High-rise apartment buildings in HCMC

As Vietnam is experiencing the third wave of the Covid-19 pandemic, which continues to impact the hospitality industry and various real estate sectors, prices of the residential segment appear to have remained unchanged and sales unaffected.

David Jackson, chief executive officer of Colliers International in Vietnam, said the hospitality industry would be the most impacted, evident by hotels, tours and flight cancellations by domestic tourists and the limited number of international arrivals into Vietnam.

However, the Covid-19 pandemic did not significantly impact the prices of residential properties in 2020, despite all condominium segments and landed properties having seen their prices increase from 2019.

Sales remained robust, with agents and buyers taking to social media to interact, instead of the previous face-to-face interaction.

Buyers are looking at the long-term picture after the Covid-19 pandemic and Vietnam’s infrastructure development and economic growth can help boost property prices.

Jackson projected that if the pandemic continues, it may result in delays in construction or new launches as developers have to grapple with social distancing measures. They may face financial constraints or be forced to wait for a more suitable time to launch their projects.

Talking about changes for investors during the “new normal” situation, Jackson said social distancing is prevalent and more interactions happen online, with developers and investors using social media to transact.

In this aspect, if the investors are tech savvy and manage to understand the projects through online interaction, it can offer even more opportunities for speculators to profit.

Those who speculate need to be careful during this “new normal”. Projects that are newly launched are more challenging to flip than projects that are near completion.

Investors will need to have enough capital to pay installments if they cannot find another buyer. Future buyers that they plan to sell to may be more conservative with their cash reserves and other residential projects to choose from.

In 2021, home loan interest rates are expected to continue decreasing and policies become more attractive since many commercial banks have excess cash flow. This presents an opportunity for investors to use their financial leverage to enable them to purchase properties.

That said, investors should only take loans if they have a stable financial situation during this economic downturn and not overstretch their financial commitments. They must be sure that taking a home loan to purchase a property is in line with their overall investment strategy.

Jackson said during this time, investors should consider their own cash flow and financial situation. Real estate is not as liquid an investment as bonds and stocks, so buyers with cash flow needs should not jump into real estate even if it seems promising.

Besides, they have to understand the project they are planning to buy. Covid-19 may delay the construction progress. They have to see that the developer has all the important legal documents needed for the project and that they are satisfied with the project's location, facilities and price.

Bangladesh approves proposal to import rice from Vietnam

The Government of Bangladesh has approved three separate proposals to procure 350,000 tonnes of rice under the direct procurement method (DPM) from Vietnam, India and Thailand.

The country’s Minister of Finance AHM Mustafa Kamal said the approval came during a meeting of the Cabinet Committee on Economic Affairs, which was held virtually on March 10 under his chair.

Accordingly, the meeting gave approval to a proposal in principle to import 50,000 tons of white rice from the Southern Food Corporation (VINAFOOD) in Vietnam.

It also approved to procure 150,000 tonnes each of non-basmati boiled rice from the Punjab State of India, to meet emergency purposes, and from the Sakonnakhon National Farmers Council in Thailand.

Speaking with reporters, Kamal said the government was trying to procure rice from different sources so that no problems arise in the future.

The minister added that Bangladesh ambassadors in Vietnam, India and Thailand would negotiate with the related companies and organisations to fix the price of the rice to be imported./.

Vietnam boasts potential to become international resort destination: Savills

Vietnam has the potential to turn itself into an international resort destination that can compete with tourism powerhouses like Thailand and Indonesia, an expert from Savills has said.

Mauro Gasparotti, Director of Savills Hotels APAC, was quoted by Savills Vietnam as saying that in addition to major tourist destinations such as Hanoi, HCM City, Da Nang, Nha Trang, and Phu Quoc Island, new destinations appearing recently such as Ho Tram in Ba Ria-Vung Tau, Binh Thuan, and Hoa Binh are also attracting a lot of attention from the market.

Savills Hotels cited as examples the Ho Tram and Long Hai areas in Ba Ria-Vung Tau, which are about 120km from HCM City.

The two coastal towns are home to 19 operating projects in the four- and five-star segments that supply the market with 2,700 rooms. Over the next three years, it will see nine new projects entering the local market and five existing projects extended, providing an estimated 7,600 rooms.

Meanwhile, key infrastructure projects, like the highway network connecting the southern region, the Mekong Delta, and Long Thanh International Airport, will act as a catalyst for the promotion of regional tourism and investment.

The first phase of Long Thanh Airport is expected to be completed in 2025, becoming an important transport channel supporting domestic and international tourism activities, particularly MICE (meetings, incentives, conferences, exhibitions).

Emphasising the development of connecting infrastructure, Gasparotti said the market currently depends heavily on domestic demand, which accounts for nearly 90 percent of the annual number of tourists staying in local accommodation facilities. Ongoing infrastructure projects are expected to bring about a more diversified source of visitors.

Southern provinces attract FDI as existing investors vote with their feet

The southern key economic zone is increasingly attracting investments from foreign investors who have already tasted success there.

Most of the investment is in hi-tech and supporting industries.

In Dong Nai Province, dozens of foreign businesses have been expanding or investing in new projects.

Some of the notable ones approved this year include two electronic part and component factories by Korean companies Hansol Electronics Viet Nam and Platel Vina at a cost of US$100 million and $30 million.

The two already have successful projects in HCM City and Dong Nai.

Cao Tien Dung, chairman of the Dong Nai People’s Committee, said there are around 372 projects from Korea and 253 from Japan in local industrial parks.

Companies from the two countries have been investing anew and expanding in the province in a wide range of industries such as footwear, textile and garment and supporting industries, and this is expected to continue, according to Dung.

Binh Duong Province has attracted $301 million, including $253 million in existing projects.

In HCM City, US giant Intel Products is set to invest an additional $475 million in its existing plant to increase production of 5G products and Intel Core processors.

With the availability of land shrinking, the HCM City Hi-tech Park is focusing on the expansion of existing projects rather than new ones, according to its management.

It plans to build a 160ha science and technology park in the future to attract investment in hi-tech.

Hua Quoc Hung, head of the HCM City Exporting Processing and Industrial Zone Authority, said the aim is to attract $550 million worth of FDI, especially in key sectors and supporting industries.

The first two months of the year saw $5.46 billion worth of FDI coming into Viet Nam, a 15.6 per cent drop from the same period last year.

Japan, Singapore and South Korea have been the three largest investors. 

It’s important to enhance enterprises’ competitiveness

It is important to improve the capacity of enterprises and not just develop them in term of quantity, experts said.

The General Statistics Office (GSO) said there were about 810,000 firms by the end of last year, missing the Government’s target of one million.

But the Government still has set the goal of 1.2-1.5 million enterprises by 2025 based on the fact that the business climate kept improving.

Statistics from the Ministry of Planning and Investment pointed out that the number of enterprises in Viet Nam increased by 10.5 per cent in the 2016-19 period with around 100,000 new firms launching every year, twice as high as the 2011-15 period. However, most were of small and medium sizes.

GSO’s Director Nguyen Thi Huong said the COVID-19 pandemic was significantly affecting the socio-economic development and health of enterprises.

Research by the Ministry of Planning and Investment pointed that the health of the Vietnamese enterprises was at the most pessimistic level in recent years. The number of new firms established in 2020 was 2.3 per cent lower than 2019 and the total number of employees of new firms was 16.9 per cent lower.

Economic expert Ngo Tri Long said Viet Nam is looking to develop big enterprises to lead the economy. However he noted that small and medium sized enterprises (SMEs) played a very important role but the policies introduced to support SMEs were proved not to work effectively as expected. For example, the SMEs support funds did not operate efficiently as it remained difficult for firms to get accessed to financial supports from these funds.

Long said that the support policies for SMEs must be more practical.

A weakness of Vietnamese enterprises was that most of them failed to participate in the global value chain, adding that it was critical for enterprises to participate in global value chain to develop in the integration process.

He said that support policies should be introduced for enterprises which were selected to be capable of engaging in the global value chains.

Early this year, the Government assigned the Ministry of Planning and Investment to develop a resolution about developing enterprises in 2021-2025 with a vision to 2030 which aimed to have 1.5 million firms by 2025, 15 to 20 of which are private and have capitalisation of more than US$1 billion.

To achieve this goal, there must be around 100,000 – 150,000 new firms every year in the next five years or the number of enterprises must increase around 12-14 per cent per year.

According to To Hoai Nam, Deputy President of the Viet Nam Association of SMEs said that while the quality of enterprises was the top concern, it was also important to develop a big enough enterprise community to create breakthroughs.

Nam said that it was critical to create a favourable business environment to achieve the goal in the next five-year period, adding that barriers related to administrative procedures must be removed and compliance costs reduced for firms. 

Demand for wood products, furniture in US remains high

Export opportunities for furniture and wood products to the US will increase this year as many Americans continue to work at home amid the COVID-19 crisis.

Nguyen Hoai Bao, a member of the executive board of HCM City's Handicraft and Wood Industry Association (HAWA), said that in 2020 total export turnover of wood products reached over US$13 billion, more than 16 per cent higher than in 2019, despite the pandemic.

The US is one of most important markets for Vietnamese wood products, he told a conference in HCM City last week.

Thomas Russell, senior editor of the US magazine Furniture Today, said that current global logistics challenges include a shortage of containers. This has led to a spike in demand and prices, as well as the interruption of production flows due to manufacturers having to store goods in warehouses.

However, he noted that the furniture market in the US has shown positive signs, including high housing demand and a growing furniture market.

In five years, furniture and bedding sales in the US are expected to reach $143 billion, an increase of nearly 25.5 per cent from 2020.

“Travel and entertainment restrictions will keep people at home for the foreseeable future, and consumer demand remains high for furniture, home accents, and other types of home decor," Russell said.

Certain products are especially popular, such as wood furniture for home offices and casual dining pieces.

Dorothy Wayson, national policy manager for the Lacey Act Program for the Animal and Plant Health Inspection Service in the US, said that wood product exporters need to adhere to the US Lacey Act, which prohibits trade of wildlife and plant products (including wood products) that have been illegally harvested, owned or transported.

Exporters must declare information about their consignments such as the plant genus and species used in their products, and the country where the wood was harvested.

The conference was held by HAWA and the US Forest Service under the country’s Department of Agriculture.

The pandemic last year had little impact on wood product manufacturing, so Viet Nam’s wood product exports did not take a hit, according to Nguyen Chanh Phuong, deputy chairman and general secretary of HAWA.

Total retail sales of goods and services up 5.49% in two months

Total retail sales of goods and services in the first two months of this year reached VND904.5 trillion, an increase of 5.49% over the same period in 2020.

According to the Ministry of Industry and Trade, the seven-day Lunar New Year holiday and the outbreaks of the COVID-19 pandemic in several localities in February 2021 slowed down trade and service activities in February compared to the previous month.

Total retail sales of goods and services in February was reported at VND439.7 trillion, down 5.4% from the previous month but up 8.2% over the same period in 2019.

During the two-month period, total retail sales of goods was reported at VND722.1 trillion, up 7.8% over the same period last year, accounting for 79.8% of total retail sales of goods and services in two months.

Meanwhile, total retail sales of accommodation, catering, travel and tourism services all decreased in the first two months of this year, with a 4.3% decrease in the revenue of accommodation and catering services and a 62.1% decrease in the revenue of tourism and travel services.

Retail sales of other services was posted at VND91.5 trillion, up 3% over the same period in 2020, accounting for 10.1% of the total retail sales of goods and services.

Ha Noi to review planning of industrial and export processing zones

Ha Noi is requiring relevant agencies to review the planning of the city’s industrial and export processing zones to make them develop more effectively.

Nguyen Manh Quyen, vice chairman of the People's Committee of Ha Noi, said after reviewing, the Management Board of Ha Noi Industrial and Export Processing Zones (HIZA) must propose changes to make it suitable with the city’s current development. The changes can relate to the termination of some existing zones or addition of more zones to the city’s planning.

Planning was the most important issue determining the effective development of industrial zones in the city, Quyen noted.

Currently, there are nine industrial zones in operation in Ha Noi, covering a total area of 1,369 ha. The occupancy rate reaches 95 per cent.

Last year, the industrial zones attracted 11 new investment projects with registered capital of US$32.8 million and VND144.4 billion. Another 21 existing investment projects in the zones also added more registered capital worth $72.9 million and VND147 billion during the year.

The revenue of enterprises in the industrial zones reached $7.6 billion last year, down 2 per cent compared to 2019. They contributed $235 million to the State budget, down 3 per cent against 2019.

The enterprises’ turnover in the first two months of 2021 reached $1.24 billion while their export and import values were $838 million and $748 million, respectively.

Tran Anh Tuan, HIZA’s deputy head, admitted the attraction of investment in the city’s industrial zones was still low, with no large-sized and high-tech projects.

The People's Committee of Ha Noi has so far also required HIZA to set targets for the city’s zones with focus on attracting investment until 2025.

According to investors in the zones, their operation is still facing difficulties as authorities make too many overlapping inspections and examinations. Besides, the administrative procedures are still cumbersome and time-consuming for investors.

Quyen directed HIZA to consider and propose to the city to remove the difficulties for the investors. 

HCM City mulls ways to attract global investors, targets $5.4b FDI

HCM City has set itself an FDI target of US$5.4 billion this year and would focus on improving infrastructure and streamlining administrative procedures to achieve it, a city investment official said.

Le Thi Huynh Mai, director of the Department of Planning and Investment, said the city also has other targets such as incorporating more than 40,000 new businesses, rising in the provincial competitiveness index (PCI), and others.

All officials and public employees would handle documents electronically, and exchanges between various administrative agencies would also be electronically handled, she added.

Nguyen Thanh Phong, chairman of the People’s Committee, said, “Improving the investment climate is an imperative.”

Saying “administrative reform” is too “general” a description, he said, “It must be more specific, such as how long it will take to respond to enterprises.”

He instructed the department to seek ways to attract foreign investment into industrial parks and export processing zones.

He said priority should be given to hi-tech investors already present in the city, especially those with industry 4.0 technologies and supporting industries with high added-value.

The Government has allowed the city to convert 30,000 hectares of agricultural land for use for other economic activities, but only less than 1,000ha would be used for industry, he said.

“The city has not built any new industrial parks in the past five years, and so fails to attract global investors.”

The department should have specific solutions to shift the city’s economy towards high technology and away from labour-intensive industries, he said.

Many investors have complained that traffic infrastructure and administrative procedures have not improved much over the years.

To resolve it, the city is speeding up work on a range of infrastructure projects such as the metro line No 1 and Thu Thiem Bridge No 2.

It is focusing on streamlining procedures for licensing, utilising information technology to reduce the time it takes for the procedures and expanding online public services.

According to the HCM City Statistics Office, there were only three FDI projects with a total registered capital of $115 million in the first two months of this year.

Last year it had attracted only $4.36 billion, half the 2019 figure.

Singapore remained the largest investor with more than $1.1 billion, followed by South Korea, Japan, the British Virgin Islands, Cayman Islands, the Netherlands, and the US.

According to the department, a total of 42,000 businesses were incorporated last year, down 5.2 per cent over 2019.

Some 13,800 businesses suspended operations, a 40 per cent increase, while nearly 6,000 wound up, according to the department. 

Women in senior leadership positions pass 30 per cent mark despite global pandemic

The number of women holding senior leadership positions in midmarket businesses globally has hit 31 per cent, despite the COVID-19 pandemic affecting economies around the world, according to Grant Thornton’s annual Women in Business report.

Nguyen Thi Vinh Ha, deputy general director, country head of Advisory Services at Grant Thornton Vietnam said, “Passing the 30 per cent of women in senior roles globally is an important milestone for businesses, but is not the end goal. Those businesses that want to reap the benefits of a better gender balance must continue to take action to enable women to realise their ambitions.”

In fact, Vietnam exceeded the global average with 39 per cent and ranked third amongst the 29 countries surveyed, behind the Philippines and South Africa (up 6 per cent over 2020), on a par with Brazil and India and ranked second in the Asia-Pacific behind the Philippines with 48 per cent.

Seeing the proportion of women leaders rise to 31 per cent is encouraging, given the global figure was stubbornly stuck at 29 per cent for the previous two years (2019 and 2020). It also passes the important 30 per cent threshold, which research shows is the minimum representation needed to change decision-making processes. All regions surveyed except for the Asia-Pacific (28 per cent) have now surpassed the crucial 30 per cent milestone.

Another encouraging finding is the types of leadership roles women are occupying. Grant Thornton International’s research reveals higher numbers of women across operational C-suite roles compared to last year, with the proportion of female CEOs up 6 percentage points (pp) to 26 per cent, female CFOs also up 6pp to 36 per cent, and female COOs up 4pp to 22 per cent. The proportion of women in more traditional senior HR roles was down slightly at 38 per cent (-2pp against 2020), and has trended downwards since 2019. 

The most popular position for women in Vietnam in 2021 was CFO at 60 per cent (up from 32 per cent in 2020), putting Vietnam No.1 in the Asia-Pacific. The position of human resources director ranked second with 59 per cent, which was also a very common position in the rest of the Asia-Pacific. Vietnam made significant strides in the number of women holding the position of CEO with an increase from 7 to 20 per cent in 2021 (ranking seventh in the Asia-Pacific).

Additionally, over two-thirds (69 per cent) of respondents agree that in their organisations, new working practices as a result of COVID-19 will benefit women’s career trajectories in the long-term, despite potentially hindering factors which may be down to the flexibility that remote working offers. The percentage of businesses agreeing with this statement in Vietnam was above the global average, with a majority of 83 per cent of respondents in agreement.

While the number of women in leadership roles has grown, questions remain over the impact of the COVID-19 pandemic on women, particularly working mothers. UN data shows that before the pandemic, women did three times as much unpaid housework as men, and mounting evidence indicates that COVID-19 is only increasing this disparity – as well as adding the extra responsibilities of childcare and homeschooling while schools are closed.

Valerie Teo, deputy general director, Tax Partner at Grant Thornton Vietnam said that, “Breaking the 30 per cent barrier certainly does represent progress – having grown from 19 per cent 17 years ago when we first started tracking this – but these gains can easily be lost. Reassuringly, 92 per cent of businesses globally say they are taking action to ensure the engagement and inclusion of their employees against the negative backdrop of the pandemic and with the normalisation of remote working, employers are becoming ever more flexible about how, where, and when employees do their job."

“Now more than ever, businesses need to stay focused on what is enabling women to progress to leadership positions, so that women move forward rather than back as a result of the global pandemic.”

Ninh Thuan looking for investor for $135 million BIM wind farm

Ninh Thuan Department of Planning and Investment has issued a call for interested investors to join bidding to develop the BIM wind farm project.  

The BIM wind farm has the total estimated investment capital of VND3.11 trillion ($135.2 million) and covers an area of 30.8 hectares in Thuan Nam district of Ninh Thuan province.

Ninh Thuan People’s Committee has approved BIM wind farm, which is one of the projects listed in planning approved by the prime minister.

The project has a designed capacity of 88MW. The precise investment capital will be determined after the investor built the feasibility report.

The deadline for submitting the applications is March 19.

Once completed, the wind farm will generate 306.9 million kWh a year for the national power grid, which will contribute to balancing the ratio of renewable and other energy sources.

Previously, in April 2019, the province organised the inauguration ceremony for the solar power complex with three farms namely the 30MWp BIM 1, the 250MWp BIM 2, and the 50MWp BIM3 invested by BIM Group.

The construction of this complex was started in January 2018 with the total investment capital of VND7 trillion ($304.35 million). It has installed one million panels and has a capacity of 600 million kWh per year.

The province has a high level of sunshine hours (2,467) per year and solar radiation per square metre 1,800kWh per year, making it ideal for solar energy projects.

Under the province’s green energy plan, by 2030 it is expected to reach a total capacity of 1,500MW of wind energy and 3,912MW of solar energy.

The province is now home to 17 operational solar farms with a total capacity of 1,100MW. It has also approved 13 wind farms with a designed capacity of 680MW, three of which are operational.

Slight increase in car imports in the first two months

Vietnam saw a slight rise in car imports between January and February this year. 

In the first two months of this year, Vietnam imported 15,343 cars worth a total USD346 million, representing an on-year rise of 3.3% and 0.2% respectively.

According to the General Statistics Office of Vietnam, in February, around 7,000 cars were imported into Vietnam worth USD134 million, down 32.2% and 40.6% on-year respectively.

In January, 8,343 cars were imported into Vietnam with a total value of USD213 million.

Last year, Vietnam imported 105,261 cars with a total value of USD2.294 billion, down 24.5% and 27.4% consecutively on-year.

Industry insiders attributed the decrease in car imports last year 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 vehicles, which encouraged customers to buy locally-made cars.

Uncertainties would likely cast a shadow over the local car market in 2021, especially when the Covid-19 pandemic continued and customers curb their spending, according to Nguyen Trung Hieu from the Vietnam Automobile Manufacturers Association (VAMA).

Hieu view, director of auto dealership Thien Phuc An Co. Nguyen Tuan said if the market continued to remain quiet, car dealers might provide their own sales promotion programmes for customers to maintain revenue.

Bình Phước seeks investment in infrastructure

Bình Phước Province is soliciting investment in a series of infrastructure projects including airport and industrial parks in 2020-25.

Nguyễn Minh Chiến, head of its Economic Zone Authority, said the province has been streamlining administrative procedures, offering favourable policies for investors, carrying out activities to facilitate online investment, and adopting modern and smart administrative technologies.

Nguyễn Tấn Hùng, head of province's Department of Transport, said the department has worked with other relevant agencies to prepare a plan to build an airport in Hớn Quản District.

According to local authorities, Tecnic Hớn Quản airport will have a key role in attracting investment to the province in the next five years.

Besides the airport, the province is also focusing on other transport infrastructure works such as the HCM City- Chơn Thành-Đắk Lắk Expressway, the Dĩ An-Hoa Lư Railway and Highway 14C to Đắk Nông Province.

Trần Tuệ Hiền, chairwoman of the People’s Committee, said the province is soliciting US$2 billion worth of investment in 80 key projects.

It would focus on attracting investment in manufacturing, supporting industries and agriculture, she said.

Situated in the key economic region of the South, Bình Phước is the largest of the 19 southern provinces.

It is famous for two crops with high economic value, rubber and cashew, and has 243,000ha of land under the former and 138,000ha under the latter.

It achieved 7.1 per cent growth, and targets 8.5-9 per cent in 2021. 

Over 5,000 tonnes of agricultural products exported daily through Tan Thanh Border Gate

Since the Lunar New Year holiday, Tan Thanh Border Gate in the northern mountainous province of Lang Son has conducted export procedures for 200-230 vehicles carrying agricultural products - equivalent to more than 5,000 tonnes of agricultural products every day.

On March 5, Deputy Director of the Tan Thanh, Van Lang, Tan Thanh Customs Branch Hoang Thi Thieu Hoa said that from the beginning of the year, export revenue through Tan Thanh Border Gate reached over US$96 million, up more than 280% over the same period last year, mainly from watermelon, dragon fruit, mango and jackfruit.

Deputy head of the Customs Department of Lang Sơn Province Vy Cong Tuong affirmed that Tan Thanh is one of the largest border gates for exporting agricultural products of the province.

Recently, although it continued to be affected by the COVID-19 epidemic and a number of other unfavourable factors, the export revenue of agricultural products through the province has increased sharply in the first two months of 2021, he added.

The provincial Customs Department has directed relevant units to continue to strengthen, promote and facilitate import-export activities in the province, Tuong noted.

Emulation campaigns launched in response to Youth Month 2021

Youth Unions across the nation have launched various emulation campaigns in response to the Youth Month 2021 with multiple practical activities.

On March 7, in Hanoi, the Youth Unions under some of Hanoi’s power companies coordinated with the Youth Union of Ly Thai To Ward, Hoan Kiem District, to deploy the "Green Sunday" programme, providing instructions to Youth Union members and local residents on how to install online services on the National Public Service Portal, as well as experiencing the ecosystem of Hanoi Electricity and carrying out environmental cleaning activities.

On the same day, Hanoi’s Dong Anh District Youth Union launched an online contest on the 90 years of glorious traditions of the Ho Chi Minh Communist Youth Union and the history of Dong Anh District Youth Union (1946-2012). The contest continued until 4pm on March 16 at 90nam.huyendoandonganh.vn.

Yesterday 7, in Thu Duc City, Ho Chi Minh City, in response to the public greenery and parks development programme in newly-established cities, Youth Union institutions in 34 wards of Thu Duc simultaneously planted trees to improve the urban landscape. They also joined environmental sanitation activities and cleaning rivers, canals and ditches in residential areas.

In the morning of the same day, at Bui Thi Xuan Primary School in Loc Nga Commune, Bao Loc City, Lam Dong Province, the Bao Loc Youth Union launched the Youth Month 2021 associated with meaningful activities including handing over a clean water supply work to Bui Thi Xuan Primary School and planting trees in the school campus.

The same activities have been launched as part of the Youth Month 2021 in Phu My Town, Ba Ria - Vung Tau Province.

On the 90th anniversary of the establishment of the Ho Chi Minh Communist Youth Union and its 40th anniversary, the Tuoi Tre (Youth) Publishing House released 136 new books on various topics, including political and historical books covering a selection of articles by President Ho Chi Minh on youth education and fostering from 1920 to 1969.

Plenty of room for export growth into French market

Vietnam remains the largest commodity supplier of the ASEAN bloc to France despite accounting for a modest share of their overall imports, according to the General Department of Vietnam Customs.

Vietnamese merchandise exports to the European country soared by 28% to over US$308.3 million in January 2021 compared to same period from last year

Simultaneously, Vietnamese imports from France surged by 92% to US$175 million, with the country recording a trade surplus of US$133.3 million.

Amid numerous challenges posed by the impact of the novel coronavirus (COVID-19) pandemic, some goods such as transportation and spare parts, leather and footwear, and rice witnessed robust growth rate of 222%, 160%, and 110%, respectively. These stellar increases can largely be attributed to tariff reduction commitments which were implemented following the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA).

Despite limited export scale, fruit and vegetable exports also recorded an increase of 17% to over US$3.5 million from last year’s corresponding period.

With France representing the second largest export market of Vietnamese fruit in the EU, there is plenty of room to boost the export of these products to the market due to substantial tariff reductions through the EVFTA.

According to data compiled by the Vietnamese Ministry of Industry and Trade, France has consistently been one of Vietnam’s leading trade partners in the EU over recent years.

Most notably, the European country makes up the fourth largest Vietnamese export market in the EU, behind the Netherlands, Germany, and Austria, thereby accounting for approximately 10% of the total exports to the bloc.

Yet, the proportion of Vietnamese goods exported to the market remains modest, representing a mere 1.1% of France’s total imports.

Local merchandise exports to France are forecast to grow at the end of the first quarter due to the COVID-19 pandemic being brought under control and lockdowns subsequently being lifted.

Ca Mau moves to expand world-standard shrimp farming

The southernmost province of Ca Mau is applying itself to developing intensive and super-intensive shrimp farming along with alternative shrimp - rice culture and integrated shrimp - forest cultivation models under international standards.

Le Thanh Trieu, Director of the provincial Department of Agriculture and Rural Development, said shrimp farming will be modernised by promoting scientific application to improve productivity, quality, effectiveness, and food safety while also protecting the environment.

More investment will be poured into intensive farming to help the province maintain its leading position in Vietnam in shrimp farming, he noted.

From now to 2025, the local shrimp farming area will stay at about 280,000 ha, generating an annual output of 700,000 tonnes, up 3.5 percent each year on average.
Five super-intensive shrimp farming zones will be formed, with 1,000 ha gaining international certification. Meanwhile, about 10,000 ha of intensive and semi-intensive farming will be developed in areas with favourable conditions, including 500 ha that meet international standards, according to Trieu.

Resources are also being invested in the alternative shrimp - rice culture model, which suits local soil conditions and can help improve shrimp output, he said, noting that the province is looking to have about 40,000 ha of this type of farming by 2025, including 10,000 ha of certified organic farming.
The official added that the integrated shrimp - forest cultivation model, which is suitable for areas with mangrove forests, will also be expanded. Shrimp, together with crab, blood cockle, and fish, will be farmed organically in these mangrove forests, helping to improve the local shrimp industry’s value and competitiveness in both domestic and foreign markets.

Ca Mau is currently home to 19,000 ha of shrimp culture models meeting international standards such as GlobalGAP, Naturland, Best Aquaculture Practices, and Selva Shrimp. About 4,200 farming households are taking part in these farming models, with certified shrimp output topping 10,000 tonnes each year.

The province’s fishery output grew some 4.1 percent annually between 2014 and 2020. It was estimated at 600,000 tonnes last year, including 210,000 tonnes of shrimp, up 4.7 percent year-on-year./.

RCEP smooths way for Vietnam to join global supply chains

The Regional Comprehensive Economic Partnership (RCEP) agreement has enabled Vietnam to be connected better with global supply chains compared with other new-generation free trade agreements (FTAs), an official has said.

Nguyen Thi Thu Trang, Director of the WTO and Integration Centre at the Vietnam Chamber of Commerce and Industry (VCCI), said the signing of the RCEP at the 37th ASEAN Summit in 2020 demonstrated Vietnam’s resolve and success as ASEAN Chair.

It also showed Vietnam is a trustworthy partner and expressed its prestige in the international arena.

Regarding opportunities brought about by the agreement, Trang said it encompasses an economic region that provides the largest source of materials and equipment to Vietnam and serves as the country’s largest consumption market.

The agreement also covers the largest production chains in the world, thus facilitating Vietnam’s connectivity with other RCEP member economies as well as its foreign investment attraction.

The country will therefore find it easier to join global supply chains, according to Trang.

Nguyen Thi Thu Trang, Director of the WTO and Integration Centre at the Vietnam Chamber of Commerce and Industry (Photo: VNA)
The agreement has also posed many challenges, she added, explaining that it will increase Vietnam’s trade deficit in the region and see it lose institutional momentum with standards that are not too high.

In FDI attraction, most RCEP economies are major investors in Vietnam but there are still partners whose technologies and investment quality are not good.

The deal has also generated competitive challenges for Vietnamese firms, with the opening up of goods and services in the domestic market, Trang said.

To put the RCEP to best use, she suggested Vietnam adopt three groups of solutions: continuing to reform institutions and improve the business environment; devising clear industrial policies that define spearhead and supporting industries; and reforming control mechanisms and ensuring FDI quality.

To effectively implement the agreement, she said businesses need to improve their competitiveness, study the commitments in the deal, and brace for any and all challenges./.

Iron and steel exports witness big leap

During the opening two months of the year, iron and steel exports have enjoyed a stellar growth rate of 71.9% compared to the same period from last year, with major domestic firms such as Hoa Phat and Hoa Sen exporting large shipments.

The nation exported a total of 1,568 million tonnes of iron and steel worth US$1.123 billion during the reviewed period, marking a sharp rise of 71.9% compared to last year’s corresponding period, according to data released by the General Department of Vietnam Customs.

January saw Hoa Phat Group, the country's leading steel maker, export roughly 10,000 tonnes of galvanized sheet partners to Belgium and Spain, while it also shipped more than 12,000 tonnes of cold galvanized steel to the Americas in February.

Along with construction steel, Hoa Phat Group has also ramped up its export of steel pipes, galvanized steel, and galvanized steel wire to foreign markets.

Furthermore, Hoa Sen Group Joint Stock Company shipped high-value batches of galvanized steel sheet to the United States, Mexico, Europe, and Southeast Asia, with export volume exceeding 100,000 tonnes per month.

Nghiem Xuan Da, chairman of the Vietnam Steel Association, said domestic steel consumption throughout the reviewed period was estimated to have decreased by 30% compared to the same period from last year.

Da believes that although a series of free trade agreements (FTAs) have come into force, such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Vietnam-UK Free Trade Agreement (UKVFTA), not many local firms have the capacity to increase exports to the EU market.

In general, the local steel industry faces a number of obstacles due to five further countries, including Malaysia and Philippines which are two of the country’s major markets, conducting anti-dumping investigations into Vietnamese galvanized steel and steel pipes.

Moreover, the European Commission (EC) has recently announced plans to consider extending safeguard measures for imported steel. This comes after the EU on February 1, 2019, applied a safeguard measure against imported steel in the form of tariff quotas, with three groups of steel products from the nation being levied.

Experts have therefore advised local businesses to strive to fully tap into high-value markets such as China and Cambodia moving forward, with China expected to become a billion-dollar export market with many product lines.

Ample room for growth in Vietnamese exports to France

Vietnam remains France’s largest goods supplier in ASEAN and Vietnamese exports still have the opportunity to penetrate further into the European market.

The General Department of Vietnam Customs reported that Vietnam exported more than 308.3 million USD worth of goods to France in January, up 28 percent year-on-year.

Vietnam also imported 175 million USD worth of goods from the country, a year-on-year rise of 92 percent, resulting in a trade surplus of 133.3 million USD.

The highest gains were seen in means of transport and spare parts, garment-textiles, leather and footwear materials, and rice.

Phones and spare parts was a main driver, with export revenue exceeding 81.6 million USD.

France is also the second-largest importer of Vietnamese fruit and vegetables in the EU, behind the Netherlands, with over 3.5 million USD worth shipped to the country in January, up 17 percent year-on-year.

The results are attributable to the EU-Vietnam Free Trade Agreement (EVFTA), which took effect last August.

According to the European-American Market Department at the Ministry of Industry and Trade, France has long been one of Vietnam’s major trade partners in the EU.

It is Vietnam’s fourth-largest importer in the bloc, after the Netherlands, Germany, and Austria.

Vietnam’s exports to the country are expected to bounce back at the end of this quarter when the pandemic is better contained and lockdowns are lifted in France./.

Bac Giang aims to lure 1.3 billion USD of investment in 2021

The northern province of Bac Giang is working hard to complete the target of attracting about 1.3 billion USD worth of investment in 2021, said Chairman of the provincial People’s Committee Le Anh Duong.

Duong said that in the area of industry, the province will prioritise projects with a high proportion of high, new, green and economical technology, using domestic materials and having commitment in technology transferring and labour training.

The province has designed particular areas for projects in different fields, including industry, agriculture, tourism, services, urban areas, logistics, entertainment and health care.

For foreign-invested projects, Bac Giang will strive to lure partners which haveg global trademarks with high financial capacity, long-term operation, and projects in supporting industries.

For domestically-invested projects, the province will call for investment from businesses in the list of 500 largest firms of Vietnam (VNR500), especially in areas of agriculture, trade and services.

Nguyen Cuong, Deputy Director of the provincial Department of Planning and Investment, said that in the first two months of 2021, Bac Giang attracted over 588 million USD in investment, 4.5 times higher than that in the same period last year.

Notably, the province granted investment licences to a number of large projects, including 270-million-USD Fukang Technology Factory invested by Foxconn Singapore PTE Ltd, and a 210 million-USD Ja Solar PV Vietnam project funded by Ja Solar Investment (Hong Kong) Limited.

Recently, the Prime Minister has agreed to build three industrial parks and expand three other IPs in Bac Giang province.

In 2020, Bac Giang granted new licences and permitted additional investment to 215 projects with total investment of nearly 1.4 billion USD, up 7.3 percent year on year, rising to the ninth position among provinces and cities nationwide in FDI attraction./.

Source: VNA/VNS/VOV/VIR/SGT/Nhan Dan/Hanoitimes