntary Partnership Agreement on Forest Law Enforcement, Governance, and Trade, according to delegates at an international workshop held online on December 11.

The decree on Viet Nam Timber Legality Assurance System (VNTLAS) regulates the harvest, transportation, trade, and processing of timber in accordance with requirements and regulations of international conventions that Viet Nam is party to and requirements of countries that import processed wooden products from Viet Nam.

The EU-Vietnam Voluntary Partnership Agreement on Forest Law Enforcement, Governance, and Trade (VPA/FLEGT) addresses illegal logging, improvement in forest governance and promotion of trade in legal timber products.

Nguyen Quoc Khanh, chairman of the Handicraft and Wood Industry Association of HCM City (HAWA), said: “On behalf of forestry and wood processing businesses, HAWA would like to suggest ‘Practising Responsible Timber Trade’ to satisfy both Viet Nam and the EU.

“This method has been strengthened in the last four years of implementing the HAWA DDS project, based on the actual situation and consultation with relevant stakeholders like Vietnam Administration of Forestry (VNFOREST), EU organizations and experts and Vietnamese businesses.”

Dao Tien Dung, the HAWA DDS project developer, said it is designed to support due diligence and traceability efforts by HAWA DDS members.

The platform includes timber origin identification system for domestic plantations, due diligence support system and timber traceability system, he said.

The project is funded by the FAO-EU FLEGT Programme and endorsed by the VNFOREST.

By the end of November, the project had completed the development and pilot phase of the platform, he said.

“The HAWA DDS Platform 1.0 provides standardised guidance and information technology solutions for enterprises in the forestry and wood processing industries to practise responsible timber trade.”

Differences

The VPA- FLEGT came into effect in June last year.

Since then the Government has been turning it into provisions in its VNTLAS Decree.

Since the decree was issued in September, it has been widely applied nation-wide.

But the EU has said the decree does not yet sufficiently reflect the VPA-FLEGT and adopted stricter measures on wooden products from Viet Nam.

Rui Ludovino, first counsellor on climate action, environment, employment & social policies, EU Delegation, said the differences between the two include the scope of application, timber sources, import controls, classification of enterprises, verification for export, FLEGT licensing, independent evaluation, and even JIC responsibilities.

“We have substantial work ahead of us, but I am confident that after these first problems Viet Nam will rapidly amend and supplement the VNTLAS Decree as needed to implement the Viet Nam Timber Legality Assurance System as provided for in the VPA.”

Tim Dawson, the leader of the FLEGT team at the European Forest Institute, said: “VPA requires due diligence for all imported timber unless with a FLEGT licence or CITES permit while the decree includes due diligence obligation when importing timber, but discrepancy in Form 03 on declaration of origin of imported timber may confuse the obligation.

“The decree only refers to import controls on importation while VPA commits to post clearance inspection as a part of the import controls.”

He suggested that technical discussions with the EU and national stakeholders and a high-level dialogue should be organised soon. 

VN needs to improve coffee value and brand to dominate international market: conference

Global demand for coffee will continue to increase for the next 30 years, but Viet Nam should focus on improving the value of its coffee to raise its profile in the international market and become the number one power in coffee, according to industry experts.

Luong Van Tu, chairman of the Viet Nam Coffee and Cocoa Association (VICOFA), told the trade promotion and international investment conference held by his association last week, “Besides coffee beans, Viet Nam’s coffee exporters have also promoted the export of roasted and instant coffee in recent years.”

“Viet Nam has also promoted coffee consumption in the domestic market. The rapid increase in the number of coffee chains has boosted consumption to over 10 per cent of total coffee output.”

The industry has taken advantage of the free trade agreements the country has signed, including the EU-Viet Nam FTA and CPTPP, to boost exports to these large markets.

Le Hoang Diep Thao, VICOFA deputy chairwoman, CEO of coffee brand King Coffee, and co-owner of Trung Nguyen coffee, said, “Viet Nam is facing a rare opportunity to break through and become the number one power in coffee.

“If we increase the value of the Vietnamese coffee industry, we will have a chance of achieving two important things: help 10 per cent of coffee exports turn into high-value coffee product exports and increase coffee consumption in the local market from 1.68 kg/person (in 2019) to three kilogrammes (in 2023).”

“Only when there is enough internal strength and stability in the domestic market would Vietnamese coffee have the opportunity to be treated equally and respected and Vietnamese farmers and producers get the right prices,” she said.

She spoke about her company’s model to increase the value of Vietnamese coffee.

The conference organised both offline and online attracted over 62 local and foreign businesses who spoke about solutions to increase coffee consumption in their domestic markets, experiences in developing national brands and measures to promote coffee trade.

Xiong Xiangren, president of the Asian Coffee Association and CEO of Dehong Hogood Coffee Company Ltd, said this year China’s coffee consumption was 350,000 tonnes worth 250 billion RMB (US$38.2 billion), an increase of 30 per cent from last year.

“Last year China imported 110,000 tonnes of coffee from 84 countries, with imports from Viet Nam accounting for more than 30 per cent of [it].”

Viet Nam’s exports to China included coffee beans and roasted, instant and ready to drink coffee. ACA would work with VICOFA to promote the export of Vietnamese coffee, he said. 

Vietnam committed to cutting import tariffs under FTAs

The Ministry of Finance (MoF) has drafted legal documents to fulfil Vietnam’s commitments on import tariff cuts under free trade agreements (FTA) the country has signed with partners, said MoF Minister Dinh Tien Dung.

Vietnam has signed more than 10 bilateral and multilateral FTAs with foreign partners, and undoubtedly these deals offer a great chance for the country to boost exports. Yet, under these FTAs Vietnam is committed to slashing tariffs on imports, thus causing a big loss of revenue to the state coffers.

Notably, unlike previous FTAs, new generation FTAs such as one between Vietnam and the European Union (EVFTA) or the Comprehensi9ve and Progressive Agreement for Trans-Pacific Partnership (CPTPP), require a higher level of commitments regarding the opening of the market for goods, services and investment, as well as a shorter time for tariff cuts.

The EVFTA is a case in point. Under the trade deal, the EU is scheduled to eliminate about 85.6% of its tariff lines on Vietnamese exports when the deal takes effect, and the figure will rise to 99.2% after seven years of implementation.

Similarly, 48.5% of tariff lines on EU exports to Vietnam will be eliminated following the enforcement of the trade deal, and the figure will rise to 91.8% after seven years.

Indeed, the EVFTA took effect as of August 1, 2020.

According to Finance Minister Dinh Tien Dung, the financial sector has put in place State budget restructuring solutions aimed at limiting the impact of the implementation of tariff reduction commitments under FTAs.

The MoF has drafted legal documents to fulfil Vietnam’s commitments and the tax commitment roadmap will be implemented step by step to ensure production and business activities are not shocked, Dung told VTC News.

He went on to say the financial sector will continue to accelerate the administrative reform and modernization process at tax and customs agencies, creating conditions for businesses to operate and enjoy preferences from FTAs.

Vietnam has signed bilateral FTAs with Chile, the Republic of Korea, the Eurasian Economic Union, the European Union, and the United Kingdom. It has also inked multilateral FTAs with ASEAN, ASEAN-China, ASEAN-the Republic of Korea, ASEAN-Australia-New Zealand, ASEAN-India, ASEAN-Japan, ASEAN-Hong Kong (China), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership.

It is currently negotiating FTAs with Israel and the European Free Trade Association.

Vietnam boosts bold reforms to attract more investors

On December 10, Prime Minister Nguyen Xuan Phuc had a meeting with representatives of foreign business associations under the Vietnam Business Forum. 

At the meeting, Prime Minister Nguyen Xuan Phuc emphasised that while the whole world is being affected by the COVID-19 pandemic, the Vietnamese economy has performed rather well compared to other countries. Vietnam is seen as one of the five countries with the strongest trade flows.

The PM affirmed that the government is steadfast in preventing epidemics, protecting the people's health, and developing the economy. Therefore, reopening commercial flights will be carefully considered.

PM Phuc affirmed that Vietnam's policies and regulatory framework will continue to be strongly reformed, creating favourable conditions for investors. However, investors must also obey the laws of Vietnam, especially doing business in a transparent manner, avoiding the phenomenon of price transfer and tax evasion.

The government also continues removing obstacles to doing business to make Vietnam soon join the top group with a competitive business environment in ASEAN.

Kyle Kelhofer, country manager of the International Financial Organization (IFC), emphasised that Vietnam's success in controlling the COVID-19 epidemic has made Vietnam a new destination for investors.

“While COVID-19 is continuing to spread across Europe and America, Vietnam’s ability to put the epidemic under control has contributed to helping Vietnam’s economy recover earlier than other countries. This is a very important advantage for Vietnam to become a new destination for high-tech manufacturing investments in Asia and the Pacific,” he said.

Believing that the upcoming 13th Party Congress will bring new momentum for bolder economic reforms, Kelhofer affirmed that the IFC will fully support this process with initiatives and advice.

The PM acknowledged the Vietnam Business Forum’s contribution to economic reforms over the past 23 years, offering many useful recommendations and initiatives to improve the business environment. The Vietnamese business community has grown in number and potentiality, contributing to high economic growth and deep international integration, he added.

"If you want the country to develop, the private sector will need to grow strongly," the PM warned.

Vietnam is aiming to become a top competitive environment in ASEAN for all investors to do business smoothly, and for this, "everything must be transparent". Therefore, the National Public Service Portal is expanding day by day to facilitate convenience and efficiency for all investors.

According to the PM, in June 2020, Vietnam established a working group on foreign investment promotion, headed by Deputy Prime Minister Pham Binh Minh to advise the government and the PM on mechanisms and policies, criteria, and standards for an internationally-competitive investment environment to welcome the new wave of FDI.

HCMC to fight fake, low-quality goods ahead of Tet 2021

The HCMC government has come up with a plan to fight smuggling, trade fraud and low-quality and fake goods before, during and after the upcoming Lunar New Year holiday or Tet.

HCMC will dispatch law enforcement forces to ports, airports, border gates, train stations, wholesale markets and commercial centers to check Tet goods and handle violations on smuggling and trade fraud, Nguoi Lao Dong Online reported.

The plan, which runs until February 28, 2021, is aimed at effectively preventing the transport of illegal goods and smuggling activities.

The municipal government also ordered the competent forces to strengthen checks on illegal goods, including drugs, weapons or explosive substances, while inspecting the quality of necessities such as food, milk, foodstuffs and medical equipment.

Besides, the municipal government assigned the Border Guard Command to collaborate with the relevant agencies in the city and in Ba Ria-Vung Tau and Tien Giang provinces to impose harsh sanctions on violators at ports.

Apart from this, the competent forces were also tasked with regularly patrolling at estuaries, border gates and ports to promptly discover violations.

The HCMC Department of Customs was told to raise an alert on the abuse of the automatic customs clearance system and the incorrect declaration of the information of goods.

Hanoi targets green, sustainable tourism

The development of green tourism has cemented the city's position on the national tourist map.

Hanoi has always identified green, clean, environmentally-friendly tourism as a focus, thereby further cementing the capital's leading position in the national tourist map, Deputy Director of the municipal Department of Tourism Tran Trung Hieu emphasized.

Mr. Hieu said green tourism development in association with environmental protection and climate change adaptation is a target of Hanoi in the incoming years. To reach the goal, Hanoi has taken a number of solutions to bolster tourism development but still protect nature reserves and environment.

"We promote the use of electric vehicles, cyclo and bicycles in the old town area, and implement ecotourism and community-based tourism in the suburbs (Duong Lam ancient village, Son Tay town), Bat Trang (Gia Lam district), Ba Vi district," Mr. Hieu said. 

Many tourist destinations in Hanoi have planted more trees and built flower gardens to create new and attractive tourism products, such as sunflower garden at the Imperial Citadel of Thang Long, lilies stream at Huong Pagoda (My Duc district), flowerbed of wild sunflower in Ba Vi National Park. 

In addition, the city’s tourism regulatory body has conducted regular training of their staff on environment protection in tourism. 

According to the the Institute for Tourism Development Research (ITDR), Vietnam currently has developed ecotourism in 23 out 33 national parks and 35 out of 127 nature reserves. In 2019, Vietnamese national parks welcomed about 2.5 million visitors, grossing revenue of about VND185 billion (US$8 million).  

In Hanoi, with great potential for green tourism in suburban districts and cities such as Son Tay, Ba Vi, My Duc, Thach That, Thanh Oai, Quoc Oai, among others, the development of this type of tourism associated with the promotion of value of natural resources and ecology is in the long-term strategy of the capital.

Green tourism minimizes impacts on the environment, positively contributing to biodiversity protection, encouraging the use of renewable energy, promoting natural and cultural heritages as well as developing environmentally-friendly products. 

Dr. Truong Sy Vinh, the ITDR's Vice Director under the Vietnam National Administration of Tourism (VNAT), said that green and clean tourism development is not only associated with harnessing natural resources in national parks and nature reserves, but also it is about building a safe tourism environment and nature protection.

In particular, developing environmentally friendly travel in Hanoi still faces many challenges. Dr. Bui Thi Minh Nguyet, Dean of the Faculty of Economics and Business Administration (the Vietnam National University of Forestry) said that some tourist destinations have not paid due attention to developing tourism associated with local community, as well as in educating local residents and tourists on environmental and landscape protection. 

Director of Hanoitourist Travel Company Phung Quang Thang said that ecotourism sites and destinations lack experiential products which familiarize visitors with environmental protection activities. Besides, ecotourism infrastructure at spots such as Suoi Hai and Ao Vua (Ba Vi district) need to be upgraded. 

To promote green tourism, Mr. Nguyen Duc Tung, Deputy Director of the Institute of Environment and Sustainable Development (the Vietnam Association for the Conservation of Nature and Environment), said that the city needs to improve management and encourage investment in ecotourism development. 

Deputy General Director of the VNAT Nguyen Thi Thanh Huong suggested that in addition to building the master plan, Hanoi needs to strengthen the guidance for destinations to build green and clean tourist packages; enhance communication among local residents and tourists that civilized tourism behavior is protecting the environment and landscape.

Thai billionaire acquires Vietnam’s Bien Hoa Packaging

Key members of Bien Hoa Packaging have all been replaced with personnel from the buyer.

TCG Solutions Pte, a subsidiary of Thai conglomerate Siam Cement Group (SCG) owned by Thai billionaire Kan Trakulhoon, has announced its intention to purchase over 12 million shares or 94.11% stake of Bien Hoa Packaging (Sovi), which currently does not have a foreign ownership limit.

The transaction period is set to take place via the Vietnam Securities Depository (VSD) from December 16-31.

The value of the transaction has not been disclosed, but given the market share price of VND77,000 (US$3.33) per unit, TCG could fork out more than VND920 billion (US$39.8 million) for the deal.

In fact, the announcement for acquisition proves to be a formality as existing Vietnamese members of board of directors and supervisory board have resigned and were replaced with Thai personnel from TCG during the Extraordinary General Meeting of Shareholders on December 9.

Among new personnel, Ekarach Sinnarong was appointed as Chief Executive Officer (CEO) cum Legal Representative of the company for 2020-23 tenure and TCG Solutions Director Suchai Korprasertsri as new Sovi President.

Sovi’s new board of directors is comprised of nine members, including five Thais, two Japanese and one Vietnamese.

SCG is one of Southeast Asia’s top conglomerate in fields of cement – construction materials, chemicals and packaging.

In Vietnam, SCG was involved in dozens of merging and acquisitions (M&A) activities over the last 30 years with the acquisition or stake purchase at Prime Group, Tin Thanh Packaging, Binh Minh Plastic, and Long Son Petrochemicals complex.

Vietnam ODA disbursement faces uphill task to meet target

So far, only four out of 62 provinces/cities in Vietnam recorded an ODA disbursement rate of over 70%.

The disbursement progress of official development assistance (ODA) funds in Vietnam in the first eleven months of 2020 reached a modest 41% of the year’s estimate, so fulfilling this year disbursement target would be an uphill task with only one month left.

“So far, only four out of 62 provinces/cities in Vietnam recorded an ODA disbursement rate of over 70%, namely Hanoi, Binh Dinh, Tay Ninh, and Ba Ria – Vung Tau,” noted Director of the Department of Debt Management and External Finance Truong Hung Long under the Ministry of Finance (MoF) at a conference discussing solution to boost the disbursement progress of ODA funds in the last month of 2020 on December 7.

Mr. Long said the progress in the 11-month period showed significant improvements compared to that  in the first half of the year, thanks to strong efforts from the government and local authorities.

“The government has set up seven task forces supervising disbursement progress at government agencies and provinces/cities,” Mr. Long added.

 The progress, however, slowed down in the past two months, partly because the government shifted its focus on dealing with natural disasters in the central region, he said.

At the current state, it is highly likely that many provinces/cities would fail to live up to their promises to Prime Minister Nguyen Xuan Phuc, Mr. Long stated, adding the majority of them has pledged to reach the disbursement rate of 90% or higher.

The MoF representative attributed delay in site clearance process to such a low disbursement rate, while there is a lack of responsibilities from project owners and other related parties.

Other issues include the complicated procedures in implementing public projects, contractors’ limited capacity and inefficient cooperation between locality and central agencies, he asserted.

As public investment is a key measure to boost economic growth during the Covid-19 pandemic, a faster disbursement progress of public funds, including ODA, is essential, stated Mr. Long, adding this also proves Vietnam’s ability and responsibility in utilizing funds in the eyes of investors and donors. 

The disbursed amount of public funds as of October stood at VND321.5 trillion (US$13.8 billion) equivalent to 68.3% of the target set by Prime Minister Nguyen Xuan Phuc which is VND470.6 trillion (US$20.32 billion).

Hanoi boosts craft village tourism  

Developing craft village tourism is considered as a good way to promote the history of Vietnam and Hanoi.

Innovating and promoting handicrafts are solutions for Hanoi to lure more visits to craft villages, contributing to the growth of the city’s tourism. 

A thousand and three hundred craft villages in Hanoi produce a wide variety of products such as pottery (Bat Trang village, Gia Lam district); lacquer (Ha Thai village), embroidery (Quat Dong village, Thuong Tin district); fan (Chang Son village); bamboo and rattan (Phu Vinh village, Chuong My district) among others. Despite a growing number of tourists to these villages, souvenir, revenue is still poor, partly due to the lack of diverse and signature items. 

Unattractive product and packaging design, along with promotional activities that have not been properly invested, are to blame for the meager profits, said the president of the UNESCO Travel Club in Hanoi, Truong Quoc Hung. Today, craft villages basically offer what they have instead of what tourists need, while local artisans, although being skillful, lack experience, financial and technology know-how, so they have not accessed customers via the internet. 

In addition, the connection with tourist destinations is weak, so craft traders cannot understand the needs and tastes of tourists, which is also the reason for the bad sale of souvenirs, Hung added. 

Realizing about these shortcomings, some establishments have invested efforts to innovate product designs and packaging. In addition to traditional items such as rattan baskets, rattan tables and chairs, artisan Hoang Van Hanh (Phu Vinh bamboo and rattan craft village, Chuong My district) has created new products suitable for the demand of young visitors such as bracelets, rings which are made of rattan and bamboo. 

Meanwhile, many lacquer products of Ha Thai village (Thuong Tin district), after being applied changes in motif and design, have earned the preference of foreign customers, Chairman of Ha Thai Lacquer Association Do Hung Chieu said. Some businesses and craft village households have set up their websites and take advantage of social networks to promote their products. 

In order to support craft villages, the Hanoi Department of Industry and Trade in cooperation with the municipal Department of Tourism organized the design competitions for handicraft products in recent years, with the aim of stimulating creativity and launching new product models suitable to the demand of tourists. Besides, the Hanoi Department of Tourism has supported those villages through promoting handicrafts on its website. 

According to local insiders, instead of mainly depending on foreign tourists, craft villages should pay more attention to domestic tourists, especially as this segment is one of the important solutions to restore and stabilize the tourism market in Hanoi in particular and in Vietnam in general.  

The tourism Department will launch an application to introduce craft village products using 3D technology, allowing visitors to see details of products, information about the artisans, craft villages and the process of elaborating the item. This application is expected to be a promotion channel for more than 300 craft villages, contributing to improving the quality of tourism products and increasing the spending of local and foreign visitors to the city in the coming time.

Vietnam, RoK agree on cumulation of origin of textile materials

The Ministry of Industry and Trade (MoIT) and the Ministry of Trade, Industry and Energy of the Republic of Korea (RoK) recently signed an exchange letter on the implementation of the cumulation of origin of textile between the two nations under the EU-Vietnam Free Trade Agreement.

The letter was inked in the framework of the 10th meeting of the Vietnam-RoK Joint Committee on Energy, Industry and Trade Cooperation and the 4th meeting of the joint committee on the implementation of the Vietnam-RoK Free Trade Agreement (VKFTA), the MoIT’s Asia-Africa Market Department said, adding the document is significant to help Vietnamese firms easily access high-quality textile materials from the RoK for production for export to the EU.

The EU needs to import more than 250 billion USD worth of garment and textile products each year; however, Vietnam accounted for only 2 percent of share in this potential market, according to the MoIT.

The EVFTA, effective from August 2020, is expected to help Vietnam’s textile and garment industry to increase its shipments to the EU by some 67 percent by 2025 as compared to the scenario without the pact.

However, according to the commitments of the EVFTA, besides meeting strict quality criteria, to enjoy preferential tariffs local businesses must implement strict origin requirements. Specifically, exports to the EU must use fabric produced in Vietnam or the EU. The agreement also allows firms to use fabric from countries which have FTAs with both Vietnam and the EU.

This issue is still a weakness for the local textile and garment industry because most raw materials are imported from countries that have not signed FTAs with the EU.

In this context, Vietnam negotiated with the EU countries on cumulative rules of origin, allowing Vietnamese exporters to use fabric made by a third-party country that has an FTA with the EU like the RoK.

Before the EVFTA took effect, the MoIT conducted a negotiation with the Korean Ministry of Trade, Industry and Energy to carry out the cumulative rules under the EVFTA./.

Vietnam, China firms sign contracts worth nearly $760 million at trade fair

The signed contracts are in the fields of export-import of metal ores, chemicals, agro-forestry-fishery products, and fertilizer, among others.

Vietnamese enterprises signed with their Chinese peers 18 economic contracts worth US$758.9 million during the 20th Vietnam – China border trade fair.

The signed contracts are in the fields of export-import of metal ores, chemicals, agro-forestry-fishery products, and fertilizer, among others.

The event, kicked off on December 12, was jointly held for the first time in a virtual platform due to the Covid-19 pandemic by Lao Cai province People’s Committee of Vietnam and the authorities of Yunnan province in China.

From the Vietnamese side, the trade fair was held at the Kim Thanh Trade Fair and Exhibition Center in Lao Cai province, while the other part of the fair took place at the Hekou International Exhibition Center in Yunnan province of China.

“Trade and economic cooperation between Lao Cai and Yunnan in 2020 have been growing strong despite the severe Covid-19 impacts,” said Vice Chairman of the Lao Cai Province People’s Committee Hoang Quoc Khanh.

During the border trade fair, visitors have opportunities to experience virtual booths, products and services under the 5G network, as well as key export products from two countries.

The 20th Vietnam – China border trade fair is aimed at further promoting bilateral trade, investment and tourism between Lao Cai and Yunnan, contributing to a comprehensive strategic partnership between the two countries, stated Mr. Khanh.

Contracts with sizable economic values showcased the dynamism of both Lao Cai and Yunnan following the signing of the Regional Comprehensive Economic Partnership (RCEP) on November 15, with Vietnam and China both are members of the deal, according to experts.

Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR