Viet Nam jumped 12 places in the Economist Intelligence Unit (EIU)’s latest business environment rankings which measure the attractiveness of doing business in 82 countries with 91 crucial indicators.

According to EIU, Viet Nam, along with Thailand and India is among Asian countries that have improved their ranking the most over the past year.

It added that Singapore has retained its position as the best business environment over the next five years while Australia, Taiwan (China) and South Korea ranked in the global top 20.

Over the past four months, Viet Nam attracted 750 new foreign-invested projects, worth over US$4.1 billion, up 65.2 per cent in the number of projects and 11.1 per cent in the level of capital, according to Foreign Investment Agency (FIA) under the Ministry of Planning and Investment (MPI).

The growth of the number of new projects was much higher than that of investment capital, which demonstrated that small and medium-sized foreign investors continued to believe in the country's investment environment, the FIA has said.

During the period, the country allowed 386 operating projects to raise their capital by nearly $1.66 billion, up 19.5 per cent in volume but down 68.6 per cent in value.

A decline in adjusted capital in four months, however, was lower than 70.3 per cent seen in three months; 85.2 per cent in two months and 76 per cent in the first month, according to the agency.

Besides, the number of operating projects which saw capital added increased sharply instead of a modest rise of 2.6 per cent in three months and a slump of 6.3 per cent in two months. That once again confirmed investors' confidence in Viet Nam's investment environment and continued to expand their existing projects in the country, the FIA noted.

At the same time, foreign businesses were also approved to pay over $3.1 billion for capital contribution and share purchases in a total of 1,044 transactions, marking yearly increases of 70.4 per cent in value and 2 per cent in volume.

The number of countries and territories investing in Viet Nam in the period amounted to 77. Singapore took the lead by pouring close to $2.2 billion into the market, followed by Japan with nearly $2 billion and China with $752 million.

According to the MPI, global investment flows currently focus on fields such as high technology, innovation, research and development, green and digital economy, circular economy and clean energy. These were also the areas that Viet Nam had prioritised attracting foreign investment and giving many incentives and investment support, thereby opening up many opportunities for foreign investors.

Viet Nam had been encouraging foreign investors to continue investing in the above-mentioned fields. At the same time, it had given priority to investment projects using less labour, energy, land and resources, bringing high-added value, promoting green growth and sustainable development of the economy, the ministry said.

It also urged foreign investors to foster their co-operations with domestic enterprises, supporting them in improving their production capacities and creating conditions for them to participate deeply in the global value chain. 

Vietnam Airlines Group to provides 7.3 million seats this summer

Vietnam Airlines Group, which comprises Vietnam Airlines, Pacific Airlines and Vietnam Air Services Company (VASCO), has announced that to meet travel demand in the summer travel season, it will offer more than 7.3 million seats on domestic and international routes from June 1 to August 8.

In the peak period of these months, there will be nearly 500 flights operated by the group per day, 30% greater than usual level.

The busiest routes are those connecting Hanoi and Ho Chi Minh City with popular destinations such as Da Nang, Hue, Quy Nhon, Nha Trang, Da Lat and Phu Quoc as well as linking Vietnam to Japan, the Republic of Korea, Thailand.

The three carriers are recording a rapid increase in bookings, with many flights during the peak travel season already filled having over haft of their seats occupied.

They recommended passengers check in online, arrive at the airport two hours before departure for domestic flights and three hours for international flights.

Outlet stores - solution to weakening consumption

Experts believe outlet stores would provide an effective solution to the problem of lukewarm consumption demand as they encourage consumers to spend more on deeply-discounted products.

Le Viet Nga, deputy director of the Domestic Market Department, Ministry of Industry and Trade, revealed that the department was working on a plan to promote outlet stores in Viet Nam.

According to Nga, outlet stores first appeared in the US in the 1930s to offer damaged products to employees at low prices. This win-win concept was so successful that it has quickly become prominent with over 15,000 stores nationwide.

Outlet stores have been present in Ha Noi since 2012 but their business was not so profitable because of low product diversity. Some stores, owing to their misconception, went as far as to being used as a dumping ground for their low-quality products, alienating Vietnamese consumers.

But the situation is different now. Outlet stores in the country have improved to win back consumers and become a go-to destination for those in search of bargains amid the recession.

Commercial expert Vu Vinh Phu underlined the need for new outlet stores in the country and highlighted four factors essential for the success of those outlet stores, which are convergence, professionalism, connectivity, and governance.

Convergence means the clustering of hundreds of stores of different brands in a single outlet mall to increase focus and coherence. Convergence holds the key to their success because it improves diversity and sourcing efficiency.

Professionalism denotes a way of dealing with customers in accordance with certain normative values. A respective attitude and high standards of service always go a long way with better sales of products.

Connectivity signifies the proximity to tourism destinations, entertainment centres, and transport hubs. By edging closer to those commercial magnets, outlet malls become better positioned to attract tourists and visitors.

Governance underlines the importance of a code of conduct for firms' employees and a set of standards for their products. Those values can help safeguard producers and consumers against illegal and unethical actions, and improve their credibility.

Other experts held that outlet stores have been the driving force behind the growth of tourism in many countries as they attract hundreds of thousands of tourists looking for bargains during the shopping season.

They reduce an important financial loss for manufacturers and give consumers access to quality products at 30 to 70 per cent discounts. As such, the stores can be employed as a measure to stimulate consumption.

Ha Noi was considering a plan in February to set aside 811ha of land for the construction of new outlet malls. The move was expected to bolster commercial activities in the city given two economic drivers, public investment and exports, are declining. 

Viet Nam is South Korea's 4th largest rubber supplier

Vietnamese rubber exports to South Korea in the first four months of 2023 totalled 12,470 tonnes, valued at US$18.92 million, up 5.6 per cent in volume but down 15 per cent in value year-on-year, according to statistics from the General Department of Customs.

Viet Nam's natural rubber is the primary product exported to South Korea. Particularly, the SVR 10 accounted for the largest portion of the total exported rubber, 28.05 per cent, followed by SVR CV60 and SVR 3L with 24.53 per cent and 14.44 per cent, respectively.

The drop in value is attributed to the sharp decrease in average export price of all types of rubber over the same period in 2022.

Thailand, Indonesia, China, Viet Nam, and the Philippines are the top five rubber suppliers to South Korea, with Viet Nam ranking fourth.

However, the Vietnamese rubber market share is shrinking here, while the market shares of Indonesia, China, the Philippines, Cambodia, and Singapore tending to increase over the same period in 2022.

In the South Korean market, Viet Nam's rubber has to compete with Thai and Indonesian rubber.

Therefore, the Import-Export Department under the Ministry of Industry and Trade recommends Vietnamese businesses diversify their products to meet the requirements of the market.

The ministry will continue to work and optimise the efficacy of the structures for bilateral cooperation to complete specific goals, such as putting together an action plan to achieve the bilateral trade target of $100 billion in 2023.

Vietnamese companies also need to encourage technology transfer, raise the standard of human resources, and improve trade and investment in the textile, automotive, mechanical, and electronic industries. 

PV Power enjoys “BB” rating for third consecutive year

Fitch Ratings has affirmed that PetroVietnam Power Corporation (PV Power)’s long-term foreign-currency issuer default rating (IDR) of “BB” with a positive outlook.      

This marks the third consecutive year that PV Power has received a “BB” rating with a positive outlook, the highest possible rating that a Vietnamese company can reach.

The rating is based on PV Power's Standalone Credit Profile (SCP) assessment of “BB” and is on a par with the IDR of its 80% parent, Vietnam Oil and Gas Group (PVN) which has a “BB+” rating.

PV Power's SCP is driven by its strong market position as the nation’s second-largest electricity producer, duly accounting for roughly 5% of the country’s total electricity output and 5% of installed capacity in 2022.

It also benefits from diversified fuel sources and long-term power-purchase agreements (PPAs) with Vietnam Electricity (EVN), which has a rating of “BB+”, for more than 80% of its electricity output and a strong financial profile.

However, EVN's IDR constrains PV Power's SCP, even though PV Power's financial profile is stronger than its SCP assessment indicates. The positive outlook is therefore driven by the positive outlook on EVN's IDR.

The rating is expected to help the firm to gain more positive attention from international credit institutions. Currently, PV Power is investing in many projects with large capital needs such as Nhon Trach 3 & 4 Power Plants and a power project using imported liquefied natural gas (LNG) in Quang Ninh.

As of the end of the first quarter the year, PV Power’s total electricity production had surpassed four billion kWh, duly exceeding its plan by 16%, with a revenue of VND7.91 trillion, equal to US$337.04 million, 20% higher that its quarterly plan and up 10% on-year.

This marks the third consecutive year that PV Power has received a “BB” rating with a positive outlook, the highest possible rating that a Vietnamese company can reach.

The rating is based on PV Power's Standalone Credit Profile (SCP) assessment of “BB” and is on a par with the IDR of its 80% parent, Vietnam Oil and Gas Group (PVN) which has a “BB+” rating.

PV Power's SCP is driven by its strong market position as the nation’s second-largest electricity producer, duly accounting for roughly 5% of the country’s total electricity output and 5% of installed capacity in 2022.

It also benefits from diversified fuel sources and long-term power-purchase agreements (PPAs) with Vietnam Electricity (EVN), which has a rating of “BB+”, for more than 80% of its electricity output and a strong financial profile.

However, EVN's IDR constrains PV Power's SCP, even though PV Power's financial profile is stronger than its SCP assessment indicates. The positive outlook is therefore driven by the positive outlook on EVN's IDR.

The rating is expected to help the firm to gain more positive attention from international credit institutions. Currently, PV Power is investing in many projects with large capital needs such as Nhon Trach 3 & 4 Power Plants and a power project using imported liquefied natural gas (LNG) in Quang Ninh.

As of the end of the first quarter the year, PV Power’s total electricity production had surpassed four billion kWh, duly exceeding its plan by 16%, with a revenue of VND7.91 trillion, equal to US$337.04 million, 20% higher that its quarterly plan and up 10% on-year.

62,000 new enterprises established during five-month period

More than 61,900 first were established in Vietnam with a total registered capital of VND568.7 trillion during the first five months of the year, marking a decline of 1.6% in the number of enterprises, and 25.3% in terms of registered capital on-year, according to figures given by the General Statistics Office (GSO).      

May alone witnessed the country record more than 12,000 newly-established enterprises with a registered capital of VND103.7 trillion, thereby representing a decrease of 24.2% in the number of enterprises and a drop of 32.9% in registered capital

Some 5,952 enterprises have returned to operation, down 38.1% over the previous month and up 14.3% over the same period from last year.

The average registered capital of a newly-established enterprise in the first five months of the year reached VND9.2 billion, representing a fall of 24.1% on-year.

The GSO points out that the number of newly-established firms and those that have resumed operation continued to drop, while the number of enterprises temporarily suspending business and waiting for dissolution still increased.

IrAero launches first direct flight on Irkutsk-Hanoi route in early June

Russia’s IrAero Airlines has unveiled that it will officially launch its first direct flight on the Irkutsk-Hanoi international air route on June 4. 

IrAero Airlines will launch its first direct flight on the Irkutsk-Hanoi international air route on June 4 (Source: Trend News Agency)
Alexander Makin, transport organization services manager of IrAero, said the airline has been actively preparing for the resumption of air routes between Russia and Vietnam.

In the first phase, he said IrAero will operate a flight per week on Friday, starting on June 4, and it will increase its frequency of flights to twice a week on Friday and Sunday, starting on July 7.

The carrier will make use of the Sukhoi Superjet 100 aircraft on the route. Currently, the carrier offers ticket fares from US$367.

Meanwhile, Sergey Krupnov, deputy general director of IrAero, unveiled that the carrier also intends to launch flights to Nha Trang city’s resorts from Irkutsk, Krasnoyarsk, Khabarovsk, Vladivostok, and possibly some other Far Eastern airports in the coming phase.

The airline has received approval from the Vietnamese aviation authorities to operate Superjet flights to Cam Ranh International Airport, with preparation work actively getting underway, said Krupnov.

Improving FDI quality, quantity crucial for Vietnam: Insiders

Amid the slowing down of the global investment flows, experts held that improving both quality and number of foreign investment projects is a heavy task for Vietnam, requiring great efforts from the Vietnamese Government to fulfil the “dual targets”.

According to the Foreign Investment Agency under the Ministry of Planning and Investment (MPI), as of May 20, Vietnam had drawn 10.86 billion USD of foreign direct investment (FDI), down 7.3% year on year, including 5.26 billion USD of newly-registered capital, up 27.8%.

Do Nhat Hoang, Director of the agency said that the increase in the amount of newly-registered capital in five months was higher than the 11% recorded in the first four months of this year.

Meanwhile, the number of new projects in the five-month period also surged 66.4% year on year to 962 projects, showing foreign investors’ strong confidence in the investment environment of Vietnam, he said.

Data from the agency showed that 7.56 billion USD of FDI was disbursed in the first five months of this year, revealing an improvement compared to that in the beginning of previous years.

Hoang affirmed that the slow-down in FDI attraction is not due to Vietnam’s weaker competitiveness but the common trend of the global investment flow.

The application of the global minimum tax from 2024 is also making investors hesitate to make strong investment in Vietnam amid the impacts of the policy, according to the agency.

However, despite the improvement in FDI attraction, a VinaCapital official held that if Vietnam does not promptly enhance its competitiveness, it may be lag behind in the race.

VinaCapital Chief Economist Michael Kokalari underlined two latent risks for Vietnam in drawing FDI inflows – the competition from India, Malaysia and Indonesia, and the influence of the global minimum tax policy.

In late April, Prime Minister Pham Minh Chinh held a dialogue with foreign investors, and right after that issued a directive on a number of tasks and solutions to enhance the efficiency of foreign investment in the new period.  The Government assigned specific tasks to particular ministries, sectors and agencies, focusing on speeding up the design of planning and preparing conditions to attract investors, and strengthening investment promotion activities.

In its report, the Foreign Investment Agency pointed out that FDI has still concentrated in localities with great advantages in infrastructure, human resources, administrative procedures and dynamic investment promotion like Hanoi, Bac Giang, HCM City, Binh Duong, Dong Nai, Bac Ninh and Hai Phong.

MPI Minister Nguyen Chi Dung said that it is necessary to prepare new investment incentives and support packages before the global minimum tax is applied in 2024 to increase the competitiveness of the national investment environment and harmonise interest of investors.

Experts held that in order to improve the quality of FDI inflows, Vietnam should focus on drawing large investors.

Kim Sung-hun, General Director of Amkor Technology Vietnam, which is implementing a semi-conductor factory in Bac Ninh, proposed Vietnam give clear and detailed regulations in fire prevention and fighting, while promptly delivering decisions and measures to respond to the possible worsening investment environment when the global minimum tax is applied.

Kokalari held that the global minimum tax policy may become a barrier for the FDI inflows to Vietnam, as tax incentives are not the key factor for foreign investors to build their factories in Vietnam. The economist said he believes the Vietnamese Government will find out alternative measures to balance tax obligations when the global minimum tax is enforced.

Hanoi ready for official construction of Ring Road No.4

Hanoi is urgently speeding up the progress of sub-projects of the Ring Road 4 - Hanoi Capital Region project so that it can start the official construction of the important road in June, according to the Hanoi Management Board for Traffic Infrastructure Investment and Construction Projects.

The board reported that over 5.85 trillion VND (over 249.36 million USD) has been so far allocated for the project, of which more than 3.97 trillion VND has been disbursed.

The municipal People’s Committee has so far approved three sub-projects and completed the appraisal of the feasibility study report of specialised construction agencies. The local authorities have also allocated hundreds of billions of VND for the sub-projects.

The management board and consulting units completed the feasibility study report and submitted it to the municipal Department of Transport on May 29. The report is expected to be sent to the municipal People's Committee for consideration and then submitted to the Ministry of Planning and Investment and the State Appraisal Council before June 10, 2023.

The land clearance, compensation, and resettlement work in districts related to the project have recorded positive results.

The management board has completed the selection of consulting contractors for surveying and making technical design as well as cost estimation for the construction of high-voltage power transmission lines from 110kV to 500kV.

The surveying and technical design are scheduled to be completed before June 15, 2023, and submitted to the municipal Department of Industry and Trade for appraisal and approval in June and July 2023.

The Ring Road No.4 in the Hanoi Capital Region is about 112.8km long, with around 58.2km in Hanoi, nearly 19.3km in neighbouring Hung Yen and some 35.3km in Bac Ninh provinces.

The project has total investment of over 85.8 trillion VND (3.73 billion USD), more than 28.1 trillion VND of which will come from the State budget, over 28.19 trillion VND from the local budget and the remainder from build-operate-transfer (BOT) venture.

Investment increase for Tuyen Quang – Phu Tho Expressway approved

Deputy Prime Minister Tran Hong Ha has approved an investment increase for the Tuyen Quang- Phu Tho Expressway connecting with the Noi Bai – Lao Cai Expressway project.

Accordingly, investment capital will be increased from 3.2 trillion VND (136 million USD) to 3.753 trillion VND to create a breakthrough in economic development for the two northern provinces.

The expressway, which is funded with the central and local budgets, stretches 40.2km, including 11km to be built in Tuyen Quang province and the rest in Phu Tho province.

In the first phase from 2020 to 2023, the expressway has four lanes, allowing vehicles to travel at a maximum speed of 80km per hour. It will be expanded in the second phase until 2025.

Tuyen Quang and Phu Tho provinces are required to coordinate together to adjust the investment policy of the project to ensure the expressway has at least four complete lanes, allowing vehicles to travel at 120km per hour. 

Once completed, it will help ease congestion on National Highway 2 and shorten travel time between Ha Giang, Tuyen Quang and Phu Tho provinces with the northern key economic region and Hanoi, while enhancing the efficiency of the Noi Bai- Lao Cai expressway.

The first phase of the project is scheduled to be completed by the end of this year.

Vietnam, RoK step up trade, locality-to-locality cooperation

A Vietnam-Republic of Korea (RoK) forum for locality-to-locality cooperation and trade promotion took place in Seoul on May 29, attracting more than 100 participants from large Korean investment funds, conglomerates, and small- and medium-sized enterprises.

The event was co-organised by the Vietnamese Ministry of Foreign Affairs, Vietnam-Korea Businessmen and Investment Association (VKBIA), and People’s Committees of Can Tho city, and Bac Lieu, Kom Tum and Thua Thien-Hue provinces from Vietnam.

Trinh Thi Mai Phuong, deputy head of the ministry’s Consular Department, said the forum is a highlight of the programme to promote Vietnamese localities in the RoK lasting from May 29 to June 1.

VKBIA President Tran Hai Linh stated the collaboration between the nations and their localities has been sustained and strongly recovered after a long time of hiatus due to the COVID-19 pandemic.

Linh, who is also a member of the Vietnam Fatherland Front Central Committee, highlighted economy-trade-investment cooperation as a pillar and growth driver of the countries’ relationship, which was upgraded to comprehensive strategic partnership last year.

Leaders of Can Tho, Bac Lieu, Kon Tum, and Thua Thien-Hue informed the forum on their localities’ potential, strength, socio-economic development orientations, and Korean investment attraction so far.

They hoped the RoK business community will make more diverse and suitable investments in Vietnam and looked forward to increasing their localities’ cooperation with the East Asian nation.

Two RoK corporations, SoluM and Hancom, who specialise in green industry, 4th industrial revolution, smart city and high-tech education and training, expressed their desire to promote cooperation with Vietnam via the VKBIA.

Participating businessmen also voiced their investment directions in such areas of the Vietnamese localities' strength and demand as green energy, green industry, smart city, high-tech farming, and high-quality human resources development.

On the occasion the localities of Vietnam and the VKBIA signed a cooperation pact focusing on the promotion of investment and locality-to-locality collaboration.

Hanoi's CPI grows 1.52% in five months

Hanoi’s consumer price index (CPI) rose by 1.52% in the first five months of 2023 compared with the same period last year, according to the Hanoi Statistics Office.

Among the 11 commodity groups, three saw price decreases, namely education (4.11%), transportation (2.03%), and post and communications (0.35%).

The other eight groups saw price increases, namely culture, entertainment, and tourism (5.26%); restaurants and food services (4.34%); drinks and tobacco (3.53%); garment, headwear, footwear (1.82%); household applications (1.41%); housing, electricity, water, fuel, and construction materials (0.47%); medicines and healthcare services (0.36%); and other goods and services (3%).

Gold prices increased by 0.78%, while USD prices increased by 3.2% compared to the same period last year.

The export turnover in the first five months of the year was estimated at 6.8 billion USD, down 0.3% from the same period last year. Some commodity groups saw a decrease in export turnover including computers, electronic goods, and components (0.4%), textile and garment products (20.6%); wood and wood products (15.3%); and footwear and leather products (5.5%).

Some groups posted export turnover increase including machinery, equipment, and spare parts (5.8%); means of transport and spare parts (23.7%); fuel (2.4%); and agricultural products (22%). The export of phones and components reached 98 million USD, 2.2 times higher than the same period last year.

The city’s import turnover in the first five months was estimated at 14.5 billion USD, down 14% from the same period last year, of that the domestic economic sector imported 11.8 billion USD worth of goods, down 13.7%, and the foreign-invested sector imported 2.7 billion USD worth of goods, down 15%.

Groups of goods with great import value include machinery, equipment, and spare parts (2.374 trillion USD, down 2%); fuel (over 2 trillion USD, down 13.8%); computers, electronic goods, and components (915 million USD, down 28.6%); means of transport and spare parts (827 million USD, down 15.4%); iron and steel (674 million USD, down 20.4%); plastics (455 million USD, down 29.8%); metal (400 million USD, down 18.9%); and other goods (nearly 4.9 trillion, down 7.3%).

In May alone, the city’s CPI increased 0.16% from the previous month, and 0.36% year-on-year.

Eight out of the 11 commodity groups posted increased prices in May including housing, electricity, water, fuel, and construction materials.

Meanwhile, prices of transport services decreased by 2.81% due to fuel prices being revised down on May 5 and May 11.

Prices of post and communications group decreased by 0.38% and restaurants and food services down 0.1% mostly due to falling prices of poultry, aquacultural products, seafood, and vegetables.

HCM City seeks ways to attract more remittances

The southern largest economic hub of Ho Chi Minh City is striving to achieve an annual growth rate of at least 10% in the inflow of remittances during the 2023-2025 period and maintains this rate in 2025-2030.

The information was heard at a seminar held in the city on May 29 by the State Committee for Overseas Vietnamese Affairs of HCM City, in coordination with the State Bank of Vietnam (SBV) Branch in HCM City to seek comments and solutions of overseas Vietnamese intellectuals to effectively attract and optimise remittance resources in the city. 

According to Nguyen Duc Lenh, Deputy Director of the SBV Branch in HCM City, remittances to the city have always maintained a relatively high growth rate and play a crucial role in the city’s socio-economic development.

He acknowledged that one of the factors leading to the strong growth of remittances to Vietnam in general, and to the city in particular, is the consistent maintenance of favourable policy incentives. These incentives include tax and fee exemptions for recipients, as well as the availability of increasingly convenient methods for money transfer and receipt.

The official noted that the city needs to create favourable conditions, and improve the investment environment to attract remittances, thereby making a significant contribution to the city's development.

According to Dr. Nguyen Tri Hieu, in order to attract remittances, macroeconomic factors must be improved to increase confidence of overseas Vietnamese in the country’s development as well as in investment opportunities in the city.

He said that another important factor is to maintain a tax-free policy on overseas remittances and allow recipients to keep foreign currencies or make deposits in foreign currencies at credit institutions.

Peter Hong, Standing Vice Chairman and General Secretary of the Business Association of Overseas Vietnamese (BAOOV), said in order to effectively attract and promote the efficiency remittances and make it an important "boost" to contribute to the economy of Vietnam in general and the city in particular, the government and localities need to have positive policies to create confidence for overseas Vietnamese while creating breakthroughs in policies for expatriates and remittances.

Accordingly, the revised Law on Land should be more open so that overseas Vietnamese can buy houses in Vietnam or increase the attraction of overseas resources into key programmes, works and projects of the State and the city through the  issuance of Government and local administration bonds with many incentives.

Professor Vo Hong Duc, from the University of Western Australia Business School, proposed that the city issue municipal bonds or overseas Vietnamese bonds as a source to provide capital for the construction of large projects in the city.

Central bank demands stronger promotion of cashless payment

The State Bank of Vietnam (SBV) has requested banks, branches of foreign banks, and providers of intermediary payment services to take steps to continue promoting cashless payment and the implementation of the national digital transformation programme.

The move is also set to help with the plan on developing the application of resident data and electronic identification and authentication to serve national digital transformation for the 2022 - 2025 period, with a vision to 2030.

In its Document No 3956/NHNN-TT, the SBV asked banks, foreign banks’ branches, and intermediary payment service providers to continue considering and offering preferential programmes and policies on payment and intermediary payment service fees to customers, and exempt account maintenance fees as well as cash withdrawal fees for the customers entitled to the social security policy.

They were told to actively carry out practical activities in response to the Cashless Day 2023 (June 16) and throughout June.

Besides, the SBV recommended banks and branches of foreign banks in Vietnam coordinate with payment acceptance units such as power, water and telecoms service suppliers, e-marketplaces, supermarkets, restaurants, and shopping centres to hold promotion events and advertise their services to encourage cashless payment.

Intermediary payment service providers were also asked to work with banks, foreign banks’ branches, and goods and service suppliers to launch preferential policies and appropriate promotions for their users.

Over 20 banks lower deposit rates

Over 20 banks have cut deposit interest rates, with the highest rate now set at 8.5% per year.

The rate cuts followed the recent State Bank of Vietnam’s (SBV) interest rate reductions.

Deposit interest rates are down by 0.5 percentage point for the tenor of less than six months. Meanwhile, the rates for six months and longer have been reduced by 0.2-0.3 percentage point compared to two weeks ago.

The big four State-owned commercial banks — Vietcombank, Agribank, BIDV and VietinBank — have cut the rates for six months and longer by 40 basis points, with the highest rate now standing at 6.8-7%.

Currently, the listed rates at most private banks do not exceed 8% per year. However, some banks such as GPBank, SeABank, ABBank, VietABank and PVCombank now offer the highest deposit interest rates ranging from 8.2% to 8.5% per year.

Since May 28, the interest rate for under-six-month deposits has been capped at 5%.

The average rate over the counter for 6–9-month deposits is 7% and 7.4% for 12-month deposits.

For money deposited online, the average interest rate is 7.4% for 6-9 months and 7.7% for one year.

Airlines add 7.3 million seats for summer

Carriers, including Vietnam Airlines, Pacific Airlines, and Vasco announced that they will provide more than 7.3 million additional seats on local and international routes to meet the peak summer demand from June 1 to August 15.
 
In the peak period, airlines will operate nearly 500 flights a day, presenting an increase of approximately 30 percent compared to normal days.

The routes to benefit from this program are Hanoi/HCMC- Da Nang/Con Dao/Hue/Quy Nhon/Nha Trang/ Da Lat/Phu Quoc, and flights to Japan, South Korea, and Thailand.

According to carriers, the seat occupancy rate on air routes during the summer vacation reached more than 50 percent. The airlines have recommended passengers should book tickets early to enjoy a range of options and cheap flights.

In addition, passengers are required to use various forms of check-in to avoid long queues and save time at airports and should arrive at least two hours before a domestic flight, three hours prior to an international flight to complete procedures.

OCOP products should be elevated for exporting

Farm produce under the "One Commune One Product" (OCOP) programme has gradually become popular with domestic consumers in recent years.

But to export, branding and trade promotion for the products need to be implemented methodically by businesses, co-operatives and relevant ministries and local governments.

OCOP is a national programme that seeks to facilitate the development of regional agricultural specialties and rural tourism.

According to the Ministry of Agriculture and Rural Development (MARD), the country has a total of 9,500 OCOP products, of which 65.5 per cent were recognised at the 3-star standard but only 2 per cent of the products got the 5-star standard.

The OCOP programme has been widely developed in many regions of the country, focusing on improving quality as well as diversifying product designs, thereby promoting the advantages of each locality.

Notably, instead of producing raw products, recently many businesses and cooperatives have turned to green, clean, and even refined products to catch up with consumption trends, thus creating a boost in exports for brands.

Along with attaching “stars” to OCOP products, currently, the trade promotion of OCOP products is being implemented by ministries, branches and localities.

OCOP products have entered the domestic supermarket system, retail distribution channels and chain stores.

According to the assessment of the Việt Nam Retailers’ Association, after nearly five years of implementing the programme, consumers are now very familiar with the OCOP name.

Not stopping at the domestic market, producers of OCOP products also seek to penetrate markets abroad.

Trần Thanh Nam, the MARD deputy minister, said that the European Craft Fair being held in December in Italy will be a great opportunity for Vietnamese enterprises to promote their products, expand markets and reach new customers.

Việt Nam’s OCOP products are ready to participate at this fair, Nam said.

Currently, the MARD has also guided its agencies to notify localities to prepare 5-star OCOP products for display and introduction at the fair, he said.

In order to develop the system and expand the consumption market, many Vietnamese enterprises have found a way to "go abroad" for their OCOP products.

For example, in mid-March this year, a shipment of seven 20-foot containers of 200,000 sesame coconut cakes by Mỹ Phương Food Company in Hòa Sơn Commune of Hòa Vang District, Đà Nẵng City were exported to China.

This was the first OCOP product of Đà Nẵng City officially exported to this market.

Since then, the cakes have been exported to the US, Japan, South Korea and Laos.

Along with the advantages of free trade agreements (FTAs), after attaching stars to the OCOP products, businesses have received support in product and trade promotion in domestic and international markets by ministries, departments and local governments.

This support is a great motivation for businesses to further invest into OCOP products.

OCOP producers recognise that the 5-star standard is the "golden passport" to export.

In order to be awarded 5 stars, the product must go through a very rigorous review, appraisal and evaluation process.

To get more of these "golden passports", recently, the MARD held a meeting of the central-level OCOP product evaluation and classification council for 2023.

Out of 85 dossiers submitted by localities, 19 products gained 5-star recognition, including products of coconut flower honey, coconut flower sugar of Trà Vinh FARM Company and dried coconut of Cầu Kè Company in Trà Vinh Province; and Phú Quốc Khải Hoàn fish sauce of Khải Hoàn Company in Kiên Giang Province.

The exporting of OCOP products still faces many obstacles due to low output and weak marketing.

According to experts, in order to enable exporting, each OCOP product must have local characteristics and good quality.

However, to have the distinct values of OCOP products, producers need to be supported.

To develop 5-star OCOP brands in the international market, businesses and co-operatives need to pay attention to sustainability factors from the start of production because this is an inevitable trend, said the deputy minister.

Vietnam's T&T Group, RoK’s DB Group seal cooperation deal

The Republic of Korea's conglomerate DB Group announced on May 30 that it has signed a memorandum of understanding (MOU) on business cooperation with Vietnam's T&T Group.

The two have agreed to share their infrastructure and know-how in Vietnam, and to enhance mutual synergy through various collaborations.

T&T Group, established in 1993, is a leading Vietnamese company engaged in various businesses including financial services, energy, trade and real estate. It has over 200 subsidiaries and employs around 80,000 people.

DB Group's Vietnam business is led by DB Insurance, its property and casualty insurance unit established in 1984. DB Insurance made a leap forward in Vietnam's market by acquiring PTI Insurance in 2015, becoming the third-largest insurance company in terms of market share in the Southeast Asian country.

VietJet Air voted as World’s Best Low Cost Airline Onboard Hospitality 2023

Budget airline VietJet Air has been voted as the World's Best Low Cost Airline Onboard Hospitality 2023 and continues to be the Best Ultra Low-Cost Airline 2023 for the fifth consecutive year, according to Australia’s AirlineRatings.com.      

VietJet Air was named as the low-cost airline that offers the most convenient and high-class SkyBoss Business service on wide-body aircraft, providing passengers with multi-purpose leather seats and diverse culinary experiences throughout flights.

Geoffrey Thomas, editor-in-chief of Airlineratings.com, emphasised that the airline has been recognised for constantly diversifying their high-quality aviation products.

Most notably, he said the carrier operates wide-body aircraft with the superior SkyBoss Business air ticket class to increase the seamless experience offered to passengers, that represent pioneering and revolutionary services for low-cost carriers.

AirlineRatings.com also rated VietJet Air at seven-star level, the highest ranking for aviation safety in the world and among the world’s top 10 safest low-cost airlines for several years. Last year, it was also honored by AirlineRatings as "Best Value Airline of the Year".

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