The stock market witnessed a sharp decline in the last week of June, marked by strong net selling from foreign investors, who have been net sellers for the past five quarters.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index closed last week at 1,245.32 points, while the HNX-Index on the Hà Nội Stock Exchange (HNX) ended at 237.59 points.

Both benchmark indices recorded weekly losses, with the former down 36.7 points or 2.86 per cent and the latter dropping 6.77 points or 2.77 per cent.

Liquidity on HoSE saw a significant drop, with the market's trading value reaching VNĐ17.6 trillion per session (US$690 million), reflecting a 10.6 per cent decrease from the previous week.

Foreign investors showed no signs of slowing down, continuing to net sell nearly VNĐ4.5 trillion in the last week of June, with FPT shares and FUEVFVND fund certificates accounting for over 70 per cent of the sell-off.

According to statistics, foreign investors have been net sellers for the past five quarters, particularly in the first half of 2024, likely due to the pressure of capital withdrawal as the exchange rate remains high. Since the beginning of the year, the estimated net selling value has reached nearly VNĐ45 trillion ($1.8 billion). The foreign ownership ratio in the stock market is currently at 17.5 per cent, down about 0.75 per cent from the end of 2023.

Although market volatility may persist in upcoming sessions, as long as the support zone of 1,250 - 1,270 points is maintained, the short-term trend remains stable, with 1,300 points being the nearest target. Analysts at Saigon-Hanoi Securities (SHS) recommend that short-term investors continue to hold their existing positions and maintain upward momentum. Additionally, adjustments around the strong support zone present opportunities to optimise stock accumulation, especially in stocks with strong momentum and significant growth potential.

In the medium term, the VN-Index, after experiencing selling pressure at the upper trend line around the 1,300-point region, is now under pressure to retest the area around 1,250 points. Given the negative performance at the end of the second quarter of 2024, the VN-Index is expected to recover and test the 1,255-point level, corresponding to the peak in September 2023. If it fails to break above this level, the VN-Index may enter a less positive accumulation phase within the range of 1,190 points - 1,200 points to 1,245 points - 1,255 points.

As the market transitions into the third quarter and awaits the release of second-quarter business results and GDP growth data in July 2024, it will be a sensitive period for investors. This is especially true as the general market trend for the VN-Index appears to be weakening below the psychological resistance level around 1,250 points.

In addition to factors such as global geopolitical tensions, inflationary pressures, exchange rates, and persistent foreign net selling despite ongoing economic growth and stable low-interest rates, short-term investors should maintain positions below the average level. Mid- to long-term investors should hold their current portfolios and consider increasing new positions, awaiting second-quarter business results and cautiously evaluating the full-year prospects of leading companies.

Regional connectivity levers economic growth

Regional connectivity is seen as a key to bolster growth as well as create breakthroughs for the socio-economic development in localities and the country as a whole, according to insiders.

The economy has recorded robust signs over the past time, with localities posting positive gross regional domestic product (GRDP) growth.

The northern province of Bac Giang has stood out thanks to its breakthrough GRDP growth of 14.14%, and industrial production expansion of 26.64% in the first half of the year, which were spurred by the investments of the large producers like Foxconn, Luxshare, ICT, Fukang and Hana Micron.

Other cities and provinces with good GRDP growth include Khanh Hoa (12.73%), Quang Ninh (9.02%), Nam Dinh (8.56%), Binh Dinh (7.6%), Ho Chi Minh City (6.46%) and Hanoi (6%).

With their rosy growth, the localities will help the Vietnamese economy sustain its growth momentum and overcome the concerns of lagging behind its international peers, Minister of Planning and Investment Nguyen Chi Dung said at the Government’s monthly meeting in May.

He proposed an array of solutions to boost economic recovery, including promoting traditional growth motives, capitalising on new ones that come from the digital economy, circular economy and new production areas such as semiconductors and AI.

His ministry has reiterated the necessity to carry out regional masterplans and enhance regional connectivity which is seen as a key to stimulate growth.

“Regional connectivity is an essential trend, allowing regions to support and capitalise on their strengths and potential to generate bigger values”, Dung stressed.

Last month, the Prime Minister signed decisions on the issuance of the masterplans for the Red River Delta, Southeastern region, Central Highlands, northern midland and mountainous region, and north central and central coastal region following the first one for the Mekong Delta approved two years ago.

Coordinating councils of the economic zones were established while promotion activities have been carried out to lure inter-regional investments.

According to Dung, one year after implementing the Politburo’s resolution on the socio-economic development and defence and security in the north central and central coastal region until 2030 with a vision to 2045, the region has witnessed positive changes in its economy, with GRDP in 2023 growing 5.51% and the figure in the first quarter of 2024 being 6.27%.

Among its 11 important projects, the region has completed three airports and one seaport, he added./.

Garment, textile industry urged to make change to adapt to new challenges

Garment and textile enterprises must develop new management methods and renew their production technologies to well adapt to new challenges like small and rapid orders as well as labour shortages, experts have said.

Speaking at a ceremony held to globally launch the Arus overlock machine from China-based Jack Technology in Ho Chi Minh City on June 16, Nguyen Thi Tuyet Mai, Deputy General Secretary of the Vietnam Textile and Apparel Association, said though businesses have large orders, they are facing new challenges.

For instance, customers are more likely to place low-priced small orders with quick turnaround times or demand a more diverse range of products to choose from.

Markets such as the EU and the US have strict requirements in terms of green production, she said.

The industry is also facing a labour shortage, needing around 500,000 people for manual labour, managerial and designing roles.

She said Vietnamese businesses need to streamline their operations, adopt new technologies and apply automation to enhance quality and be able to fulfil small orders.

According to Jack Technology, when textile and garment customers are placing small orders with rapid deadlines, businesses stuck with old production methods will struggle.

Tran Chi Gia, Director of Meko Garment Joint Stock Company, said his buyers are more likely to pay less for manually produced items, and his company has problems hiring young workers while the productivity of older employees is slowly falling.

His business is focusing on upgrading production, replacing old technologies with new, automating, and investing in product design to help it fulfil small high-value orders.

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), said the industry targets exports of around 44 billion USD in 2024. As of the end of May, it had already exported over 15.8 billion USD worth, up 4.3% year-on-year, he said.

This was owed to large markets such as the US and Europe being able to control inflation, driving up demand, he said.

Vietnam’s textile and garment businesses have also been proactive in diversifying markets and finding new customers./.

Middlescents, an untapped consumer market: research

Middlescents represent a largely untapped consumer market for numerous businesses, experts said.

The term "middlescents" refers to individuals born between 1965 and 1980, comprising over 31 per cent of the global population. With unique consumer preferences and considerable purchasing power, middlescents present an attractive target audience that can be strategically engaged.

A recent research collaboration between data and consultancy companies Kantar and Visa has shown that this generation leads in terms of spending compared to other age groups. 

Despite their sizable numbers and financial capacity, a significant portion of middlescents is often overlooked and underserved by brands, indicating a promising untapped market segment, according to the research that involved 1,150 respondents in Việt Nam.

The research further reveals that in Việt Nam, 84 per cent of middlescents are inclined to spend on personal hobbies and interests, slightly surpassing the Asia Pacific average of 82 per cent. Additionally, 80 per cent of Vietnamese respondents are planning to increase expenditures on out-of-home leisure activities in the next 12 months. Furthermore, 47 per cent are considering indulging in a well-deserved vacation, while 58 per cent are interested in investing in premium products and services.

“Middlescents expectations include a digital payments journey that is intuitively customised, seamless, and secure. Although they are influenced by the younger generations' embrace of digital payments, middlescents also have the capacity to guide and inspire these younger cohorts in their own unique ways," said Dung Đặng, Visa country manager of Vietnam and Laos.

Although the term "middlescence" was coined six years ago, the specific needs of this age group have only recently gained increased attention. As individuals from Generation X transition into middle age, they undergo significant changes in health, career, and familial dynamics, reminiscent of a second adolescence.

This pivotal life stage is marked by a renewed emphasis on personal interests that may have been sidelined due to work and family obligations. With newfound personal time, middlescents are exploring their identities and planning travel experiences tailored to their and their families' preferences.

During this phase, middlescents prioritise self-discovery and seek unique experiences that reflect their individuality and authenticity. Embracing AI and technology for travel planning, they leverage the increasing accessibility and simplification of travel options.

Many middlescents are comfortable spending extended periods in immersive digital environments, as noted by 51 per cent of Vietnamese respondents, with 49 per cent expressing interest in using virtual reality or augmented reality for shopping. This trend offers significant opportunities for businesses to adapt to evolving customer preferences in digital commerce and payments. 

Vietnam's ports prepare to welcome largest container ships

Gemadept Group said it will continue to invest in expanding Gemalink International Port in Bà Rịa-Vũng Tàu Province and Nam Đình Vũ Port in Hải Phòng City.

Accordingly, the group is completing related procedures and arranging capital to start construction on Phase 2 of Gemalink Port in November 2024 and will be ready to operate from December 2025.

This project has a total investment of about US$300 million. Once completed, the total design capacity of the port will reach 3 million TEU, the highest level compared to other major competitors in Southeast Asia, Gemadept Group's leadership said.

Once completed, Gemalink port is expected to receive ships of up to 250,000 DWT, the largest container ship size in the world today, creating a competitive advantage in the region. Thereby, the port will be able to attract more large customers, especially ships with a tonnage of 100,000 DWT or more.

For Phase 3 of Nam Đình Vũ Port project, the project is expected to start construction in July 2024 with total investment of VNĐ2.5 trillion ($101.9 million). This project is expected to be completed in the second quarter of 2025, helping to increase the total capacity of the port to 2 million TEU, becoming the largest and most scaled river port in the North of Việt Nam.

Gemadept Group said it will also complete the Hà Nam canal dredging project. This project will bring benefits to the entire port business community in Hải Phòng and the capacity of Nam Đình Vũ Port will increase by about 300,000 TEU.

In addition, the serious congestion of Singapore Port is bringing opportunities to Vietnamese businesses as a number of ships of major shipping lines have diverted to Gemalink Port.

If the congestion lasts, the goods transfer centre will change from Singapore to other places, including Bà Rịa - Vũng Tàu.

At the same time, ports in Hải Phòng also benefit from being a goods transshipment centre with China, according to Gemadept Group's leadership.

Amendment needed to key law to encourage sustainable and efficient agriculture: insiders

Over the past decade, a key tax law has revealed many shortcomings, causing significant impacts on Việt Nam’s agricultural sector – a key pillar of the economy. Experts and businesses have called for timely and effective changes to address these issues, support farmers and businesses and move towards sustainable agriculture.

The Law No. 71/2014/QH13, issued on November 26, 2014, amending and supplementing certain provisions of the Tax Law, provides a VAT exemption for fertilisers.

Nguyễn Văn Phụng, former Director of the Large Enterprise Tax Management Department at the General Department of Taxation, noted that in 2008, the National Assembly passed the VAT Law with three rates: zero per cent, 5 per cent and 10 per cent. Fertilisers and specialised agricultural machinery were taxed at 5 per cent. However, during the economic crisis in the Asia-Pacific region in 2008 and the subsequent difficulties Việt Nam faced, policymakers had to find ways to support the agricultural sector.

Many scientists and industry associations recommended lowering the VAT on agricultural inputs, including fertilisers, to reduce costs for farmers and benefit producers.

During discussions, the National Assembly considered reducing the VAT rate on agricultural inputs from 5 per cent to a non-taxable status due to the lack of data proving whether a 5 per cent or non-taxable rate was more beneficial. In 2014, the Assembly amended Law No. 71 to exempt fertilisers and specialised agricultural machinery from VAT.

After implementation, the law exhibited several issues. Domestic fertiliser prices didn't decrease but increased, limiting production and business activities, hampering investment projects in fertiliser production and causing difficulties for businesses and farmers.

Phụng Hà, Vice Chairman and General Secretary of the Vietnam Fertiliser Association, highlighted the difficulties faced by fertiliser manufacturers due to the inability to deduct VAT on input goods and services. This increased production costs and reduced profits, disadvantaging domestic producers against imported fertilisers. Additionally, the inability to deduct input VAT discouraged investment in new, high-quality  fertiliser products.

Fertilisers account for 40-60 per cent of agricultural production costs and if these costs could be deducted, the overall product cost would decrease, he said.

On the other hand, Law No. 71 exempts imported fertilisers from VAT, benefiting foreign manufacturers exporting to Việt Nam.

Annually, Việt Nam's agriculture consumes 11-12 million tonnes of fertilisers, with about eight million tonnes produced domestically. The rest are imported, creating unfair competition due to VAT exemptions abroad.

According to economist Ngô Trí Long, the lack of VAT deductions makes domestic fertilisers less competitive. Foreign enterprises benefit from reduced import duties in Việt Nam under free trade agreements, allowing them to lower fertiliser prices and compete with domestic producers, even those using outdated technologies. This not only hampers domestic fertiliser production but also negatively impacts agricultural products and the environment.

Long-term dependence on imported fertilisers cannot sustain agricultural development and harms the relationship between industry, agriculture, farmers and rural areas, affecting national food security, Long said.

He claimed that without tax policy changes, domestic companies might shift their business strategies, conceding market share to cheaper, lower-quality imported fertilisers, posing a significant threat to Việt Nam's agriculture and agricultural exports.

Nguyễn Trí Ngọc, Vice Chairman of the Vietnam Fertiliser Association, noted that 60 per cent of imported fertilisers come from Russia and China, with VAT rates of 20 per cent and 11 per cent, respectively. Countries like Malaysia, Indonesia and Thailand also tax fertilisers at around 8 per cent.

With agricultural export value of US$55 billion annually, Ngọc said Việt Nam needs refined support policies, particularly tax policies, to sustain this sector.

Both experts and businesses have proposed reinstating a 5 per cent VAT rate for fertilisers and specialised agricultural machinery to encourage investment and reduce costs.

Nguyễn Hoàng Trung, Deputy General Director of DAP - Vinachem, affirmed that amending Law No. 71 to tax fertilisers would benefit domestic producers by lowering input costs, reducing product prices and increasing market competitiveness. This would also provide resources and incentives for investment in technology and production scale, leading to high-quality fertiliser products for farmers.

At the National Assembly’s session on the draft Value Added Tax (VAT) Law amendments on June 24, Minister of Finance Hồ Đức Phớc emphasised that VAT has a broad regulatory scope covering nearly all goods and services. Therefore, this law is complex and impacts the interests of many producers and businesses. Consequently, amending provisions in the draft must ensure production and trade development in accordance with established tax strategies.

The drafting committee rigorously studies and assesses the impact of each VAT policy to encompass revenue sources, expand tax bases and align with international practices, Phớc said.

Regarding fertilisers, he noted differing views suggesting tax exemption versus a 5-per-cent tax rate. Previously, fertilisers were taxed, then exempted and are now being considered for taxation again. The drafting committee will need to reassess the impacts and present them to the National Assembly at the year-end session. 

Vietnam, Singapore eye to boost seafood trade

Vietnam and Singapore have potential and advantages to promote fisheries cooperation, industry insiders said at a conference connecting fishery businesses of Vietnam and Singapore in Ho Chi Minh City.

The event was organised by the Vietnam Association of Seafood Exporters and Producers (VASEP), the Vietnam Trade Office in Singapore and Ho Chi Minh City’s External Affairs Department.

VASEP Deputy General Secretary To Thi Tuong Lan told the conference that Vietnam's fisheries industry is focusing on developing high-added-value processed products.

She noted that Vietnam has the advantage in farming, processing and exporting shrimp and tra fish. Meanwhile, with a large number of tourists, Singapore has an increasing demand for high quality products.

Although Singapore is a small consumer market, it is an important gateway for Vietnamese goods in general and seafood in particular to reach many other countries in the region and the world, Lan said.

While Vietnam has strengths in production and processing, Singapore businesses have very good international trade skills.

Moreover, both Vietnam and Singapore are members of many free trade agreements in the region and the world, and their close geographical locations are very convenient for transportation. Therefore, Vietnamese businesses can take advantage of trade cooperation with Singaporean businesses to access other markets, Lan said.

Cao Xuan Thang, head of the Vietnam Trade Office in Singapore, said that Vietnamese seafood is becoming more visible in Singapore and has received good feedback from consumers there.

According to Thang, once Vietnamese seafood businesses can connect with Singaporean partners, Vietnamese products have great opportunities to reach other markets.

President of Seafood Association Industries Singapore (SIAS) said that the cooperation of Singaporean and Vietnamese businesses will not only contribute to increasing trade turnover between the two countries but also promote the development of seafood business and distribution networks in the region, helping Vietnamese seafood reach more markets in the world./.

Biometric authentication to play role in bank scam fight

It is an urgent need to strengthen security for online transactions amidst burgeoning cashless payments, an official from the central bank has said, referring to biometric authentication to be mandatory from July 1.

Under a decision of the State Bank of Vietnam (SBV), each online transaction worth above 10 million VND (392.65 USD) or daily transactions exceeding 20 million VND will require biometric information.

Biometric authentication uses biological identifiers such as fingerprints, irises, voices, and facial features, and is considered the most secure from frauds. The regulation is to foster security for bank accounts and prevent financial frauds which are on the rise in Vietnam.

Pham Anh Tuan, Director General of the SBV’s Payment Department, said Vietnam counts 182 million personal payment accounts, with more than 87% of adults owning at least one, adding the number of payments via QR codes has skyrocketed over the past time.

Experts have warned that traditional authentication methods using passwords and one-time password (OTP) are not strong enough against cyberattacks. Meanwhile, they said, biometric security will be matched to data stored in the national ID database.

Therefore, the biometric solution will make it easier for service suppliers and the central bank to manage accounts and transactions, they noted.

Apart from limiting virtual bank accounts, this type of authentication will help competent forces trace criminals and recover money from cyber scams, said Vu Ngoc Son from the National Cybersecurity Association.

Domestic banks have been sending their customers notifications and reminders to update their biometric registration in anticipation of the new rules.

According to Major General Nguyen Van Giang, Deputy Director of the Department of Cyber Security and High-Tech Crime Prevention (A05) under the Ministry of Public Security, in 2023, the total amount of money lost to online scams was estimated to be around 8-10 trillion VND, a 1.5-fold year-on-year increase.

Up to 91% of these fraudulent activities were related to financial schemes, with 73% of mobile device and social media users frequently targeted by scam messages and calls.

Against the backdrop, the department has advised people to stay vigilant, avoid risky actions like clicking on strange links and selling bank accounts, and use multi-factor authentication./.

SelectUSA connects Vietnamese, US enterprises

Representatives of over 70 Vietnamese enterprises, the biggest-ever number, attended the SelectUSA Investment Summit 2024 held in Maryland state last week.

These are businesses that have been investing or planning to invest in the US in various fields such as software, information technology, construction, logistics, transport, food and agriculture.

The SelectUSA Investment Summit is the highest profile event in the US to facilitate business and investment by connecting thousands of investors, companies, economic development organisations (EDOs), and industry experts to make deals happen. Hosted by the US Department of Commerce (DOC), the summit is a one-stop shop for companies considering expanding to the US and provides EDOs with the opportunity to meet directly with international companies to facilitate investment deals.

At a seminar connecting the two countries’ firms organised by the Vietnamese Embassy on June 24 evening, Vietnamese enterprises attending the 10th summit heard US businesses and Vietnamese enterprises with investment experiences abroad and in the host country sharing and discussing cooperation opportunities and related regulations in the US.

Vietnamese Ambassador to the US Nguyen Quoc Dung assessed that the big number of Vietnamese enterprises attending at the SelectUSA event showed the outstanding development of the two countries’ relations, reflecting Vietnam's development and international integration, as well as demonstrating the desire of Vietnamese companies to reach out to the international market.

Pamela Phan, Deputy Assistant Secretary for Asia at the DOC, said Vietnam was the US’s 9th important trading partner in 2023, affirming that the US will assist and create favourable conditions for Vietnamese enterprises when they do business and make investment in the US.

US Ambassador to Vietnam Marc Knapper stated that the two countries’ upgrade of their relations to a comprehensive strategic partnership has created more advantages for bilateral economic and trade ties, and encouraged Vietnamese businesses to invest in the US and benefit from investment promotion programmes, including the SelectUSA Investment Summit./.

Programme under review to support Vietnamese enterprises in Bac Ninh

A conference was held to review the implementation of a Memorandum of Understanding (MoU) on tripartite cooperation between the Ministry of Industry and Trade (MoIT), the People's Committee of Bac Ninh province, and Samsung Electronics Vietnam Co., Ltd. regarding a programme to support Vietnamese enterprises in Bac Ninh.

Signed in September 2020, the MoU aims to increase the annual contribution ratio of Vietnamese enterprises operating in Bac Ninh to the industrial production value generated by Samsung through implementing advisory and supplier development programmes.

Pham Khac Nam, Deputy Director of the provincial Department of Industry and Trade said the support initiatives have yielded positive results.

The manufacturing capacity of Vietnamese businesses has significantly improved, boosting exports, and joining value chains of FDI enterprises, especially Samsung, he said.

As of late 2023, there were 39 out of 340 Vietnamese suppliers joining Samsung’s supply chain.

Participants highlighted the significance of the programme for businesses specialising in supporting industry in Bac Ninh and Samsung in particular. In this format, Vietnamese enterprises gain access to scientifically organised production methods, receive direct support in building on-site quality management systems and training key personnel in factories on measures to improve quality and ability to expand production.

Meanwhile, businesses participating in support programmes to develop smart factories have been trained to strategise and establish a continuous roadmap towards a smart factory model. The digitalisation and automation management solutions directly transferred by Samsung experts have significantly transformed both management systems and production facilities.

Duong Minh Hai from the Kim Sen Industrial Corporation said the consultancy support programmes for improving and developing smart factories have helped instil good habits among employees, thus enhancing production efficiency and applying scientific and technological advancements into management and production operations.

Kim Tea Hoon, Deputy General Director in charge of the Samsung Vietnam Purchasing Centre, said many outstanding enterprises in Bac Ninh have benefited from Samsung's manufacturing experience through deep consultancy activities.

He said that in 2024, Samsung Vietnam will continue to provide consultancy services related to the development of smart factories for five enterprises in Bac Ninh to develop advanced factories with comprehensive production process management through software.

He also affirmed Samsung Vietnam’s commitment to continuously share expertise to support enterprises in Bac Ninh in enhancing their competitive capabilities to meet global standards.

Deputy Chairman of the provincial People's Committee of Bac Ninh provinc, Dao Quang Kha, said cooperation programmes have proven effective, helping enterprises in Bac Ninh and domestic firms in general increase development opportunities and deeper integrate into global supply chains, thus promoting socio-economic development./.

Hung Yen egg-shaped lychees sell well

Egg-shaped lychees from the northern province of Hung Yen are much sought-after and sell quicky despite the high prices of about 150,000 VND (5.9 USD) per kg.

Lychee farmers in Hung Yen are rushed off their feet these days harvesting their egg-shaped lychees. The size of chicken eggs and with a nice appearance and sweet aroma, the lychees have won favour among consumers from far and wide. Locals said this year's output decreased due to unfavourable weather, but the prices have stayed high.

Mai Van Quyet, Director of Quyet Tien agricultural cooperative, Phan Sao Nam commune, Phu Cu district said that the cooperative has more than 60 hectares of egg-shaped lychees certified to meet VietGAP standards with an estimated output of 100 tonnes.

Hung Yen province is now home to over 1,300 hectares of lychee, which mainly concentrate in Phu Cu and An Thi districts, producing more than 250 tonnes each season. The trademark of Hung Yen egg-shaped lychee has been certified by the Intellectual Property Office of Vietnam, under the Ministry of Science and Technology in 2020 and the fruit was ranked a four-star product under the One-Commune-One Product (OCOP) programme by the provincial People’s Committee.

Vice Chairman of the People's Committee of Phu Cu district Vu Xuan Thuy said that in the 2024 crop year, Phu Cu early lychees and Hung Yen egg- shaped lychees are in season from the end of May and early June, 10-15 days earlier than other lychees on the market. The output of lychee in 2024 in the district is estimated at 13,500-14,000 tonnes.

According to the Vice Chairman, in an attempt to improve the brand and value of lychee products, in recent years, the district has actively organised several programmes to help boost consumption of lychees and agricultural products of the locality. This is an opportunity for local farmers and cooperatives to promote production, access more distributing points to reach domestic and foreign consumers. Therefore, over the years, Phu Cu early ripening lychees and Hung Yen egg-shaped lychees have always been popular with businesses, traders and consumers near and far.

In the coming time, the district will continue to convert rice land to crops with high economic value associated with the implementation of mechanisms and policies to support farmers, with a focus on planting egg-shaped lychees in communes in the northern area of the province and early-ripening lychees in the southern area. At the same time, the district will continue to build brands and trademarks for key agricultural products; use traceability stamps to protect the locality’s brand and maintain the quality and reputation of the products.

Besides, the district will also form links from production to processing, preservation and sales to create production stability.

According to Nguyen Huu Long, Chairman of the People's Committee of Phan Sao Nam commune, Phu Cu district, in order to popularise Hung Yen’s egg-shaped lychees, in the coming time, the locality will continue to invest in rural roads; renovate and upgrade drainage canals and ditches system to serve the lychee planting area while actively transferring science and technology to farmers to preserve the locality’s specialty./.

Vietnam Airlines launches Hanoi - Chengdu air service

National flag carrier Vietnam Airlines has launched a direct air route linking Hanoi with China’s Chengdu city, with a frequency of four flights a week, on Tuesdays, Wednesdays, Fridays, and Sundays.

This route is an important part of Vietnam Airlines' strategy to expand its international flight network, making it easier for tourists to travel between Vietnam and China.

On this occasion, Vietnam Airlines is offering a promotional programme with attractive round-trip ticket prices from only 5.635 million VND (221.2 USD), applicable to flights from Hanoi to Chengdu.

The programme applies to tickets purchased between now and July 31, 2024, for journeys departing from June 25 to July 31 this year. Tickets are available on the website, mobile application, ticket offices, and official agents of the carrier./.

H1 tariff revenue of Quang Ninh rises 21%

The northern province of Quang Ninh estimates that more than 9.4 trillion VND (nearly 369.3 million USD) in export and import tariffs will be collected for the state budget during the first half of 2024, up 21% year on year.

The provincial Customs Department said the sum is equivalent to 76% of this year’s target.

In particular, the customs sub-department at Cam Pha Port has collected an estimated over 4 trillion VND for the budget, representing more than 60% of this year’s target.

Head of the sub-department Ngo Xuan Hiep said the coal import volume surged during the first months of 2024, so revenue from this commodity makes up over 90% of his unit’s total collection.

Coal imported via Cam Pha is predicted to reach 17 - 20 million tonnes this year, he noted.

The Quang Ninh Customs Department was assigned to collect more than 13 trillion VND for the state budget in 2024.

To that end, it will continue ordering its subordinate units to take drastic actions, including reviewing the revenue sources that still have room to be tapped into, and preventing losses.

The department is coordinating with authorities at border gates to effectively take measures for attracting businesses, increasing the volume of goods traded through the province, accelerating customs clearance, and facilitating export and import via border gates and crossings. It will also perfect and improve working groups’ capacity to better give guidance to and settle obstacles facing businesses, the department added./.

Policy on security in online banking service provision drafted

The State Bank of Vietnam (SBV) has finalised a draft circular on safety and security in providing online services in the banking industry.

Under the draft circular, the online banking system must comply with the Government’s current regulations on ensuring the information system security at Grade 3 or higher.

According to the Law on Cyberinformation Security 2015, classification of information systems by security grade means the determination of information security grades of information systems in an ascending order from 1 to 5.

Grade 3 means that when an information system is sabotaged, it will seriously harm production, public interests and social order and safety or will harm national defence and security.

According to the draft circular, the online banking system must also ensure the confidentiality and integrity of customer information and the availability to provide services continuously.

Customer transactions must be assessed for minimum risk according to each customer group, transaction type and transaction limit to enable the provision of appropriate forms of transaction authentication for customers.

The draft circular requires banks to carry out annual security and confidentiality inspections and assessments of the online banking system.

In addition, banks must regularly identify potential risks and determine the causes of the risks in providing online banking services to promptly take measures to prevent, control and handle those risks.

Information technology infrastructure and equipment that are used to provide online banking services must have copyright and origin. For equipment that is nearing the end of its product life cycle and will no longer be supported by the manufacturer, banks must have an upgrade and replacement plan according to the manufacturer's announcement to ensure the equipment to be installed with new software versions.

Besides having firewalls and monitoring and warning systems against unusual behaviour, banks must also establish a mechanism to detect and prevent intrusions and network attacks on their online banking system, according to the circular drafts.

According to Tran Quang Hung, Deputy Director of the Ministry of Information and Communications’ Information Security Department information security in the banking system plays an important role.

With a large amount of bank and customer data, the security of customer information in particular and banking data in general is mandatory for all credit institutions. Therefore, banks need to be equipped with modern technology and constantly strengthen their capacity as well as invest in security.

Sharing that view, Phan Viet Linh, Director of CDNetworks Vietnam, said the speed of digital transformation in the finance and banking sector in Vietnam was accelerating.

At the same time, banks often face attacks from high-tech criminals attempting to steal customer data to conduct property appropriation fraud. Therefore, banks must strengthen defence measures to ensure safety and security in their systems./.

France’s Thales Group wants to strengthen collaboration with Vietnam

France’s Thales Group, which has 30 years of presence in Vietnam, has shown its interest in expanding its cooperation with the Southeast Asian country in the field of defence radar – its leading technology product.

Thales, a global technology leader operating in defence & security, aeronautics & space, and cybersecurity & digital identity, has provided technical solutions in both civilian and military aspects for Vietnam. It has cooperated with the national flag carrier Vietnam Airlines and the Vietnam Air Traffic Management Corporation (VATM) in monitoring and protecting flight zones, according to Nicolas Bernardin, Director of Thales Vietnam. The group has also worked with military-run telecommunications company Viettel Group in SIM card production, and with banks in credit card production, and with the Vietnam Posts and Telecommunications Group (VNPT) in developing telecom satellites, smart cities, digital identity and cybersecurity.

Especially, over the past 10 years, Thales has collaborated with Vietnamese partners in the field of defence to modernise military platforms, Bernardin added.

He expressed his pride when the group has been chosen by Vietnam to provide technology solutions such as sonar, electronic or radar technology navigation systems, affirming that the group is making efforts to develop partnerships with local industries to strengthen their capacity in technology application and transfer./.

Property transactions of individuals might be limited

Vietnam may develop regulations about caps on the number of property transactions and revenues individuals make in a year to limit speculation, heard a meeting to discuss the draft decree detailing several points of the Law on Real Estate Business.

This will tackle the fact that individuals buy and sell many real estate assets in a year with great value to speculate and make profits without establishing real estate businesses.

Deputy Prime Minister Tran Hong Ha asked the Ministry of Construction to study carefully in order to raise specific regulations.

In the draft version in March, the ministry proposed that individuals be allowed to sell and lease from three to five properties in a year. If the transaction number exceeds five, the individuals must establish enterprises to implement property business. The proposal, however, was removed from the next draft.

Ha also asked the Ministry of Construction to coordinate with the Ministry of Information and Communications to develop regulations on the operation of electronic real estate trading platforms to ensure information safety and security as well as the responsibilities of the operators.

The Ministry of Construction must develop tools and a statistical approach to evaluate real estate price fluctuations as a base to timely raise solutions to regulate the market./.

Hanoi works to encourage summer travellers stay longer

Hanoi’s tourism sector is working to develop effective strategies to attract visitors during summer, which often sees relatively fewer tourists staying in the capital city compared to autumn and winter.

According to the Hanoi Department of Tourism, the city now houses 3,760 accommodation establishments with 71,246 rooms. Specifically, there are 607 hotels and apartment complexes rated from 1 to 5 stars, accommodating 26,641 rooms. The majority of guests in 4- and 5-star hotels are usually business travellers or short-term tourists.

Nguyen Hong Minh, Deputy Director of the municipal Department of Tourism, said that Hanoi lacks large-scale hotels offering more than 1,000 rooms and comprehensive services, including accommodation, sports, and entertainment. While the restaurant and culinary service infrastructure is developing, it remains decentralised and not well-integrated with local hotels and resorts to create effective value chains.

Minh suggested lodging facilities develop specific tourism packages aimed at attracting domestic tourists during off-peak seasons, and create supply chains linking accommodation with leisure and entertainment services.

From a tour operator's perspective, Nguyen Manh Than, Chairman of the Hanoi Tourism Association, recommended hotels to team up with travel companies to jointly develop comprehensive packages conducive to those participating in group tours.

Le Hong Thai, Director of the Hanoitourist travel company, said apart from hotel-driven demand stimulation policies and discounts, Hanoi needs to offer more experience tourism products to encourage longer stays among visitors.

In response to the Ministry of Culture, Sports and Tourism’s stimulus programme urging Vietnamese people to travel within their homeland, the Hanoi Department of Tourism is launching a series of experience activities at the local 4- and 5-star hotels.

Director of the Department of Tourism Dang Huong Giang noted that the capital has a large number of staycationers and international students, hence it will intensify efforts to cater to the groups.

She said accommodation service providers need to collaborate with airlines and travel companies to develop suitable tourism products that extend visitors' stays. Meanwhile, reasonable pricing policies are crucial to attract Hanoians to travel within Hanoi./.

Vietnamese airlines gear up for busy summer travel season

With summer vacation approaching and travel demand surging, Vietnamese airlines are ramping up capacity, particularly on popular routes connecting to tourist destinations.

The Civil Aviation Authority of Vietnam (CAAV) reported booking rates exceeding average levels on several routes from Hanoi and Ho Chi Minh City to popular tourist spots. Weekends and days closer to departure show the highest demand, with booking rates exceeding 50% on some routes. Even on weekdays, bookings remain healthy, hovering between 20% and 40%.

Destinations like Quy Nhon, Phu Quoc, Nha Trang and Dien Bien are experiencing particularly high booking rates from both Hanoi and Ho Chi Minh City.

To cater to this increasing demand, airlines are offering a variety of fares, including several significantly lower-priced options compared to the maximum fares regulated for economy class.

Industry leaders believe there is ample room for cooperation between airlines and tourism companies to maximise efficiency and affordability. Le Hong Ha, General Director of Vietnam Airlines Corporation, suggested tourism companies offer discounted rates of first-night stays for passengers arriving on late-night flights. Given the global shortage of aircraft, airlines should work together and share the best practices to maximise flight efficiency.

Vietjet Air's Deputy General Director Do Xuan Quang proposed additional measures to support the aviation and tourism sectors. These include continued government support mechanisms regarding the environmental tax on fuel, reduced fees for new international routes, and lowered banking interest rates to airlines, hotels and tourism companies.

He also called for the State's support policies to develop the aircraft fleet of Vietnamese airlines, as well as more effective airport management practices such as efficient flight slot allocation and airport operations, to increase overall capacity./.

Hải Dương to invest VNĐ1.4 trillion in developing another logistics complex

Hải Dương Province plans to invest more than VNĐ1.4 trillion ($55 million) to develop a logistics, petroleum and cargo port complex in Kinh Môn Town.

The project’s developer is a local company Đức Phương Limited Liability Company.

The project, covering 348,000 sq.m is expected to complete and go operational in 2027.

The logistics centre will be capable of handling around 280,000 TEU of container cargo and 1 million tonnes of other cargo per year.

The petroleum storage facility can store 48,000 cu.m of petroleum products to meet the demand in Hải Dương and neighbouring provinces.

The port can receive vessels of less than 3,500 DWT.

The project also includes a trade centre with an area of 32,850 sq.m.

The logistics complex is expected to contribute to promoting the development of the logistics industry of Hải Dương Province and facilitate customs clearance.

Deputy Chairman of the provincial People’s Committee Dương Lưu Văn Bản said that further consideration will be given on the project’s investment policy followed the established regulations.

This is the second logistics complex in the northern province under consideration, after Ninh Giang inland port and logistics complex which is expected to have an investment of nearly VNĐ1.4 trillion and cover nearly 27 ha in Ninh Giang District. The project’s developer is Vietnam Maritime Corporation.

Hải Dương aims to have six logistics centres by 2030.

Digital, green transformations improve manufacturing competitiveness

Combining digital and green transformations, also known as “dual transformation,” has become an urgent requirement for businesses to achieve their goals and fulfil their social responsibility, according to the Investment and Trade Promotion Centre of HCM City (ITPC).

Speaking at a seminar on “Enhancing the competitiveness of Việt Nam's manufacturing industry through dual transformation” in HCM City on June 28, Trần Phú Lữ, director of the ITPC, said dual transformation is an inevitable global trend.

But firms face challenges in achieving it in terms of database establishment, data analysis, usage and security, human resources, having transformation support systems, and, importantly, finding the right solutions for their businesses, he said.

He said the transformation is not only about applying technologies towards environmental protection but also changing production and business processes to improve operational efficiency and reduce emissions to achieve a green economy and a circular economy.

The dual transformation could help the manufacturing sector come up with synchronised plans, attract more foreign investment and enter deeper into global production value chains, he added.

Trần Hoài Nam, deputy chairman of ​the HCM City Association of Mechanical - Electrical Enterprises (HAMEE), said the transformation of production models and increase in the use of digital technologies associated with green production and green exports would play a key role in improving the competitiveness of Vietnamese goods.

He also said that, thanks to HCM City’s investment stimulus programme, a number of its mechanical and electrical companies have “boldly” invested in modern machinery and technology and embraced digital transformation.

As a result, they have more products to participate in global value chains.

The city’s exports of machinery and equipment and parts were worth more than US$912 million in the first four months of the year, a year-on-year increase of 40.6 per cent, and exports of computers and electronic products and components topped $5.4 billion, up 113 per cent.

But the mechanical industry only meets about 30 per cent of domestic demand, and so has room for growth if firms know how to take advantage of market opportunities and foster dual transformation, he said.

Lữ said for the past many years the city has promoted digital and green transformations.

It has focused on restructuring the economy in association with reforming the growth model and reducing greenhouse emissions through efficient use of energy and resources, digital transformation and application of digital technologies, developing green and sustainable infrastructure, and building a green lifestyle, he added.

Organised by ITPC and HAMEE, the seminar was part of the Week for Business Matching and Introduction of Products in Mechanics, Digital Technology, Electrical and Electronics Industry being held in HCM City from June 27 to July 3. 

Conference discusses the application of AI solutions for Vietnamese businesses

Businesses in Việt Nam want to implement artificial intelligence initiatives, but lack direction and the operational processes required to achieve optimal efficiency, a conference heard in HCM City on June 28.

The conference, “AI Solutions for Businesses,” was organised at the Quang Trung Software City in District 12.

Trần Phúc Hồng, vice president of the Việt Nam IT Outsourcing Alliance (VNITO Alliance), said AI is a global trend that helps create groundbreaking products, increase productivity and efficiency and reduce costs.

Through the conference, businesses could understand the processes of applying AI and how it works, and promote the adoption of AI solutions, he added.

Phạm Tuấn Anh of the Artificial Intelligence Center at TMA Tech Group in Việt Nam said though the nation has a large technology workforce with businesses providing digital transformation and AI solutions, there are still challenges to commercialising and applying them in practice.

“To effectively apply AI solutions, businesses need to define their goals and strategies, and choose technologies that align with their business purposes to enhance efficiency and derive the highest value from AI.

“Businesses should first particularly focus on is digital transformation, data building and management as these are the key foundations for the effective operation of AI models and bringing sustainable long-term value."

Hoàng Quang Hải, a management systems training and assessment expert at DNV Business Assurance Việt Nam, said it is important to have a quality management system that meets international standards such as ISO 42001.

This not only optimises operational efficiency and facilitates the step-by-step development and application of AI but also protects businesses from risks associated with the use of AI, he added.

The conference featured an exhibition of 100 AI solutions from Vietnamese businesses in areas such as generative artificial intelligence, optical recognition technology - natural language processing, data analysis and prediction, and application software in education and training.

It was coordinated by the Digital Transformation Support and Consultancy Center (DXCenter) and VNITO Alliance. 

Finance ministry cuts fees to aid businesses, citizens from July 1

In a move to ease burdens and bolster economic activity, the Ministry of Finance has announced reductions in fees and charges for various services.

The revised rates, outlined in a recently issued circular, will be effective from 1 July to 31 December 2024.

The measures target a range of sectors, with significant reductions for business operations. Fees associated with establishing and running banks and non-bank credit institutions will see a 50 per cent decrease.

Businesses will also benefit from a 50 per cent cut in fees related to intellectual property protection.

Citizens applying for new identity cards will enjoy the same discount.

Other sectors will experience reductions of 10-30 per cent, including fees for obtaining licences and permits for civil aviation operations, entry and exit permits for restricted airport areas, and customs fees for foreign flights landing in Việt Nam.

The securities industry will see a 50 per cent reduction in most fees and charges. However, there are exceptions for licensing fees of securities professionals and supervision fees for securities activities.

This marks the fourth time the ministry has imposed fee reductions of 10-50 per cent, which is estimated to have a budgetary impact of about VNĐ700 billion (US$29.1 million). 

Bắc Giang lychee prices reach record high

The price of Bắc Giang lychees in 2024 ranges from VNĐ55,000 to VNĐ85,000 per kilogramme, doubling or even tripling the prices of 2023, reaching the highest level in history.

This surge is attributed to adverse weather conditions that significantly reduced Bắc Giang’s lychee output, which now stands at nearly 100,000 tonnes, around half of last year's production.

According to the Bắc Giang Department of Industry and Trade, the 2024 lychee season has seen favourable consumption both domestically and internationally. The province exported over 24,700 tonnes of lychees, accounting for more than 28.9 per cent of the total consumption, while domestic sales exceeded 60,900 tonnes, making up over 71 per cent.

The rise in prices has led to a significant reduction in the volume of Bắc Giang lychees exported this year. As of June 24, over 24,500 tonnes were exported to China. Other export destinations included the EU (53 tonnes), Japan (45 tonnes), Australia (42 tonnes), the United States (20 tonnes), Dubai (21 tonnes), Canada (16 tonnes) and South-East Asian countries (18 tonnes).

The Bắc Giang Department of Industry and Trade estimated that the total revenue from lychees and related services this year would exceed VNĐ6 trillion. Of this, domestic sales are projected to generate over VNĐ4.8 trillion, while export activities are expected to bring in VNĐ1.6 trillion.

With nearly 30,000 hectares dedicated to lychee cultivation, Bắc Giang has focused on producing 223 planting area codes, covering more than 17,100 hectares for exports.

Currently, Bắc Giang lychees are exported to 30 countries and territories. Recently, the "Lục Ngạn Lychee" brand from Hồng Xuân General Services Production and Business Cooperative (Hồng Giang Commune, Lục Ngạn District) was among four products that achieved a 5-star OCOP (One Commune One Product) rating by the Central OCOP Evaluation and Grading Council on June 25. 

Import-export turnover through Lào Cai Border Gate reaches nearly $1.6 billion

The total value of exports and imports through the border gates in the northern province of Lào Cai is estimated to reach US$1.57 billion in the first six months of this year, a year-on-year increase of 164.2 per cent, achieving 35 per cent of this year’s plan.

Of which, the export value is estimated to reach $866.6 million in the first six months of this year, equal to 186.24 per cent compared to the same period last year, fulfilling 45.61 per cent of the year's plan.

The import value is estimated at $313 million in the period, equal to 134.5 per cent over the same period last year, fulfilling 26.08 per cent of the year plan.

The Office of the provincial People's Committee said that after implementing many solutions to restore and stabilise import-export activities and custom clearances at the border, the operations at the gates are ensured. 

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