Italian police have kept four containers of cashew nuts delivered to this country’s Port of Genoa, a stride in the settlement of a suspected scam involving 100 cashew nut containers exported from Vietnam.

Vietnam’s trade office in Italy said on March 10 this is an encouraging step that the Vietnamese companies with the product being transported to Italian ports can consider.

To deal with the case, a delegation from the trade office came to Naples on March 10 to meet Vietnam’s Honorary Consul in this city Silvio Vecchione and many agencies in southern Italy, including the Port of Naples, military police, tax authorities, banks, and the delivery firm DHL - the main points of transit of the 36 sets of original documents that Vietnamese firms lost track of.

Signs of a scam became clearer when some banks said they had received only photocopied documents or blank papers sent to the persons without accounts at those banks.

Trade Counsellor in Italy Nguyen Duc Thanh said only 36 sets of documents are being lost, noting that among the 100 sets of original documents, Vietnamese companies have retained over 50 and reclaimed many others returned by DHL.

The most important thing is that the first four containers to arrive at the Port of Genoa have been kept by Italy’s financial police thanks to timely actions by relevant parties, he said, adding that lawyers will continue working with relevant agencies of Italy to return the goods to Vietnam, or let the companies sell the cashew nuts to other buyers in Italy or other countries.

Authorised by Vietnam’s Trade Office, Honorary Consul Silvio Vecchione filed a denunciation of the cashew nut scam to Naples police.

He recommended that when trading with Italian firms, Vietnamese businesses should learn information about their partners through the Vietnamese Embassy, the trade office, and honorary consuls here so as to maximise safety for bilateral transactions.

He also affirmed his readiness to assist Vietnamese businesses to learn about and work with Italian partners.

Ministry proposes cutting 50 percent of environmental tax on petrol

The Ministry of Finance said it has completed the National Assembly Standing Committee’s draft Resolution on the adjustment of environmental protection tax rates for gasoline, oil, and grease, which is set to become effective from April 1 to the end of December 31 this year.

It proposes to reduce the tax rates for gasoline by 2,000 VND (0.088 USD) per litre; diesel, fuel oil, and lubricating oil by 1,000 VND per litre; grease by 1,000 VND per kg; and kerosene by 700 VND per litre.

Given the complicated developments of the global petroleum market and COVID-19 situation, the Prime Minister on February 22 issued a dispatch on ensuring the supply of petroleum for the domestic market, directing the ministry to assume the prime responsibility for and coordinate with the Ministry of Industry and Trade and relevant agencies in urgently studying and proposing a plan to adjust policies on environmental protection tax.

Under the direction, the finance ministry conducted drafting the resolution following a shortened procedure.

Tasks of ministries in RCEP implementation clarified

Permanent Deputy Prime Minister Pham Binh Minh has signed a decision assigning duties of ministries relating to the implementation of the Regional Comprehensive Economic Partnership (RCEP) which took effect from January 1.

Accordingly, the Ministry of Industry and Trade (MoIT) will be in charge of coordinating the implementation of chapters 1, 3, 7, 8 and 13 relating to rules of origin, trade remedies, trade in service and competition.

Regarding chapter 2 on trade in goods, the MoIT is responsible for issues related to import duties of RCEP members and import-export management, the Ministry of Finance will be in charge of issues related to Vietnam's import duties, while the Ministry of Agriculture and Rural Development (MARD) will take charge of implementing contents related to agricultural goods.

The General Department of Vietnam Customs under the Finance Ministry will coordinate the implementation of chapter 4 on customs procedures and trade facilitation, and the MARD is in charge of chapter 5 on food safety; animal and plant health measures.

The Ministry of Science and Technology and the Ministry of Culture, Sports and Tourism are responsible for contents relevant to industrial property rights and enforcement of intellectual property rights and copyright, respectively, under chapter 11 on intellectual property.

In case any issue arises during the implementation that calls for adjustment, the MoIT will coordinate with relevant agencies to compile a report on the issue and submit it to the Prime Minister for consideration.

Tra fish exports record strong recovery in early 2022

Vietnam’s Pangasius (tra fish) exports in January 2022 surged nearly 73 percent year-on-year to 213.6 million USD, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Besides the recovery of traditional markets, the strong growth in new markets in recent times is expected to contribute to the pangasius industry’s recovery this year as well as in coming years, the association said.

Vietnam is home to nearly 120 facilities processing tra fish products for export with a combined capacity of 1.8 million tonnes of inputs per year.

This year, the tra fish export is forecast to expand by 20-22 percent compared to 2021, while the price is predicted to rise by 5 percent due to costs for breeding, logistics and labour.

Pharmaceutical stocks remain attractive in 2022 on strong medicine demand

As the COVID-19 pandemic continues to spread nationwide and is gradually being considered an endemic disease that could be treated at home, demand for drugs has increased sharply.

SSI Research expects healthcare demand will recover and grow 13 percent year-on-year in 2022.

The impact from the pandemic will be less severe and even bring some positive benefits for the pharmaceutical enterprises, it added.

With 70 percent of the Vietnamese population already fully vaccinated with two doses, and new coronavirus variants that may be less dangerous with lower hospitalisation rates, the healthcare demand in 2022 is forecast to soon surpass pre-pandemic levels with hospital visits recovering to normal levels. And the pharmaceutical group will have significant additional revenue from fever reducers and vitamins that are used to treat mild COVID-19 symptoms.

Moreover, many Vietnamese pharmaceutical companies have received formulas for the production of COVID-19 medicines which are transferred by Pfizer and MSD, and may soon be commercialised in 2022.

According to SSI’s report, profits for healthcare companies are likely to grow strongly in 2022, with prices for medical services and medicines expected to rise slightly.

Pharmaceutical companies are expected to record high growth for the whole of 2022, while the hospital group will achieve high growth in the second half of the year, SSI said.

On the stock market, with the positive profit growth prospect, SSI expects stocks of pharmaceutical companies continue to be attractive during the pandemic period.

Vietnam’s car sales drop for second consecutive month

The Vietnam Automobile Manufacturers’ Association (VAMA) reported that its members suffered a decline in sales for the second consecutive month, with 22,802 cars sold units, or a 26-percent decrease, in February.

Of the total, 17,541 units were passenger cars, and 4,782 units were commercial vehicles, down 31 percent and 7.6 percent month on month, respectively. Meanwhile, 479 special-purpose vehicles were sold, up 67 percent against the previous month.

The sales of domestically-assembled vehicles fell 18 percent to 14,528 units, while that of imported CBU cars decreased 36 percent to 8,274 units.

This is the second month that the industry saw decline in sales after 21 percent rise in December 2021.

However, in the first two months of 2022, VAMA members sold 53,544 vehicles to the market, up 34 percent over the same period last year. Of which, 42,820 were passenger cars, 9,959 were commercial vehicles and 765 were special-purpose vehicles. The figures represented respective rises of 42 percent, 4.7 percent and 62 percent year on year.

Experts predicted that with the better control of COVID-19 and support of 50 percent in registration fee until May, the industry will enjoy good growth in next months. This year, the industry expects 500,000 vehicles to be sold.

Exporters have to register online when exporting starch to China

The Ministry of Industry and Trade said domestic companies wishing to export starch to China can now register online, as information on starch products coded HS 1108 and 3050 has been updated on China's online overseas food manufacturer registration platform.

China launched its new online overseas food manufacturer registration platform in January this year, and it is mandatory for all firms looking to export into the country have to register their products on the platform under Orders 248 and 249.

Accordingly, food manufacturers can set up their accounts and register for export items on the platform: https://cifer.singlewindow.cn/.

Ministry urges for intensified monitoring of fuel trade nationwide

The Ministry of Industry and Trade has asked authorities of cities and provinces nationwide to step up checks and monitoring of oil and gas trade as the ongoing ups and downs of the global fuel market are having major impacts on the domestic supply and prices.

The move aims to ensure adequate fuel supply and stablise the market, the ministry said in a newly-released notice.

It has requested the authorities to inspect the observation of fuel trade regulations at retail outlets which are strictly required to publish current prices, not charge customers higher rates than the listed prices, and remain open during their registered time. Any violators must be subject to vigorous penalties, it noted.

Any fuel retailers found ceasing sales and hoarding stocks will face suspension of operation or withdrawal of licences in accordance to regulations.

Vietnam aims for wood and forest product export target of US$20 billion by 2025

The nation is set to achieve an export value of wood and forest products of US$20 billion by 2025, a figure over US$9 billion higher than the current level, with the export turnover of local wood products set to hit US$18.5 billion.

Furthermore, the wood industry has also set a timber and wood product value target of US$5 billion by 2025 for domestic consumption, with these reaching over US$6 billion by 2030.

These targets were part of a project aimed at developing a sustainable and effective wood processing industry in the 2021 to 2030 period, with these aims being approved by Deputy Prime Minister Le Van Thanh on March 10.

Under the terms of the project, over 80% of wood processing and preservation establishments will reach the level and capacity of advanced production technology. Indeed, 100% of timber and wood products used for both export and domestic consumption are used from legal wood materials and certified for sustainable forest management.

According to the common goal by 2030, the wood processing industry is set to become an important economic sector. Therefore, steps must be taking towards building and developing a reputable Vietnamese wood product brand in both the domestic and international markets.

The nation is striving to be among the group of leading countries in terms of production, processing, and export of wood and wood products.

Da Lat launches new tourism products

A range of attractive tourism products will be launched during the Lam Dong Tourism Week 2022 scheduled to take place in April.

The programme is one of several tourism promotion events to attract visitors during the ongoing Covid-19 pandemic, according to the Lam Dong Department of Culture, Sports and Tourism.

The programme will include different activities, including a Central Highlands Beauty photo exhibition, a food festival on Da Lat’s delicious dishes and art programmes on local ethnic cultures.

Dalat Tourist will also provide adventure tours such as trekking, canyoning, high rope course and zipline.

Compulsory civil liability insurance for the construction industry

Construction contractors in Vietnam will have to buy compulsory civil liability insurance for third parties from July.

On March 10, the government issued Decree No.20/2022/ND-CP, amending and supplementing some regulations of Decree No.119/2015/ND-CP from 2015. They govern compulsory insurance in the construction sector.

The latest decree adds the regulation on compulsory civil liability insurance for third parties in the field. Construction contractors will be required to buy compulsory insurance for workers on construction sites and civil liability insurance for third parties.

The cost of the cover will be met by the contractor, and it must be valid for the full duration of any construction contract.

The amendment also adds a regulation on the insured amount for third parties. The minimum insurance to cover damage to health and loss of life is around $4,300 per person per case.

For projects of less than $43.5 million, the minimum cover for property damage and relevant legal costs is 10 per cent of the construction value. For construction work of $43.5 million and higher, it is set at $4.3 million. The decree will take effect from July 1.

High input costs hit wood product manufacturers

Rising input costs are eroding the profits of wood products manufacturers, putting them at risk.

Additionally, Russia-Ukraine tension is likely to cause a shrinkage of Russian timber supply, compounding the situation, a conference on Wednesday heard.

With timber supply becoming tighter, Vietnamese firms will have to compete more fiercely for timbers in international market, notably timbers from the EU and the US.

The recent soaring demand for timber in timber-exporting countries has caused a shortage, pushing up prices. Higher material prices, coupled with mounting transportation costs, have added to import bills, driving many manufacturers into unprofitability.

The expert was concerned that timber prices would continue to climb in the short term, making Vietnamese wood products less competitive in the international market.

Vietnamese timber and wood product exports hit US$1.55 billion in January, up 14.3 per cent against the same period last year. The industry aims to raise the figure to $18-20 billion by 2025.

Hundreds of seafood transport trucks stranded at Quang Ninh’s border gate

Hundreds of seafood transport trucks have got stranded at the Mong Cai International Border Gate in Quang Ninh Province since China stopped customs clearance to prevent the spread of Covid-19 late last month.
Since February 25, customs clearance at the border gate has been suspended due to China’s “Zero Covid” policy, the Mong Cai City government said today, March 10.

After China’s Fangchenggang City detected dozens of Covid cases, the Chinese authorities tightened anti-Covid measures, including suspending import-export activities at its border gates.

Tran Bich Ngoc, head of the management board of the Mong Cai International Border Gate, said that Mong Cai City had 25 container trucks carrying fresh fruits and some 500 trucks of frozen seafood awaiting customs clearance. The goods are being stored at refrigerated warehouses.

Some other international border gates in the province, including Hoanh Mo and Bac Phong Sinh, are facing the same fate, seeing huge backlogs of exports to China, Thanh Nien Online reported.

Due to China’s export-import suspension, the management board has asked exporters to temporarily stop transporting goods to the northern border gate and proactively tap other markets for export and boost domestic consumption.

FDI firms post positive growth despite pandemic: survey

The Covid-19 pandemic has left tremendous impact on many businesses, but foreign direct investment (FDI) companies have maintained positive growth, according to Vietnam Report JSC.

Vietnam Report JSC and Vietnamnet news site has released a list of the 500 fastest-growing companies in Vietnam (FAST500) this year.

There were 186 businesses participating in this year’s survey. Of them, 75.8% said they maintained their revenue growth in 2021 and only 23.7% reported lower revenue than in 2020. Besides, 72.6% saw their pre-tax profits up from 2020, and nearly one third said their revenue grew over 75%.

Given the impact of the pandemic, in the 2017-2020 period, the compound annual growth rate (CAGR) of the FAST500 companies reached 22.5% only, down 5.7% against the previous period. However, the FDI sector stole the limelight as it still enjoyed stable growth and rose to take the lead in CAGR at 24.1%, even though the number of FDI firms accounted for 6% in the list. The private and State sectors reported their CAGR lower, at 23.2% and 26.6%, respectively.

In 2022, with Vietnam’s high Covid vaccination rates, most of the FAST500 companies are pinning high hopes on positive growth this year. Specifically, 83.3% of the interviewed firms say they are optimistic about their economic growth prospects in the local market this year. Therefore, when asked about their business plans for this year, up to 89.2% revealed they would expand their business scale and 10.8% said they would maintain the current scale.

Gasoline price hike affecting all exporters

The current conflict between Russia and Ukraine has caused the price of gasoline and transportation to spiral, and export payments are being affected much more after Russia has been removed from the Swift International payments system.

Even though Vietnam has only a 1.2% import-export turnover with the Russian and Ukrainian markets, the negative impact of this crisis will be felt by all export enterprises.

Among the top ten seafood exporting companies to Russia at this time is the Kien Cuong Seafood Processing and Importing Joint Stock Company, which is now temporarily suspending exports to the Russian market. Mr. Doan Hoang Chien, Director of Kien Cuong Seafood Processing Company, said that because of concerns of risks from the Russia-Ukraine conflict to goods transportation, documents, and payments, his company has temporarily put on hold all exports to the Russian market.

Currently, the Russian market accounts for about 30% of total export market share of the Kien Cuong Seafood Processing Company. When asked if exclusion of Russia from the Swift international payment system had affected the payment of partners for previous export orders, Mr. Chien said that old orders had been shipped before Tet, so the payments have all been completed.

Seafood is one of the main exports to the Russian market. Although seafood export turnover to Russia is still quite modest, at about US$164 mn in 2021, the Vietnam Association of Seafood Exporters and Producers (VASEP) always assesses this market as a potential market. Mr. Truong Dinh Hoe, General Secretary of VASEP, said that the impact on the seafood industry is not large because the market share of both Russian and Ukrainian markets is still small, but 50 businesses have licenses for both markets and they are all being affected from this crisis.

Vietnam boosts digital infrastructure in telecommunications

With the development and convergence of current information technology (IT), telecommunications infrastructure is now transforming into digital infrastructure, said Deputy Minister of Information and Communications Pham Duc Long at the World Mobile Broadband and ICT Summit 2022 held in Hanoi on March 9.

Vietnam is accompanying the world in building digital infrastructure, Long said, adding that digital transformation is taking place in all fields and has been accelerating.

He added that the Ministry of Information and Communications (MIC) has set out a goal that Vietnam will master broadband infrastructure, 5G equipment infrastructure, and make-in-Vietnam technology platforms.

According to statistics of the MIC's Authority of Telecommunications, in 2021, Vietnam had 70.9 million mobile broadband subscribers, accounting for over 57% of total mobile subscriptions and representing an increase of more than 4% compared to 2020.

In 2022, the authority sets the goal of having 100% of adults owning a smartphone, 75% of households installing fiber optic internet, and 85% of mobile broadband subscribers per 100 people.

Tra fish exports record strong recovery in early 2022

Vietnam’s Pangasius (tra fish) exports in January 2022 surged nearly 73 percent year-on-year to 213.6 million USD, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).

Besides the recovery of traditional markets, the strong growth in new markets in recent times is expected to contribute to the pangasius industry’s recovery this year as well as in coming years, the association said.

Vietnam is home to nearly 120 facilities processing tra fish products for export with a combined capacity of 1.8 million tonnes of inputs per year.

This year, the tra fish export is forecast to expand by 20-22 percent compared to 2021, while the price is predicted to rise by 5 percent due to costs for breeding, logistics and labour.

Last year, Vietnam produced 1.52 million tonnes and exported 1.62 billion USD of tra fish.

The production target was set at 1.6-1.7 million tonnes and export revenues at over 1.6 billion USD this year./.

Thai Nguyen ranks second in FDI attraction in two months

The northern province of Thai Nguyen with the issuance of of a licence to to Samsung Electro-Mechanics Vietnam Co., Ltd under Samsung Corporation of the Republic of Korea to add 920 million USD to its project, ranked second in attracting foreign direct investment (FDI) in the first two months of 2022, behind Bac Ninh.

With the addition, Samsung Electro-Mechanics has raised its total investment in the Yen Binh industrial park in Pho Yen town to nearly 52 trillion VND (2.27 billion USD).

Thai Nguyen attracted 924 million USD of FDI in January - February, accounting for nearly 18.5 percent of the total FDI poured into the country in the period.

Last year, Thai Nguyen granted new licenses to and approved the addition of capital for 27 foreign-invested projects with a total registered capital of over 1 billion USD, lifting the number of FDI projects in the locality to 170 valued at 9.67 billion USD.

Meanwhile, it is now home to 800 domestic projects totaling over 143 trillion VND (over 6.25 billion USD).

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

VIETNAM BUSINESS NEWS MARCH 10

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