Vietnamese enterprises pumped nearly $340 million of total investment into new and supplemental capital ventures abroad in the first five months, down 38 per cent year-on-year, the latest report by the Foreign Investment Agency (FIA) revealed.

Prime Minister Pham Minh Chinh attended the opening ceremony of FPT Software's new office in New York City in May. 

Vietnamese enterprises pumped nearly $340 million of total investment into new and supplemental capital ventures abroad in the first five months, down 38 per cent year-on-year, the latest report by the Foreign Investment Agency (FIA) revealed.

Despite a decline in total investment, their investments into new projects topped over $293 million, double that in the same period last year, thanks to five new projects of Vines Energy Solutions JSC in the US, Canada, France, Germany and the Netherlands, with registered capital of $34.7 million each.

During the five months, the firms also poured an additional $45 million into operating projects, equivalent to 11 per cent of the figure seen in the same period last year, the FIA said.

The plunge in additional investment in five months of 2022 was attributable to the fact that many large-scale projects in the same period last year raised their investments, such as a Vingroup project in the US which increased capital by $300 million; an Indochina Rubber Investment and Development Co project in Cambodia which added $76 million into its operations in the market and the $32 million adjustment of the VinFast project in Germany.

According to the FIA, 19 countries and territories received Vietnamese investment during the period. Of them, Laos took the lead with four new capital expansion projects worth a combined $64 million, equal to 19 per cent.

Singapore came second, luring in $39 million, or 11.5 per cent. The US, Germany and the Netherlands were the runners-up.

As of May 20, Viet Nam had 1,555 operational projects abroad, with a total investment of $21.6 billion, with 139 invested by State-owned enterprises, making up 53.8 per cent or nearly $11.6 billion of the total investments.

The majority of its overseas investments came towards to mining sector, 32.3 per cent, and the agro-forestry-fishery sector, 15.8 per cent. Countries with the largest investment from Viet Nam were Laos (24.8 per cent), Cambodia (13.6 per cent) and Venezuela (8.5 per cent).

Vietnamese fruit finding favour in Japan

The Vietnam Trade Office in Japan, in cooperation with exporters, held a wide range of activities to promote Vietnamese lychee and other fresh fruit during the Vietnam Festival in Japan, which took place in Tokyo on June 4 and 5.

Many types of tropical fruit from Vietnam have made inroads into Japan, including bananas, mangos, dragon fruit, lychees, and coconut. Lychee first entered Japan in June 2020 and immediately became popular among Japanese and overseas Vietnamese. In 2021 alone, more than 400 tonnes of the fruit were sold.

At the festival, several companies introduced the journey of Vietnamese lychee to Japan, helping people gain a better insight into the quality management process for the fruit before it is exported.

First held in 2008 on the occasion of the 35th founding anniversary of diplomatic ties between Vietnam and Japan, the Vietnam Festival in Japan is one of the biggest annual festivals in Tokyo. It not only helps promote Vietnamese culture and cuisine among Japanese people but also contributes to strengthening mutual understanding between people from the two countries.

Domestic firms to receive consultations to strengthen export to RCEP markets

Vietnamese businesses will be provided with consultation on boosting their exports to markets joining the Regional Comprehensive Economic Partnership (RCEP) during a session to be held by the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade in collaboration with Vietnamese Trade Offices in the countries on June 8.

The session will be held in the southern province of Binh Duong in both in-person and online formats via Zoom and Vietrade’s Facebook fanpage.

At the session, Pham The Cuong, Vietnamese Trade Councilor in Indonesia, Tran Le Dung from the Vietnamese Trade Office in Malaysia and Nguyen Thu Huong from the Vietnamese Trade Office in Australia will provide information on the farm produce and food market in the countries, as well as the regulations and conditions for Vietnamese products to enter the markets.

The leader of the Import-Export Association of China's Chongqing city will give necessary information to Vietnamese firms when exporting food products to China.

The session is one a series of the 30 similar events held by the Vietrade in 2022 to support domestic firms to understand import-export regulations, standards, conditions in foreign markets as well as international commitments on imported and exported products. It is expected to help the firms improve their competitiveness in the international market and overcome difficulties from COVID-19.

Routes Asia 2022 helps elevate Da Nang’ role

By hosting Routes Asia 2022, the most prestigious regional aviation development forum, Da Nang hopes to affirm its position as Asia’s leading event destination and also demonstrate its strong determination to resume the aviation network and tourism economy, Le Trung Chinh, chairman of the municipal People’s Committee, said on June 6.

At the opening ceremony of the event, co-hosted by Informa Routes company of the UK, Da Nang municipal People’s Committee and Duy Anh Trading JSC – IPP Travel Retail, the official said that before the outbreak of the COVID-19 pandemic, Da Nang was a prominent destination in Asia, hosting 39 international routes with 536 flights per week. The disruption of international flight routes due to the pandemic has caused difficulties for its aviation and tourism industries and, therefore, resuming the international flight network and creating favourable conditions for tourists, businesses and investors to return to Da Nang are considered as prerequisites for the revival of the city’s tourism and socio-economic development, he stress.

Routes Asia 2022, which attracted the participation of over 500 domestic and foreign delegates representing over 200 leading airlines from 42 countries and territories around the world, aims to speed up the resumption of the aviation industry and its services in the Asia-Pacific region.

More than 1,500 meetings will take place at the three-day event between stakeholders.

Discussions will focus on policies to support the route network and solutions to accelerate the aviation industry’s recovery. The impact of the COVID-19 pandemic on consumer behavior and travel trends as well as the most effective strategies to stimulate market demand will also be put on the table.

Sharp passenger, goods hike in aviation

As many as 40.7 million passengers, including 1.8 million foreigners, have gone through airports across the country so far this year, representing year-on-year rises of 56.8 percent and 904.6 percent, respectively, according to the Civil Aviation Authority of Vietnam (CAAV).

Meanwhile, domestic and foreign flights from and to Vietnam carried an estimated 765.000 tonnes of goods, up 30.6 percent from the same period last year.

Domestic carriers served 20.1 million passengers in the reviewed period, up 56.1 percent compared to the same period last year. Of them, 667,000 were foreigners, up 1.033 percent, while the increase of domestic travelers was 51.8 percent.

Airports across the country are expected to serve 87.8 million passengers and handle 1.5 million tonnes of goods in 2022, up 190 percent and 5 percent compared to 2021.

Top 50 public companies of 2022 announced

Vietnam Report JSC has officially announced the Top 50 prestigious and effective public companies of 2022 (VIX50).

The top ten this year are: Vinhomes JSC (VHM), Hoa Phat Group (HPG), Masan Group (MSN), Mobile World Investment Corporation (MWG), Vietnam International Commercial Joint Stock Bank (VIB), Vietcombank (VCB), Duc Giang Chemical Group (DGC), Techcombank (TCB), MBBank (MBB) and Asia Commercial Joint Stock Bank (ACB).

All these companies are traded on the Ho Chi Minh Stock Exchange (HoSE).

Last year witnessed a spectacular growth of the country’s stock market with the VN-Index setting a record peak of over 1,500 points, an increase of 35.7 percent year-on-year. The gain was higher than the average growth rate of 15.2 percent in the last five years.

The stock market also recorded many positive changes in quality with the explosion of liquidity, market capitalisation and new investors. The complicated development of the COVID-19 pandemic that caused serious consequences has become a strong catalyst to direct idle cash flows, thereby expanding the growth momentum that has appeared since 2020.

With the achievements in 2021, it is entirely possible to expect greater growth in the stock market this year, Vinh emphasised. However, it should be noted that in the past, when the market rallied for a long time along with the sharp increase of cash flow from retail investors, there were always many unpredictable risks.

Experts said that due to rising inflation, many countries have tightened monetary policies along with the conflict between Russia and Ukraine, but the Vietnamese economy is still overcoming difficulties and gradually regaining a positive recovery momentum. Recent fluctuations in the global market are also opportunities for Vietnam to strengthen its internal strength and attract investments in the new globalisation trend.

Huge potential for Vietnam to promote blue economy

Blue sea economy is expected to serve as an important motivation and premise for socio-economic development, environmental protection, defense and security assurance, and promoting foreign relations and international cooperation.

Vietnam is a coastal state with a sea area three times that of land, including more than 3,000 islands and two offshore archipelagos - Hoang Sa and Truong Sa. The country boasts a coastline of 3,260 km, with 1 km of coastline for every 100 km2 of land.

The population of coastal localities accounts for more than 50 percent of the country's, with most of the labourers work in sea-related occupations. The contribution of 28 coastal provinces and cities to the nation’s GDP has exceeded 60 percent.

Vietnam's sea is considered as one of the 10 richest centres of marine biodiversity in the world. The waters and islands in the country are home to 12,000 species of organisms living in more than 20 typical ecosystem types, belonging to six marine biodiversity regions.

There are about 35 types of minerals with different reserves in waters of the country, belonging to the groups of fuel, metal, construction material, precious stone and liquid mineral.

Large reserves of oil and gas are distributed in sedimentary basins on the continental shelf and in Hoang Sa and Truong Sa archipelagos.

Vietnam has strengthened investment for long-term and sustainable oil and gas industry development.

Large sea areas hold potential for developing offshore wind power, which is expected to significantly contribute to the country’s socio-economic development; and the implementation of the Paris Agreement on climate change and Vientam’s commitment to net zero emissions by 2050.

With more than 120 beaches across the country, including 20 meeting international standards, Vietnam has also a great potential for tourism development.

To move towards a blue sea economy, experts said Vietnam needs to pay special attention to conserving biodiversity, protecting the environment and expanding ecosystem services to enrich the potential for economic activities.

Vietnam’s aquatic product exports to China to grow this year

Vietnam’s aquatic product exports to China are expected to rise positively this year, said Nong Duc Lai, Commercial Counsellor at the Vietnamese Embassy in China.

He attributed it to the fact that there is still room to grow for Vietnamese aquatic product exports in the Chinese market.

The demand of the 1.4-billion-people market will recover quickly when restrictions on entertainment services and tourism activities are loosened after the COVID-19 pandemic is put under control, Lai said.

Vietnamese enterprises who involved in this sector are rapidly responding to information and market needs and meeting regulations of the Chinese market. Recently, China Customs has granted codes for many Vietnamese enterprises to enable them to participate in exporting aquatic products to this market, he said.

The exports of aquatic products recorded a year-on-year increase of 117.6 percent in the first four months of this year, accounting for nearly 9 percent of China’s total aquatic product imports.

According to the official, some batches of aquatic products imported from Vietnam, including tra fish (pangasius), to China were found to contain SARS-CoV-2 virus on their packagings. To tackle the issue, the Vietnamese Trade Office in Beijing have regularly maintained contact with relevant units of China Customs to exchange information and notify domestic authorised agencies to minimise damage to enterprises.

Da Nang promotes potential in tourism, aviation, logistics

The central city of Da Nang on June 5 held a forum themed "Da Nang- Potential investment destination in Asia" within the framework of the ongoing Asian route development forum (Route Asia 2022), drawing 80 delegates representing international airlines, travel firms and tourism groups and associations.

Da Nang has been one of the top localities of Vietnam in economic scale and development level, he said, noting that in the 2016-2019 period, the city’s gross regional domestic product (GRDP) growth reached 7.79 percent per year. In the first six months of 2022, the figure is estimated at 7.23 percent.

Good signs of recovery have been seen in the city’s tourism activities, said Son, adding that the city has connected with six airlines and reopened four direct air routes with Singapore, Bangkok (Thailand), Kuala Lumpur (Malaysia) and Incheon (the Republic of Korea). The city has also hosted many large-scale cultural and tourism activities, he said.

At the forum, participants discussed the potential of Da Nan tourism, the planning schemes of logistics centres in the city, infrastructure capacity of the Da Nang International Airport, and projects that are calling for investment in the Da Nang High Tech Park in the fields of aviation and aerospace.

Domestic firms to receive consultations on wooden furniture export to Canada

The Ho Chi Minh City Handicraft and Woodworking Association (HAWA) plans to organise a session to give consultations to domestic businesses on exporting furniture and interior decorating products to Canada, a promising market for Vietnam, on June 7.

According to experts, the high demand and positive impacts from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are factors making Canada a market with great potential for Vietnamese furniture and interior decorating products.

According to marketinsightsreports.com, Canada's home furniture market is forecasted to expand 6 percent each year in the 2021 – 2025 period.

Statistics showed that in 2021, Vietnam's export of wooden furniture to Canada reached 416.4 million USD, up 27.4 percent year on year and accounting for 16.7 percent of Canada’s total spending on the product in the year.

Currently, Vietnamese products have been available in major supermarket chains in Canada such as COSTCO, IKEA and LEON’S. Particularly, conquering the Canadian market will also open up chances for Vietnam to increase exports to other Northern American markets.

At the consultation session, Vietnamese Trade Councilor and head of Vietnamese Trade Office in Canada Tran Thu Quynh will brief participants on the current market situation and challenges in the Canadian market, as well as the support that the office can given to Vietnamese exporters.

Meanwhile, Pham The Huy, First Secretary at the Vietnamese Trade Office in Canada will highlight some regulations, standards and conditions for exporting wooden furniture and home decorates to Canada.

Officials clarify measures to control credit in risky areas, petrol prices

The State Bank of Vietnam (SBV) has been consistent in its policy to strictly control the credit flows into areas with high risks such as real estate and securities, and the policy will continue to be implemented in 2022 and following years, said SBV Deputy Governor Dao Minh Tu at a regular Government press conference on June 4.

Tu noted that at the same time, the SBV has always encouraged credit provision for areas that help facilitate economic development, including low-cost and social housing projects and houses for workers.

He reported that the SBV and commercial banks as well as ministries and sectors are working hard to implement the 40 trillion VND credit support package, which provides interest support of 2 percent to enterprises, business households and cooperatives, as part of the Government’s efforts to speed up post-pandemic socio-economic recovery and development. Under Decree 31/2022/ND-CP and Circular 03/2022/TT-NHNN guiding the enforcement of Decree 31, the support is also applicable to low-cost housing projects and housing projects for workers as well as those to upgrade old apartment buildings.

The SBV Deputy Governor said the real estate sector has continued to see normal growth. As of mid-April, the sector had total loan balance of 2.2 quadrillion VND (94.86 billion USD), up 10.19 percent over the figure at the end of 2021, representing a faster growth compared to the same period last year.

Total lending in the real estate sector accounts for 19.16 of that for the whole economy, he underlined.

Meanwhile, regarding the petrol price hike recently, Deputy Minister of Industry and Trade Do Thang Hai said that the ministry is working hard to ensure petrol supply sources for daily life and production activities, and coordinating closely with the Ministry of Finance in managing petrol and oil prices.

Hai pointed to three major solutions to reign in petrol prices, including effectively and flexibly utilising the fund for the stabilisation of petrol and oil prices, adjusting taxes and fees related to petrol and oil, and designing social welfare policies and measures to support businesses.

He noted that the rise in domestic petrol prices at 27.29-47.89 percent recently is lower than the increase in other country.

Deputy Minister of Finance Ta Anh Tuan said that after recent adjustments,  taxes currently account for 29-31 percent in petrol prices and 13.3 percent in diesel oil prices, which are at low levels compared to the world average of about 45-60 percent, excepting for countries with large oil reserves.

Following the NA's adoption of a resolution on cutting of 50-70 percent in environmental protection tax rate on gasoline, oil, grease, the Finance Ministry has submitted to the Government a proposal on reducing the import-export tax rate on petrol from 20 percent to 12 percent.
 
Five first-class fishing ports to be construct by 2030

Vietnam plans to construct five first-class fishing ports for fishery hubs across the country in the 2021-2030 period, according to a plan drafted by the Ministry of Agriculture and Rural Development.

Under the draft, which is being circulated among ministries, sectors and localities for feedback, the five ports will be built in Hai Phong in the north, Da Nang and Khanh Hoa in the centre, and Ba Ria-Vung Tau and Kien Giang in the south.

Priority will be given to developing infrastructure and logistics services at fishing ports and storm shelters.

By 2030, there will also be 160 storm shelters, comprising 30 regional and 130 provincial ones, capable of accommodating some 90,600 fishing vessels.

By 2030 Vietnam will have 176 fishing ports, capable of handling 2.96 million tonnes of fish annually, and 160 typhoon shelters for boats, which can accommodate 90,600 boats in total.

These ports and shelters will cover about 1,038ha of land area and 5,079ha of water surface in total.

Some 60.37 trillion VND (2.6 billion USD) will be needed for infrastructure development at the fishing ports and storm shelters, most of which will be financed by the State budget.

Firms join hands in training human resources

The Vietnam - International Entrepreneurs Connection Club (VIENC) and the American International School Vietnam (AISVN) have signed a Memorandum of Understanding (MoU) on cooperation in training.

Accordingly, the two sides agreed to set up a comprehensive strategic partnership, which will focus on organising consulting activities and AISVN's training programmes, including the International Baccalaureate (IB) programme for students aged 3 to 12 years old.

They pledged to exploit each other's capacity to link teaching, learning and research activities in schools with the practice of research, development, production and business of enterprises in relevant fields.

A survey conducted by the Centre of Forecasting Manpower Needs and Labor Market Information (FALMI) in Ho Chi Minh City (FALMI) shows that the demand for trained workers accounts for 86.47 percent of the total demand for human resources.

It is forecast that businesses in HCM City need about 65,000 – 72,000 labourers in the second quarter of 2022, and the need for skilled labourers in the city is on the rise.

Early-ripening lychees in Bac Giang sold at good prices

Vietnamese lychees are fetching a tasty price at the early season, putting a smile on farmers in the northern province of Bac Giang. Global-standard lychees are even priced at around 1.3 USD per kilo.

This Globalgap lychee orchard is expected to yield some 100 tonnes this season. Although the fruits have not entered the harvest season yet, their owner has received orders with high prices.

Ngo Van Cuong, lychee orchard owner in Tan Yen district, Bac Giang province, said: "The lychees will be harvested from June 1-10. I have recently signed contract with a company, selling the lychees at 1.51 USD per kilo. My fruits will be exported to the US, Japan and Europe."

This batch of early-ripening lychees is being processed and packaged for the Southern market. They are sold at over 1 USD per kilo, much higher than the previous season.

Lychee farmers in Bac Giang province will enjoy a bumper crop this season, with an estimated yield of 180,000 tonnes. Despite high input costs, lychees growers are hoping for stable prices for the whole season.

Interest rate support package has little effect on stock market

As securities and real estate sectors are not on the list to receive support, the 2 percent interest rate support package's positive effects on the stock market are not strong. 

The Government officially issued a decree on interest rate support in loans of enterprises, co-operatives and business households on May 20. 

The application period is in 2020 and 2023, or the package can end sooner when the total loans with interest rate support reach around 40 trillion VND (1.7 billion USD).

After the market benchmark VN-Index plunged up to 24 percent from its peak in nearly two months, from 1,524 points to 1,150 points, the 2 percent interest rate support package's announcement is a lifesaver for the market on expectations of the return of cheap cash flows. 

In fact, the index had witnessed outstanding recoveries for two weeks with gains of nearly 150 points. There are rising expectations about the cheap cash flows created from the package worth 40 trillion VND, equivalent to a preferential credit of up to 1 quadrillion VND. 

However, experts said that this package only has indirect effects on the stock market. Therefore, investors shouldn't put high hope on a strong performance of the market following the package issuance. 

On the positive side, Agribank Securities Corporation (Agriseco) said that this support package is expected to create a boost for enterprises to accelerate their recovery speed, contributing to the whole economic growth to reach the Government's target of 6-6.5 percent. But if companies spend the Government-supported capital for the wrong purpose, it can lead to unwanted results for the economy.

Right after the supporting announcement, many were concerned that the interest rate package will cause the stock market to experience what had happened in 2009. 

Experts from Agriseco said that, 13 years ago, Vietnam also carried out an interest rate support package from the State Bank of Vietnam (SBV) and applied for short, medium and long-term loans. The policy was a part of the fiscal and monetary policies aimed to stimulate the economy that was affected by the global crisis. 

The interest rate of the package was 4 percent a year in 2009 and was declined to 2 percent a year in 2010 for medium- and long-term loans. 

MoIT to authenticate e-contracts from June

The Ministry of Industry and Trade (MoIT) has created the necessary legal framework for the authentication of electronic contracts in Vietnam and is ready to grant operating licences to authenticators from June.

Dang Hoang Hai, Director of the Vietnam E-Commerce and Digital Economy Agency, believes that online authentication will bring great benefits to the business sector, notably in terms of costs.

Traditional contracts involve paper, printing costs and transfer costs. Meanwhile, electronic contracts will exempt contracting parties from incurring those costs, saving them about 30,000-80,000 VND (1.3-3.5 USD) for each contract.

In contrast to traditional contracts, which cannot be ratified in the absence of signers, electronic contracts can be signed anytime and anywhere, adding flexibility to the contract-making process and saving time.  

The director believes electronic contracts will allow firms to manage, store and look up contract-related data with ease and ensure high data security.

Apart from the legal framework, the MoIT has also developed a national system for electronic contracts, tasked with providing authenticated contract data to third parties and bringing together licensed authenticators and service providers.

The system is expected to lay the foundations for an electronic contract market and connect individuals and firms to a governmental platform that helps promote e-commerce transactions and legal conformity.

According to the MoIT, e-commerce has been growing steadily in recent years in Vietnam with an annual growth of 16-17 percent.

On March 15, the National Committee on Digital Transformation issued Decision No.17, aiming to raise the proportion of firms using e-contracts to half of the business sector in 2022.

Legally produced wood to boost furniture exports to US: VIFORES

Vietnam must promote the trade of legally produced wood and avoid illegal sources to secure a firm foothold in the US furniture market, according to Chairman of the Vietnam Timber & Forest Products Association (VIFORES) Do Xuan Lap.

The ongoing trade war with China has forced the US to seek suppliers of wooden furniture and other wood products from Vietnam and elsewhere, Lap said, adding that the majority of Vietnam’s exports to the US are high value-added timber products.

The US is among Vietnam’s five largest buyers, besides Japan, China, the EU and the Republic of Korea, that last year together imported 14.27 billion USD worth of wood products from Vietnam, or 90.4 percent of the total, he noted.

Over the past three years, the US market has accounted for more than 60 percent of Vietnam’s woodwork shipments, with cabinets and sofas being the most sought-after items, the VIFORES leader revealed.

About 68 percent of woodwork orders received by Vietnamese producers from overseas have come from the US so far this year, he added.

To boost woodwork exports to the US, Lap said Vietnam’s timber industry must sustainably develop legally produced wood and say no to high-risk suppliers.

It is also important to avoid any association with origin fraud, he said.

RoK resumes exhibitions, fairs in Vietnam after nearly three years

The Republic of Korea (RoK)’s International Trade Association (KITA) and the Seoul-based Convention and Exhibition Centre (COEX) have said they will resume overseas exhibitions after an almost-three-year hiatus caused by the COVID-19 pandemic.

Those activities started with the Vietnam International Premium Products Fair (VIPREMIUM) and the 10th Vietnam International Maternity - Baby & Kids Fair (Vietbaby Fair), both opened in Ho Chi Minh City on June 2.

About 150 leading companies in beauty, health, food, and household products are taking part in VIPREMIUM 2022. Meanwhile, Vietbaby Fair sees the participation of over 100 businesses from nine countries and territories that make products for newborn babies and toddlers.

Due to the pandemic, overseas fairs held by COEX and KITA took place both in person and via videoconference in 2020 but completely online in 2021.

COEX and KITA are planning the Korea Smart Electric & Energy Fair (KOSEP) in July, the Vietbaby Fair in Hanoi in September, a franchise and retail show along with Coffee Expo Vietnam in November, and many other activities, they said.

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