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According to the Department of Culture, Sports, and Tourism of Binh Thuan Province, in May 2023, the province received more than 800,000 tourist arrivals, marking a growth of over 66 percent compared to the same period in 2022. Among them, there were approximately 21,700 international tourists, 4.4 times higher than the previous year. The majority of international visitors to Binh Thuan came from South Korea, China, Germany, the UK, and the US.
Therefore, since the beginning of 2023, the province has welcomed over 3.6 million visitors, almost double compared to the same period in 2022. Particularly, during the first five months of 2023, the number of international tourists visiting the area reached a record high of approximately 111,000 visitors, a remarkable 5.7-fold increase compared to the same period in 2022.
Currently, notable tourist destinations in Binh Thuan, such as Ham Tien - Mui Ne, Tien Thanh - Thuan Quy, La Gi Town, and Phu Quy Island District, are experiencing a significant surge in tourist arrivals for sightseeing and resort purposes, especially during weekends. The room occupancy rates in these areas consistently range from 90 percent to 100 percent.
Mr. Bui The Nhan, Director of the Department of Culture, Sports, and Tourism of Binh Thuan Province, explained that one of the main factors contributing to the significant increase in tourist arrivals is the completion of two expressway projects: Phan Thiet - Dau Giay and Vinh Hao - Phan Thiet. These expressways have reduced travel time and distance from Ho Chi Minh City and Southern provinces to Binh Thuan Province.
The province has actively restructured its tourism services and products, prioritizing innovation and adaptability. The province has shifted its focus to attract a diverse range of tourists, including groups, friends, and families, instead of solely relying on large tour groups as in the past.
Additionally, there has been a growing interest in coastal and eco-tourism, accompanied by a heightened emphasis on health protection. The ongoing National Tourism Year 2023 in Binh Thuan has further promoted and amplified these trends, resulting in robust growth for the local tourism industry.
TPBank pays $170 million to repurchase premature bonds
Hanoi Stock Exchange (HNX) has announced the results of early bond redemption transactions of Tiền Phong Commercial JSC (HoSE: TPB).
From May 15 to 25, TPBank bought VNĐ4 trillion (US$170 million) of outstanding bonds.
While the bond TPBL2124003 was issued in 2021 and is expected to expire in 2024, the rest, which are TPBL2225001, TPBL2225002, TPBL2225003, TPBL2225004, and TPBL2225005, were issued in May 2022, and are due in May 2025.
The State Bank of Vietnam (SBV) approved TPBank to expand its charter capital up to nearly VNĐ6.2 trillion through the issuance of common shares to enhance share capital in the equity, following the authorised plan in the Annual General Meeting of Shareholders 2023.
Previously, TPBank's 2023 General Meeting of Shareholders approved the plan to increase charter capital by issuing nearly VNĐ620 million shares to pay dividends to shareholders, equivalent to a rate of 39.19 per cent. The expected release time is in 2023.
Local electrical, electronic, and telecoms products face hurdles in EU market
Vietnamese electrical, electronic, and telecoms products have encountered numerous difficulties in making inroads into the EU market due to the strict requirements imposed regarding the rule of origin, sustainable development, and technical barriers to trade (TBT), heard a hybrid workshop held on May 30 in Ho Chi Minh City.
At the event, Nguyen Huu Nam, deputy director of the Vietnam Chamber of Commerce and Industry’s Ho Chi Minh City Branch, pointed out that the enforcement of 15 free trade agreements (FTAs) has made Vietnam's electrical, electronic, and telecommunications products enjoy preferential tariffs of 0% when exporting to the EU market.
Furthermore, local businesses are also allowed to become involved in the supply chain of raw materials within the EU. However, they are required to meet the stringent requirements set by European importers to enjoy these incentives.
At present, the production and assembly of components and accessories for electrical, electronic, and telecommunications products in the country depends heavily on imported components.
The situation has therefore put Vietnamese goods at risk of not being able to meet the regulations on origin traceability, thereby not being able to take the full advantage of the incentives from the EU-Vietnam Free Trade Agreement (EVFTA).
Nam added that Vietnamese electrical, electronic, and telecommunications products are also required to meet other requirements related to sustainable development from EU nations.
Moreover, consumers in Europe have a lot of requests related to humanity, people, the environment, and society, he said, noting that businesses will have to ensure that they fully comply with the requirements related to TBT when exporting their products to the bloc moving forward.
Vietnam Airlines named among world’s best airline for 2023
National flag carrier Vietnam Airlines has been listed among the top 25 best airlines in the world for 2023, as compiled by Australia-based aviation safety and product rating agency AirlineRatings.com.
According to the rankings, the Vietnamese airline was 20th in the list.
Air New Zealand was named as the airline of the year, while Qatar Airways, which topped last year’s AirlineRatings.com’s ranking, came in at second place.
The third and fourth positions went to Abu Dhabi’s Etihad Airways and Korean Air, respectively.
Other leading airlines named among the list released by AirlineRatings.com were Singapore Airlines, Qantas, Virgin Australia/Virgin Atlantic, EVA Air, Cathay Pacific Airways, Emirates, Lufthansa / Swiss, SAS, TAP Portugal, All Nippon Airways, Delta Air Lines, Air Canada, British Airways, Jet Blue, JAL, Turkish Airlines, Hawaiian, KLM, Alaska Airlines, and United Airlines.
In order to produce its rankings, AirlineRatings.com examined major safety and government audits, as well as looking at airline fleet age, passenger reviews, profitability, investment rating, product offerings, and staff relations.
This comes after Vietnam Airlines was also named among the world’s best 100 airlines back in 2022 by Skytrax at the 2022 World Airlines Awards.
In 2018, the national flag carrier and budget carrier Jetstar Pacific were awarded the highest seven-star safety ranking by AirlineRatings.com.
Current trends guarantee big growth in Vietnam-US trade, investment: USABC leader
The current trends in economic and trade cooperation between Vietnam and the US guarantee big growth in two-way trade and investment in next 10 years and warrant upgrading the partnership to a strategic level, said Ted Osius, President and CEO of the US - ASEAN Business Council (USABC).
In an interview granted to the Vietnam News Agency ahead of the 10th anniversary of the two countries’ comprehensive partnership (July 2013 - 2023), the former US Ambassador to Vietnam said trade and investment play a big role in this relationship. The US is Vietnam’s second largest trading partner and biggest export destination.
In 2022, bilateral trade reached a record high of US$138.9 billion. Vietnam was the eighth largest trade partner and the largest ASEAN exporter of the US. The US was the biggest export market of Vietnam last year. Vietnam’s annual export to the US has grown almost 20% every year for the last 10 years.
The business mission to Vietnam last March was the biggest ever in decades coinciding with the 10th anniversary of the comprehensive partnership with a total of 52 companies looking for sales, sourcing, and investment opportunities, according to Osius.
The delegation was welcomed by top leaders of Vietnam including Prime Minister Pham Minh Chinh, Chairman of the National Assembly Vuong Dinh Hue, Chairman of the Central Party Committee’s Commission on Economic Affairs Tran Tuan Anh, and key stakeholders across several ministries and agencies.
The Vietnamese leaders rolled out the red carpet for them, patiently listened to all the companies’ concerns, and provided detailed, thoughtful answers as to how those concerns would be addressed and who was responsible for follow-up action, Osius noted.
Meanwhile, USABC reaffirmed its commitment to supporting Vietnam’s efforts in maintaining macro-economic stability and resilience and its support for Vietnam’s digital transformation strategy and green energy transition. Its members proposed new areas of cooperation and highlighted ongoing initiatives in various sectors including agriculture, aerospace, energy, healthcare, logistics, tourism, digital economy, financial services, defencee, innovation, and creative economy in Vietnam.
The USABC leader said both sides will see the continued strong trend in expansion of global manufacturing hub and supply chains in Vietnam in semiconductor, FMCG (fast moving consumer goods), toys, furniture, food and agriculture, digital economy, creative economy, financial and banking services, and healthcare.
They are starting to see Vietnamese companies investing in US, such as Vinfast, An Phat and Sovico, which are also big customers of US companies.
In the interview, Osius also highlighted the two countries’ cooperation in health, science and technology, education, and aerospace, defense and security.
In terms of health, the US has provided tuberculosis health assistance for Vietnam since 2004. During the COVID-19 pandemic, it supplied 40 million doses of vaccine for the Southeast Asian nation, which did its part to provide the US with masks and personal protective equipment. This is another where the countries see a continuing area of collaboration important to both countries.
Regarding science and technology, they recently had a joint committee meeting to discuss huge issues such as space cooperation and cooperation in high-tech areas like AI, biotechnology.
Meanwhile, Vietnam has moved up in the rankings to be the 5th largest sender of foreign students to the US, he said, considering this as a remarkable statement about the commitment of Vietnamese students and parents wanting their kids to be educated in the US.
The aerospace, defence, and security sector is seeing renewed interest on both sides. Talks between the US industry and Vietnamese counterparts are taking place more frequently. Besides, it still needs a lot of work to get both sides to understand each other’s processes, according to Osius.
Deutsche Bank expands investment in Vietnam
Deutsche Bank has announced plans to inject an additional $100 million into its Ho Chi Minh City branch, raising its total investment in Vietnam to over $200 million. This substantial increase in capital infusion empowers the bank to expand its operations and offer an enhanced range of services to its valued clientele across the nation.
Since its establishment in Vietnam in 1992, Deutsche Bank has steadily forged a remarkable 30-year legacy of expansion and development, solidifying its position as a driving force propelling the ASEAN banking sector forward.
Today, its presence in Vietnam remains instrumental, playing a pivotal role in the group's burgeoning influence across the vibrant Asia-Pacific region. It has witnessed a doubling of its revenue over the past two years.
Since 2017, Deutsche Bank has successfully mobilised over $1 billion in annual funding, including loans and equity capital, for Vietnamese enterprises. The bank has also solidified its position by arranging capital and structuring financial transactions in international markets for Vietnamese organisations and businesses.
Second home real estate on the slow path to recovery
The second home and resort real estate market is dragging through a slow recovery, with very few transactions in the first four months, although tourism numbers and new legislation are pointing in a healthy direction.
According to a report by DKRA Vietnam, the supply of villas and town houses across the country continued to decrease from the end of the second quarter of 2022. Specifically, in April only two projects were opened for sale, providing 12 apartments to the market, down 69 per cent from the previous month and down 98 per cent compared to the same period last year.
Particularly, the Central region recorded the fourth consecutive month that no new projects were introduced to the market.
The primary selling price did not alter greatly compared to the previous month. Instead, investors have aggressively launched discounts up to 30-40 per cent to stimulate market demand.
Contrary to the aforementioned segments, DKRA assesses that the condotel segment is recording a recovery in demand, although this recovery has not yet been clear.
In April, fewer than 40 condotels nationwide were sold, down 36 per cent compared to the same period last year. Only six condotel apartments were purchased during the first three months of the year. Projects with full legality and operated by top international brands are still preferred by customers.
On May 15, the Ministry of Natural Resources and Environment requested all localities to strengthen resources and conditions to proceed with admin procedures online to save time for businesses.
At the same time, localities need to step up the issuance of certificates of land use rights, ownership of houses, and other land-attached assets to land users, including condotel units.
According to Colliers Vietnam, hotel supply in Vietnam has tripled in the past 10 years. In which, the number of room types from mid-range to luxury has increased by 6-7 times since 2009.
The number of hotels operated by international brands is expected to double in the next three years, from around 125 in 2022 to more than 260 projects in 2025.
In 2019, the occupancy rate of tourist accommodation establishments such as hotels, resorts, and resort villas reached 52 per cent. Thanks to the return of domestic visitors in 2022, this index has improved most clearly in beach tourist destinations such as Ho Tram, Danang, Nha Trang, and Phu Quoc.
Meanwhile, the number of new resort villas and shophouses in 2022 has increased by 20 and 34 per cent respectively over the previous year.
According to Morgan Ulaganathan, head of Asset Services and Hospitality Advisory at Colliers Vietnam, the resort and second real estate industry in Vietnam possesses many key factors, but still faces many challenges.
Merger and acquisition activity, although slowed down last year, is expected to have an active season over the next few quarters.
According to the Vietnam National Administration of Tourism, in April more than 984,000 international visitors entered Vietnam, the highest since the beginning of the year, and an increase of nearly 10 per cent compared to the previous month.
Generally, for the first four months of the year, more than 3.7 million international visitors came to Vietnam. An average of 9.5 million domestic arrivals nationwide, reaching 38 million in the past four months. Total revenue from tourists was estimated at VND196.6 trillion ($8.3 billion).
As a result, revenue from accommodation and catering services was estimated at VND214.8 trillion ($933 million), up nearly 26 per cent over the same period last year. Tourism revenues in the past four months are estimated at VND9.1 trillion (395.6 million), more than double compared to the same period last year.
The number of international visitors also increased thanks to more than one million tourists coming from South Korea in the first four months. There were also 263,000 American arrivals and 252,000 Chinese arrivals.
$2 billion Nam Dinh 1 thermal power plant could resume this year
The long-delayed Nam Dinh 1 thermal power plant could get back on track by the end of 2023 thanks to the investor's determination.
After the meeting with Secretary of Nam Dinh Party Committee Pham Gia Tuc on May 24 in Nam Dinh province, Taekwang Power Holdings general director Sang Young Jin expressed his determination to develop the Nam Dinh 1 thermal power plant, which has been delayed for over 10 years.
According to Jin, the reason for the delay in starting construction is that the company has faced a myriad of financial problems while completing the procedures. There was also a major change in the shareholders of the company.
During the meeting, Jin shared the plan to complete the procedures by the end of 2023 and kick off the construction.
Jin stated that the company has completed the arrangement of capital and adjusted the investment plan in terms of modern environmental protection, meeting the standard regulated at COP 26.
He hoped to receive support from the provincial leadership and the relevant authorities.
In 2010, the investor, which is a consortium of Taekwang and Acwa Power Co., unveiled the initial preparations to implement the project. Six years later, an agreement for the thermal power plant project was signed by the General Department of Energy and the consortium of investors.
In 2017, the investor received the registration certificate, which was granted by the Ministry of Planning and Investment. However, no progress has been made since, despite the province allocating a large amount of land for the resettlement of residents and the development of the project.
The project was due to have a capacity of 1,200MW (two generating units of 600MW each) and a total investment of more than $2 billion. It was planned to supply power for Nam Dinh province and the northern region. The plant would be fuelled by coal from Vietnam National Coal and Mineral Industries Group as the main supplier.
Taekwang Power Holdings, a Taekwang Group company, was established in 2008 in an attempt to participate in a power plant development in Vietnam. Taekwang Group has expanded its business portfolio from shoe-making into petrochemicals and real estate, and has now grown to become a power plant project developer and operator. It continues to increase its activities in Vietnam, Indonesia, and Malaysia.
Viet Nam – one of Asia's most dynamic economies: International media
Viet Nam has emerged as one of Asia's most dynamic economies in recent years, despite global uncertainties.
Viet Nam's economy faces many challenges, especially a decrease in external orders due to impacts from the global economy.
However, the S-line country tries to overcome difficulties by attracting foreign investment and boosting domestic demand to maintain sustainable growth in the second half of this year. This is the opinion of the international media last week.
Due to a challenging global economy, companies in Asia-Pacific are turning to Viet Nam and the Philippines to find affordable skilled talent, according to Singapore's Business Times.
The newspaper said that the search for candidates in these two countries in the first quarter of this year increased by 300 percent compared to the same period last year.
Meanwhile, the reputable financial channel CNBC quoted Dragon Capital's leader as saying that many foreign investors have returned to Viet Nam and Viet Nam's growth deceleration in the first half of 2023 was only temporary.
Notably, according to Professor David Dapice - Senior Economist, Ash Center, Harvard University, Viet Nam's medium-term growth potential is not bad. This is because FDI inflows continue to pour into Viet Nam and abundant human resources boost Viet Nam's growth.
In the same vein, World Bank's senior economist in Viet Nam, Dorsati Madani, assessed that Viet Nam's growth would be more sustainable in the second half of the year when the US and EU economies began to recover, leading to the rise of Viet Nam's commodity exports.
In general, the Korea Times said that Viet Nam is rising to become a power in Southeast Asia. Accordingly, Viet Nam exhibits stable and outstanding growth, thanks to its young, diverse population and skilled workforce.
Smart border gate control proposed to facilitate trade of farm produce with China
Smart border gate control should be launched to prevent congestion and facilitate cross-border trade in farm products between Việt Nam and China.
The proposal was raised at the working session between Việt Nam Ministry of Agriculture and Rural Development and China’s Guangxi Province on Tuesday on measures to promote the trade exchange of farm produce between the two countries.
Guangxi was the largest gateway for agricultural exports from Việt Nam to China.
Statistics of the China Customs showed that around US$350.4 million worth of agricultural products was imported to China via border gates with Guangxi Province in the first four months of this year, accounting for 19.7 per cent of Việt Nam’s total agricultural exports to China.
According to Nanning Customs, the peak harvest seasons for fruits such as durian and mango are approaching with higher transportation demand across borders, which is expected to put more pressure on customs clearance.
There have been signs of being overloaded at border gates recently. However, efforts are being made to facilitate trade during peak seasons, Nanning Customs said.
To enhance the customs clearance capacity, Nanning Customs said that a smart border gate control system should be piloted. Priority should also be given to create favourable conditions for trade between the two countries, the customs said, adding that the potential for cooperation in the trade of agricultural products was huge.
Minister of Agriculture and Rural Development Trần Thanh Nam said that as congestion was happening at some border gates, it was necessary to increase information exchange between customs from the two sides to speed up customs clearance.
Nam said that some agricultural products must be given priority in customs clearance to prevent impacts on product quality.
The volume of goods transported across borders with Guangxi was huge, putting high pressure on customs clearance. Nam urged Nanning Customs to establish a contact point so that the two sides could easily communicate and timely handle problems at border gates.
Nam said that Guangxi had borders with four provinces of Việt Nam with nine border gates. However, only six of them allowed the import and export of fruits and vegetables.
Nam urged Nanning Customs to allow fruits and vegetables to be traded via all nine border gates to ease the pressure on traditional gates and lower costs.
Regarding the smart border gate control system, Nam said that the idea was good, urging Nanning Customs to develop a specific project for pilot implementation.
Nam also said that a business association should be established which would play role in connecting enterprises operating in logistics and in trade from both countries to facilitate the import-export activities.
Nam also proposed the development of cold storage or slaughter centres in border areas to meet the consumption demand of the two sides.
Việt Nam had many disease-free husbandry zones with products exported to markets such as Japan, Korea and Russia. Nam said, adding that the Việt Nam Ministry of Agriculture and Rural Development would work with the Chinese side to open the door to Vietnamese husbandry products.
Extra VND1.9 trillion approved for Nhon-Hanoi Station metro line
The Government has approved adding nearly VND1.92 trillion to the investment cost and rescheduling the completion of the Nhon-Hanoi Station metro line project to 2027.
According to the Hanoi People’s Committee portal, the prime minister issued Decision No. 588 approving the revised investment policy for the Nhon-Hanoi Station urban railway.
The project’s completion has been pushed back to 2027, instead of 2020, as proposed by Hanoi City. Therefore, VND1,916 billion will be added to the project cost, taking the total to VND34,826 billion.
The Hanoi Metropolitan Railway Management Board said that the Nhon-Hanoi Station metro line is a big and complicated project as it needs new foreign technology and standards. Thus, the project has faced multiple difficulties during its course of implementation, according to the board.
The lengthening of the site clearance procedure, a lack of efficiency in coordination between consultants, investors and departments and agencies, the limited competence of contractors and inconsistencies between the International Federation of Consulting Engineers contract and Vietnamese regulations have been blamed for the increase in investment cost and lengthening of the project.
Bottlenecks in specifications, standards, unit price, material costs and specialized railway equipment are also reasons for the project’s delay, said the board.
The Nhon-Hanoi Station metro line with a length of 12.5 kilometers commenced construction on September 2020 and is projected for completion in 2016. After 13 years of execution, the metro line has yet to be put into commercial operation.
Earlier, the project’s investment cost was revised from VND18,000 billion to over VND34,000 billion.
HCMC will mobilize hundreds of trillion dong for development: City Chairman
Chairman of Ho Chi Minh City People's Committee Phan Van Mai announced in the next five years, Ho Chi Minh City will mobilize hundreds of thousands of billions of Vietnamese dong for the city’s development.
Speaking at the meeting, Chairman of the People's Committee Phan Van Mai informed that in the second quarter of 2023, the economic growth of Ho Chi Minh City reached 5.87 percent while it was 0.7 percent in the first quarter. This is a good sign for the city.
He added that in the first six months of the year, the economic growth of Ho Chi Minh City reached 3.55 percent.
Regarding the new draft Resolution to replace Resolution 54 on specific mechanisms for HCMC development, Mr. Phan Van Mai emphasized that mechanisms and policies in the draft will help Ho Chi Minh City remove difficulties and obstacles; thereby, they will promote the potential and advantages of the southern metropolis.
On the other hand, if Ho Chi Minh City is successful in the implementation of specific mechanisms and policies, the results will become practical experiences in the process of law development.
The mechanisms and policies in this draft help Ho Chi Minh City focus on mobilizing financial resources, according to the Chairman of the city People’s Committee. Moreover, he said that if the city does well, in the next 5 years, Ho Chi Minh City can mobilize hundreds of thousands of billions of Vietnamese dong for development.
In respect of mechanisms and policies on science, technology and innovation development, Mr. Phan Van Mai assessed this as a huge potential and a new driving force for the city’s development and the country. Along with that, the mechanism of decentralization, organizational structure and personnel for Ho Chi Minh City and Thu Duc City helps the two cities to be proactive in solving problems faster and more effectively.
Chairman Mai emphasized the early and proactive implementation of the mechanisms and policies to achieve the best results if the new Resolution is approved. Ho Chi Minh City will focus on advising the Government so that the Resolution will be soon completed. The People's Committee of Ho Chi Minh City has also issued a plan of standards to implement the new Resolution.
HCMC ready for implementing new Resolution of the NA
Chairman of the Ho Chi Minh City People's Committee Phan Van Mai on May 19 signed the assignment plan in preparation for the implementation of the new Resolution when it is approved by the National Assembly. The assignment plan divides tasks into groups including a group of work that should be completed in the quarter and submitted to the People's Council in July.
The City is also ready to carry out the city Party Committee’s Directive on the implementation of the Resolution meanwhile the People's Committee has also prepared a comprehensive plan for the fulfilment of the Resolution. After the new Resolution is approved by the National Assembly at the end of this June, the city Party Committee will hold a conference about the implementation of the Resolution.
The city has well prepared for performing the remaining 8 works to carry out policies and mechanisms such as allocating capital for the poverty reduction program; stimulus programs; average income increase; regulations on the number, organization of apparatus, functions and tasks of the agencies of Thu Duc City; regulations on procedures for changing the use purpose of rice land under 500ha.
Ho Chi Minh City will also soon submit the regulations on using the budget to perform the tasks of compensation and site clearance and documents for the establishment of the Department of Food Safety to the City People's Council.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
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