The southern province of Kien Giang posted a 7-percent increase year-on-year in export revenue for the first five months of this year.

According to the province’s Department of Industry and Trade, the province earned over 326 million USD in the five-month period from exports. Of the figure, rice brought home 104.4 million USD, seafood 104.8 million USD, leather and footwear 62.9 million USD, fruit and vegetables 4.37 million USD, and other products 49.45 million USD.

For-export processing enterprises in the province said they have faced numerous difficulties since the beginning of the year due to the impact of the COVID-19 pandemic, including a shortage of materials and labour, rising transport and production costs, and technical barriers in export markets.  

The provincial administration will continue to boost trade promotion to seek more markets and partners for local exports, bolster cross-border trade at local international border gates and popularise free trade agreements to which Vietnam is a member among local exporters.

Vietnam, EU seeks stronger agricultural cooperation

Ambassador Nguyen Van Thao, Permanent Representative of Vietnam to the EU, has met with EU Commissioner for Agriculture Janusz Wojciechowski to discuss ways for fostering agricultural cooperation between the two sides.

At the meeting on June 1, Ambassador Thao said agricultural cooperation is one of the pillars in bilateral ties, especially when the world is facing a growing challenge to food security.

Vietnam and the EU hold great potential for cooperation in this area as the latter is working to diversify supply sources and guarantee food security while the former boasts agricultural strength and considerable advantages generated by the bilateral free trade agreement (EVFTA), he noted.

The ambassador called on the EU to increase sharing information and experience; help Vietnam build policies and models for green, modern, and efficient agriculture along with enhancing its capacity in agriculture production through assistance in developing infrastructure, human resources, technology transfer; and invest more in hi-tech and smart farming, as well as agricultural processing for export in Vietnam.

He also suggested the EU assist Vietnam in adapting to climate change, mitigating its impacts on agriculture, and realising commitments on emissions reduction and environmental protection, especially those made at the 26th UN Climate Change Conference (COP26) last year.

Wojciechowski said Vietnam is the first developing country to ink a new-generation FTA with the EU, which shows the bloc’s high valuation of Vietnam’s potential.

The EU views Vietnam as an important partner in agriculture with great potential for expanding bilateral collaboration, he said, adding he will lead an agricultural business delegation to visit the country to promote agricultural links, not only in trading farm produce but also many other aspects.

Updated edition of Vietnamese seafood company map to be released

The Vietnam Association of Seafood Exporters and Producers (VASEP) will release an updated edition of the map of Vietnamese seafood companies in July, with some 5,000 copies.

The new edition of the map will provide up-to-date information and data about Vietnamese seafood producers, such as business name, contact information, website, EU code, certification and list of products.

As the COVID-19 pandemic has caused major impacts on the seafood industry over the last two years, the new map will help buyers and foreign markets get updates about and gain greater insights of the sector and the Vietnamese producers, according to VASEP.

The map will be distributed at numerous international trade fairs across the globe, including China Fisheries & Seafood Expo, Japan Seafood &Technology Expo, Fine Food, Vietfish and events in Boston (US), Brussels (Belgium), or Dubai, among others.

It will also be provided to Vietnamese trade offices overseas, foreign trade offices in Vietnam and VASEP partners./.

Border province to set up virus-free zones to aid exports

The local authority in the northern province of Lang Son has set up several COVID-19-free zones in an attempt to ensure the flow of goods across the Vietnam-China border stays efficient and uninterrupted.

The objective is to help exports, especially fresh fruits, and agricultural products, to spend as little time as possible at the border gate, according to Nguyen Dinh Dai, director of the provincial department of industry and trade.

Dai said it's important to set up operations early as harvest seasons are fast approaching for major Vietnamese fruit exports including jackfruit, lichi, dragonfruit, and mango.

According to customs officers at the Tan Thanh Gate on the Vietnam-China border, trucks loaded with fresh fruits are among the first ones to be cleared in the morning to ensure the quality and freshness of their cargo.

Vu Quynh Trang from the Lang Son-based Hong Hai Import-Export SJC. said local authority and customs office have been working closely with her company to shorten the time required to clear on both sides of the border.

The border gate has been working 24/7 with officers joining with local law enforcement staff to minimise traffic jams and bottlenecks. Dong Dinh Yen, deputy commander of Tan Thanh Border Patrol said his unit has ramped up inspection and security measures in recent weeks while assisting businesses and truckers.

Information portal helps connect Vietnamese businesses

The Department of Enterprise Development, under the Ministry of Planning and Investment, has launched a business information portal to provide information and support services for businesses in Vietnam, especially small and medium enterprises.

In line with the new era's digital transformation trend, the portal, at https://business.gov.vn, is a modern and intelligent digital platform, providing information about governmental mechanisms and policies to support businesses, training documents, business guides, and business connections for the local and international business communities.

The portal also provides timely, accurate, and high-value information about policies and support programs from the Government, helping businesses easily search, look up to participate and benefit from business support packages.

In addition, the business information portal will play the role of connecting businesses with the Government, between businesses and enterprises, between small and medium enterprises with leading enterprises or with FDI enterprises.

More specifically, the portal will bridge Vietnamese businesses and the international community through the ASEAN Small and Medium Enterprises Gateway (ASEAN Access - aseanaccess.com), creating opportunities for Vietnamese enterprises to expand markets to Southeast Asia and Asia.

Nearly 950 million USD in support package disbursed: Deputy PM

Some 22 trillion VND (948.2 million USD) in the 347-trillion-VND policy package under the 15th National Assembly (NA)’s Resolution 43 has been disbursed, Deputy Prime Minister Le Minh Khai told the legislature's ongoing third session on June 2.

Reporting the legislature on the implementation of the Programme on Socio-economic Recovery and Development, Deputy PM Khai said that the disbursement is a very important premise to believe that this support package will be implemented well in the coming time.

Regarding the disbursement of public investment, Minister of Planning and Investment Nguyen Chi Dung said that it takes time to disburse public investment, as it is affected by not only the Law on Public Investment, but also the Law on Construction, the Land Law, the Bidding Law, and the Mineral Law, among others.

He stressed the importance of reviewing provisions of the Law on Public Investment and other relevant laws and decisions.

The Government is taking drastic measures to boost disbursement, Dung said, expressing his hope that deputies and delegations of deputies will strengthen supervision over ministries, sectors and localities to help speed up the process.

Vietnam, Cambodia target US$10 billion bilateral trade in 2022

The first quarter of this year witnessed total two-way trade turnover between the nation and Cambodia reach nearly US$3.4 billion, with the figure anticipated to reach over US$10 billion for the entire year.

Both sides officially established diplomatic relations 55 years ago in 1967, marking a new chapter in the relationship and creating momentum to ramp up co-operation, especially in the field of economics and trade. This can be viewed as a bright spot in bilateral relations, thereby contributing to the two countries’ development and prosperity.

Despite facing the negative impact of the COVID-19 pandemic and its ongoing complicated developments since 2020, the two countries have made all-out efforts to cope with the pandemic. As a result, bilateral trade turnover has recorded many impressive results.

According to data provided by the General Department of Vietnam Customs, total two-way trade turnover reached more than US$5 billion in 2020, and over US$9 billion in 2021, with this figure is projected to hit US$10 billion this year.

Currently, the nation has roughly 190 valid investment projects in Cambodia, with a total registered capital of nearly US$3 billion, duly ranking fifth among countries investing in the neighbouring nation.

Tourists to Phu Quoc surge despite low season

The number of visitors to Phu Quoc island city in the Mekong Delta province of Kien Giang has increased sharply over recent months despite the city entering a lull in the tourist season due to heavy rains.

According to statistics compiled by the Kien Giang Department of Tourism, the locality welcomed more than 2.8 million visitors during the five months of the year, making up over 50% of the annual plan and earning a tourism revenue of more than VND 2,200 billion.

Most notably, during national holidays such as National Reunification Day on April 30 and May Day on May 1, the province received over 296,000 visitors, a rise of 167.7% against the same period from last year.

According to a study conducted by Vietravel Airlines, the Ho Chi Minh City - Phu Quoc air route attracts the majority of visitors in the summer, with the occupancy rate reaching over 80% from May to August.

Vietnamese mission in Geneva attends Asian Harvest Festival

The Asian Ambassadors' Wives Association in Geneva organised the Asian Harvest Festival on June 2 at the headquarters of the World Intellectual Property Organization (WIPO), with the occasion featuring the participation of missions of Asian nations.

Participants included the Permanent Delegation of Vietnam to the UN, the WTO, and other international organizations based in Geneva

During the event, the Vietnamese mission in Geneva introduced several national costumes and typical Vietnamese agricultural products such as rice, coffee, tea, cashew nuts, confectionery, and fruit. It also donated gifts for the lucky draw and arranged booths in which to introduce apparel products, such as the ao dai, the national long dress, silk scarves, fine art products, and souvenirs.

The Vietnamese booth attracted plenty of visitors and had the honour of welcoming a visit by Tatiana Valovaya. director general of the UN Office in Geneva, Daren Tang, director general of the WIPO, and his wife.

This is widely viewed as an opportunity for the Vietnamese mission to briefly introduce the long-standing wet rice civilization with 70% of the population living in rural areas, whereby harvest festivals have become a larger part of daily life for the Vietnamese people.

De Heus expands investment into Vietnamese strategic market

De Heus group of the Netherlands has continuously been seeking to expand its investment in the Vietnamese market by partnering with Hung Nhon Group to develop the DHN Gia Lai High-Tech Agricultural Complex in the central highlands province of Kon Tum.

Boasting a total investment capital of US$65 million, the project will specialize in swine gene selection and production, automatic slaughtering, organic animal feed production, and organic fertiliser production.

Koen De Heus, CEO of Hoang Gia De Heus Group, emphasized that the main purpose of the establishment of the high-tech agricultural complex is to create high-quality livestock products under a closed chain towards a high-tech and modern agricultural sector, all of which will fall in line with the Vietnamese Government’s policies.

Vu Manh Hung, chairman and general director of Hung Nhon Group, said the complex has contributed to creating a modern livestock model, accelerating economic development, boosting social security in Gia Lai, and generating jobs for nearly 300 local workers.

Last year, the two companies completed construction on the site and put the complex of DHN high-tech agricultural application project in Dak Lak province into operation.

They also put into operation the Bel Ga Tay Ninh incubator factory in Tay Ninh province that received a total investment of US$8.7 million.

Viet Nam to boost trade with Malaysia post-pandemic
     
Viet Nam and Malaysia have great potential to promote trade and investment with Malaysia being one of the most important importers of Vietnamese goods in Southeast Asia in the post-pandemic period, a HCM City official said.

Speaking at a meeting on June 2, Tran Phu Lu, deputy director of the HCM City Investment and Trade Promotion Centre (ITPC), said key Vietnamese exports to Malaysia include machinery and equipment and their parts, computers, electronics and components, steel, petroleum, and chemicals.

The Regional Comprehensive Economic Partnership (RCEP), the global trade deal which took effect early this year, would help boost bilateral trade, he added.

Last year, Malaysia was the ninth largest trade partner for Viet Nam.

Viet Nam was the 11th largest trade partner and seventh largest export market for Malaysia with their trade rising by nearly 25 per cent to $11.8 billion in 2021.

According to the General Department of Customs, the figure for the first four months of this year was an estimated $5 billion, up 15 per cent year-on-year.

Viet Nam’s exports to Malaysia were worth nearly $1.7 billion in the first four months, up 12 per cent year-on-year.

The Malaysian Halal market was worth $3.1 billion last year and is expected to grow to $5 billion by 2030, and Viet Nam could export this product to the country, according to Lu.

Malaysia currently ranks eighth out of the 140 countries and territories that have invested in Viet Nam, with 664 projects worth $13 billion as of the end of 2021.

Viet Nam has 21 projects in Malaysia with registered capital of $853 million, the ninth biggest of its 78 overseas investment destinations. 

Retail sales of goods, services up in May
     
Viet Nam saw strong growth in its revenue from retail sales of goods and services in May 2022 due to an increase in tourism demand after the pandemic is bascially under control and the 31st SEA Games was successfully held in the country in mid-May.

According to the General Statistics Office (GSO), the nation's total revenue from retail sales of goods and services surpassed VND477 trillion (US$20.7 billion) in May, up 4.2 per cent on the month and 22.6 per cent on the year. The growth on year reached a higher rate in the years before the pandemic.

According to GSO, the total revenue from retail sales of goods and services surpassed VND2.25 quadrillion in the first five months of 2022, up 9.7 per cent year-on-year.

The revenue from retail sales of consumer goods increased by 9.8 per cent over the year, with revenue surging by 13.1 per cent for food, 12.8 per cent for cultural and educational products, and 3.1 per cent for transport.

Meanwhile, the revenue from accommodation and catering services in the first five months rose by 15.7 per cent. The high demand of domestic tourists and the SEA Games 31 helped revenue in May increase by 69.3 per cent over the same period last year.

Localities having growth in the revenue from accommodation and catering services were Can Tho (39.7 per cent), Ha Noi (34.2 per cent), Dong Nai (22.6 per cent), Quang Ninh (17.3 per cent), Hai Phong (10.5 per cent), Binh Duong (11.4 per cent) and Da Nang (11.2 per cent).

The strong recovery of tourism activities and the 31st SEA Games increased the travel and tourism revenue in the first five months of 2022 by 34.7 per cent over the same period last year.

Banks boost up ESOP to retain good employees, increase capital
     
Many banks have recently announced they will issue a large number of shares under the employee stock ownership plans (ESOP) to retain good employees and increase capital.

On May 30, 2022, the Vietnam International Commercial Joint Stock Bank (VIB) was the latest bank to release a plan to issue more than 10.9 million ESOP shares at the price of VND10,000 per share. The shares are limited to transfer for only one year. VIB closed at VND26,500 per share on Wednesday on the HCM City Stock Exchange (HoSE).

The Board of Directors of Vietnam Prosperity Commercial Joint Stock Bank (VPBank) have recently approved a plan to sell ESOP shares to the bank’s employees. Specifically, the bank will offer 30 million treasury shares to employees at an expected price of VND10,000 per share, against the listed price of VND30,850 on the HoSE on Wednesday. The maximum number of shares to be issued to foreign employees is 10 million shares, accounting for 33.33 per cent of the total number of shares in this issuance.

Similar to VPBank, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is also preparing to issue more than 6.3 million ESOP shares, equivalent to more than 0.18 per cent of the bank’s outstanding shares at the price of VND10,000 per share. In which, 5.3 million shares will be issued to Vietnamese employees and 967,367 shares will be issued to foreign employees.

Previously, Techcombank issued six million ESOP shares to 237 employees in September 2021. In 2020, 2019 and 2018, the bank offered 4.76 million shares, 3.5 million shares and 17 million shares, respectively, to its employees at the price of VND10,000 per share under ESOP plans.

At the 2022 annual general meeting of shareholders recently, An Binh Commercial Joint Stock Bank (ABBank) approved the plan to issue 5 million ESOP shares at the price of VND10,000 per share. Previously, by the end of 2021, the bank issued more than 11 million ESOP shares to its employees at the price of VND13,000 per share.

Many other banks such as Tien Phong Commercial Joint Stock Bank (TPBank), Maritime Commercial Joint Stock Bank (MSB) and Saigon Hanoi Commercial Joint Stock Bank (SHB) also expect to issue 5.2 million, 12.25 million and 45.1 million ESOP shares in 2022, respectively.

Banks diversify income sources to reduce dependence on credit
     
Banks have been promoting a target of diversifying income sources to reduce dependence on credit.

The financial statements in Q1 2022 of many banks published recently showed that besides the rapid growth of credit, revenue from services contributed significantly to the banks’ positive business results in the period.

Typically, in Q1 2022, the Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) gained VND2.58 trillion of net profit from services and VND1.52 trillion of net profit from foreign exchange trading.

For Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), the service revenue in Q1 2022 reached VND1.79 trillion and VND1.53 trillion, up 35 per cent and 83 per cent compared to the same period of last year, respectively.

Many other private joint-stock banks such as Vietnam Prosperity Commercial Joint Stock Bank (VPBank), HCM City Development Commercial Joint Stock Bank (HDBank), Military Commercial Joint Stock Bank (MB), Asia Commercial Joint Stock Bank (ACB), Vietnam International Commercial Joint Stock Bank (VIB), Maritime Commercial Joint Stock Bank (MSB) and Saigon Hanoi Commercial Joint Stock Bank (SHB) also recorded many positive results from service activities in Q1 2022.

MB, for example, saw an increase of 4.8 per cent to nearly VND1.12 trillion in the profit from services thanks to a large contribution from bancassurance channel. The bank’s profit from foreign exchange trading grew by 98 per cent to VND467 billion.

Meanwhile, MSB also achieved more than VND335 billion of net profit from service activities in Q1 2022, up nearly 175 per cent over the same period of 2021, mainly thanks to the segments of credit cards, insurance services and payment activities.

For VIB, the non-interest income was VND650 billion, contributing 16 per cent to the bank’s total operating income.

Social housing projects gain traction as giant developers step in
     
Social housing projects that developers were hesitant to invest in due to capped profit suddenly gained traction as giant developers recently announced plans to step into the segment.

Notably, Vinhomes, a member of Vingroup, said at its annual shareholder meeting in mid-March that Vinhomes would develop social housing projects under the brand Happy Home for low-income earners.

Vinhomes plans to develop 500,000 social housing units in the next five years. The first projects would be built in the outskirts of Ha Noi and HCM City at the prices from VND300 million to below VND1 billion each and are expected to be handed over to buyers in June 2023.

Him Lam Group recently announced the social housing project Thuong Thanh, which covers more than 60,000sq.m in Long Bien District, Ha Noi. Each department will have areas ranging between 37sq.m and 77sq.m and prices from VND550 million per unit. Another social housing project of Him Lam was Him Lam Phuc Loi, also in Long Bien, which will supply about 3,000 apartments to the market.

Early this year, Hung Thinh Group, Dong Tam Group and Truong Thanh Furniture Corporation announced an affordable housing initiative expected to solve the increasing housing demand of low-income earners and help them settle down.

The initiative will be implemented in HCM City, Long An, Binh Duong and Dong Nai first with 100,000 units with the prices of VND25 million in HCM City and below VND20 million in other areas.

Hoa Binh Group plans to develop 10,000 social housing units in Hoang Mai District, while Thang Loi Group targets building about 10,000 apartments below VND1 billion each on the market this year.

For many years, social housing projects did not attract developers because of low profits, around 10-15 per cent, only equivalent to one-third of the profits when they built commercial housing projects, property expert Nguyen Nhat Long said.

According to Nguyen Vinh Quynh from Minh Bach Law Firm, the shortage of affordable homes alongside skyrocketing prices means social housing projects are considered a “cool breeze” to soothe the housing market. However, how to build an apartment for a few hundred million dong remains a question.

Vuong Quoc Toan, chairman of Lan Hung Group, said that the Government should help the development of social housing projects.

Toan said that the policy of requiring developers to spend 20 per cent of the land for commercial housing projects for social housing development did not work effectively in reality, which even caused construction delays.

According to Nguyen Xuan Quang, chairman of Nam Long Group, social housing projects and affordable homes needed breakthroughs in policies and administrative procedures.

Da Nang, Quang Nam hold events to kick-start tourism

The Routes Asia Development Forum will be held in Da Nang City on June 4-9, with the participation of airlines in Asia and Europe, including British Airways, Lufthansa Group, Qantas Airways Limited, Air New Zealand, Air India, Indigo, Japan Airlines, All Nippon Airways and Malaysia Airlines.

Over 200 airports and air service businesses will participate in the event.

An exhibition on air service, aviation and aerospace industries, and a seminar on Viet Nam case study will be held at the city’s Exhibition and Events Centre on June 6-8.

Da Nang was booming with 48 international air routes with 462 flights per week, while 11 domestic routes operated with 665 flights per week before COVID-19 disrupted or suspended most travel routes.

Nine airlines have planned to reoperate their regular flights on 10 air routes connecting Da Nang with Thailand, Malaysia, Singapore, South Korea, Japan and India.

Singapore Airlines and Thai VietJet were the two first airlines operating the post-COVID-19 flights from Da Nang to Singapore and Bangkok from March.

Da Nang International Airport is designed to handle 28 million passengers and 200,000 tonnes of cargo by 2030.

Meanwhile, neighbouring Quang Nam Province – the host of the National Tourism Year 2022, has begun its promotion programmes for summer vacations and year-end events.

The province inked cooperation agreements with two budged airlines – VietJet Air and Bamboo Airways – for 2022-26 while boosting promotion programmes with 17 local travel agencies for luring tourists to destinations in Quang Nam between June and September.

Da Nang: trade-business-investment activities in full swing this June
     
The central city of Da Nang will hold a series of economic, trade, and investment events in June, most importantly the Da Nang investment forum on June 26, said Ho Ky Minh, deputy chairman of the municipal People Committee at a recent press conference.

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

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

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

Boeing seeks new cooperation opportunities in Vietnam

A business mission led by Malcom An, senior managing director at Boeing, on June 1 worked with the Vietnam Air Traffic Management Corporation (VATM), seeking new business cooperation opportunities.

At the meeting, An introduced the group’s development and cooperation strategy in Asia and Vietnam. According to An, the local aviation market will recover in 2022, while the global one will recover and grow in the years to come.

The Boeing representative said that the company will strengthen comprehensive cooperation with Vietnam in the aviation industry. Accordingly, while intensifying cooperation with government agencies and airlines, Boeing will strengthen cooperation with Vietnam in air traffic management with VATM being a representative.

An said that in the upcoming time, Boeing will send a group of experts to work on details directly with the Civil Aviation Authority of Vietnam and VATM.

Netherlands and UNDP quicken Vietnam’s circular economy transition

The Netherlands and the UNDP will execute a circular economy capacity building programme for businesses in Vietnam.

The programme for small and medium enterprises, financed by the Netherlands, the UNDP, and other partners, aims to deliver knowledge on the circular economy, government policies on circular economy development, and the European-Vietnam Free Trade Agreement's requirements for sustainable trade.

The overall aim is to inspire and deliver practical guidelines for the transition towards circular economy principles and implementation. The programme will be jointly executed by the Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE) and the Environmental Economic Policy Institute under Vietnam’s Ministry of Natural Resources and Environment (MoNRE), the Hue Innovation Hub, the Institute for Circular Economy Development, and the Saxion University of Applied Sciences from the Netherlands.

The second circular economy capacity building programme will be organised in June.

Danang set to break ground on Lien Chieu port in Sept

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

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

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

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

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