Employees process corn for export. The Ministry of Agriculture and Rural Development has targeted to reach US$62 billion in agro export revenue in 2030

The Ministry of Agriculture and Rural Development has targeted to reach US$62 billion in agro export revenue in 2030 aimed at turning Vietnam into a high-quality agro-forestry-aquatic exporter in the ASEAN and across the world.

Moreover, the agriculture sector will make great efforts to help Vietnam occupy a concrete position in the global supply chain of agro-forestry-aquatic products in the next decade. Vietnamese agro-forestry-aquatic items would meet all the requirements of foreign markets, the ministry said, referring to a scheme on promoting agro-forestry-aquatic exports by 2030, which has been sent to the prime minister for approval.

Specifically, by 2030, the sector is expected to export agricultural products worth US$25 billion, forestry items worth some US$16-17 billion, aquatic products of US$15 billion, livestock products of some US$3-4 billion and some other items in the field worth US$2 billion.

Besides, the annual growth rate of exports of agro-foresty-aquatic products is set to hit 6-8%. Some 40% of local agro-forestry-aquatic items for export would be tagged as national brands, 70% of products will be convenient for traceability and approximately 60% of them are processed and highly-processed items.

By 2025, the sector targets its outbound sales at US$52 billion—US$22 billion of agro products, US$14 billion of forestry items, US$12.5 billion of aquatic products and some US$3 billion of livestock and other products. Further, some 20% of exported items would be tagged as national brands and 50% of products will be convenient for traceability.

Quang Ninh serves over 140,000 tourists in first two days of 2021

The northeastern coastal province of Quang Ninh, home to UNESCO-recognised World Natural Heritage Ha Long Bay, welcomed more than 140,000 tourist arrivals in the first two days of 2021.
 
Of the total, 110,000 tourists stayed overnight in the province, according to the provincial Tourism Department.

Implementing a tourism stimulus package worth 500 billion VND (21.4 million USD) in 2021, Quang Ninh offered free tickets to Ha Long Bay, Quang Ninh Museum and Yen Tu relic site on January 1, and is discounting 50 percent of the ticket prices on other days.

During the New Year holiday, localities in the province organised a wide range of cultural and sport activities to serve visitors, notably the winter carnival at Tuan Chau international tourist site and a low-range fireworks performance in Ha Long city.

As the COVID-19 pandemic is forecast to continue affecting the country’s economy, Quang Ninh has set a target of serving 10 million tourists and earning 20 trillion VND from tourism services this year./.

Vietnam Airlines issues VND8 trillion of shares to existing shareholders

Vietnam Airlines decided at an extraordinary shareholder meeting on December 29 to issue shares worth VND8 trillion (US$344.9 million) to its existing stakeholders to raise its charter capital.

The State Capital Investment Corporation would represent the Government, which owns 86% of the national flag carrier, to buy the shares.

With the share issuance, the owner's equity of Vietnam Airlines would be nearly VND8.3 trillion by the end of 2020 and over VND8.2 trillion by the end of 2021. Its debt-to-equity ratio was expected to fall from 6.19 to 5.22 by late 2021.

The airline will use the proceeds from the share issuance to pay overdue debts and short- and long-term bank loans; it will not use the money for investment, procurement and other activities, which do not directly serve its operations.

At the meeting, the carrier also called on its shareholders to offer preferential loans so that the airline can accelerate its recovery.

As for the performance of Vietnam Airlines in 2020, its consolidated revenue reached VND42.5 trillion, including VND33 trillion from its parent company, exceeding their respective targets by VND1.9 trillion and VND448 billion.

It was projected to suffer a loss of VND14.4 trillion. Of the total, its parent company’s loss in 2020 was estimated at over VND12 trillion, VND2.42 trillion lower than the previous forecast.

The loss could further be narrowed by an addition of VND2.85 trillion after the firm completes procedures for depreciation adjustment and the allocation of funding for aircraft maintenance under the Government’s support program.

In 2020, the airlines operated 96,500 flights, carrying 14.23 million passengers and nearly 195,000 tons of cargo. It also organized more than 180 repatriation flights, bringing over 52,000 Vietnamese citizens back home from over 30 countries and territories.

In the 2021-2025 period, Vietnam Airlines will focus on its recovery, while continuing to push for the restructuring process.

According to the firm, Vietnam’s aviation sector is expected to recover faster than in other countries due to a high demand for tourism and trade in both domestic and foreign markets. With the Government’s support, Vietnam Airlines expected to report profits from 2023 and cut consolidated losses by 2025.

HCMC’s growth lower than half of country’s GDP growth

HCMC’s gross regional domestic product (GRDP) in 2020 is estimated to grow 1.39% over last year, lower than half of the country’s gross domestic product (GDP) growth of 2.91%.

At a press briefing on December 29 to announce the city’s socioeconomic performance in 2020, Huynh Van Hung, head of the HCMC Statistics Department, said the growth rate was also much lower than the rate of 7.83% last year.

Specifically, the agro-forestry-fishery sector posted a growth of 2.06%, industry and construction, 0.43% and trade and services, 2.17%.

Hung said the growth of the trade and service sector was the lowest in the past decade due to the severe impact of Covid-19.

The added value of nine key services in the city accounted for 56.7% of the city’s GRDP and 90.9% of the service sector. Of these, four services with the highest proportions were trade (15.7%), transport and storage (9.6%), science and technology (5.2%) and finance-banking (8.7%).

Meanwhile, the total retail sales of goods and services edged down 1.3% to VND1.22 quadrillion (US$51.8 billion). The tourism sector registered the largest reduction of 76.7%, followed by lodging and catering services, with a drop of 33.8%.

The industry sector expanded just 0.47% and would find it hard to rebound to the 7%-7.5% before the pandemic.

As the city has issued many support policies, such as those to reduce and exempt taxes and fees, its budget revenue fell 14.2% to VND352 trillion—VND238 trillion from domestic production and business activities, VND10.5 trillion from crude oil and VND103.5 from import and export activities—down 11.4%, 52.2% and 12.8%, respectively.

The city had to cut 10% of its fund for districts, while the demand for capital to invest in infrastructure projects was high, Hung added.

In addition, the city’s consumer price index expanded 2.78%.

According to the HCMC Statistics Department, the city exported products worth over US$40.2 billion, including crude oil, in 2020, up 1.3% year-on-year, and spent nearly US$43.4 billion on imports, inching down 1.6%, resulting in a trade deficit of some US$3.15 billion.

The city had five groups of products with an export revenue of over US$1 billion each, accounting for 83.5% of the total export revenue, of which computers, electronic products and accessories took the lead with US$17.8 billion, followed by textiles and garments with US$4.3 billion.

As for imports, eight kinds of merchandise reported an import bill of over US$1 billion each. Computers, electronic products and accessories posted the highest import expenditure of US$16.5 billion, making up 38% of the city’s total import value and increasing 23.9% over last year.

They were followed by other products with US$9.5 billion; machine, equipment, tools and machine parts with US$4.7 billion and fabrics with US$1.7 billion.

HCMC stimulates consumption ahead of Tet

The HCMC Center of Supporting Industries Development under the municipal Department of Industry and Trade on December 29 launched a consumption promotion fair at the Phu Tho Indoor Stadium in District 11 in cooperation with Thien Viet Advertising and Commercial Promotion JSC, to stimulate consumption ahead of the Tet holiday.

The Consumption Promotion Fair 2020, which is set to wrap up on January 3, attracted 230 enterprises showcasing their consumer goods at 380 booths.

A variety of high quality products at promotional prices were showcased, comprising food from many parts of the country, textiles, footwear, cosmetics, handicrafts and machines.

Apart from catering to the shopping demand of HCMC residents and customers in some neighboring provinces, the fair is also aimed at contributing to the city’s economic growth and popularizing Vietnamese goods among local consumers, according to the organizer.

The fair was expected to provide an opportunity for firms to introduce their products to customers, popularize their brands, seek partners and expand their consumption market.

The organizer also asked customers to wear face masks and follow Covid-19 infection prevention and control measures when they visit the fair.

Vietnam’s tra fish exports to China take sharp plunge in November

The turnover of Vietnamese tra fish exported to China this November fell as much as 29.3% month-on-month, with experts attributing the decline to a large amount of goods being stuck at the Chinese border gates to undergo Covid-19 tests that the Chinese authorities have imposed on imported frozen food.

According to a report released today, December 28, by the Vietnam Association of Seafood Exporters and Producers (VASEP), the export of the fish to China and Hong Kong in October and November was gloomy.

VASEP’s market analysts said that a huge volume of commodities was stuck at the border gates due to the prolonged surveillance and food sample testing process, affecting Vietnam’s tra fish exports to this neighboring market.

Earlier, VASEP announced that China had stepped up efforts to contain the spread of the novel coronavirus through imported frozen seafood products from November 10. Specifically, the Chinese competent forces have adopted surveillance, disinfection and origin traceability measures for all consignments of frozen seafood products shipped to China’s major ports such as Shanghai, Wuhan and Qingdao.

Frozen seafood shipments from Vietnam, including tra fish fillets, have to be subject to food and packaging tests at the ports. However, the prolonged surveillance and testing process led to a huge volume of commodities getting stuck at the ports.

Given this situation, VASEP called on local exporters to stay calm and not reduce the export price of tra fish, as lowering export prices will not help the goods that are stuck at ports and will leave a negative impact on shipments bound for China.

Further, local exporters should work closely with importers to stay updated on the export process, aimed at preventing goods from getting stuck at ports and negotiating to adjust the export schedule more appropriately, said the representative.

VASEP had proposed that the ministries of Agriculture and Rural Development, Industry and Trade and Foreign Affairs work jointly with the Chinese authorities to eliminate the obstacles facing local seafood exporters, as Vietnam has brought the Covid-19 pandemic under control.

In the year to November, Vietnam exported tra fish worth some US$485 million to the China-Hong Kong market, up 7.6% against last year's figure. Also, this turnover accounted for 35.7% of Vietnam’s total outbound sales of the fish in the 11-month period.

Vietnam saves VND6.3t a year by cutting business eligibility requirements

By cutting business eligibility requirements, Vietnam has saved some 18 million workdays, equivalent to VND6.3 trillion (US$273 million), each year, Minister and Chairman of the Government Office Mai Tien Dung said at a meeting on December 28.

Since 2016, the Government has issued eight decrees, 19 resolutions, two directives and eight decisions to reform administrative procedures, including cutting business eligibility requirements.

Between 2016 and 2020, the country eliminated 3,893 of its 6,191 business eligibility requirements, 6,776 of 9,926 commodities subjected to a specialized inspection and 30 administrative procedures related to specialized checks. In 2020 alone, 239 business eligibility requirements have been abolished.

Dung said such efforts by ministries, agencies and localities have helped the country improve its position in international rankings.

In the World Bank’s Doing Business Report, Vietnam jumped 20 places between 2016 and 2020 to rank 70th among 190 economies.

In the Global Competitiveness Report, Vietnam jumped 10 places in the world rankings from the 77th spot in 2018 to the 67th spot among 141 countries in 2019.

Vietnam also moved up three notches to rank 42nd of the 129 economies in the 2019 edition of the Global Innovation Index. The country scored above average in all dimensions measured in the index relative to the lower middle-income group.

In terms of e-Government development, the Government has issued many legal documents, programs, strategies and plans to provide a legal corridor for the building of e-Government toward a digital Government, economy and society. Consistent efforts to develop e-Government initiatives have contributed to the improvement of the business environment.

Dung said over the past few years, the Government Office has worked with the Ministry of Information and Communications and other governmental departments to build and put into operation important information systems, which are a basis for the development of e-Government, including the national e-document exchange platform and an information system to manage the meetings and paperwork of the Government, called e-Cabinet.

These systems have helped the Government save some VND8.5 trillion per year and boost the connection between the Government and other administrative agencies, the people and enterprises, thereby serving the development of digital Government and the digital economy.

In the United Nations’ E-Government Development Index 2020, Vietnam ranked 86th among 193 countries and territories, up two places from 2018. The country continuously secured higher rankings between 2014 and 2020, from 99th to 86th, and has been listed among the countries with high levels of e-Government development.

Maritime agency orders larger empty container reserves, transparent transport costs

The Vietnam Maritime Administration has told container shipping companies to increase their empty container reserves and publicize their transport service prices.

In a document sent to container shipping firms, the administration stated that it had received complaints from export companies about the shipping firms’ increase of container transport costs and severe lack of empty containers, the local media reported.

Therefore, the administration asked shipping firms operating in Vietnam to seriously comply with the administration’s direction issued late last month on the listing of freights and surcharges of container shipping and seaport charges.

In addition, shipping firms must provide information about the listing of freights and surcharges of container shipping services to the administration.

They were also asked to increase the reserves of 40-feet empty containers in Vietnam to meet the export demand.

These firms must publicize container transport service prices and increase prices in line with the Vietnamese law and inspect and supervise their units to prevent them from abusing the market to offer unreasonable prices.

The administration also called on shipping firms to support local export companies in line with the prime minister’s Directive 11/CT-TTg on urgent missions and solutions to get rid of difficulties in production and business and ensure social welfare to combat Covid-19.

The Vietnam Maritime Administration will coordinate with the relevant agencies to directly inspect shipping companies and address those violating regulations.

GE to supply eight turbines for Ninh Thuan’s wind farm

GE Renewable Energy on December 28 announced that it had secured a 27.2 MW contract to supply eight 3MW-137 wind turbines to support the construction of the Phuoc Minh Wind Farm project in the central province of Ninh Thuan.

A consortium of PowerChina Huadong Engineering Corporation, Henste Engineering and the IPC Group will provide complete engineering, procurement and construction services for the project.

Once in place in the third quarter of 2021, the project is expected to contribute over 100 million kWh of electricity annually to the national power grid.

Gilan Sabatier, regional leader for GE Renewable Energy’s onshore wind business in South Asia and ASEAN, said in a statement, “This is another step toward supporting the rise of renewable energy in Vietnam and reinforces our commitment to serving the energy needs of the country.”

Nguyen Thi Hong Lien, director of VietinBank’s Nam Thang Long branch, said that VietinBank has contributed to the Government’s renewable energy development strategy by sponsoring some solar and wind power projects.

VietinBank is confident that GE will continue playing an important role in Vietnam’s renewable energy development, she said.

On September 3, GE Renewable Energy announced that it had secured two 30 MW contracts to supply 12 wind turbines to support the construction of the Quoc Vinh Soc Trang and Lac Hoa Soc Trang wind farms in the Mekong Delta. In these two contracts, PowerChina Huadong Engineering Corporation were also chosen to provide complete Engineering, Procurement and Construction services for the projects.

The Phuoc Minh wind power project in Ninh Thuan Province helps GE further expands its business in Vietnam by providing technological support for a variety of power generation projects throughout the country.

Purchase power doubles in three-day holiday

Purchase power in supermarkets and commercial centers in Ho Chi Minh City was reportedly double in the three -day new year holiday. 

These above-mentioned venues were packed with visitors and consumers in these first days of 2021. Increase in purchase power was predicted by businesspeople who had said people would welcome the new year at homes instead of travelling to tourism destinations like before.

Marketing Deputy Director of Saigon Co.op Ho Thi Hong Dao said that Co.opmart, Co.opXtra, Co.op Food, Co.opSmile, Cheers and Saigon Co.op’s Sense City outlets witnessed the arrivals of 2,000 visitors.
Similarly, visitors and customers to Big C, Emart, MM Mega Market, Vinmart also increased. Fresh food, processed food, confectioneries, beverage and cooking oil, rice were consumed strongly.
Businesspeople said significant increase in purchase power resulted from promotion program up to 50 percent.
It is forecast that purchase power in Ho Chi Minh city will continue leaping up from now to Tet holidays ( the Lunar New Year ) especially two weeks before the special holiday.

New annual land lease rates for SHTP released

Ho Chi Minh City (HCMC) People’s Committee has just announced Decision No.32/2020 about the percentage of land rent per year for hi-tech parks.

Accordingly, the percentage of land lease rates each year in Saigon Hi-tech Park (SHTP) is calculated corresponding to land use.

As to land use for commercial and service purposes, this percentage is 1.3 percent per year. For manufacturing or non-agricultural purposes as well as commercial uses of public land, the proportion is exactly 1 percent.

These rates are applicable to any contract signed between January 1, 2020 and December 31, 2020 when this Decision goes into effect.

The Management Board of SHTP reported the value of products manufactured in SHTP in 2020 reached US$19 billion, accounting for 95 percent of the assigned goal. In addition, the total new invested capital last year came to $100 million (18.2 percent of the estimated figure).

Since the potential of SHTP’s investment attraction is quite impressive, it was predicted to contribute 10 percent of HCMC’s GRDP by the end of 2020.

Hanoi remains favorite destination for FDI amid Covid-19

The city will accelerate the establishment of an e-government model to create more convenience for the business community in realizing administrative procedures.

Hanoi targets to attract US$30-40 billion in FDI in the 2021-25 period, in which the city is expected to disburse US$20-30 billion, according to the Hanoi Promotion Agency (HPI).

The city expects the rate of enterprises using modern technologies and corporate governance model to increase by 50% against  2018, along with an increase of localization rate to over 30% by 2025.

While setting a goal of attracting high amount of FDI capital, HPA Director Nguyen Gia Phuong said the city would stay selective in attracting the foreign investment capital.

“Hanoi aims to attract high quality FDI from South Korea, Singapore, Taiwan, the US, Europe, Australia and New Zealand in the coming time,” he noted.

In the meantime, the city is stepping up its efforts in preparing for the incoming wave of investment capital, including a plan to develop supporting industries by 2025 and building new industrial parks.

The city targets to accelerate the establishment of an e-government model to create more convenience for the business community in realizing administrative procedures.

According to the HPI, while the Covid-19 pandemic has led to a sharp decline in the amount of investment capital globally, Hanoi remained a favorite investment destination in 2020,

“Hanoi’s authorities have been actively organizing trade and investment promotion conferences, as well as taking drastic measures in improving the city’s business environment,” stated the agency. 

In the 2016-20 period, Hanoi was the host of four investment attraction and development cooperation conferences that resulted in 264 investment projects with a combined registered capital of VND854 trillion (US$36.58 billion).

At the most recent conference in June 2020, foreign and domestic investors committed a total of VND405.57 trillion (US$17.6 billion) in investment capital in 229 projects, an increase of VND270.45 trillion (US$11.58 billion) against last year’s event.

A report from the municipal Department of Planning and Investment revealed during the 2016-19 period, foreign-invested companies paid US$3.41 billion in taxes and created jobs for 310,370 locals, or 11% of the total workforce.

Hanoi was the top destination in Vietnam for FDI firms in two consecutive years of 2018-19, in which the FDI commitments reached US$8.7 billion in 2019.

During this period, 99,503 new enterprises were established with with registered capital of VND1,225 trillion (US$52.48 billion), up 24% in quantity and 118% in value against the last five-year period.

In the first 11 months of 2020, Hanoi was home to 24,600 new enterprises with registered capital of VND303.3 trillion (US$13 billion).

“Hanoi already possesses many key factors that are attractive to higher quality FDI. The current environment of global supply chain changes  as a result of the Covid-19 pandemic  providing a good opportunity for the city to further prioritize FDI inflows in line with its development strategy,” said Kyle Kelhofer, IFC Regional Manager for Vietnam, Cambodia, and Lao.

Takeo Nakajima, chief representative of the Japan External Trade Organization (JETRO) in Hanoi cited a survey of the agency that showed 41% of Japanese firms are planning to expand the operation in Vietnam in the next three years.

Hanoi attracted nearly US$2 billion in FDI in 2020, including US$662 million from 464 new projects and US$1.24 billion pumped into 132 existing projects.

Vietnam sets high GDP target in 2021 to make breakthroughs

Pressure from high GDP target in 2021 is expected to help the Vietnamese government to create breakthroughs for growth in subsequent years.

While a GDP growth target of 6.5% in 2021, 0.5 percentage points higher than the goal set by the National Assembly, would no doubt put the government under pressure to take actions, but is necessary to create breakthroughs for development in subsequent years.

“This comes on the fact that 2021 is the first year of Vietnam’s five-year socio-economic development plan (2021-25), but also a golden time for the country to take on new opportunities,” stated Minister of Planning and Investment Nguyen Chi Dung.

In 2021, the world economy continues to face four major challenges, including the complicated Covid-19 situation globally; tech and trade tensions between major powers; geopolitical risks; and volatility of international financial markets.

“In this context, a 6% GDP growth target for Vietnam remains ambitious, let alone a 6.5%,” economist Tran Dinh Thien said.

“However, there are reasons for Vietnam to be optimistic,” Mr. Thien noted, saying Vietnam continues to enjoy positive impacts from free trade agreements, including the EVFTA, RCEP and most recently, the UKVFTA.

Mr. Thien also pointed to the ongoing global shift of investment capital, Vietnam’s current efforts in digital transformation and promoting e-commerce, as well as the dynamic and abundant workforce.

“If Vietnam can address current internal issues and grasp opportunities with both hands, there is a high chance that Vietnam can attain the high GDP growth target in 2021 and for the 2021-25 period,” he suggested.

To realize these targets, Vietnam must continue to restructure the economy by revising its growth model based on science, technology, innovation, and working towards higher productivity, economic competitiveness and resilience against external shocks, Mr. Thien asserted.

“The Vietnamese government targets the digital economy to contribute 20% of the GDP by 2025, which would require strong efforts from both the government and local provinces/cities,” he added.

Along with that target, the government sets sight for the total factor productivity (TFP), which is determined by how efficiently and intensely the inputs are utilized in production, to contribute by 45-47% of the GDP and productivity growth of 6.5% per year, goals that Mr. Thien said are difficult even in the conditions of the pre-Covid-19 period.

“A developed digital economy, nevertheless, could boost the TFP and productivity to a new level,” stated Minster Dung.

The government is committed to further supporting the development of an ecosystem for innovative startups, including incentive policies and favorable access to financial resources, added Mr. Dung. 

Head of the Prime Minister’s Economic Advisory Group Nguyen Duc Kien said the Vietnamese economy is on the right direction for rapid and sustainable development by focusing on improving the institutional framework, human resources and infrastructure system.

In a difficult year with Covid-19, Vietnam gives priority to stabilizing the macro-economic conditions and providing support for the business community.

In the first quarter of 2020, the number of enterprises resuming operation stood at 14,800, down 1.6% year-on-year, but was on steady growth to 8.2% year-on-year in the second and third quarter.

As of November 2020, 40,800 businesses resumed operation, up 10.7% year-on-year, taking the total number of newly established and those resuming operation in the 11-month period to 165,100, up 0.9%.

Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the business community expected stronger support from the government to help them better recover from the pandemic.

“Effective government support program and enterprises’ own efforts could lead to a more positive business performances in next year and contributing to the overall growth,” stated Mr. Loc.

Vietnam manufacturing activity returns to growth in December

Firms are confident looking ahead to the coming year, with hopes that export demand in particular will recover should the Covid-19 pandemic be brought under control worldwide.

The Vietnam Manufacturing Purchasing Managers' Index™ (PMI) rose to 51.7 in December, up from 49.9 in November, signaling a modest improvement in business conditions in the Vietnamese manufacturing sector, the third in the past four months, according to Nikkei and IHS Markit.

A reading below the 50 neutral mark indicates no change from the previous month, while a reading below 50 indicates contractions and above 50 points to an expansion. 

Data signaled a return to growth of manufacturing output as production volumes recovered from the storm-related disruption in the previous month. New order growth was central to the expansion in production.

“PMI data showed that the Vietnamese manufacturing sector ended 2020 on a positive note, as the temporary blip from storm disruption in November gave way to growth in output, new orders and employment in December,” said Andrew Harker, associate director at IHS Markit, which compiles the survey.

“The average PMI reading over the fourth quarter was the highest of the year, suggesting building momentum heading into 2021. Firms are confident looking ahead to the coming year, with hopes that export demand in particular will recover should the Covid-19 pandemic be brought under control worldwide,” he noted.

New business increased for the fourth successive month, and at a solid pace that was faster than that seen in November. Improving customer demand was reported by panelists. Demand also strengthened in international markets. New export orders increased for the first time in three months.

Higher new orders fed through to increased production requirements, thereby encouraging firms to expand their staffing levels. December saw employment rise modestly for the second time in three months.

Rising production and expanded workforce numbers meant that firms were able to reduce backlogs of work, and to the greatest extent since August.

In line with the picture for output and employment, purchasing activity returned to growth in December. 

However, difficulties securing inputs and rising costs were a feature of the latest survey.

"The main issue hampering growth at present appears to be severe supply-chain disruption, often linked to the pandemic. Firms are finding it hard to source materials, particularly those from abroad. In turn, prices are rising sharply, with input costs up to the greatest extent in two and-a-half years," stated Mr. Harker.

Supply shortages, disruption caused by the Covid-19 pandemic and particular issues importing materials meant that suppliers' delivery times lengthened markedly. In fact, lead times increased to the greatest extent since the height of the pandemic in April.

These challenges in securing raw materials contributed to a sharp increase in input prices. Moreover, the rate of input cost inflation quickened for the fourth successive month and was the fastest for two-and-a-half years.

Output prices also rose at a faster pace in December, albeit one that was still much weaker than seen for input costs. The increase in charges was the steepest since July 2018.

Despite difficulties sourcing materials, Vietnamese manufacturers were able to achieve a marginal increase in stocks of purchases. On the other hand, stocks of finished goods declined as firms used inventories to help fulfil new orders.

Manufacturers remained confident that output would increase over the coming year, with respondents expecting less disruption from the Covid-19 pandemic. Reports suggested that this would be especially true for export demand, which was severely impacted during 2020.

Hanoi tourism earns $13 million in first 3 days of 2021

The city’s tourist destinations offered diverse services to attract visitors from January 1 to 3, 2021.

Hanoi welcomed nearly 120,000 visitors during the first three days of 2021, earning a total revenue of VND302 billion (US$13 million), according to the Hanoi Department of Tourism.

Among the visitors, the number of international arrivals to the city is estimated at 4,500, mainly foreigners who are on diplomatic or businesses purposes while the number of domestic travelers reached 114,000. On January 1, the city welcomed more than 39,000 visitors earning a revenue of VND100 billion (US$4.3 million). 

Compared to the same period of 2020, the number of tourists to Hanoi dropped 89% from January 1 to 3 due to the impact of Covid-19. Tourist sites in Hanoi offered services with reasonable prices on the occasion of the New Year to boost up visits. 

Typically, the Duong Lam ancient village welcomed 3,200 visitors, Hanoi Zoo in Thu Le Park received 5,000 people while the Hoa Lo Prison Relic hosted 1,700 arrivals and the Vietnam National Village for Ethnic Culture and Tourism received more than 7,300 visitors. 

At the Temple of Literature, the municipal Department of Tourism held a ceremony to welcome the first domestic tourist to Hanoi on January 1, 2021; the Vietnam National Village for Ethnic Culture and Tourism organized a program themed “Spring in mountainous markets”; the Vietnam Museum of Ethnology celebrated the "Happy Spring Festival for 2021” while the Bao Son Paradise Park hosted the Dino Kingdom Festival. 

Visitors to Hanoi were able to enjoy many special art programs to welcome the New Year within the opening ceremony for the expansion of the weekend walking space in the south of the Old Quarter area.

MPI proposes digital transformation program to enhance firms' competitiveness

The move will help Vietnamese enterprises to catch up with the global trend for digital transformation.

The Ministry of Planning and Investment (MPI) has submitted to the Government a supporting program for local enterprises, especially small and medium ones, to embark on the digital transformation this year.

“The move will help Vietnamese enterprises to catch up with the global trend for digital transformation, while laying a platform for them to strengthen linkage with others,” stated Vice Minister of Planning and Investment Tran Quoc Phuong at a press briefing on January 4, revealing the Government plan to boost economic development in 2021.

“A national digital transformation initiative is not limited to Government agencies, but on a large scale with a focus on the business community,” added Mr. Phuong.

According to Mr. Phuong, as local enterprises are going through the restructuring process, the application of digital technology is inevitable to ensure sustainable growth and prevent the risk of lagging behind regional and international peers.

 Minister and Chairman of the Government Office Mai Tien Dung at the press briefing. Photo: Nhat Bac. 
Minister and Chairman of the Government Office Mai Tien Dung said in order to establish digital government, economy and society, Vietnam will focus on addressing three major bottlenecks in legislation, technologies or the foundation for digital transformation, and high quality human resource traning.

In the first step of establishing an e-government, it is essential to transform the operation of the Government and replace paper-based document to e-document, along with providing online public services for people and businesses.

Mr. Dung informed after one year of operation, the national public services portal had received 100.5 million e-documents and 400,000 accounts from businesses.

Vietnam’s administrative reform efforts in 2020 helped save over 18 million working days, equivalent to VND6.3 trillion (US$275 million) per year, while the use of e-document by the Government cut VND148 billion ($6.4 million) in expenses.

Ninh Binh strives to host 7 million visitors in 2021

Ninh Binh province, a tourist destination in the north, is launching several measures to achieve its goal of welcoming 7 million arrivals this year, during which it hosts the National Tourism Year.

According to Director of the provincial Tourism Department Bui Van Manh, the department is giving recommendations to the local authorities on preparing for the year, assessing tourism service development projects, upgrading the local tourism portal to be trilingual (Vietnamese, English, and French), and launching promotion activities on social networks, among other activities. 

It is also working with the provincial tourism association to mobilise travel agencies’ engagement in demand stimulus activities and increase service quality, he added.

Ensuring related security and order, environmental sanitation, and COVID-19 prevention and control are also key tasks, noted the official.

According to statistics from the department, during the recent three-day New Year holiday, the province received more than 32,000 visitors. Most of them went to local renowned destinations like Trang An Landscape Complex – a world cultural and natural heritage site, Cuc Phuong national park, and Van Long submerged natural reserve.

Last year, it hosted 2.8 million tourists, equaling to just 37 percent of the 2019 figure. The reduction was largely due to the impact of the pandemic./.

Logistics costs see unprecedented rise due to lack of empty containers

The Import and Export Sub-Department, has received complaints from businesses and business groups about a shortage of containers that has led to an unprecedented increase in shipping tariffs, its deputy director Tran Thanh Hai has said.

The cost of transporting a container to EU countries now is around 10,000 USD as against a normal rate of 1,500-1,800 USD, he said.

The COVID-19 epidemic means EU countries and the US buy goods from East Asia but cannot return empty containers because of border closures, he explained.

Nguyen Dinh Tung, chairman and general director of fruit exporter Vina T&T Group, said there was a shortage of containers for shipping dry goods while the cost of shipping to the US has increased by nearly three times since last year.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said the lack of containers was because exports have been booming and ship crews taking them are quarantined on reaching foreign ports.

The Vietnam Logistics Business Association said part of the cause is that Vietnam is a trade surplus country. In the third quarter exports increased by 11 percent year-on-year, it said.

Besides, due to the weather, the transportation of empty containers back from the US, Japan and China has been difficult, it said.

The container scarcity usually peaks at the end of the year, and the Covid-19 pandemic has worsened the situation, it said.

To overcome the above situation, Vietnam Logistics Business Association depots should be tasked with repairing empty containers to reduce the waiting time for them, and ships should work closer with depots and accurately notify their empty containers situation, experts said.

Consignors needed to make use of containers efficiently and quickly so that they could be used by others, it added./.

HCM City targets higher exports by key earners in 2021

HCM City has set a goal of boosting the export of its key products this year and beyond via trade promotion activities and assistance to enterprises.

According to a recent survey of manufacturing-processing companies conducted by the municipal statistics office, 35.7 percent of respondents believe business and production will be better in the first quarter of 2021 than in the final quarter of 2020, while 29.9 percent predict that the number of export orders will increase and 44.5 percent believe numbers will remain stable.

Head of the statistics office Huynh Van Hung said COVID-19 has been largely brought under control around Vietnam, resulting in the production sector exhibiting signs of recovery. Local enterprises, however, continue to face difficulties as many major trading nations are yet to open their markets.

He noted that enterprises are in need of diverse and long-term support relating to information on importers of materials and fuel, new markets and partners, and domestic consumption stimulus measures.

According to Nguyen Phuong Dong, Director of the municipal Department of Industry and Trade, despite facing myriad challenges, last year the city still saw five goods post export turnover in excess of 1 billion USD: computers-electronic products and components, with 17.8 billion USD; garment-textile 4.3 billion USD; footwear 2.2 billion USD; machinery-equipment-spare parts 2.2 billion USD; and other goods 6.9 billion USD. Together their export value accounted for 83.5 percent of the city’s total.

Key export markets remained China, the US, and Japan. China imported 10.5 billion USD worth of goods from HCM City last year, up 23.7 percent year-on-year. Exports to the US and Japan, meanwhile, stood at 6.7 billion USD and 2.8 billion USD, down 0.2 and 16 percent, respectively, year-on-year.

Phan Thi Thang, Vice Chairwoman of the municipal People’s Committee, directed local departments and sectors to identify and introduce measures to attract FDI and official development assistance (ODA).

She highlighted the importance of improving the business climate; encouraging the establishment of new enterprises in industrial production, electronics, and IT; and building mechanisms for effective inter-sector and inter-region cooperation./.

HCM City aims for 33 million tourists in 2021

The southern largest economic hub of Ho Chi Minh City has set a target of welcoming 33 million tourists with total revenue of more than 100 trillion VND (4.33 billion USD) in 2021.

The municipal Department of Tourism on January 1, in collaboration with the city’s Tourism Association and Tan Son Nhat International Airport, held a welcome ceremony for the first visitors to HCM City in 2021.

Nine tourists departing from Hanoi and Con Dao on Vietnam Airlines flights VN7245, BL6025 and 0V8080 arrived in HCM City on New Year’s Day.

Ten other passengers on Vietjet Air VJ127 and Bamboo Airways QH203 flights came from Hanoi.

The first visitors to land in HCM City received round-trip domestic flight tickets and travel vouchers, along with multiple discounts from travel agencies and tourism services in HCM City.

Director of the city’s Department of Tourism Nguyen Thi Anh Hoa said the welcome ceremony is one of the key activities promoting the annual campaign “Thanh pho Ho Chi Minh xin chao - Hello HCM City”.

“The tourism industry in HCM City looks forward to efficient control of the COVID-19 pandemic from authorities. 2021 is expected to be the year of recovery for the domestic market and reopening of the international market in the following years. The first visitors this year mark the beginning of HCM City’s goal to reach 33 million tourists in 2021,” she said.

Hoa added that in an effort to develop HCM City to become a leading tourism city in Asia, the department has planned new tourism products and events to attract more visitors.

Some notable events include the 8th HCM City Ao dai Festival and HCM City Tourism Day, along with tours at old Sai Gon’s relics.

Last year, the city's tourism market suffered greatly from the COVID-19 pandemic. The total number of international visitors to HCM City in 2020 was 1.3 million, down 84.8 percent year on year, while the number of domestic travellers to HCM City was 15.8 million, a decrease of 48.4 percent year on year.

Total tourism revenue was estimated at 84.5 trillion VND (3.66 billion USD), down 39.6 percent compared to 2019./.

Government mulls roadmap to reopen economy post-COVID-19

Minister and Chairman of the Government Office Mai Tien Dung answered questions about the roadmap for reopening the economy following the COVID-19 pandemic and about national digital transformation during a Government press briefing in Hanoi on January 4.

He said that with a number of free trade agreements (FTAs) signed, Vietnam is opening its economy to the world but issues have arisen from the pandemic, such as a lack of containers to transport goods.

The Government therefore assigned the Ministry of Transport to improve the quality of Vietnam’s ocean-going vessels to address disruptions in trade.

Deputy Minister of Planning and Investment Tran Quoc Phuong said the ministry was asked to work with other relevant agencies to draft measures in support of the economy, businesses, and people hit by COVID-19, to be submitted to the Government and PM.

He affirmed that such measures will be announced when they are ready.

Regarding the resumption of passenger transport services, Phuong said this should be done with an abundance of caution to ensure safety because the pandemic remains a complex matter worldwide.

A programme will be launched this year, he said, to help enterprises take advantage of the opportunities from digital transformation.

In regard to perfecting relevant mechanisms, Dung said e-Government will address issues such as information digitalisation and privacy, thus recognising the legal value of electronic documents./.

Tien Giang eyes 3.25 billion USD in 2021 export revenue

The Mekong Delta province of Tien Giang has set a target of earning 3.25 billion USD from exports in 2021, a year-on-year increase of 8.3 percent, according to Acting Director of the provincial Department of Industry and Trade Dang Van Tuan.

Local businesses have been called upon to capitalise on traditional markets and at the same time seek new ones, especially those with high export growth that Vietnam has signed free trade agreements (FTAs) with.

They have also been asked to channel investment into modern equipment and further foster the implementation of the export-import strategy for 2011-2020 and a vision to 2030.

The provincial industry and trade sector will bolster the dissemination of information regarding new generation FTAs to support exports.

In the time to come, Tien Giang will pay attention to simplifying procedures regarding the issuance of certificates of origin and arrange courses on rules of origin in FTAs to help enterprises remain updated on regulations and seize opportunities brought about by trade deals, in an attempt to gain a foothold in export markets and attract foreign currency, Tuan said.

The province will work to improve State management in trade and services at large, and exports in particular, along with trade promotions for export items and also job creation.

It will also better its investment climate and provincial competitiveness index to facilitate exports.

Tien Giang posted export turnover of 3 billion USD last year, equal to 88.2 percent of the target and down 8.1 percent from 2019 due to the COVID-19 pandemic.

Industrial goods accounted for the lion’s share, with 76.5 percent.

Bronze pipe enjoyed high export growth, raking in 601.5 million USD, up 5.7 percent against 2019, while rice exports nearly doubled to 131.8 million USD. Exports of footwear, meanwhile, inched up 1 percent to more than 450 million USD.

Major export markets included countries in the Americas, Europe, and Northeast and Southeast Asia./.

Gov’t issues Resolution on 2021 socio-economic development

The Government has recently issued Resolution No.01/NQ-CP on key measures to carry out the 2021 socio-economic development plan and State budget estimate.

According to the Resolution, the year 2020 was considered more successful than 2019 and the most successful in the past five years. Despite the serious impacts of the COVID-19 pandemic and natural disasters, the country fulfilled the twin goal of fighting the pandemic and restoring socio-economic development, ensuring social welfare and achieving economic growth of 2.91 percent.

About eight directions, the Government will make thorough preparations for the successful organisation of the 13th National Party Congress and election of deputies to the 15th National Assembly and the People’s Councils at all levels for the 2021-2025 tenure.

It will take drastic actions to effectively realise the 2021-2025 socio-economic development plan and 2021-2030 socio-economic development strategy.

The Government will synchronously and effectively combine fiscal, monetary and other policies to stimulate demand, tackle difficulties in production and trade, promote growth while maintaining socio-economic stability and controlling inflation, stepping up economic restructuring in tandem with renewing growth model.

It will continue improving the quality of socialist-oriented market economy institutions, discipline and effectiveness in building and completing the legal system, renewing national governance in a modern way, building a streamlined, efficient and effectively law-governed socialist State, as well as enhancing the efficiency of the fight against corruption, wastefulness and the settlement of complaints and denunciations.

About administrative reform, focus will be given on ensuring efficiency in combination with speeding up national digital transformation, supplying public services to create a pro-business environment, thus promoting start-ups and innovation.

At the same time, the Government will strongly uphold cultural value and brainpower of the Vietnamese people, provoke aspiration for national development and pride, push forward basic and comprehensive reform of education-training, develop high-quality human resources and science-technology to make breakthrough in improving economic competitiveness, hasten the transfer and mastery of new and strategic technologies, ensuring social welfare and improving people’s lives; strengthening natural resources management, environment protection and fight against disasters and epidemics in adaptation with climate change.

The Government will continue perfecting a synchronous and modern socio-economic infrastructure, especially in transportation, energy, major urban development, climate change response; strongly develop digital infrastructure to lay a foundation for digital socio-economic development. It will also step up the progress of key projects and works of national importance, regional connectivity projects, ensure the security of water resources and safety of water reservoirs, and uphold the role of key economic regions and major urban areas.

Together with the task of ensuring national defence-security, the Government will boost external activities and global integration; firmly safeguard independence, sovereignty and territorial integrity and an environment of peace and stability for rapid and sustainable development; improve the country’s stature on international arena.

The Government is set to well perform communications to strengthen public trust and consensus, uphold the power of great national unity and accomplish set socio-economic targets.

On 11 key measures, the Government will continue flexibly and effectively fulfilling the dual goal of fighting the pandemic and developing socio-economy in a new normal status.

It will also develop marine-based economy, hasten new rural development, improve the efficiency of mass mobilisation and enhance coordination with the Vietnam Fatherland Front, socio-political and mass organisations, among others.

Next year, the Government set the goal of achieving the growth of 6.5 percent in gross domestic product, increasing labour productivity by nearly 4.8 percent and health insurance participation to around 91 percent. The rate of multi-dimensionally poor households is expected to fall by 1-1.5 percent.

Over 90 percent of urban dwellers will be given access to clean water while around 91 percent of industrial and processing areas will have concentrated wastewater treatment systems. The forest coverage will reach about 42 percent./.

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