When the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has the UK as a new member, more cooperation opportunities will open up for Vietnam and the European country, according to insiders.

With the signing of the protocol on the UK’s accession to the CPTPP last weekend, the number of CPTPP member states has amounted to 12.

The UK's entry is expected to raise the bloc’s gross domestic product (GDP) to nearly 16% of the world’s total from 12%. The CPTPP will be an additional agreement alongside the Free Trade Agreement (FTAs) that the UK is having with most member countries.

According to experts, investment between the UK and CPTPP member states is expected to hike thanks to terms that limit barriers and encourage more internal investment.

As of June, the UK recorded 530 foreign-invested projects worth over 4.26 billion USD in Vietnam, ranking 15th among the 141 countries and territories investing in the country. Last year, the European nation invested in 53 new projects valued at 64.3 million USD in Vietnam.

After the UK-Vietnam FTA officially took effect on May 1, 2021, two-way trade rose to 6.84 billion USD last year, up 3.4% annually.  Of the figure, 6.07 billion USD was Vietnam’s exports to the UK, up 5.2%, resulting in a trade surplus of around 5.3 billion USD, higher than 4.8 billion USD recorded in the previous year.

On the back of the CPTPP, the two countries are seeing ample opportunities to soon achieve the target of 10 billion USD in bilateral trade. The Vietnamese agro-aquatic products, including fruits and vegetables, coffee, cashew nut, are to benefit the most. Several export items to the UK, which have not been granted tax exemptions based on bilateral agreements, will enjoy more favourable taxes under the CPTPP.

Meanwhile, products such as whisky and automobiles, which are among the 99% of the UK’s current exports to CPTPP countries, will qualify for tax exemptions. At the same time, the UK is likely to export more agricultural products, pharmaceutical materials, advanced equipment and technology to Vietnam.

CEO of the UK-based TT Meridian Ltd Thai Tran said Vietnamese farm produce such as durian, pomelo and Cao Phong orange have gradually conquered the UK market.

According to him, the UK has high requirements as it not only pays attention to prices but also environmental, social and governance standards.

Quang Ninh attracts quality foreign investment flows

Foreign investment attracted by the northern province of Quang Ninh in the first half of 2023 is nearly equivalent to its target set for the whole year.

In the period, the locality drew over 832 million USD in foreign direct investment (FDI), equal to 83% of that set in the provincial Party Committee’s Resolution and 69.3% in the provincial People’s Committee plan.

This result was partly contributed by two Foxconn projects totalling 246 million USD approved by the province on the last day of June.

Together with four other FDI projects, they brought the total foreign capital Quang Ninh attracted to the period in the automobile supporting industry to 585 million USD, or 70.3%.

It can be said that FDI in Quang Ninh in the first six months was mainly poured into the processing and manufacturing industry, which is in line with the orientation set out in a resolution on rapid and sustainable development of the processing and manufacturing industry in the 2020-2025 period.

To further develop the processing and manufacturing industry in the direction of increasing its contribution to the local economic growth, Quang Ninh is focusing on attracting domestic and foreign investors that apply modern and clean technology, and create products with high added value.

Over the past 2.5 years since the resolution was promulgated, the total investment capital in the province’s processing and manufacturing industry has reached over 41.3 trillion VND (1.74 billion USD), of which foreign investment is over 1.3 billion USD. The average growth rate of this sector is 23.6% per year, contributing over 10% in the province's GRDP.

Exports of cement and clinker fall

Exports of cement and clinker products reached 14 million tonnes in the first six months of this year, a year-on-year decline of 15%. Export value is estimated at 700 million USD.

The Ministry of Construction said that production and consumption of some key construction materials in the first half of the year declined sharply, of which cement fell by 10% over the same period.

Cement output is estimated at 39 million tonnes, down 7%; while consumption reached 43 million tonnes, down 10% over the same period last year.

“Surplus supply, fierce competition, and the decline in the real estate market are reasons given for the reduced performance, said Ha Quang Hien, Chief of Staff of the Vietnam National Cement Corporation (VICEM).

The export price of clinker is low, partly due to the real estate market freeze, but also due to businesses lacking capital and interest rates remaining high, all leading to stagnation in the market of construction materials.

Accordingly, the adjustment of cement output in line with movements in the construction and real estate markets is inevitable.

Luong Duc Long, Vice Chairman and General Secretary of the Vietnam National Cement Association said that cement production and consumption decreased last year compared to 2021.

From the beginning of this year until now, cement production and consumption haven't seen much improvement. Meanwhile, the cement industry is facing difficulties such as increasing fuel and transportation prices, alongside falling market demand.

Output is congested, causing product backlogs, which makes difficulties pile up for businesses.

Coal accounts for 45 - 55% of the cost of the production of one tonne of clinker; while electricity costs account for 17 - 20% of the cost of a tonne of cement.

The rise in energy prices has led to an increase in transportation costs. Facing a situation of slow domestic consumption, many cement enterprises have chosen to export as a temporary solution to deal with excess inventory.

However, the country's cement export market was also not positive in the first six months of the year.

The situation of cement exports to Vietnam's largest market, China, is quite bleak as the real estate crisis in this country has also not fully recovered.

Vietnam's second-largest cement export market is the Philippines, but recently this country has officially announced the imposition of a temporary anti-dumping tax on cement products from Vietnam, causing difficulties for cement exports to the market.

Businesses want to export cement and clinker to the Americas, but the volume is low due to exporting to traditional markets such as the Philippines, China and Bangladesh not yet solving the surplus.

Starting from October this year, 27 member states in the European Union (EU) will pilot the carbon border regulation mechanism.

From 2026, the EU will impose a carbon tax on iron and steel, cement and fertiliser, which will make it more difficult for Vietnam to export cement to Europe.

In particular, the clinker export tax increased from 5% to 10% according to Decree No 101/2021/ND-CP, in order to limit the export of products that use a lot of raw materials, fossil fuels and non-renewable resources.

The increase in export tax and the price of export clinker not rising has made the difficulties even worse.

Luong Duc Long proposed to promote public investment and clear capital for real estate.

Accordingly, it is necessary to remove the output bottlenecks of the material industry by increasing the construction of housing, urban areas, and roads, he said.

In the immediate future, cement businesses should find ways to develop new products and improve others to increase their competitiveness in the market in order to attract more customers and enhance sales, he said.

To do this, experts recommend that cement businesses need to optimise production by improving technology to increase productivity and reduce costs. This will help businesses enhance competitiveness and increase profits.

Export recovery brings hope for Vietnam’s economic turnaround: IMF expert

An expected rebound in exports and the implementation of expansionary domestic policies in the second half of 2023 have been identified as key factors that will contribute to the revitalization of Vietnam’s economy.

Vietnam, along with other Asian exporters, has been heavily affected by the global economic slowdown. Reduced demand for goods from major export markets such as the U.S. and the European Union has left substantial impact on Vietnam.

The country saw its exports plunging 12% in the first half of this year, thus causing severe consequences for export-oriented businesses and the industrial manufacturing sector, given Vietnam’s heavy reliance on exports. The recovery of this sector is crucial for overall economic growth.

Paulo Medas, division chief of the International Monetary Fund’s Fiscal Affairs Department, made these remarks after an IMF team visited Vietnam from June 14 to 29 to engage in discussions for the 2023 Article IV consultation with the country.

Vietnam’s economy depends heavily on investment and the domestic market. However, under the current global economic conditions, the revival of Vietnam’s economy largely hinges on the speed at which the export sector recovers.

In the short term, downside risks to growth remain significant. If external demand continues to weaken or if investment remains subdued, growth may fall short of expectations, said Medas.

In a bid to promote exports, the Ministry of Industry and Trade plans to organize the “Vietnam International Sourcing 2023” event in HCMC in September. It is expected to attract 8,000 visitors, facilitate transactions with 150 international delegations from 30 countries and territories, and enable buyer delegations to conduct business surveys with local enterprises.

The event aims to support businesses in enhancing their engagement in global production and supply chains, as well as facilitating direct exports to foreign distribution networks, thereby improving their access to international markets.

Additionally, the event seeks to encourage strategic investments that improve production processes and foster the development of high-value-added products known for their exceptional quality. By creating an environment conducive to these activities, the event can enhance the competitiveness of businesses and contribute to the growth and success of Vietnam’s economy on a global scale.

Renowned retail giants, including Aeon, Uniqlo, Walmart, Amazon, Carrefour, Decathlon, Central Group, and Coppel, have confirmed their participation in the event.

HCMC to host innovation and green economy event next month

The annual international event, InnoEx, will take place in HCMC on August 24 and 25, aiming to foster innovation and development in Vietnam and Southeast Asia’s thriving business community.

With the theme “Innovation & Green Economy” and the motto “Innovation for Sustainable Growth,” InnoEx 2023 will attract experts from various industries, offering creative solutions to help businesses overcome future challenges.

The event will feature networking sessions, exhibitions showcasing products, services, and technology solutions from both domestic and international businesses. It will provide excellent opportunities for participants to connect, exchange ideas, and stay updated on the latest technology, market trends, and innovative growth models.

The Vietnam CEO Forum will be a highlight of the event, bringing together over 10,000 CEOs, policymakers, and associations. It serves as a platform for Vietnamese CEOs to gather, share insights, and discuss important topics and policy matters.

InnoEx 2023 will also include two start-up competitions – Start-up Wheel 2023 and Green Innovation Fellowship – as well as exhibitions, launchpads, and forums dedicated to innovation, entrepreneurship, and more.

Le Tri Thong, CEO of PNJ, described InnoEx 2023 as a hub where trains converge, recharge, and gather information for their next journeys.

Organized by the HCMC Young Business Association, the HCMC Business Startup Support Center, and the Investment Promotion and Business Support Joint Stock Company, InnoEx 2023 promises to be a dynamic event driving innovation and green initiatives in the region.

Commercial banks urged to implement credit programs for forestry and fishery

The State Bank yesterday afternoon said that it has urged commercial banks to implement credit programs for the forestry and fishery sectors.

The state bank had issued guidelines that commercial banks should carry out credit programs for businesses in the forestry and fishery sectors following the Government and the Prime Minister’s direction.

The State Bank was asked by the Government and the Prime Minister to study and propose a credit package of VND 10,000 billion (US$ 422,291,462) to support enterprises in the sectors.

Borrowers are customers who have plans for production and business activities in the forestry and fishery sectors. The lending interest rate is in Vietnamese dong and is at least 1 percent-2 percent per year lower than the average lending interest rate of lending banks in the same term.

The program's credit scale is about VND 15,000 billion. The program will be implemented until June 30, 2024. In addition, commercial banks can reduce service fees for customers participating in this program in accordance with legal regulations and the size of the bank's operations

According to the State Bank, 12 commercial banks have so far registered to participate in the program.

HCM City’s state budget revenue of nearly US$7 billion in 6 months

Total state budget revenue in the first 6 months of 2023 is more than VND164,200 billion (US$6,938,882,224), reaching 50.8 percent of the yearly estimate and equaling 94.7 percent over the same period in 2022.
 
The information was released at a conference to review tax work in the first 6 months of the year and implement tasks for the last 6 months of 2023 held by the Ho Chi Minh City Tax Department yesterday.

According to the report at the conference, the Tax Department of Ho Chi Minh City announced that 436 companies have received a tax refund with a total amount of VND 2,417 billion by the end of June 30. This year’s rebates equaled 56 percent in quantity and 57.8 percent in refund compared to the same period in 2022.

However, the tax authority said that the state budget collection has seen a decrease due to the economic difficulties of the country generally and Ho Chi Minh City particularly in addition to policies to support tax exemption, reduction and extension.

Speaking at the conference, Chairman of Ho Chi Minh City People's Committee Phan Van Mai noted the issue of tax refunds for businesses. According to Mr. Phan Van Mai, representatives of businesses have voiced their opinions on this matter of tax refunds in almost every forum, and many of them were very harsh about this issue. Chairman Phan Van Mai suggested that the tax sector must first solve its internal difficulties including personnel problems and incomes.

Vietnam takes solutions to meet EU's EPR schemes

The Vietnam Textile and Apparel Association yesterday said that the Commission is proposing to introduce mandatory and harmonized Extended Producer Responsibility (EPR) schemes for textiles.

Chairman of the HCMC Association of Garments, Textiles, Embroidery and Knitting Pham Xuan Hong said that if the EU applied for the EPR program, it would also force textile and garment manufacturing enterprises to have solutions to collect, classify, reuse and recycle textiles and garments for exports to the EU market. This is very difficult, so the association as well as textile enterprises are working with their partners and distribution systems to proactively develop implementation solutions to meet the standards set by the EU market.

Vietnam-US trade predicted to flourish in H2

The Vietnam – US trade relations are enjoying strong growth after the US concluded its investigation related to Section 301 into Vietnam’s alleged import and use of timber illegally harvested or traded, and removed Vietnam from its currency manipulation list, said Trade Counsellor of Vietnam in the US Do Ngoc Hung.

According to Hung, this demonstrates appropriate guidance from relevant Vietnamese agencies such as the Ministry of Industry and Trade, the State Bank of Vietnam, the Ministry of Foreign Affairs, and the Ministry of Finance, and coordination of the Vietnamese Embassy in the US, which all help foster a sustainable economic and trade relationship between the two countries.

It is anticipated that there will be some favourable developments beyond the first half of this year as the US economy has shown signs of recovery with regard to growth and consumer demand, the counsellor said.

The US government and businesses continue to show interest and a strong commitment to business cooperation with Vietnam, he said, adding that the positive economic recovery has led to major US retail chains resuming ordering activities with the Southeast Asian nation.

According to Hung, this is a great potential for Vietnam to push exports to the country.

In the coming time, along with Vietnamese representative agencies in the US, the Vietnam Trade Office will continue to promote trade policy research to promptly provide information and support businesses, and focus on promoting business opportunities toward expanding markets by region, especially California, New York, New Jersey, Washington, and Texas which are home to crowds of Asian Americans.

The office has planned to organise field trips for trade promotion delegations to the US to explore the market. It will collaborate with management agencies at home to hold exhibitions, and enhance the application of e-commerce to address issues related to geographical distance.

Statistics show that the Vietnam - US trade topped 46.5 billion USD in the first five months of 2023.

According to Hung, Vietnam's trade surplus with the US currently ranks third, behind China and Mexico.

VietFood & Beverage – ProPack Vietnam 2023 to introduce over 10,000 brands

More than 10,000 brands will be introduced at the 27th VietFood, Beverage and Professional Packing Machines (VietFood & Beverage – ProPack Vietnam 2023), which will take place in Ho Chi Minh City from August 10-12.

The annual event will be held by the Vietnam National Trade Fair and Advertising Company (Vinexad).

Covering 20,000 sq.m, the exhibition will feature 800 booths by 700 businesses from 20 countries and territories, showcasing a wide range of products.

Notably, fruits and confectionery as well as mochi cakes and milk tea from Taiwan (China) will be introduced at the event along with seafood, seaweed, fresh fruits and ginseng from the Republic of Korea.

The exhibition will offer chances for visitors to approach new technology trends in the food industry, according to the event's organiser.

It is also expected to help domestic firms to explore business partnerships with international manufacturers and distributors, contributing to the expansion of the global chain.

In addition to showcasing food, equipment and technologies in the fields of food, beverage and packaging, the expo will feature thematic seminars, B2B business matchmaking, and field trips to industrial zones.

Quang Ninh’s advantages prove effective in attracting foreign investment

Prominent advantages in transport infrastructure with road, sea, rail and air routes have made the northeastern province of Quang Ninh “a magnet” for foreign investment.

According to the provincial Department of Planning and Investment, in the first six months of 2023, the province attracted over 832 million USD in foreign direct investment (FDI). During the period, the province granted investment certificates to 17 FDI projects, 2.5 times higher than the same period last year, mainly in the field of processing and manufacturing, particularly two large-scale projects with investment capital of over 100 million USD.

Investors from 20 countries and territories are carrying projects out in the province, with those from Hong Kong (China) taking the lead with a total investment capital of over 3.8 billion USD, accounting for 33.7% of the total FDI investment in the province.

Japan ranked second with over 2.33 billion USD, and the US came third with nearly 2.31 billion USD. Chinese investors have 31 projects in the province with total investment capital of over 314 million USD, followed by United Arab Emirates (UAE), Singapore, and Indonesia.

 In the first six months of 2023, Quang Ninh province attracts over 832 million USD in foreign direct investment (FDI). (Photo: VNA)
At a recent meeting with investors, Cao Tuong Huy, Acting Chairman of the provincial People's Committee, affirmed the province's motto is that businesses’ effective investment is the success of the locality.

The province is committed to accompanying investors throughout the project implementation process and solving problems and difficulties at any time, he said.

To attract investors, in the past years, Quang Ninh has prioritized allocating investment resources for infrastructure development, especially transport works.

The province has also paid attention to removing difficulties relating to site clearance, resettlement, land rental, land procedures, electricity demand, and project infrastructure connection to speed up the infrastructure development of industrial parks.

Regarding transport infrastructure, the province is accelerating the completion of roads to the seaports, airport and IPs. It has also proposed new projects such as the upgrade of National Highway 4B to strengthen the connection between Lang Son and Quang Ninh provinces,Van Don - Mong Cai and Quang Ninh - Lang Son - Cao Bang expressways as well as connection within the Northeastern and Northwestern regions.

Komoto Tomoshi, CEO of Castem Vietnam said that the company is the first Japanese investor to invest in Song Khoai Industrial Park in the province’s Quang Yen town with a 19 million USD factory for manufacturing and trading precision mechanical details.

The company is satisfied with the province’s investment environment, and the location of the industrial park as it’s near the airport and seaports. Moreover, Vietnam boasts a cheap and hard-working labour force, he added.

Seven-month fruit - vegetable export value beats 2022's target

Vietnam earned US$3.25 billion from the export of fruit and vegetables during the first seven months of this year, representing a year-on-year rise of 68.8% and beating last year's US$3.16 billion export earnings, reported Vietnam Fruit and Vegetables Association (VinaFruit).

According to VinaFruit, July alone saw Vietnamese fruit and vegetable businesses bag an estimated US$475.5 million from exports, up 90.7% year on year.

Fruit and vegetables make up the commodity group that has recorded the highest export growth among Vietnamese agro-forestry-fishery products since the beginning of the year.

Most notably, fruit and vegetable exports to China in the first half of the year witnessed impressive growth with a turnover of US$1.76 billion, marking an increase of 121.9% year on year and accounting for 65.8% of the country’s share of fruit and vegetable exports.

Meanwhile, Vietnam also spent US$1.07 billion on importing fruit and vegetables in July, making the sector rack up a trade surplus of more than US$2.18 billion in seven months.

Property-related risks in Vietnam decreasing

Although the risks associated with Vietnam's struggling real estate market have diminished, Fitch Ratings has warned that the country could still be vulnerable to external shocks.
 
In 2022, the Vietnamese government began its policy-driven crackdown on financing practices among developers in the real estate market. Two well-known developers were detained, and bond issuing regulations were tightened.

Fitch Ratings generally views the authorities' commitment to combating the emerging property-financing bubble as a positive factor for financial stability, although a lax regulatory approach is likely to have contributed to the prior rise in non-compliant underwriting practices among some developers' bond issuers over 2018–2021.

The aggressiveness of regulatory moves in 2022 crystallised liquidity and credit risks for the property and banking sectors. However, Fitch Ratings believes that, with interest rates having fallen back, the associated stress has peaked and worst-case scenarios that might have seen contingent liabilities migrate to the sovereign balance sheet appear much less likely.

In addition, Vietnam also ran down its official foreign-exchange reserves through 2022, which was largely to alleviate downward pressure on the VND. Reserves dropped from a peak of $112.2 billion in January 2022 to $85.9 billion in November 2022, before recovering slightly into 2023.

The deployment of reserves to smooth market volatility is not problematic in itself. However, Fitch Ratings views reserves as an important protection against the risks posed by external shocks in fast-growing export-oriented economies like Vietnam.

The move has eroded Vietnam’s reserve buffer, which was already small – reserves averaged 3.2 months of current account outgoings over 2018-2022, against the ‘BB’ sovereign median of 5.2 months.

Vietnam's energy sector sparks interest from Chinese corporations

The energy sector in Vietnam has piqued the interest of Chinese corporations, paving the way for collaborations and potential investments in renewable energy projects.
 
As part of an ongoing mission to advance the country's green economy, Vietnam has unveiled the 16th iteration of the International Exhibition on Electrical Technology and Equipment, along with the 13th International Exhibition on Energy Saving and Green Energy Products and Technology.

The combined expo kicked off on the morning of July 19 at the Saigon Exhibition and Convention Center and is running for three days.

The international event boasts more than 500 booths representing 350 enterprises from key global economies, including China, Germany, France, the US, Japan, and South Korea.

In his inaugural address, Deputy Minister of Industry and Trade Do Thang Hai emphasised the exposition's function as a vibrant platform for stimulating business expansion, technology exchange, and investment in the energy sector.

He expressed confidence that the event will significantly contribute to realising Vietnam's national energy strategy and bolster the growth of its electricity and renewable energy sectors, thus advancing its environmental protection goals.

"With its distinct geographic and climatic attributes, Vietnam stands as a prospective beacon for the development of renewable energy," asserted Hai.

He shed light on the government's introduction of innovative mechanisms to encourage clean and renewable energy sources like hydroelectric, wind, solar, and biomass. These initiatives, he anticipates, are primed to act as catalysts for the dynamic evolution of this sector within the nation.

The symbiotic relationship between China's and Vietnam's energy industries was noted by Yu Xuehao, deputy secretary-general of the China Electricity Council.

He outlined the extensive involvement of Chinese power companies in Vietnam's market, exemplified by their investment in numerous projects, the active role they play in technical construction, and their participation in power trading and the supply of electrical equipment.

Yu highlighted the 110kV Ha Khau transmission line that has been operational since September 2004 as one such testament to their contribution.

Vietnam to invest $11.25 billion in oil and gas infrastructure by 2030

Vietnam plans to allocate approximately $11.25 billion, mainly from non-state sources, towards the development of its oil and gas supply and storage infrastructure by 2030, aiming to ensure national reserves can sustain up to 90 days of net imports.
 
Vietnam is set to channel approximately VND27 trillion ($11.25 billion), primarily from non-state sources, into bolstering its oil and gas supply and storage infrastructure by 2030, according to the national planning for the 2021-2030 period, with a vision to 2050.

The investment, which will be largely funded by corporate capital and other lawful sources, is part of a strategic initiative to ensure the country's crude oil and petroleum product reserves can sustain 75-80 days of net imports, with an ambitious target to reach 90 days.

The plan also encompasses provisions to guarantee gas reserves that meet domestic market demand and provide for the energy and industrial sectors.

Under the plan, Vietnam is committed to constructing an additional 500,000 cubic metres of petroleum storage facilities by 2030. New crude oil reserves will be strategically located near oil refineries such as Dung Quat, Nghi Son, and Long Son, with a combined capacity of 1-2 million tonnes.

In terms of commercial reserve infrastructure, the country will continue to utilise its 89 existing warehouses, but expand their capacity to approximately 1.4 million cu.m. Furthermore, 59 new commercial petroleum warehouses will be established across various localities, adding a total capacity of about 5.1 million cu.m.

Beyond 2030, Vietnam plans to continue infrastructure development to increase the capacity of storage tanks to three million tonnes of crude oil. An estimated 581km of the petroleum pipeline system will be upgraded, followed by the construction of a new aviation fuel pipeline from the source warehouses in Ho Chi Minh City, Dong Nai, and Ba Ria-Vung Tau to Long Thanh International Airport warehouses.

The country will maintain the operation of its 16 existing liquid petroleum gas (LPG) warehouses until 2030. Investments will be directed towards the construction of liquefied natural gas (LNG) reserve infrastructure at the Cai Mep Industrial Park in Ba Ria-Vung Tau and Nam Dinh Vu Industrial Park in the northern port city of Haiphong, with a total capacity of about 5.1 million tonnes per year.

This period will also see an expansion of the LPG and LNG storage system to increase capacity across all regions.

MPI calls on investors to make suggestions in pharma sector

The Ministry of Planning and Investment has called on investors and manufacturers to contribute opinions and proposals to attract more investment capital and receive technology transfer to promote the development of the pharmaceutical sector of Vietnam.
 
Nguyen Thi Bich Ngoc, deputy minister of Planning and Investment, made the remarks at an event themed Realising Resolution 29: New Approaches for Pharma-Healthcare Development, which was organised by Vietnam Investment Review on July 20.

Vietnam’s pharma and healthcare sector has much potential for development. To draw investment in pharmaceutical production, the 2016 Pharmacy Law stipulates state policies on investment incentives for the production of medicinal ingredients, vaccines, and traditional, herbal, and rare drugs. It simultaneously incentivises scientific research on preparation technology and biotechnology for the production of new products.

However, according to Ngoc, the pharma sector’s development has yet to match the potential as well as the government’s expectations. Thus, she said the event was an occasion for policymakers similar to the Ministry of Planning and Investment (MPI) to listen to open opinions from experts, investors, and manufacturers in order that the pharma sector can better conditions to diversify the portfolio of pharmaceutical products, receive international technology, and attract more capital investment inflow in this sector.

The first sector that the deputy minister proposed experts and investors discuss is how to improve competition in the pharmaceutical supply chain and medical services. The participants of the event were suggested to discuss the current regulations related to the mechanism of bidding, investment, and the mechanism of management and supervision of projects after licensing and how to receive the technology transfer in producing vaccines, special medicine, among others.

Vietnam to launch unified e-commerce platform across 63 cities and provinces

The Department of E-Commerce and Digital Economy, under Vietnam's Ministry of Industry and Trade (MoIT), is leading an initiative to create a unified e-commerce platform spanning all 63 cities and provinces.
 
The aim is to bridge the e-commerce development gap, consolidate local platforms, stimulate online transactions, and foster a sustainable digital marketplace.

This move aligns with the Prime Minister's directive No.645/QD-TTg, dated May 2020, which approved the National E-commerce Development Master Plan for the 2021-2025 period.

The current landscape of online trade promotion on local e-commerce platforms has been fraught with inefficiencies and limitations. The task at hand is to stimulate the growth of these local platforms, while preserving their regional characteristics and leveraging the advantages of the most dominant e-commerce sites.

The proposed unified e-commerce platform for all 63 cities and provinces is envisioned as a network that interconnects local e-commerce platforms and integrates them with popular platforms. This would create a multidimensional and efficient trading environment, fostering a vibrant digital marketplace.

The MoIT views the construction of a unified e-commerce platform as a strategic move. It is seen as a response to the practical needs of businesses operating nationwide and aligns with the government's objective of assisting them in their transition to e-commerce, as outlined in the National E-commerce Development Plan for 2021-2025.

The unified platform is designed with four main objectives in mind. Firstly, it looks to bridge the e-commerce development gap between major cities and other localities. Secondly, it seeks to consolidate local e-commerce platforms across the country under a single digital address.

It is also intended to promote the widespread use of e-commerce among businesses and communities. This will be achieved by showcasing local speciality products, especially those under the One Commune, One Product initiative. The goal is to stimulate online transactions and increase sales.

Finally, it is expected to contribute to the creation of a healthy, competitive, and sustainable e-commerce market.

Representatives from the E-commerce Development Centre, the unit tasked with implementing the project, explained that the unified e-commerce platform will serve as a centralised supply chain model spanning national and local levels. It will also provide a venue for sharing and exchanging goods between localities nationwide.

Furthermore, it will offer online marketing and sales promotion tools, enabling businesses to perform most operations on a single platform. This is expected to aid firms and individuals in their e-commerce development efforts, while creating a concentrated environment that attracts greater numbers of both suppliers and consumers.

Invoice fraud on the rise: taxman

The General Department of Taxation has raised concerns over a surge in invoice fraud, as certain businesses have taken advantage of the shift from paper invoices to e-invoices for illicit gains and illegal trading. This trend has led to a significant increase in tax evasion and fraudulent activities.

Dang Khac Phuc, head of the Tax Office of Binh Thanh District, HCMC, shared this alarming situation during a mid-year meeting of the HCMC tax authority on July 19. Since e-invoices were introduced a year ago, more than 17,000 e-invoices with authentic tax codes and 450,000 e-invoices without codes have been issued in HCMC.

He further explained that many businesses are attempting to pay lower tax amounts or evade taxes altogether by obtaining invoices to claim deductions for part of their expenses. Consequently, illegal invoice trading services have sprouted to cater to this demand.

Phu Tho Province’s police recently uncovered an invoice crime ring, involving five individuals who established 524 shell companies to sell invoices to businesses and organizations. Between March 2022 and September 2022, the total value of e-invoices issued by these companies reached a staggering VND33,000 billion.

A company in Binh Thanh District, supposedly dealing in trading salangane nests, issued invoices amounting to VND34,000 billion within one week. However, tax authorities found that only VND40 million was related to salangane nest trading, while the rest was for stock trading, raising suspicion of fraudulent activities.

Such cases are just a few among many other businesses showing signs of tax crimes through the issuance of fraudulent invoices amounting to thousands of billions of dong.

During the meeting, the tax authorities reported that tax collection in the first half of this year reached VND164,290 billion, meeting nearly 51% of the full-year estimate. However, the figure was 5% lower than in the same period last year.

Tax debt in HCMC surges

Tax debts in HCMC have soared to VND43 trillion, piling pressure on the city’s tax department.

This staggering figure translates to tax debts constituting over 9.2% of the tax revenue target. This year, the city has been entrusted with collecting nearly VND469.4 trillion for the state budget.

According to the HCMC Tax Department, the city’s total tax debt increased by 16.6% compared to late 2022. Notably, out of the total tax debt, around VND12.7 trillion is specifically related to cases where the tax amount owed increased dramatically for certain taxpayers, with several firms owing taxes ranging from over VND1 trillion to nearly VND2.7 trillion.

Excluding the cases of sudden tax debt surges, the tax debt in HCMC had stood at nearly VND41.8 trillion by the end of May, or 8.9% of the tax revenue target.

With tax debts accounting for nearly 9.2% of the city’s allocated budget target, the municipality faces a considerable challenge in meeting the annual tax department’s goal of keeping the total tax debt at or below 5% of the total revenue for the year.

In the first half, tax authorities have issued 45,473 tax enforcement decisions, totaling VND185.4 trillion in owed taxes. Although this represents a 7% decrease compared to the same period, the amount of tax debt recovered has increased by a staggering 126%.

The HCMC Tax Department retrieved VND12.7 trillion in tax debt from January to June, down 6% compared to the same period last year. This recovery comprised nearly VND5.7 trillion from 2022 and VND7 trillion from new tax debts in 2023.

In efforts to address the issue, the HCMC tax authority has been proactively handling accumulated tax debts, utilizing the provisions outlined in Resolution No. 94/2019 of the National Assembly.

It has processed debt cancellations and tax penalty waivers, benefiting 119,975 taxpayers, totaling VND4.7 trillion.

In addition, the HCMC People’s Committee has issued 329 debt cancellation decisions, benefiting 17,232 taxpayers with a total overdue tax amount close to VND500 billion.

JICA backs Vietnam’s agriculture and aquatic industries

Vietnam’s agricultural and aquatic industries will receive US$10.9 million in aid from the Japan International Cooperation Agency (JICA).

This non-refundable grant from JICA is part of the “RETAQ” project, which focuses on enhancing the testing, certification, and quality consultancy capabilities of the Center of Testing for Agricultural and Aquatic Products.

This technical cooperation initiative is a crucial step in ensuring Vietnam’s compliance with international standards, particularly those outlined in the World Trade Organization’s (WTO) Agreement on the Application of Sanitary and Phytosanitary Measures (SPS).

In a joint effort with Vietnam’s Ministry of Agriculture and Rural Development, JICA organized a ceremony on July 20 to hand over the sponsored equipment and inaugurate a testing facility.

This collaboration will span over three years, with the project scheduled to commence in November 2023.

As a member of the WTO since 2007, Vietnam bears the responsibility of adhering to various agreements, including the SPS Agreement. Compliance with these measures is vital to safeguard the health of humans and animals in the country and address technical barriers to the export of agricultural and aquatic products.

The RETAQ project aims to strengthen testing and certification capacities, promoting the improvement of the safety and quality of Vietnam’s agricultural and aquatic products for both domestic consumption and export purposes.

Vietnam’s increasing income and economic growth have led to a rising demand for safe food products. JICA has emphasized the need for comprehensive food safety management, including proper pesticide and chemical fertilizer use and distribution sanitation.

In response, Vietnam established the Reference Testing and Agrifood Quality Consultancy Center (RETAQ Center) in 2012. This center develops food inspection standards and provides technical guidance to relevant institutions.

Since 2019, JICA has been implementing the Grant Aid “Project for Enhancing Laboratory Capacities of the Reference Testing and Agrifood Quality Consultancy” to provide the RETAQ Center with necessary inspection equipment and facilities.

With the new technical cooperation project, JICA aims to strengthen the food safety inspection capacity of RETAQ Center staff, resulting in improved food safety inspection institutes across Vietnam.

This project aligns with SDGs Goals 2 (Zero Hunger) and 3 (Good Health and Well-being) by expanding and enhancing Vietnam’s food safety inspection system.

HCM City’s enterprises keep pace with growth momentum

With flourishing economic results in the first six months of this year, many enterprises in Ho Chi Minh City expect to keep pace with the growth momentum to accelerate their production and business activities in the coming months.

According to the municipal Statistics Office, in the period, total retail sales of goods rose by 9.7% year-on-year, revenue from accommodation and food services increased by 36.2%. In particular, the number of foreign tourists to the city tripled over the same period, contributing to the boost in domestic demand and economic growth.

For the third quarter, 26.4% of the respondents predicted that their production and business will be better, 35.1% stable, and 38.5% more difficult.

Promotion activities needed to boost Vietnam-Austria trade ties: official

It is necessary to further step up trade promotion activities and disseminate information to the business community about the benefits of the EU-Vietnam Free Trade Agreement (EVFTA) to take advantage of strengths of both Vietnam and Austria to further boost bilateral trade ties.

The statement was made by Dinh Thi Hoang Yen, First Secretary in charge of trade affairs at the Vietnamese Embassy in Austria, while talking to Vietnam News Agency reporters in Europe on the threshold of President Vo Van Thuong’s official visit to the European country.

According to Yen, trade relations between Vietnam and Austria began in the 1970s, and continuously grew at an average rate of 12% per year from 2007 to 2019 before the COVID-19 outbreak, with the trade balance always tilting towards Vietnam. Two-way trade reached 2.79 billion USD last year, down 0.2% year-on-year.

Austria is currently Vietnam's 7th largest trading partner in the European Union (EU) and 9th in Europe, while Vietnam is Austria's top trading partner in the Association of Southeast Asian Nations (ASEAN).

In the structure of Vietnam's exports to Austria, mobile phones and spare parts account for 80-90% of the value, followed by textiles, footwear, machinery and iron and steel products. Meanwhile, Vietnam mainly imports from Austria machinery and equipment (accounting for 30-40% of the total value), pharmaceutical products, fibers and computer components. In recent years, glass products have become Austria’s strong export to Vietnam.

Yen forecast that in the coming time, potential areas of cooperation between the two countries can be industry 4.0, automobile industry, agricultural industry, environmental industry, green energy, healthcare, forestry and wood processing, construction materials, vocational training and tourism.

Currently, Austria is short of human resources in many fields, especially healthcare. Therefore, the two sides can cooperate on labour in the fields of nursing and information technology to implement the Memorandum of Understanding on Cooperation in E-Commerce and Industry 4.0 signed between the Vietnamese Ministry of Industry and Trade, and the Austrian Ministry for Digital and Economic Affairs, the official added.

Vietnam, US talk climate finance solutions

Vietnamese and US officials discussed economic outlook and climate finance at a meeting held by the State Bank of Vietnam (SBV) and the Foreign Trade University (FTU) in Hanoi on July 21.

The event was part of an official visit to Vietnam by US Secretary of the Treasury Janet Yellen.

Speakers at the meeting pointed out that the world economy is still facing numerous difficulties in the post-COVID-19 pandemic period, including high and persistent inflation, the trend of tightening monetary policies, disrupted supply chains, growth slowdown, and recession risks. Besides, countries also have had to cope with challenges posed by climate change.

These problems have been negatively affecting enterprises' production and business activities as well as people’s life quality, they said.

SBV Governor Nguyen Thi Hong said the central bank of Vietnam is always steadfast in the target of controlling inflation, stabilising the macro-economy, and ensuring safety for the banking system. To that end, it has kept a close watch on the situation, proactively used measures and tools at appropriate levels and points of time, identified the focus of each period to take suitable actions, and closely coordinated the monetary policy with the fiscal and other macro-economic policies.

Meanwhile, Yellen said the US is pursuing policy priorities that aims to strengthen the resilience of supply chains and promote strong and comprehensive growth, and that it is ready to cooperate with Vietnam to overcome challenges and develop their economies.

Talking about climate change response measures, Vietnamese Minister of Natural Resources and Environment Dang Quoc Khanh described climate change as an irreversible trend and the most serious challenge to humanity at present. Climate change response therefore is becoming one of the priorities of all development decisions in the world.

As one of the countries hit hardest by climate change, Vietnam has played an active and responsible role in reducing greenhouse gas emissions and adapting to this global phenomenon. It has also taken steps to adopt a green development model. The country made a commitment to achieving net zero emissions by 2050 at the 26th UN Climate Change Conference (COP26) and recently approved a political declaration on the establishment of the Just Energy Transition Partnership (JETP) with G7 and non-G7 partners, he went on.

Yellen held that to minimise adverse impacts of climate change, countries will need a lot of time and resources, adding the US attaches importance to the role of multilateral development banks (MDBs) and the private sector in mobilising finance for climate change response projects and programmes.

Meanwhile, Hong noted as an important source of finance for the economy, the banking sector of Vietnam is always aware of its role in providing funding for the realisation of the Sustainable Development Goals.

She shared Yellen’s view that countries can diversify capital sources for “green” projects through MDBs like the World Bank (WB) and the Asian Development Bank (ADB) to use long-term loans with reasonable costs to resolve climate change challenges.

The meeting, which attracted over 300 participants including many female officials and FTU students, affirmed women’s role and attention as well as young people’s awareness and determination to join hands to cope with such global challenges as climate change to achieve a greener society and a sustainable and prosperous future for all.

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