Stephan Ulrich, SCORE Regional Programme Manager  speaks at the conference

The effective handling by the Vietnamese Government of the COVID-19 crisis has created a very big opportunity for local suppliers to attract more businesses and investment from other countries, thus entering the global supply chain, according to an ILO expert.

The Vietnamese industry could operate quite normally for many months in comparison with other countries where they apply longer lockdown amid the COVID-19 pandemic, and this makes Vietnam become quite famous for good handling of the sitation. It also helps the domestic companies keep producing, said Stephan Ulrich, Regional Programme Manager of the Sustaining Competitive and Responsible Enterprises (SCORE) Programme of the International Labour Organisation (ILO).

“I think that Vietnam’s successful handling of the COVID-19 crisis has shown to many international buyers looking for places to produce or suppliers that Vietnam is really a place to do business,” he said in an interview with the Vietnam News Agency on the sidelines of the Business Matchmaking Conference for Automotive, Electronics, Mechanical Industry 2020 in Hanoi on November 25.

The expert spoke highly of Vietnam’s investment climate and workforce, which are important factors for attracting international manufacturers and for export.

“From the eye of ILO, I believe good work conditions are more important for entering key markets."

He also suggests Vietnamese enterprises update modern technology and improve production quality and speed of delivery, while investing in quality staff, implementing and producing consistent quality products to take full advantages of the opportunity to enter the global supply chain.

The conference was jointly held by the Industrial Development Centre under the Vietnam Industry Agency of the Ministry of Industry and Trade, the ILO and the World Bank, with the participation of over 100 Vietnamese suppliers in the automotive, electronic and mechanical industry. The event aims to connect domestic small- and medium-sized manufacturers with multinational groups, thus enhancing opportunities for them to become the groups’ suppliers.

Representatives from the automotive groups Honda Vietnam and Toyota, and the electronic manufacturer Samsung shared the groups' localisation strategies and training programmes targeted capable Vietnamese suppliers, faciliting their approach to the groups’ supply chain.

They also put forth recommendations for the Government in terms of policy-making and offering incentives to encourage and increase the localisation rate among international groups in Vietnam.

Petrol prices rise in latest adjustment

Retail petrol prices rose from 3.30 pm on November 26 following the latest review by the Ministry of Industry and Trade and the Ministry of Finance.

The price of E5 RON92 biofuel increased by 609 VND to a maximum of 14,494 VND (0.63 USD) per litre and RON95-III by 650 VND to no more than 15,351 VND per litre.

Diesel 0.05S and kerosene, meanwhile, now sell at no more than 11,434 VND and 10,138 VND per litre, up 596 VND and 576 VND per litre, respectively.

The price of Mazut 180CST 3.5S is now no more than 11,742 VND per kg, an increase of 651 VND.

According to the two ministries, the prices of petrol and oil in the global market have been rising strongly for 15 days, hence the up adjustment.

They review fuel prices every 15 days to ensure domestic prices are in keeping with the global market./.

Chinese trade fair to take place in HCM City next month

The Zhejiang Export Fair will be held in HCM City from December 3-5, showcasing the best products from the Chinese province.

Taking place at the Saigon Exhibition and Convention Centre (SECC), the fair, themed “Zhejiang Made-all need”, will feature 100 booths of well-known businesses, including Alibaba, the global e-commerce ground founded in 1999 by billionaire Jack Ma.

This year's event will see both at-site and remote booths for the first time so foreign businesses can participate in the event, ensuring safe trade connection between enterprises during the COVID-19 pandemic.

It is expected to offer an opportunity for businesses to seek partnerships, thus boosting economic and trade relations between Zhejiang province and Vietnam.

During the fair Alibaba will hold a separate workshop themed 'Post-COVID 19 - Grasping the global opportunities with Alibaba.com' on December 4, creating opportunities to interact with leading e-commerce speakers.

The workshop will help Vietnamese exporters who want to expand beyond borders, the organiser said.

Zhejiang is a coastal province located in southeast China. It has posted rapid economic growth in recent years and boasts economic relations with more than 230 countries and territories around the world.

In 2019, the province's import and export turnover reached 468 billion USD, up 8.1 percent over the same period the year before. Although Zhejiang has been heavily impacted by COVID-19, from January to July, its total import and export value reached 257.2 billion USD, up 2.3 percent year-on-year.

In the first half of this year, Zhejiang's imports and exports to ASEAN increased by 16.31 percent, of which imports from ASEAN increased by 17.19 percent, and exports to ASEAN rose by 15.85 percent.

The three-day fair, organised by the Vietnam National Trade Fair & Advertising Company (Vinexad) and the Department of Commerce of Zhejiang province, is expected to attract 6,000 visitors./.

Tripod strategy crucial to economic recovery in 2021: experts

Institutional reform, deeper integration and digital transformation are important for Vietnam to recover the economy, which has been battered by the COVID-19 pandemic, President of Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said on November 24.

In his opening remarks at the Vietnam Business Forum 2021, Loc laid stress on the gloomy outlook for the global economy due to the pandemic. However, the Asian Development Bank forecasts the Vietnamese economy would grow 2.8 percent in 2020, and 6.3 percent in 2021.

The bank said in its Asian Development Outlook 2020 that Vietnam is showing its better recovery ability as compared to similar economies, giving positive prospect for the Vietnamese economy in mid- and long-term.

However, Loc said Vietnam has not overcome challenges yet, as businesses have not made recovery from the outbreak and millions of workers have been unemployed.

He spoke highly of the Party and Government’s first support package, which gave timely and effective assistance to the economy, recommending the second one focus on potential sectors such as aviation and tourism.

Along with fiscal and credit support, the Government’s efforts to renew institutions, remove bottlenecks for the market, and better business climate are key motivation for the development of local businesses, he stressed.

He also described regional and international integration, and digital transformation as fulcrum for the country’s economic growth.

Meanwhile, Trinh Minh Anh, a representative from the National Steering Committee for International Integration, said as Vietnam and many other nations are facing a tough time with the rising tide of protectionism and populism, the nation should enhance international integration, and capitalise on the signed new-generation trade pacts such as CPTPP, EVFTA and RCEP.

Touching on post-pandemic business trend, Vu Tu Thanh from the US-ASEAN Business Council said doing business via digital platforms is a great opportunity that Vietnam should fully tap.

He added Vietnam’s digital economy is expected to reach 14 billion USD in 2020, a year-on-year surge of 16 percent despite the pandemic, and the value is forecast to reach 50 billion USD in the next five years.

According to Vice Chairman of the Hanoi Supporting Industries Business Association Nguyen Van, the Government should create rational strategies and policies to help local firms better engage in the global value chain.

Businesses get access to non-interest loan package

Forty businesses have received money from the Government’s non-interest loan package of VND62 trillion (US$2.7 billion) to pay salaries to nearly 1,200 employees who have stopped working due to the serious impacts caused by the COVID-19 pandemic.

The firms have received more than VND6 billion in total from the Vietnam Bank for Social Policies, making them the first businesses to avail of the package.

The bank was assigned to disburse the Government’s loan package for employers to pay salaries for workers in May, however, it had failed to do so due to the strict conditions.

To help businesses access the loans, the bank recently simplified conditions to make employers eligible for a loan when their employees, who hold social insurance cards, must stop work for at least one consecutive month from April 1, 2020, to December 31, 2020.

The businesses’ revenue in the first quarter of this year decreased by 20 per cent compared with the fourth quarter of the last year.

The loan term is negotiated by the bank and employers, with a maximum of 12 months. The overdue debt interest rate is 12 per cent per year.

Customers are not required to provide loan guarantees.

Nationwide branches of the Vietnam Bank for Social Policies have been working with customers to complete procedures for disbursement. The disbursement will be carried out on January 31, 2021.

The VND62 trillion package is the first of its kind the Government has offered to support people affected by the COVID-19 pandemic.

The Ministry of Labour Invalids and Social Affairs (MoLISA) recently proposed the Government provide a second package of VND18.6 trillion to help businesses develop production and business, and employees to borrow preferential loans to restore and maintain jobs.

Beneficiaries include small- and medium-sized enterprises, co-operatives and business households, with priority given to small and micro enterprises (less than 10 employees), co-operatives, household businesses and workers in rural areas.

The estimated loan amount for production and business establishments is VND2 billion, and VND100 million for workers. The zero interest rate will be for 12 months.

Nguyen Thi Lan Huong, the former Director of the MoLISA’s Institute of Labour Science and Social Affairs, told VnEconomy online newspaper that the targets and beneficiaries must be defined clearly in the second package.

“The most important thing is that all the victims of the COVID-19 pandemic will access the policy," she said.

“The struggling enterprises will be confirmed by the enterprise-based localities’ authorities, while the struggling workers will be confirmed by authorities of their working places,” Huong said.

She said the policies of the second package needed to be fulfilled so all people who were missed in the first package must be included in this one.

“This is a package of support, not investment. The goal of the relief during this difficult period is to ensure minimum conditions to save workers and businesses,” she added.

The third-quarter macroeconomic report of the Institute for Economic Research and Policy (VEPR) showed the policy of directly supporting employees had not shown effectiveness in practice. As of mid-August, only more than 16 million people from different groups of workers received support from the first package, with VND17 trillion disbursed, accounting for 19 per cent of people in need. 

Nine bidders register to buy IDC shares from construction ministry

Nine bidders have registered to participate in auctions of 108 million shares of the Viet Nam Urban and Industrial Zone Development Investment Corporation (IDICO), listed on HNX under the code IDC.

The information was announced by the Ho Chi Minh City Stock Exchange (HoSE) on Tuesday.

The 108 million IDC shares are offered by the Ministry of Construction, equivalent to 36 per cent of IDC’s charter capital.

HoSE said the nine bidders had registered to buy 126 million shares, 17 per cent higher than the offering volume. Of them, eight individual investors registered to buy 93.6 million shares, the other institutional investor wanted to buy 32.4 million shares.

As scheduled, the IDC divestment auction will be held on November 27 at HoSE. The starting price is VND26,930 per share (US$1.16), thus the minimum amount collected by the construction ministry will be over VND2.9 trillion.

In the first nine months of 2020, IDC recorded revenue of VND3.36 trillion, after-tax profit of VND307 billion, down by 6 per cent and 28 per cent, respectively over the same period last year.

However, with this result, the company still exceeded four times the revenue target of 2020 and fulfilled nearly 20 per cent of the profit plan.

IDC's total assets as of September 30, 2020 reached over VND14.3 trillion, a slight decrease compared to the beginning of the year. Short-term assets were VND3.25 trillion.

Liabilities of the company as of September 30, 2020 reached VND9.94 trillion, of which short-term debt was VND1.4 trillion, the rest was long-term debt.

Long-term unearned revenue accounted for 70 per cent of long-term debt, reaching over VND6 trillion, mainly sourced from the land rental received from the industrial zones.

IDC closed Tuesday at VND28,600 per share. Average matched volume in the last 10 sessions reached 105,000 units. 

Construction ministry to auction entire stake in Hancorp

The Ministry of Construction plans to auction its entire holding of 139 million shares in the Hanoi Construction Corporation – JSC (Hancorp) on the Ha Noi Stock Exchange (HNX), the bourse announced on Monday.

The shares, coded HAN on the Unlisted Public Company Market (UPCoM), will be sold at a starting price of VND19,930 (US$0.86) per share. They are equivalent to 98.83 per cent of the company's charter capital.

The auction is scheduled to take place on December 16.

Hancorp is a State-owned enterprise under the Ministry of Construction and was established in December 1982.

In March 2014, the company conducted an initial public offering and held its first shareholder meeting in July 2014.

It officially operated as a joint-stock company from August 2014 with the capital charter of more than VND1.41 trillion. Since equitisation and operating as a joint-stock company, Hancorp has not increased its charter capital.

In the initial offering, the Ministry of Construction auctioned 49.74 million Hancorp shares with a starting price of VND10,200 per share.

However, the IPO failed as 203 investors participated in the auction but the volume of shares they registered to buy was only 1.58 million shares, earning some VND16 billion.

The Ministry of Construction is now the largest shareholder of Hancorp, holding 98.83 per cent of the company's charter capital.

Hancorp brought more than 141 million shares to trade on the Unlisted Public Company Market (UPCoM) since October 2016 with the reference price on the first trading day of VND12,500 per share.

The liquidity of HAN shares remained low in the past year. Stock prices sometimes plummeted to VND6,000 per share. However, from the beginning of November until now, HAN prices suddenly increased sharply, reaching VND18,000 as at present.

The initial auction price of VND19,930 per share is 11 per cent higher than the current market price of HAN shares. 

A constellation of benevolent factors for M&A activity

The newly-approved revisions to the laws on Enterprises, Investment, and Public-Private Partnership Investment heavy with reforms, as well as the signing of the Regional Comprehensive Economic Partnership (RCEP) have all been ushering in new opportunities for M&A transactions in Vietnam this year.

This was shared by Deputy Minister of Planning and Investment Tran Quoc Phuong at the Vietnam M&A Forum 2020 themed “Upsurging in the new normal”.

Mergers and acquisitions (M&A) have become an effective capital mobilisation channel, he added, helping to diversify investment sources for the Vietnamese economy, accelerate economic restructuring and the renewal of the growth model, and bring variety to the types of business ownership. M&A has become the shortest way for foreign companies to penetrate and enlarge their footprint in the Vietnamese market, with high efficiency and reasonable costs. The Vietnamese M&A market has reported robust growth with thousands of transactions worth nearly $50 billion over the past decade.

However, the unforeseen and unpredictable COVID-19 pandemic raging across the globe has caused massive disruptions to worldwide foreign investment and trade flows, pulling the value of M&A deals in Vietnam in 2020 down to an estimated $3.5 billion, representing 48.6 per cent of the figure in 2019.

Meanwhile, according to forecasts by UK-based independent market research organisation Euromonitor International, Vietnam is one of the world’s most dynamic and potential M&A markets, with the country’s M&A investment index projected at 102 points in 2020, only second to the United States (108.9 points). The Deputy Minister added that M&A transactions are forecast to recover in Vietnam from mid-2021, with the market size returning to the normal $5 billion.

"More importantly, in 2020, a year of impressive success, Vietnam has basically achieved the 'dual goals' of curbing the COVID-19 pandemic and maintaining macroeconomic stability along with social security," the deputy minister added. "The International Monetary Fund predicted that Vietnam is the sole country to maintain positive economic growth among the ASEAN-5 countries this year. Vietnam’s inflation was kept under control while the monetary market basically remained stable and the stock market posted positive developments. These important results are highly appreciated by the international community, reinforcing the position of Vietnam as an attractive and safe investment destination for foreign investors."

In 2020, the Ministry of Planning and Investment (MPI) presided over the work of drafting and submitting to the government and the National Assembly for approval the revised Law on Enterprises, the Law on Investment, and the Law on Public-Private Partnership Investment with many procedural reforms for market entry, thus boosting investment and business activities, including M&A transactions.

"For the first time, the list of sectors and professions with limited access to the market for foreign investors will be enacted by the government under the principle that everything that is closed for investment will be prescribed in the law. This is an important reform, giving foreign investors the same access to the market as domestic investors in all sectors and professions that are not listed in the law," Deputy Minister Phuong said.

The deputy minister added, at the same time, the MPI is also completing the drafting a new strategy on attracting foreign direct investment with the aim of prioritising the attraction of high-tech projects and those backed by advanced and clean technologies, with modern governance, and likely to yield high added values, create spillover effects, ensure technology transfer, and committing to assisting Vietnamese enterprises in joining the production chains while also offering human resources training. The government has also set up a working group dedicated to promoting FDI inflows and calling for multinational corporations and giants to grasp investment opportunities in Vietnam in the new normal.

On November 15, 2020, the Regional Comprehensive Economic Partnership (RCEP) was inked, opening up a new market that accounts for nearly 30 per cent of the global population and 29.1 per cent of global GDP. Calculations have shown that the RCEP will be like an investment package worth up to $7.2 trillion with the rate of return of 4 per cent per year while helping to increase global trade by about 1.9 per cent. The RCEP pact and other free trade agreements such as the EU-Vietnam Free Trade Agreement or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will also serve as a tremendous impetus for boosting regional and global trade and investment liberalisation. This is especially significant as all trade and investment activities have been disrupted by the COVID-19 pandemic.

“These important elements are ushering in new opportunities for M&A transactions in Vietnam. I believe that we will see a flourishing M&A market in 2021 and the years to come, regardless of imminent difficulties and challenges,” Deputy Minister Phuong said.

“In anticipation of the 'upsurging in the new normal', businesses and investors should transform their thinking, take more drastic and effective action, step more lively to overcome difficulties, while turning challenges into opportunities, and making good use of the opportunities arising from the Fourth Industrial Revolution, as well as the global investment shift, and making greater efforts on mobilisation and efficient use of diverse resources. An appropriate M&A strategy would become a significant tool for businesses in the current context and in the years to come,” he said.

Building Mekong Delta regional plan in 2021-2030, vision to 2050

The conference on the Mekong Delta regional plan will be held this week in Can Tho city to discuss the development focus and direction for the region in 2021-2030 with a vision to 2050. 

On Thursday (November 26) in Can Tho city, the conference on the master plan of the Mekong Delta region will be held under the chairmanship of Minister of Planning and Investment Nguyen Chi Dung, and the participation of the leaders of ministries, agencies, and localities.

The conference will discuss the draft master plan and major issues which are key content in the long-term regional development strategy.

"This is the first regional master plan being built in the new method in line with the guideline in the Law on Planning. The comments, especially from regional localities will be particularly useful to build a master plan that can match all demands and desires of the people, and can resolve all obstacles during the development process, garnering widescale support," Deputy Minister of Planning and Investment Tran Quoc Phuong said at the press conference yesterday (November 23).

Moreover, 13 out of the 13 cities and provinces in the Mekong Delta region have already been assigned to build their own master plans. "So their comments on the regional master plan will also make sure synchronicity," Phuong added.

So far, the MPI has organised about 17 conferences, 12 official meetings with ministries, agencies, and Mekong Delta regional localities, as well as held numerous discussions with local and international experts.

Most agreed to promote agricultural development towards high quality, in combination with the promotion of services, eco-tourism, and the processing industry to enhance value and competitiveness. Infrastructure should be developed synchronously, disaster resistance and climate change adaption should be improved, while land and water resources should be exploited reasonably.

Some of the key contents awaiting comments are the role and position of Mekong Deltaregion in the general national master plan; how to draw up sub-regions; the reduction of cultivation land area; the development of seafood; the development of some focal points; and the direction of urban development.

Previously, the Ministry of Planning and Investment (MPI) was approved by the government to build the planning of the Mekong Delta region in 2021-2030 with a vision to 2050 in Decision No.1163/QD-TTg dated July 31.

Thus, the MPI collaborates with a consultancy from the Netherlands to assess factors like natural conditions, resources, socioeconomic situation, as well as pointing out some views on targets and directions for regional development priorities.

Mekong Deltaregion is the coastal area in the lower Mekong River, one of the wealthiest plains, covering 13 cities and provinces, with a population of 17.3 million (20 per cent of the country's population) and area of 40,500sq.km (capturing 12 per cent of the country's area). This region is rich in rivers, channels, canals, and features a diverse, unique culture. However, the Mekong Delta region is also facing a lot of challenges caused by climate change, rising sea levels, and other obstacles to socioeconomic development like floods, droughts, and salinisation.

Cargo handled by seaports rises 5% in 11 months

The volume of cargo moving through Vietnamese seaports in the first 11 months of this year is estimated to have reached 630 million tonnes, an increase of 5% over the same period last year despite the COVID-19 pandemic.

According to the Vietnam Maritime Administration, the total includes 20 million TEUs of container throughput, a rise of 12% over the same period in 2019.

However, in November alone, the volume of cargo transported through seaports is estimated to have been over 57.2 million tonnes, down 3% over the corresponding period last year, including over 1.8 million TEUs of container throughput, down 5%.

November is the second consecutive month that cargo shipped through seaports has declined. The volume of cargo through seaports in October was posted at 57.6 million tonnes, down 2%, including 1.8 million TEUs of container throughput, down 1% compared to the same period last year.

The decrease in volume of cleared goods is mainly attributable to the impact of the COVID-19 pandemic, according to the Vietnam Maritime Administration.

Several seaports saw high increases in the volume of handled cargo including seaports in Quang Tri, Quang Ngai, Can Tho, My Tho, Nam Dinh, Thanh Hoa and Thai Binh.

However, the number of passengers through seaports in the first 10 months of this year fell sharply by 25% over the same period in 2019.

Vietnam remains world leading exporter of cashew nuts

Despite serious impacts from the COVID-19 pandemic, Vietnam exported over 422,000 tonnes of cashew kernels in the first 10 months of this year, up 12% over the same period in 2019, meeting 94% of the set plan for 2020.

According to Vinacas, after the establishment of Vinacas in 1990, Vietnam began to export cashew kernels with a volume of 286 tonnes, worth US$1.4 million. In 2004, Vietnam exported more than 105,000 tonnes of cashew kernels worth approximately US$436 million.

Vietnam surpassed India for the first time in 2006 to become the world leading exporter of cashew kernels, with an export volume of 127,000 tonnes worth US$504 million.

Since 2017, Vietnam has become the number one hub of cashew processing and export in the world, accounting for over 50% of processed raw cashews in the world.

Vietnam expects to export 450,000 tonnes of cashew kernels in the whole of 2020 with a total value of US$3.28 billion.

According to Chairman of Vinacas Pham Van Cong, the biggest advantage of the Vietnamese cashew industry is the world's most advanced processing technology produced by Vietnamese people which has been constantly improved and innovated, helping boost the impressive growth of the Vietnamese cashew industry.

Although standing as the world’s leading cashew exporter, Vietnam is only known for its No. 1 position in preliminarily processed cashews with low prices while almost all cashew enterprises are small and micro enterprises.

RCEP helps Vietnam in accelerating absorption of investment

Along with other ASEAN members, Vietnam has a great opportunity to become a centre of foreign investment, especially in terms of investment from other countries in the Regional Comprehensive Economic Partnership (RCEP).

RCEP was finally signed after eight years of negotiation. Although time is still needed for the 15 members, including 10 ASEAN members and five partners (namely China, Japan, the Republic of Korea, Australia and New Zealand) in order to approve the deal, evaluations about the impact of RCEP on the Vietnamese economy have been proven multiple times.

Moreover, the Minister of Industry and Trade, Tran Tuan Anh also mentioned “timing, harmony, convenience” as RCEP has been signed at a time when the world is positioning and reorganising its supply chains, with other investment activities are tending to shift.

In fact, commitments regarding market opening and tax reduction in RCEP are not that different. With RCEP, Vietnam has no commitments going beyond that of the framework of the existing free trade agreements with other partners, especially between ASEAN and its partners.

However, regulations on the harmonisation regarding the origin of goods procedures in RCEP will bring considerable advantages to Vietnam, whose economy relies heavily on imported material. Vietnam is seeing a large trade deficit with the Republic of Korea and China on the importation of raw materials for export production and is always “being stonewalled” about the origin of goods while exporting its goods to many major markets around the world.

For RCEP, Vietnamese enterprises can get access to materials more easily from member countries in order to manufacture exports. For instance, electronic chips can be imported from Japan and the Republic of Korea while textile and leather materials can be imported from China for domestic production and then exported to other countries, simultaneously satisfying intra-bloc rules of origin in order to optimise the preferential tariff.

Not only in Vietnam, foreign experts also agree that RCEP is a favourable opportunity for all countries to restructure and reposition their supply chains and join the global value chain. With RCEP, ASEAN is expected to become the heart of the global value chain. Should it happen as such, the opportunities for Vietnam are huge.

“Vietnam has a chance to reshape and better utilise its new positions, thereby building up a strong position on the map of global supply chains,” said Minister Tran Tuan Anh.

Following that, undoubtedly, will come an opportunity to attract investment. “RCEP can help Vietnamese companies widen their market, join regional chains of supply and attract foreign investment,” said Tim Evans, CEO of HSBC.

Most of the remaining 14 members of RCEP are major investment partners of Vietnam. Noticeably, six RCEP partners are listed among the 10 nations and territories having the great level of investment in Vietnam. The greatest partner is the Republic of Korea (US$70.38 billion), followed by Japan (US$59.89 billion), Singapore (US$55.7 billion), China (US$18 billion), Malaysia (US$12.8 billion), and Thailand (US$12.5 billion).

Even without RCEP, foreign investment from these countries is still pouring into Vietnam, especially as Vietnam is currently the focus of foreign investors, with investment flows shifting due to the COVID-19 period.

However, according to Professor-Doctor Nguyen Mai, President of Vietnam’s Association of Foreign Invested Enterprises, RCEP will help Vietnam “widen” the room for investment and trade in the long term, particularly in the context of the COVID-19 pandemic.

Currently, China, Japan, the Republic of Korea, and even Singapore, Thailand, and Malaysia are accelerating investment abroad so as to expand their production and supply chains. Vietnam, according to the Minister of Planning and Investment Nguyen Chi Dung, is a safe and attractive destination. Opportunities in accelerating the absorption of foreign investment from RCEP member countries will be greater for Vietnam, especially as Vietnam is building many exceptional policies and mechanisms to receive the shifting investment inflows.

But with RCEP, the focus does not simply lie in capital investment between RCEP members. The prosperity and large market scale of the intra-RCEP bloc will also make this region become the focus of global investors.

When proposing negotiations on the RCEP, ASEAN member countries also hope to devise a favourable environment for connecting economies, design opportunity for enhancing production capacity towards building ASEAN into a dynamic economic region, unique in the field of production and market.

“Along with other ASEAN members, Vietnam has a great opportunity to become a hub of foreign investment, especially from countries in RCEP,” said Minister Tran Tuan Anh.

Currently, China, despite the COVID-19 pandemic and going against the shifting tendencies of investment, is still a compelling market for foreign capital investment. Instead of a downward trend like many other countries, including Vietnam, foreign investment into China still witnessed a slight increase over the last few months. This signals a more intensive race in absorbing foreign investment over the coming years.

Even the Foreign Investment Agency (Ministry of Planning and Investment) admits that it is not easy for foreign investors to leave the Chinese market. Meanwhile, Thailand, Indonesia, Malaysia, and others are increasing measures to welcome the shifting capital investment. Thus, in order to accelerate the absorption of investment from RCEP and other potential partners, Vietnam also needs to speed up improvements in its investment environment while proposing appealing policies to welcome the new investment flows.

Finance ministry proposes extending car registration fee cut by six months

The Ministry of Finance has written to the prime minister proposing extending the reduction in the registration fee for locally assembled or manufactured cars by six months to support auto firms with the post-Covid-19 recovery and local buyers affected by Covid-19.

Many sectors in Vietnam, including auto manufacturing, are still being affected by the ongoing global coronavirus pandemic, according to the ministry.

Statistics from the Vietnam Automobile Manufacturers Association indicated that between January and October, automobile sales dipped by 18% year-on-year. Sales of locally-assembled cars fell by 12%, while the number of imported cars sold dropped by 26% year-on-year.

Over the past few months, auto consumption in the local market has gradually rebounded, but has failed to make up for the decline in car sales in the first half of 2020. Car inventories have been higher than those seen during the same period last year.

If the ministry’s proposal as a way to stimulate auto consumption gets the nod from the prime minister and other ministries, car buyers will enjoy the 50% cut in car registration fees until June 2021, Thanh Nien Online reported.

Earlier in late June, Prime Minister Nguyen Xuan Phuc approved a plan to reduce registration fees for locally assembled or manufactured cars by 50% until the end of the year, aimed at boosting domestic consumption.

Optimal conditions given to venture investors: Deputy PM

The Government welcomes and will create optimal conditions for venture investors to operate in Vietnam, stated Deputy Prime Minister Vu Duc Dam at the second Vietnam Venture Summit 2020 (VVS) in Hanoi on November 25.

The official noted that after a year with strong rise in the funding of startup in Vietnam at 800 million USD in 2019, this year the funding is likely to reach only 200 million USD.

However, the startup community of Vietnam has seen progress as many startups have been placed in the same position with their foreign peers in providing services in many areas such as transportation and e-commerce, he said.

Citing Vietnam’s success in controlling the COVID-19 pandemic with a modest healthcare system and technology, Dam questioned the startup community on their willingness and capacity to do the same.

He held that many startups, despite their lower technology compared to their foreign rivals, have managed to rise to the world by becoming more practical, developing new business models with new operation methods.

From the experience in combating the pandemic, he stressed that the community strength is significant, especially in a world with unpredictable changes.

The Government’s efforts and the joining hands of the community will help build a database that is helpful for business community, including startups, the official stated.

He also advised domestic startups to become more confident and foster their linkage to made bigger steps forwards, creating new motivations for the faster and more sustainable growth of the nation./.

Conference seeks to further promote Vietnam-Japan cooperation

A conference themed “Meet Japan 2020” was held in Hanoi on November 25 by the Ministry of Foreign Affairs and the Japanese Embassy in Vietnam.

The event aims to help Vietnamese local authorities and businesses to directly connect and promote cooperation with Japanese partners in the fields of investment, trade, agriculture, digital transformation, smart city development, local cooperation, human resources, and education - training.

It was attended by over 1,000 delegates, including 800 representatives of businesses in Japan who registered to follow the conference via the website of the Japan Trade Promotion Organisation (JETRO).

In his opening speech, Permanent Deputy Foreign Minister Bui Thanh Son highlighted the fruitful development of the Vietnam - Japan extensive strategic partnership, saying that economics, trade and investment are the bright spots in the bilateral cooperation.

Son affirmed the Vietnam - Japan cooperation in general and the cooperation between the two countries’ localities in particular still has a lot of room for stronger development.

Vietnam will continue to improve its institutions and policies in order to raise the quality and efficiency of foreign investment cooperation, he said.

For his part, Japanese Ambassador to Vietnam Yamada Takio expressed his desire to accompany leaders of provinces and cities of Vietnam to promote friendly and cooperative relations, serving socio-economic development and attracting more and more Japanese companies to invest and do business in Vietnam.

The diplomat said he hopes the event will contribute to restoring exchange activities between localities of the two countries in the time to come.

Participants focused their discussion on directions and priorities for future cooperation between the two sides, reviewed cooperation results and shared experiences as well as problems that need to be solved./.

Digitalisation to give motivation for enterprises’ development: Deputy PM

The Vietnam Venture Summit 2020, the second event of its kind, got underway in Hanoi on November 25, providing a dialogue platform between the Vietnamese Government and major international venture funds.

Themed "Going Digital", the summit attracted the participation of 1,000 delegates, including leaders of various ministries, universities, and research institutes across the country, along with approximately 50 foreign speakers.

Addressing the event, Deputy Prime Minister Vu Duc Dam said Vietnam has boosted the application of digital economy. The collective contributions made by the entire business community will serve to create synchronisation, while digitisation will give motivation to foster business development.

Dam expressed his belief that the implementation of a digital transformation programme for agencies, businesses, and communities will bring about an array of positive benefits for the local economy, thereby helping the country develop faster and in a more sustainable manner.

During the event, Minister of Planning and Investment Nguyen Chi Dung stated that the Vietnam Venture Summit is of great significance in motivating businesses develop and innovate, as well as in seeking solutions and opportunities for the Vietnamese innovation ecosystem to better integrate into the global market.

The summit also helps to link investors with startups and innovators who have devised unique ideas. Through the occasion, with the support of various ministries, departments, sectors, domestic, and foreign experts, innovative enterprises will find new directions and reach success moving forward.

It is the time now for Vietnam to focus on promoting its innovative capacity, he said, adding that sci-tech, and innovation will represent a pillar for the nation to boost its rapid and sustainable socio-economic development.

There were numerous activities to connect innovative businesses, such as Startup-Pitching and Business-Matching within the summit’s framework.

To boost the spirit of entrepreneurship and innovation, Vietnam Venture Summit was first launched in 2019 with the support of the Ministry of Planning and Investment and Golden Gate Ventures. The summit became the country’s first ecosystem event that involved key stakeholders, such as policy-makers, global investors, founders, and corporates from across the region./.

Government leader meets national brand enterprises

Prime Minister Nguyen Xuan Phuc hosted a reception in Hanoi on November 25 for representatives from 124 enterprises which are honoured with Vietnam National Brand this year.

According to statistics, these companies’ combined revenues and export turnover hit 1.4 quadrillion VND (60.5 billion USD) and 137 trillion VND last year, respectively. They contributed over 200 trillion VND to the State budget, and created jobs for over 471,000 labourers.

Minister of Industry and Trade Tran Tuan Anh said that after nine months of selection, 124 companies were selected from more than 1,000 enterprises to get the Vietnam National Brand title in 2020, 27 higher than in 2019.

Speaking at the event, PM Phuc said that despite impact of the COVID-19 pandemic and natural disasters, Vietnam maintains social stability and positive economic growth this year at around 2.5-3 percent.

The achievement is contributed partly by the enterprises with the national brand, he stressed.

He asked the Ministry of Industry and Trade and businesses to find more effective measures to create the larger output, better quality and bigger contribution to the nation.

Ministries, sectors and localities were requested to work to build the brand of the nation, each sector and each locality, as well as creating favourable conditions for businesses.

The Government will issue new policies and more favourable mechanisms, and pay more attention to all types of enterprises, especially those with small and medium sizes to help them soon get the national brand title, the Government leader pledged.

Conference seeks to further promote Vietnam-Japan cooperation

A conference themed “Meet Japan 2020” was held in Hanoi on November 25 by the Ministry of Foreign Affairs and the Japanese Embassy in Vietnam.

The event aims to help Vietnamese local authorities and businesses to directly connect and promote cooperation with Japanese partners in the fields of investment, trade, agriculture, digital transformation, smart city development, local cooperation, human resources, and education - training.

It was attended by over 1,000 delegates, including 800 representatives of businesses in Japan who registered to follow the conference via the website of the Japan Trade Promotion Organisation (JETRO).

In his opening speech, Permanent Deputy Foreign Minister Bui Thanh Son highlighted the fruitful development of the Vietnam - Japan extensive strategic partnership, saying that economics, trade and investment are the bright spots in the bilateral cooperation.

Son affirmed the Vietnam - Japan cooperation in general and the cooperation between the two countries’ localities in particular still has a lot of room for stronger development.

Vietnam will continue to improve its institutions and policies in order to raise the quality and efficiency of foreign investment cooperation, he said.

For his part, Japanese Ambassador to Vietnam Yamada Takio expressed his desire to accompany leaders of provinces and cities of Vietnam to promote friendly and cooperative relations, serving socio-economic development and attracting more and more Japanese companies to invest and do business in Vietnam.

The diplomat said he hopes the event will contribute to restoring exchange activities between localities of the two countries in the time to come.

Participants focused their discussion on directions and priorities for future cooperation between the two sides, reviewed cooperation results and shared experiences as well as problems that need to be solved.

Vietnam’s best logistics firms in 2020 announced

The lists of the most reputable players in Vietnam’s logistics sector this year were released by the Vietnam Report JSC on November 24.

The lists cover several sub-sectors, such as international forwarding, warehouse services, and third- and fourth-party logistics; freight transport; port operations; and rapid delivery and last-mile delivery.

The top 10 businesses in international forwarding, warehouse services, and third- and fourth-party logistics are the Gemadept JSC, the Indo Tran Logistics Corporation, the DHL Global Forwarding (Vietnam) Corporation, the Transimex JSC, the Expeditors Vietnam Co. Ltd, the Schenker Vietnam Co. Ltd, the Kuehne Nagel Co. Ltd, the Bee Logistics JSC, the South Logistics JSC, and the Vinafreight JSC.

The rankings were compiled based on companies’ financial capacity, as reflected in their financial reports; media reputation, as assessed by media coding methods that encode articles about companies on influential media channels; and interviews with relevant parties conducted in October and November.

Vietnam Report General Director Vu Dang Vinh said that after decades of globalisation, the world is now more inter-connected than ever, opening up huge opportunities for global trade and promoting the development of supply chains.

However, he also noted that greater connectivity poses problems in supply chains in general and the logistics sector, the backbone of supply chains, in particular, when sudden shocks like COVID-19 strike.

The Vietnam Logistics Business Association reported that, in March, 15 percent of logistics companies posted a year-on-year revenue decline of 50 percent, and over half of all companies experienced a decline of 10-30 percent in the number of domestic and international logistics services provided compared to the same period last year.

The containment of COVID-19 helped Vietnamese businesses, including logistics companies, resume activities fairly quickly. A Vietnam Report survey shows that the operational capacity of 87 percent of interviewed companies in October and November was equivalent to 60 percent of pre-pandemic levels./.

ASEAN Federation of Engineering Organisations convenes 38th conference

The 38th Conference of the ASEAN Federation of Engineering Organisations (CAFEO), with the theme “Fostering initiatives and actions by AFEO to build a sustainable and prosperous ASEAN Community”, opened online on November 25.

In his address, Vietnamese Deputy Prime Minister Vu Duc Dam said that in response to security issues such as diseases, natural disasters, and cyber-crime, ASEAN must focus on boosting its members’ capacity in terms of technical infrastructure and human resources.

Engineers and technicians have made significant contributions to the region’s economy, infrastructure, and scientific and technological development in recent years.

He hoped the conference will identify solutions and make recommendations that are helpful to AFEO member organisations and the governments of ASEAN nations.

The Vietnamese Government will continue creating the most favourable conditions possible for local and regional engineers and technicians to engage in cooperation programmes and initiatives of AFEO and ASEAN member nations, the Deputy PM said.

According to Nghiem Vu Khai, Vice President of the Vietnam Union of Science and Technology Associations and head of the conference’s organising board, the gathering aims to confirm the commitments of the AFEO in realising the ASEAN Community’s vision toward 2025 and the UN’s 2030 agenda on sustainable development, via strengthening the role of engineers in meeting sustainable development goals, initiating high-quality technical cooperation schemes, and promoting the use of digital technology in order to build a connected, fair, and prosperous ASEAN Community.

Hosted by Vietnam, the conference features workshops on topics such as transportation, environmental engineering, disaster response, the role of engineers in ASEAN’s sustainable development, and the role of ASEAN’s female engineers amid challenges brought about by COVID-19.

A ceremony was held to present titles to individuals who have shown great dedication to the engineering field and certificates to professional engineers from across the bloc.

The closing session will take place on November 26.

CAFEO is held annually by the 10 ASEAN member states on a rotating basis. Established in 1982, the federation is made up of various engineering institutions in the region./.

US invests 2 billion USD in Indonesian sovereign wealth fund

CEO of the US International Development Finance Corporation (IDFC) Adam Boehler has signed a letter of interest to invest 2 billion USD in the Indonesia Investment Authority (IIA) or Sovereign Wealth Fund (SWF) in Washington D.C.

In a statement, the Indonesian Coordinating Maritime and Investment Ministry said within the framework of the economic reform programme, the Indonesian Government continues developing financial choices and private investment in national strategic projects and other priorities, thus enhancing economic ties between the US and Indonesia.

Accordingly, IDFC will cooperate with partners from Japan, the United Arab Emirates and Singapore.

The Indonesian Government set the goal of establishing the IIA in January 2021 to enhance investment and support the economy amid the COVID-19 pandemic.

In early October, Indonesian Finance Minister Sri Mulyani Indrawati said the Indonesian Government has prepared an initial capital of 75,000 billion rupiah (5.1 billion USD) for SWF, including 30,000 billion rupiah in cash and the remainder in the form of shares in State-owned enterprises and other State assets.

International travel tradeshow opens in Singapore

An international travel tradeshow entitled TravelRevive, powered by ITB Asia and Singapore Tourism Board (STB), opened in Singapore on November 25 with close to 1,000 attendees on-site.

In his opening remarks, Singaporean Minister for Trade and Industry Chan Chun Sing said amidst the disruptions inflicted by the COVID-19 pandemic, the Singaporean government is committed to working with industry partners to reinforce the resilience of the meetings, incentives, conferences and exhibitions (MICE) sector and doing more to catalyse the revival of the tourism industry in a safe manner.

The government will support the industry in reimagining the entire visitor experience to emerge stronger and solidify the country’s position as a global and regional business hub, he added.

TravelRevive is the first international travel tradeshow to take place physically in Asia Pacific during COVID-19. The two-day event is the first pilot tradeshow to trial the newly developed ‘hybrid event’ tradeshow prototype for safe business events, safe itineraries, and digital enablers in Singapore.

Besides live sessions, TravelRevive features on-demand components that are accessible to delegates joining via the ITB Community in Asia online platform.

Singapore is due to establish "green lanes" with countries where COVID-19 is under control, including Vietnam, said John Conceicao, a representative of STB during an interview with the Vietnam News Agency’s correspondent.

The country is also planning a “travel bubble” between the countries, he added.

Net loss of Malaysia’s AirAsia Group grows in Q3

AirAsia Group of Malaysia said on November 24 that its net loss for the third quarter widened year-on-year due to the depreciation of right-of-use assets and lower travel demand.

The Xinhua news agency quoted AirAsia as reporting that its net loss for the three months through September was 851.78 million MYR (208.39 million USD) compared with a 51.44-million MYR loss a year ago.

Its revenue plunged 85.6 percent to 442.91 million MYR, from 3.07 billion MYR.

It also recognised a significant 663.1 million MYR depreciation of right-of-use assets and lease interest costs.

For the nine months, AirAsia Group posted a net loss of 2.66 billion MYR versus a net profit of 80.72 million MYR in the same period last year. The revenue slumped 68.4 percent to 2.87 billion MYR from 9.09 billion MYR.

However, President (Airlines) of AirAsia Group Bo Lingam still expressed confidence in the firm’s ability to overcome these challenges and emerge stronger next year.

While the company is hopeful that lockdowns and border restrictions will soon be lifted, it is prepared to maintain sustainable operations solely on the back of domestic sectors into 2021 if restrictions remain, he said.

AirAsia Group foresees further formations of travel bubbles among ASEAN countries which would boost its operations given a strong foothold and dominance in the region./.

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