Customs clearance will be suspended at border gates in the northern province of Lang Son and Mong Cai International Border Gate in Quang Ninh province for seven days, from January 21 to 27, during the Lunar New Year (Tet) festival, according to authorities.

The work will be resumed from January 28.

Meanwhile, the Bac Luan Bridge I border gate which is specialised for entry and exit procedures in Quang Ninh province will maintain working as usual throughout the Tet holidays.

After a nearly-three-year closure due to the COVID-19 pandemic, Bac Luan Bridge I border gate was reopened to carry out immigration procedures for residents and tourists from January 8.

Only 10 days after the reopening, it handled immigration procedures for about 4,000 people.

Ba Ria- Vung Tau aims for per capita GRDP of 8,200 USD in 2023

The sea tourism capital of Vietnam’s southern region, Ba Ria- Vung Tau province has set a target of a  per capita Gross Domestic Product (GRDP) of about 8,231 USD (excluding crude oil and gas) this year, and increase of 620 USD compared to that 2022.

Vice Chairman of the provincial People’s Committee Dang Minh Thong said, in 2023, total development investment capital in the province is expected to reach nearly 59 trillion VND (about 2.6 billion USD), up 6.54%. The total local budget revenue is projected at nearly 89 trillion VND (nearly 3.8 billion USD), of which domestic budget revenue is roundly 43 trillion VND.

Accordingly, the province has rolled out action plans for 2023 with a focus on deploying work such as connecting inter-regional infrastructure and key projects, and medium-term public investment projects during 2021-2026. They will also plan out the Bien Hoa – Vung Tau expressway project (the first phase), the Phuoc An bridge, Ring Road No.4; Highway No.994, and coastal road.

The province has also developed projects to lift Ba Ria- Vung Tau into a national economic centre including works on a free trade zone associated with Cai Mep- Thi Vai area, and a project to modernise Cai Mep- Thi Vai sea port, among others.

In 2022, the province achieved significant socio-economic developments (excluding oil and gas) with an expected increase of 10.97% compared to 2021, the highest rise of the province in the past decade.  Budget revenue was estimated at about 110,000 billion VND, reaching 153.4% of the estimate. Domestic revenue reached 45 trillion VND, reaching 130% of the estimate, the highest rate in recent years.

In the same year, the province attracted 58 foreign direct investments, increased capital for 40 projects with a total of newly granted and adjusted domestic and foreign investment capital of about 2.07 billion USD, or 112.77% of the plan.

Southeast Asian SMEs face cashflow problems: report

Cash flow shortage is a common challenge faced by small- and medium-sized enterprises (SMEs) in Southeast Asia, with 58% of those from Singapore, Malaysia, Thailand and Indonesia reporting their existing cash flow sufficient to sustain their operations for six months, according to a YouBiz report.

The document on business expenses estimate for 2023 coming out on January 18 underlined that the first important task of SMEs was to reduce operating costs.

It was made based on an analysis of more than 60,000 commercial transactions from 4,500 businesses.

More than 60% of the SMEs have applied digital tools to optimise business operations and reduce costs. Tools that were used by SMEs for over six months include customer service software (42%), email marketing software (39%), project collaboration tools (35% ), e-commerce software (39%) and marketing automation (32%).

Along with the reopening of borders and easing of regulations related to tourism, enterprises want to resume tourism activities to participate in face-to-face conferences, enhance business partnerships with new partners as well as explore potential markets.

More than 70% of the SMEs said that global payment is a key factor to ensure business continuity during the COVID-19 pandemic. These businesses also intend to continue to use the global payment method or use it more often, increase cross-border customers and cooperate with more partners.

Up to 56% of surveyed businesses said that they often use foreign currencies for transactions, of which more than 90% of transactions are valued at 50,000 SGD (37,760 USD) or more.

Vietnam remains good business partner of Hong Kong: official

Vietnam is always a very good business partner of Hong Kong (China), and the two sides have maintained effective trade and investment ties over the past years, according to Hong Kong’s Secretary for Commerce and Economic Development Algernon Yau.

Trade between Vietnam and Hong Kong grew 11.8% each year during the 2017-2021 period. In 2021 alone, the value reached 220 billion HKD (28.1 billion USD), up 19% year-on-year.

Hong Kong is the fifth largest trade partner of Vietnam, while Vietnam is the seventh largest trade partner of Hong Kong, and the second biggest among the ASEAN countries, only after Singapore. The two-way trade in the first half of 2022 stood at 125 billion HKD, a year-on-year rise of 21%.

Algernon told the Vietnam News Agency that his recent visit to Vietnam for a workshop on business cooperation between Vietnam and the Guangdong-Hong Kong-Macao Greater Bay Area of China was a very “eventful and fruitful journey.”

While in Vietnam, he met the Vietnamese Minister of Planning and Investment, the Minister of Science and Technology and the Deputy Minister of Industry and Trade to seek measures to boost the bilateral cooperation in the time ahead.

Algernon and his entourage of more than 60 representatives from Hong Kong enterprises had effective working sessions with the Hong Kong China Chamber of Commerce and the Vietnam Chamber of Commerce and Industry, he said.
 
He emphasised that Hong Kong businesses are very interested in investment in Vietnam and Vietnamese firms also expressed their interest in investment in Hong Kong.

During his stay in Vietnam, Algernon also visited an industrial park in the northern province of Hung Yen and had a “good discussion” with local authorities about cooperation opportunities.

Algernon said he saw substantial opportunities for trade and investment cooperation between the two sides in the time ahead.

Vietnam is a member of the Regional Comprehensive Economic Partnership (RCEP) and the Hong Kong Special Administrative Region Government has applied for  accession into the RCEP since early 2022, he said, explaining that the membership would help to further facilitate the trade between Hong Kong and the RCEP countries.

According to him, Hong Kong serves as a platform to get into the Guangdong-Hong Kong-Macao Greater Bay Area and getting accession into the RCEP will facilitate the members to use Hong Kong as a platform to do business, both in Hong Kong and in the Greater Bay Area as well.

Highlighting Hong Kong’s advantages, Algernon said they would help Vietnam and other RECEP countries do business in the region.

Khanh Hoa welcomes back first Chinese tourists in post-COVID period

Bamboo Airways’s flight numbered QH1413 took off from Noi Bai Airport and landed at Cam Ranh Airport on the morning of January 19, bringing with it 15 Chinese passengers to Khanh Hoa after a long period of hiatus caused by the COVID-19 pandemic.

A representative of Da Nang Vacation Company Limited revealed that the group of Chinese visitors are traveling from Tianjin in China to Hanoi on January 18 and then staying in Khanh Hoa for five days from January 19 to January 24 at resorts and hotels in Nha Trang City before then heading to Ho Chi Minh City and returning to China.

Nha Trang is the main destination for their trip to Vietnam as they will visit several popular places such as Ponagar tower, Hon Chong and Nui church, and take an island tour to Hon Mun and Hon Mot.

On January 28, the travel firm is expected to welcome additional Chinese delegations from Tianjin who will enter Hanoi before going to Khanh Hoa. From February onwards, there will be more Chinese groups from China flying directly to Cam Ranh Airport, said the representative.

Le Thi Hong Minh, general director of Cam Ranh International Terminal Joint Stock Company, revealed that the low-cost airline Vietjet Air’s first direct flight numbered VJ5317 from Vietjet Air from Chengdu International Airport will land at Cam Ranh international airport on the morning of January 23, the second day of the Lunar New Year.

According to the schedule, during the period from January 22 to March 23, Vietjet Air will organise about 35 flights to bring Chinese tourists from Anhui, Hunan, and Sichuan provinces to Nha Trang with a frequency of between four and five flights per week. On these flights, there will be between 180 and 220 Chinese tourists on each trip.

Tran Minh Duc, vice president of the Nha Trang Tourism Association, emphasised that the return of Chinese tourists is a positive sign for the local tourism industry following a three-year hiatus caused by the COVID-19 pandemic.

He added that tourism businesses are required to improve their accommodation facilities, train additional staff, and design tourism products in order to match the tastes of tourists, as well as ensuring pandemic measures, especially during Tet.

Over 130,000 passengers go through Tan Son Nhat Airport on peak day before Tet

The number of passengers passing through Tan Son Nhat Airport on January 19 is anticipated to have reached a record figure of over 130,000 passengers, including 94,000 domestic visitors, ahead of the Lunar New Year, known locally as Tet.      

In line with the plan, there will be nearly 900 takeoffs and landings from Tan Son Nhat Airport on January 19 with an estimated 130,865 passengers travelling through the airport.

This comes following the airport also welcoming 912 flights on January 18, equivalent to nearly 128,700 passengers, including 92,000 domestic passengers.

As a means of facilitating passengers’ travel, Tan Son Nhat Airport recommends that passengers proactively do check-in procedures two hours before departure for domestic flights and three hours before departure for international flights.

During this year’s peak period, Tan Son Nhat Airport has been not overloaded due to the number of flights being allocated properly, with several flights taking place at night to avoid overcrowding during the day.

Furthermore, the airport has also deployed a number of measures aimed at ensuring security and safety, thereby closely co-ordinating with relevant units in a bid to deal with the current situation.

The airport has also provided passengers with information regarding their flights and luggage through QR codes, while a temporary taxi stand has been put into operation in a bid to serve the rising demand from traditional taxis waiting to enter the domestic and international terminals.

Aquatic exports to set to face numerous challenges this over coming year

Despite Vietnamese seafood exports reaching a record high of US$11 billion last year, the fisheries sector is anticipated to encounter numerous difficulties in the year ahead due to high inflation globally which will lead to consumers moving to tighten their spending.      

This comes following the number of seafood export orders sharply declining in the remaining months of last year, with several businesses not receiving orders for the first quarter of this year.

Furthermore, domestic enterprises have faced numerous difficulties as they lack capital to purchase raw materials, thereby leading to delays in fulfilling export orders for customers.

Tran Dinh Luan, general director of the Directorate of Fisheries, revealed that in order to keep up with changes occurring in the market, state management agencies, businesses, and localities are required to devise short-term and long-term plans aimed at fully tapping into their advantages.

Luan went on to underscore the importance of publicity and transparency in origin traceability, as well as in applying information technology throughout the entire seafood production chain to seize upon opportunities as there are positive signs in the international market moving forward.

Shares gain for seven consecutive sessions

Vietnamese shares ended on a positive note on Thursday, the last trading session before the Lunar New Year holiday.

Viet Nam’s benchmark VN-Index rose 0.89 per cent to 1,108.08 points Thursday in its seventh gaining session.

The index is now at its highest since September 30.

Trading value on the Ho Chi Minh Stock Exchange (HoSE) increased by 14.58 per cent to VND11.73 trillion (US$500 million).

The VN-30 basket, comprising the 30 largest capped stocks, saw 18 tickers gain.

State-owned lender Vietcombank (VCBB) led with a 3.3 per cent rise, followed by leading brokerage SSI Securities Corporation (SSI), up 3.2 per cent.

Insurance company Bao Viet Holdings (BVH) gained 3.1 per cent, and conglomerate Masan (MSN) Group rose 2.1 per cent.

On the other side, seven blue chips fell, for example, steel maker Hoa Phat Group (HPG) losing 2.5 per cent.

Foreign investors were net buyers to the tune of VND795.84 billion, mainly buying SSI and private conglomerate Vingroup (VIC).

The HNX-Index at the Hanoi Stock Exchange, where mid and small-caps list, was up 0.98 per cent to end at 219.87 points.

Vietnam-India cooperation blossoming in technology and engineering spheres

Vietnam and India last year coordinated in many activities to explore potential cooperation, including in IT and engineering, which helped mark 50 years of diplomatic relations between the two nations.

In an article in late December focused on Vietnam’s strong economic growth in 2022, S D Pradhan, who once served as chairman of India’s Joint Intelligence Committee, pointed out many bright prospects for cooperation in the economic sphere between the two countries. He mentioned the potential of cooperation in IT and engineering.

“India can help provide skill training to Vietnamese on a larger scale. In the digital sector, India’s assistance can be of great value to Vietnam for enhancing the ease of doing business,” Pradhan wrote.

Vietnam-India cooperation blossoming in technology and engineering spheres, illustration photo/ Le Toan
Vietnam has set priorities at the 13th National Party Congress that include national digital transformation, developing a digital-based economy, greater stress on science and technology, and creating a conducive environment for business development and manufacturing.

Vietnam is accelerating its digital transformation trajectory towards achieving targets and tasks set in the national digital transformation programme until 2025, approved by the prime minister.

Accordingly, Vietnam aims for the digital economy to account for 20 per cent of its GDP by 2025 and about 30 per cent by 2030. The national digital transformation programme has a dual purpose: developing digital government, digital economy, and digital society; and establishing Vietnamese digital businesses with global capacity.

According to the preliminary estimates by the Ministry of Information and Communications, the share of the digital economy in GDP is expected to have hit 10.4 per cent in 2022, a strong leap compared to 9.6 per cent in 2021, but still significantly lower than the target of about 20 per cent.

Similar to Vietnam’s national digital transformation scheme, the Indian government launched Digital India with the vision of transforming the nation into a digitally empowered society and a knowledge-based economy by ensuring digital access, inclusion and empowerment, and bridging the digital divide.

The initiative is centred on three key areas – digital infrastructure as a core utility to every citizen, governance and services on demand, and the digital empowerment of citizens. India is currently a highly competitive centre globally in digital competence of IT services and training.

Vietnam and India have identified digital technology as one of their development strategies. Many Indian IT companies are present in Vietnam and provide training, solutions, and other services, especially in the banking industry, telecoms, and network security.

Some Indian startups are also present in Vietnam, especially in the fintech and travel technology sectors. Conversely, some Vietnam enterprises are eyeing potential cooperation with Indian partners in digital tech.

In an international seminar on Vietnam-India economic exchange on December 28, experts and leaders of enterprises from the two countries openly discussed technology and engineering as potential areas of cooperation.

Mini Kuman, the first secretary of the Indian Embassy in Vietnam, highlighted potential areas of cooperation between the two countries, including agro-commodities, engineering goods, the health sector, and IT. She said engineering goods were a particular strength for both sides.

Vietnam strives to keep inflation in check from start of 2023

Global basic commodity prices in 2023 are expected to remain high and unpredictable. However, the success in keeping inflation in check over the past difficult year is the foundation to believe that Vietnam will be able to continue maintaining low inflation.

After many years of setting, and successfully realising, the inflation control target at 4%, the National Assembly decided to increase the inflation target for 2023 to 4.5%, demonstrating that the economy is facing great inflationary pressure.

In addition to the request to enhance price management and regulation during the Lunar New Year (Tet), the National Steering Committee on Price Regulation has asked ministries, local authorities and relevant agencies to cautiously manage the prices of goods regulated by the government in the first months of the year to provide safe room for controlling inflation in all of 2023.

In fact, adjusting the prices of goods regulated by the government, especially electricity, healthcare services, and education, will have a strong effect on the consumer price index (CPI). According to the General Statistics Office (GSO), education and healthcare account for nearly 12% of the basket of goods and services used to calculate inflation. Therefore, adjusting tuition fees and healthcare costs as planned this year will affect Vietnam’s overall CPI.

In November 2022, the CPI rose by 4.37% over the same period in 2021, which was the highest increase since 2014 (except for 2016, when the rise was 4.52%), mainly due to several localities hiking tuition fees, causing the education index to go up by nearly 11%. For electricity, a 10% rise in prices will result in a 0.33% increase in CPI.

According to Nguyen Thu Oanh, Head of the GSO’s price statistics department, since production and business activities have returned to normal, the operation will have to follow market rules and the period of price restraint on government-regulated goods is coming to an end. Therefore, tuition fees, medical costs and electricity prices will increase, causing great pressure on inflation. In the face of present inflation risks, it is necessary to take bold actions from the first months of the year in order to keep inflation at about 4.5%.

Economic experts have identified several factors weighing on prices in 2023. Externally, global inflation is expected to decline after peaking in 2022 but will remain high, continuing to be the greatest risk for many economies, including in Vietnam. China’s lifting of zero-Covid policies will increase the demand for production materials, consumer goods and services, pushing prices higher in the world and causing pressure on global inflation. In addition, as Vietnam is a big importer of many inputs for manufacturing, higher prices of raw materials will result in higher costs and prices of final goods, causing inflation pressure on the economy.

Domestically, a number of tax support policies, such as VAT reduction, expired at the start of 2023, causing the prices of goods to rise again. Price rises are also expected with the increase in salary from July 2023. Furthermore, the demand-pull pressure from growth stimulus packages will push up prices and build up pressure on inflation.

However, there are also a number of factors that can help restrain price rises. The biggest factor is Vietnam’s abundant supply of foods to meet domestic demand and for export. The 50% cut in the environmental protection tax on fuels will help curtail the rise in the retail prices of this important goods.

Based on the actual developments, the Ministry of Finance has constructed three scenarios for inflation in 2023, with respective CPI rises of 4.2%, 4.55% and 4.98%. These scenarios are based on the projected increases of government-regulated goods in the third and fourth quarters, with respective electricity price rises of 5%, 7% and 8%.

Forecasts by some domestic organisations that have included more positive data on global inflation show that Vietnam’s inflation pressure in 2023 may cool down, with the CPI averaging at 3.2-3.5%.

According to Associate Professor Ngo Tri Long, the advantages from effectively curbing inflation in 2022 provide the opportunity for Vietnam to continue maintaining relatively low inflation compared to other economies. However, in face of the potential risks, we must not be complacent in the task of price management and regulation.

Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes