Wood export turnover this year is expected to reach a record high of nearly 12.5 billion USD despite impacts of the COVID-19 pandemic as well as risks from export markets and the country’s policy changes in controlling the legality of imported wood materials.

Chairman of the Vietnam Timber and Forest Product Association (VIFOREST) Do Xuan Lap made the forecast at a conference held in the southern province of Binh Duong on December 21.

Lap said the wood sector posted a surge in exports, especially in the second and third quarter of the year. In the first 11 months of 2020, the wood sector’s export turnover surpassed 11 billion USD, representing a 15.6 percent year-on-year increase.

He, however, noted that the industry has faced anti-dumping lawsuits from the US and the Republic of Korea, specifically for plywood related to commercial fraud and tax evasion. There is a high risk that the US Government would apply trade restrictions on these Vietnamese timber, he said.

The chairman added that Vietnam has promulgated a decree on Vietnam Timber Legality Assurance System (VNTLAS). The decree regulates the harvest, transportation, trade, and processing of timber in accordance with requirements and regulations of international conventions that the country is party to and requirements of countries that import processed wooden products from Vietnam. However, as it is a new document, many importers still lack understanding of the decree’s requirements regarding imported timber.

The Ministry of Agriculture and Rural Development (MARD) issued a decision on a geographic origin and timber species risk category. This plays an important role in controlling the legality of imported timber.

The conference provided exporters and producers with trade defence skills, issues related to commercial fraud in import and export activities, goods origin fraud to reduce risks in their trading./.

Mekong Delta promotes digital transformation in agriculture

A workshop on digital transformation and supply chain in agriculture took place in Cao Lanh city in the Mekong Delta province of Dong Thap on December 21 on the sidelines of the 2020 Mekong Connect Forum.

The event was intended to seek ways to help products and services made in the Mekong Delta enter the global supply chain.

It saw speakers, who were business leaders, policymakers and researchers, discussing opportunities and challenges as well as specific solutions to facilitate digital transformation in agriculture and sustainable agricultural development in the region.

They also exchanged views on how to make the processing sector a base for the growth of smart farming and to restructure the agriculture in association with the development of green economy, circular economy and digital economy, and the application of advanced technologies in production.

Digital transformation in agriculture must start from farmers, said Nguyen Thi Thanh Thuc, member of the executive committee of the Vietnam Digital Agriculture Association, adding that it requires the digitalization of agricultural production input and workforce to develop database for the process.

In supply chains, each “farmer” must be a “trader” who understands the market and stakeholders of the chains need to regularly exchange with each other to maintain sustainable and long-term cooperation, Thuc said. She has been working with farmers to develop an agricultural e-Journal, create QR codes and promote traceability of origins and geographical indication (GIs).

All provincial departments, agencies and local administrations in the region must become engaged in digital transformation in agriculture to ensure the transparency of the market, said Dr. Nguyen Quoc Toan, director of the Agro Processing and Market Development Authority. Producers should also develop technologies relevant to each locality’s conditions and commercialise technological products, he suggested.

He also emphasised that farmers must be key players contributing greatly to the success of digital transformation in agriculture.

Dong Thap has seen a transition from agricultural production to agricultural economy in which local farmers have boasted closer linkages with experts, scientists and distributors in order to improve the effectiveness of the value chains of local agricultural and fishery products.

Additionally, the province has adopted incentives to attract foreign direct investment into agriculture and developed a strategy for digital transformation with focus on three pillars of e-Government, e-Economy and e-Society.

The province and the Vietnam National University of Agriculture took the occasion to sign a memorandum of understanding on five-year coordination in formulating a agricultural development strategy for Dong Thap by 2030, with a vision towards 2050, and another on a project to develop green agriculture in the province and help it improve added value and adapt to climate change./.

Quang Nam looks to reform tourism sector

The central province of Quang Nam may be a land of heritage, but local tourism development is still to meet the expectations of provincial authorities. Now that a year of COVID-19 and natural disasters has come to an end, Quang Nam is preparing to ensure its tourism sector thrives next year.

Despite its major potential for developing tourism, the competitiveness of Quang Nam’s tourism sector remains limited, with most enterprises being of small scale and providing the market with poor tourism products. The province also lacks adequate investment in tourism destinations, entertainment venues, and nighttime services.

According to the Quang Nam Tourism Association, the Government needs to introduce a stimulus package as soon as possible and assist tourism enterprises by extending their loans and helping them rebound. The province has also identified tourism as a spearhead economic sector, meaning it must adapt to the “new normal” in the post-pandemic period.

While international tourists are not expected to return in large numbers anytime soon, local travellers have been identified as a market of growth for Quang Nam in 2021.

The province’s tourism sector is looking to link up with sub-sectors such as hospitality, transport, accommodation, and services, as well as put the advantages of each locality to best use to introduce more attractive options for visitors.

Industry analysts are convinced that adopting stimulus programmes to boost domestic tourism is the right step for Quang Nam’s tourism sector to take. They believe local tourism companies will work within a responsible network towards green and community tourism, to better serve domestic tourists./.

Belarus, Armenia to import 10,000 tons of rice from Vietnam next year

In the framework of the Free Trade Agreement between Vietnam and the Eurasian Economic Union (EAEU), country members of this bloc will give Vietnam a tariff quota of 10,000 tons of rice in 2021.

Accordingly, the Council of the Eurasian Economic Commission (EEC) has specifically allocated 9,600 tons of imported rice to the Republic of Belarus and 400 tons to the Republic of Armenia.

Vietnamese rice products will export to these two markets in 2021 under the HS codes 1006 30 6701 and 1006 30 9801.

According to the Agro Processing and Market Development Authority under the Ministry of Agriculture and Rural Development, from the beginning of this year to the end of November, the total rice export volume and value of Vietnam reached 5.74 million tons and US$2.85 billion, respectively.

Although it decreased by 2.2 percent in volume, due to the impact of the Covid-19 pandemic, it increased by 10.4 percent in value over the same period last year. Noticeably, Vietnam's 5-percent broken rice price has risen slightly, from about $495 per ton to $498 per ton.

Forum looks to promote Mekong products, services in global supply chain

The 2020 Mekong Connect forum was held in the Mekong Delta province of Dong Thap on December 21, with an aim to seek measures to get products and services of the Mekong Delta into the global supply chain.

The economic forum, the fifth of its kind, drew some 700 businesspeople and farmers from four Mekong localities of An Giang, Ben Tre, Can Tho and Dong Thap, along with policy makers, investors, start-ups and experts.

Under focus at the event were benefits and opportunities brought by the EU-Vietnam Free Trade Agreement (EVFTA) for farm produce and the Mekong Delta development in the future.

Participants also touched upon major elements of Mekong Delta economy, connectivity in development, the EVFTA and the regional development orientations, and investment for clean energy.

In his remarks, Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc welcomed the four Mekong localities’ idea of holding the annual forum.

He said in addition to investment in sustainable agro-economic development in combination with environmental protection, provinces and cities in the region need to identify priority in infrastructure development and bolster synchronous connectivity with each other and HCM City economic hub.

To gain a foothold in the global food supply chain, Vietnamese firms must work to satisfy the EU’s criteria in food safety, origin tracing, phytosanitary, hygiene and sustainable development, said Vice Chairman of the European Chamber of Commerce Nguyen Hai Minh.

At the event, the four localities signed an agreement on trade connection and a startup programme, which is expected to help introduce Mekong Delta’s products and services in the global value chain./.

Vietnam gov’t persists in dominating vital economic sectors

The government vows to hold between 51% and 65% stakes in rice trading and petroleum import.

The government of Vietnam will continue holding majority stakes in sectors that contribute to ensuring national socio-economic stability.

The government will hold stakes of more than 50% in three groups of sectors that have been classified for restructuring in 2021-2025 under the prime minister’s draft Decision.

In the list by the Ministry of Planning and Investment that is gathering public comments, the government will hold more than 50% to less than 65% stakes; more than 65% stakes; and wholly-owned subsidiaries in the following sectors.

The enterprises to be wholly controlled by the State are from 12 sectors namely defence and security service mapping; production and trade of industrial explosives and provision of blasting services; national load dispatch and electricity transmission; air traffic service and aviation notifications and alert services; lottery; money printing, production of gold bullion and gold souvenirs, among others.

Five sectors where the government will hold more than 65% stakes include management of and operation of airport terminals, airports and airfield operation services; management and operation of large-scale seaports; aeronautical meteorological and surveillance services; big extractive projects; oil and gas exploration and exploitation.

The government will maintain between more than 50% and less than 65% stakes in nine sectors that include safe water supply and drainage; air transportation; banking; and enterprises holding the market share of more than 30% or those essential to the economy like rice export and petroleum import.

The classification will be crucial for the privatization and divestment of state capital at state-owned enterprises (SOEs).

Regarding rice export, Vietnam shipped 6.37 million tons in 2019, up 4.2% on-year, according to the General Department of Vietnam Customs. The country might overtake Thailand to become the world’s largest rice exporter in 2020.

In 2019, Vietnam imported 9.79 million tons of petroleum products and exported 3.1 million tons. Vietnam National Petroleum Group (Petrolimex) currently holds a 50% market share in the country’s petroleum distribution sector with a retail network of more than 2,400 filling stations nationwide.

Hanoi – a goldmine for logistics services: Expert

The location of Hanoi has long been considered strategic as it stands at the heart of the northeast region and serves as the country’s gateway to countries around the world.

Given the position as Vietnam’s socio-economic hub and driving force of the northern region, Hanoi has the required conditions to establish a comprehensive network of logistics services, said an expert.

The location of Hanoi has long been seen as strategic as it stands at the heart of the northeast region and serves as the country’s gateway to countries around the world.

At present, the capital city has nine operational industrial parks attracting over 600 projects, while the annual average revenue from industrial production is estimated at over US$6 billion.

Besides, Hanoi is in the course of developing other 89 industrial clusters across the city, of which the majority are at districts of Thach That, Quoc Oai, Chuong My, Thuong Tin, Phuc Tho, Dan Phuong and Hoai Duc.

Industrial parks are homes to potential customers for logistics services, at the same time creating large scale flows of goods for exports.

In addition to industrial sectors, Hanoi also focuses on the development of agriculture, trade and services, which all requires logistics services to gain a foothold in a highly competitive market.

Economist Nguyen Van Cong said along with the economic development, the gap among traditional competitive factors such as price or quality has been narrowed, while producers and traders are now competing for delivery speed and streamlining costs in their distribution networks.

As a result, logistics has now played a key role in processes of production and distribution, Cong said.

In a new master planning, Hanoi is tasked with focusing on the development of hi-tech fields, including IT, software, and automation, among others.

Cong said warehousing would become an advantage of Hanoi with a huge land reserve and good connectivity with industrial hubs of the northern region in Bac Ninh, Hai Phong or Vinh Phuc.

“Hanoi is capable of expanding a modern logistics network to support all economic activities in the city,” Cong added.

In 2018, Hanoi People’s Committee approved the proposal of managing and developing logistics in Hanoi until 2025.

Under the proposal, Hanoi is set to have two major logistics centers by 2030. The first one, expected to cover an area of 50 hectares and located at the city’s northern gateway, would serve the purpose of transporting goods to other provinces/cities via road and air transportation.

In the southern gate way, there would be another logistics center with an area of 22 hectares to support the flows of goods to industrial parks in southern region of Hanoi.

Hanoi possesses road infrastructure with a combined length of 3,974 kilometers, 90 kilometers of railways with five main stations of Hang Co, Giap Bat, Van Dien, Gia Lam and Yen Vien, not to mention a dense network of waterways.

Meanwhile, the Noi Bai International Airport is in the process of expansion, which could be the foundation to support the development of logistics in Hanoi, said urban-transportation expert Dang Minh Tan.

However, Tan said the main issue is the lack of efficient connection between transportation modes in Hanoi, which remains fragmented.

Tan added the local government could help to solve this issue by offering attractive incentive policies for more investors in logistics.

Leaders of Hanoi have been encouraging world’s major logistics providers to set up branches in Hanoi in a move to turn the city into a major logistics hub of the northern region.

Experts also suggested Hanoi should take advantages of new technologies and IT in logistics management for greater economic efficiency, which is particularly important as Hanoi is integrating into global and regional supply chains.

By 2025, the country set the contribution rate target for logistics to be at 8-10% of GDP, services growth rate between 15-20%, while the rate for logistics outsourcing to be 50-60%, said the government’s decision No.200 referring to an action plan to enhance the competitiveness and development of Vietnam's logistics sector through 2025.

Vietravel Airlines’ plane lands in Phu Bai airport for first time

The Vietnam Travel Aviation Co. Ltd (Vietravel Airlines) held a ceremony to welcome its 220-seat Airbus A321CEO plane which landed in the Phu Bai International Airport in the central province of Thua Thien-Hue for the first time.

The provincial leaders and Vietravel Airlines representatives presented flowers to the crew members and boarded the plane to see what inside it.

According to a Vietravel Airlines representative, in December, the firm quickly completed its fleet of three A321CEO planes. The first aircraft arrived in Vietnam on December 5 and the remaining two are expected to come to the country on December 24-25 and January 10, 2021.

Speaking at the ceremony, Vice Chairman of the provincial People's Committee Nguyen Thanh Binh said the event marked an important milestone in the service economy of the province.

Thua Thien - Hue pledges to create the most favorable conditions for Vietravel to implement its projects on schedule, thus helping the local service and tourism sectors quickly recover after the COVID-19 pandemic, he stressed.

Vietravel Airlines, headquartered at the Phu Bai International Airport, aims to serve 1 million passengers in its first year of operations.

In the initial period, it plans to conduct more than 80 flights per week, mostly linking with HCM City, Hue, Hanoi, and popular tourist destinations like Da Nang, Nha Trang, and Phu Quoc.

Vietravel Airlines is the latest air carrier in the country, joining Vietnam Airlines, Vietjet Air, Bamboo Airways, Pacific Airlines, Vasco, and Hai Au Aviation. It has a total investment of 700 billion VND (30.2 million USD) and a lifespan of 50 years and is set to provide both domestic and international air transport services./.

Dialogue helps iron out snags for Japanese firms

Japanese enterprises raised concerns over institutions and policies in Vietnam during a dialogue on December 21, which were then cleared up by representatives from Vietnamese ministries and agencies.

The dialogue was jointly held by the Government Office, the Prime Minister’s Advisory Council for Administrative Procedure Reform, and the Japanese Embassy.

This is the fifth dialogue with domestic and foreign enterprises organised by the council so far this year, and the first with Japanese businesses.

Minister-Chairman of the Government Office Mai Tien Dung, who is also president of the council, said that with synchronous, drastic, and effective measures against COVID-19, Vietnam has embarked on the “new normal”, with rosy signs in production and business, especially industrial production and exports and imports.

The Government and the PM have promptly instructed ministries, agencies, and localities to adopt solutions in an effort to recover the national economy, promote the disbursement of public investment, and ensure social welfare and social safety and order, while revamping the operations of State administrative agencies, he added.

Dung told the dialogue that the Government has cut 239 business conditions so far this year, and issued a document on the implementation of administrative procedures online.

He cited a report from the Ministry of Planning and Investment saying that Vietnam’s economic growth is expected to reach 2.6-3 percent this year. It is the only country in Southeast Asia and one of very few in Asia-Pacific to post growth.

Vietnam is also one of 16 emerging markets most successful amid the COVID-19 pandemic, according to the report.

Japanese Ambassador to Vietnam Yamada Takio also lauded Vietnam’s efforts in the pandemic fight.

In the first 11 months of this year, Vietnam’s import-export value was 489 billion USD worth, up 3.5 percent year-on-year, he said, stressing that the country is directly benefiting from the diversification of global supply chains.

The ambassador also commended the extensive strategic partnership between Vietnam and Japan.

He said the key for Vietnam’s rapid economic recovery is the resumption of commercial flights, the improvement of public investment disbursement, foreign investment attraction, and administrative reform.

The organisation of the dialogue demonstrates Vietnam’s efforts to push ahead with administrative reform, improve the local business climate, and attract foreign investment.

According to the diplomat, of the 81 Japanese firms receiving Government support, 37 have decided to select Vietnam as their investment destination. Fifty-five Japanese businesses will establish their headquarters in the country.

Japan will continue to support its enterprises to operate in Vietnam, he affirmed./.

Hanoi deploys 14 hi-tech farming models in 2016-2020  

Hanoi’s Agricultural Extension Center will continue to organize training courses, communication and provide financial support for the application of hi-tech in farm production.

To speed up the application of high technology in farm production, the Hanoi Agricultural Extension Center has launched 14 models of hi-tech farming in the 2016-2020 period.

The 14 models included four in cultivation, two in husbandry and eight in fish farming. The center also organized 643 technical training courses for extension staff, farmers, members of cooperatives and farms with the participation of 14,300 people. It is expected to carry out 77 training courses with 5,110 participants in the near future.

So far, high tech farming models have received positive response from farmers, according to Hanoi’s farm extension authorities. The center will continue to organize training courses to improve farmers’ skills and expand promotion activities relating to hi-tech application in production. It will also give financial support to build a pilot model for high tech farming quality and efficiency demonstration and improve training quality.

In late 2018, the city’s authorities issued Resolution No.10/2018 on policies to encourage cooperative development, link production with consumption of farm produce and build infrastructure in rural areas. Accordingly, from January 1, 2019 a series of mechanisms such as support for vocational training, hi-tech agricultural production, organic agriculture, trade promotion and market development, have been implemented.

The city will focus on removing obstacles to attract investment in high-tech agriculture in the city as a main solution to foster high-tech farming. The city’s agricultural authorities also continued accelerating the restructuring of the industry towards large-scale production in line with advantages and markets; promote preservation, processing and consumption of agricultural products in the value chain.

Targeting average growth in agricultural production of 3.5-4% per year by the end of 2020, Hanoi focuses on developing modern agricultural production models, applying high technology, striving for the proportion of product value to reach 25-35% or more of the city’s total agricultural output value.

Economic ties between Chongqing, Vietnam growing

Economic and trade ties between China’s Chongqing city and Vietnam have been growing strongly, with Vietnam’s exports to the centrally-run city soaring by over 86 percent during January-September to more than 4.5 billion USD.

Pan Ling, head of the municipal Commerce Commission’s Office of Asian-African Markets, said trade between Chongqing and Vietnam surged 158 percent last year, adding that the city wants to expand economic and trade ties with and buy more farm produce from ASEAN and Vietnam.

It also wants to expand cooperation with Vietnamese enterprises on manufacturing and industrial assemblies, he said. He also welcomed Vietnamese and ASEAN firms to Chongqing to develop business, and encouraged Chongqing enterprises to extend cooperation with the country and the bloc.

According to municipal authorities, Chongqing has established friendly ties with HCM City and northern Cao Bang and Quang Ninh provinces. Prior to the COVID-19 pandemic, Chongqing conducted 34 flights to ASEAN member states, including 31 carrying passengers and three carrying cargo. Among them were two direct flights to Hanoi and HCM City.

In recent years, Da Nang, Nha Trang, and other Vietnamese areas have become major overseas destinations for visitors from Chongqing. The city invited nearly 10 Vietnamese travel agencies to its Global Travel Agents Conference, while bilateral cultural and tourism exchange has been held regularly.

On the back of existing achievements, the potential for further cooperation between Chongqing and Vietnam remains huge. Their businesses could seize opportunities to enhance trade, contributing to developing economic links between both sides./.

Hanoi eyes realization of all 23 socio-economic targets for 2021

The Hanoi’s mayor requested local agencies to address existing difficulties right from the beginning of next year.

Chairman of the Hanoi People’s Committee Chu Ngoc Anh in a recent meeting expected to roll out plans to ensure the realization of all 23 socio-economic development targets for 2021.

“The top priority, however, remains the dual target of both containing the pandemic and ensuring economic recovery,” Mr. Anh noted.

The Hanoi’s mayor requested each department and unit to be responsible for their corresponding targets.

“To ensure growth in agriculture, industry, services, tourism and state budget collection, right from the beginning of next year, there should be various growth scenarios and plans to address existing difficulties,” Mr. Anh suggested.

With three weeks left until the end of the year, Mr. Anh called for strong focus from the entire political system in fulfilling socio-economic targets set for this year, especially on the state budget collection and disbursement of public funds. 

In addition to development objectives, Hanoi is also focusing on preparing for the upcoming 13th National Party Congress, Vietnam’s most important political event that is scheduled to take place in January 2021, and year-end festive period.

This year, Hanoi’s gross regional domestic product (GRDP) growth is estimated to reach 3.94%, which is lower than the year’s target of 7.5% but would be 1.5 times higher than the national average (2.5–3%).

The growth is set for a strong rebound to 7.5% in 2021, which would translate into an income per capita of VND135 million (US$5,800), significantly higher than the national average of US$3,700 for a growth forecast of 6%. 

EVN honoured for contribution to national socio-economic development

Vice President Dang Thi Ngoc Thinh, on behalf of the Party and the State, presented the “Labour Hero in Renewal Period” title to Electricity of Vietnam (EVN) in recognition of its contributions to national socio-economic development at a ceremony on December 21 in Hanoi.

Addressing the ceremony, Deputy Prime Minister Trinh Dinh Dung praised EVN for its achievements during its formation and development.

The electricity sector in general and EVN in particular must ensure the stable supply of electricity at reasonable prices for Vietnam’s rapid and sustainable socio-economic development.

He suggested the group efficiently exploit and use domestic energy resources in combination with a reasonable level of energy exports and imports, towards turning it into a strong economic group and with a vision to becoming a leading corporation in the energy sector in Vietnam and Asia by 2045.

According to EVN General Director Tran Dinh Nhan, the group has recorded important achievements during its 66 years, contributing to the cause of national construction and defence.

In particular, over the last ten years, EVN’s efforts have contributed to ensuring a stable and safe electricity supply, thus promoting high economic growth.

Commercial electricity recorded average growth of 9.7 percent each year in the period. The company has also invested strongly in infrastructure development for electricity generation and transmission and power distribution and business.

EVN’s total power capacity reached over 60,000 MW, ranking it second in Southeast Asia and 23rd in the world.

The national electricity network extends to all parts of the country. The 500 kV north-south super-high-voltage transmission line - the “backbone” of Vietnam’s power system - has been added a third circuit, ensuring power supply to key economic regions around the country.

In implementing its rural electrification programme, EVN brought electricity to all communes nationwide, 99.54 percent of households, and 11 out of 12 island districts.

Automation, remote control, and digitalisation technology have been widely applied to operating and managing the electrical network, contributing to reducing power losses to less than 6.5 percent.

The group ranks 27th in a global access-to-electricity index, helping to improve the national business environment and competitiveness./.

Hanoi’s impressive recovery contributes to driving national growth on track 

In 2020, the city has achieved or surpassed 16 out of 22 major socio-economic development targets.
Hanoi’s successful realization of the dual target of both containing the pandemic and boosting economic recovery helps ensure the country’s GDP growth on track to reach its target of 2.5 – 3% for this year.

An early containment of the Covid-19 pandemic helped the city shift its focus to boosting economic growth. 

In 2020, the city has achieved and even exceeded 16 out of 22 major socio-economic development targets.

Hanoi’s gross regional domestic product (GRDP) growth is estimated to reach 3.94% this year, which is lower than the year’s target of 7.5% but would be 1.5 times higher than the national average.

The municipal consumer price index, a gauge of inflation, continues to stay under control at below 3%, lower than the 4% target set for the country this year.

Among highlights of the local economy, the city’s state budget revenue is forecast to reach VND280 trillion (US$12.13 billion), exceeding the estimate and up 3.5% year-on-year, while trade turnover could hit up to US$48.47 billion, 1.34 times higher than that  in 2015. This helps put the average export growth during the 2016-20 period at 9%, 1.7 times higher than in 2011-15.

Given Hanoi’s strong efforts in administrative reform and improving the business/investment environment, the city remains in the top three localities in terms of attracting foreign direct investment (FDI) and is ranked second behind Ho Chi Minh City in terms of number of operational enterprises at over 290,000, accounting for over 30% of the total number nationwide. 

CEO of HAXACO group, a leading Mercedes-Benz car dealer in Vietnam, attributed Hanoi’s effective supporting measures to the firm keeping strong revenue growth of 31.4% year-on-year in the first quarter at VND1.74 trillion (US$75.38 million).

“A surge in revenue  in the third quarter helped us offset declines in revenue in the previous two quarters during the Covid-19,” he noted.

Director of Hanoi CNC Accurate Mechanical Company Nguyen Minh Chau expected a bright economic outlook for the country in the post-Covid-19 period, adding “this was thanks in no small part to effective measures against the pandemic of Hanoi in particular, and Vietnam in general.”

“Enterprises, therefore, greatly benefited from this process,” he noted.

Chairman of Board of Viet Tiep lock company Luong Van Thang said during this difficult period, Hanoi’s authorities should set up task forces to provide timely support for the business community.

“Drastic measures from local authorities not only help enterprises overcome the current crisis, but to lay a platform for them to grow in the post-pandemic period,” he added.

So far, the city has provided over VND600 billion (US$25.98 million) for vulnerable people during the Covid-19 pandemic, and VND25 trillion (US$1.08 billion) in forms of freezing and delaying payment of taxes and fees for enterprises.

Hanoi’s economy is set for a strong rebound to 7.5% in 2021 from an estimated of 3.94% for this year, which would translate into an income per capita of VND135 million (US$5,800), significantly higher than the national average of US$3,700 and  a growth forecast of 6%. 

Other major economic indicators include the expansion of social investment by 12%, exports by 5%, inflation below 4% and a decline of 20% in the poverty rate under the city’s new standards.

For the period 2021-25, Hanoi sets a GRDP growth target of 7.5-8%, in which the services sector would make up 65-65.5%, industry and services 22.5-23% and agro-forestry-fishery 1.4-1.6%.

Car imports down in November

Car imports in November dropped 10.4 percent month on month to 12,237 units, according to initial statistics of the General Department of Vietnam Customs.

Nearly half of the imported cars (5,927 vehicles) were from Thailand, followed by Indonesia with 3,823 and China 1,204. Together the three countries accounted for 90 percent of the total number.

The aggregate number of imported cars in the first 11 months of 2020 reached 92,261, down 30.5 percent from the same period last year. Industry insiders attributed the decrease to the grave impact of COVID-19 in other countries.

Another reason was the Government’s latest reduction of registration fees for domestically-assembled and manufactured automobiles, which encouraged customers to buy locally-made cars.

Members of Vietnam Automobile Manufacturers’ Association (VAMA) reported total sales of 36,359 vehicles in November, up 9 percent against the previous month.

The figure included 23,509 locally-assembled vehicles, up 15 percent; and 12,850 imported units, increasing 0.7 percent.

During January-November, 248,768 vehicles were sold, a year-on-year fall of 14 percent.

However, the figures do not reflect overall consumption in the automobile market as they exclude sales of manufacturers that are not VAMA members such as Audi, Jaguar, Land Rover, Mercedes-Benz, Subaru, Volkswagen, Volvo, and Huyndai Thanh Cong.

With 11,023 sold vehicles, Huyndai Thanh Cong’s TC Motor became the best-selling car brand in Vietnam in November, followed by Toyota with 9,444 units, Kia 6,260 units, Mazda 4,369 units and Mitsubishi 4,033 units.

With the recovery and positive market movements, the automobile industry is forecast to grow in 2021 when the domestic consumption demand is expected to rise.

Practical solutions needed to speed up economic development in 2021

A range of stronger economic stimulus measures should be implemented moving into next year in an effort to recover the Vietnamese economy amid falling domestic and foreign demand caused by the impact of the novel coronavirus (COVID-19) pandemic.

Despite many forecasts anticipating  that the Vietnamese economy will grow by over 7% in 2021, there are still plenty of short and long-term difficulties. Indeed, even when the pandemic is contained both domestically and globally, without strong macroeconomic measures coupled with drastic steps in management, it will be a huge challenge to achieve the targets and plans set out by the Government and the National Assembly (NA).

Moving into 2021 and into the early years of the 2021 to 2025 period, the key task set by the Government will be to continue focusing on carrying out the dual goal of both effectively preventing the spread of the pandemic to protect people’s health, whilst also ensuring socio-economic development. This can be achieved by making efficient use of opportunities and efforts in an attempt to boost economic recovery.

During the 10th session of the 13th NA, the Government submitted to the legislature 12 major targets on economic, social, and environmental fields for the socio-economic development plan for 2021, with GDP set to grow by approximately 6% and the consumer price index (CPI) staying at 4% on average.

Furthermore, 15 main targets have been devised for the 2021 to 2025 period, of which the average GDP growth rate will be approximately 6.5% to 7%, with GDP per capita set to reach between US$4,700 and US$5,000 by 2025. In addition, the proportion of the digital economy will account for roughly 20% of GDP, labour productivity will represent an annual increase of over 6.5% on average, the number of trained workers by 2025 will be at 70%, and the rate of poor households according to multidimensional standards is expected to fall by between 1% to 1.5% annually.

In an effort to achieve these set targets, the Government has devised at least 10 main tasks and solutions, with a specific focus on seriously and effectively implementing measures aimed at preventing and minimising damage caused by the COVID-19 pandemic. This includes continuing to fine-tune socialist-oriented market economy institutions, maintaining macroeconomic stability, controlling inflation, and ensuring greater balances for the economy. This is along with promoting economic restructuring coupled with renewing the growth model, whilst also improving productivity, quality, efficiency, and competitiveness.

Furthermore, solutions will also focus on increasing mobilisation and effective utilising of resources, accelerating the implementation of key socio-economic infrastructure projects, and improving the overall quality and effective use of human resources associated with promoting innovation. The strong application and development of science and technology in order create a foundation for boosting socio-economic development will also be explored.

According to experts, 2021 is poised to represent a significant year which creates a good starting point and a strong foundation for the period 2021 to 2025. Therefore, it can be viewed as necessary to give priority to pooling resources in an effort to speed up development and exceed the planned tasks for this important year. Indeed, promoting public investment continues to be recommended as the number one priority among urgent solutions that can help economic recovery due to the COVID-19 pandemic remaining very complicated.

Dr. Nguyen Dinh Cung, former director of the Central Institute for Economic Management, underlined the necessity of immediately working out stronger, more specific, and substantive economic stimulus solutions to restore growth amid domestic and foreign demand decreasing due to the impact of COVID-19.

According to economic expert, Dr. Nguyen Minh Phong, it is imperative to intensify investment to improve the quality of human resources whilst promoting digital transformation both in the short term and in the long run. Despite numerous traditional markets being limited or even frozen due to the ongoing pandemic, it also presents opportunities for development in non-traditional fields, along with the effective application of Industry 4.0 technology by local enterprises.

Experts therefore underlined the need to outline solutions aimed at helping to provide information regarding advantageous import and export markets, especially those which have signed new generation free trade agreements with the nation. This can be done as a means of making the most of opportunities and enjoying greater international economic integration.

Moreover, special importance should be placed on the domestic market, considering this to be a basic solution that ensures essential production, supply and consumption activities towards better sustainable development amid increasingly fierce competition, they emphasized.

Ministry collects feedback on State ownership policy

The Ministry of Planning and Investment has announced it started collecting feedback on a major policy which dictates the amount of control the State is to maintain over key businesses and sectors.

Accordingly, the State may own up to 100 percent capital of 12 business groups including power transmission, air traffic control, lottery, currency printing and gold minting.

Five other business groups that the State may retain majority control from 65 percent through either capital ownership or shares with voting rights include seaports and airports management and investment, oil and gas exploration and development.

In addition, the State aims to maintain 50-65 percent capital in nine other business groups including urban water management, air transport, banking, petrol import/export and any other businesses holding more than 30 percent of total market share that were deemed vital to the supply and demand of the macroeconomy./.

UKVFTA meaningful to both Vietnam and UK

The conclusion of the UK-Vietnam Free Trade Agreement (UKVFTA) on December 11 holds a practical meaning to both nations as the pact is expected to help the two countries boost their post-pandemic recovery.

According to an article by Pinsent Masons, a UK-based international professional services business with law at its core, Vietnam and UK companies will be benefit from reduced tariffs on imports and exports. Currently 65 percent of tariffs are removed tariff on UK-Vietnam trade, but this will increase to 99 percent of tariffs over time.

The article said the agreement is anticipated to deliver annual savings to Vietnam of 114 million pounds on exports to UK and 36 million pounds on UK exports to Vietnam.

Trade expert Totis Kotsonis of the firm said: “the UK sees its bilateral agreement with Asian countries as merely the first stepping stone towards much greater UK involvement in Asia, ultimately joining the Trans-Pacific trade agreement (CPTTP) and becoming an ASEAN Dialogue Partner”.

During the 2010 – 2019 period, trade between Vietnam and the UK tripled, reaching about 7.6 billion USD. The saved tariffs will help Vietnam escape the consequences of a decline in global demand that is hindering the export of manufactured goods. The COVID-19 pandemic has led to western countries’ cutting of orders for traditional Vietnamese exports, such as apparel, footwear, electronic devices and automotive equipment.

Associate Professor Wu Ming Jiang from the National University of Singapore’s Lee Kuan Yew School of Public Policy said Vietnam will have more access to the UK’s special strengths in management consultation services and in research and development./.

Malaysian news portal appreciates Vietnam’s FDI attraction

FreeMalaysia Today, a news portal of Malaysia, has run an article appreciating Vietnam's attraction to foreign direct investment (FDI).

According to the article, one can see global manufacturers flocking to Vietnam. This is because investors are assured of the country’s political stability.

“Vietnam’s low costs, investor-friendly policies, zero tolerance for corruption and state-backed efforts to promote tech start-ups also make the country appealing to investors,” it said.

Foreign investors have committed billions of dollars in Vietnam and the present per capita income of the country in some zones has increased almost fivefold since the past decade, it added.

Apple Inc has joined Samsung in consolidating Vietnam’s growing audio expertise in manufacturing its AirPod headphones as part of the company’s long-term expansion plans.

Vietnam is becoming an audio manufacturing hub as firms move away from China for sales into the US market. This growth has also been driven by Samsung Electronics Co Ltd.

The article said that Singapore, Indonesia and Vietnam are politically stable, resourceful, with a pro-business government, and they offer economic incentives for businesses./.

Key border gate economic zones selected for development during 2021-2025

The Prime Minister has agreed to select eight key border gate economic zones to receive state budget for development in the 2021-2025 period.

They are Mong Cai, Dong Dang-Lang Son, Lao Cai, and Cao Bang border gate economic zones in the northern provinces of Quang Ninh, Lang Son, Lao Cai, and Cao Bang, respectively; the Cau Treo international border gate economic zone in the central province of Ha Tinh and the Lao Bao special economic-trade zone in the central province of Quang Tri; the Moc Bai border gate economic zone in the southern province of Tay Ninh, and the Mekong Delta province of An Giang’s border gate economic zone.
The PM has assigned the Ministry of Planning and Investment to direct and guide localities to mobilise other legal capital sources to invest in the construction of technical and social infrastructure systems serving the sustainable development of the zones.

The People's Committees of provinces and centrally-run cities, meanwhile, have been tasked with preparing and assessing dossiers of investment projects on developing border gate zone infrastructure in accordance with objectives, principles, and quotas of the state budget allocation for 2021 – 2025.

Localities where the eight key zones are located have been ordered to arrange the state capital for their development throughout the period./.

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