Ambassador Pier Giorgio Aliberti, Head of the European Union (EU) Delegation to Vietnam, on June 9 had a working session with representatives of the People's Committee of Binh Duong to discuss investment opportunities in the southern province, especially in hi-technology and green industry development and environmental protection.

Ambassador Aliberti expressed his impression of Binh Duong’s dynamic development over the years, and said he hopes that through the session, the EU Delegation will understand more about the province’s needs as well as step up cooperation programmes and increase priorities in areas that can attract investors to Binh Duong, such as energy, renewable energy and green economic development.

There is huge potential and opportunities for the EU and Binh  Duong to strengthen cooperation in the coming time, he noted.

Aliberti promised to continue to be a bridge promoting cooperation between the EU and Vietnam in general and Binh Duong in particular through specific and practical projects.

Binh Duong has so far attracted 4,049  FDI projects with total registered capital of 39.5 billion USD from 65 countries and territories, including 403 projects worth over 6.7 billion USD from 24 European countries and territories.

Vietnam-Laos trade turnover on the rise

Trade revenue between Vietnam and Laos in the first five months of this year stood at 690.6 million USD, up 21 percent year-on-year.

According to the Vietnamese Trade Office in Laos, Vietnam’s export value reached 255.02 million USD, down 9 percent, but its import hit nearly 435.58 million USD, up 50 percent.

Vietnam’s major export items included iron and steel (36.5 million USD); oil and gas, fertilizer, fruits and vegetables (nearly 20 million USD); and ceramics, electrical wires and cables, paper, textiles and garments (nearly 7 million USD), among others.

Meanwhile, it imported ore and other minerals, fertiliser, wood and timber products, rubber, fruits and vegetables from the neighbouring country.

In May alone, bilateral trade was valued at nearly 132.5 million USD, a year-on-year rise of 16.5 percent, of which Vietnam’s exports were worth close to 62.8 million USD, up 0.8 percent, and imports 69.7 million USD, up 35.5 percent.

Int’l exhibitions on telecom, electronic products and film begin in HCM City

The international trade show on information technology, telecommunication and electronic products (ICT COMM) and the International Exhibition of Film and Television Technology (Telefilm Vietnam) opened on June 9 at the Saigon Exhibition and Convention Centre.

They feature nearly 200 booths by more than 150 local and foreign exhibitors, including those from the US, Germany, Russia, Japan, the Republic of Korea, India, China, Singapore, Indonesia, Malaysia, the Philippines, Hong Kong (China), and Taiwan (China).

Returning after a two-year gap due to COVID-19, the shows, despite having a smaller scale compared to before the pandemic, showcase the latest products and technologies in the telecommunication, IT, media sectors, as well as products, services and technologies used in film and television, TV content and programmes, and broadcasting equipment and technology.

Several companies who have participated in all five previous editions such as Konica Minolta Business Solutions, Du Hung Technology JCS, C-FIBER, and South Telecommunications Software JSC, are displaying software, mobile applications, technology solutions, hard drive devices, wireless technologies, internet services, electronic products and services, radio and television services, and network infrastructure.

Visitors will have a chance to experience innovative television application systems on the internet inherited from the strong development of information technology and future TV channels, and modern post-production special effects, they added.

This year, the exhibition will also be held online for 15 days to offer local and foreign firms in the telecommunications, information technology, and TV and broadcasting sectors greater opportunities to exchange information, learn, share experiences, transfer technologies, and contribute to improving their competitiveness, he said. 

Over 24 trillion VND worth of business bonds issued in May

Vietnamese businesses mobilised 24.1 trillion VND (1.08 billion USD) in May through one public and 34 private corporate bond issuances, according to the Vietnam Bond Market Association (VBMA).

The association reported that commercial banks took the lead in terms of value of bond issuance with nearly 14.63 trillion VND (631.26 million USD), accounting for 60.68 percent of the total bond value.

They were followed by real estate firms with nearly 6.88 trillion VND, or 28.53 percent of the total value.
 
In the first five months of this year, 160 corporate bond issuances have been conducted with a total value of about 104.83 trillion VND, down 23 percent year on year, along with 17 public issuances worth nearly 9 trillion VND, 11 percent rise year on year.

Banks and real estate groups clinched the top and second positions in terms of issuance values with 42.38 trillion VND and 37.39 trillion VND, respectively.

Top legislator urges for healthy banking system

National Assembly Chairman Vuong Dinh Hue urged for a healthy banking system in which domestic lenders act as key players and operate in a healthy, effective and transparent manner when assessing the answers of State Bank Governor Nguyen Thi Hong during the Q&A session of the 15th NA in Hanoi on June 9.

Vietnamese lenders must meet banking and safety standards and adopt international practices, Hue said, noting that Vietnam is eyeing to enter the top four ASEAN countries in banking development by 2025. He also emphasised that attention must be paid to formulating, approving and implementing a project on restructuring poor-performing banks with an aim of completing the project by the end of 2025.  

Hue asked the Government, the State Bank of Vietnam (SBV) and ministries to actively, flexibly and comprehensively employ monetary tools and policies; and combine them with fiscal and macro-economic policies to keep inflation under control, stabilise the macro-economy, support economic recovery and promptly respond to fluctuations in both the international and local markets.

The top legislator also required the lenders to reduce operation costs and lower interest rates while regulators must revise and amend related legal documents to improve legal framework on monetary issues, foreign exchange governance and banking operation, thus ensuring the safety of the credit institutions.

It is critical to raise financial capacity of the lenders, provide additional charter capital for state-owned banks and prevent cross-investment, cross-ownership and ownership manipulation, he said.

The NA chairman also requested the SBV to intensify inspection and supervision of the credit institutions, study the use of cryptocurrency, promote financial technologies (fintech) in banking and ensure information security for the banking system.

Monetary policies to be managed flexibly to rein in inflation: Deputy PM

Deputy Prime Minister Le Minh Khai clarified a number of issues raised by National Assembly (NA) deputies regarding banking activities on June 9 as part of the ongoing NA third meeting's question-and-answer session.

The Deputy PM cited the State Bank of Vietnam (SBV) Governor’s affirmation as saying that the increasing inflation does not come from recent monetary policies, especially in the first five months of this year, but from the rise in prices of commodities.

He said that the Government will continue to stick to NA resolutions and keep a close watch on the domestic situation to manage monetary tools and policies in an active, flexible and synchronous manner, aiming to curb inflation, stabilise the monetary and foreign exchange markets, while drastically implementing monetary policy solutions to support the implementation of the socio-economic recovery and development programme.

The Government will also make sure that interest rate management will match macro balances as well as inflation and monetary policy targets, and continue to remove difficulties for and support COVID-19-hit businesses and ensure safety for banking activities, he stated.

Regarding credit room, an issue that draws NA deputies’ attention, Deputy PM asked the SBV to consider the regulations, conditions and criteria for granting more credit rooms to ensure coherence.

Amazon and iDEA collaborate on initiative to support e-commerce manpower development for VN
     
Amazon Global Selling and the Vietnam E-commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade on Wednesday signed a Memorandum of Understanding (MoU) to collaborate on the initiative to support the manpower development for enterprises to unlock opportunities with export through e-commerce.

The “Cross-border E-commerce: the Breakthrough Era” initiative, launched by Amazon and acknowledged by the Ministry of Industry and Trade, is a five-year programme with online and offline training boot camps across Viet Nam. It aims to support cross-border e-commerce talent for 10,000 businesses in the next five years from 2022 to 2026.

The global e-commerce market is forecast to grow strongly to reach US$7.4 trillion by 2025, driven by the impacts of new-generation free trade agreements and the shift in business models from traditional to digital platforms. This provides an opportunity for Vietnamese companies to penetrate and expand export markets on the back of Viet Nam's deep integration into the world economy.

According to Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, e-commerce plays an important role in driving Viet Nam’s economic development post-pandemic.

In 2021, e-commerce sales increased 16 per cent to reach $13.7 billion, of which B2C (business-to-customers) accounted for 6.5 per cent of total retail sales and service revenue. Viet Nam’s e-commerce is forecast to grow by an average of 25 per cent per year during 2022-25, reaching $35 billion by 2025 and occupying 10 per cent of total retail sales and service revenue.

Tan said the ministry has actively applied information technology to reform administrative procedures in the export sector to alleviate costs for export businesses, then boosting Viet Nam’s imports and exports.

Sizeable opportunities for e-commerce exports in Viet Nam

Amazon released the “Local Sellers, Global Consumers: Capturing Viet Nam’s e-commerce export opportunity” report, which surveyed more than 300 micro, small and medium enterprises (MSMEs) from Viet Nam.

According to the report, the annual value of B2C e-commerce exports in Viet Nam is expected to grow by over 20 per cent to reach VND256.1 trillion ($11.1 billion) in 2026, from VND75.4 trillion ($3.3 billion) in 2021.

“If B2C e-commerce was considered an export category, it could be the fifth largest export category in Viet Nam in five years,” the report said, noting that 64 per cent of this value could be earned by MSMEs.

About 88 per cent of surveyed firms feel e-commerce is critical for their ability to export. Vietnamese MSMEs also anticipated a greater sales growth forecast overseas (42 per cent) than at home (11 per cent).

However, amid the opportunities for global expansion, the report revealed key challenges for enterprises to overcome, including barriers in cost, regulations, information and capabilities.

More than 80 per cent of surveyed firms admitted they lack information on relevant regulations overseas while 85 per cent believe they lack the ability to compete with other sellers globally.

The report is expected to give an insightful base for authorities, policymakers and industry players to come up with comprehensive recommendations and solutions supporting e-commerce exporters. 

South Korean FDI into Vietnam boosted

South Korea was among the three largest foreign investors in Vietnam during the past three years, according to the Vietnamese Ministry of Planning and Investment (MPI).

The MPI reported that in the first five months of this year, South Korean foreign direct investment (FDI) into Vietnam was estimated at USD2.06 billion, up 12.6 percent on-year.
 
Most of South Korea’s major FDI projects in Vietnam were in manufacturing. Authorities in the northern province of Thai Nguyen licensed Samsung Electro-Mechanics Vietnam Co., Ltd to sink an additional USD920 million into its project in Pho Yen Town, raising the project’s total capital to USD2.27 billion in February.

South Korean firms have also increased investment in Vietnam’s real estate sector. By late November last year, real estate projects accounted for 13 percent of the country’s total FDI in Vietnam, double the figure in 2018.

Agriculture continues to spearhead backbone of economy

Minister of Planning and Investment Nguyen Chi Dung emphasised that Vietnam's agricultural sector has seen the strongest development ever, transforming from producing enough food to meet the needs of the people to exporting at a high percentage.

The minister also said that the countryside has changed rapidly, and people's living standards have improved markedly.

He asserted that this result is contributed by the hard work and creativity of farmers, the Party's leadership, and the direction of the government.

However, at the third session of the 15th National Assembly, the minister also agreed with the comments of some delegates that the agricultural sector is facing a lot of difficulties and challenges at present.

Belt roads deemed driving force for socioeconomic development

At the third session of the 15th National Assembly, Minister of Planning and Investment Nguyen Chi Dung presented the investment plan for the belt roads 3 and 4 in Hanoi and Ho Chi Minh City.

Minister Dung said that the Belt Road 4 project around Hanoi and Belt Road 3 around Ho Chi Minh City link the regions, promote the development of urbanisation, and have great significance for socioeconomic development.

These projects were planned initially planned to be constructed in 2011-2020; however, due to various reasons, both projects were delayed.

The two roads are meant to shorten transport distances, facilitate traffic connections with provinces and cities, reduce the load on the radial traffic system of Hanoi and Ho Chi Minh City, and promote investment efficiency for ongoing projects as well as create new room for the development of available land.

Belt Road 4 around Hanoi has a total length of about 112.8 km. Belt Road 3 surrounding Ho Chi Minh City has a total length of 76.34km.

HCMC’s May retail sales at four-year high

May saw HCMC’s retail sales of goods reaching an estimated VND57.8 trillion, up 3.1% month-on-month and 13.8% year-on-year, the highest single-month growth rate since January 2019, the HCMC Department of Industry and Trade told a press briefing on June 9.

The city’s retail sales made a strong rally two years after the Covid pandemic hit the country, the local media reported.

Numerous Covid economic recovery measures aimed at supporting firms, improving the business climate, speeding up digitalization and simplifying administrative procedures drove up the performance of enterprises in HCMC in the first five months of 2022, according to the department.

Between January and May, the city’s retail sales neared VND576 trillion, up 8.1% year-on-year. The retail sales of food and foodstuffs saw a year-on-year increase of 14.2%, while cultural and educational products enjoyed a 14.9% hike in retail sales. The retail sales of wood and construction material, and automobiles expanded 8.5% and 14.3% year-on-year, respectively.

These figures showed trade and service activities in HCMC were bouncing back, said Bui Ta Hoang Vu, director of the department.

DGW to issue 72.5 million bonus shares

Digiworld Corporation, which is listed on the Hochiminh Stock Exchange with stock code DGW, has passed a plan to issue 72.5 million bonus shares to its existing shareholders, with the ratio of 8:10.

The bonus shares will be issued out of the company’s undistributed after-tax profit on its audited 2021 financial statement. After the share issue, DGW expects to see its charter capital rising from VND907 billion to over VND1.63 trillion.

The company will issue the shares in June or July this year after it receives the State Securities Commission’s approval.

In the first quarter of 2022, DGW gained over VND7 trillion in revenue and nearly VND211 billion in after-tax profit, reaching 27% and 26% of its 2022 targets, respectively.

DGW’s share price hit its record high of VND158,000 in April, but then the stock has seen much volatility.

Internet-themed conference to gather over 300 tech experts

VNNIC Internet Conference 2022, a series of events specializing in technology, will take place from June 22 to 25 in the central city of Danang, with over 300 tech experts at home and abroad taking part.

The event, organized by the Vietnam Internet Network Information Center (VNNIC) under the Ministry of Information and Communications, aims to open a new forum for Vietnam’s Internet community, where experts meet and share their views to develop a sustainable Internet network in Vietnam.

Given the ongoing recovery from the Covid pandemic, “The Future of the Internet” is chosen as the main theme of this year’s event to discuss major issues and solutions for the Internet in Vietnam. The event will comprise three workshops and one conference.

It is expected to connect all members of the Vietnam Internet community, from State-run agencies in charge of information technology management to providers of Internet, mobile, and cloud services, as well as major tech and Internet firms in the world such as Cloudflare, NTT and Infoblox.

VND1.5 trillion poured into key road linking Ninh Thuan, Lam Dong

Ninh Thuan Province is speeding up work on a 62.5 kilometer-long road connecting it with Lam Dong Province, with a total investment of some VND1.5 trillion.

The Ninh Thuan Management Board of Investment and Construction of Traffic Projects, the investor of the project, said on June 9 that the road, which is set to start from Ninh Son District in Ninh Thuan and end in Duc Trong District in Lam Dong, got off the ground in early 2022.

Around 45.5 kilometers of the road will be built in Ninh Son District and over 17 kilometers in Duc Trong District with capital to be sourced from the mid-term public investment fund for the 2021-2025 period, the local media reported.

The project comprises two components, with the first running from Tan Son Town to Ma Noi Commune in Ninh Son District. This section will be over 22 kilometers long and require more than VND486 billion in investment.

The second component is a section stretching from Ma Noi Commune to Ta Nang Intersection in Duc Trong District, with a total length of 40 kilometers.

The first component of the road is set to be completed and opened to traffic in June 2023, while the second component is seeing the investor expedite the design process and make relevant construction procedures to put it in operation in 2025.

Firms in SHTP voice outcry over procedures

At a conference themed “Day for Resolving Administrative Procedures” at the Saigon Hi-Tech Park in HCMC on June 8, many enterprises active in the park decried obstacles over administrative procedures and general and detailed planning, which have delayed their projects for several years.

Roundabout procedures and directives from relevant agencies have annoyed firms and hindered them from carrying out their projects.

Thai Thanh Hai, a representative of the Vietnam-Japan High Technology Investment Company, said that one of the firm’s projects in the park was licensed by the Saigon Hi-Tech Park management board in 2019, but until now, the project has yet to be conducted due to obstacles over procedure adjustment planning.

Several other firms are facing the same fate, seeing their projects prolonged for many years due to complicated administrative procedures and inconsistency between agencies.

Another firm complained that its detailed plan was passed by the management board, but was assessed as failing to meet technical infrastructure standards by the Thu Duc government. The firm received feedback from the Thu Duc government 17 months after submitting the plan to the government.

Responding to these complaints, a representative of the Thu Duc City planning management division concluded that most obstacles were related to general and detailed planning procedures.

HCMC keens on developing waterway tourism

From the beginning of the year to the present, more than 262,000 international tourists visited HCMC, up 100 percent compared to the same period last year. While the number of domestic travelers was over two million, presenting a year-on-year increase of 108 percent. A wide range of different tourist products is launched, including waterway tours.

The dining and sightseeing boat tour at night on the Saigon River is one of the highlight tourist products of the TSTtourist Company. The 2.5 hour-long trip costing VND2.5 million per person begins at the Bach Dang Wharf in District 1 and ends at Mui Den Do in District 7. The tour returning to the departure point will run through Thu Thiem Bridge 2 and Binh Loi Bridge in Binh Thanh District, said communications director of TSTtourist Nguyen Minh Man.

The new service gives a chance to visitors to enjoy the city’s beautiful attractions in the glow of the evening lights that are not less beautiful than other countries in the region, said visitor Nguyen Thai of District 3 in HCMC.

HCMC to consider adjustment of seaport infrastructure fees in July

Deputy Prime Minister Le Minh Khai asked the HCMC People’s Committee to consider an adjustment of seaport infrastructure fees for use of infrastructure facilities and public services at seaport terminals for import-export activities in the city in July.

The city suspended the collection of fees for using infrastructure facilities and public services at seaports two times and has officially collected seaport fees from April 1.

Enterprises proposed a reduction of seaport infrastructure fees to relieve the burden on companies due to the Covid-19 pandemic and other domestic and global impacts, such as sharp fuel price hike, high logistics costs.

HCMC has officially conducted a program on collecting infrastructure fees at seaports starting on April 1. Revenue from collecting fees from businesses and individuals for use of infrastructure facilities and public services at seaport terminals for import-export activities will be used to upgrade transport infrastructure systems and invest in technology and services. Activities for charitable purposes, disaster relief, disease prevention, security and defense works will be free of charge, said the municipal Department of Transport.

The Port Authority of Inland Waterway will take responsibility for collecting fees with the support and inspection of the HCMC Department of Customs, port and logistics firms.

Enterprises access the fee collection system at the site thuphihatang.tphcm.gov.vn:8092/Home to find payment receipt, and thuphihatang.tphcm.gov.vn:8081/Home to complete the declaration form for fees of import or export goods as well as contact with the hotline number 19001286 operated 24 hours a day for further information.

Gov’t promotes M&A in banking sector for higher competitiveness
 
The main objective of the project is to ensure all banks adopting the Basel II standards have a capital adequacy ratio (CAR) of at least 10-11% by 2023, and eventually to 11-12% by 2025.

The Government would continue to encourage banks to pursue M&A deals in the sector to enhance competitiveness and sizes of operation.

The move was part of the Government’s project for restructuring credit institutions and addressing bad debts during the 2021-2025 period that was signed off by Deputy Prime Minister Le Minh Khai.

The main objective of the project is to ensure all banks adopting the Basel II standards have a capital adequacy ratio (CAR) of at least 10-11% by 2023, and eventually to 11-12% by 2025.

To reach these targets, the Government called for banks to take measures to increase charter capital and CAR, along with higher corporate governance capability of international standards.

Based on supervision data and assessment from independent auditing firms, banks, and financial companies would be divided into three groups, including banks with high financial muscles; mid-size banks; and weak banks with high risks.

Germany’s DW considers Vietnam new destination for European companies

Vietnam's active economic performance in recent years has captured the attention of some major European firms, said German English-language news site DW in a June 8 article.

Vietnam was one of the few Asian countries that did not experience an economic contraction during the coronavirus pandemic in 2020 and 2021, it said. This year, the country’s GDP is expected to grow by around 5.5 percent, according to the World Bank.

German automotive supplier Brose, which has 11 factories in China, is currently deciding between Thailand and Vietnam for a new production location.

In December, Denmark's Lego announced it will build a 1 billion USD factory near the southern business hub of Ho Chi Minh City, one of the largest European investment projects in Vietnam to date.

It quoted Daniel Müller, manager at the German Asia-Pacific Business Association, as saying: "It currently looks as if, in particular, medium-sized companies are increasingly striving to enter the Vietnam market.”

Vietnam has become a more attractive destination for investors, Raphael Mok, head of Asia Country Risk at Fitch Solutions, told DW.

RoK promotes transit tourism products for Vietnamese travelers

Airports in the Republic of Korea (RoK) are set to provide a free transit experience for passengers traveling from Vietnam to the United States, Canada, or Japan, including discounts on services in lounges, free services guides, and tours.

The statement was made by Lee Jae-hoon, chief representative in Vietnam of the Korean Tourism Organisation (KTO), at a seminar on “Vietnam-Korea Air Travel Promotion” held in Hanoi on June 9.

Statistics indicate that the number of passengers travelling from Vietnam to Incheon International Airport in 2019 stood at 7.62 million, including 500,000 transit passengers, ranking first and second in Southeast Asia, respectively.

Among the passengers, those from Hanoi and Ho Chi Minh City numbered 3.8 million, making up half the total. In addition, the two cities also accounted for 96% of transit passengers, equivalent to 400,000 travelers.

Hanoi and Ho Chi Minh City are widely considered to be strategic areas, with the number of tourists from these two major cities anticipated to increase rapidly during the post-pandemic period.

The recent trend of easing pandemic prevention measures in both Vietnam and the RoK can be seen as laying the groundwork for the revival of the air travel industry.

Seminar promotes Vietnamese market to RoK tourists

More than 80 representatives of various travel firms and partners in the Republic of Korea (RoK) gathered at a seminar titled “Rediscover Vietnam” on June 9 as part of efforts to promote Vietnamese aviation and tourism services in the RoK.

The event was primarily aimed at introducing aviation, tourism, and resort products by Vietnam Airlines, Thien Minh Group, and Sun Group to the RoK’s outbound tourism market.

Addressing the event, Vietnamese Ambassador to the RoK Nguyen Vu Tung affirmed that Vietnam is a convenient, safe, and attractive destination for international tourists, noting the country has lifted all travel and entry restrictions for foreign visitors.

Korean tourists who travel to Vietnam for under 15 days do not require visas and will not be subject to quarantine requirements or COVID-19 tests, he announced.

The diplomat predicted that, alongside efforts to improve the overall quality of tourism services and the qualifications of tour guides, Vietnam is likely to welcome 4.3 million visitors from the RoK this year, just as it had done before the COVID-19 pandemic.

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