Aquatic export turnover jumped from US$ 800 million in 1998 to US$ 11 billion in 2022 or 14 times over the past 25 years thanks to market expansion, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).

Specifically, aquatic export revenue gradually increased from US$800 million in 1998 to US$4.5 billion in 2008, nearly US$9 billion in 2019 and US$11 billion in 2022. 

Viet Nam is home to 847 aquatic processing factories of which 692 were granted EU export codes. 

VASEP and domestic enterprises have joined hands to overcome international trade barriers to promote export, raise competitiveness for the Vietnamese aquatic sector.   

However, Viet Nam’s aquatic exports valued over US$3.2 billion in the first five months of this year, representing nearly 30 percent of the value made in the same period last year.

The decline ranged from 10 percent to 50 percent in all main export markets, with the U.S. experiencing the sharpest decrease (50 percent), followed by the European Union (nearly 32 percent) and China (over 25 percent).

VASEP General Secretary Truong Dinh Hoe blamed the drops to weakened market demands in the world in the first half of 2023.

ACB redeems bonds worth VND10 trillion

Asia Commercial Joint Stock Bank (ACB), whose ACB shares are traded on the Hochiminh Stock Exchange, has issued a resolution on the buyback of four bond lots issued via private placement in 2021.

The ACBH2124005, ACBH2124006, ACBH2124011 and ACBH2124012 bond lots have a three-year term with a combined value of VND10 trillion.

The bank will use medium- and long-term loans in Vietnam dong, proceeds from matured investments, or other lawful sources to buy back these bond lots at their par value on June 22, June 23, July 8, and July 15, respectively.

The privately-held commercial bank reported consolidated pre-tax profit of nearly VND5,157 billion in the first quarter of this year, up over 25% year-on-year, achieving 26% of the full-year business plan. Its total assets by the end of March had inched up 0.6% compared to January, topping VND611.2 trillion.

Its outstanding bonds currently come in above VND36 trillion. Bonds with tenors from one to three years make up most of the amount, at over VND32.1 trillion.

VND1,650 billion to be allocated for Tham Luong–Ben Cat canal project

Tham Luong–Ben Cat–Nuoc Len channel upgrading project is set to receive a disbursement of VND1,650 billion for the remainder of the year, reported the local media.

HCMC Party Committee Secretary Nguyen Van Nen, who leads the project supervision team, conducted a site inspection on June 13 to assess the progress of the Tham Luong–Ben Cat–Rach Nuoc Len channel project.

The Urban Infrastructure Construction Investment Projects Management Unit, the project investor, confirmed that nine packages have obtained clearance for land and work has commenced on pile driving along the canal banks.

After three months of execution, around VND203.8 billion has been disbursed, meeting 12.35% of the full-year target. The city plans to allocate an additional amount of VND583 billion by the end of this month and VND1,650 billion for the project for the rest of the year.

Bui Thanh Tan, director of the Urban Infrastructure Construction Investment Projects Management Unit, expressed concerns about challenges faced by the investor, including locations to store excess soil during canal drainage and the potential risk of collapse at the Go Cat waste disposal area.

The city Party Committee Secretary requested the investor to collaborate with contractors to optimize the mobilization of human resources and equipment, ensuring adherence to the project schedule. Additionally, he suggested flexible working hours, including night-time execution, to expedite completion by April 30, 2025, instead of late 2025.

The project to improve the water environment of the Tham Luong-Ben Cat-Nuoc Len channels requires an investment of VND8,200 billion from the State budget. The Government has provided VND4,000 billion, while the remaining funds come from the city budget.

Stretching over a total length of 63 kilometers and passing through various districts, including Binh Chanh, Binh Tan, District 6, Tan Phu, Tan Binh, Go Vap, and District 12, this infrastructure project holds significant importance for the city.

VIB sign new loan agreement with IFC, bringing its total credit limit to $450 million

International Commercial Joint-Stock Bank (VIB) and the International Finance Corporation (IFC) have signed a medium and long-term loan agreement to strengthen VIB’s financial resources for credit expansion activities including retail home loans, home renovation products, and affordable mortgages.
 
VIB and the IFC established a business relationship in 2011 when participating in the IFC’s Global Trade Finance Program (GTFP) as an issuing bank. Through more than 10 years of cooperation with eight Vietnamese banks currently joining the GTFP, VIB is the one with the largest limit and is also one of the most active banks with six awards from the IFC.

In February 2022, VIB was awarded the Fastest Growing Bank Partner in East Asia and the Pacific award. Moreover, in May, the IFC also increased VIB's trade finance limit to $200 million, making it the GTFP's largest trade finance limit in Vietnam.

With the new 5-year unsecured loan, VIB's total credit limit with the IFC has reached $450 million, including two loans valued at $250 million and a $200 million trade line.

As per the agreement, VIB will increase its lending to retail customers who want to purchase or renovate their homes. Within the scope of the agreement, VIB commits to spending at least $30 million to support the mortgage business with loans valued below $55,600.

This shows VIB’s adherence to the government objectives to boost the real estate sector and promote the disbursement of support packages in accordance with Circular No.33/NQ-CP.

In October 2022, VIB also completed the withdrawal of a $150 million loan from the IFC with similar terms to support individuals with home loans.

Tech groups coy over GMT consensus

It is likely that some of the world’s most well-known tech groups will seek government guarantees or other forms of support in order to deal with the upcoming implementation of a global minimum tax on corporates.
 
Multinational corporations from next year will have to contend with a brand new corporate tax structure, Photo: Shutterstock
Talking to VIR as part of Amplify Vietnam event held last week, Rubén Flores, CEO of Nokia Vietnam said, “Nokia is currently evaluating the tax (GMT) globally. Broadly speaking, we believe that tax rules should be predictable and avoid unnecessary administrative burden on businesses.”

The GMT under the Organisation for Economic Co-operation and Development is a global tax reform that will apply to multinational companies with revenue above €750 million ($803 million), and many member countries are set to implement it at the beginning of 2024.

According to Vietnam’s General Department of Taxation (GDT), Vietnam is expected to implement the GMT from January 1 next year. As many as 100 major foreign-invested companies are subject to it, including those from South Korea, Singapore, and Japan, which all have heavy investment in Vietnam.

At a conference on GMT held by the Ministry of Finance in April, GDT deputy general director Dang Ngoc Minh said that in Vietnam, about 335 projects in manufacturing and processing industries are enjoying corporate income tax incentives with rates of lower than 15 per cent.

“The list includes Samsung, Intel, LG, Bosch, Sharp, Panasonic, Foxconn, Pegatron and others, with their registered capital accounting for nearly 30 per cent of Vietnam’s total foreign investment, or about $131.3 billion. All the above major companies are likely to be negatively affected by GMT,” Minh said.

Intel, Samsung, Bosch, and several other global technology companies have reportedly asked Vietnam for tax reform as they face a change in the tax structure around the globe.

Choi Joo Ho, CEO of Samsung Vietnam, said, “The GMT regime is a prime example of the most significant external environmental changes,” he said. “If Vietnam also applies these policies, it could eliminate the instability in the business activities of affected foreign-invested enterprises. Samsung expects the Vietnamese government to continue creating a predictable business environment that is in line with global standards and the recent change in investment climate.”

Intel, Microsoft, and others declined to comment on the possible impacts of GMT in Vietnam when contacted by VIR.

A representative of the Department of Information and Communication Technology Industry under the Ministry of Information and Communications said, “We will study suitable solutions in order to develop and attract high-quality foreign investment after the prime minister’s special working group on studying and proposing solutions related to the GMT rate issues a report.”

At present, as assigned by the prime minister, the Ministry of Finance is working with the Ministry of Planning and Investment and other ministries on building supporting policies. They are expected to include increasing investment in infrastructure directly in industrial parks where these businesses are located; supporting human resource training; and supporting them in research and development, as well as having other policies in line with Vietnam’s commitments.

Hoang Viet Tien, deputy secretary general of Vietnam Digital Communication Association, noted, “If Vietnam does not have a timely policy response, it will easily be left behind in attracting foreign investment. It is necessary to promptly compensate with replacement benefits commensurate with the incentives that they are now enjoying.”

Many countries are now adopting a number of measures such as the standard local minimum tax regime, or new forms of investment based on costs, Tien explained.

“However, the promulgation of any new policies or mechanisms should be carefully considered to ensure fairness for businesses within and outside the scope of adjustment in accordance with our investment law, as well as with international commitments,” he added.

Quang Binh to license $1.42 billion to investors

Quang Binh will award investment cooperation agreements to 18 projects with a total investment value reaching $1.42 billion at an upcoming conference to announce the central province’s investment master plan, to take place in Hanoi on June 25.

The statement came from Quang Binh Department of Planning and Investment at a meeting between Quang Binh People's Committee and leaders of several departments involved with the conference.

At the meeting, Hoang Duc Thien, deputy director of Quang Binh Department of Planning and Investment, revealed that Quang Binh People's Committee will award investment cooperation notes at the conference to 18 projects from 17 investors, with a total registered capital sum reaching $1.42 billion.

Priority projects for investment in Quang Binh during the period 2021-2030 are those in line with national development strategies, as well as those attuned to the major development orientations of the whole country.
Three of these are infrastructure projects with a total investment value of $428 million, 14 are in real estate, reporting $840 million in total capital, and one project is in the mining industry, registering $150 million in capital value.

In addition, 10 further projects with total investments worth over $130 million in the fields of tourism, manufacturing, agriculture, and education hope to be awarded investment licences by Quang Binh People's Committee at the conference.

Priority projects for investment in Quang Binh during the 2021-2030 period are those in line with national development strategies, as well as those attuned to the major development orientations of the whole country, as stipulated by the national development plan.

Priority will also be given to projects with the potential for social and economic development, the efficient exploitation of natural resources, high-tech projects with little to no negative environmental impact, and those implemented by capable investors. Investors with a history of effective implementation of similar projects are also welcomed.

Quang Binh prioritises attracting foreign businesses with globally known brands, large financial capacities, stable and long-term investment policies, and will refuse labour-intensive, non-technological projects that may disrupt the region's labour supply.

For domestic ventures, Quang Binh will give priority to investments from large corporations, especially those in the Top 500 largest enterprises in Vietnam from the manufacturing, processing, tourism, and logistics industries.

China places greater strain on Vietnamese steel industry

China's efforts to bolster exports by slashing prices below $1,000 per tonne have exacerbated the already rising burden on the Vietnamese steel industry.

China's steel exports reached 8.4 million tonnes in May, rising 7.6 per cent on-year and reaching their greatest level since September 2016. In the first five months of this year, its steel exports climbed significantly to 36.3 million tonnes, an increase of 41 per cent compared to the same period last year.

As a result of factories increasing exports to reduce inventory levels, prices continue to decline. China's export steel price fell to $920 per tonne in May.

Tran Dinh Long, chairman of the Board of Directors at Hoa Phat Group (HPG), stated at the Q1/2023 general shareholders' Meeting of that China's recent increase in steel exports will be a significant pressure and that rivalry is inevitable.

Long said, "Over half of the world's steel is produced in China, putting enormous pressure on exports. In addition, the steel industry has developed on the domestic market, and numerous new steel projects are currently active. Consequently, local competition is also increasing."

In the first five months, Vietnam's steel industry remained under strain from low demand from domestic consumers and export competition. According to the Vietnam Steel Association (VSA), steel production fell to 11 million tonnes, a decrease of 22 per cent compared to the same period in the previous year. Within this, the production of construction steel dropped by 26.3 per cent to 4.26 million tonnes. Finally, sales decreased by 23 per cent to 4.3 million tonnes, and exports reduced by 41 per cent to 681,000 tonnes.

According to the VSA, corporations altered the selling price of construction steel five times in May alone. The frequency of the reductions stood at around once per week, with drops ranging from $4.25 to $8.50 per tonne per reduction. Depending on the type of steel, market consumption remains poor.

The VSA stated, "This indicates that construction steel prices are likely to continue their downward trend in the near future."

China has imported a substantial quantity of steel from Vietnam in the past due to increased demand. Now, however, demand has declined and exports have resumed, putting pressure on the global steel market, as stated by an HPG representative.

VAT refund delays tick off woodchip makers

A number of woodchip exporters in Vietnam are rejecting orders as they are waiting for more than $170 million in pending VAT refunds.

Woodchip exporting firms stated that the basic reason for the congestion in their current VAT refund is due to the contradictory instructions of the General Department of Taxation (GDT) in documents issued over the past few years.

In Vietnam, it is challenging to refund VAT on plywood, woodchips, and tablets, which account for nearly 40 per cent of the total export revenue of the wood sector, according to the Vietnam Timber and Forest Product Association (Viforest).

Tax refunds have not been processed for some businesses since 2021 because the Ministry of Finance (MoF) believed that they require substantiation of timber from producers to afforestation, adding more time and effort to the process.

Pham Thi Vinh, director of Halong 12-11 JSC in the northeastern province of Quang Ninh, said, “We are unaware of how to process a tax refund. We can no longer purchase raw materials due to a lack of capital. As a result, we are compelled to reduce production by half and shift the remaining workers.” Halong 12–11 has a tax refund of roughly $4.3 million pending.

According to GDT data, since the start of 2022, the tax authority has refunded $813 million in VAT for 4,760 records of timber businesses. The agency also verified that the tax authority denied refunds for 44 records, totalling $13.2 million. Over the same time, the tax authority has transmitted the records of nine businesses requesting refunds on wood products to the police due to suspecting fraudulent activity.

According to Viforest, numerous wooden businesses have not been refunded VAT totalling more than $255 million, with wood exporters accounting for more than $170 million. Quang Ninh alone has 11 businesses waiting for around $47 million.

At the meeting on May 29, a group of Quang Ninh woodchip exporters reported that only 10 per cent of all records were verified since the start of 2022. According to these companies, the authorities can typically verify no more than four records per day.

The tax authorities frequently advise businesses not to submit tax documents because they are unable to reimburse the tax at this time, according to a number of wood-exporting businesses, and the tax authority will alert the business at the appropriate time to submit the dossier.

Thang Van Thong, deputy chief of the Woodchip Section of Viforest, told VIR, “The MoF and GDT’s tight oversight measures are reasonable, but they must be compatible with production and business circumstances. Cases that violate tax laws have a limited extent. The scope of the entire timber industry and wood shavings in particular should not be limited by a small state.”

Hao Hung Co., Ltd., one of the largest exporters of woodchips in Vietnam, has consistently refused export orders for woodchips in recent months. The company said producers refuse orders since the greater the quantity of exports, the longer the delay for the tax refund.

According to Hao Hung, cash flow pressure is negatively influencing the competitive price capacity of Vietnamese sawdust exporters. Particularly on the Chinese market, Vietnamese woodchip costs at least $5 per tonne more than from other nations. Currently, Brazil has the lowest price, followed by Chile, while Australia is resuming production.

Officials have proposed a succession of solutions to eliminate tax issues, none of which meet the tax refund requirements of the timber industry. To prevent tax refund fraud, a number of enterprises have proposed implementing zero-per cent VAT. If it was introduced, businesses will sustain all losses associated with accounting and deduction, Thong of Viforest stated.

After meetings in May, Thong stated that businesses now want a specific roadmap for VAT refunds. “An increasing number are taking into consideration a plan to cease purchasing goods from intermediary factories, and instead self-invest in the supply chain. The reduction of woodchips to low levels will result in cessation of operations by a number of processing firms and have a negative impact on 1,400 forest-planting households in Vietnam.”

Bamboo Airways posts record losses in 2022

Bamboo Airways reported its biggest ever loss of VND17.60 trillion (USD741.39) last year as costs skyrocketed.

The airline recorded revenues tripling to VND12.01 trillion last year, according to the company’s financial disclosure.

Despite its high revenues, business administration expenses increased nearly 80 times from more than VND158 billion in 2021 to nearly VND12.75 trillion last year as the carrier made provisions for short-term and long-term bad debts.

As of last year, Bamboo Airways’ equity was negative VND835 billion.

The five directors of Bamboo Airways have asked to resign, and the airline will select a new board of seven directors at the upcoming general meeting.

Bamboo Airways is set to select a new board of directors for the 2023-2028 period on June 21.

Other airlines also posted accumulated losses last year. Vietnam Airlines lost VND2.64 trillion while Vietjet posted accumulated losses of VND1.99 trillion. 

Bac Giang ships 56 tonnes of fresh lychees to China by rail

The northern province of Bac Giang organised a ceremony on June 15 to mark the first shipment of 56 tonnes of Luc Ngan fresh lychees to China from Kep railway station.

Addressing the event, La Van Nam, Chairman of Luc Ngan district People’s Committee, said if rail transport proves effective, it will create favourable conditions for the exports of goods from Bac Giang and other provinces in northern Vietnam in general and agricultural products from the district in particular by saving time and cost, thereby reducing pressure on transportation and export activities via border gates.

The international railway system will connect with most major seaports in the region, China and countries in Southeast, Central, South and West Asia and the Middle East in the future, thus facilitating the access of Luc Ngan lychees to the markets in China and other countries, he added.

Vice Chairman of the provincial People’s Committee Phan The Tuan asked the customs agencies of industrial zones in Bac Giang province and the Region 7 Plant Quarantine Sub-department to facilitate the export of lychees, ensuring the products meet requirements on quality, food hygiene and safety for quick clearance.

The Luc Ngan district People's Committee was requested to closely cooperate with customs authorities, railway service providers and plant quarantine units to maximise support for enterprises engaging in exporting and distributing fresh lychees; and inform businesses about transporting fresh lychees by rail, he noted.

Bac Giang has about 28,7000  hectares under lychee cultivation with an estimated annual output of about 180-200,000 tonnes. 

Luc Ngan lychees have been exported to nearly 40 countries and territories across the world.

The Kep railway station, located in Tan Thinh commune of Lang Giang district, launched its international freight transportation services in February 2023, with a capacity of handing 80 to 100 carriages or containers per day.

Low credit growth makes large banks curb capital mobilisation

Low credit growth has made large banks curb capital mobilisation and implement solutions for attracting borrowers.

According to the State Bank of Vietnam (SBV), outstanding loans of the whole economy surpassed 12.3 quadrillion VND in the first five months of 2023, an increase of 3.17% compared to the end of 2022. 

This growth rate was lower than the rate of 8% in the first five months of 2022. It showed that the capital absorption of the economy was still weak. 

SBV deputy governor Pham Thanh Ha said manufacturing enterprises are still facing difficulties in the consumption of products, leading to lower demand for new loans for production.

For small and medium-sized enterprises, some with weak financial situations have had no feasible plans, so they have not met the bank's loan requirements.

Regarding real estate credit, many real estate projects have faced difficulties, including legal problems, so the credit demand for real estate has also decreased.

According to SSI experts, the weak demand for capital was the main reason for the lower credit growth in the first five months of the year. 

The experts have quoted the forecasts of commercial banks as saying that the credit demand was low in the second quarter of 2023. This demand is unlikely to increase sharply in the second half of the year because the businesses are still facing many difficulties, although lending interest rates have dropped significantly after SBV's three policy interest rate cuts from March to May.

The average lending interest rate, excluding incentives, was 12.5% per year, down about 2.2% from the end of 2022 but still about 2% higher than the rate in 2019, according to SSI.

Meanwhile, according to the latest data of SBV, the average lending interest rate for new loans is at 9.07% a year at present, down 0.9% compared to the end of last year. 

Commercial banks have all lowered lending rates to stimulate investment and consumption demand, but the new interest rates are mainly applied to new loans. Only a few commercial banks (mainly state-owned commercial banks) reduce interest rates on existing loans.

Agribank is the bank with the most attractive lending rates in the system, but it is not easy to have credit growth. 

This bank's credit growth reduced in the first four months of the year and only recovered in May 2023. The difficulties of the domestic market, including weak consumption of agricultural products, caused a strong reduction in credit demand, according to Agribank.

VietinBank's credit growth reached 6% in the first five months, the highest among state-owned commercial banks. However, a VietinBank leader said that in May 2023, its credit growth began to decline.

Leaders of many banks have admitted that capital absorption of the economy is too low even though the interest rates have cooled down. This causes big banks to curb the mobilisation of capital and also have solutions to attract more borrowers.

A BIDV leader said with dozens of credit institutions, there are many chances for businesses to access credit. Many banks have strict regulations for lending activities, but there are some others without strict regulations, so businesses have more opportunities to borrow capital.

At four large state-owned banks, including Vietcombank, Agribank, VietinBank and BIDV, the highest interest rate is 6.8% per year for a 12-month term.

At the same time, these banks are striving to reduce costs and further cut deposit interest rates to continuously cool down lending rates.

Le Thanh Tung, a member of VietinBank's board of directors, told nhandan.vn that since the end of February, many banks have continuously announced interest rate reductions and launched credit packages to stimulate borrowing activities. 

However, the number of dissolved and bankrupt enterprises was significantly higher than that of newly established enterprises. That proves that businesses face so many difficulties.

Therefore, besides the banks' solutions, the SBV deputy governor said that the stimulative solutions for the economy are very important. Ministries and sectors should continue to promote supportive policies for the development of enterprises, and remove difficulties in the consumption market and the real estate market.

BIDV will continue to reduce the lending interest rates to stimulate the investment and consumption needs of people and businesses, thereby helping recover credit growth.

VietinBank is striving to accelerate the implementation of the 2% interest rate support package and implement Circular 02 on debt structure.

Agriculture remains bright spot in exports

Agriculture remains a bright spot in the overall gloomy export picture in the first five months of this year, with agro-forestry-aquaculture export turnover in May rising 9.5% month-on-month and 8.5% year-on-year to reach 2.9 billion USD.

The export value of fruits and vegetables in May nearly doubled compared to the previous month, hitting an estimated 500 million USD. Meanwhile, that of rice and coffee surged 53.1% and 28.5% to 530 million USD and 418 million USD, respectively.

Secretary General of the Vietnam Fruit & Vegetables Association Dang Phuc Nguyen attributed the increases to Vietnam's signing of protocols to export durian, sweet potato, and banana to China; pomelo to the US; and lemon to New Zealand.

Nguyen showed optimism about the country’s 4-billion-USD target in vegetables and fruits export this year.

According to the Ministry of Industry and Trade (MoIT), Vietnam raked in 136.17 billion USD from goods exports in the last five months, down 11.6% year-on-year, with all sectors meeting difficulties as the demand has decreased globally, especially for non-essential consumer goods.

However, a positive sign of recovery was seen in May when export earnings picked up 4.3% month-on-month to hit 29.05 billion USD, helping the country enjoy a trade surplus of nearly 10 billion USD. Compared to the same period last year, the figure decreased 5.9% but the declining rate has slowed down. 

Deputy General Director of the MoIT’s Import-Export Agency Tran Thanh Hai said it is forecast that Vietnam’s exports will recover in the second half in the context of falling inflation in many markets. In addition, inventories in many countries have dropped significantly, prompting importers to place new orders.

Free trade agreements (FTAs) that Vietnam signed with partners will continue to help improve the competitiveness of Vietnamese goods, bringing opportunities for Vietnamese businesses to promote their export activities, Hai noted.

Nearly 200 domestic and foreign firms to attend ENTECH HANOI 2023

As many as 200 local and foreign businesses will showcase products and technologies at the International Exhibition of Energy and Environment Technology Hanoi 2023 (ENTECH HANOI 2023) scheduled for June 28-30.      

On display at 200 pavilions will be cutting-edge products and equipment about energy saving and environmental protection, as well as advanced technology solutions, which are anticipated to help reduce input costs and improve competitiveness for businesses.

Simultaneously, the event is expected to provide an ideal venue for businesses to step up cooperation, boost transfer technology, and gain access to the state-of-the-art technologies in the world, thereby contributing to developing business activities and raising domestic technical standards in the field of energy and environment.

A number of workshops on energy saving and environmental protection solutions will be held on this occasion. Especially, the Ministry of Science and Technology will coordinate with relevant agencies to host the "Energy and Environment Technology Forum 2023".

NovaGroup to offload 136 million NVL shares

Novagroup JSC has registered to sell around 136.4 million NVL shares between June 16 to July 14 to restructure its investment portfolio and its debt.

NovaGroup, the largest shareholder of No Va Land Investment Group Corporation (Novaland), which trades its NVL shares on the Hochiminh Stock Exchange, holds nearly 539.7 million NVL shares.

With the current price at VND15,250 per share, the batch of NLV shares to be sold will have an estimated value of over VND2,073 billion.

After the share sale, NovaGroup will lower its stake in Novaland from 27.675% to 20.681%%.

Bui Thanh Nhon, founder of NovaGroup and chairman of Novaland, his family and his two companies currently hold a 50.5% stake in Novaland. However, their ownership will decrease to 43.6% after the transaction.

HCMC hosts four int’l expos

Four international exhibitions, namely Paper Vietnam, Rubber and Tyre Vietnam, Coatings Expo Vietnam, and Plastech Vietnam, were inaugurated simultaneously yesterday, June 14, at the Saigon Exhibition and Convention Center in District 7, HCMC.

The events will run until June 16, with the participation of over 300 businesses from 17 countries and territories, including Italy, the United Arab Emirates, Japan and Taiwan.

This year, India serves as the official partner for the expos.

These expos, organized annually by Minh Vi Exhibition and Advertisement Services Co. Ltd. (VEAS), aim to connect domestic and international businesses and foster cooperation among them.

The occasion brings together leading manufacturers and distributors in the four sectors, showcasing a wide range of product categories such as tissue paper, premium coatings, natural rubber and packaging material.

VEAS will also conduct various seminars during the events, discussing the latest trends in the marketplace with renowned experts, business executives and industry professionals.

To strengthen business-to-business partnerships, especially in the high-end segment, the organizer has launched the “VIP Buyer” program for local and international participants.

The expos are open for free attendance over the three-day period, with an expected turnout of about 8,000 attendees.

Power generation needs extra 1.2 million tons of coal in H2

The demand for coal is projected to rise by 1.2 million tons in order to ensure electricity security, bringing the total coal volume needed for electricity production to 18.75 million tons in the second half of the year.

Vietnam National Coal – Mineral Industries Holding Corporation Limited (Vinacomin), a State-run conglomerate specializing in coal and mineral mining, said that it is exploring ways to meet the coal demand of thermal power plants.

Over the next two months, Vinacomin plans to supply Vietnam Electricity Group’s (EVN) coal-fired power plants with an additional 10,000 tons of coal per month beyond the contracted amount.

The supply of coal to Thai Binh 2 thermal power plant is expected to reach 300,000 tons, doubling the prescribed amount.

Coal supply is anticipated to increase by 500,000 tons in July, resulting in a total coal volume of 18.75 million tons needed for electricity production in the second half of the year. The majority of the coal will be sold to EVN.

During a recent meeting with coal suppliers, EVN requested Vinacomin and Dong Bac Corp to provide an extra one million tons of coal to ensure sufficient energy supply in June and July. This request was prompted by the record-low water levels at hydropower plants in the north, which necessitates the full-capacity operation of thermal power plants.

In the first half of the year, thermal power plants consumed 21 million tons of coal, marking a 15% increase compared to the same period in 2021 and reaching 54.5% of the contract volume. It is estimated that they will burn 39.7 million tons of coal this year, reflecting a 15% year-on-year increase.

The Ministry of Industry and Trade has warned that northern provinces may face a daily shortage of between 30 and 50 million kWh, resulting in blackouts for most of the day in some parts of the region.

HCMC holds dialogue to seek problem-solving measures for businesses

A dialogue between the city’s leaders and businesses was held last week to solve enterprises’ problems and support their business activities.

The conference co-organized by the Investment and Trade Promotion Center and the HCMC Department of Labor, Invalids and Social Affairs attracted more than 300 businesses.

The event received over 60 questions about the implementation of legal normative documents consisting of labor law regulations, employment law, the law on occupational safety, and vocational education.

The concerning issues also were personal income tax for foreigners, requirements for using the visa waiver program applied for citizens of ASEAN members, employees who are not subject to compulsory participation in social insurance, health insurance, unemployment insurance, and more. 
 
Director of the HCMC Department of Labor, Invalids and Social Affairs Nguyen Van Lam emphasized that the department has made efforts to reduce the processing time of administrative procedures for labor.

He hoped that human resource officers of businesses have a deep knowledge of regulations to protect the rights of workers and ensure businesses ‘compliance with regulations.

General port in Hau Giang receives 20,000-ton ship

For the very first time, Hau Giang Maritime Service Limited Liability Company (VIMC Hau Giang) received a ship with a capacity of 20,000 tons in the Mekong Delta province of Hau Giang.

This morning, VIMC Hau Giang General Director Vo Thanh Phong said that the VIMC Hau Giang’s general port has just received vessel DING HENG 38 with a capacity of 20,000 tons.

According to Mr. Vo Thanh Phong, this is the first time a vessel with 20,000 tons of capacity has entered the Hau River and docked at the port after VIMC Hau Giang’s general port has come into operation for 16 years.

The ship expected to leave VIMC port to arrive in Canada on June 17 will load and unload 10,000 tons of fish fat through the port.

From the beginning of 2023 until now, about 450,000 tons of commodities were loaded and unloaded at the port reaching 45 percent of the year plan.

MoIT provides two alternatives for modifying the NLDC model

The transition of the National Local Dispatch Centre's (NLDC) management from Electricity of Vietnam (EVN) to the Ministry of Industry and Trade (MoIT) could occur in one of two scenarios.
 
On June 14, the MoIT sent Report No.3711/TTr-BCT to the prime minister regarding the transfer of the NLDC to the MoIT in one of two ways.

Option 1: The NLDC becomes a public non-profit organisation under the MoIT that provides electricity infrastructure and operational services.

Option 2: The NLDC becomes a single-member limited liability corporation fully funded by state capital and responsible for operating the grid infrastructure and electricity market under the MoIT.

According to the MoIT, both of the aforementioned alternatives satisfy the criteria of the NLDC's independence and objectivity compared to the current structure, its capacity to collaborate with related entities, and its flexibility in terms of innovation and creativity.

To achieve the objective of transferring the NLDC status quo to the MoIT, the model of a governmental non-business unit providing services for managing the power system and the electricity market is acceptable.

"Option 2 may be considered in the subsequent phase, following the promulgation of the revised Law on Price and the Electricity Law," the MoIT proposed.

According to this agency, the newly constituted entity under the MoIT would be responsible for the administration of power infrastructure and managing the market.

The electricity market matches orders every 30 minutes per cycle, seven days a week, including during holidays. If the NLDC is transformed into a public service entity under the MoIT, this cycle can be shortened to 15 minutes, or even as little as five minutes, similar to nations with more developed electricity markets.

The MoIT holds that it is essential to have a particular financial mechanism that is sufficient to guarantee the maintenance of salaries and allowances at the current level in order to prevent a disruption to the NLDC's human resources, which could pose a threat to the stable, safe, and effective operation of the power system, particularly during the transition of the organisational model.

According to the MoIT, electricity is a unique commodity where supply and demand must always be harmonious, so these roles are vital to guarantee the continuously smooth functioning of the power system.

The current NLDC status comprises the Hanoi-based NLDC A0 and NLDCs in other regions (A1 in the north, A2 in the south, and A3 in the central region). The total number of NLDC employees is 454.

The MoIT stated in its submission, "This is the minimum number of technical staff for the safe and economical operation of the power system, which must be maintained steadily and is difficult to increase since it takes roughly two years (including recruitment, training, and the probationary period) to introduce new personnel."

In a development pertaining to the NLDC, on June 14, EVN issued Decision No.603/QD-EVN suspending Nguyen Duc Ninh from the position of NLDC director while it inspects the leadership and management of the power system.

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