The Operations Centre of the State Bank of Vietnam, on November 24, adjusted down both the buying and selling rates for the US dollar, the first adjustment made so far this year.

Accordingly, the USD buying rate at the centre was listed at 23,125 VND/USD and the selling rate at 23,813 VND/USD, down 50 and 11 VND/USD, respectively.

At commercial banks, the exchange rate for the greenback strongly fluctuated after staying stable for several days.

At 2:25 pm, Vietcombank listed the buying rate at 23,040 VND/USD and the selling rate at 23,250 VND/USD, up 10 VND from November 23 afternoon.

The rates at Techcombank also increased by 5 VND from the end of November 23, with the buying rate listed at 23,051 VND/USD and the selling rate at 23,251 VND/USD

Meanwhile, the daily reference exchange rate was set at 23,168 VND per USD on the day, down 7 VND from the previous day. With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is 23,863 VND/USD and the floor rate, 22,473 VND/USD./.

Sovico Aviation bids for Vietjet shares

Sovico Aviation Holdings Company (Sovico Aviation) has registered to buy 33 million shares of Vietjet Aviation Joint Stock Company (HoSE: VJC). The deal is being carried out between November 12 and December 11, 2020 via put-through and/or order-matching transactions.

Such move by Sovico Aviation, Vietjet’s blockholder, shows its confidence in Vietjet’s recovery post COVID-19 due to the airline’s effective and flexible business solutions in response to the ups and downs of the aviation market.

Vietnamese airlines’ stocks lifted on November 10, 2020 as investors believed in the rebound of aviation businesses, which are deemed the leverage for other economic sectors.

Shares of the two largest Vietnamese airlines – Vietjet (VJC) and Vietnam Airlines (HoSE: HVN) - outstood among other stocks. Vietjet shares hit the ceiling price on November 10, soaring 7 percent to 113,400 VND (approx. 4.8 USD) apiece with asking volume being down to zero and bidding volume increasing up to 238,000 shares.

Vietnam Airlines shares jumped 5.6 percent to 27,500 VND (approx. 1.1 USD) apiece while the Airports Corporation of Vietnam stock (UpCom: ACV) also headed north, up by 5.4 percent to 66,400 VND (approx. 2.8 USD) apiece.

The growth of Vietjet shares contributed 1.12 points for the benchmark VN-Index on November 10, helping the index beat the resistance of 970 points, which was its previous peak in October, and entered a growing trend.

Foreign investors, meanwhile, finally ceased their net sale for five consecutive sessions on November 13. They instead poured money into VJC, partly making the stock one of the trading highlights on HoSE with transaction value totaled more than 166.3 billion VND (approx. 7.2 million USD).

Flight network recovery, cheap tickets and stimulus for tourism demand are measures that airlines are carrying out at the time. Industry experts believe that Vietnam’s aviation is set on the path of positive recovery with Vietjet in particular gaining certain advantages over other carriers. The airline is launching new products and services to meet the increasing demand of the customers.

Vietnam has fully resumed its domestic flight network and is ready to reopen international flights as soon as Vietnamese government allows to do so, meeting the double targets of COVID-19 prevention and economic development.

Six percent growth feasible for 2021

The National Assembly recently passed a resolution on the socio-economic development plan for next year, with the majority of deputies agreeing with economic proposals tabled and the goal of recording GDP growth of about 6%. This is a reasonable growth rate, deputies said, and fully achievable.  

The resolution sets out a number of major targets: GDP of 6 percent, GDP per capita of some 3,700 USD, and an average consumer price index of around 4 percent. The GDP target is based on estimated results for 2020, the balance of resources, and forecasts from international organisations. The targets, many economists have said, are quite conservative.

In the context of a world looking at recession, Vietnam will post 2-3% growth this year and its domestic market remains stable and exports are increasing. This is the foundation for growth in 2021.

International organisations in Vietnam have said that 2021 growth is unlikely to rebound strongly from COVID-19, and growth of 5-6.5% is therefore perfectly feasible.

2021 has been of major importance, as it was the year for preparing for the next five-year development plan and the ten-year development strategy (2021-2030). It has also been eventful, with the organisation of the 13th National Party Congress, and elections for the 15th National Assembly and local-level People’s Councils. Efforts to complete the growth target for the year are therefore even more meaningful./.

Project launched to develop eco-industrial park model

The Ministry of Planning and Investment (MPI) and the United Nations Industrial Development Organisation (UNIDO) have launched the project “Eco-industrial Park Intervention in Vietnam - Perspective from the Global Eco-Industrial Parks Programme”.

The inception workshop and signing ceremony of the project were held in Ho Chi Minh City last week.

The project has a cost of more than 1.82 million USD, of which 1.68 million USD is official development assistance (ODA) from the Government of Switzerland through its Swiss State Secretariat for Economic Affairs, as well as co-funding of 138,800 USD from the Ministry of Planning and Investment.

It is the continuation of the successful implementation of the pilot initiative which concluded last year after being launched in 2014.

The three-year project will be implemented in the cities of Hanoi, Hai Phong, Da Nang, Can Tho and HCM City, and Dong Nai province.

It is expected to create the foundation for the replication of the eco-industrial park (EIP) model across the country in the coming years.

The project has two components: enhancing policies and instructions for the implementation of EIPs, and implementing technical interventions to transform selected industrial parks into EIPs.

It will help improve the legal framework and develop information and technical databases to connect businesses and to support implementation of solutions to transform industrial parks into EIPs.

It is expected that the outcomes of the project will lay the foundation for Government agencies and donors to continue mainstreaming the EIP concept throughout the country.

Speaking at the inception workshop, Swiss Ambassador to Vietnam Ivo Sieber said that Vietnam’s development over the past 30 years had been truly remarkable. However, rapid economic growth and industrialisation had had a detrimental impact on the environment and natural assets.

There had been a sharp increase in Green House Gas emissions (GHG) and a growing depletion of biodiversity over the same period of time, he said.

“It is encouraging that Vietnam’s next Socio-Economic Development Strategy 2021-2030 includes clear strategic directions, which will promote a transformation towards a green economy.

“The viability and benefits of an eco-industrial park model will contribute to improving the economic, environmental and social performance of industries in Vietnam, which is very responsive to the government’s vision of a green economy.”

"Switzerland is proud to partner with UNIDO in promoting resource efficiency and cleaner production solutions in Vietnam," he added.

Le Thi Thanh Thao, UNIDO’s country representative in Vietnam, said that the EIP model was essential for Vietnam to develop sustainable industrial development, while protecting the environment through resource and energy-use efficiency.

EIPs would be more likely to attract investments and generate a collective competitive advantage, Thao said.

The development of EIPs would create a premise to improve policies and regulations about EIPs in particular and to integrate the EIP model into the legal framework on the environment and industries as well as other relevant policies, she added.

The Ministry of Planning and Investment and UNIDO, with the support of a number of donors, implemented the eco-industrial park initiative in the 2014 – 2019 period. It had significant impact on policy development and demonstrated innovative technologies and practices.

The EIP model is mentioned in Decree 82 on the management of industrial zones and economic zones. The new decree forms a strong legal framework for the future development of Eco-Industrial Parks in Vietnam.

Various solutions for resource-efficient and cleaner production were implemented under the framework of the pilot initiative.

These led to an avoided annual demand of over 22,000 MWh of electricity, 600,000 cubic metres of freshwater, 140 TJ of fossil fuel, and nearly 3,600 tonnes of chemicals and waste, through resource-efficient and cleaner production and industrial symbiosis solutions.

These solutions also led to avoided emissions of 32 kt of CO2 every year.

As of the end of June, the country had 336 industrial parks, of which 279 are operational.

Last year, enterprises in IPs and economic zones earned 235 billion USD in revenue, a year-on-year increase of 8 percent, and 142 billion USD in export turnover, contributing nearly 59 percent to the nation's export turnover./.

National industrial encouragement programme approved

The Prime Minister on November 20 signed Decision No.1881/QD-TTg approving the national industrial encouragement programme for the 2021-2025 period.

The programme aims to effectively pool and use resources, creating a new driving force for industrial-handicraft development; contribute to building new rural areas and shifting economic structure towards industrialisation and modernisation; facilitate the transfer of clean technologies to improve the effective use of natural resources for green and sustainable development.

It is also designed to boost trade in industrial products produced in rural areas towards developing products with high competitiveness to meet demand of foreign markets, as well as increase the processing of agro-forestry-fisheries products, and enhance the value and technological contents of industrial and handicraft products.

The scheme also targets creating favourable conditions for rural industrial establishments to access digital economic development opportunities and effectively carrying out roadmap to global economic integration.

It also sets the goal of building 340 technological demonstration models, repairing and upgrading pollution treatment for 50 industrial establishments in rural areas, assisting in holding 15 exhibitions and fairs in the country and five others abroad, and offering vocational training to 10,000 rural workers.

The Ministry of Industry and Trade was assigned to carry out the programme using the State budget, capital of rural industrial establishments, and funding of related programmes and projects./.

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.

These companies will be honoured at a ceremony to 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./.

Support industries predicted to attract greater foreign investment

Support industries for machinery manufacturing, electronics, and deep processing are forecast to attract greater foreign investment in the years to come, according to insiders.

Hua Quoc Hung, Director of the HCM City Export Processing and Industrial Zones Authority (HEPZA), said it has already exceeded its 2020 investment goal, with total registered capital of more than 591 million USD, up 7 percent compared to the same period last year.

Investment primarily focuses on areas encouraged by the city, including support industries, the official noted.

Six of the 11 newly-licensed FDI projects are in support industries for the fields of mechanics, electronics, plastics, and rubber.

Notably, Japan’s Nikkiso Vietnam MFG Co., which specialises in producing medical equipment, increased its investment capital by 3 million USD to expand production in Vietnam.

Among the FDI projects licensed by local authorities in 2020 are many large projects in support industries, such as the 20 million USD investment from Singapore’s Ever Giant International Private Limited producing aluminium alloy products, and a 30 million USD project owned by the island state’s Sung Shin Tech Limited.

Eighty-six percent of FDI in Binh Duong has gone to manufacturing and processing, while many support industry projects in electricity, electronics, mechanics, pharmaceuticals, and chemicals have been attracting investors.

Meanwhile, according to the Dong Nai Industrial Zones Authority (DIZA), the majority of newly-licensed FDI projects this year are in support industries.

Projects in the field also had capital added, such as those invested in by the Schaffler Vietnam Co. and by the Chang Shin Vietnam Co., with 50 million USD and 87 million USD, respectively.

The Saigon Hi-Tech Park (SHTP) in HCM City said it signed an agreement with the management boards of industrial parks and export processing zones in the southern key economic region in late October to form a network of organisations to support small- and medium-sized enterprises (SMEs) in support industries via regional links.

The agreement also supports businesses operating in support industries in expanding domestic and foreign markets by creating a direct supply-demand link between enterprises and introducing industrial manufacturing units to join the supply chains of domestic finished product manufacturers and FDI enterprises.

According to HEPZA, it will grant investment licenses to a large-scale FDI project in the support industry that will focus on building high-rise workshops for lease to enterprises participating in the group’s production and supply chain.

Okada Hideyuki, Chairman of the Japanese Business Association in HCM City (JBAH), forecast that the wave of Japanese investment shifting to Vietnam will be stronger by the end of this year or early next year, when the COVID-19 pandemic is brought under full control.

Support industries for machinery manufacturing, electronics, and deep processing will receive major investment from Japanese businesses, he said, adding that within Japan’s new investment trend, most businesses are using modern and environmentally-friendly technologies and fewer workers.

Prime Minister Nguyen Xuan Phuc, meanwhile, signed Resolution No 115 this year on measures to further propel support industries, setting out development goals for the next decade.

Vietnamese enterprises are to be able to produce highly-competitive support products, meeting 45 percent of essential needs for domestic production and consumption and accounting for about 11 percent of industrial production value by 2025.

About 1,000 enterprises are to be capable of direct supply to assembly enterprises and multinational corporations, with domestic enterprises to account for about 30 percent by 2025.

By 2030, support products will meet 70 percent of demand and account for about 14 percent of industrial production value. Some 2,000 companies are to be capable of supplying directly to assemblers and multinational corporations by 2030./.

Malaysian expert advises APEC economies to propel CPTPP

Member economies of the Asia-Pacific Economic Cooperation (APEC) Forum should boost the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) prioritising the creation of a condition conducive to the rejoining of the US, the biggest economy in APEC, said Hoo Ke Ping, an independent Malaysian politic and economic expert.

In an interview with the Vietnam News Agency, Hoo lauded the flexible change from the Trans-Pacific Partnership (TPP) into CPTPP after the US’s withdrawal from the pact under Donald Trump’s administration.

He suggested the forum to be better constructed rather than just making bold changes based solely on economic cooperation.

The expert said APEC should build an Asia-Pacific free trade area on the foundation of the CPTPP, and its member economies should be serious in boosting the implementation of the pact.

APEC comprises 21 member economies which together account for 60 percent of the world’s gross domestic product (GDP).

The CPTPP is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam./.

Vietnamese firms in Laos gather to propose measures against difficulties

Over 100 Vietnamese firms doing business in Laos joined a conference in Vientiane on November 22 to collect raise their ideas to be submitted to the two Prime Ministers so as to ease difficulties they are facing.

Speaking at the event, Vietnamese Ambassador to Laos Nguyen Ba Hung said that with socio-political stability and great bilateral friendship, Laos is now Vietnam’s largest source of outbound investment, adding that as a member of the Regional Comprehensive Economic Partnership deal, Laos will realise policy and mechanism reform to create more favourable conditions for foreign firms, including Vietnamese.

As many as 14 corporate representatives spoke highly of the Lao Government’s support for Vietnamese enterprises in the host country.

They suggested that the Vietnamese Government offer all possible support in terms of capital and resources to Vietnamese firms investing in Laos, such as mechanisms and policies related to land ownership right, export and import of goods and labour.

Enterprises called on the two State banks and governments to consider encouraging the use of Lao and Vietnamese currencies to ease reliance on US dollar and pressure on the shortage of foreign currencies.

Barriers to doing business in Laos should also be removed to carry the Lao economy forward, contributing to further tightening bilateral friendship, they said.

According to the Association of Vietnamese Investors in Laos, Vietnam now ranks third among the countries and territories investing in Laos with over 400 projects worth nearly 4.2 billion USD./.

More M&A deals in the banking sector next year: experts

Vietnam’s equity market may witness big merger and acquisition (M&A) deals in 2021 as local banks are trying to lure foreign capital on the country’s participation in international trade deals.

Vietnamese banks, especially small-cap ones, are targeting more foreign capital to improve their performances, financial expert Huynh Trung Minh said.

However, the global markets have been hit by the COVID-19 pandemic, so it is difficult for foreign investors to hunt Vietnamese banking shares at the moment, he said, cited by tinnhanhchungkhoan.vn.

So the banks lock their foreign ownership ratios to wait for the opportunities to come and keep their shares from the market volatility.

Among those banks making the move was the Vietnam Technological and Commercial Joint Stock Bank (Techcombank), which capped its foreign capital ratio at 22.5 percent.

HCM City Development Joint Stock Commercial Bank (HDBank) also decided to curb foreign investors’ ownership limit to 21.5 percent from 30 percent in order to attract potential buyers.

Vietnam Prosperity Joint Stock Commercial Bank also cut the foreign ownership limit by 7.77 percent to 15 percent.

Among others, VietCapital Bank and NamA Bank are discussing similar ideas with shareholders.
Techcombank shares (HoSE: TCB) have gained as much as 32.6 percent since July 30 to touch the six-month high of around 24,000 VND apiece.

HDBank shares (HoSE: HDB) and VPBank shares (HoSE: VPB) have respectively increased by as much as 7.7 percent and 29 percent in the same time.

According to bank officials, the banks will not sell their shares on the market at any cost and they will select the buyers carefully.

Under Decree 01/2014/ND-CP, a foreign investor cannot own more than 20 percent of a Vietnamese financial institution and the total ownership among all foreign investors cannot exceed 30 percent.

Some Vietnamese banks have completed selling stakes to foreign buyers but many of them still have room to welcome overseas investors.

On the other hand, the European Union-Vietnam Free Trade Agreement (EVFTA) may facilitate European financial firms to penetrate Vietnamese market. One of the key things under the trade pact is European investors may increase their ownership ratios to maximum 49 percent in two Vietnamese banks.

Those beneficial banks will not include the top four State-controlled banks – Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), and Agribank.

That rule now puts private-equity banks, including VPBank, Techcombank, Asia Commercial Joint Stock Bank (ACB) and Vietnam International Joint Stock Commercial Bank (VIB), at the centre of attention, according to Vietnam International Securities Co./.

Ministry working to promote growth of support industries

The Ministry of Industry and Trade (MoIT) has introduced a range of measures to boost the growth of support industries in a bid to promote the engagement of local companies in production chains.

It has worked hard over the years to strengthen the enforcement and efficiency of State management over the building of policies for support industries, while enhancing the quality of statistics compilation to ensure the provision of timely, complete, and accurate information to the business community.

Amid the current situation, with supply and demand connectivity yet to be tight in Vietnam, the ministry has defined the compilation of statistics and a database on manufacturing and processing as key tasks.

As part of activities to help businesses in support industries and manufacturing and processing engage more deeply in production chains, the ministry has launched a data system on activities in Vietnam.

The system will provide data on more than 3,500 enterprises in the automobile sector, food processing, electronics, leather and footwear, and garments and textiles, contributing to forming a network of businesses in the field and helping businesses and investors remain updated on new policies and other information relating to industrial sectors in Vietnam.

Manufacturing and processing is also a key field for attracting FDI. In 2019 alone, Vietnam as a whole attracted 3,478 new projects with total capital of nearly 31.8 billion USD, with the manufacturing and processing industry accounting for the highest proportion, with capital of 21.6 billion USD, or 67.8 percent of the total.

The data system aims to facilitate links between Vietnamese suppliers and multinational corporations. Steps have also been taken to enhance the regulatory effectiveness, efficiency, and development of policies on support industries, improve the quality of statistics, and ensure the availability of timely, complete, and accurate data.

Considered as the backbone of the economy, manufacturing and processing is a key driver of growth for the national industrial sector. With an average annual growth rate of 10.6 per cent, manufacturing is a “bright spot” in Vietnam’s industrial sector in the context of the global economic downturn due to COVID-19.

According to Minister of Industry and Trade Tran Tuan Anh, the database is an important milestone in addressing the needs of a business-to-business (B2B) network to link local and foreign businesses. It will help businesses and investors seek information in a quick and accurate manner, facilitating investment matching and enhancing opportunities for cooperation between Vietnamese and foreign businesses as well as multinational corporations.

In the context of the COVID-19 pandemic, with direct trade activities having experienced many difficulties, the database will be even more efficient in helping businesses connect and seize the opportunities presented by new generation free trade agreements to which Vietnam is a party, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and, most recently, the EU-Vietnam Free Trade Agreement (EVFTA).

The ministry recently organised an online investment promotion conference to introduce the country’s business environment and available incentives to more than 1,000 Japanese investors.

Earlier, the Trade Promotion Agency under the Ministry of Industry and Trade and other relevant agencies held an online conference to introduce products from Vietnam’s support industries to Japanese companies.

According to Takeo Kakijama, Chief Representative of the Hanoi Office of the Japan External Trade Organisation (JETRO), Vietnam has long been an attractive destination for Japanese investors, primarily thanks to the incentives the country has offered to Japanese companies, especially in support industries.

Vietnam holds a major advantage no other regional country has: a large number of workers skilled in the Japanese language.

Labour costs and land rentals in Vietnam are both relatively low, and the country’s many free trade agreements make it attractive to foreign investors, he said./.

Businesses prepare for Tet, to ensure sufficient supply

Businesses are increasing production to ensure sufficient supply of goods for Tet early next year and steady prices during the year's biggest shopping season.

The HCM City Department of Industry and Trade recently announced plans for its annual market stabilisation programme to ensure adequate supply of essential goods for a month each before and after the festival.

Demand for items such as drinks and confectionery is expected to spike by 20 per cent during Tet, while wholesale markets may need to stock 80 per cent more flowers than normal to meet demand.

Besides increasing production, companies are also working on launching new products and business models. For instance, Ba Huan Joint Stock Company will produce more varieties of processed goods for Tet, while Vinamit Joint Stock Company is focusing on working with online distributors and launching new nutritious vegetable and fruit drinks by the end of the year.

According to the department, large retailers are set to stock goods two or three times as in normal months though most are reluctant to announce their exact business plans for Tet.

Due to negative factors like the COVID-19 pandemic and flood in central Viet Nam, demand during next year's Tet might be lower than normal, many businesses feared.

They need to utilise online channels and spend more on marketing and promotions, they say.

The Ministry of Industry and Trade has called on province and city authorities across the country to monitor local production and business plans, have plans in place to deal with potential market anomalies and keep an eye on the market to ensure a steady supply of essential goods and those covered by price stabilisation programmes. 

Vietnam underscores importance of FTAs to ASEAN-EU relations

The initial successes of the implementation of high-quality free trade agreements (FTAs) between the EU and ASEAN member states, such as the FTA between the EU and Vietnam, along with the FTA between the EU and Singapore, will provide a solid foundation towards one day having an FTA between ASEAN and the EU. 

These remarks were made by Minister of Industry and Trade Tran Tuan Anh during the eighth edition of the ASEAN-EU Business Summit that is running with the theme of “Towards an inclusive, resilient and stronger ASEAN” which was held via an online platform on November 19 in Singapore.

The occasion saw the participation of more than 250 delegates, including policy makers and business leaders from both Europe and Southeast Asia.

Some of the major issues under discussion at the meeting were focused on promoting digital economic development and transformation, e-commerce, and searching for ways to ensure a sustainable health care system that can be provided at a suitable cost for people in the ASEAN region. In addition, opportunities that exist for European businesses amid ASEAN’s economic recovery process following the novel coronavirus (COVID-19) pandemic were also mentioned.

During his speech, Singaporean Industry and Trade Minister Chan Chun Sing reaffirmed that both sides can be connected by digital platforms and standards, and should not be divided based on the issue of geographical distance.

Moving forward, there are now greater opportunities for like-minded countries to co-ordinate and establish high-standard regulations aimed at addressing digital trade-related issues, the Singaporean Minister said. Indeed, a digital economy agreement (DEA) will be a major step to achieve digital connectivity between the two sides.

In his speech, Vietnamese Minister of Industry and Trade Tran Tuan Anh stated that the EU represents ASEAN's second largest trading partner throughout the 2009 to 2018 period, as well as being ASEAN's largest investor with total direct investment capital of US$190 billion.

Minister Anh also expressed optimism regarding the future of the ASEAN-EU relationship, thereby encouraging the two blocs to take full advantage of potential opportunities moving past the COVID-19 pandemic that could establish resilience and economic prosperity.

Citing the EU-Vietnam free trade agreement (EVFTA), Minister Anh said that these high-quality FTAs serve to have a positive impact on the Vietnamese economy, along with helping to improve the governance processes, along with moving the Vietnamese legal system towards greater transparency and openness.

According to the Vietnamese Minister, both sides should continue to accelerate a range of economic and trade co-operation activities at bilateral and regional levels with a particular focus on urgent issues for the business community, including supply chain connectivity and non-tariff barriers.

ASEAN and the EU are also in the process of exchanging ideas to speed up the resumption of FTA negotiations. This is being done by strengthening dialogue activities at all levels and across all areas of mutual concern, as well as building the scope of tentative FTA negotiations between the two sides, the Vietnamese trade official noted.

Most notably, European businesses still want the EU to negotiate an FTA with ASEAN as opposed to bilateral FTAs between the EU and various ASEAN member states. Currently, the EU is conducting bilateral FTA negotiations with Indonesia and the Philippines.

The ASEAN - EU Business Summit represents an important annual event of the EU-ASEAN Business Council that aims to open a policy dialogue on issues that affect businesses and economies. This year’s conference is seeing the discussion of outstanding issues that ASEAN should primarily focus on promoting after the COVID-19 pandemic. Previous conferences have been held in Thailand, Indonesia, Vietnam, Cambodia, Malaysia, and the Philippines.         

Hanoi to join tourism development forum with HCM City, central provinces

A forum to link tourism development between Hanoi, the southern hub HCM City and the Central Key Economic Region is slated for November 27-28, announced the Hanoi Department of Tourism during a recent press conference.

The zone covers the four provinces of Thua Thien-Hue, Quang Nam, Quang Ngai, and Binh Dinh.

The forum, to be hosted by the central province of Quang Nam, marks a new development in the cooperation between leaders of the localities and tourism management agencies and associations, and travel firms. 

It will focus on State tourism management, human resources development, product development, and promotions.

A signing ceremony on tourism development agreements between authorities of Hanoi and HCM City, national flag carrier Vietnam Airlines and tourism associations of seven localities, and travel firms will take place at the forum.

Other activities include a business matching and an exhibition promoting famous tourist destinations, products and specialties of the localities.

Intra-regional development cooperation is viewed as an effective method to revitalise domestic tourism activities as the sector is bearing the brunt of the COVID-19 pandemic.

Hanoi welcomed 7.27 million visitors in the January-October period, down 68.9 percent from the same period last year, mainly due to the COVID-19 pandemic, according to the municipal Department of Tourism.

In 2019, around 29 million visitors came to the capital city, including more than 7 million foreigners.

As the resurgence of COVID-19 in Vietnam has been basically brought under control, the tourism sector in the capital city has been swiftly making plans to draw back visitors and gradually return to previous growth levels.

Many relic sites, places of interests, and entertainment venues in Hanoi have had a facelift and new services offered to meet visitors’ demand.

Entertainment venues are also revamping themselves to attract local visitors who are believed to be the best target in plans to recover the tourism sector at this point of time.

Local travel companies are also moving to encourage customers to travel again, as all air, train, and road routes to the central city of Da Nang, a major tourism centre and where the second COVID-19 outbreak started, have been resumed and many localities reopened places of interest.

Nguyen Cong Hoan, General Director of the Flamingo Redtours JSC, said that this time around, low prices are not the most attractive factor as travellers are seeking unique products that offer many different experiences.

Instead of promoting all of its tours, the company has selected the most outstanding autumn destinations for itineraries, such as the northwestern region with its blooming buckwheat flowers, the Central Highlands with its wild sunflowers, and the Mekong Delta region and its flood season.

It has also developed customised tours to suit the needs of particular groups of travellers, he noted, adding that the company expects that by proactively introducing new products, it can seize the opportunities a new tourism season presents.

According to the Hanoi Tourism Department, the successful containment of the second outbreak of COVID-19 has provided an opportunity for the local tourism sector to revive and thrive.

It has worked with the Hanoi Tourism Association, travel clubs, airlines, hotels, and destinations to discuss development solutions in the new context. It has asked tourism service providers and places of interest to diversify products, introduce travel demand stimulus, and re-organise their activities to improve efficiency.

At the same time, Hanoi will enhance COVID-19 preventive measures in public places, especially in bars and karaoke lounges.

No new local cases have been recorded in the capital for more than two months, yet the municipal health department said the risks of the virus are still high, especially as more international flights started to resume./.

PM urges garment, footwear sectors to build brands, promote supply chain linkages

Prime Minister Nguyen Xuan Phuc asked the garment-textile and footwear sectors to promote the building of Vietnamese brands and supply chain linkages, and develop supporting industries during a working session with the sectors’ representatives in Hanoi on November 23.

Hailing their achievements, he said that the textile-garment and footwear industries play an important role, employing a huge number of workers, up to 4.3 million. Their exports account for a large proportion of the total national export turnover. In 2019, these two industries exported products worth 62 billion USD, equivalent to 24 percent of the country's total.

He urged the sectors to make reforms to improve corporate governance efficiency in the new situation and promote digital transformation in the management and operation of textile enterprises, thus helping them make the effective use of free trade agreements, including the freshly signed Regional Comprehensive Economic Partnership (RCEP) Agreement.

The Government leader also noted the need for "green growth" in the development of the textile and garment industry, application of a circular economy, and continued automation to raise the labour value.

According to the Vietnam National Textile and Garment Group, Vietnam's textile and garment industry is forecast to earn about 33.5-34 billion USD from exports this year.

Firms at HCM City’s IPs seek innovative rooftop solar power solutions

A workshop titled “Innovative industrial and commercial solar rooftop PV power solutions for Vietnam” took place for the first time in HCM City on November 23.

The event was co-organised by the German development cooperation agency (GIZ) and the HCM City Export Processing Zones and Industrial Parks Authority Business Association (HBA).

HBA deputy chairman and general secretary Tran Thien Long said that firms operating in the city’s export processing zones and IPs are paying attention to rooftop solar PV power, which has gained impressive development in Vietnam in the recent past.

Echoing Long’s view, Sven Ernedal, Project Director of GIZ’s Renewable Energy and Energy Efficiency (4E), affirmed that the successful collaboration between GIZ and HBA will contribute to solar power growth and turn it into a trustworthy, budget-friendly and sustainable energy source for Vietnam’s commercial-industrial group.

In addition, he said that GIZ hopes to expand future cooperation with HBA in renewable energy in general, and innovative industrial and commercial solar rooftop PV power in particular.

A guiding document on innovative industrial and commercial rooftop solar PV power investment and EVNSOLAR, a rooftop solar power platform developed by Vietnam Electricity, were introduced at the event./.

Vietnamese, Israeli firms seek stronger partnership

Vietnamese businesses introduced their potential and strong export products in various fields to Israeli partners at a Vietnam-Israel consumer goods trade exchange that was held virtually on November 23.

Addressing the event, Ze’ev Lavie from the Federation of Israeli Chambers of Commerce (FICC) lauded the initiative of the Trade Office under the Vietnamese Embassy in Israel in holding the event, which provides a chance for Vietnamese and Israeli firms to foster connections amid the COVID-19 pandemic.

He briefed participants on the Israeli market and its high consumption power and liquidity, as well as the country’s business community.

He said that Israeli enterprises are interested in the Vietnamese market, a stable supplier of products, services and logistics to Israel in Asia.

Meanwhile, Vietnamese Ambassador to Israel Do Minh Hung highlighted Vietnam’s success in controlling the COVID-19 pandemic, international integration as well as the country’s business and investment environment and the prospect of concluding a bilateral free trade agreement in an early date.

Head of the Trade Promotion Agency Vu Ba Phu presented the strength of Vietnamese consumer products for export, while Vietnamese Trade Counselor in Israel Le Thai Hoa summarised the Vietnam-Israel trade relations, prospects for bilateral trade exchange as well as cooperation opportunities for the business communities of both sides in the future.

With a 9.3-million population, Israel is the third biggest export market of Vietnam in the Middle East region. It imports food, foodstuff, farm produce, footwear, garment and textile, mobile phones, coffee, cashew, frozen shrimp, tuna, and frozen squid from Vietnam, with an average annual turnover of about 800 million USD.

According to the General Department of Vietnam Customs, due to the COVID-19 impacts, in the first 10 months of this year, Vietnam earned only 574.21 million USD from exports to the Israeli market, of which 50 percent was from telephones and accessories.

The Southeast Asian country imported 717.06 million USD worth of products from Israel during the period, mostly computer, electronics and spare parts, and fertilizers.

Efforts to build a trademark for Quang Ninh shrimp

The northern province of Quang Ninh has outlaid enormous resources over recent years to develop its aquaculture sector, with advanced technologies now being applied.
 
Realising the market strength of white-legged shrimp, many local farmers have been applying Biosipec technology in three-phase white-leg shrimp aquaculture, to increase productivity and provide consumers with high quality, safe products.

As a tidal area with a lot of ponds, Quang Yen town has been focusing on solutions to develop fisheries in an effective and sustainable manner. It now has 6,500 ha, with the vast majority being shrimp. It produced 2,500 tonnes last year.

Quang Ninh has applied different practices in testing production models. Shrimp farming models following standards and schemes such as VietGAP, Biofloc, and three-phase aquaculture are spreading, with farms being developed in Quang Yen, Dam Ha, and Mong Cai that produce 8-10 tonnes per ha in each crop on average.

Over the next few months, Quang Ninh will focus on developing its fisheries sector, investing in and applying advanced technology to build a high-quality shrimp industry and develop the Quang Ninh shrimp brand./.

Firms at HCM City’s IPs seek innovative rooftop solar power solutions

A workshop titled “Innovative industrial and commercial solar rooftop PV power solutions for Vietnam” took place for the first time in HCM City on November 23.

The event was co-organised by the German development cooperation agency (GIZ) and the HCM City Export Processing Zones and Industrial Parks Authority Business Association (HBA).

HBA deputy chairman and general secretary Tran Thien Long said that firms operating in the city’s export processing zones and IPs are paying attention to rooftop solar PV power, which has gained impressive development in Vietnam in the recent past.

Echoing Long’s view, Sven Ernedal, Project Director of GIZ’s Renewable Energy and Energy Efficiency (4E), affirmed that the successful collaboration between GIZ and HBA will contribute to solar power growth and turn it into a trustworthy, budget-friendly and sustainable energy source for Vietnam’s commercial-industrial group.

In addition, he said that GIZ hopes to expand future cooperation with HBA in renewable energy in general, and innovative industrial and commercial solar rooftop PV power in particular.

A guiding document on innovative industrial and commercial rooftop solar PV power investment and EVNSOLAR, a rooftop solar power platform developed by Vietnam Electricity, were introduced at the event./

Russian exports to Vietnam up despite COVID-19

COVID-19 had no impact at all on Russian exports to Vietnam, according to Robert Kurilo, chief representative of the Russian Export Centre (REC) in Vietnam. 

Russia’s Sputnik news agency quoted Kurilo as saying that there was a significant increase in trade meetings between enterprises from the two countries this year, with a great number of contracts signed.

Of note, Tambov Bacon from Russia signed a contract worth 4 million USD to supply pork to Vietnam, while the company owning the “Mamrukovskoe” sunflower oil signed a contract worth 3 million USD and the Garant Company, which provides canned meat products, signed a 2 million USD deal with Vietnamese partners.

A number of Russian companies are also negotiating to supply other goods to Vietnam, including baby food and natural juice.

Sputnik said Vietnamese importers have shown an interest not only in food.

Through the REC, Russia signed a three-year contract to export a batch of dolls worth nearly 1.5 million USD to Vietnam, which have already appeared in stores of Vietnam’s largest bookstore chain, FAHASA. 

According to Kurilo, Russia has received requests to provide maternal and child cosmetics, materials for animal feed production, and birch plywood for Vietnamese furniture manufacturers.

The two countries are also discussing a number of information technology projects related to the implementation of a “smart city” programme from Russia in Vietnam.

The REC is working to provide financial and non-financial support to Russia’s non-military, non-resource, and non-energy exports.

Nearly 200 companies to join international agriculture fair in December

Nearly 200 businesses will promote their products in booths at the upcoming 2020 Vietnam International Agriculture Fair (AgroViet 2020), heard a press conference in Hanoi on November 23.

The 20th edition of the annual fair honours the achievements of the agricultural sector in global integration and the two decades of the fair being held, Director of the Trade Promotion Centre for Agriculture (Agritrade) Dao Van Ho said.

It aims to boost the consumption of agro-forestry-fishery products, help companies access hi-tech agricultural development, bolster trade and expand cooperation, and improve products in keeping with consumer demand.

An event to introduce varieties of oranges and products meeting the criteria of the “One Commune, One Product” programme in the northern mountainous province of Ha Giang will be also be held within the framework of this fair, according to the press conference.

AgroViet 2020 is to take place from December 3 to 6 on Hoang Quoc Viet Street in Cau Giay district.

Last year’s holding also drew about 200 domestic and international businesses.

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