Vietnam aims to develop its fisheries sector into a large commodity production industry with competitive capacity and responsible and sustainable integration in line with international institutions, contributing to improving incomes for industry workers.
According to the Vietnam fisheries development strategy to 2030 and vision to 2045, the aquaculture economy is to account for 30 percent of GDP in agro-forestry-fisheries.
The total output of domestically produced aquatic products is to reach 10 million tonnes, while export value is to hit 18-20 billion USD. The strategy also aims to generate over 3.5 million jobs.
According to the Directorate of Fisheries, nearly 620 million USD was allocated to 148 projects in the 2016-2020 period.
The sector’s production value grew by an average of 6 percent annually in the 2016-2020 period. Total fisheries output in 2019 reached 8.15 million tonnes.
Meanwhile, export turnover in 2019 hit 8.6 billion USD and is expected to reach 10 billion USD this year./.
Newly-established firms down, registered capital up in 10 months
Vietnam recorded nearly 111,200 new enterprises from January-October, a year-on-year decline of 2.9 percent, according to the General Statistics Office (GSO).
The new entrants, however, have combined registered investment of more than 1,594 trillion VND (68.3 billion USD), up 11.1 percent against the same period last year.
Average registered capital per new enterprise was 14.3 billion VND, up 14.4 percent.
Meanwhile, 32,600 operating enterprises registered to increase their capital by more than 2,298 trillion VND in total. The economy therefore received a capital injection of more than 3,892 trillion VND from newly-established and existing enterprises, up 17 percent against the same period of 2019.
During the ten-month period, 37,700 companies resumed operations, up 8.2 percent year-on-year. There were also nearly 41,800 businesses temporarily suspending operations, nearly 30,300 firms waiting for dissolution procedures, and 13,500 companies completing dissolution procedures, up 58.7 percent, down 12.4 percent, and up 0.1 percent, respectively.
Some 8,600 firms withdrew from the market each month on average.
Director of the GSO’s Department of Industrial and Construction Statistics Pham Dinh Thuy said that businesses need to find suitable partners, work to remove bottlenecks, and make good use of their capital.
He suggested the Government and the National Assembly consider exempting taxes and fees, extending payment periods, and raising credit growth ceilings for commercial lending.
Companies should receive timely support to stabilise and develop their production and business, he added.
The GSO proposed that the State have policies to encourage the importation of equipment to expand production while reducing the importation of products where Vietnamese companies possess strengths.
Relevant authorities should work to help local businesses find import sources for materials and spare parts, and encourage consumers to buy Vietnamese products during these tough times, he added./.
Disbursement of public investment up 34.4 pct in 10 months
The disbursement of public investment sourced from the State budget reached 354.6 trillion VND (nearly 15.3 billion USD) in the first ten months of this year, an increase of 34.4 percent compared to the same period last year, according to the General Statistics Office (GSO).
An estimated 52 trillion VND (2.24 billion USD) of public investment was disbursed in October alone, up 42.2 percent year-on-year.
The GSO said total foreign investment in Vietnam by October 20, including newly-registered capital, additional capital, and share purchases and capital contributions, stood at 23.5 billion USD, down 19.4 percent year-on-year.
About 2,100 new projects were granted licenses with combined registered capital of 11.7 billion USD, down 32.1 percent in number and 9.1 percent in capital year-on-year.
A total of 5.7 billion USD was added to 907 existing projects, up 4.4 percent against the same period last year.
Meanwhile, 6.1 billion USD in foreign investment was spent on purchasing shares in Vietnam, down 43.5 percent year-on-year.
Vietnam invested 314.5 million USD in 107 new projects and added 163.8 million USD to 28 other projects overseas during the first ten months, the office said./.
AEON to open mall in Hai Phong in December
AEON Vietnam announced the AEON - Hai Phong Le Chan General Merchandise Store and Supermarket will officially open its doors for customers of Hai Phong city on December 14.
The Hai Phong Le Chan General Merchandise Store and Supermarket will be the company’s first AEON Mall department store and supermarket in Hai Phong city, bringing the company’s total to six in Vietnam, including two in Hanoi, two in HCM City and one in Binh Duong province.
Speaking at a press conference on November 2, AEON Vietnam General Director Nishitohge Yasuo said the company planned to expand more specialised stores outside shopping centres to diversify products and services and bring AEON closer to customers.
“Due to the COVID-19 pandemic, we will promote digital transformation, expand e-commerce platform, promote cashless shopping services, and continue to ensure food hygiene and safety and deliver comfort and convenience for customers. AEON Vietnam will make endless efforts to turn the AEON – Hai Phong Le Chan into one of the most favourable destinations for customers in Hai Phong and neighbouring provinces,” said Yasuo.
The 18,800 sq.m department store is expected to bring new shopping experiences to local customers.
The AEON – Hai Phong Le Chan will be the largest-scale supermarket in the port city, 1,400 sq.m food buffet Delica, 800 sq.m fresh food area, providing all 40,000 products from local 2,000 suppliers to meet all the essential needs of customers in everyday life.
Hai Phong people will be the first customers in Southeast Asia to experience innerCasual (IC) products - AEON's own brand. AEON Vietnam will also put into operation two more specialised stores, including the Glam Beautique beauty and health store and AEON Bicycle.
The new store will provide 3,000 jobs, contributing to promoting socio-economic development and State budget collection for Hai Phong./.
Vietnam renewables hold great potential in ASEAN: VCCI Chair
Vietnam has become one of the most vibrant and attractive renewable energy markets in Southeast Asia.
Renewable energy in Vietnam is forecast to become one of the sectors that will thrive the most among the ASEAN countries, Dr. Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI) told a recent forum on solutions to develop renewable energy in the country.
At the forum held in Hanoi on October 28, participants agreed that Vietnam’s fast-growing economy requires high consumption of energy, causing great challenges to the depleting fossil fuels such as coal, oil and gas.
Statistics from local agencies showed Vietnam would face power shortages in the 2021 - 2025 period, and from 2023 onwards, the country may fall short of up to 13 billion kWh, while the country’s total capacity of oil-fired power plants would be nearly 11 billion kWh. By the end of 2023, the power shortage would be up to 12,690MW.
The power shortage will be fixed by 2024 and 2025 thanks to some thermal power plants becoming operational, but still the shortage would be about 7,250MW.
To mend the power shortage, Mr. Loc said that the Politburo issued Resolution No.55-NQ/TW dated February 11, 2020 on Vietnam's national energy orientations to 2030, with a vision to 2045. Resolution No.55 sets the development orientation for the renewable energy sector in Vietnam based on the development trend and the energy demand in the region.
If the plan is properly implemented, Vietnam would lure a large number of renewables investors, making the sector the driving force for Vietnam's economic development, Mr. Loc emphasized.
In response to the Vietnamese government's incentives for the development of renewable energy sources, many renewable energy power projects are in the pipeline. As of the end of August 2020, the total capacity of renewables added to the mastet plan reached nearly 23,000MW, including 11,200MW of solar power and 11,800MW of wind power.
According to the Electricity and Renewable Energy Authority under the Ministry of Industry and Trade, over the past two years, Vietnam has drawn in a considerable number and renewable energy projects. Up to now, the country has put into operation 102 solar power projects with a total capacity of 5,245MW.
With a record of new solar PV capacity put into operation, Vietnam has become one of the most vibrant and attractive renewable energy markets in Southeast Asia, Mr. Loc said. However, such the development process is also posing new challenges to the development of the grid system, land use, feed-in-tariff mechanisms, technology, manpower and financial resources.
So far, there are still many bottlenecks, causing the delay of projects, even the risk of cancelation, which need close coordination between ministries, branches and localities to address them.
HCMC enhances cooperation with other localities to attract more tourists
The HCMC Department of Tourism has held a special program to welcome a group of tourists from Quang Ninh Province—the first visitors to the city—as part of a tourism promotion cooperation program between the two localities, expected to encourage 1,000 tourists to travel to the two destinations in the coming time.
Besides, the city is planning to cooperate with other provinces in the northwest and northeast regions, Hanoi City and central Vietnam to introduce more tourism promotion programs to attract travelers.
TST Tourist organized a tour of Nha Trang-Phan Thiet-HCMC for the tourists from Quang Ninh. They will stay in the city for two days and experience various services such as Hop On Hop Off tours, a sightseeing cruise on the Saigon River and tours to the 3D Artinus Museum.
Earlier, HCMC had acted as a center to send tourists to other localities, but now the city is striving to increase the number of visitors from other localities. The move is aimed at helping tour operators serve more tourists to overcome the hardships caused by the coronavirus pandemic and build a firm foundation for the city to boost the domestic tourism segment.
Statistics from the HCMC Statistics Office indicated that between January and October, the city earned some VND59.4 trillion from lodging and catering services, down 37.5% year-on-year.
Revenue from travel services amounted to some VND6.6 trillion during the 10-month period, plunging by 74.3% year-on-year.
HCMC's 10-month exports reach US$36.7 billion
According to the Department of Industry and Trade of Ho Chi Minh City, in the first ten months of this year, the total export turnover of city-based enterprises through border gates across the country reached US$36.7 billion, up 5.5 percent compared to the same period last year.
If excluding crude oil, the city’s export turnover is estimated to reach $35.2 billion, up 7.1 percent over the same period, while it rose 12.4 percent in the same period last year.
Specifically, the export turnover of agro-forestry-aquatic products is estimated at $3.86 billion, up 2.25 percent, accounting for 12.22 percent of the total exports. That of industrial products is estimated at $25.22 billion, an increase of 3.08 percent, accounting for 79.81 percent. That of other products is estimated at $2.55 billion, up 12.06 percent, accounting for 8.06 percent.
Regarding the market, Asia remained the market with the highest export turnover of $19.3 billion compared to other markets. Oceania and Africa were two markets with export turnover below $1 billion. China was still the largest export market of HCMC-based enterprises with estimated exports of $6.23 billion, an increase of 31.9 percent over the same period last year, accounting for 20.4 percent of the total exports. The US market followed with $5.47 billion, up 0.26 percent. The EU market chased after with $4.1 billion. Japan came in next with $2.5 billion.
From the perspective of enterprises, Mr. Bui Huu Them, Deputy General Secretary of the Handicraft and Wood Industry Association of Ho Chi Minh City, said that the Covid-19 pandemic had affected heavily production and business activities of enterprises. However, the export turnover of wooden and handicraft products of its member enterprises still posted a growth of 10 percent in the first ten months of this year. It is the effort and the achievement of enterprises in overcoming difficulties to stabilize production.
HCMC takes heed of assistance for small, medium-sized enterprises’ development
Relevant competent agencies in Ho Chi Minh City will take heed of assistance for small and medium-sized enterprises’ development, that’s what attendees of a television program organized by Ho Chi Minh City People's Council and Ho Chi Minh City Television yesterday.
Attendees at the Listening and Exchange program centered around ways to help small and medium-sized enterprises (SMEs).
Currently, SMEs in HCMC have mainly made up 98 percent of 450,000 operating local businesses. From 2015 till now, Ho Chi Minh City has issued 20 policies to support businesses in many fields such as policies of accessing credit package, supporting human resource development, and economic stimulus.
In fact, most of small and medium-sized businesses without mortgaged assets for bank loans and business strategies; therefore, they hardly access to commercial banks whereas credit security fund has not well worked on these firms without mortgaged assets, Deputy Head of the Economic and Budget Department under the Ho Chi Minh City People's Council Cao Thanh Binh said.
Additionally, Chairman of the HCMC Union of Business Association Chu Tien Dung said many businesses want to participate in programs of supporting industrial development and technological innovation. However, administrative procedures are still complicated.
Following businesspersons’ complaint of accessing bank loans, Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam - Ho Chi Minh City branch, pointed out several reasons why enterprises can’t access to bank loans. Specifically, businesses must have feasible production plan, transparent finance sources and mortgaged assets, he stressed.
Banks have found many ways to remove barriers and simplify the loan process to benefit businesses, Mr. Minh continued. For instance, the banks have worked with the Department of Industry and Trade and the HCMC Union of Business Association to provide unsecured loans and businesses can ask for loan by mortgaging cash flow and revenue collection sources.
He emphasized that banks will be fined if they do not assist any organizations or individuals that are eligible for loans.
Deputy Director of Ho Chi Minh City Department of Industry and Trade Nguyen Phuong Dong shared that the department will build a data portal for businesses to increase opportunities of cooperation for the future of work.
The industry and trade sector has made effort to maintain production and business and ensure goods supplies for coming Tet holidays.
Meanwhile, according to Director of HCMC Department of Planning and Investment Le Thi Huynh Mai, the department will continue carrying out administrative reform programs for enterprises’ satisfaction when businessperson complete business registration.
Additionally, the Department will coordinate with related agencies to carry out commercial promotion programs, seek business investment opportunities and aid strategies for supply and demand connections.
Vietnam's factory activity continues recovering
Anecdotal evidence suggested that success in bringing the Covid-19 outbreak under control in Vietnam had helped lead to a recovery in customer demand.
The Vietnam Manufacturing Purchasing Managers' Index (PMI) posted 51.8 in October, down marginally from 52.2 in September, but still signaling an improvement in the health of the sector as business conditions have now strengthened in two successive months, according to Nikkei and IHS Markit.
A reading of the 50 neutral mark indicates no change from the previous month, while a reading below 50 indicates contraction and above 50 points to an expansion.
Improving operating conditions were noted in the consumer and intermediate goods sectors. On the other hand, investment goods firms posted a deterioration, amid further falls in both output and new orders.
Anecdotal evidence suggested that success in bringing the Covid-19 outbreak under control in Vietnam had helped lead to a recovery in customer demand.
As a result, new orders increased solidly for the second month running, subsequently feeding through to a similarly-paced increase in production to that seen for new business.
Meanwhile, new export orders were unchanged amid some demand weakness in markets where the virus continues to cause problems, notably in Europe.
Greater output requirements encouraged manufacturers to take on extra staff in October. Employment increased for the first time since January, though at only a marginal pace amid ongoing signs of spare capacity.
Higher output requirements also led to a second successive monthly increase in purchasing activity, although stocks of purchases decreased as inputs were used to support output growth.
The Covid-19 pandemic continued to cause issues in supply chains during October. Suppliers' delivery times lengthened to a greater extent than in September. Alongside the direct impacts of the pandemic, shortages of materials and poor weather conditions reportedly contributed to delivery delays.
Material shortages led to accelerating cost inflation, with input prices increasing at the fastest pace since August 2018. The passing on of higher input costs to customers resulted in a second consecutive rise in selling prices.
Firms were generally confident that output will increase over the coming year amid optimism that the virus will remain under control.
“The Vietnamese manufacturing sector started the final quarter of the year on a solid footing, according to the latest PMI data. This should continue as long as Covid-19 remains under control in the country,” said Andrew Harker, Economics Director at IHS Markit, which compiles the survey. "The most pleasing aspect of the latest survey was a return to growth of employment for the first time since before the pandemic hit as workloads start to justify rising staffing levels.”
"A positive end to the year could set the economy up nicely for a strong recovery to kick in during 2021," he concluded.
Hanoi dialogues with locals to prevent garbage crisis
The city is committed to offering the best solutions for the people, but those solutions must be in compliance with the law, a Hanoi Party official has stated.
There is a thin line between sending a message by blocking the dumpsite entrance and violating the law, Vice Secretary of the Hanoi Party Committee Nguyen Van Phong has said, warning locals not to repeat such an act.
Mr. Phong made the statement in a dialogue held on October 30 between leaders of the municipal Party Committee and local people in three communes of Hong Ky, Nam Son and Bac Son (Soc Son districts) who are struggling with environmental issues emanating from the Nam Son Waste Treatment Complex.
The issue is complicated, but could be resolved based on the rule of law, stated Mr. Phong, expecting the locals not to block again the entry of garbage trucks into the complex.
According to Mr. Phong, the local authorities are willing to listen to the people and discuss the matter with those that are not satisfied with the solutions.
One week ago, local people in Soc Son district impeded the entry of garbage trucks to Hanoi’s biggest landfill, causing thousands of tons of garbage piling up along the streets in the city. This is the 15th time this happened over recent years.
VnExpress cited Nguyen Van Thang, a local in Bac Son commune, as saying that his family has agreed to relocate but the compensation package proposed by local authorities is not sufficient for them to buy a land lot in the resettlement area.
Sharing Mr. Thang’s view, Nguyen Manh Hung in Nam Son commune pointed to a huge difference in the land compensation rate and the land price in resettlement areas, causing difficulties for the people subject to relocation.
Addressing these issues, Vice Chairman of the Hanoi People’s Committee Nguyen Quoc Hung said the local government has already been providing preferential treatment to the locals living in the surrounding areas of the Nam Son waste treatment complex, including free health insurance, higher compensation rate and investment in local infrastructure, among others.
Mr. Hung noted the city is committed to offering the best solutions for the people, but those solutions must comply with the law.
Mr. Hung instructed the municipal Department of Construction to work with Soc Son district in addressing environmental issues caused by the landfill.
The Nam Son Waste Treatment Complex, spanning over 157 hectares, was built in 1999 in Nam Son, Bac Son and Hong Ky communes. The complex handles around 5,000 of the 6,500 tons the city generates each day. The other 1,500 tons are treated at the Xuan Son landfill in Son Tay Town and other small waste treatment facilities.
An Giang-based firm exports tra fish products made under high-tech process
Batches of tra fish products manufactured under a high-tech production process have been shipped to the EU, South America, ASEAN, China, and the Middle East by a company based in the Mekong Delta province of An Giang.
The exporter, Nam Viet Group, owns a tra fish farming area with modern technologies and GlobalGAP, Aquaculture Stewardship Council, and VietGAP certificates.
It also has several processing plants meeting strict requirements for exporting goods to demanding markets, in addition to a GlobalGAP-standard factory producing fish feed.
The company said it will export 300-350 containers each month, with each containing 25 tonnes of tra fish products made under a high-tech process.
Despite COVID-19, the export of agricultural products has basically met targets, especially tra fish, a major foreign currency earner that has gradually regained access to traditional markets, according to Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
He noted that the EU-Vietnam Free Trade Agreement (EVFTA), which took effect on August 1, creates the conditions necessary for the Mekong Delta, the largest aquaculture and agriculture hub in Vietnam, to ship key products to European markets.
The agro-forestry-fishery sector posted a trade surplus of over 7.9 billion USD in the first 10 months of this year, up 10.7 percent year-on-year. Exports were estimated at 33.6 billion USD, up 1.1 percent year-on-year, while imports reached nearly 25.6 billion USD, down 1.5 percent.
In October alone, total export turnover rose 4.2 percent against September, to around 3.8 billion USD, the agriculture ministry reported./.
Hanoi’s tourism gradually recovers
Hanoi welcomed 554,000 tourists in October, a slump of 71.4 percent against the same period last year.
However, the figure saw a month-on-month increase of 30 percent.
Hanoi earned 1.21 trillion VND (52.22 million USD) from tourism in the reviewed month, falling nearly 83 percent year-on-year but up 25 percent compared to the previous month.
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.
Hanoi is scheduled to host the Vietnam International Travel Mart (VITM) in November, giving opportunities to promote its key tourist attractions and craft villages.
The capital attracted just 6.29 million visitors in the first eight months of this year, tumbling 67.3 percent year-on-year, with international arrivals down 75.6 percent to just 1.02 million. Such figures have resulted in a large number of local travel companies suspending operations while many hotels have shut their doors./.
Over 1.33 billion USD mobilised via G-bond auctions
A total 31 trillion VND (1.33 billion USD) was mobilised for the State Treasury through 15 Government bond auctions at the Hanoi Stock Exchange (HNX) in October, falling 47 percent from the previous month.
Some 74.4 percent of bidders won and interest rates of bonds fell in all terms, ranging from 0.13 percent to 0.24 percent a year.
On the secondary G-bond market, average trading volume reached over 10.8 trillion VND per auction, up 15.6 percent month-on-month. Transacted volumes through repurchasing agreements (repos) accounted for 25.24 percent of the total trading value in the market.
Total outright purchases of G-bonds in October topped over 1.65 billion, valued at more than 178.6 trillion VND, up 31 percent in value as compared to the previous month.
The Government bond volume via repos exceeded 535 million, or more than 60.3 trillion VND, increasing 11.5 percent in value from September.
Foreign players made outright purchases of more than 3.42 trillion VND, outright sales of over 2.98 trillion VND, and repos sales of over 99.4 billion VND. In October, foreign investors were net sellers to the tune of 336 billion VND on the northern bourse.
As of October 30, G-bonds worth some 1.3 quadrillion VND were listed on the HNX./.
Singapore daily: Vietnam leads Asia-Pacific in pace of digital progress
Singapore’s daily Business Times said on November 2 that Vietnam’s digital transformation efforts have yielded the biggest improvement among regional economies.
According to an industry study of 11 Asia-Pacific markets carried out by the GSMA Intelligence, Vietnam saw the highest increase in scores between 2016 and 2019.
Its latest rating stood at 49 points for 2019, up by 12 points from three years before, which GSMA Intelligence attributed to notable improvements in the connectivity component of the index, following the launch and rapid expansion of 4G networks.
It was also driven by improvements to the digital identity, digital citizenship and digital lifestyle components, added the report.
GSMA Intelligence noted that Vietnam is pursuing a national Industry 4.0 strategy that includes infrastructure and human resources, as well as e-government and innovation.
However, there are still challenges that need to be addressed to make further progress, particularly in the digital commerce component and with regard to policies to support innovative startups, the report added. The 5G mobile technology is expected to make up 5 percent of wireless connections in Vietnam by 2025, well below the Asia-Pacific average of 23 percent.
Indeed, Vietnam ranked just eighth overall, among of the 11 markets surveyed. The rankings were topped by four “advanced” economies, with the Republic of Korea (RoK) in pole position at 78 points. Next up were Singapore, Australia and Japan.
The report classed Vietnam, India, Indonesia, Thailand and Malaysia as “transition” countries, while Pakistan and Bangladesh are “emerging”.
It said the gap remains significant. This underscores the need for countries in the emerging category to do more to accelerate progress.
The study was based on input from government and industry organisations in the markets of Australia, Bangladesh, India, Indonesia, Japan, Malaysia, Pakistan, Singapore, the RoK, Thailand and Vietnam./.
Malaysia’s growth may lose momentum: Ambank
Ambank Group Research said Malaysia’s economic rebound in the third quarter of 2020 could be losing momentum.
According to Ambank chief economist and head of research Anthony Dass, the manufacturing purchasing managers’ index (PMI) remained in the contraction region for the fourth consecutive month. The index eased to 48.5 from 49 in September.
Manufacturing optimism is softening due to the increase in the number of COVID-19 infections, and renewed restrictions to contain its spread, he explained.
As a result, both output and new orders slowed further in October as compared to the previous month.
Dass said uncertain demand has led to stocks of both purchases and finished goods depleting in October.
In addition, manufacturers experienced supply chain delays again as the impact of the COVID-19 restrictions at home and abroad.
“This has raised input prices. With a lack in capacity building, employment continues to come under pressure”, he said./.
State Audit Office of Viet Nam digitalises to keep up with global trends
Viet Nam’s audit industry has been working hard to develop information technology to catch up with global trends, said a representative from the State Audit Office of Viet Nam (SAV).
The SAV representative said: “The Fourth Industrial Revolution brings many opportunities and advantages as well as difficulties and challenges to the field of digital audit,” adding that in order to meet integration requirements, SAV has implemented a number of IT solutions.
To ensure the consistency of the legal system alongside digital transformation as of the recommendations of the the International Organisation of Supreme Audit Institutions (INTOSAI), SAV has submitted amendments and supplementations to the Law on State Audit 2015, which helped SAV access national databases and the digital database of audited units, agencies, organisations and individuals related to audit activities.
The representative said such access was the legal basis for SAV's activities to help reduce human resources and shorten the audit duration, contributing to improving the quality of audits towards more accurate and transparent results.
At the same time, SAV has digitalised a large volume of audit records carried out in previous years, classifying and storing about nine million pages of documents electronically. SAV also deployed different IT applications to serve the management and operation of the internal audit.
To accompany digital transformation, SAV also provided more training to staff, especially those in IT.
According to SAV’s IT development strategy in the 2019-25 period, the office will develop intelligent management systems that could provide a new audit method to enhance the industry and support the digital economy. By 2025, SAV would complete digital infrastructure and implement automation to support SAV activities with modern digital technologies and it will perfect the digital infrastructure and gradually develop a strong and modern SAV based on digital technology by 2030.
According to SAV, as the role of international cooperation becomes increasingly important, the office has connected with international agencies and audit communities around the world.
So far, SAV has implemented some international cooperation in the IT field, such as participating in a research project called The Working Group on Big Data of INTOSAI, the environment audit called ASOSAI WGEA, the ASOSAI capacity development programme on IT audit in 2018 – 2019 and in training courses on IT audit under the International Centre for Information Systems and Audit (iCISA), International Training Centre of the Comptroller and Auditor General of India within the framework of the Economic and Technical Cooperation Program (ITEC) sponsored by the Indian Government.
SAV’s representative concluded that through international cooperation activities on IT, SAV will participate more effectively in the global value chain, in the world financial market, at the same time asserting the important role and position in the political system of the State of Viet Nam, becoming an effective tool to help the National Assembly monitor the national financial system.
Vietnamese manufacturing continues recovery in October
The start of the fourth quarter of the year saw a continuation of the recovery of the Vietnamese manufacturing sector, with the country’s Manufacturing Purchasing Managers' Index (PMI) posting 51.8 in October.
According to the survey released by Nikkei and IHS Markit on Monday, the index was down marginally from 52.2 in September but still signalling an improvement in the health of the sector. With the pandemic remaining under control in the country, firms recorded solid improvements in new orders and output. Moreover, employment returned to growth following an eight-month sequence of job cuts.
Improving operating conditions were noted in the consumer and intermediate goods sectors. On the other hand, investment goods firms posted a deterioration, amid further falls in both output and new orders.
Anecdotal evidence suggested that success in bringing the COVID-19 outbreak under control in Viet Nam had helped lead to a recovery in customer demand. As a result, new orders increased solidly for the second month running, subsequently feeding through to a similarly-paced increase in production to that seen for new business.
Meanwhile, new export orders were unchanged amid some demand weakness in markets where the virus continues to cause problems, notably in Europe. Greater output requirements encouraged manufacturers to take on extra staff in October. Employment increased for the first time since January, though at only a marginal pace amid ongoing signs of spare capacity. Backlogs of work continued to decrease.
Higher output requirements also led to a second successive monthly increase in purchasing activity, although stocks of purchases decreased as inputs were used to support output growth. Stocks of finished goods were also depleted at the start of the final quarter of the year.
The COVID-19 pandemic continued to cause issues in supply chains during October. Suppliers' delivery times lengthened to a greater extent than in September. Alongside the direct impacts of the pandemic, shortages of materials and poor weather conditions reportedly contributed to delivery delays.
Material shortages led to accelerating cost inflation, with input prices increasing at the fastest pace since August 2018. The passing on of higher input costs to customers resulted in a second consecutive rise in selling prices. That said, the increase was only marginal and little-changed from that seen in the previous month. Restricting the ability of firms to raise output prices were requests for discounts by clients and competitive pressures.
Firms were generally confident that output will increase over the coming year amid optimism that the virus will remain under control. A number of respondents predicted that new order growth would support rises in production. That said, sentiment was slightly lower than in the previous month and weaker than the series average.
Commenting on the latest survey results, Andrew Harker, economics director at IHS Markit, said: “The Vietnamese manufacturing sector started the final quarter of the year on a solid footing, according to the latest PMI data. This should continue as long as COVID-19 remains under control in the country. The most pleasing aspect of the latest survey was a return to growth of employment for the first time since before the pandemic hit as workloads start to justify rising staffing levels."
“A positive end to the year could set the economy up nicely for a strong recovery to kick in during 2021," he said.
Reports from the General Statistics Office also showed Viet Nam's industrial production rose by 5.4 per cent year-on-year in October, after a 3.8 per cent gain a month earlier.
This was the strongest increase in industrial output since June, amid intensive public health measures to contain the spread of the coronavirus outbreak in the country, with output expanding much faster for both manufacturing.
Seminar discusses VN-India business opportunities
Opportunities to enhance trade and investment in various sectors between India and Viet Nam were discussed at a seminar in HCM City on Monday.
Nguyen Thanh Binh, director of the Trade Information Centre belonging to the Viet Nam Chamber of Commerce and Industry, HCM City branch, told ‘Business Outlook Seminar Series India – Viet Nam Trade and Investments’, held by the Indian Business Chamber in Viet Nam, that trade between the two countries has been growing steadily in recent years to reach US$11.2 billion last year.
But India is only the 26th largest investor in Viet Nam, and there is much more room for Indian companies to invest in this country to take advantage of its economic environment, strategic location, young population, cheap labour, and global market access due to free trade agreements that Viet Nam has concluded such as the CPTPP and EU-Viet Nam FTA.
“Through talking with Indian promotion agencies, we realise that India wants to enhance investment in Viet Nam in the coming time.”
Ramesh Anand, chairman of the Indian Business Chamber in Viet Nam (Incham), said, “It is exciting to say that we are witnessing an increase in interest among Indian investors in Viet Nam.
“We believe that the Indian economic presence in Viet Nam in the coming years will be significant, beneficial and acknowledged.”
Binh said Viet Nam is in the process of building infrastructure, and needs investment but also expertise in energy and ports.
Under its plan to attract FDI the Government is promoting foreign investment in manufacturing, services, high-tech agriculture, and high-value tourism services, he said.
Pharmaceuticals and medical equipment manufacturing, health and education services, financial services and technology, information technology, and intellectual services (knowledge process outsourcing) are among the country’s priority for investment in the medium term, he said.
The country’s plan to attract new FDI wants “quality investment.”
India has strengths in pharmaceuticals, oil and gas, IT and services, and his country wants to attract Indian investment in these sectors, he said.
“We want Indian companies to invest in the pharmaceutical sector in Viet Nam.”
In the garment and textile sector, Viet Nam wants Indian firms to increase the supply of various kinds of yarns and fabrics, he said.
Anup Kumar Dave, general director of Kirby South East Asia Co., Ltd, said investment opportunities are also available in steel, solar energy and electric car manufacturing.
“Viet Nam’s steel industry is on a growth path and a gap of 8.7 million metric tonnes exists between demand and supply. It imports from China, Korea, India, Taiwan, and Japan to meet demand.
“New facilities are being built. It will take three to five years before steel production can basically satisfy the market demand.
“Investment in hot-rolled steel coils and electromagnetic steel sheets manufacturing is being solicited by the Vietnamese Government.
“We see a lot of investors from India are coming in Viet Nam to invest in solar power.”
The Government will consider scaling back plans for coal-fired plants and offering investment opportunities in renewables instead, he said.
Anand said: “From time to time we request Government departments to inform Incham about investment opportunities in HCM City and neighbouring provinces. This would enable our members and business houses in India to explore these opportunities.”
Incham acts as a catalyst to promote India –Viet Nam trade and cultural exchanges, and the seminar was an activity meant to help stakeholders further understand and promote industry in the changing environment, he said.
Number of newly-established firms surges in October
The development of new enterprises and operation of some existing enterprises rose in October, according to the General Statistics Office (GSO).
In October, 12,200 new enterprises were established with registered capital of VND165.6 trillion. These figures were up 18.4 per cent in terms of the number of new enterprises, but down 18.5 per cent in registered capital compared to September.
The average registered capital reached VND13.6 billion per new enterprise, down 31.2 per cent month-on-month but up 15.1 per cent year-on-year.
The GSO also reported that in October, 5,044 enterprises resumed operations, up 10.4 per cent month-on-month but down 30.4 per cent year-on-year.
In total, 3,293 enterprises suspended their operations, up 0.7 per cent over the previous month and 57.9 per cent over the same period last year. Meanwhile, 3,579 businesses were waiting for dissolution procedures, down 12.6 per cent month-on-month and 28.6 per cent year-on-year.
During the first 10 months of 2020, Viet Nam had 111,200 newly-established enterprises with total register capital of about VND1.6 trillion, a decrease of 2.9 per cent in terms of number but an increase of 11.1 per cent in capital over the same period last year.
The average registered capital of a new enterprise in the first 10 months reached VND14.3 billion, 14.4 per cent higher than the same period last year, according to the GSO.
Existing enterprises also registered to raise their joint capital by VND2.3 trillion in the first 10 months, meaning the domestic economy received VND3.9 trillion, a year-on-year increase of 17 per cent.
Besides that, 37,700 enterprises resumed operations, an increase of 8.2 per cent year-on-year. About 41,800 businesses were suspended, up by 58.7 per cent, while 30,300 businesses stopped operations to complete dissolution procedures, down 12.4 per cent.
Malaysia’s growth may lose momentum: Ambank
Ambank Group Research said Malaysia’s economic rebound in the third quarter of 2020 could be losing momentum.
According to Ambank chief economist and head of research Anthony Dass, the manufacturing purchasing managers’ index (PMI) remained in the contraction region for the fourth consecutive month. The index eased to 48.5 from 49 in September.
Manufacturing optimism is softening due to the increase in the number of COVID-19 infections, and renewed restrictions to contain its spread, he explained.
As a result, both output and new orders slowed further in October as compared to the previous month.
Dass said uncertain demand has led to stocks of both purchases and finished goods depleting in October.
In addition, manufacturers experienced supply chain delays again as the impact of the COVID-19 restrictions at home and abroad.
“This has raised input prices. With a lack in capacity building, employment continues to come under pressure”, he said./.
Vietnam joins ASEAN Culture and Tourism Pavilion in RoK
Vietnamese cultural and tourism products have gone on display at the ASEAN Culture and Tourism Pavilion which is currently underway in Seoul, the Republic of Korea (RoK).
Keum Nana, honorary ambassador of the ASEAN-Korea Centre, Lee Hyuk, secretary general of the ASEAN-Korea Centre, Singaporean Ambassador to the RoK Eric Teo, Korean singer Kim Jun-su, and Vietnamese Ambassador to the RoK Nguyen Vu Tung pose for a group photo at the pavilion’s opening ceremony on November 4.
Organised by the ASEAN-Korea Centre, the exhibition opened to the public on November 4 with a wide range of handicrafts, fabrics, furniture, books, and digital communication equipment from various ASEAN countries on show to visitors.
The pavilion also aims to allow guests to recall memories of previous trips to ASEAN by displaying lifestyle products, artistic objects, musical instruments, and books from each of the bloc’s nations.
The event is running as part of the “ASEAN Culture and Tourism Showcase 2020” and is set to last until November 25, with the occasion presenting an ideal opportunity to deepen Korean people’s understanding of culture, tourism, and food of ASEAN members.
Aside from the pavilion, the ASEAN-Korea Centre is hosting the “ASEAN Tourism Promotion Booth and Photo Exhibition”, launching TV cooking shows about ASEAN’s culinary culture, along with a culinary art book titled “Stories Around the Table”.
Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews/SGT/VIR