Vietnam to reduce environmental protection tax on gasoline, oil and grease

Deputy Prime Minister Le Minh Khai asked the Ministry of Finance to coordinate with relevant ministries and agencies to immediately implement Resolution No. 20/2022 on the environmental protection tax on gasoline, oil and grease, the Government Office has announced.

The Ministry of Finance was assigned to liaise with concerned ministries and agencies to study amendments and supplements to the Decree on the Export Tariff and Most Favored Nation (MFN) tariff to reduce MFN tariff on gasoline products appropriately in order to diversify supply for the domestic market. In addition, the Deputy PM required the study of value-added tax and special consumption tax on gasoline and oil products to submit to the National Assembly for consideration and appropriate decision while keeping an eye on gasoline and oil prices in the world.

The Deputy Prime Minister requested the ministries of Agriculture and Rural Development, Labor, Invalids and Social Affairs, Finance, Industry and Trade, Transport, and the State Bank to study according to their assigned functions and tasks to be able to supplement support policies for those who are directly affected and face many difficulties due to high gasoline and oil prices such as fishermen, the transport industry, the poor, low-income people…

Last but not least, the Ministry of Industry and Trade in coordination with the Ministry of Finance and relevant agencies continues to review other factors constituting the base price of gasoline and oil prices according to resolutions of the National Assembly and resolutions on questioning and answering questions at the 15th-tenure National Assembly (NA)’s third session in order to have more room to reduce domestic gasoline and oil prices in management.

Previously, the National Assembly Standing Committee voted and unanimously issued a Resolution on environmental protection tax rates for gasoline, oil and grease as proposed by the Government. The resolution is applicable from July 11 to December 31, 2022.

Mekong Delta provinces to help coconut farmers cope with plummeting prices     

Authorities in the Cuu Long (Mekong) Delta are taking measures to help farmers cope with declining coconut prices.

In major coconut growing provinces such as Ben Tre, Ca Mau and Tien Giang, prices have fallen to around VND2,000 a nut because of a decline in exports, affecting farmers’ incomes.

In Ben Tre, the country’s largest grower, the People’s Committee has sought support measures from the Ministry of Agriculture and Rural Development to boost demand for coconuts and products made from them.

It wants the ministry to help promote exports to markets like the US, China, the Middle East, Africa, and Europe and assist coconut processing companies in selling their products on international e-commerce platforms.

It has called on Vietnamese trade cousellors in these markets to help its companies find and link up with local importers.

Nguyen Van Be Sau, director of Ben Tre Province's Department of Industry and Trade, said coconut prices have fallen dramatically, hitting farmers’ incomes, and exports of young coconuts for water face difficulties due to trade barriers.

Trading establishments have stopped or reduced their purchases, leaving farmers with enormous quantities of nuts, which are at risk of spoiling, he said.

The Ben Tre Department of Industry and Trade has plans to promote sales in Europe, the Middle East and Southeast Asia this year by helping coconut companies participate in trade fairs, exhibitions and online forums to meet importers.

It also plans to work with HCM City and several provinces to promote sales of coconut and related products, especially to tourists.

Ben Tre grows 600 million coconuts annually on more than 77,000ha.

Its exports were worth US$357 million in the first half of this year, or 28 per cent of its total exports.

In Tra Vinh Province, Le Van Dong, deputy director of the provincial Department of Agriculture and Rural Development, said farmers are encouraged not to cut down coconut trees but to wait for support policies.

The province People’s Committee has approved a strategy to strengthen the value chain in 2022-25 period.

The country’s second largest coconut producing province will adopt Vietnamese good agricultural practices (VietGAP) and organic standards.

It will establish concentrated coconut growing areas and develop linkages between farmers and companies to produce high - value coconut products, stabilise prices and improve farmers’ incomes.

Its Department of Agriculture and Rural Development in co-operation with coconut - growing localities will allocate funds for improving value chains for coconut and quality.

In Tien Giang Province, authorities are trying to make coconut farming sustainable, including by expanding farming of organic produce.

The province’s Cho Gao District, for instance, plans to get organic certification for 300ha to enable exports this year.

It already has 120ha of organic groves out of a total of 7,200ha. 

List of 34 Vietnamese seaports announced

Deputy Prime Minister Le Van Thanh has signed a Decision announcing the list of 34 seaports in Viet Nam.

Two special seaports are Hai Phong port in the northern city of Hai Phong and Ba Ria-Vung Tau port in the southern province of Ba Ria-Vung Tau.

Eleven Grade-1 seaports include Quang Ninh port, Thanh Hoa port, Nghe An port, Ha Tinh port, Da Nang port, Quang Ngai port, Binh Dinh port, Khanh Hoa port, Ho Chi Minh City port, Dong Nai port and Can Tho port.

Seven Grade-2 seaports consist of Quang Binh port, Quang Tri port, Thua Thien Hue port, Binh Thuan port, Dong Thap port, Hau Giang port and Tra Vinh port.

There are 14 Grade-3 seaports: Nam Dinh port, Thai Binh port, Quang Nam port, Phu Yen port, Ninh Thuan port, Binh Duong port, Long An port, Tien Giang port, Ben Tre port, Soc Trang port, An Giang port, Vinh Long port, Ca Mau port and Kien Giang port.

Inspectorate orders report on fuel price stabilization fund

The Government Inspectorate has formed an inspection team to examine the management of fuel trading and asked the relevant ministries and departments to report on the use of the fuel price stabilization fund.

Accordingly, the Ministry of Industry and Trade, the Ministry of Finance, the Ministry of Science and Technology, 16 enterprises and large traders must provide relevant information and documents.

These include reports and documents related to the compliance with policies and laws in the management of fuel, including the planning and development of fuel trading systems, fuel trading and distribution, the management of fuel businesses, the inspection and handling of violations, etc.

The Ministry of Industry and Trade is required to publicly report on the management of import and export businesses, the strategic petroleum circulation and reserve and fuel distribution systems all over the country. In particular, the ministry has to specify the approved plan, the results of the planning, the challenges and drawbacks of the planning, and the causes.

The ministry is required to report on the process of licensing petrol and oil businesses in the following fields: fuel import and export, fuel production and extraction, and fuel reserves. In particular, it is necessary to report on the total number of licensed businesses and the responsibility of each unit for ensuring petrol and oil supply in the market.

It is necessary to report on the management activities of the fuel trading, such as the process of inspection, quality control, the volume of fuel, etc.

For fuel reserves, it is required to report on the total number of agencies and organizations in charge of fuel reserves (circulation and national fuel reserves), specific responsibilities and tasks, storage infrastructure, the process of storing fuel, fuel import and export, the volume of fuel reserve, the time of fuel reserves, etc. The report on the responsibilities of the units involved in the fuel reserves ensures the fuel supply is on demand.

Regarding the fuel stabilization fund, the relevant ministries and departments are required to report on the use of the fund, its drawbacks, limitations, and causes.

In relation to the fuel selling price, it is necessary to report on the listings of fuel prices, the inspection and control of petrol and oil trading activities.

The inspection of the Government Inspectorate comes at a time when fuel prices are rising sharply, putting tremendous pressure on producers and affecting people’s daily life since the beginning of this year.

Brands urged to prepare for changes in VN’s consumer market
     
A rising affluent class, more nuclear families, the booming development of digital technology, and an increasing demand for personalisation among consumers will offer opportunities and challenges for FMCG brands in the coming years, according to Kantar Worldpanel Vietnam.

Speaking at its “10 years of consumer choice in Vietnam’ event on July 7, Nguyen Phuong Nga, the company’s business unit director, said Viet Nam’s GDP per capita in 2021 is US$3,743, up 3.6 times in 10 years.

With higher purchasing power, consumers are having new needs and adopting new devices such as washing machines, air conditioners, laptops, microwaves, tables, and cars.

In FMCG (Fast Moving Consumer Goods), “premiumisation" demand has grown, she said.

In food and beverages, demand for ‘safety’ and ‘health’ has been driving consumer choices, while branded/packaged products are on the rise as a healthier diet, reduced fat, and sugar-free products are adopted, she said.

FMCG brands have relentlessly innovated to attract and retain consumers to their brands.

In 2021, new FMCG products are launched every hour, she said.

With internet development, the online shopper base has increased 10 times and in FMCG 20 times over the past seven years.

This enormous development is fueled mostly by e-commerce sites and modern trade retailers. The FMCG online basket is becoming more diverse with the growth of food and beverages.

Online is now playing role in every stage of a consumer journey, she said, adding that small brands, who are very digital focused, have more opportunity to interact with costumers and gain their business, she said.

Online is expected to become a key sources of sales in coming years.

In addition, consumers have higher demand for personalisation, not only with products but also in every moment that brands interact with them, she said.

They have greater demand for convenience, not only with the product but also in every single step of the buying journey.

Expectations for transparency and social responsibility will be higher as will the opportunities for those brands who can show and act their commitments, she added.

Overseas Vietnamese entrepreneurs in Thailand eye business opportunities in HCM City
     
The potential to boost trade and investment ties between Thailand and HCM City is huge since economic linkages between the two countries has been expanding rapidly, a forum has heard.

Speaking at the Thailand-HCM City Business Connection Forum on Friday in HCM City, Vo Van Hoan, deputy chairman of the city People’s Committee, said the city has been one of Thailand’s leading investment partners for years.

Investors from Thailand had invested more than US$482 million in 235 projects as of last year, making Thailand the city’s 12th largest FDI partner out of 116 countries and territories.

Most of Thailand's projects in the city were in chemicals, food, construction materials, tourism, warehousing, and logistics industries.

Last year trade between Thailand and HCM City was worth more than $2.8 billion.

Viet Nam’s ambassador to Thailand, Phan Chi Thanh, said a distribution network of high-quality products from Viet Nam should be set up in Thailand and reciprocated in HCM City.

Ho Van Lam, chairman of the Thailand- Viet Nam Business Association, said trade, investment and tourism promotion events should be regularly organised in Thailand to foster trade and investment exchanges with overseas Vietnamese and Thai businesses.

Thai businesses are seeking long-term co-operation with businesses in HCM City in fields such as high-tech agriculture, digital transformation, education, and tourism.

Thailand has risen to become Viet Nam’s biggest trading partner in ASEAN and the ninth largest foreign investor in Viet Nam with more than 600 projects worth more than $13 billion. Trade between the two countries was worth $5 billion in the first quarter of this year, and they plan to increase it to $ 25 billion by 2025. 

Haiphong airport to have new passenger terminal

Deputy Prime Minister Le Van Thanh has approved a plan to develop passenger terminal T2 at the Cat Bi international airport in Haiphong City at a total cost of VND2.4 trillion.

The new passenger terminal project, whose investor will be the Airports Corporation of Vietnam, would have an annual capacity of five million passengers and operate for 50 years, the local media reported.

Under the plan, the construction of the project will be executed in 18 months from the date of cleared land being handed over.

The project includes support components, such as a technical facility, tunnels, parking lots, a wastewater treatment station, a fee collection station, fences and lighting and drainage systems.

The municipal government is in charge of site clearance and inspecting the construction and capital mobilization processes.

After terminal T2 is completed, it will be used as a domestic terminal, while passenger terminal T1 will serve as an international one.

The northern city proposed building passenger terminal T2 and a cargo terminal for the Cai Bi airport in 2018 as terminal T1 was overloaded.

The airport handles four-five million passengers a year.

Inconsistent quality, high logistics cost holding back VN rice exports: experts
     
According to experts, the quality of Vietnamese rice has been recognised more in recent years, but inconsistency and logistical challenges are holding back its potential.

Pham Quang Dieu, a rice market analyst at Agromonitor agricultural consultancy agency, said that Viet Nam’s rice exports in recent years had grown as international traders started to acknowledge the competitive strength of the country's rice.

Sticky rice from Viet Nam currently accounts for 70 per cent to 80 per cent of global exports of the product.

According to the Ministry of Agriculture and Rural Development, in the first five months of 2022, Viet Nam has exported nearly 2.8 million tonnes of rice, worth US$1.35 billion in revenue.

However, there are some obstacles limiting Viet Nam's rice exports.

Nguyen Quoc Toan, head of the Agro-Processing and Market Development Authority (Agrotrade Vietnam) under the ministry, said that due to the effect of the global economic downturn during the COVID-19 pandemic, farmers’ profits suffered. In addition, high fertiliser prices had raised production costs.

Bui Kim Thuy, an economic expert, suggested that boosting technical skill on food safety along with tariffs play a crucial part in the competitiveness of Vietnamese rice around the world.

According to Tran Ngoc Thach, chairman of Cuu Long Delta Rice Research Institute, the biggest drawback of Vietnamese rice right now is the inconsistent quality of exports.

This is due to the lack of large-scale farming plantations as currently most rice is grown on many small fields. These drawbacks cause many problems related to food security, hygiene and pesticide residues.

In order to improve the value of rice, the industry should consider developing better rice processing plants, monitor quality and build the brand name of Vietnamese rice.

Nguyen Chanh Trung, deputy general director of agriculture company Tan Long Group, said that Viet Nam had a few rice brands that have received recognition, such as ST24 and ST25, as the best tasting rice in the world. The industry now needed to properly invest in improving the processing of rice.

Logistic infrastructure is another.

According to Do Thu Huong, deputy marketing director of Sai Gon Newport Corporation, 80 per cent of the Mekong Delta's exported goods travel through Ho Chi Minh City and Ba Ria - Vung Tau ports, making shipping expensive. While logistics adds an average of around 10 per cent to the price of a product globally, in the Mekong Delta, logistics costs add about 30 per cent to agricultural products.

Long An focusing on providing more land to attract investors

Long An Province, an economic leader in the Mekong Delta, is focusing on increasing the amount of land plots for businesses coming into the province to improve its investment climate.

Long An has had four new industrial park projects approved for investment by the Government since the start of the year.

According to Nguyen Thanh Thanh, head of Long An Economic Zone Authority, the province currently has more than 10,170 hectares worth of planned industrial park projects approved for investment or having already found investors.

Increasing supply of land plots for businesses will drive down rent fees and allow businesses to have more options, according to the official.

The province’s existing parks drew in 58 new projects in the first half of the year.

New foreign investment and capital adjustment to existing projects rose by 31 per cent year-on-year (to US$342 million), and 91.7 per cent for domestic projects.

Many new approved projects this year reached hundreds of millions of dollars in registered capital.

The authority will work with the province’s leaders, departments and localities to ensure land clearance compensation is carried out smoothly.

It will also push industrial parks to invest more into their infrastructure to attract large investors.

The Mekong Delta province is adjacent to HCM City and plays an important role in goods transportation for the entire delta. It has 18 industrial parks under operation, and strives to maintain its leading position in terms of economic development in the delta. 

OCB receive approval to go ahead with support package
     
The Orient Commercial JS Bank (OCB) has announced that it has received approval from the State Bank of Vietnam (SBV) to go ahead with a 2 per cent interest rate support package.

In compliance with Decree 31 and Circular 03 on loans with favourable interest rates, OCB has requested a carte blanche from SBV to make total preferential loans of VND400 billion in 2022 and 2023.

The bank authority approved part of the scheme, allowing OCB to make total preferential loans of nearly VND140 billion in 2022 to help its clients.

OCB said borrowers eligible for the loans include those working in 11 sectors, including tourism, transporting, manufacturing, processing, software making and social housing.

The loans will be disbursed between January 1, 2022, and December 31, 2023, or until the expiration date of the package.

Agribank and Vietcombank were the two first banks to announce their 2 per cent interest rate packages. The total amount of preferential loans reached VND16 trillion in 2022 and VND24 trillion in 2023.

Banks introduce eTax Mobile service
     
The first six banks have provided accounts for users to make online tax payments via the eTax Mobile application.

As of June 22, the banks, including BIDV, VCB, SCB, ACB, HDBank and TPBank, made 29,000 transactions worth more than VND190 billion for their customers with tax authorities via the eTax Mobile application.

The General Department of Taxation (GDT) said it is continuing to carry out authentication with a number of other banks to accelerate the deployment of eTax Mobile, contributing to creating favourable conditions for taxpayers and implementing a project for developing non-cash payments in 2021-25 and a national digital transformation programme to 2025 in Viet Nam.

The eTax Mobile application is a service channel in the integrated platform of the tax industry that provides electronic tax services to taxpayers that are individuals and business households to ensure safety and security.

Pham Quang Toan, director of the GDT’s Information Technology Department, said the application brings many benefits to taxpayers, so the application will be expanded with more services, forming an ecosystem of smart tax services.

Instead of previously obtaining information about tax obligations through face-to-face contacts, phone calls, emailing the tax authorities, or looking up public information on the GDT’s website, the taxpayers now can actively search for information quickly through the eTax Mobile application with an internet-connected device such as mobile phone or tablet.

TPBank posts US$162.5 million profit in H1
     
TPBank achieved a profit of nearly VND3.8 trillion (US$162.5 million) in the first six months, increasing 26 per cent from last year.

The bank released its business results for the first half with many outstanding growth targets met.

Its total assets in the six months reached more than VND310 trillion, posting a 28 per cent year-on-year increase and meeting 89 per cent of the target. This growth is much higher than its credit growth in the period showing that TPBank has not focused too much on credit but has increased profit in service and non-credit activities.

TPBank's total operating income reached VND8.2 trillion, up 31 per cent over the same period last year.

Net profit from services reached VND1.2 trillion, representing a 72 per cent year-on-year increase thanks to boosting card issuance, account opening, insurance cross-selling and payment activities.

Net interest income from services accounted for 14.6 per cent of its total income, up nearly 3.5 per cent compared to the corresponding period last year.

Gov’t directs to maximise effectiveness of interest rate aid programme
     
Agencies need to work to ensure the success of the interest rate aid programme and optimise its effectiveness, Deputy Prime Minister Le Minh Khai said on Wednesday.

During an online conference to implement the Government's Decree 31/2022/ND-CP on interest rate support from the State budget for loans of enterprises, co-operatives and business households, Khai said the large-scale programme is implemented nationwide and expected to have a positive impact on the whole economy. Therefore, he required the State Bank of Vietnam (SBV) to coordinate closely with other ministries and agencies to regularly monitor and evaluate the results of the programme’s implementation.

Commercial banks must step up the interest rate support in accordance with the regulations, Khai said, adding relevant ministries and agencies, such as the ministries of Planning and Investment, Finance and Construction, must directly participate in the programme’s implementation.

The SBV must promptly propose feasible solutions to remove obstacles and create favourable conditions for the implementation so as to maximise the effectiveness of the programme, Khai said.

According to SBV’s deputy governor Dao Minh Tu, the programme is a large-scale policy with the participation of many commercial banks. The programme uses the State budget to help reduce the loan costs for enterprises, cooperatives and business households in order to help them overcome difficulties to stabilise and develop production and business. Therefore, the policy implementation must ensure fairness, publicity and transparency to identify the right beneficiaries.

The beneficiaries of the policy are enterprises, cooperatives and business households in aviation, transportation, warehousing, tourism, accommodation and catering services, education, agriculture, forestry, fishery, manufacturing and processing industry, software and computer programming, information services, and developers of social and worker housing.

Under the programme, the State budget shall fully and promptly allocate funds for interest rate support of 2 per cent per year for commercial banks to provide interest rate support to customers.

Commercial banks will stop supporting interest rates after December 31 next year or when the funding source runs out, whichever comes first.

The interest rate support period is from the date of loan disbursement to the time when the customer pays off the loan principal and/or interest as agreed between the commercial banks and the customers, in line with the funding source for interest support rates announced, but not exceeding December 31 next year.

Market likely to pull back this week: experts
     
Even though the market benchmark rebounded in the last two sessions of the week, low liquidity showed that investors remained cautious about the stock market’s outlook. And there is not enough force for long-term recovery.

The market continued to witness a week of corrections with weaker liquidity. The VN-Index on the Ho Chi Minh Stock Exchange (HoSe) ended last week at 1,171.31 points, a gain of 0.41 per cent. It hit a 16-month low on July 6 at 1,149.61 points.

On the Ha Noi Stock Exchange (HNX), the HNX-Index also inched up by 2.18 per cent to 277.8 points.

For the week, the VN-Index declined by 2.3 per cent and the HNX-Index fell nearly 0.4 per cent.

Trading value on the southern bourse dropped by 8.8 per cent over the previous week to nearly VND56 trillion (US$2.39 billion), equivalent to a trading volume of nearly 2.4 million shares, a decrease of 8 per cent.

Similarly, the trading value on HNX reached over VND5.3 trillion, down 14 per cent, while the volume slid by 7.5 per cent to 278 million shares.

Foreign investors were net sellers on both main exchanges last week, with a value of more than VND1.13 trillion. Of which, FUEVFVND was net sold the most, followed by Dat Xanh Group (DXG) and SSI Securities Corporation (SSI).

Nguyen Tat Thang, analyst of Saigon - Hanoi Securities JSC (SHS), said that the VN-Index's correction after failing to reach the psychological level of 1,200 points has caused selling pressure to rise, and pushed the benchmark to create a new bottom in 2022 which was around the threshold of 1,140 points.

Despite demand force appearing as the sell-off weakened, helping the VN-Index bounce back in the last two sessions of the week, the low liquidity showed that sentiment was still cautious and there was a lack of foundations to support long-term recovery.

However, from a longer-term perspective, he expected the market to gradually accumulate as stock prices are at attractive levels. Specifically, the price-to-earning ratio (P/E) is low as the economy continues to recover post-pandemic.

Moreover, many listed companies are forecast to continue profit growth in the second quarter of 2022.

Meanwhile, experts from MB Securities JSC (MBS) believed that the country’s stock market is consolidating the bottom after climbing for two consecutive sessions with an improvement in liquidity.

Therefore, technically, the market is witnessing a positive divergence and investors should focus on a specific stock instead of the benchmark index, said MBS.

Last week, utility stocks lost the most with 9.2 per cent of market capitalisation, of which PV GAS (GAS) was down 13.1 per cent, PV POWER (POW) down 4.4 per cent, and Refrigeration Electrical Engineering Corporation (REE) down 10.6 per cent.

It was followed by information technology stocks with a fall of 4.8 per cent, and oil and gas group down 4.4 per cent in market capitalisation.

Mercedes-Benz Vietnam recalls two models for faulty brake booster
     
The Vietnam Competition and Consumer Authority (VCCA) has announced that it received a notice from Mercedes-Benz Vietnam for a recall.

Under the notice, Mercedes-Benz Vietnam (MBV) announced that ML-Class (type number 164) and R-Class (type class 251) manufactured from 2004 to 2015 would be recalled for inspection.

The recall programme started on June 30 and is expected to run until December 31, 2027. Inspection and brake booster replacement is free of charge and takes approximately three hours for each car.

According to the notice, the total number of affected vehicles is 76 units. Inspection and replacement of brake boosters for affected cars will be implemented at the authorised dealer/service workshop of Mercedes-Benz Vietnam nationwide.

Mercedes Benz Vietnam Co., Ltd. recommends that consumers quickly bring their cars to the nearest authorised dealers for inspection and standard repair or visit its official website for support. 

HCM City increases investment in sluggish projects

HCM City authorities have decided to invest an additional VND6 trillion (USD258.62 million) to speed up 16 projects which are behind schedule.

The projects include school, road and bridge construction and canal dredging.

The costs of many projects have doubled or even tripled against their initial investments due to the slow pace of their construction.

My Thuy Intersection in Thu Duc City was scheduled to be completed in 2021, but to date, only the first phase of the project has been finished. The sluggish implementation has raised the project’s total cost to VND3.6 trillion from an initial VND2 trillion. The project is scheduled to be finished in 2025.

Tang Long Bridge in Thu Duc District was started in December 2017, but until now, just 30 percent of the project’s work has been completed. This has resulted a cost increase of VND238 billion.

Phuoc Long Bridge which links District 7 and Nha Be District has had an investment increase of VND350 billion.

Meanwhile, hundreds of billions of VND have also been added to other projects, including the expansion of the District 8 General Hospital and the construction of Vinh Loc A Nursery School, Tan Kien Primary School and bus stops in Cu Chi District.

Blame for the slow pace of work has been put on sluggish compensation and site clearance.

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