The Government has given in-principle approval to developing three industrial parks (IPs) in Hai Phong, Bac Giang and Ha Nam in the north, whose combined investment totals of around 6,232 trillion VND (268.62 million USD).

They include the 410-ha Tien Thanh IP in Hai Phong’s Tien Lang district which costs nearly 4.6 trillion VND; the 85-ha expansion of Hoa Phu IP in Bac Giang’s Hiep Hoa district worth over 1.09 trillion VND; and the 49-ha expansion of Dong Van I IP in Ha Nam.

The Government has also agreed in principle to raise the total investment of Phu Thuan IP in Binh Dai district, the Mekong Delta province of Ben Tre, to more than 3.58 trillion VND, from some 2.12 trillion VND pledged in 2017.

Import-export turnover increases by 15.6 percent

Vietnam’s import-export turnover during the first five months of this year topped 305 billion USD, a year-on-year increase of 15.6 percent, according to a report released on May 29 by the General Statistics Office of Vietnam.

Of the total, Vietnam reported 152.8 billion in export revenue, a year-on-year increase of 16.3 percent.

Meanwhile, imports turnover reached 152.3 billion USD, increased by nearly 15 percent compared the same period last year.

The US remained Vietnam's largest export market with an estimated turnover of 46.7 billion USD, while China was the largest import market with 49.6 billion USD.

The country posted a trade surplus of 516 million USD in the period. Specifically, it reported a trade plus of 13.4 billion USD with the European Union, but a trade deficit of over 27 billion USD with China, nearly 18 billion USD with the Republic of Korea and 6.5 billion USD with ASEAN.

Vietnam Dairy 2022 kicks off

The third Vietnam International Milk and Dairy Products Exhibition (Vietnam Dairy 2022) opened at the Hanoi International Exhibition Centre on May 31.

The four-day event has 200 booths from 50 domestic and foreign exhibitors, showcasing milk and dairy products, ingredients and technology in the dairy industry, processing and packaging lines, and animal feed and veterinary machines. Dairy cattle breeds, environment treatment technology, food safety standard management systems and other services in the dairy sector are also on display.

Despite the prolonged pandemic, the domestic dairy industry still posted respective revenues of 113.7 trillion VND (4.9 billion USD) and 119.3 trillion VND in 2020 and 2021, mainly contributed by fresh milk and powdered milk, Trung added.

In 2021 alone, the industry produced over 1.77 billion litres of fresh milk, up 4.5 percent year-on-year. Powdered milk production also saw positive growth of 13 percent year-on-year to nearly 152,000 tonnes. Currently, Vietnamese dairy products are being exported to 50 markets, including strict ones such as Japan and China, earning the country a turnover of 300 million USD each year.

Da Nang: trade-business-investment activities in full swing this June

The central city of Da Nang will hold a series of economic, trade, and investment events in June, most importantly the Da Nang investment forum on June 26, said Ho Ky Minh, Vice Chairman of the municipal People Committee at a press conference on May 31.

According to Minh, the forum will introduce the city’s potential, advantages and investment opportunities to attract capital in Vietnam and abroad, particularly foreign direct investment. This is also a chance for local authorities to listen to opinions of businesses and investors to improve the local business and investment climate.

On the sidelines, an exhibition on Da Nang’s planning until 2030, inauguration ceremonies of key projects, and field trips to many high-tech sites are scheduled to take place.

Meanwhile, from June 4 to 9, the city will host the 16th Asian route development forum (Routes Asia 2022), the largest and biggest event to promote and connect flight networks in the Asia-Pacific region. The event is expected to draw about 450 delegates from 200 international aviation agencies and organisations from Asia, Europe, the Middle East, and North America.

Also in the summer month, Da Nang will kick off the construction of many major projects such the Long Thanh plastic plant, the Nesta Da Nang centre, and the Dana Logistics.

Vietnamese fruits introduced at Thaifex–Anuga Asia food and beverage trade fair

A total of seven Vietnamese firms have attended the Thaifex–Anuga Asia 2022 food and beverage trade fair as they aim to introduce local farm produce such as dragon fruit, pomelo, lychee, and durian to international consumers with the support of the Plant Protection Department.

The local enterprises participating in the event include Chanh Thu Fruit Import-Export Co., Ltd., VINA T&T Import-Export Trading Service Co., Ltd., Hoang Hau Dragon Fruit Farm Co., Ltd., Pearl Group Corporation, Viet Pepper Company Limited, Red Dragon Production Trading Service Company Limited, and Viet Exotic Fruit Company Limited.

In joining the function, Vietnamese businesses have received support from organisers in showcasing their products, while sales staff fluent in foreign languages are also on hand ​to effectively introduce farm produce to visitors.

THAIFEX - Anuga Asia Expo 2022, running from May 24 to May 28, attracted the participation of firms from 46 countries worldwide, including Argentina, Australia, Austria, Canada, China, Denmark, France, Germany, Italy, Japan, the Republic of Korea, Laos, Malaysia, Netherlands, New Zealand, Thailand, Turkey, Ukraine, the US, the United Arab Emirates, and the UK.

Vietnamese agricultural products on display at the fair include dragon fruit, pomelo, pepper lychee, durian, longan, rambutan, and mango.

First batch of Xiaomi products delivered to Digiworld

DBG Technology Co. Ltd, a manufacturing partner of Xiaomi Vietnam, has unveiled that the first batch of Xiaomi products manufactured in Vietnam will be delivered to Digiworld’s warehouse, Xiaomi's official distributor operating within the domestic market.

The Xiaomi mobile phone assembly factory based in the nation is being operated by DBG Technology Co.Ltd in line with the global standards under the strict supervision of leading experts.

Moving forward, it is anticipated that the factory will distribute Xiaomi products to consumers in both Vietnamese and Southeast Asian market.

Henry Wo, representative of DBG Technology, emphasized that partnering with Xiaomi is expected to open up a wealth of opportunities to export Made in Vietnam products to other important markets throughout the region.  

Tourists to Ho Chi Minh City surge in May

During the initial five months of this year,  Ho  Chi Minh City welcomed a total of 8.97 million domestic visitors and 262,090 foreign arrivals, with total tourism revenue reaching VND39.5 trillion, equivalent to US$1.691 million, an increase of 9.8% on-year.

The Southern city earned an estimated VND10.3 trillion, equal to US$444.3 million in tourism revenue in May, a year-on-year rise of 73.4%, according to figures given by the municipal People’s Committee.

Last month saw the southern city greet 2.15 million domestic tourists and 147,362 foreign arrivals.

As a means of attracting more visitors, Ho Chi Minh City has carried out a number of activities in recent times. This includes “the 18th Ho Chi Minh City Tourism Festival”, “the 8th Ho Chi Minh City Ao Dai (traditional long dress) Festival, and the “Welcome to Ho Chi Minh City” programme.

International Michelin-star chefs have also been invited to participate in a number of culinary exchanges hosted by the city.

Moreover, the city is working to  introduce its tourism products at Routes Asia 2022 and is in the process of developing water tourism products and ecological and agricultural tourism toward building new-style rural areas.

US initiates probe into wooden cabinets imported from Vietnam

The United States Department of Commerce (DoC) on May 24 launched an investigation into wooden cabinets imported into the US from both Vietnam and Malaysia, reported the Trade Remedies Authority of Vietnam (TRAV).

As part of the scope of inquiry, the US side alleged that Vietnamese and Malaysian enterprises had previously imported cabinet parts from China, a move which is subject to trade remedy measures as the US is applying regulations on similar products from China.

According to US rules, concerned parties will have a total of 30 days to submit their comments and provide sufficient information to investigating US agencies from the date of initiation.

The DoC is expected to conduct a final conclusion within 120 days from the date of initiation, which can then be extended for a further 180 days.

During the investigation period, the DOC may request additional information from related parties for further consideration.

With regard to the anti-circumvention investigation, the DoC is still considering the initiation of the investigation, which will last until June 6.

Tourism real estate properties remain in legal limbo

Experts have called for clarifying the legal status of tourism real estate properties such as condotels, tourism villas and shophouses to safeguard stakeholders’ benefits, helping revive the tourism sector.

Nguyễn Văn Quyền, chairman of the Vietnam Bar Association, said the legality of these properties had to be made clear but the legal framework remained inadequate, creating difficulties and inconsistencies in management, worrying both investors and developers.

There are around 150 developments with 20,000 condotels and 5,000 villas in 15 provinces and cities across the country, many of them completed and sold but facing problems related to legality, according to the chairman.

According to Dr Cấn Văn Lực, member of the National Monetary and Financial Policy Advisory Council, tourism real estate properties have not been mentioned in the Vietnamese Land Law and thus are not eligible for a certificate of ownership.

The products are currently traded under ‘capital contribution contracts’ and others, which do not guarantee legality.

This also causes a risk for credit institutions.

He said the Government should call on the National Assembly to issue a decree to remove obstacles while waiting for the Land Law, Housing Law and Real Estate Business Law to be amended. It is important to have clear criteria for each type of tourism property and for common areas in apartment buildings, basements and share of maintenance costs, he added.

Dr Nguyễn Văn Đính, vice chairman and general secretary of the Vietnam Real Estate Brokers Association, said the Government should issue a circular to solve the immediate legal problems faced by tourism properties to safeguard the benefits of investors.

Phan Trung Lý, a former chairman of the National Assembly’s Law Committee, said however, “It is difficult to promulgate such a circular due to a lack of a legal framework.” Instead, he said, the Government could ask the National Assembly to issue a “special resolution” to mitigate the difficulties faced by developers and buyers.

According to the Vietnam Real Estate Brokers Association, as of September last year the country had 239 tourism real estate projects with more than 114,097 condotels, 24,399 tourism villas and 30,899 shophouses.

HCM City to focus on One Commune One Product development
     
HCM City plans to focus on the One Commune One Product programme and develop more products under it, its officials have said.

One Commune One Product (OCOP) is a national programme that seeks to facilitate the development of regional agricultural specialties and rural tourism.

HCM City has 27 OCOP-certified products, 21 of them ‘four-star’, signifying their potential to reach international standards.

The city targets 41 more getting OCOP designation this year, including 19 four-star products.

The Department of Agriculture and Rural Development has recently submitted an OCOP programme plan for until 2025 to city authorities for approval, which will allow businesses all over the city to take part in the programme unlike now when only those in its five outlying districts can.

ABB invests $6 million in state-of-the-art electrical distribution manufacturing hub

ABB has injected $6 million into a manufacturing hub for electrical distribution solutions in the northern province of Bac Ninh with a view to bolstering the country’s rapid industrial growth.

Covering a total area of 15,700 square metres, ABB’s new factory is double the footprint of the 10-year-old facility it is replacing and has significantly enhanced environmental credentials.

The building blocks are in place for future LEED certification, including the use of roofing material with optimal thermal conductivity and rainwater collection, the highest standards of air quality management, and the scope to install solar panels.

In addition, the ABB Ability Building Management System connects assets across the facility to allow remote monitoring and ensure energy-efficient operations.

The manufacturing hub will produce 2,000 panels of ABB’s UniGear Medium Voltage Switchgear and 700 units of plug-and-play modular systems for power distribution per year on production lines that are designed and set up on the successful lean manufacturing methods used in its European facilities.

Vietnam to review prominent foreign-funded projects with large land usage

The Ministry of Planning and Investment (MPI) is mulling over an in-depth assessment of land usage of foreign-invested enterprises, particularly projects in major localities such as Hanoi, Ho Chi Minh City, Danang, Haiphong, and Khanh Hoa.

The MPI has just issued Official Letter No.3409/BKHT-TNN dated May 25, requesting the people's committees of provinces and centrally-run localities to implement the directives of the government and the prime minister regarding improving the quality of attracting foreign investment capital, strengthening inspection and supervision, and reviewing, assessing, and eliminating difficulties and obstacles in foreign investment activities. The registration of investments will analyse and assess the implementation of foreign-invested projects in the area.

Accordingly, projects with registered investment capital of $100 million or more, projects with a usable land size of 50 hectares or more, and projects in the real estate industry in the following provinces and cities are subject to review: Hanoi, Ho Chi Minh City, Danang, Haiphong, Khanh Hoa, and Ba Ria-Vung Tau.

The MPI requests investment registration agencies to report on capital contribution and disbursement; the implementation of the objectives specified in the investment certificates; the land-use situation, and the observance of the provisions of the law on land and construction.

The MPI proposes that, in the event of a delay or failure to meet the objectives outlined in the investment certificates or the law, the investment registration agencies clearly state the status and reasons.

In addition, the MPI suggested to direct investment registration agencies that the people's committees of core cities and provinces explain issues and problems of foreign-invested projects, concentrating on two kinds of projects and providing solutions to remove difficulties and hurdles as well as adjustments to laws and regulations to expedite project implementation.

The first group consists of projects encountering roadblocks in investment operations. The second risk is that the project team fails to implement, implements too slowly, or does not adhere to the promised timeframe.

Da Nang set to break ground on Lien Chieu port in Sept

Da Nang City is rushing to complete all procedures to start work on the Lien Chieu port project in September this year, Ho Ky Minh, vice chairman of the city government, announced on May 31.
The large-scale project, funded by the local budget and the private sector, is expected to contribute to the city’s socio-economic growth, the local media reported.

The city assigned the management board for infrastructure projects to quickly complete procedures to begin work on a series of components such as anti-wave embankments, the dredging of sea passages and a road leading to the port.

As many local and international investors have shown interest in some of its major components, such as wharves, quays and logistics areas, the city told the Investment Support and Promotion Board to create further favorable conditions so investors can easily get involved in these subprojects.

The municipal government announced that the Danang Investment Forum 2022 will take place in June. The event is expected to introduce the city’s potential, advantages and investment opportunities to local and foreign investors.

In addition, the city will call for investments in several projects at the event and offer multiple incentives and preferential policies to investors in housing.

Vietnam sees IIP growing in 61 provinces in Jan-May

The index of industrial production (IIP) in Vietnam in the year to May had improved 8.3% year-on-year, with 61 out of the nation’s 63 provinces and cities recording a rise in IIP, according to the General Statistics Office (GSO).

In May alone, the index inched up 4% month-on-month and 10.4% compared to the same period last year.

The manufacturing and processing industry expanded 9.2%, electricity generation and distribution edged up 5.5%, the mining industry went up 4.1%, and the water supply and waste treatment industry rose 2.5%.

Industrial production continued its recovery trend as the Covid pandemic was brought under control.

GSO also said the number of employees working at industrial businesses as of May 1 this year increased 1.4% against the previous month and 4.4% versus the 2021 figure.

Of them, the number of employees working at State-run enterprises improved a slight 0.1% month-on-month and declined 4.5% year-on-year; that of non-State businesses increased 1.1% versus April and fell 1.3% against the year-ago figure. Meanwhile, the number of employees at foreign-invested companies both inched up 1.8% month-on-month and 6% year-on-year.

VND38 trillion sought for 14-km elevated road in HCMC

HCMC Infrastructure Investment JSC (CII) has proposed developing a 14-kilometer elevated road that connects the north and the south of the city.

The road will require an estimated VND38.2 trillion, over VND8 trillion higher than earlier proposed. Of the figure, VND19 trillion will be spent on site clearance and VND19.2 trillion on road construction.

The road will start at Cong Hoa Road in the north and end in the Saigon South urban area in the south. It will pass through the Tan Son Nhat International Airport area and the downtown area.

Some 12,100 hectares of land would be cleared in districts 1, 3, 5, 8, 10 and Tan Binh, with nearly 1,200 households affected.

The public-private partnership with a build-operate-transfer contract is sought for the project. The road is designed to have three sections. The first section will be 3.4 kilometers long, stretching from the Cong Hoa-Truong Chinh Intersection to the Lang Cha Ca Intersection.

The second section, 2.6 kilometers, will run from the Lang Cha Ca Intersection to the Bac Hai-Thanh Thai T-junction, and the third section, which will have a length of 8.1 kilometers, will link the T-junction and Nguyen Van Linh Street.

CII proposed the municipal government divide the project into two separate components. The site clearance and resettlement component would use the State budget, while the road construction component will be executed within 36 months, after the first component is completed.

The total capital needed for the second component will be more than VND21.4 trillion, including VND2.2 trillion in interest arising during the execution process.

BR-VT proposes VND6 trillion expy access road

The Ba Ria-Vung Tau Department of Transport has proposed developing a VND6 trillion access road to the Bien Hoa-Vung Tau expressway, the provincial government said on May 31.
Of the total investment, over VND2.1 trillion would be used for site clearance and resettlement, while the rest will be spent on construction and design.

The road is set to start at an intersection with National Highway 56 and end at Cua Lap Roundabout, comprising two sections, with a total length of 15.6 kilometers.

The road project will be developed using public investment, with its first phase to be carried out in the 2021-2025 period, according to consulting firm TEDI, the local media reported.

The Bien Hoa-Vung Tau expressway project, which will link Dong Nai and Ba Ria-Vung Tau, is set to stretch 54 kilometers in length and have four to six lanes. The project will get off the ground in 2023.

Dak Nong wants to have civil airport

Dak Nong Province has proposed the Ministry of Transport add Nhan Co airport to the national airport system development plan.
This is the second time the Central Highlands province has made the proposal.

Dak Nong is now only accessible by road, while there are no rail and air transport development plans, according to the provincial government.

This has hampered the province from promoting its socio-economic development and attracting investors.

Lying at the southern gateway of the Central Highlands region, Dak Nong acts as a link between the region and the Southern Key Economic Zone, and has a 141-kilometer borderline with Cambodia. The province is also rich in bauxite, making it more attractive to investors.

In the near future, Dak Nong will focus on the aluminum industry, moving toward developing the province into the country’s largest aluminum processing and manufacturing hub.

Nhan Co airport, situated in Nhan Co Commune in Dak R’Lap District, some 20 kilometers from Gia Nghia City, now serves military operations.

In early 2021, the province proposed expanding the airport to serve both military and civil aviation. Work on the project could be conducted in the 2030-2050 period.

Danang event set to attract over 200 int’l aviation organizations

Around 450 delegates from more than 200 international aviation organizations will gather in the central beach city of Danang next week.

They will be attending the 16th annual Routes Asia Development Forum 2022 (Routes Asia 2022), the largest event to promote and connect flight networks in the Asia-Pacific region, from June 6 to 8.

They come from Asia, Europe, the Middle East, and North America, among others, the Danang Department of Tourism announced following a meeting with government leaders last weekend.

There will be many activities, such as FAM trips for airlines, business matching sessions between domestic and international businesses and authorities, seminars and conferences on tourism and aviation recovery, apart from the Asian tourism and aviation exhibition, the Danang tourism photo exhibition, the Danang specialties exhibition and the flower boat parade.

The handover ceremony of the host city of Routes Asia 2023 to Chiang Mai, Thailand will also be held on the last day of the event.

To organize this series of activities, the Danang Department of Tourism has been working with Informa Routes, IPP Travel Retail and other departments to deploy works related to infrastructure, accommodation and human resources, among others.

In addition, the local tourism industry will produce video clips and visual decorations around the city to promote the forum and Danang among international delegates.

Regarding pandemic prevention, the Danang Department of Health has already developed a plan to prevent and control infectious diseases and protect public health during the Routes Asia 2022 event.

Interest rate aid package expected to reduce pressure on lending interest rates

In the context of rising inflation, many banks have increased deposit interest rates to attract idle money. This step has caused many businesses to worry that lending rates will increase. However, many people said that the 2 percent interest rate of the State's support package can help reduce the pressure to increase lending interest rates.

In May 2022, except for the group of state-owned joint-stock commercial banks including Agribank, Vietcombank, Vietinbank, and the Bank for Investment and Development of Vietnam (BIDV) that have not yet recorded an increase in deposit interest rates, most other commercial banks have increased their deposit rate from 0.3-0.5 percentage points compared to the end of 2021.

The pressure to raise deposit rates is also evident in the difference between credit and deposit, which has fallen to the lowest level in 8 years, when data from the State Bank showed that credit as of the end of April 2022 has increased by 6.75 percent compared to the end of 2021, while capital mobilization only increased by 3.55 percent. The sharp increase in credit made more commercial banks join the wave of raising savings interest rates to boost capital mobilization.

Following this development, industry experts said that it is difficult for deposit interest rates to remain at the low level as before, not only due to the accelerated increase in capital demand for credit but also due to increasing inflationary pressure. Therefore, banks must increase deposit interest rates to compete with other investment channels such as real estate, and securities in attracting capital.

According to forecasts of securities companies, it is expected that deposit interest rates will only increase slightly by 0.3 percent-0.5 percent this year while lending interest rates are unlikely to fall further when the economy has been showing signs of recovery. Not only that, experts of VNDirect Securities Company said that it is expected that the 2 percent interest rate support package can help reduce the average basic lending interest rate in 2022.

A leader of a commercial bank in Ho Chi Minh City also said that since the beginning of the year, deposit interest rates for many terms have also been adjusted by 0.4 percentage points, but the bank has not increased lending rates much for it has saved capital costs through promoting digital transformation. In addition, the increase in demand deposit facilities has helped banks attract low-interest capital to keep lending rates from rising sharply.

Credit in the first five months of 2022 reached over VND11 quadrillion, up 7.66 percent compared to the end of 2021 and doubled over the same period last year, so many commercial banks are currently in a shortage of credit lines. Many banks said that when the interest rate support package has not been launched, credit demand was very high because, after two years of the pandemic, people and businesses had a great need for loans for investment and production.

Furthermore, with the current economic recovery momentum, it is expected that the demand for loans will increase sharply in the coming time.

Some commercial banks said that they are ready to implement the 2 percent interest rate support package but their credit limit has been exhausted. According to Vietcombank, by the end of April 2022, credit has grown at over 9/10 percent of the granted limit, equivalent to a net increase of about VND100 trillion (US$4.2 billion).

Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch, said that he has directed credit institutions in the city to implement the 2 percent interest rate support package according to Circular 03/2022 of the State Bank of Vietnam for loans from enterprises, cooperatives and business households associated with the disbursement of a credit package of more than VND400 trillion.

At the same time, the State Bank of Vietnam's branch in Ho Chi Minh City will organize programs to connect banks and businesses. In addition, the state bank will have dialogues with credit institutions and businesses to make them understand the mechanisms and policies to implement the support package efficiently.

With Vietcombank's total outstanding loan of over VND1 quadrillion, customers are entitled to an interest rate support package at approximately 30 percent of the total bank balance, but the bank’s current credit limit will certainly not be enough to meet the needs of customers.

According to a representative of VietinBank, currently, those who meet the requirements for interest rate support account for about 30 percent of the bank’s total credit. The implementation of the interest rate support package will promote credit growth, but limited constraints will put great pressure on the short-term, medium- and long-term growth of the bank.
BIDV said that currently, about 10,000 customers are presently eligible for interest rate support and more people will be eligible for the aid package, so this bank also recommends extending the credit limit.

Because most commercial banks have used up the credit limit granted since the beginning of the year, they are waiting for approval of a new credit limit. Ms. Ha Thu Giang, Deputy Director in charge of the Credit Department for Economic Sector (SBV), said that in principle, commercial banks that do not use up their credit limit will be transferred to other banks. Because in fact, currently, many commercial banks have exhausted their credit limit while some other banks have slow increases or decreases in credit.

Regarding the proposal to loosen the credit limit, Deputy Governor of the State Bank Dao Minh Tu said that hot credit growth would raise difficulties in inflation control, but tightening credit would affect economic growth, so credit limit must be satisfactorily resolved.

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