To help take Vietnamese lychee exports to the next level, a seminar entitled “Vietnamese lychees go global” was held in Hanoi to support and promote the global brand name of the popular Vietnamese fruit. 

The northern provinces of Hai Duong and Bac Giang are the two leading areas for lychee production. Tran Van Quan, Vice Chairman of Hai Duong People’s Committee, said the province aims to make Vietnamese lychee a global name thanks to its world-class quality.

According to Quan, Hai Duong has over 9,000 hectares of lychees, producing 60,000 tonnes per year. About 50 percent are consumed domestically, 40 percent exported to traditional markets and 10 percent to high-end markets.

Phan The Tuan, Vice Chairman of Bac Giang People’s Committee, underscored that the province has the country’s largest lychee-growing area of over 28,000 hectares. Bac Giang’s lychees are the first Vietnamese product to be granted PGIC in Japan and are eligible for trademark protection in eight countries. So far, Bac Giang’s lychees have been commercially available in over 30 countries.

Saadi Salama, Palestinian Ambassador to Vietnam, stressed that products on sale in the Middle East normally have Halal marks on their packages, indicating that the products meet Halal standards. He hoped that more Vietnamese lychee-derived products are Halal-labelled to expand its foothold in the market, allowing the fruits to be enjoyed by more foreign consumers.

George Burchett, an Australian journalist, described Vietnamese lychees as fruit from heaven due to their beautiful taste, though Vietnamese lychees are much more expensive in Australia than in Vietnam due to high logistics costs.

No Philippines safeguard measures on low-density polyethylene products from Vietnam: Ministry

There is no safeguard measure imposed by the Philippines on the importation of Linear Low-Density Polyethylene (LLDPE) Pellets and Granules from various countries, including Vietnam, the Vietnamese Ministry of Industry and Trade (MoIT) has announced.

It was owing to concerted efforts by the MoIT and concerned units to gather evidence and construct arguments against complaints from Philippine producers based on domestic laws and interpretation of the World Trade Organisation (WTO) agreements.

The MoIT has also updated the Vietnam Plastics Association and concerned Vietnamese manufacturers on the Philippines investigation.

The final decision was based on the Philippine Tariff Commission’s investigation report which concluded that there was no increase in imports of LLDPE pellets and granules, both in absolute terms and relative to domestic production, during the period of investigation from 2015 to June 2021, according to a statement released by the Philippine Department of Trade and Industry (DTI).

Extended payable excise tax will help boost domestic automobiles

The Ministry of Finance (MoF)’s proposal to extend the deadline for excise tax payment for locally manufactured and assembled cars will help businesses get more financial resources and restore their production, according to Dinh Trong Thinh, a senior lecturer at the Finance Institute.

The Government’s Decree No 32/2022/ND-CP, dated May 21, 2022, extends the deadline for payment of excise tax on domestically produced and assembled cars. Thinh said that the deadline extension will last until this year. In the long run, it is necessary to extend the deadline further. In addition, the Finance Ministry also needs to implement Decree No 32’s regulations soon effectively.

Minister of Finance Ho Duc Phoc said the ministry always listens to business opinions to continue advising the Government. The Government and the National Assembly will conduct more realistic and effective policies to remove obstacles and help companies develop sustainably.

The decree takes effect from the date of issuance until late December 31, 2022. Once the extended deadline expires, excise tax payment on domestic cars shall revert to normal.

This is the third extension of excise tax compliance due date for local automobiles since 2020, with an amount equivalent to a tax break of 20 trillion VND (863 million USD). The move is part of the Government’s Decree No 32. The time limit for paying the payable excise tax arising in June to September is no later than November 20, 2022.

Previously, the Finance Ministry made a 50 percent cut in the registration fee for locally-produced vehicles. Such support, along with this latest policy, is considered an urgent solution for the local car industry to recover from the severe impact of the pandemic.

According to the Finance Ministry, turnover from an excise tax on domestically-manufactured vehicles is estimated at 2.45-2.8 trillion VND (107-122 million USD) per month. Assuming growing demand for electric vehicles, the ministry expects a decline of 2-3 trillion VND (87-130 million USD) in State budget revenue or a drop of 170-250 billion VND per month.

According to the ministry, businesses eligible for a delay in excise tax payment deadline can either send the request directly online or print copies to the tax authorities.

The total excise tax amount subject to relief in October and November of 2021 stood at 5.44 trillion VND (237 million USD).

Mini Thailand Week held in Quang Ninh for first time

Mini Thailand Week – the first of its kind – kicked off in the northern province of Quang Ninh on June 16, showcasing outstanding Thai products.

The event, which will run until June 19, is being jointly held by the Department of International Trade Promotion under the Thai Ministry of Commerce, the Trade Office at the Thai Embassy in Hanoi, and VINEXAD National Trade Fair and Advertising JSC of Vietnam.

The event in Quang Ninh features more than 60 booths run by Thai companies, representative offices and distribution agents in Vietnam.

On display are outstanding Thai products and services such as food and beverages, home appliances, electrical appliances, textiles, jewellery, cosmetics and beauty products, and tourism services.

Workshop held to discuss investment strategy in the new normal

"Investment strategy in the context of the new normal and fostering reform and innovation” will be the main topic of a workshop in Ho Chi Minh City on June 17.

The Ministry of Planning and Investment will jointly organise the event with the National Innovation Centre and Saigon Telecommunications Technology JSC to create economic recovery and development momentum in the post-COVID-19 period. 

The forum will be attended by State managers from central agencies and ministries and some localities. The seminar participates in KIND (an agency under the Ministry of Land, Infrastructure and Transport of Korea that supports Korean investors in developing infrastructure and urban projects in foreign markets).

The event also marks the 30th anniversary of diplomatic relations between Vietnam and the Republic of Korea (1992-2022), in line with the common orientation between the two countries of raising the relationship framework to a "Comprehensive Strategic Cooperation Partner."

FDI lifts Vietnam up global value chain

Vietnam, like many other East and Southeast Asian countries, is further climbing up the global value chain (GVC) thanks to the positive effect of the utilisation of foreign direct investment (FDI), according to the latest report by Hinrich Foundation.

The opportunities are plentiful for countries to move up the global value chain, said Riccardo Crescenzi, Professor of Economic Geography at London School of Economics, at a press conference announcing the report “Climbing up global value chains: Leveraging FDI for economic development” on June 14.

Amidst current challenges, Asian countries can analyse the link between global economic integration and sustainable development, on the basis of which they will be able to adopt support policies encouraging the participation in the GVC to promote sustainable development.

Vietnam’s increasing openness leads to a higher rise in FDI stock as a percentage of GDP, the report said.
 
“Compared to regional peers, the country changed from one of the most restricted to FDI, to one of the most open.

“One useful change was the revision of the Law on Investment policy, which restricted the ability of the central and subnational government to issue regulations on investment. This change removed uncertainty and overlapping or contradictory legislation.

“Vietnam’s economic model remaining led by FDI but focused on final-stage assembly tasks that depend on imports,” it added.

Tax deferrals help firms

Tax deferral policies are giving significant support to enterprises to overcome difficulties and recover production and business in the post-pandemic period, experts have said.

Passed on May 28, Decree 34/2022/ND-CP will give deferrals on about 125 trillion VND (5.4 billion USD) worth of taxes and land lease fees.

This is the fourth time enterprises have been given tax deferrals since the outbreak of the COVID-19 pandemic.

Dau Anh Tuan, Head of the Legal Department under the Vietnam Chamber of Commerce and Industry, said that there are several ways to support businesses to overcome difficulties, but the fastest is tax policies. The timely tax deferral policy will support businesses in the post-pandemic recovery and development process while creating a spillover effect on the whole economy, he said.

According to Tuan, the business community appreciates the Government’s support policies, such as tax and fee deferral, exemption, and reduction, as well as interest rate reduction. However, it is important to simplify procedures and lower requirements to ensure the support policies were accessible to many businesses, he added.

According to Ly Phuong Duyen from the Vietnam Academy of Finance, the tax deferral policy will soon have a direct impact on enterprises. Duyen said that this is considered the most timely support measure compared to support through interest rates or other forms, which would take more time for verification.

Third of firms view kickbacks as 'part of the game': report
     
One out of three businesses considered kickbacks a norm in bidding, especially for contracts financed by the State budget according to the latest report by the Vietnam Chamber of Commerce and Industry (VCCI) and the United Nations Development Programme (UNDP).

According to the report, businesses often had to allocate a significant chunk of money on under-the-table deals to rig the game in their favour, which severely undermined the bidding process's efficiency and fairness.

As many as 35 per cent of participating businesses said they accepted kickbacks as a norm or part of the game.

It was especially bad during the pandemic with as many as 50 per cent of medical equipment and 38 per cent of medicine suppliers for COVID-19-related contracts admitting they spent "a large amount of money" on kickbacks to win contracts.

According to the report, one out of four admitted they took the first step to offer kickbacks, one out of three in the medical field. One out of ten said they were advised by inviters to offer kickbacks, one out of five in the medical field. This clearly indicated that the perverse culture of offering kickbacks to businesses has become rampant and out of control.

VCCI and UNDP voiced their concerns over how said culture has severely undermined the country's ability to effectively combat the pandemic and how existing loopholes have allowed individuals and businesses to pocket a massive amount of money, causing great loss to the State budget.

Dau Anh Tuan, VCCI deputy secretary-general, said identifying what problems businesses have to deal with is the first step in finding solutions to help improve transparency, efficiency and legality in public procurement and the business environment in Viet Nam.

Some other issues faced by businesses were an extraordinarily short amount of time for them to effectively put together a bidding, unpublicised bidding invitations and seemingly-impossible requirements for both contracts and contractors.

VN agriculture needs modern processing industry
     
Developing a modern processing and preservation industry is vital for the agricultural sector to increase the added value of farm produce and expand exports.

According to Nguyen Van Khoi from the Vietnam Academy of Science and Technology, post-harvest loss of agricultural produce remains huge, accounting for around 20-25 per cent or equivalent to 8.8 million tonnes per year, worth around US$3.9 million.

Viet Nam exports around $40 billion worth of agricultural products each year but mainly under raw forms because the existing processing and preservation system fails to meet the demand.

There were more than 10,000 enterprises operating in farm produce processing across the country, but most of them were small and medium-sized

A survey of the Institute of Policy and Strategy for Agriculture and Rural Development found that most farms' produce processing companies had outdated technologies, 73 per cent of workshops were temporary, and 40 per cent did not have professional qualifications, while only 1-5 per cent registered for product quality.

According to Dao The Anh, Deputy Director of Viet Nam Academy of Agricultural Sciences, the development of cold storage system needed to follow planning to ensure appropriateness to each production area.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said that the ministry would increase cooperation with localities to support new investment in and expansion of processing facilities of products with the qualified raw material areas.

Transport businesses raise fares due to fuel costs

Transport businesses that have just resumed after the pandemic are struggling with the soaring fuel costs.

The consolidated financial statements of Vietnam Airlines for the first quarter reported just over $504 million in total consolidated revenues of the leading airline, up 55 per cent on-year. However, its gross loss was almost $70 million and its pre-tax loss was $114 million.

Vietnam Airlines explained that the first-quarter business results still reflected the heavy impact of the pandemic even at the beginning of this year.

The international market was almost frozen in the first quarter. The negative impact of global events and high fuel prices meant that airline businesses could not recover well.

The first-quarter financial report of FLC Group JSC – the company that owns Bamboo Airways – reported a loss of about $30 million and the new player Vietravel Airlines lost about $6 million.

The only Vietnamese airline that made a profit in the first quarter was Vietjet with a pre-tax profit of nearly $11 million – an increase of 117 per cent on-year, which mainly came from financial investments. Passenger transport activities recorded a gross loss of just over $11 million.

An expert in the aviation industry said that fuel costs account for the largest proportion of operating costs – about 30-40 per cent. Fuel costs in May increased by over $54 per barrel compared to the expectation, so total fuel costs in the month increased by $25 million.

With the current operating output, the total fuel cost for the year will increase by up to $270 million compared to the annual operation budget.

Since early May, Ho Chi Minh City-Hanoi flights have often cost at least $65.20 one way, and Ho Chi Minh City-Danang flights have been at least $74 one way – an increase of 30 per cent over the last year's cheap tickets.

In addition to aviation, road transport enterprises are also struggling. Le Trung Tinh, chairman of the Ho Chi Minh City Association of Tourism and Intercity Passenger Car Transport, said that despite steady prices, transport businesses have all enabled fuel price surcharges.

However, these companies cannot raise the trip costs too much because people's spending power is still lower than before the pandemic. High prices will not lure many passengers and companies' revenues will drop.

Gasoline accounts for 25-40 per cent of the total costs of transportation companies, so the more fuel prices increase, the more difficulties businesses are facing.

Digital capabilities driving the e-commerce revolution

Despite the tumultuous recent years, cross-border e-commerce is accounting for over one-third of Vietnam’s total e-commerce revenues and the number is only expected to grow.

On June 8, Amazon Global Selling Vietnam announced an initiative in collaboration with the Vietnam E-commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade (MoIT), aiming to support the development of cross-border e-commerce talents for Vietnam in the next five years. The project is expecting the participation of 10,000 Vietnamese businesses.

Nearly 90 per cent of 300 micro, small, and medium-sized enterprises (MSMEs) in Vietnam surveyed in a new Amazon report feel that e-commerce is critical for their ability to export their goods. More than 40 per cent of Vietnamese MSMEs anticipate greater sales growth overseas than in their home country.

The iDEA states that Vietnam’s e-commerce development speed is relatively high in the region, with the highest growth rate among regional markets in the past three years. With global business-to-customer (B2C) e-commerce sales expected to reach $2.88 billion in 2023, cross-border e-commerce will be an effective channel for Vietnamese goods to reach the global market.

New ASF vaccine nears export status

The major success in producing the world’s first vaccine to fight against African swine fever is expected to usher in an opportunity for Vietnam to export the product overseas.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien is proud of Vietnam’s success in producing a vaccine for the disease (ASF), saying that countries and livestock companies have contacted the Ministry of Agriculture and Rural Development and Navetco JSC, which produces it, in order to work on related procedures to purchase vaccines.

In the first phase, the vaccine will be used on a narrow scale. Approximately 600,000 doses are planned for use in some cities and provinces where businesses and households voluntarily register to use it. In the second phase, after an evaluation report, the Department of Animal Health will report to its management body - the Ministry of Agriculture and Rural Development - to direct expansion plans.

The agency said that the safety studies were necessary to get the green light for use in Vietnam and eventually other countries, and commercial use will depend on approval from animal health departments in each nation.

The supply of vaccines will be diversified when the other two vaccines developed by livestock vaccine producer AVAC Vietnam Co., Ltd. and agricultural firm Dabaco Group JSC are expected to be licensed in Vietnam by the end of this year.

Testing of AVAC’s vaccine started in pig farms in March, with an efficacy rate reaching 95 per cent. It is finalising legal steps to register for circulation of the vaccine. Meanwhile, Dabaco’s version has also been tested and evaluated since the same month.

Yeah1 to issue 78.6 million shares to increase charter capital

Yeah1 Group Corporation (YEG), at its annual shareholders’ meeting on June 15, approved a plan to issue a maximum of over 78.6 million shares this year to raise its charter capital by VND786.42 billion.

The shares will be offered at VND10,000 each. The proceeds from the share issue will be used to expand the corporation’s investment in digital media, tech-media, fintech and others.

In addition, the money will be used to invest in the corporation’s technological infrastructure, increase the working capital of subsidiaries and pay debt of the parent company.

Shareholders of Yeah1 also passed a business plan for this year with the consolidated revenue targeted at VND588 billion and the after-tax profit of the parent company growing 24.7% over 2021 to VND24.7 billion.

Efforts needed to develop national brand of Vietnamese ginseng

According to the Ministry of Agriculture and Rural Development, a number of Vietnamese localities have cultivated ginseng, mainly Ngoc Linh ginseng grown in the central province of Quang Nam and the Central Highlands province of Kon Tum with more than 6,000 hectares.

The planting and development of ginseng have initially created jobs and increased income for local people, especially ethnic minorities in remote areas, improved infrastructure, and contributed to new-style rural area building.

However, the consumption and processing of ginseng has yet to meet potential and strengths.

Therefore, the conference was organized to bring into full play potential and advantages of natural conditions and the endemic plant species with high economic value.

The Ngoc Linh ginseng (Panax vietnamensis, or Vietnamese ginseng), a rare medical root containing 52 saponin compounds helpful to health, was found on Ngoc Linh Mountain on the boundary between Kon Tum and Quang Nam in the late 1960s.

Besides saponin, Ngoc Linh ginseng contains 17 amino acids, 20 trace minerals and 0.1 percent of attar. The ginseng has high effects in anti-stress and anti-aging conditions. It helps improve immunity, enhance liver function, and lower cholesterol. Besides, it also works well with antibiotics and diabetes medications.

Ngoc Linh ginseng is one of the world’s most precious ginsengs. It was approved as a national treasure under the Prime Minister’s Decision 787/QD-TTg dated June 5, 2017.

Vietnamese policemen increase fighting oil smuggling at sea, drug transporting

The Command of the Coast Guard Region 4 in Phu Quoc City in the Mekong Delta Province of Kien Giang said that from the beginning of June until now, the unit has increased fighting the transportation of DO oil at sea without legal documents.

In particular, coastal guards have lately arrested two ships transporting about 130,000 liters of DO oil. Currently, the Coast Guard Region 4 Command is coordinating with functional units to strengthen the fight to prevent illegal DO oil trading and transportation in the Southwest Sea with a focus on the sea waters between Vietnam and Malaysia.

Also this morning, the Investigation Police Department on Drug-related Crimes (C04) under the Ministry of Public Security said that in respect of the 268K case, C04 coordinated with functional units to smash the drug ring from Cambodia to Ho Chi Minh City for consumption in large quantities.

Through investigation, C04 policemen discovered a ring of illegal trading and transportation of narcotics from Cambodia to Ho Chi Minh City for consumption. A ring leader is a Cambodian man who has directed 52- year-old Tran Van Hai and 55-year-old Nguyen Thanh Vinh in Ho Chi Minh City to distribute to agents for consumption in the area through social networks.

Police investigators verified that after receiving drugs from Cambodia, criminals transported them and hid them in a warehouse on Ton That Thuyet Street in Ho Chi Minh City’s District 4 where they divided drugs into small packages and then sold them to Tran Trong Khoi, Le Minh Hao, Tran Ngoc Diep (Hao's wife) in HCMC and others following the direction of the muggers in Cambodia.

Prior, C04 staff cooperated with city peers and Coast Guard Command to catch Nguyen Thanh Vinh at Phu Xuan Commune in Nha Be outlying district on June 4 while Vinh was transporting drugs. Policemen seized 100kg of drugs in six sacks.

Another team of investigators arrested Tran Van Hai, seizing 1kg of synthetic drugs. Policemen raided a drug warehouse rented by Hai at 7 Ton That Thuyet in District 4 and seized an additional 3 kg and 2,000 pills of synthetic drugs.

For expanding the case, police caught Le Minh Hao and Vu Quoc Duy red-handed delivering and receiving drugs on June 5, 2022, seizing 100 packages of drugs. Policemen continued asking men to detain Tran Ngoc Diep. While searching the residence of the couple Hao – Diep, police seized 10kg of drugs.

On June 6, the special case committee arrested Tran Trong Khoi and Ly Pham Thanh Giau both 17 years old in Ho Chi Minh City, and then seized 1kg of drugs, 269 packages of drugs with the brand of Mercedes, 300g of ketamine, and one rubber bullet gun.

The special case committee has so far arrested 7 people and seized 115kg of synthetic drugs of all kinds and many other related documents. Initially, the criminals all admitted their crimes. Currently, C04 is continuing to coordinate with functional units to keep investigating the case.

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