Some 60 companies in Vietnam exported 143 million units of medical face masks in October.

Vietnamese enterprises exported a total of 1.13 billion medical face masks in the first ten months of 2020, according to the General Department of Vietnam Customs (GDVC).

 Vietnam is one of the world's major production hub of protective gear and clothes. Photo: Cong Chien. 
In October, around 60 companies in Vietnam exported medical face masks to countries such as the US, Europe, Singapore, or South Korea, among others, with over 143 million units, slightly up 0.3% month-on-month.

This marks an increase in two consecutive months in Vietnam’s face mask export, following a 5.5% month-on-month growth in September.

In May, Prime Minister Nguyen Xuan Phuc approved the export of medical face masks and protective gear provided domestic demand and reserves are met.

However, the export turnover of face masks declined in July after the Covid-19 pandemic was gradually contained in many countries. In the domestic market, demand for face masks has also weakened as local people are calmer and more experienced in dealing with the Covid-19 pandemic.

Since September, demand for face masks has sharply risen as countries around the world are struggling with a surge in Covid-19 infections, especially in Europe and the US.

Major hub for protective gear production

In addition to medical face masks, major textile firms in Vietnam, including Garment 10, TNG, and Dong Xuan Textile are receiving huge orders of cloth face masks production.

Under the growing impacts of the Covid-19 pandemic, face mask production is considered a viable solution for garment companies in Vietnam to maintain operations and offset losses from lower demand for garments.

Vietnam has emerged as one of the world’s major production hubs of protective gear and clothes, thanks to its capability of receiving large orders and quick delivery. In September, Standard Chartered announced Dong Nai Garment Company (Donagamex) as its latest client to tap the bank’s US$1 billion-financing commitment to the global fight against Covid-19.

Specifically, the bank’s extension of a credit of VND70 billion (equivalent to US$3 million) will provide Donagamex the working capital to ramp up production of medical and cloth masks as well as medical gowns to meet the rising demand for personal protective equipment (PPE) globally.

Under the same program, Standard Chartered previously provided credit of VND100 billion (US$4.3 million) for Garment 10 and US$63 billion (US$2.7 million) for Bac Giang LGG Garment.

All three are leading companies in Vietnam’s textile industry that are specialized in exporting garment products to the US, Europe or Japan, among others.

RCEP to create opportunities for Japanese manufacturers, farmers: minister

The Regional Comprehensive Economic Partnership (RCEP) Agreement will create new opportunities for Japanese manufacturers and farmers, and contribute greatly to increasing Japan’s exports to Asia, Japanese Minister of Economy, Trade and Industry Hiroshi Kajiyama said on November 15.

The 15 signatories are seeking to wrap up domestic procedures and put the pact into effect “as quickly as possible,” Kajiyama told reporters after the deal was signed.

The deal will take effect after ratification by six members of the Association of Southeast Asian Nations and three of the other countries.

Under the deal, Japan will eliminate 61 percent of tariffs on agricultural product imports from ASEAN nations, Australia and New Zealand, 56 percent for China, and 49 percent for the Republic of Korea, while maintaining tariffs on five product categories - rice, wheat, dairy products, sugar, and beef and pork - to protect domestic farmers.

Meanwhile, the other 14 countries will cut tariffs on 92 percent of Japanese industrial exports including automobile parts and steel products.

ASEAN Plus Three countries promote inter-bank cooperation

Government-sponsored development banks of Japan, China and the Republic of Korea signed an agreement with major financial institutions in the Association of Southeast Asian Nations (ASEAN) to boost inter-bank cooperation during the ASEAN Plus Three Summit held virtually on November 14.

The agreement aims to bolster the pandemic-hit Southeast Asian economy. It is the first of its kind since the ASEAN Plus Three InterBank Cooperation Mechanism was launched in November last year, to meet growing demand for infrastructure projects in the region.

The Japan Bank for International Cooperation (JBIC), the China Development Bank and the Korea Development Bank aim to build close cooperative ties with their ASEAN peers to stabilise the financial system and improve liquidity in global markets, according to JBIC.

As a number of Japanese companies have made inroads into the fast-growing market, JBIC seeks to reinvigorate economic activities in the ASEAN region through inter-bank cooperation, the Japanese lender said.

Among the ASEAN members, Indonesia, the largest economy in terms of gross domestic product, entered its first recession since the late 1990s in the July-September period amid the pandemic, shrinking 3.49 percent on year, following a steeper 5.32 percent contraction during the previous quarter.

ASEAN participants in the scheme include PT Bank Mandiri (Persero) Tbk. of Indonesia, Canadia Bank Plc. of Cambodia, DBS Bank Ltd. of Singapore, Kasikornbank Public Co. of Thailand and CIMB Group Sdn Bhd of Malaysia.

Others are Myanmar Foreign Trade Bank of Myanmar, BDO Unibank Inc. of the Philippines, Bank Islam Brunei Darussalam Berhad of Brunei, the Joint Stock Commercial Bank for Investment and Development of Vietnam, and the Lao Development Bank of Laos.

Singapore will soon ratify RCEP agreement: Minister

Singapore will soon ratify the Regional Comprehensive Economic Partnership (RCEP) agreement which was signed by 15 member countries on November 15, said Minister for Trade and Industry Chan Chun Sing.

Speaking at a press conference following the signing of the deal within the framework of the 37th ASEAN Summit and Related Summits held virtually by Vietnam from November 12-15, Chan said, to reap the benefits of the RCEP, “work remains to be done”, adding that signatories would need to “accelerate efforts to ratify the agreement as soon as possible”.

The minister said Singapore will ratify the RCEP "definitely" within the next 12 months. And while there is no "firm timeline" for the other countries, "we expect this to be done soonest because I think all the countries involved have given the commitment to expedite their domestic processes", he said.

Chan said the early implementation of the RCEP will potentially provide further opportunities to Singapore’s trade with the 14 other signatories, which totalled 50.4 percent (515 billion SGD or 387.9 billion USD) of the country’s global trade in 2019.

“For Singapore, the RCEP provides a strong foundation for us to rebuild our economy and overcome the challenges as we emerge from the pandemic together,” he stressed.

The RCEP consolidates smaller existing agreements to form the world’s largest free-trade agreement, covering a third of the world both in terms of GDP and population.

The RCEP will come into force when six ASEAN countries and three non-ASEAN countries have ratified it.

German media emphasizes role of RCEP in Asia-Pacific economic integration

German newspapers have run articles spotlighting the importance of the Region Comprehensive Economic Partnership (RCEP), especially for economic integration in the Asia-Pacific region.

The agreement was signed on November 15 by 10 ASEAN countries and their trade partners – China, Japan, the Republic of Korea, Australia and New Zealand.

Handelsblatt (Trade) newswire on November 14 said that the deal will form a free trade region which comprises of 2.2 billion people and accounts for one-third of global gross domestic product.

The agreement, signed after eight years of talks, will reduce tariffs, set common trade rules and also facilitate supply chains.

The article also cited economists as saying that the deal is of great importance for economic integration in the Asia-Pacific region.

Meanwhile, FAZ newspaper assessed that reaching consensus on tariff reductions and regulations related to around 20 aspects is a success of the RCEP signatories which are competing in many fields.

The article quoted economist Radhika Rao from the Development Bank of Singapore (DBS) as saying that the deal will bring about a chance for the region to turn the “factory of the world” into the “market of the world”.

The DW (Deutsche Welle) newspaper also ran an article on the signing of the RCEP, saying that 15 nations in the Asia-Pacific region have entered into the world's largest free-trade agreement, which they hope will accelerate the recovery of their economies, ravaged by the coronavirus pandemic.

Signing of RCEP agreement a historic achievement of region: AKP

The signing of the Regional Comprehensive Economic Partnership (RCEP) Agreement is a historic achievement of the region, according to Cambodia’s national press agency Agence Kampuchea Press (AKP).

Cambodia and other 14 member countries signed the pact on November 15 via videoconference, following the virtual 4th RCEP Summit hosted by Vietnam.

Cambodian Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, on behalf of Prime Minister Hun Sen, and leaders of other RCEP nations witnessed the signing ceremony.

The agreement will contribute to the protection and the promotion of globalisation, and the support of rules-based multilateral trading system, AKP said.

It is an indispensable prerequisite for the principles of free and fair trade, and an important driving force for sustainable socio-economic development, it continued.

The RCEP agreement will be also an important catalyst in contributing to economic growth, improving the livelihoods of people in the region, and helping to restore regional economic development after the COVID-19 pandemic.

The signing of the agreement will form the world’s largest free trade agreement, covering 2.2 billion people, or 30 percent of the world population, with combined gross domestic product (GDP) of about 26.2 trillion USD or about 30 percent of global GDP and nearly 30 percent of the world trade.

Based on the result of the negotiations and the study by the Economic Research Institute for ASEAN and East Asia (ERIA), it is shown that after the conclusion of the RCEP agreement, per annum, Cambodia is expected to increase 2 percent on top of the current GDP, 7.3 percent and 23.4 percent in exports and investment, respectively.

ASEAN 2020: Indonesia underlines potential of digital economy

Indonesian President Joko Widodo has voiced his belief that the acceleration of digital transformation of micro-, small- and medium-sized enterprises (MSMEs) will encourage the revival of the regional economy.

In his speech at the ASEAN Plus Three Leaders’ Interface with Representatives from the East Asia Business Council on November 14, he called on all countries to continue believing that there are still opportunities amid the current difficulties.

According to the President, the COVID-19 pandemic has indeed dealt a blow on the world economy in which all countries without exception are facing negative economic growth. In ASEAN, more than 30 million people are facing the risk of losing their jobs.

By 2025, the ASEAN digital economy is projected to value at about 200 billion USD, while that of Indonesia is estimated to reach 133 billion USD by the time.

He noted, however, there are still many challenges in digital transformation. Many types of old businesses and jobs are closed. About 56 percent of jobs in five ASEAN countries are at risk of being lost due to automation.

In addition, the digital divide in ASEAN countries is still considered very large.

He went on to say that there are a number of things that ASEAN countries must continue to encourage. First, they need to ensure that the digital revolution runs inclusively by paying attention to aspects of access, affordability, and ability.

ASEAN must also move in order to become a big player in the digital-based economy while at the same time making the digital economy the main strength of the organisation.

Widodo emphasised that ASEAN should not be just a digital market, but must grow into a major force capable of helping MSMEs in ASEAN enter the global supply chains.

He said the governments of ASEAN countries must also have a bigger share in encouraging digital transformation, adding that strong synergy between ASEAN countries was needed to create a conducive digital ecosystem in the region.

Digital trade barriers must be eliminated, legal certainty must be built, and simplification of procedures and licensing systems must be carried out, to strengthen partnerships between the governments and the private sector to strengthen digital connectivity.

Ho Chi Minh City busy reviving tourism

 

With less than 2 months to go until the end of the year, travel companies in Ho Chi Minh City are rushing to offer discounted tours in the hope that the market can at least be partially revived this year. 

Better weather and the introduction of stimulus programmes have made many tourists from the north book tours down south.

Attractive tours at reasonable prices are sure to entice holidaymakers looking for some time away.

In an attempt to revive the city’s tourism sector, about 60 percent of travel companies have taken part in the second tourism stimulus programme, offering nearly 200 discounted products in total.

Local tourism companies are also looking to establish criteria for safe destinations, to reboot tourism in the new era./.

Vietnam finance ministry strive to improve budget transparency  

This is the seventh consecutive year that the finance ministry publishes the report on state budget estimates, which the ministry considers an important practice to promote transparency and publicity of Vietnam’s state budget.

The Vietnamese Ministry of Finance (MoF) has published the 2021 state budget plan for public comment, pending the National Assembly’s approval, aiming to provide clear and understandable information related to the state budget. 

This is the seventh consecutive year that the MoF publishes the report on state budget estimates, which the ministry considers an important practice promoting transparency and publicity of Vietnam’s state budget.

All figures and numbers in the report are demonstrated in a simple way via charts, graphics and table, so that ordinary people, even those that are unfamiliar with finance – budget issues could grasp a basic understanding of the country’s financial situation.

The publication is available in Vietnamese only.

With the report, the MoF expected to encourage public participation in the allocation and management of state budget and ensure greater efficiency in the work.

Over the years, the Vietnamese government has made improvements to ensure greater transparency of national and ministerial budget management. Specifically, Vietnam’s budget transparency score in the Open Budget Survey 2019 (OBS), the world’s only independent and fact-based research instrument, significantly increased to 38 out of the maximum 100 points, 23 points higher than the previous assessment in 2017.

The score pushed Vietnam’s ranking to 77 out of 117 countries and territories, up 14 places against 2017.

Covid-19 results in higher fiscal deficit

Vietnam’s budget deficit this year is estimated at VND319.5–328 trillion (US$13.78-14.15 billion), equivalent to 4.99 – 5.59% of GDP, significantly higher than the 3.44%-of-GDP target set in early 2020.

Such a high fiscal deficit is due to lower-than-expected state budget revenue and an increase in regular spending caused by severe Covid-19 impacts, noted Minister of Finance Dinh Tien Dung in a National Assembly session on October 20.

This year, Vietnam’s budget revenue is estimated at VND1,320 trillion (US$57 billion), down VND189.2 trillion (US$8.16 billion) or 12.5% compared to the year's estimate and 14% against the figure recorded in 2019.

Meanwhile, state budget spending could reach VND1,680 trillion (US$72.47 billion) this year, down VND60.89 trillion (US$2.62 billion) or 3.5% against the estimate. Notably, regular spending is expected to rise to VND1,070 trillion (US$46.16 billion), or an increase of VND12 trillion (US$517.7 million) or 1.1% of the estimate, mainly for funding measures against the pandemic, natural disasters and social security.

For next year, Vietnam’s state budget revenue is estimated at VND1,343 trillion (US$58 billion) and expenditure of VND1,687 trillion (US$72.78 billion), resulting in a fiscal deficit of VND343.67 trillion (US$14.82 billion).

Danang Council to elect new chairman

Le Trung Chinh, vice chairman of the Danang People’s Committee, has been introduced as the candidate for the municipal chairman's post for the 2016-2021 tenure, and voting will take place at a meeting of the municipal People’s Council early next month, the local media reported.

Chinh, who will replace Huynh Duc Tho, was born in Danang in 1969 and has been vice chairman of the city since December 2018. Earlier, he was director of the municipal Department of Education and Training, and secretary of the Party Committee and chairman of Ngu Hanh Son District.

On November 11, the Danang Party Committee held a meeting on personnel planning in the city.

Accordingly, Luong Nguyen Minh Triet, deputy secretary of the municipal Party Committee, was recommended for the post of chairman of the municipal People’s Council in the 2016-2021 tenure, replacing Nguyen Nho Trung.

In addition, Tran Phuoc Son, director of the municipal Department of Planning and Investment, was to assume the post of secretary of the Party Committee of Lien Chieu District. Tran Thi Thanh Tam, secretary of the Son Tra District Party Committee, will replace Son to lead the department.

Meanwhile, Tran Thang Loi, head of the municipal Party Committee Office, will serve as secretary of the Party Committee of Son Tra District.

The municipal Party Committee also appointed director of the municipal Department of Construction Le Tung Lam as secretary of the Party Committee of Thanh Khe District.

Moreover, director of the Department of Industry and Trade Nguyen Ha Bac will hold the post of head of the office of the Danang delegation of NA deputies, People’s Committee and People's Council.

The office of the Danang Party Committee Office will be led by Nguyen Van Hung, deputy head of the office.

Danang police bust drug trafficking ring from HCMC

Over 4,000 ecstasy pills are seized by the Danang City police – PHOTO: NLDO

Some drug traffickers of a ring from HCMC were caught red-handed selling illicit drugs in Lien Chieu District in Danang City, with over 4,000 ecstasy pills confiscated.

The Investigation Police Division on Drug-related Crimes under the Danang Police Department told Nguoi Lao Dong Online on November 11 that the pills were hidden inside a car.

The leader of the ring was identified as Nguyen Quang Thin, a 31-year-old man from Nghe An Province.

In early October, the Danang police worked with the HCMC police and the Drug Crime Investigation Police Department under the Ministry of Public Security to investigate the ring.

Preliminary results of the investigation showed that Thin convinced Ngo Van Truyen, who was born in 1982 and lives in Quang Nam Province, and Nguyen Van Loc, a friend of Truyen's, to travel to Danang City and receive the drugs and sell them to addicts.

At the police station, the three drug traffickers admitted their illegal act.

Plan to power up energy sector

Providing a sufficient source of energy to facilitate Vietnam’s industrialisation and modernisation while also ensuring national energy security remained a challenge as Vietnam and the region are importing more and more energy.

Deputy Minister of Industry and Trade Dang Hoang An delivered the statement at a conference held in Hanoi on November 11.

In this context, Vietnam’s energy master plan for 2021-30 with a vision to 2050 is expected to build scenarios that will not increase energy costs, prevent energy from becoming a burden of the economy, ensure the nation’s harmonised energy development and contribute to promoting the country’s economic development, An said.

From 1997 to 2019, Vietnam's economy maintained a growth rate of nearly 7 percent. Its energy demand in the recent 10-year period increased 6.5 percent for primary energy while demand for electricity rose 10.5 percent in the period, he noted.

At the conference, delegates presented the overall energy development plan and sub-sectors planning of oil, gas, coal and electricity.

Nguyen The Thang, Head of the Electrical System Development Department under the Institute of Energy, said that according to the master plan’s base scenario, commercial electricity will reach 490.8 billion kWh by 2030 and 976 billion kWh by 2050, maintaining an increase of 8.3 percent in 2021-30, then decreasing to 3.4 percent in 2031-50.

In another scenario, commercial electricity will reach 523 billion kWh in 2030 and 1.110 billion kWh in 2050.

Nguyen Tai Anh, Deputy General Director of Vietnam Electricity said the Ministry of Industry and Trade, the consulting unit to build the energy master plan, should consider adding the import and transportation of LNG gas into the plan while evaluating the model of gas import because gas is not similar to other energy sources.

According to the Ministry of Industry and Trade (MoIT), the master plan will help provide a comprehensive assessment of national energy supply and demand and connect energy development with the socio-economic-environmental development goals set by Vietnam and its commitments to the international community.

The MoIT set a target that this plan will ensure the harmonious development of energy sub-sectors while also creating favourable conditions for State management activities in the energy sector.

According to the MoIT, this is the first time that Vietnam has built a master plan on energy. Therefore, the planning will face many challenges in synchronising and ensuring compatibility with other plans. Notably, drawing mechanisms for the plan requires the participation of many stakeholders./.

Japanese firm invests in big energy project in Khanh Hoa

Japanese firm J-Power is taking necessary procedures for the investment of a nearly 3.2 billion USD Van Phong Combined Cycle Gas Turbine (CCGT) Power Plant project in Van Phong Economic Zone in the south-central province of Khanh Hoa.

Representatives of the firm had a working session with Nguyen Tan Tuan, Chairman of the Khanh Hoa People’s Committee, on November 12 to discuss the investment and development of the project

The 3,000MW plant is scheduled to be built in Ninh Thuy industrial park with a total area of about 40 hectares, divided into two phases.

The main raw material for the plant is liquefied gas of the Vietnam Oil and Gas Group.

According to Tuan, the entire 40 hectares of land that J-Power wants to use for the project has been cleared, and the basic infrastructure is also ready.

He added that Khanh Hoa will report to the Ministry of Industry and Trade on the addition of four planning positions for gas turbine power and liquefied gas storage that the provincial People's Committee has chosen, including the project./.

New regulation aids firms in customs clearance

Applying risk management in customs operations will not only enable trade security and facilitation but will also allow the General Department of Customs to focus its resources on high-risk trade, heard a workshop held in Hanoi on November 12.

The workshop organised by General Department of Customs (GDC) and the US Agency for International Development (USAID) aimed to discuss the content of Circular 81, Decision 2218, and a new Voluntary Compliance Program for Traders with representatives of the private sector and customs officials from local customs departments in northern provinces in Vietnam.

If successfully implemented, the programme will guide and give businesses the tools to self-assess and improve their compliance with customs regulations, cutting the time and cost to trade.

Hoang Viet Cuong, the GDC’s deputy general director said: “The General Department of Customs has gradually developed and completed the compliance assessment mechanism for four groups of customs declarants and warehouse, yard and port enterprises. We will publish criteria for assessment and classification on compliance and content on the application of risk management in customs operations.”

With technical assistance from the USAID Trade Facilitation Program, in November 2019, the Ministry of Finance issued its first legal document on risk management in Customs operations (Circular No 81/2019/TT-BTC dated November 15, 2019), together with Decision 2218/QD-TCHQ on implementing and applying risk management in customs operations (Decision 2218), which provides guidance on the adoption of risk management in customs operations for both customs authorities and the private sector.

Bradley Bessire, Deputy Mission Director of USAID Vietnam said: “Over the past twenty years, USAID has supported Vietnam in its efforts to institutionalise more open and predictable trade. Building on the normalisation of trade relations in 1995, USAID assistance to date is focused on the implementation of reforms to support Vietnam’s increased market orientation.”

He added that with more than 95 million USD in USAID trade facilitation technical assistance over the last two decades, Vietnam has made substantive reforms to its legal framework governing many businesses in the trade sector.

These reforms were particularly effective in raising the economic governance capacity of government officials to respond to the needs of the private sector, and to improving the business enabling environment in Vietnam so entrepreneurs and the economy can thrive.

"Over the course of our cooperation on trade facilitation, we jointly recognised continuing constraints at both the central and provincial levels.

"To support Vietnam, the five-year 21.7 million USD USAID Trade Facilitation Programme was launched to address gaps in specialised inspection in order to help Vietnam accelerate implementation of the World Trade Organisation’s Trade Facilitation Agreements to simplify, modernise, and harmonise customs processes," he said./.

Vietnam – Russia potential engagement in automobile industry on media’s radar

A recent online meeting between Vietnamese Deputy Prime Minister Trinh Dinh Dung and his Russian counterpart Dmitry Chernyshenko has aroused the Russian media’s interest in the country’s potential automobile cooperation with Vietnam and the possibility of bringing Russian cars to the ASEAN market through the Southeast Asian nation.

An article published on Russia’s newspaper Independence on November 12 projected Russian cars assembled in Vietnam are likely to be available in Southeast Asian markets.

It noted that Russia is attentive to cooperation in the automobile industry with Vietnamese partners, as it enables the establishment of a centre for car production and export targeting customers in ASEAN member states.

The article revealed that in their meeting, the two officials, who also co-chair the nations’ inter-governmental committee on economy, trade, and science-technology, discussed the establishment of car assembling joint ventures in Vietnam.

Echoing the view, another article posted on the Russian “customs forum” news site also highlighted the country’s attention to setting up these joint ventures and the centre.

The matters were also covered on the Russian Government portal, TASS Russian News Agency, and several other new sites./.

Overseas Vietnamese entrepreneurs helpful in promoting exports to US: teleconference

Capitalising on the network of Vietnamese entrepreneurs in the US is among effective ways to promote the export of Vietnamese goods, including agricultural products, to this major market, heard a teleconference on November 12.

The event, matching businesses in the Mekong Delta with expatriate entrepreneurs in the US, was held by the Department of External Relations of Ho Chi Minh City, the Business Association of Overseas Vietnamese, and the Vietnamese Entrepreneurs Network in the US.

Vietnamese Ambassador to the US Ha Kim Ngoc said trade between the two countries is growing dynamically, creating numerous cooperation chances for their businesses. Bilateral trade has approximated 80 billion USD each year, and both sides have become important trade partners of each other.

Connecting businesses in the Mekong Delta with Vietnamese firms in the US will help tap into both sides’ advantages, he said, elaborating that the Mekong Delta is the largest rice production, aquaculture and fruit farming centre of Vietnam, and many of its localities are also taking the lead in producing consumer goods and hi-tech products, helping to turn this region into one of the biggest sources of exports in the country.

Meanwhile, the US is a large and potential market with increasing demand for Vietnamese goods. The Vietnamese community here numbers more than 2 million and owns over 300,000 business establishments across the US.

Many of Vietnamese enterprises in the US are specialised in distributing goods among the community, becoming a bridge for Vietnamese goods to enter this market and helping to form a cooperation network of overseas and domestic companies, according to Ngoc.

Nguyen Hoanh Nam, Vice Chairman of the State Commission on Overseas Vietnamese, said Vietnamese people in the US now account for nearly half of the total number of overseas Vietnamese, and they are assessed as a dynamic community with strong economic capacity.

In recent years, businesses of Vietnamese entrepreneurs in the US have paid more attention to the Mekong Delta, he said, adding that connecting the two sides will help make use of the expatriates to promote exports and raise the stature of Vietnamese goods in global markets.

Expatriate entrepreneurs in the US shared the view that there remains huge potential for the export of Vietnamese goods, including the Mekong Delta’s typical products like fruits, farm produce and aquatic products, to serve not only the Vietnamese community there but also local consumers.

However, they admitted, trade has yet to match potential and demand due to various reasons, including transportation and quality of goods.

Amy Nguyen, an importer and distributor of Vietnamese fruits in the US, said to sustainably boost exports to this market, Vietnamese producers need to control quality in all steps, from farming, purchasing, processing, packaging, and preservation to distribution.

Other businesspersons suggested a centre be built to control the quality of all Vietnamese products exported to the US so as to ensure that they meet the importing country’s standards and minimise cases that may affect bilateral trade.

Bui Huy Son, Minister Counsellor in charge of Vietnam’s trade office in the US, recommended that to access this market, businesses should update themselves on its demand, learn about quality and technical requirements, form production connectivity, and cut down costs to promote competitiveness.

They should also have good storage and governance of products’ information to prevent risks, he added./.

New decree to prevent transfer pricing, limit thin capitalisation

The Government’s recently-issued Decree 132/2020/ND-CP would help prevent transfer pricing and limit thin capitalisation to develop a healthy investment market, Deputy Director of the General Department of Taxation Dang Ngoc Minh said.

Minh spoke at a press conference on November 9 to introduce new points of the decree dated November 5 about tax management for enterprises with related-party transactions, saying the interest expense deduction limit was raised from 20 percent to 30 percent – the highest ratio recommended by the Organisation for Economic Cooperation and Development.

Increasing the cap to 30 percent would help enterprises have more capital for investment in the context that most firms in Vietnam were thinly-capitalised with the level of debt much greater than equity capital, he said.

Minh said that the Decree 132 did not differentiate foreign-invested companies and domestic companies in fighting transfer pricing to ensure fairness and transparency.

“This regulation does not mean to cause more difficulties for enterprises because any companies, foreign-invested or domestic, could use the transfer pricing method.”

The Ministry of Finance’s statistics showed that there were about 16,500 enterprises with related-party relations, 8,000 of which had related-party transactions and 70 percent were foreign-invested.

According to Nguyen Thu Huong from international non-governmental organisation Oxfam in Vietnam, it was necessary to terminate corporate income tax (CIT) incentives and reductions to minimise transfer pricing.

The preferential value was estimated at about seven percent of the total CIT revenue annually, a considerable sum, Huong said. However, she pointed that there was an unfairness because the preferential tax mostly applied to FDI companies.

Preferential CIT policies to encourage investment led to a race to the bottom among localities in the country and among countries in the region, which was not only causing losses to budget revenue but also creating loopholes for transfer pricing, Huong said.

Deputy Director of the finance ministry’s Department of State Budget Nguyen Minh Tan said that transfer pricing often occurred when there were tax incentives.

However, tax incentives were an important factor to attract foreign investment in the context of a global production shift triggered by the COVID-19 pandemic, Tan said.

Vietnam was regarded as an attractive destination for investment but not the only choice, Tan said, adding that it was necessary at the same time to offer tax incentives to attract investment and to fight transfer pricing.

Decree 132 implemented regulations which were appropriate to international practices and the condition of Vietnam to enhance the prevention against transfer pricing, Tan stressed.

The tax watchdog inspected 263 enterprises with related-party transactions in the first 10 months of this year, collecting more than 525 billion VND (22.6 million USD) in fines and arrears, reducing losses by more than 9 trillion VND and increasing taxable income by 4.19 trillion VND.

Last year, 597 enterprises with related party transactions were inspected to collect 1.1 trillion VND in fines, reducing losses by 5.8 trillion VND and increasing taxable income by 5.9 trillion VND./.

Conference explores trade, investment chances for Mekong Delta, Taiwanese firms

A business matching conference was held in Can Tho city recently to boost trade and investment links between the Mekong Delta and China’s Taiwan.

Local potential, strengths, investment opportunities, and priority projects calling for investment were introduced at the November 11 event, during which information about the Taiwanese market and its standards was also provided.

Taiwan has been a large trade and investment partner of Vietnam over the past years.

Between 1988 and September 2020, it poured over 33.2 billion USD into 2,771 projects in Vietnam, mostly in processing, manufacturing, and construction, ranking fourth among the countries and territories investing in the country, following the Republic of Korea, Japan, and Singapore.

Meanwhile, between 1952 and September this year, Vietnamese firms invested 68.51 million USD in 281 projects in the Chinese territory, mainly in wholesale, retail, machinery production, and accommodation and food services.

Bilateral trade increased 19.4 percent year on year to 19.56 billion USD in 2019, including over 15.1 billion USD of Vietnam’s imports from Taiwan. The figure was over 13.4 billion USD in the first eight months of 2020, up 6.2 percent from a year earlier.

Nguyen Thi Phuong Linh, Deputy Director of the Can Tho branch of the Vietnam Chamber of Commerce and Industry (VCCI), said there had been 1,699 foreign invested projects worth 23.03 billion USD in the Mekong Delta as of the end of 2019.

Taiwan accounted for about 13.6 percent of the total foreign investment in the region, ranking fourth. Its businesses’ projects operate mainly in apparel, processing, manufacturing, and footwear industries.

Director of the Can Tho Department of Industry and Trade Nguyen Minh Toai said via the conference, his city wishes to boost cooperation to promote the export of key agricultural products of the city and the Mekong Delta like rice, aquatic products, processed farm produce, and canned fruit. It also hopes to maintain connectivity between foreign businesses and investors and local firms and specialised agencies.

Project launched to ensure legal assurance in rubber wood industry

The Vietnam Rubber Association (VRA) on November 11 kicked off a project promoting the sector’s compliance with the Vietnam Timber Legal Assurance System (VNTLAS).

Supported by the UN Food and Agriculture Organisation (FAO) and the Vietnam Administration of Forestry, the project aims to help farmers and businesses improve their capacity and meet VNTLAS’s requirements for small-scale supply chains.

In order to fulfil commitments in the Vietnam-EU Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT), which was signed in 2018 and took effect on June 1, 2019, the Prime Minister issued Decree No 102/2020/ND-CP on VNTLAS.

VNTLAS is a national system to ensure compliance with timber legislation at each stage of the supply chain, including harvesting, importing, purchasing, selling, transporting, processing, and exporting.

Speaking at the launch, VRA Chairman Tran Ngoc Thuan said rubber timber contributes significantly to Vietnam’s wood supply and is considered a sustainable material, making it stand out as the market demands that woodwork products for domestic consumption and export be traceable and legally assured.

In 2019, Vietnam was home to 943,000 ha of rubber forests, with rubber timber and woodwork products exported to more than 100 countries and territories.

Tran Hong Van, project coordinator, said it is running from July 2020 to July 2021, piloted in the southern provinces of Binh Duong and Tay Ninh, and aims to boost the trade of legal wood products and sustainable forest management.

She added that the project will provide an overview of the country’s rubber wood industry, identify challenges in following the VNTLAS, and compile guiding materials for farmers and businesses involved, among other things./.

ASEAN-China trade surges despite pandemic

Although the COVID-19 pandemic has weighed heavily on the global economy, members of the Association of Southeast Asian Nations (ASEAN) and China have seen economic exchanges heat up, including surging trade and investment inflows, thanks to deepened bilateral economic ties.

ASEAN has become the largest trade partner of China, and drawn rocketing Chinese capital inflows, China’s Global Times said in its article posted on November 11.

According to the Mission of the People’s Republic of China to ASEAN, China's direct investment in ASEAN in the first three quarters reached 10.72 billion USD, increasing 76.6 percent year-on-year. Investment from ASEAN into China increased by 6.6 percent year-on-year, led by Singapore, Thailand and Malaysia.

The article highlighted China and ASEAN have long seen strengthening economic ties, and higher investment from China into ASEAN is in line with accelerating bilateral trade. Growing trade has brought demand for localised production or business operations, which in turn has boosted capital flows.

The two sides have great economic complementarities, and they have taken part in the ASEAN-China Free Trade Area for 10 years. As one of the most energetic free trade zones in the world, it has further promising prospects. The Xinhua News Agency reported that bilateral trade grew to 641.5 billion USD in 2019 from 292.8 billion USD in 2010.

With the pandemic shattering industry chains, it is expected to be more integration of Chinese industries and developing ASEAN markets. Although Chinese investment in ASEAN may not keep expanding as fast as 76 percent annually, sustained growth is foreseen, as China has shown a commitment to promote regional economic integration, and the two sides have made efforts to further enhance ties, including promotion of the Regional Comprehensive Economic Partnership (RCEP).

Under market principles, China and ASEAN are seeking more efficient development. For instance, agricultural industries and cooperation on industrial capacity are areas in which the two sides could cooperate.

As the markets of China and ASEAN reach a higher degree of integration, this will further promote the regional economic integration between East Asia and Southeast Asia, the article said./.

Business urged to take a pioneering role in digital transformation

As digital transformation was vital for the development of Vietnam’s economy, local businesses had no other choice than joining to benefit from the trend, a top economics journalist has said.

Speaking at a forum in Hanoi on November 11, Chu Van Lam, editor-in-chief of Editor in Chief of the Thoi bao Kinh te Viet Nam (Vietnam Economic Times), said: “Enterprises are the core of the economy, can not outside the digital, especially in the context of the pandemic which is changing the world with a transition towards the digital economy.”

The forum, held by Vietnam Economic Times and local investment promotion alliance Invest Global, aimed to identify and evaluate the reality of digital transformation activities of enterprises in different industries and proposed solutions to help businesses speed up digital transformation.

According to the organisers, the Government has approved the National Digital Transformation Programme to 2025, with a vision to 2030 with the goal of making Vietnam a digital country, adding that such transformation process could help businesses reduce costs, control risks, improve labour and business efficiency and reach customers more easily.

Deputy Minister of Foreign Affairs Nguyen Minh Vu quoted the World Economic Forum (WEF) prediction that by 2022, the digital economy would account for 60 percent of the world's GDP.

Vu said though the prediction was only 7 percent of GDP in ASEAN, the digital economy could be expected to contribute an additional 1 trillion USD to the world economy in the next decade.

Experts at the forum said Vietnam had huge advantages for digital transformation with a population of nearly 100 million, of whom more than 70 percent use the internet, a dynamic technology level and great support from the Government.

Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) and chairman of ASEAN BAC said: “ASEAN is a special partner and an important market for Vietnam with a large area with a population of 650 million people. Therefore, Vietnamese enterprises will not only focus on the value-added chain in the domestic market but also in the region.”

“The organic links between industrial production and digital transformation are extremely important. Vietnam needs to take advantage of digital transformation, companies and industrial corporations in the country must pioneer and embrace advanced technology to create a supply chain of the region," he added.

Also at the forum, Dang Hoang Hai, director of the Department of E-Commerce and Digital Economy, Ministry of Industry and Trade, said: “In 2015-2019, e-commerce scale increased rapidly with an average growth rate of 30 percent. Online shopping is developing very well this year especially amid the pandemic, which has created a huge number of people participating in the e-commerce market.”

Hai added that with the development trend of e-commerce, businesses in this field were very optimistic about growth in 2020 and beyond. The positive growth of e-commerce in the current period has made many domestic enterprises well aware of the digital transformation trend and consider it an inevitable choice.

Mentioning the challenges of the transformation, Deputy Minister Vu said as enterprises were the core to change, the habit of going digital greatly depended on the quality of human resources and the determination of the leaders of enterprises.

Truong Anh Dung, director of the General Department of Vocational Education, Ministry of Labour, Invalids and Social Affairs, said: “Vietnam has a rapidly developing infrastructure, young, creative, and rapidly adapting human resources but another challenge is the low know-how of information technology among the common people while the technology training system is still limited.”

“It is clear that the education and training system can not help all people, so the role of technology enterprises with their strengths is to support building infrastructure, and human resources to meet the demand," he said.

The vocational training expert said another difficulty was the limited investment resources for the digital transformation of businesses.

“After the National Digital Transformation programme, there must be a strategy project for training enough resources to reach the target," he added.

By 2025, Vietnam set a digital economy target to account for 20 percent of GDP, the proportion of the digital economy in each industry and field will reach at least 10 percent and the labour productivity will increase by more than 7 percent per year on average. By that time Vietnam should be in the group of 35 countries leading in innovation and creativity./.

Global manufacturers flocking to Vietnam, reports Nikkei Asia

As part of the world’s largest financial publication, Nikkei Asia has published an article outlining how Vietnam is preparing for a shift of investment from the world’s giant manufacturing "eagles". 

The article states that three years ago Jack O'Sullivan came to Vietnam to build premium electric bicycles, but factory after factory said it could not make the parts he needed, prompting him to settle on an unorthodox way of bringing them up to speed.

The Irishman then started dispatching employees from Modmo, the bike exporter he founded in 2017, to work alongside local suppliers. Today, Modmo sources approximately 50% of its components from Vietnam, a number O'Sullivan anticipates will rise due to the need to source more parts locally.

The article outlines that the country is currently enjoying an influx of foreign manufacturers, a trend that first began after 2007 when low-end garment and shoe factories began to leave China due to rising costs.

At present Vietnam is hoping to become a major hub for high-tech manufacturing, as the United States’ pressure on China is forcing a re-alignment of global supply chains that support the computer, smartphone, and telecom industries. Already, Samsung alone makes up a quarter of Vietnamese exports, with Intel selecting the country to house its biggest chip assembly plant worldwide.

The article points out that for all global manufacturers, over-reliance on China has become increasingly precarious in the wake of the US trade war, pandemic-related supply chain disruptions, and higher costs. Their relocation to neighbouring Vietnam has helped to boost the domestic manufacturing sector, which at its peak saw annual growth of 21% in February, before the novel coronavirus (COVID-19) lockdown began.

Taking in investments this year from the likes of the Republic of Korean electronics giant LG and German adhesive tape maker Tesa, Vietnam is on track to become the world’s fastest-growing economy for the year.

Despite these positives, these factors have intensified strain placed on the Vietnamese workforce, its suppliers, and the land available for industry. The country therefore hopes to ride a wave of investment in order to achieve higher growth, although this does pose various risks.

Nikkei Asia quotes Nguyen Thanh Binh, business information director of the Vietnam Chamber of Commerce & Industry, as saying that manufacturing "eagles" are flocking to Vietnam, which must prepare accordingly while building up its nest to welcome the eagles.

The impact of all new sources of demand can be seen domestically, from stuffed shipping containers to roaring factories. Property company Savills state that occupancy rates have risen sharply in most industrial zones over the past two years, now averaging 74% nationally. Indeed, occupancy is even higher close to cities, including 99% in Binh Duong and 94% in Dong Nai, both provinces on the edge of Ho Chi Minh City.

The article emphasises that much of the new investment is flowing into the technology sector, such as the production of earphones for Apple and liquid-crystal displays for Sharp. This keeps within the Vietnamese goal of progressing up the value chain as a means of transitioning towards higher-skilled work. However, there remains a shortage of knowledge on how to create more advanced products, such as Modmo's bikes, which comes with electric motors, touch screens, and Bluetooth at a price of US$2,400.

Navigos Group, the owner of Vietnam’s biggest jobs site, said 71% of technology companies have reported that a lack of IT talent is their biggest challenge. This issue far exceeds salary costs, legal issues, and other challenges cited in the survey released in April. Similarly, employers report difficulty when attempting to fill middle-manager roles across a variety of industries.

In contrast, Michael Kokalari, chief economist of VinaCapital, rejects the notion that Vietnamese factories and warehouses could be nearing capacity. "Maybe it's full if you're so cost-conscious," he said in an interview, "But if you're making electronics and other higher-value products, we're not full yet."

VinaCapital calculated in a 2019 report that the country has enough industrial land for foreign companies to double the size of their investments at the time. Manufacturing's 20% share of the local economy remains far below the 30% level seen in other Asian "tiger economies", therefore leaving plenty of room for growth, the report states.

To keep up with development, Vietnam has future industrial parks being planned, including at least 17 which will open up in the next few years, by Savills' count. In addition, the training of employees and suppliers must keep up as well, businesses say. Moving forward, O'Sullivan said he hopes to source more bicycle components from the country as domestic expertise rises.

Viet Nam needs a legal framework for new-generation cigarettes, say experts

Viet Nam should not legalise the use of electronic cigarettes (e-cigarettes) and heated-tobacco-products (HTPs) immediately but conduct a pilot phase allowing the production, import and trading of this new-generation cigarettes in the country, officials have said.  Representatives from various agencies of the Government were speaking at a workshop on the legal framework for new-generation cigarettes in Viet Nam, held by Phap Luat Viet Nam (Vietnam Law) Newspaper in Ha Noi on Wednesday.

The representatives said e-cigarettes and HTPs were the result of the global application of technology and still very new to Viet Nam's tobacco industry and regulators.

In Viet Nam, these products have appeared in many different channels, from traditional stores to e-commerce websites and social networks. The products have been smuggled and illegally traded in the country and the frequency and number of seizures of e-cigarettes and HTPs sales has gradually increased.

The impact of HTPs and e-cigarettes on young people is a controversial issue as the health effects of those products remain uncertain. It is unknown whether it is less harmful than smoking tobacco, and how to manage such new-generation cigarettes when they are not regulated.

The pilot is expected to provide the Government and authorities with sufficient information, helping them accurately assess the socio-economic impact of the legalisation of these products in Viet Nam.

The legal framework built upon these assessments should then complement the national strategy on tobacco harm reduction, ensuring the reconciliation of interests of stakeholders, including the State, consumers and tobacco producers and gardeners, and consistency with international practices.

Nguyen Quynh Lien, deputy head of the Ministry of Justice’s Criminal and Administrative Legislation Department, said the current Law on Tobacco Harm Prevention and Control and Decree No.77/2013/ND-CP had provided measures to prevent and combat tobacco harms, including regulations on smoking detoxification and the ban on smoking cigarettes in public places.

However, these regulations are currently mainly applied to traditional cigarettes. “For new-generation cigarettes, due to the differences in product characteristics compared to traditional cigarettes, it is necessary to study carefully to come up with a suitable management mechanism,” Lien added.

Sharing the same view with Lien, Nguyen Ky Minh, the Deputy Chief of Office of the Ministry of Industry and Trade’s General Department of Market Management, said the current law did not have sanctions on handling new-generation cigarettes so the market watch force could only handle these products as goods manufactured by foreign countries being traded in Viet Nam without invoices and documents proving their origin.

“We need to have a legal framework for this item, giving specific and valid penalties for related violations,” Minh said.

A report of the market watch forces showed in the first eight months of this year, the forces nationwide tackled more than 8,300 cases, confiscating more than 8 million packages of smuggled cigarettes of all kinds, of which the volume of new-generation cigarettes was seen increasing rapidly.

Le Thanh Hung, an official from the Ministry of Science and Technology’s Directorate for Standards, Metrology and Quality, said his ministry agreed with the Ministry of Industry and Trade’s report on the results of research on new-generation cigarettes.

“After studying, we agreed that it’s needed to soon review and build legal documents and policies on the management of e-cigarettes and HTPs in Viet Nam, which must be suitable with the country’s development,” Hung said.

Hung said many countries across the world had issued standards for new-generation tobacco products. “On the international level, organisations such as the International Organisation for Standardisation, Cooperation Centre for Scientific Research Relative to Tobacco and European Committee for Standardisation have also issued standards for new-generation cigarettes, including technical requirements and testing method standards," he said.

Meanwhile, members of the Vietnam Tobacco Association worried about the illegal import of new-generation cigarettes to Viet Nam, threatening domestic production of traditional cigarettes. The members agreed that both HTPs and e-cigarettes needed to go through a pilot phase before building the legal framework applicable because it has directly impacted the business activities of traditional tobacco producers.

Phung Duc Thinh, the authorised representative of the Vietnam Tobacco Association, said the domestic tobacco industry needed at least 12 months to prepare for competitiveness and to create stability before the Government allows the new-generation products to be imported, traded and distributed in Viet Nam.

In the case of Japan, one of the first markets for new-generation cigarettes, the output of traditional cigarettes had suffered a dramatic decline when the new-generation products were launched.

“We strongly hope the Government will create conditions to allow domestic tobacco enterprises to invest in suitable machinery and equipment for the production of e-cigarettes and HTPs,” Thinh said.

In 2019, the association paid to the State budget VND18.4 trillion, including import tax, according to Tran Tuyet Trang, an official from the General Department of Taxation’s Tax Policy Department. 

PM urges New Zealand to open door wider for ASEAN goods

Prime Minister Nguyen Xuan Phuc on November 14 called on New Zealand to open its door wider for goods and agricultural products of ASEAN countries as the sides have substantial potential for cooperation.

Addressing the online ASEAN-New Zealand Commemorative Summit, the PM suggested New Zealand share its experience in building brands and developing value chains of a number of fruits in order to help the ASEAN countries access demanding markets.

ASEAN is now New Zealand’s fourth largest trade partner, with two-way trade reaching 12.5 billion USD in 2019, he said.

In the context of the COVID-19 pandemic, he proposed New Zealand strengthen cooperation with ASEAN in vaccine research and development, and support the ASEAN Regional Reserve of Medical Supplies and the COVID-19 Response Fund.

Vietnam hopes that, New Zealand, as Chair of the Asia-Pacific Economic Cooperation (APEC) forum in 2021, will join hands with regional countries to create strong momentum to overcome the crisis and recover the growth, PM Phuc said.

He also called on New Zealand to create favourable conditions for students of the two sides to seek new learning methods amidst the COVID-19 pandemic.

ASEAN strongly commits to building the East Sea into a maritime area of peace, stability and development, the PM said, adding that the bloc’s stance and principles on the East Sea were made clear at the 36th ASEAN Summit, the 53rd ASEAN Foreign Ministers’ Meeting and the 37th ASEAN Summit.

ASEAN countries have emphasised the significance of enhancing dialogue and trust, and peaceful addressing disputes in line with international law and the 1982 UN Convention on the Law of the Sea.

Relevant sides should exercise self-restraint and not militarise or take actions that would increase tensions and complicate the situation, the PM said.

The countries have also highlighted efforts to fully and effectively implement the Declaration on the Conduct of Parties in the East Sea (DOC) and build a Code of Conduct in the East Sea (COC) effectively, efficiently and in accordance with international law and the 1982 UNCLOS.

Vietnam will closely coordinate with other ASEAN countries and New Zealand to advance the ASEAN-New Zealand cooperation, thus bringing benefits to both sides, for peace, stability and prosperity in the region.

Prime Minister Jacinda Ardern said ASEAN and New Zealand share a strong legacy of working together to advance peace and prosperity in the region.

ASEAN is New Zealand’s fourth largest trading partner, a crucial defence and security partner, and a critical strategic hub that connects New Zealand to Asia and the rest of the world, Ardern affirmed.

The partnership will play an important role as the countries work together to support global efforts to manage the pandemic and ensure fair and equitable access to safe vaccines, and drive economic recovery through maintaining open markets for their exporters and resilient supply chains, Jacinda Ardern said.

The PM reaffirmed New Zealand’s commitment to strengthening its partnership with ASEAN under the themes of “Peace, Prosperity, People and Planet”, which will promote cooperation in areas such as sustainability and climate change, trade facilitation and digital commerce.

At the end of the summit, the leaders adopted Joint ASEAN-New Zealand Leaders’ Vision Statement on the 45th Anniversary of ASEAN-New Zealand Dialogue Relations: A Legacy of Partnership, A Future Together.

Under the statement, the leaders shared commitment to maintaining and promoting peace, security and stability in the region, as well as to the peaceful resolution of disputes, including full respect for legal and diplomatic processes.

They reaffirmed their dedication to an open, transparent, inclusive, and rules-based regional architecture, which respects the sovereignty of all states regardless of their size; which is based on key principles such as adherence to international law and open markets; and which is built on ASEAN-led mechanisms.

The leaders reiterated their determination to promote shared values and norms including those enshrined in the ASEAN Charter, the Charter of the United Nations, and the Treaty of Amity and Cooperation in Southeast Asia.

The sides agreed to continue to work together on trust-building and preventive diplomacy, including through the ASEAN Regional Forum process, and to address regional security challenges, including through cooperation to promote cybersecurity, combat transnational organised crime and cybercrime, strengthen border security, counter terrorism, and promote social inclusiveness to prevent violent extremism.

They welcomed the decision to officially launch negotiations to upgrade the ASEAN-Australia-New Zealand Free Trade Agreement in early 2021, to ensure it remains a visionary and precedent-setting agreement, which delivers tangible benefits to their businesses, consumers, and peoples, and which demonstrates the genuine economic partnership between ASEAN and New Zealand.

They promised to redouble efforts to deepen practical economic cooperation, improve business linkages, and support human capital development in preparation for the Fourth Industrial Revolution, noting the importance of science, technology and innovation for 21st century economies.

Australia supports ASEAN’s COVID-19 response efforts

Australian Prime Minister Scott Morrison on November 14 outlined new initiatives to support ASEAN’s economic recovery efforts post COVID-19.

They include 70 million AUD for resilience and recovery in Southeast Asia and a 232 million AUD package for the Mekong region, focusing on the environment, infrastructure, cyber, and critical technologies and scholarships.

Addressing the second ASEAN-Australia Biennial Summit, held online on the day, PM Morrison commended Vietnam and ASEAN for their strong response to COVID-19 in the spirit of a cohesive and responsive ASEAN.

The leader said Australia is ASEAN’s partner in the great recovery that is occurring, noting ASEAN’s centrality is the core of Australia’s vision for Indo-Pacific.

Australia remains committed to working with the region and helping the region recover from COVID-19.

According to the PM, Australia recently committed some 500 million AUD over three years to support access to safe and effective COVID-19 vaccines for Southeast Asia and the Pacific.

“Safe effective access to affordable COVID-19 vaccines will be the central factor in our collective recovery, Morrison said,” he stressed.

In a media statement released on November 13, the PM said ASEAN remains at the heart of Australia’s vision for a peaceful, stable, inclusive, sovereign, prosperous and resilient Indo-Pacific. ASEAN has a central role to play in the region’s recovery and the post COVID-19 regional order.

Australia is proud to be a Strategic Partner of ASEAN and its oldest Dialogue Partner, he said.

The Australian leader congratulated Vietnam for its stewardship as ASEAN Chair during a very challenging year.

At the summit, Vietnamese Prime Minister Nguyen Xuan Phuc said Australia was one of the most long-standing partners of ASEAN with relationship established in 1974. Over the past four decades, the bilateral relationship has been increasingly strengthened in different spheres.

ASEAN welcomes Australia’s consistent policy on accompanying the region for a long-term and supporting the bloc’s centrality, he noted.

The two sides agreed to hold the summit annually instead of biennially as a foundation to further deepen and substantially promote the important relationship.

Leaders recognise Vietnam’s remarkable leadership as ASEAN Chair: Cambodian ministry

ASEAN leaders commended the remarkable leadership of Vietnam as ASEAN Chair in steering the bloc’s priorities in 2020 during the COVID-19 pandemic, according to a press release issued by the Cambodian Ministry of Foreign Affairs and International Cooperation on late November 13.

The press release, which highlighted the outcomes of the 37th ASEAN Summit and related events held via videoconference by Vietnam from November 12 to 15, noted that Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, on behalf of PM Hun Sen, headed the Cambodian delegation at the meetings.

It said that ASEAN leaders expressed commitment to double ASEAN Community building efforts and the work towards achieving the ASEAN Community Vision 2025 and beyond.

Amid unprecedented challenges posed by the COVID-19 pandemic, they emphasised their strong collective stance to maintain the ASEAN solidarity and unity to ensure peace, security and sustainable development in the region.

They agreed on the need to facilitate essential business travels and people movement among and between ASEAN member states through the adoption of the declaration on an ASEAN travel corridor arrangement framework.

The leaders also announced the establishment of the ASEAN Regional Reserve of Medical Supplies for Public Health Emergencies and encouraged contributions to this reserve from the member states, external partners and interested donors.

Also at the 37th ASEAN Summit, they reiterated the importance of continued upholding inclusive and rules-based multilateral trading system. In this regard, the leaders announced the completion of the substantial negotiations on the Regional Comprehensive Economic Partnership (RCEP) and looked forward to the signing of the RCEP on November 15, according to the press release.

At the 23rd ASEAN-China Summit, the leaders discussed achievements of cooperation over the past 29 years between the two sides and charted future direction of strategic partnership.

ASEAN appreciated China’s contributions to the COVID-19 ASEAN Response Fund as well as supporting other ASEAN-led initiatives to address this crisis.

During this meeting, Cambodia voiced satisfaction with the progress of the ASEAN-China Free Trade Area (ACFTA) implementation. It urged ongoing discussions on the ACFTA Upgrading Protocol in order to boost more trade and investment between the bloc and the Northeast Asian nation, the press release noted./.

New Zealand reaffirms commitment to enhancing partnership with ASEAN

New Zealand Prime Minister Jacinda Ardern on November 14 reaffirmed the important role of and commitment to strengthening her country’s partnership with ASEAN.

In a release on November 14, the New Zealand Government noted that at the ASEAN-New Zealand Commemorative Summit, which was held digitally to mark the 45th anniversary of the two parties’ diplomatic partnership, PM Ardern said: “New Zealand and ASEAN share a strong legacy of working together to advance peace and prosperity in our region.”

She pointed out that ASEAN is New Zealand’s fourth largest trading partner, a crucial defence and security partner, and a critical strategic hub that connects her country to Asia and the rest of the world.

“Our partnership will play an important role as our countries work together to support global efforts to manage the pandemic and ensure fair and equitable access to safe vaccines, and drive economic recovery through maintaining open markets for our exporters and resilient supply chains,” she said.

The PM, through a joint statement with other participating leaders, reaffirmed New Zealand’s commitment to strengthening its partnership with ASEAN under the themes of “Peace, Prosperity, People and Planet”, which will promote cooperation in areas such as sustainability and climate change, trade facilitation and digital commerce.

Speaking ahead of the East Asia Summit (EAS), to be held also via videoconference later on November 14, PM Ardern said the meeting will be a good chance to exchange views with other leaders on the pandemic and issues such as the East Sea and climate change./.

ASEAN Plus Three vow to beef up cooperation amidst COVID-19

Leaders from ASEAN member countries, and the Republic of Korea (RoK), Japan and China shared the view on the need to enhance their cooperation in the COVID-19 fight and economic recovery, during the 23rd ASEAN Plus Three (APT) Summit held online on November 14.

Addressing the summit, Vietnamese Prime Minister Nguyen Xuan Phuc said the experience in coping with crises has become the strength of APT cooperation over the past more than two decades.

Given the unprecedented challenges caused by COVID-19, the countries have carried forward the strength to promptly handle the impact of the pandemic, he went on.

The PM recalled the Special ASEAN+3 Summit on COVID-19 in April, during which the leaders affirmed their resolve at the highest level to reinforce coordination in combating the disease, ensuring lives and health of people, and reviving the economy.

In his remarks, RoK President Moon Jae-in said APT cooperation has become a model of international cooperation as they work in solidarity to battle against COVID-19.

The ASEAN COVID-19 Response Fund and the Regional Reserve of Medical Supplies are meaningful outcomes that the countries have attained together, according to Moon.

The ideas the countries discussed at the Special ASEAN+3 Summit on COVID-19 in April are developing into tangible achievements.

The RoK leader expressed his hope that essential business travel will expand further to the extent that it does not undermine disease control efforts as COVID-19 persists longer than anticipated.

He suggested the countries upgrade cooperation in the area of public health and work towards the development and equitable supply of vaccines and treatments, saying it is a must to establish a timely and transparent coordination mechanism to prepare against new infectious diseases which can strike at any time.

On the economic front, he said the countries need to prepare for the post COVID-19 era. The global economy is projected to recover to the pre-pandemic level by next year. But the speed of this recovery will be very uneven among countries.

He pointed to the wave of trade protectionism and uncertainties in the financial markets. There are concerns that an accelerated transition to a digital economy could widen the gap between social classes and no country can solve these challenges on its own.

The countries must work to strengthen the resilience of the economies and identify measures for inclusive, sustainable growth. To that end, they must pull that wisdom and cooperate with one another.

He hoped that ASEAN Plus Three could become the hope for the global economy and the post COVID-19 era.

Japanese PM Suga Yoshihide said the APT Summit has contributed to cooperation among countries in overcoming challenges.

The Special ASEAN+3 Summit on COVID-19, held in April, is an evidence of the efforts by countries in the region to work together to overcome crises and defeat challenges.

He pledged to provide more support so that the ASEAN Centre for Public Health Emergencies and Emerging Diseases, whose establishment was announced two days ago, will develop into a body that protects the lives of the people of ASEAN from such health threats.

Japan will provide over 200 million USD worth of assistance to secure medical supplies and equipment as well as technical assistance to research institutes, the PM said.

On economic revitalisation, Japan has provided a total of 2.5 billion USD in budget support loans to the countries upon their request, he stressed.

Investment in the private sector is also expanding, he said, adding that the ASEAN-Japan Economic Resilience Action Plan was adopted, under which, support is rendered to build resilient supply chains and promote the digitalisation of the industry.

Based on collaboration between Japan, China and the RoK, a contribution of 300,000 USD has been made from the ASEAN Plus Three Cooperation Fund to the ASEAN COVID-19 Response Fund.

In addition, Japan has made a decision to make its own contribution of 1 million USD, he said.

Chinese Premier Li Keqiang said the economic integration in East Asia is confronted with multiple challenges, recalling the Special ASEAN+3 Summit on COVID-19 held last April, during which the leaders agreed to strengthen cooperation in response to the coronavirus, open markets to each other, and keep industrial and supply chains stable.

Over the past six months, all the parties have been acting actively implement the outcomes of that summit. Some international institutions have been projected or recognised in responding to COVID-19, he continued.

The measures taken by East Asian countries and the experience they have accumulated are inspirations to other countries.

He thanked ASEAN countries for their understanding and support to China in the pandemic fight, particularly in the most difficult stage in the combat.

The Chinese leader expressed his belief that the countries could work together to mitigate the pandemic and reopen the economy, thus opening up a bright prospect of peace, development and prosperity for the region./.

ASEAN Smart Logistics Network launched

Prime Minister Nguyen Xuan Phuc and his Singaporean counterpart Lee Hsien Loong, via videoconference, witnessed on November 14 the launch of the ASEAN Smart Logistics Network (ASLN) with the Vinh Phuc ICD Logistics Centre (SuperPort) its first project.

Addressing the launch, PM Phuc said at the 37th ASEAN Summit, the two PMs and other regional leaders shared the view on the necessity to concurrently control the COVID-19 pandemic, protect people’s health, recover production, and regain growth momentum, including enhancing the sustainability of supply chains and guaranteeing the flow of goods and services.

He welcomed the launch of the ASLN, considering the SuperPort project as a contributor to the ASEAN cooperation and Vietnam-Singapore friendship.

For his part, PM Lee said the two countries boast very strong business links, noting that Singapore was the largest ASEAN investor of Vietnam in 2019, and bilateral trade grew 10 percent last year.

Vietnam-Singapore industrial parks have attracted 14 billion USD of investment to the former country. Despite COVID-19, their enterprises have still managed to have common voice to carry out projects, according to him.

Lee said SuperPort is the biggest logistics project invested by a Singaporean firm in Vietnam, and it will provide infrastructure assistance for Vietnam and the local export industry.

This project will be among those taking the lead in the ASLN, which will help promote logistics chains in the region and assist ASEAN’s economic integration efforts and initiatives that are being carried out such as the Master Plan on ASEAN Connectivity 2025, the ASEAN Smart Cities Network, and the Initiative for ASEAN Integration.

He expressed his belief that though the COVID-19 is still ravaging, the bloc will once again thrive more strongly and enjoy a bright future ahead, voicing his hope for continued development of Vietnam-Singapore cooperation.

SuperPort, located in the northern province of Vinh Phuc, will be invested with 166.68 million USD by the T&T Group of Vietnam and two Singaporean partners (YCH Group Pte Ltd and YCH Holdings).

The centre will serve as a transit point for domestic goods, exports, imports, and others transported on the Hanoi-Lao Cai economic corridor and from China via the Lao Cai border gate. It will also act as an inland container depot and provides customs clearance services for exports and imports.

The ASLN launch was held within the framework of the 37th ASEAN Summit and related events./. 

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