Chinese investment in Vietnam has considerably risen over the past five years, surpassing South Korea and Japan.

According to the Ministry of Planning and Investment, Vietnam attracted total foreign direct investment (FDI) of USD23.4 billion, down 5.7% on-year in the first ten months of this year.  

Of that sum, Chinese investors accounted for USD4.86 billion, including those from Hong Kong and Taiwan, exceeding Japanese and South Korean investors with USD1.7 billion and USD3.4 billion respectively.

By the end of October this year, Vietnam had attracted a total USD76 billion FDI from China, including investment from Taiwan and Hong Kong, compared to USD70.4 billion from South Korea, USD60 billion from Japan and USD55.7 billion from Singapore.

Chinese investment into Vietnam has almost doubled over the past five years; but investment by Chinese projects in Vietnam is quite modest at around USD4.5 million between January and October this year.

Economist Nguyen Duc Thanh, former head of the Vietnam Institute for Economic and Policy Research (VEPR), said that Chinese investors want to take advantage of Vietnam as an outsourcing market for export. Vietnamese cheap labour is also an attractive factor for them.

China’s higher investment into ASEAN, including Vietnam had shown the development of the Chinese economy.

Economist Pham Chi Lan said that Vietnam should carefully select Chinese projects for environmental protection, adding that textile, dyeing and garment projects need to be turned down.

Vietnam gov’t stays firm on GDP growth target of 2.5 – 3% in 2020

Hanoi and Ho Chi Minh City are urged to remain alert in the Covid-19 fight, including tight control over people entering Vietnam.

The Vietnamese government has urged local authorities to continue pursuing the dual target of containing the pandemic and boosting economic growth in the final months of the year, aiming to realize the GDP growth target of 2.5 – 3% for 2020.

Meanwhile, the country’s two biggest cities Hanoi and Ho Chi Minh City are requested to stay alert in the Covid-19 fight, including tighting control over people entering Vietnam and the enforcement of face mask wearing rule in public places, stated a resolution recently released by the government following its monthly meeting on October 30.

The Ministry of Planning and Investment is tasked with cooperating with related ministries and agencies in accelerating the disbursement of public funds, including official development assistance (ODA) and preferential loans.

Additionally, more efforts are needed to promote private investment and new business models.

The State Bank of Vietnam (SBV), the country’s central bank, would continue to manage monetary policy in a flexible manner to stabilize macro-economic environment and support economic growth.

The resolution urged the SBV to ensure sufficient credit support for the economy while guaranteeing credit quality and pushing for non-cash payment.

Focusing on trade

The Ministry of Industry and Trade (MoIT) is in charge of working with related agencies and localities in resuming supply chains, as well as the development of the logistics sector and supporting industries.

The MoIT should support local enterprises in taking advantage of free trade agreements, especially the CPTPP and EVFTA, to penetrate new export markets.

For the rest of the year, the MoIT is responsible for promoting domestic consumption and ensuring efficient functioning of distribution channels related to the “Vietnamese prefer Vietnamese goods” campaign, along with a focus on e-commerce development.

The Ministry of Transport is requested to speed up the pace of upgrading projects at Noi Bai and Tan Son Nhat airports, and soon start the construction of Long Thanh International Airport.

The Ministry of Labor, War Invalids and Social Affairs should continue to carry out efficiently the instruction of Prime Minister Nguyen Xuan Phuc on providing support for the people and enterprises affected by the Covid-19 pandemic.

The Ministry of Information and Communications is set to step up efforts in developing e-government and upgrading digital infrastructure to prepare for the nationwide implementation of 5G network.

This year, the International Monetary Fund (IMF) predicted Vietnam to remain the only economy in the Southeast Asian region to register positive growth of 1.6%, taking the country’s economic size to US$340.6 billion and leapfrogging Singapore to be the fourth largest economy in the region.

The World Bank and Standard Chartered have released forecast for Vietnam’s economic growth similar to that of the government, which is in range of 2.5 – 3% in this year.

Vietnamese Bkav exports first batch of AI View cameras to US

The leading Vietnamese technology corporation, Bkav, officially exported the first batch of AI View security cameras to the US, the most fastidious market in the world, on November 17.

Bkav cameras will be installed at the headquarters of Qualcomm Incorporated in San Diego, California.

The next batch of Bkav security cameras is expected to be installed at a large park in the US by the end of this year.

Bkav AI View cameras have passed all relevant tests and were provided with FCC labelling that is employed on electronic products manufactured or sold in the US which certifies that the electromagnetic interference from the device is under the limits approved by the Federal Communications Commission. The FCC label is also a guarantee for electronic products to enter other markets.

Bkav cameras also meet ONVIF standards, certifying that the product can communicate with other popular video management software systems such as Milestone and Genetec.

“At the headquarters of Qualcomm, AI View will be present at a key project in the smart city deployment strategy of this group. Bkav got its first order after more than three months since entering the US market. This is a remarkable stride forward affirming our capabilities and our product’s superiority. From here, we have the foundation to further develop in this market, towards the position of a Top 5 leading camera manufacturers in the world,” said Tommy Le, Bkav Vice President of Business Development in the US.

Bkav is also promoting a series of AI camera projects in India, Mexico, Malaysia, Vietnam and other countries.

HCM City reports low social house supply

Despite the rising demands for affordable and social housing, supply in HCM City remains limited.

According to the HCM City Real Estate Association (HOREA), in the nine months of 2020, three social house projects with 2,213 apartments were completed. From 2016 until now, HCM City has had over 13,186 apartments. There are five on-going projects with 4,758 apartments that are expected to be completed in 2020. It is estimated that 17,944 apartments will be completed in 2020 or 89.72% of the target.

However, from March to July, the real estate market has been badly affected by Covid-19, especially the affordable housing sector.

In the first nine months, the Department of Construction confirmed that 20 projects met the conditions to call for capital. However, only 2.5% of them are affordable housing, a decrease of 98.5% compared to the same period in 2019 even though applications for social houses and demand for affordable houses are rising.

According to many experts, the land plots near the city's centre are expensive so it's more reasonable to build far away but the investor will have to develop the infrastructure too. The land fund for social housing projects in HCM City is also running out and it's impossible to find an investor that is willing to spend a huge amount of money on infrastructure development.

Le Hoang Chau, chairman of the HoREA, asked HCM City authorities to review the proposals in order to have suitable criteria for investors and contractors for state-owned social housing projects. The authorities can provide support package so that buyers can access preferential bank loans.

ADB to provide sustainable water services in Vietnam

The Asian Development Bank (ADB) and Binh Duong Water Environment JSC (BIWASE) signed an $8 million loan to expand Tan Hiep Water Treatment Plant (WTP) in Binh Duong province, one of the fastest-developing provinces of Vietnam.

The expansion will increase production capacity, install additional water intake pumps, and build raw water transmission pipes from the Dong Nai River intake facility.

The upgrade will help to meet the rising water demand of residential and industrial customers in Ben Cat town, Tan Uyen town, Binh Duong new city, and Thu Dau Mot city of Binh Duong province, where industrial zones provide jobs for nearly 1.3 million locals and more than 500,000 foreigners. The financing package also includes a parallel co-financing of $8 million from the Japan International Cooperation Agency.

A further $500,000 in technical assistance will be provided by the e-Asia and Knowledge Partnership Fund, established in 2006 by the Republic of Korea to help the ADB’s developing members meet their development goals through the creation and sharing of experience, information, and knowledge.

The technical assistance will provide capacity building on financial management and climate-resilient business and operational planning. It will also enhance the legal foundation of the business and operational framework between BIWASE and Binh Duong Provincial People’s Committee. The ADB has supported Vietnam’s water sector since 1993, through seven sovereign loans including the Water Sector Investment Program.

"This financing will deliver sustainable and efficient water supplies in this fast-growing province, spurring its future growth and contribution to the broader economy,” said Infrastructure Finance Division director for Southeast Asia, East Asia, and the Pacific at ADB's Private Sector Operations Department, Jackie B. Surtani.

“It is a strong signal to other international financiers that private sector commercial financing of Vietnam’s water sector is feasible and attractive. We are also very happy to work with the Japan International Cooperation Agency on this transaction to support water sector development in Vietnam.”

“We highly value our long-term relationship with the ADB, which goes back to 2002 when we participated in the third provincial towns water supply and sanitation project,” said BIWASE’s chairman of the board of directors Nguyen Van Thien. “We appreciate the continued support from ADB in providing a one-stop solution to enable BIWASE to transition from sovereign financing to standalone private sector financing as it continues on its growth path. We look forward to ADB’s continued engagement with the water sector in Vietnam and hope to work with the ADB again in the future.”

The technical assistance will provide capacity building on financial management and climate-resilient business and operational planning. It will also enhance the legal foundation of the business and operational framework between BIWASE and Binh Duong Provincial People’s Committee. The ADB has supported Vietnam’s water sector since 1993, through seven sovereign loans including the Water Sector Investment Program.

BIWASE was founded in 1975 as a government-owned entity. It became a joint-stock company in 2016 and was listed on the Ho Chi Minh City Stock Exchange in 2017. Currently, BIWASE has a total daily water production capacity of 311,300 cubic metres, and its services cover 78 per cent of Binh Duong province’s population. BIWASE is also the province’s sole provider of municipal solid-waste treatment and municipal wastewater and sanitation services.

HCMC, eight northwestern provinces boost tourism linkage products

A conference promoting the linkage in tourism between HCMC and eight cities, provinces in the Northwest region opened in Viet Tri City in the northern province of Phu Tho on November 15.

The event themed “Sustainable Development Linkage” was organized by the People’s Committees of HCMC and Phu Tho Province following the success of conferences on boosting cooperation in tourism between Ho Chi Minh City and 13 provinces and cities in the Mekong Delta region in last December and another of the development of tourism linkages between HCMC and neighboring cities and provinces in the Southeast region held in Tay Ninh Province in June.

Attending at the event were Deputy Prime Minister Vu Duc Dam; Chairman of the People’s Committee of HCMC, Nguyen Thanh Phong; Secretaries of Party Committees of Phu Tho, Dien Bien, Son La provinces, Bui Minh Chau, Nguyen Van Thang and Nguyen Huu Dong; and representatives of central and local departments and units.

Within the framework of the program, leaders of HCMC and 8 provinces, including Phu Tho, Dien Bien, Ha Giang, Hoa Binh, Lai Chau, Lao Cai, Son La and Yen Bai signed an agreement on tourism development cooperation in the 2021-2025 period; and an implementation plan of association activities and tourism development cooperation.

Heads of tourism associations of localities signed an agreement on offering policies of preferential price, building tourist products and supporting the promotion of products with airlines.

The event also included an online forum collecting opinions of tourism development, welcoming ceremonies to greet visitors of tourist programs launched by HCMC and provinces in the Northwest region, the introduction of tourist products of the southern hub and northwestern localities.

Speaking at the event, Chairman of the HCMC People’s Committee, Nguyen Thanh Phong said that the northwestern region with a thick layer of historical tradition, cultural diversity, and unique grandiose mountain landscape has the potential of religious and ecological tourism development. While HCMC with more than 300 years of development has become the most modern and dynamic city in the country. The Vietnam’s busiest commercial center is home of the largest airport, Tan Son Nhat and over 1,500 travel firms. The city yearly attracts nearly 10 million international visitors for its key tourist products and services, such as MICE (meetings, incentives, conferences and exhibitions) tourism; shopping, leisure, food, entertainment destinations.

He highlighted the importance and significance of the connection that will create opportunities for both sides to support each other, create specific tourist programs and develop tourism.

Deputy Prime Minister Vu Duc Dam noted the biggest problems are traffic infrastructure and tourism overload that create negative impact of tourism development. Localities should develop sustainable tourism that necessitates trans-regional cooperation among local authorities, he advised.

Investment attraction in Mekong Delta flourishes

Recently, the situation of investment attraction in the Mekong Delta has had positive changes. Many large projects with investment capital from trillions of Vietnamese dong to tens of trillions of Vietnamese dong have landed in the rice granary in the West, creating new directions, contributing to promoting economic development.

Since the beginning of the year until now, Bac Lieu Province has become a bright spot in the Mekong Delta when it has successfully called for investment from many domestic and foreign enterprises for long-term business. The People's Committee of Bac Lieu Province has issued investment policy decisions and approved investment policies for 25 domestic projects with a total registered capital of over VND17.71 trillion, up 12 projects and eight times higher in value compared to the same period last year.

Especially, in early 2020, the People's Committee of Bac Lieu Province gave the investment policy decision and the investment registration certificate for the 3,200MW Bac Lieu Liquefied Natural Gas Power Plant project, with a total investment of US$4 billion. This is the largest direct investment project with 100 percent of foreign capital (FDI) in the Mekong Delta ever. Currently, the project is urgently completing the necessary procedures to negotiate a power purchase agreement with Vietnam Electricity. The first generator of 750MWs is expected to start construction in early 2021.

The representative of the project’s investor - Delta Offshore Energy Pte. Ltd. - said that there are about 40 corporations, financial corporations, contractors, and investors participating in the project chain. He also informed that the project would provide a sustainable integrated energy system and environmentally friendly power source with high reliability and affordability. Leader of Bac Lieu Provincial People's Committee emphasized that this is a key project of the province, playing the role of creating motivation for economic restructuring. The project creates thousands of direct and indirect jobs and trillions of Vietnamese dong in taxes of all kinds when the plant is put into operation. The project is the driving force to promote socio-economic development and renew the local growth model.

In Long An Province, in terms of FDI investment, in October, the province issued investment certificates for three projects with registered capital of $17.24 million and ten projects with additional investment capital of $45.86 million. From the beginning of this year to now, Long An Province has granted investment certificates to 67 FDI projects, with a registered capital of $264.14 million. Processing and manufacturing industry, supporting industry, medical equipment manufacturing, electronic component manufacturing, consumer goods processing and assembling, and warehouse and logistics services were invested most by enterprises.

The province has carried out several solutions to remove difficulties and problems caused by the Covid-19 pandemic for enterprises to soon restore and promote production and business. Thanks to that, the production and business activities of enterprises in the province have been gradually restored in recent months, bit by bit returning to normal production. Many groups of industrial products have seen increasing output, such as processing and manufacturing, said Mr. Huynh Van Son, Director of the Department of Planning and Investment of Long An Province.

According to the Ministry of Planning and Investment, the reason that makes investment attraction in this area better is that besides the advantages of a key agricultural area and improved technical and economic infrastructure, the efforts of provinces in improving the investment and business environment is also a factor that increases the attraction of investment capital.

Mr. Nguyen Dinh Thong, Acting Director of the Department of Planning and Investment of Tien Giang Province, said that the point of view of the province on investment attraction is to synchronize the development of two planned industrial zones in Tan Phuoc District and Go Cong Town. Besides, it will speed up the development of urban projects under the approved housing development program, combined with commercial and service works in major urban centers of the province, prioritize tourism infrastructure projects, taking advantage of tourism along the Tien River, and concentrate resources and clean land funds to develop projects of agricultural product processing and agriculture using advanced technology. In 2021, Tien Giang will strive to attract more than 40 projects, with a total investment of more than VND17 trillion.

In Ca Mau Province, in Khanh An Industrial Park in U Minh District with a total area of more than 235 hectares currently, the land fund is not much, while the demand of secondary investors is fairly high. Facing the above situation, investors and joint venture partners in Ho Chi Minh City have proposed to the provincial People's Committee to consider the investment policy in expanding this industrial park. The leader of the Economic Zone Authority of Ca Mau Province said that it reported the above proposal to the provincial People's Committee. Besides, the provincial People's Committee has also assigned the provincial Land Fund Development Center to measure and make plans to clear 50 hectares of land in Hoa Trung Industrial Park in Cai Nuoc District to create a clean land fund to attract investors in the coming time.

Similarly, Bac Lieu Province has also been focusing on strengthening the linkage in the Mekong Delta region to expand cooperation with many provinces and cities, especially with Ho Chi Minh City, to attract investment resources for the socio-economic development of the province. It also inspects and urges granted projects and review projects that have already had investment policies but have not implemented or implemented slowly to draw solutions to remove difficulties.

Experts said that after the pandemic, there would be a strong investment shift, and Vietnam is an ideal destination for foreign investors. This is a good opportunity for the Mekong Delta to make breakthroughs by creating an attractive environment, the dynamism, and transparency of the government, encouraging investors to pour large  investment capital into long-term business. 

5 issues concern Vietnamese consumers most towards green living  

Sustainability becomes one of the most unsettling topics for Vietnamese consumers in recent years.

Food safety, plastic waste, water pollution, insecticide/fertilizers and air pollution are among the top 5 concerns of Vietnamese people, according to market research firm Kantar Worldpanel.

According to the latest report entitled “Kantar's Who Cares Who Does 2020,” facing increasing climate change along with escalating levels of pollution, especially in the two key cities Hanoi and Ho Chi Minh City, there is an increasing environment consciousness among a group of Vietnamese consumers (Eco-actives & Eco-considerers) who are willing to take action to improve the situation such as plastic waste reduction, recycling , and heading towards more healthy and sustainable lifestyles. 

However, in comparison with the global average, these people only account for a relatively modest proportion (about 35%), which is much lower than the global number (59%).

According to this study, nearly 80% of Vietnamese consumers maintain their shopping habits without bringing their own bags, resulting in the increasing usage of plastic bags when shopping. And the three main reasons that limit Vietnamese ‘living green” are: 

Firstly, it is the knowledge barriers. There are not much influential publicity and guidance for environmental protection from the local authorities and enterprises. A third of respondents are not sure what to do or what actions are beneficial for the environment.

Secondly, 40% of the population do not see the long-term environmental impact on their lives, and of those around them. They believe that the situation is not that bad. Therefore, there should be more emphasis on its alarming level as well as the importance of working together to reduce and tackle environmental issues.

Thirdly, sustainable and environmentally friendly products are difficult to access, hard to find on store shelves and their price is often higher than average. These are the factors that manufacturers and retailers need to consider.

In fact, one of the activities that has been promoted and encouraged recently is recycling. However, for consumers, recycling is still very vague in terms of which products can be reused, recycled and replaced, of where these products can be collected and the recycling process, how the products are recycled, and what will happen with these products after recycling. Furthermore, up to a quarter of the respondents said that recycling is inconvenient. 

In such unplanned shopping occasions, it is not convenient for consumers to bring their own bag/cup/ basket for shopping, thus, increasing the need to use free plastic even though they are aware of its negative impacts on the environment. as the result, consumers show a preference towards easier and more convenient solutions such as 100% recyclable plastic packaging or biodegradable packaging instead. 

But more importantly, there are different consumers’ expectations for different categories or products. Hence, it is crucial for businesses to understand these differences in order to identify and implement the right actions and offerings that will be welcome and supported by their target consumers, Kantar recommended. 

“Vietnamese consumers expect manufacturers to take the lead in reducing environmental impact, following by the local authorities while retailers are least expected to take actions in limiting environmental damage,” the report wrote.

However, surprisingly, only 5% of the study participants can name which manufacturers or brands are doing good deeds for the environment, and the remaining 95% could not recall any brands. This can be because (1) only a small portion of Vietnamese pay attention to businesses that actually act for the environment (the Eco-actives) or (2) the brands do not prefer/prioritize or have not widely communicated these “green” actions. If it's the second season, it’s understandable why most Vietnamese are in the group "Eco-dismissers". 

Kantar's Worldpanel data also revealed a majority of this consumer group stopped buying some products and services because of their impact on the environment or society. 

Considering the fast-moving consumer goods (FMCG) industry alone, they spend 7% more on groceries per year than Dismissers, making more trips and having bigger shopping baskets, contributing to nearly 40% of FMCG sales for in-home consumption. This implies the importance of this “more active” group of consumers. By involving and engaging with them will create an increased opportunity for brands to achieve a sustainable development in the future.

Thai firm to receive VND687 billion in dividend from Sabeco

Vietnam Beverage Co Ltd, a local unit of the Thai Beverage Public Company Limited, which owns a 53.59% stake in Saigon Beer, Alcohol and Beverage Corporation (Sabeco), will receive VND687 billion (US$29.4 million) in cash dividends for this year from Sabeco as it has approved the advance payment of dividend for the year 2020 in cash at 20%.

Despite the company’s profit reduction triggered by Covid-19, Sabeco has offered a high dividend payout ratio, the local media reported.

The payment is expected to be made on December 18.

With more than 641 shares being traded, Sabeco will have to spend some VND1.3 trillion on the dividend payment.

The State Capital Investment Corporation, which holds a 36% stake in Sabeco, will receive VND461 billion.

As planned, Sabeco would pay a dividend at 35% for 2020.

Sabeco’s business has recovered since last quarter after being hit by the pandemic. Specifically, its net revenue in the third quarter dropped 17% year-on-year to over VND8 trillion but its pretax profit edged up 1% to VND1.8 trillion.

In the January-September period of 2020, the firm earned more than VND20 trillion in net revenue and VND4.2 trillion in pretax profit, down 29% and 19%, respectively, over the same period a year ago.

Investment in HCMC-Moc Bai expressway project surges VND3 trillion

The total investment in the HCMC-Moc Bai expressway project, linking the city with Tay Ninh Province, has been projected to increase by VND3 trillion from the initial figure due to an addition of two intersections along the road and higher site clearance cost.

At a ceremony to sign an agreement on the project in late October last year, the cost for the project was estimated at VND10.7 trillion. However, in a recent document sent to the Ministry of Planning and Investment, the figure was reported at more than VND13.6 trillion, the local media reported.

The investment hike was attributed to the construction of an intersection in HCMC’s Hoc Mon District with Ring Road No. 3 and another intersection with road No. 8 in HCMC’s Cu Chi District. In addition, the cost of the site clearance work for the project and compensation for the affected households have increased.

The expressway was designed to have a total length of 53 kilometers, starting at Ring Road No. 3 in HCMC’s Hoc Mon District and ending at National Highway 22 at the Tay Ninh’s Moc Bai Border Gate Economic Zone.

The road, which will have four lanes in the first phase, is expected to be opened to traffic in 2025.

An area of 432 hectares has been taken back to make room for the project, including 209 hectares in HCMC and the remainder in Tay Ninh.

The project will be executed under the public private partnership format with a build-operate-transfer contract.

The capital poured into the project is expected to be recovered 23 years and eight months after the project is put into use.

Once in place, the expressway will help improve the traffic system in the southern key economic zone, increase the capacity of a road connecting HCMC and Cambodia and ease traffic on National Highway 22.

The Ministry of Transport had initially been assigned as the investor of the project. However, the project has been delayed for a long time and in September last year, the HCMC government urged the ministry to propose the Government give it autonomy and coordinate with Tay Ninh to execute the project.

On October 23, the Government allowed the HCMC government to take charge of the project.

60% of hotels, 40% of travel companies in Binh Thuan shut down

Some 60% of hotels and 40% of travel companies in the south-central province of Binh Thuan, one of the most popular tourist attractions in Vietnam, have suspended operations due to the impact of the Covid-19 pandemic.

According to the Binh Thuan Province Department of Culture, Sports and Tourism, many travel companies have shut down since February. Some companies catering especially to Russian tourists have shut shop since late March.

As of September, only 60% of travel companies have remained operational. However, the number of tourists has fallen by 70-80% year-on-year.

The average room occupancy rate of hotels in the province has dropped from 25-40% between April and August to the current 10-15%. Their main customers are domestic tourists who opt for weekend getaways.

Before Covid-19 broke out, the province had 576 operational accommodation facilities with over 16,000 rooms. However, only some 200 of them remain operational at present.

The closure of hotels and travel companies has left 70% of tourism workers in the province, or 18,200 people, without jobs.

Tourism is the key economic sector of Binh Thuan Province. However, from January to September, the province’s tourism revenue was estimated at more than VND6 trillion, falling by 45.9% compared with the same period last year.

2020 EWEC Da Nang features 350 booths

The East West Economic Corridor International Trade Tourism Fair (EWEC Da Nang 2020) is now underway in the central city of Da Nang, featuring over 350 pavilions of 270 businesses.

Started on November 18, it is the first time that businesses from Italy and Bulgaria have participated in the fair, in addition to regular international partners of Japan, Laos and China.

The event aims to promote trade, tourism and investment amongst localities in the East West Economic Corridor and ASEAN.

On show are electronic, wooden and interior products, jewellery, gemstones, and consumer goods. Besides, tourism services are also promoted.

Within the framework of the event, a workshop on supply-demand bringing together 110 firms of 21 localities across the country will be held, along with training courses on trade promotion mechanisms and policies and the implementation of the national trade promotion programme in the central and Central Highlands.

Speaking at the opening ceremony, Vice Chairman of the Da Nang People’s Committee Ho Ky Minh said that the event helps foreign firms to explore investment opportunities in the city.

With incentives and optimal mechanisms, the central city, located at the end of the EWEC – linking Myanmar, Thailand, Laos and Vietnam, has welcomed an influx of investment. It plays an important role as a main logistics centre in ASEAN and EWEC.

Spanning 1,450km, the EWEC links 13 provinces and cities of the four countries.

The fair will be open to the public free of charge until November 23./.

Over 189.5 million USD mobilised from Government bonds

The State Treasury on November 18 mobilised over 4.4 trillion VND (about 189.56 million USD) through Government bond (G-bond) auctions on the Hanoi Stock Exchange (HNX).

A total of 6 trillion VND worth of G-bonds were offered, including ten-year bonds valued at 1.5 trillion VND, 15-year bonds worth 3 trillion VND, and 20-year bonds worth 500 billion VND.

The State Treasury raised 1.5 trillion VND worth of ten-year bonds with an annual interest rate of 2.55 percent, equaling that of the previous auction on November 11.

A total of 2.7 trillion VND was mobilised from 15-year bonds with an annual interest rate of 2.79 percent, up 0.01 percent from the auction on November 11.

Bonds with 20-year maturity raised 200 billion VND with an annual interest rate of 3.05 percent, down 0.03 percent as compared to the November 4 auction. The sub-auction for the 15-year bonds on the same day raised an additional 1.5 trillion VND.

So far this year, the State Treasury has collected nearly 271.2 trillion VND from G-bond auctions at the HNX./.

Vietnam Foodexpo 2020 to be held online late November

The Vietnam International Food Industry Exhibition 2020 (Vietnam Foodexpo 2020) is scheduled to be held online in later this month, with the aim of boosting the domestic market and the export of food and agricultural products.

The expo was initially set to take place in Ho Chi Minh City on November 18-21. However, due to COVID-19, the Ministry of Industry and Trade has decided to hold the event online, at https:foodexpo.vn.

On display will be vegetables, fruits, seafood, beverages, tea, coffee, food materials and kitchen utensils, among others.

Vietnam Foodexpo 2019 featured 600 booths by 400 domestic and foreign firms, and welcomed some 15,000 visitors from nearly 50 countries and territories, along with more than 9,000 Vietnamese.

More than 3,000 contracts and agreements were reached during the last year’s expo.

2020 EWEC Da Nang features 350 booths

The East West Economic Corridor International Trade Tourism Fair (EWEC Da Nang 2020) is now underway in the central city of Da Nang, featuring over 350 pavilions of 270 businesses.

Started on November 18, it is the first time that businesses from Italy and Bulgaria have participated in the fair, in addition to regular international partners of Japan, Laos and China.

The event aims to promote trade, tourism and investment amongst localities in the East West Economic Corridor and ASEAN.

On show are electronic, wooden and interior products, jewellery, gemstones, and consumer goods. Besides, tourism services are also promoted.

Within the framework of the event, a workshop on supply-demand bringing together 110 firms of 21 localities across the country will be held, along with training courses on trade promotion mechanisms and policies and the implementation of the national trade promotion programme in the central and Central Highlands.

Speaking at the opening ceremony, Vice Chairman of the Da Nang People’s Committee Ho Ky Minh said that the event helps foreign firms to explore investment opportunities in the city.

With incentives and optimal mechanisms, the central city, located at the end of the EWEC – linking Myanmar, Thailand, Laos and Vietnam, has welcomed an influx of investment. It plays an important role as a main logistics centre in ASEAN and EWEC.

Spanning 1,450km, the EWEC links 13 provinces and cities of the four countries.

The fair will be open to the public free of charge until November 23.

Malaysia’s capital city tightens liquor business rules

Malaysia’s capital city of Kuala Lumpur has tightened the regulations in liquor business by banning grocery shops, convenience stores as well as Chinese medicine shops to sell hard liquor from October 1, 2021.

According to Kuala Lumpur City Hall (DBKL)’s announcement on the criteria for liquor licence applications, existing sundry shops, convenience stores and Chinese medicine shops that sell hard liquor can only renew their liquor licence until September 30 next year.

Premises and activities that allow liquor sale include restaurants, pubs, bars, hotels, commercial complexes, warehouses, supermarkets, hypermarkets as well as promotional activities that serve liquor.

However, pure or mixed liquor products in traditional medicine will be exempt from this ruling and beer still allowed to be sold at these premises from 7am to 9pm and the beers must be placed separately from other beverages.

Pubs, bars, lounges and restaurants can sell liquor from 10am until midnight while additional application to extend the sale of liquor until 2am can be made based on the allowed entertainment hours of the premises or the approved time limit for premises at entertainment zones.

Business premises that sell liquor also cannot be in front of police stations, places of worship, schools and hospitals, according to the announcement.

Vietnam-Indonesia hold workshop to encourage economic cooperation amid COVID-19

An online workshop on seizing trade, investment, and tourism opportunities in Vietnam and Indonesia amid the COVID-19 pandemic took place on November 18, gathering close to 150 individuals and organisations.

Co-organised by the Vietnamese Embassy in Indonesia in collaboration with the Indonesia – Vietnam Friendship Association, the event updated participants on the two governments’ policies for responding to the pandemic and recovering the economies. It also aimed at fostering win-win cooperation between Vietnam and Indonesia.

In his opening speech, Vietnamese Ambassador Pham Quang Vinh said both governments have made significant efforts in controlling the epidemic and developing the economies, stressing that entrepreneurs and investors should grab the opportunity brought about by their investment attraction and tourism incentives.

At the workshop, participants discussed in groups business, investment, and tourism topics. They also registered to join virtual chatrooms for deeper discussions of common interest.

The event was among a series of activities marking the two countries’ 65th anniversary of diplomatic relations (December 31, 1995 – 2020).

Forum suggests ways to bolster exports, economic recovery

Boosting support for Vietnamese enterprises to capitalise on free trade agreements (FTAs) and engage more deeply in global supply chains is an important solution to fuel post-pandemic exports and economic recovery, the Export Forum 2020 held in Ho Chi Minh City on November 18 heard.

Pointing out the challenges facing exports, participants cited the World Bank (WB) as saying that the COVID-19 crisis has had an unprecedented impact on matters such as healthcare, the economy, and society around the world, while at the same time worsening protectionism.

Growing automation and the withdrawal of many countries from global value chains may make it hard for processing and manufacturing and export strategies to prove effective in emerging markets and developed economies, according to the WB.

It also held that although Vietnam has an open economy, its participation in global and regional value chains remains modest and much lower than that of ASEAN countries like Singapore, Thailand, Indonesia, Malaysia, and the Philippines.

Vietnam created just 20.4 billion USD in 2018 via its involvement in value chains, ranking 53rd among 174 economies. Its participation in complex stages of those chains also remains low.

Nguyen Huu Tin, Director of the HCM City Investment and Trade Promotion Centre (ITPC), cited the World Development Report 2020 as showing that Vietnam’s engagement in value chains is currently at the “limited processing-manufacturing” level.

The country should move to higher levels in value chains to improve productivity, he said.

Vice Chairman of the HCM City People’s Committee Le Thanh Liem said the city’s trading activities have greatly contributed to the trade revenue of the country as a whole, noting that its exports have increased 10 percent annually on average for many years, with industrial products accounting for over 80 percent of total revenue.

He acknowledged, however, that the impact of COVID-19 and continual changes in trade trends in many regions have considerably affected the city’s exports.

Therefore, assisting businesses to access market information, join global supply chains, and raise localisation rates in export items are among the city’s top priorities for sustaining export growth and shoring up its economy, Liem added.

Tin said the ITPC has been actively carrying out programmes to help enterprises capitalise on advantages generated by FTAs and promote Vietnam’s involvement in global supply chains.

During the COVID-19 pandemic, instead of face-to-face support activities, the centre has provided assistance online to update companies about market information and help them seek partners.

Knowledge about FTAs, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), has also been disseminated via different forms, to help businesses make use of the preferential treatment offered under those trade deals, he noted.

Echoing this, Pham Thiet Hoa, General Director of the Saigon Agriculture Corporation, pointed to the need to optimise the advantages brought about by new-generation FTAs in order to boost the participation of Vietnamese agricultural products in global supply chains, saying these agreements feature preferential tariffs on such commodities.

Many experts at the forum suggested the stronger application of modern technologies and equipment in production, the diversification of products and markets, greater connectivity with partners in supply chains, the optimisation of logistics services, and brand building, all of which should be implemented immediately to raise revenue and sustainability in Vietnam’s export sector./.

Firms to be honoured as national brands

After nine months of selection, 124 companies with a total of 283 products will be honoured as Vietnam National Brand this year, according to a decision of the National Brand Council.

The figure this year was 27 higher than in 2019. Among them, 17 enterprises had products honoured as Vietnam National Brand for seven consecutive times since the programme was launched.

The information was disclosed at a November 17 conference held by the Ministry of Industry and Trade to introduce the ceremony honouring these companies which will be held on November 25 in Hanoi.

Deputy Minister of Industry and Trade Do Thang Hai said with the recognition of national brands, firms could affirm their position in the domestic market and expand in global markets.

The programme significantly contributed to increasing the awareness of the business community about the importance of brands in increasing added value for products as well as corporate value, through which, enterprises’ competitiveness would be enhanced, Hai said./.

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