VIETNAM BUSINESS NEWS JANUARY 16
Inflation would be controlled in 2022: Experts
Experts have forecast that inflation will remain under control in 2022 although there will be pressure in the year.
Nguyen Ba Minh, Director of the Institute of Economics and Finance, said the average consumer price index (CPI) in 2022 will increase roughly 2-3 percent compared to 2021.
Inflation in 2022 will be well controlled as it will be difficult for global raw material prices to increase significantly due to the complicated spread of new variant Omicron, trade wars and political conflicts in the world.
Purchasing power in the domestic market will be still weak because the income of workers has been reduced, as production stagnated during the pandemic.
Trade union ensures cosy Tet for workers
COVID-19 and its variants enormously affected socio-economic development in 2021, as well as health, employment, and worker incomes. Overcoming these challenges, the trade union movement affirmed its role in supporting workers and is busy ensuring a comfortable Tet for members.
More than 2.6 million members and workers received support from trade union welfare programmes in 2021, with over 3,000 houses built or repaired at a total cost of tens of billions of VND.
Unions also provided more than 6 trillion VND in support to members, employees, and frontline forces in the fight against COVID-19.
As Tet nears, trade unions have carried out several activities to ensure workers have a comfortable Tet.
Trade union branches in localities have strengthened support programmes for workers and have worked with local companies to ensure that everyone receives a Tet bonus in accordance with the law.
Amid the serious effects of COVID-19, the trade union movement has shouldered the burden with workers and provided the best assistance and services possible to members.
Hung Yen draws 271 foreign-invested projects
Industrial parks (IPs) in the northern province of Hung Yen are now home to 209 foreign-invested enterprises with 271 valid projects worth over 5 billion USD, according to the management board of provincial IPs.
Of the projects, 270 are secondary investment projects worth nearly 4.9 billion USD, and one is industrial park infrastructure investment.
Among 19 countries and territories investing in local IPs, Japan took the lead with 143 projects with total registered capital of around 3.3 billion USD, or 52.77 percent of the total number of projects and 65.59 percent in value. The Republic of Korea came second with 49 projects worth 36.6 million USD, equivalent to 18.08 percent in volume and 10.72 percent in value. It was followed by China with 28 projects that had registered capital of 360.8 million USD.
The projects focus on electronics, computers and optical products; rubber, plastic and non-metallic products; automobiles and other motorised vehicles, hiring about 57,000 workers.
Mekong Delta set to become agricultural economic hub by 2030
The Mekong Delta is set to become a sustainable, dynamic and highly efficient agricultural economic hub of the country, the region and the world by 2030.
It is part of the regional master plan for 2021-2030 with a vision to 2050 mentioned in Resolution No.5/NQ- HĐĐPVĐBSCL recently issued by the Mekong Delta Coordinating Council.
The approval of the master plan is expected to make it easier for regional localities to devise their own planning in a way that ensures they are connective, synchronous and systemic together.
Accordingly, the region will comprise agriculture centres, economic corridors and locomotive urban areas with diverse services and industries using modern technology and adapting to climate change. It will develop maritime economy and strengthen inter-regional, domestic and global connectivity, improve the quality of workforce, create a sustainable living environment in tandem with restoring natural resources and important ecological systems, and preserve unique and special cultural identity of ethnic groups.
Vietnam Airlines resumes regular flights to Australia from January 15
National flag carrier Vietnam Airlines will resume regular flights to Australia from January 15 following approval from authorities.
Accordingly, Australia has become the eighth international market tapped by Vietnam Airlines, following the US, Japan, the Republic of Korea, Singapore, Thailand, Cambodia and Taiwan (China).
There will be one weekly flight linking Hanoi and Sydney, and two weekly flights between Ho Chi Minh City and Sydney, Melbourne, using modern wide-body Boeing 787 and Airbus A350.
Tickets are now available on Vietnam Airlines’ website, mobile app and ticket agents nationwide.
The carrier is working closely with authorities and countries to soon restore regular international flights to Europe and China.
WB forecasts Vietnam’s growth at 5.5% in 2022
The World Bank has forecast that Vietnam’s economic recovery is likely to accelerate in 2022 as GDP growth is expected to rise to 5.5 percent from 2.6 percent in the year just ended.
Entitled “No time to waste: The Challenges and Opportunities of Cleaner Trade for Vietnam”, the WB report argued that greening the trade sector should be a priority.
It said while Vietnam has started to decarbonise activities associated with trade, more need to be done to respond to mounting pressures from main destination markets, customers, and multinational companies for greener products and services.
The report recommended that the Vietnamese Government act on three fronts: facilitate the trade of green goods and services, incentivize green foreign direct investment, and develop more resilient and carbon-free industrial zones.
Assuming the COVID-19 pandemic will be brought under control at home and abroad, the forecast envisioned that Vietnam’s services sector will gradually recover as consumer and investor confidence restores, while the manufacturing sector benefits from steady demand from the US, the European Union, and China./.
Vietnam’s 500 largest enterprises in 2021 announced
The Vietnam Report JSC and online newspaper VietNamNet on January 14 revealed the 500 largest enterprises in Vietnam (VNR500) and top 10 prestigious companies in the pharmaceutical industry - logistics - animal feed – packaging this year.
They are all large-scale businesses with effective and stable business records and strong financial potential. These enterprises have established a foothold in the market, significantly contributing to the country’s economy recovery amid the impact of the COVID-19 pandemic.
On the VNR500 list are Samsung Electronics Thai Nguyen Co. Ltd., Vietnam Electricity (EVN), Vietnam Oil and Gas Group (PetroVietnam), Viettel Military Industry and Telecoms Group (Viettel), and Vietnam National Petroleum Group (Petrolimex) and Vingroup, among others.
Italian yacht manufacturer enters Vietnamese market
Italian yacht manufacturer Fiart has freshly signed a cooperation deal with Vietnamese yacht service provider Saigon Yacht and Marina JSC (SYMC).
The deal is expected to open up an opportunity for Fiart to distribute luxury products and services in Vietnam.
Initially, Fiart and SYMC will focus on distributing a number of yachts such as Seawalker, Classic, and Cetera models, meeting specific needs of Vietnamese customers for their comfort, speed, and typical Italian design style.
On the occasion of the signing ceremony, Honorary Consul of Vietnam in Naples Silvio Vecchione and Nguyen Duc Thanh, Minister Counselor at the Vietnamese Embassy in Italy, visited Fiart’s factory and met with the company’s leaders.
Retailers’ alliance launched to help reduce use of disposable plastic bags
An alliance of retailers who pledged to reduce the use of disposable plastic bags made its debut at a ceremony held by the Institute of Strategy and Policy on Natural Resources and Environment on January 14.
This is part of activities within the framework of the “Rethinking Plastics - Circular Economy Solutions to Marine Litter in Vietnam” project funded by the European Union (EU) and the German Government.
The 16-member alliance is the first initiative to bring together retailers, helping them find a common voice in reducing the use of single-use plastic bags, towards protecting the environment and promoting sustainable development in Vietnam, Thang said.
Catalyst for growth of Vietnam’s tuna exports
The three-digit growth rate of Vietnam’s tuna exports to Mexico and Israel is considered a catalyst for a strong increase of over 16 percent of the country’s total tuna export value in 2021.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnamese tuna is now available in 140 countries around the world. Export of the product earned the country 757 million USD last year, up 16.6 percent year-on-year.
Notably, tuna sales to Mexico and Israel soared by 143 percent and 201 percent against the previous year, respectively.
The growth is attributed to producers and exporters’ flexible and effective adaptation to the COVID-19 pandemic.
Shipments of most tuna products have increased, except for canned tuna, with tuna loin posting a 41 percent rise and other processed tuna 14 percent.
CAAV proposes increasing frequency of regular int’l flights
The Civil Aviation Authority of Vietnam (CAAV) has proposed the Ministry of Transport allow to expand the scale and frequency of regular international flights, including those from/to Europe and Australia.
CAAV Director Dinh Viet Thang suggested the ministry permit the authority to inform aviation authorities of France, Germany, the UK and Russia on the resumption of regular international passenger flights, with the initial weekly frequency of 10 flights per leg for each side.
CAAV also sent documents to aviation authorities of Australia to inform that airlines of both countries can resume regular flights between the two nations with 10 flights per leg a week.
It also wants to take the initiative in working with countries and territories to decide on markets and frequency based on demand as well as aviation agreements.
Vietnam leads ASEAN in installed power capacity in 2021
Vietnam’s total installed power capacity totalled 76,620 MW in 2021, 7,500 MW higher than the previous year, and the highest among ASEAN member states, said CEO of the Vietnam Electricity (EVN) Tran Dinh Nhan at the company’s year-end meeting on January 14.
The installed capacity of the renewables hit 20,670 MW, up 3,420 MW year-on-year and accounting for 27 percent of total. The EVN’s total power output, comprising generation and imports, rose by 3.9 percent year-on-year to 256.7 billion kWh.
The share of renewable power is increasing, with generating capacity reaching up to 60 percent of the load capacity at times, causing overloads on inter-regional transmission lines and several locations, Nhan said.
This year, the State-owned corporation plans to accelerate licence granting and budget allocation of five key power generation projects, namely Tri An Hydropower Plant Expansion, and thermal power projects Dung Quat I & III, O Mon III, and Quang Trach II. It will also focus on expanding Hoa Binh and Ialy hydropower plants and Quang Trach I Thermal-power Plant.
HCM City to prioritise major transport projects serving regional connectivity
Ho Chi Minh City plans to review its investment in transport systems serving regional connectivity.
Under an approved planning, the city will be connected with other regional localities via five road systems. But so far, apart from National Highway 1 which has been invested, the HCM City-Long Thanh-Dau Giay and Ben Luc-Long Thanh expressways that are underway, the remaining systems have yet to be invested.
According to the city Department of Transport, the assessment of the current situation and results of investment in the inter-regional transport system is significant in making preparations for the investment in major and urgent projects to promote regional connectivity, paving the way for socio-economic development of the city and the whole southern key economic region.
China increases imports of processed fruit and vegetables from Vietnam
China's imports of processed fruit and vegetables from the Vietnamese market surged by 34.9% to reach US$213 million during the past 11 months of last year, according to statistics released by China Customs.
The northern neighbour’s imports of processed fruit and vegetables throughout the reviewed period expanded by 27.1% to US$1.48 billion compared to the same period from 2020.
Furthermore, China also increased imports of processed fruit and vegetables from major markets, except for Thailand, with the United States and Vietnam being the two largest suppliers.
According to statistics compiled by the General Department of Vietnam Customs, the nation remains the global ninth largest market for exporting processed fruit and vegetables, nuts, and other edible parts of plants.
Textile firms urged to go green to attract more credit
While textiles is one of the key industries in Viet Nam with high export revenue, it is also among industries that pose a high environmental and social risk, according to Nguyen Quoc Hung, general secretary of Viet Nam Bankers Association.
Hung said textiles have been affecting water resources and contributing to greenhouse gas emissions as textile production consumes massive amounts of water and energy.
For this reason, the industry has always been under careful assessments of environmental risk by credit institutions during the credit extension process.
To reduce the impact of industrial production on the environment, institutions have granted credit with preferential terms to clients who embark on projects supporting green growth.
By November 2021, 67 credit institutions have been engaged in “green credit”. Total credit to green projects accounted for over 4 per cent of domestic credit, up 0.46 per cent compared to 2020.
Meanwhile, credit to textiles stood at just VND145 trillion (US$6.39 billion), equivalent to approximately 1.5 per cent of domestic credit.
Rubber exports recover strong growth in 2021
The domestic rubber industry had a strong recovery in export turnover last year, after 10 years of plunging due to a strong reduction in the export price of rubber.
Vietnamese rubber products are exported to more than 80 countries and territories in the world. Viet Nam now ranks third on the global market in terms of export value.
According to the Ministry of Agriculture and Rural Development, Viet Nam's rubber exports in 2021 reached 1.93 million tonnes, earning US$3.24 billion. The exports rose by 11.7 per cent in volume and 36.2 per cent in value on year. The strong growth in value was due to the continuous increase in export rubber prices.
The industry achieved the export turnover of $3.2 billion in 2011 due to the record high export rubber price. However, in nine following years, the rubber export turnover dropped below $3 billion due to the sharp decline in export rubber prices, even falling to below $2 billion. By 2020, thanks to the recovery of export prices, the rubber export turnover reached $2.38 billion.
Mekong Delta flower farmers worry about Tet sales as traders keep away
With only a few weeks left for the peak flower shopping season during Tet (Lunar New Year), many farmers in Dong Thap, Ben Tre and Tien Giang provinces and HCM City are worried because few traders are coming to buy.
Without much demand, they do not dare increase prices though prices of inputs had almost doubled from last year.
However, supply is not high either with farmers in the delta cutting output by half, even 70 per cent in some areas, including in major flower growing areas such as Sa Dec Village in Dong Thap Province and Ba Bo Village in Can Tho City.
The delta is the largest flower growing region in the country and the leading supplier to HCM City and southern provinces during Tet.
Cashless payments account for over 70 percent of retail transactions in 2021