Proper planning, brand positioning, and environmental protection are key matters in the development of Vietnam’s urban tourism, according to experts.

In Vietnam, the urbanisation rate has reached nearly 40%, with over 860 urban areas. The country has numerous urban areas, especially coastal cities or key tourist destinations like Ho Chi Minh City, Da Nang, Nha Trang, Phan Thiet, Vung Tau and Phu Quoc.

However, not all cities are tourist destinations, even though most have outstanding tourism potential. To improve tourism competitiveness and attractiveness, cities with strengths in tourism development must create and position a brand.

According to Nguyen Thu Hanh, President of the Science Union for Sustainable Tourism Development, brand positioning is one of the important strategies for cities with a focus on tourism.

Vung Tau city, for example, is rich in advantages such as convenient traffic locations, seaports, a large oil and gas centre, a four-season climate, and beautiful beaches.

This urban area also converges different cultures through religious monuments, churches, communal houses, and pagodas.

Hanh described Vung Tau as a "smart, modern and dynamic coastal city" with a system of industrial parks, high-tech zones, event centres, festivals, entertainment, and shopping operating on a digital platform.

Phu Quoc, located on the southwest coast, is considered a centre of eco-tourism and high-class beach resorts. With around 150km of coastline, the length of beaches suitable for tourism development is about 50km.

In recent years, experts have warned that coastal cities are at risk of sea level rise and unusual natural disasters due to climate change.

Separate services, shopping, and entertainment areas should be planned with little impact on the lives of residents, ensuring that tourism activities can take place 24/7, thereby promoting the development of the urban night economy, in which tourism will be the core.

Master plan on Ha Long city till 2040 announced

The People’s Committee of northern Quang Ninh province and the Ministry of Construction on March 11 announced the master plan on Ha Long city till 2040 which was approved by the Prime Minister on February 10.

Speaking at the event, Secretary of the Ha Long Party Committee Vu Van Dien said under the plan, Ha Long city is set to become a civilised and friendly tourist and service urban area, a world-class national service and tourism hub with modern and synchronous socio-economic infrastructure.

Its sustainable development will be aligned with requirements for green growth and climate change response, with Cua Luc Bay as a connectivity hub, in harmony with the world natural wonder Ha Long Bay and the northern mountainous regions of the city.

Regarding urban development, the city is expected to have a population of around 620,000-650,000 people by 2030 and approximately 800,000-830,000 by 2040.

Ha Long city is set to be a political, administrative, economic, and cultural hub of the province. It is also part of the expanded dynamic urban area of Ha Long, Cam Pha, Quang Yen, Uong Bi, and Dong Trieu.

This is the comprehensive and multi-industry hub of the province, with tourism, service, processing, hi-tech, mining, seaport, and clean energy as the core industries. The development of Ha Long is of utmost importance for the overall development of the province.

Acting Chairman of the provincial People’s Committee Cao Tuong Huy said during 2022-2025, the city will complete urban infrastructure system, embark on green urban development integrated with smart city model, complete the construction of transport routes and tourism infrastructure.

During 2025-2030, the focus will be on improving the quality of the coastal space, completing the construction of coastal roads, public and coastal tourism areas.

From 2031-2040, there will be a greater connectivity with neighbouring areas such as Uong Bi and Cam Pha cities, Quang Yen town to create a harmonious development space in the principle of preserving and upholding the values of Ha Long Bay.

Retail market motivates e-commerce gain momentum​

Vietnam’s retail market has seen positive signs of recovery, especially domestic demand, after COVID-19.

In the new context of the market, many businesses and retailers in Ho Chi Minh City have carried out plans to improve e-commerce infrastructure in both online and offline channels.

Statistics showed that in 2022, the retail sector’s net leasing area in the southern metropolis remained unchanged compared to the same period in 2021 with 1.5 million sq.m.

According to the Vietnam Association of Realtors (VARs), demand for retail space in shopping centres in big cities such as Ho Chi Minh will continue to strongly grow thanks to brand expansion.

Experts said, growth momentum for 2023 was based on economic bright spots like Ho Chi Minh City’s retail turnover in 2022 of 626 trillion VND (roundly 26.5 billion USD), up 21% year on year.

The total retail sales of consumer goods and services in Ho Chi Minh City in January 2023 increased by 5.7% compared to the same period last year. The growth of retail sales has contributed greatly to rental capacity in the southern hub.

In addition, consumers are increasingly interested in brands in the health care setor, sports and outdoor activities, leading to the increasing demand for premises of these industries.

Deputy Managing Director of Savills Vietnam Troy Griffiths said that the COVID-19 pandemic also changed consumers' shopping habits to online shopping, making retailers to reach clients through e-commerce.

Vietnam's e-commerce activities have become an important distribution channel, as they help retailers approach loyal and potential customers faster and more conveniently.  With a growth rate of about 20% per year, Vietnam is ranked among the top five countries with the world's top e-commerce growth.

The growth of e-commerce has motivated businesses and retailers to make an effort to boost offline sales and logistic services.

Many units operating in the logistics industry believe that Asia in general and Southeast Asia and Vietnam in particular have great opportunities in logistics. There is opportunity for delivery businesses to catch up with trends in a timely fashion, build long-term competitive advantages and strengthen market position.

Stakeholders in the industry are asked to pay more attention to investing in technology and warehousing systems, expanding the number of post offices and connecting multi-party businesses, and creating a complete ecosystem to bring more benefit for businesses, traders and consumers.

Southeastern region to become country’s leading economic engine

Experts have called for continued efforts to improve the traffic infrastructure and implementation of reforms needed to make the southeastern region a leading economic engine of the country.

Speaking at a workshop on March 10, Prof Dr Su Dinh Thanh, rector of the University of Economics of Ho Chi Minh City, said the southeastern region, including HCM City and the provinces of Dong Nai, Binh Duong, Ba Ria-Vung Tau, Binh Phuoc, and Tay Ninh, had played a major role in Vietnam’s economic growth.

It contributed more than 30% of the country’s GDP and 45% of state revenues though it had only 23% of the population, he said.

The region was, however, facing problems related to traffic infrastructure, which had not been developed, causing high freight costs, affecting businesses.

It is the country’s most urbanised and economically vibrant region, according to Thanh.

HCM City and Binh Duong and Dong Nai provinces in particular, which have 40% of migrant workers, are facing huge urban and social infrastructure challenges.

Under a plan for until 2030 the region will have 970km of highways, but now has only 10% of that due to a lack of public investment and land acquisition challenges.

Prof Dr Nguyen Trong Hoai, editor-in-chief of the Journal of Asian Business and Economic Studies, said: “The region has great potential for long-term development, but there are signs of slowing down due to bottlenecks.”

There was a lack of skilled workers in the region.

R&D activities remained modest compared to the size of the economy, he pointed out.

Public funding was limited, he said. “Regional governance issues have also been a major issue.”

Another issue was that while the region contributed enormously to Government revenues, the expenditure per capita here was much lower than the national average.

Ninh Binh eyes boosting tourism promotion, linkage in Belgium

A seminar on sustainable tourism development cooperation between Ninh Binh province – a famous tourist destination in northern Vietnam, and its Belgian partners took place at the Vietnamese Embassy in Belgium on March 10.

Informing participants on Ninh Binh’s tourism strength, Bui Van Manh, Director of the provincial Tourism Department, said the locality houses nearly 2,000 historical and cultural relic sites and some 50 tourist destinations.

Ninh Binh wants to connect with Belgian travel companies to promote its tourism in the European market, he said.

Belinda Serkeyn, a representative of the Belgian-based exhibition organiser Fisa, said she is impressed with the above-said potentials and suggested the province attend the annual Brussels tourism fair, which attracted 650 firms from more than 60 countries and territories this year.

Vice Chairman of the provincial People’s Committee Tran Song Tung said Ninh Binh plans to turn tourism its spearheaded sector in a green and sustainable way, adding that Vietnam can learn from Belgium’s strength in cultural value preservation and promotion.

To popularise its potential in the European market, Tran Ngoc Quan, Trade Counselor of Vietnam in Belgium and the EU, recommended Ninh Binh focus on specific tourism products, especially those related to cuisine and culture.

On behalf of the Belgian Vietnamese Alliance, Secretary General Duong Minh Tri affirmed that he would act as a bridge for Ninh Binh to connect with Belgian tourism partners to promote the destination to Belgian tourists.

According to the leader of the province, Ninh Binh will discuss with a number of Vietnamese localities such as Hanoi, Quang Ninh and Ho Chi Minh City regarding the participation in the Brussels tourism fair next year.

Located in the southern reaches of the Red River Delta, Ninh Binh is known for its wondrous natural scenery, with a labyrinth of waterways, mountains, and plains as well as cross-cultural influences from the north to the south and from the mountains to the plains and coastal areas.

With unique artistic, geological, geomorphic, and landscape values and traces of prehistoric life, the Trang An Landscape Complex was recognised by UNESCO as a World Cultural and Natural Heritage Site in June 2014, becoming the first mixed natural and cultural property in Vietnam. It is also home to a number of attractions recognised as special national relic sites.

Conference promotes coffee trade in Dak Lak

Authorities of the Central Highlands province of Dak Lak and the Ministry of Industry and Trade (MoIT) held an international trade conference on March 11, as part of the ongoing eighth Buon Ma Thuot coffee festival.

The event drew about 450 delegates who are importers, distributors, e-commerce platforms, enterprises, coffee producers and cooperatives at home and abroad, as well as economic organisations, contributing to expanding coffee consumption of Vietnam and Dak Lak in particular and realising the goal of “Buon Ma Thuot – destination for world’s coffee”.

Speaking at the event, Permanent Vice Chairman of the provincial People’s Committee and head of the festival’s organising board Nguyen Tuan Ha described coffee as a key crop of the province, covering an area of around 210,000ha with an average yield of over 550,000 tonnes per year, accounting for more than 21% of the volume and 20% of the country’s coffee export value. The province's coffee has been exported to more than 70 countries and territories worldwide. The geographical indication of Buon Ma Thuot coffee has been protected in 32 countries and territories globally.

Coffee exporters and experts also suggested establishing a coffee and farm produce trading floor in Buon Ma Thuot city.

Head of the MoIT’s Vietnam Trade Promotion Agency Vu Ba Phu stressed that the potential and resources for exporting coffee and coffee-derived products from Dak Lak remain ample.

During the conference, there were exhibition booths showcasing coffee products and linking importers and exporters at home and abroad.

On the occasion, domestic and foreign coffee importers and exporters signed 10 memoranda of understanding and agreements on cooperation.

Can Tho leader hosts Philippine group

Can Tho’s authorities, public agencies and businesses held a working session with the Philippine group Vista Land in the Mekong Delta city on March 11.

Standing Vice Chairman of the municipal People’s Committee Duong Tan Hien said Can Tho, with its strength in high-tech farming, can meet the needs of clean agricultural and aquatic products that Vista Land cares about.

The city hopes that through the company’s surveys and meetings with businesses, sides involved can promote trade connections and investment cooperation in the future, he noted.

A representative of the Philippine group said Vista Land is looking for business opportunities in Southeast Asia, including Vietnam, with a desire to improve the quality of its food products.

In its current field trip to Can Tho, the group said it has so far found a number of potential products to introduce to the Philippines such as rice, fruits, shrimp, processed fish, snacks, and dried fruits. There are many other local goods of great potential, it said, adding a wish to learn more about them and rice products in Can Tho and the delta as well as the city’s opportunities for investment.

Can Tho authorities stated that the city always opens its door for investors seeking investment and cooperation chances.

In 2022, Can Tho exported 101.98 million USD worth of products to the Philippine market, mainly rice, seafood, apparel, and medicine. It spent 1.02 million USD to buy goods, mostly medicinal ingredients, from the nation.

Enterprises expect poor performance in Q1 due to weak macro data

Many enterprises forecast less optimistic business results in the first quarter of the year, due to weak domestic macro data in the first few months. 

The global economy has started 2023 with uncertainties and challenges with inflation in many countries remaining at high levels despite showing signs of cooling down, hurting the Vietnamese economy and social situation.

The country's consumer price index grew 4.6% year-on-year during the period, while the core inflation increased 5.08%, said the General Statistics Office. Moreover, the index of industrial production fell 6.3%, foreign investment declined by 38%, and export turnover was down 10.4% due to a reduction in orders. 

Thereby, many enterprises expect adverse business results in the first quarter.

Particularly, the leading tyre producer Danang Rubber Joint Stock Company sets a target of 1.1 trillion VND (46.3 million USD) in net revenue and 70 billion VND in profit before tax, both down 14% over last year. 

Bao Viet Securities (BVSC) said that the company reported net revenue of 301 billion VND in January, a decline of 23% year-on-year. The reduction was driven by seasonal factors and weaker demand affected by difficulties of the wider markets. 

However, leaders of the company said that there are signs of recovery of the domestic market in February and March. Even though the export market dropped by about 9% to 10 million USD, it can reach 11-12 million USD a month in the remaining two months. 

Meanwhile, export volume was supported by growing demand in Brazil, and improvement in tyre orders in Asian markets such as Myanmar, Egypt and the Middle East since February.

Digiworld also forecasts that its first quarter's revenue will decrease by 43% to 4 trillion VND, while net profit falls 38% to 130 billion VND, following the downtrend of the fourth quarter of 2022.

Doan Hong Viet, chairman of the Board of Directors of Digiworld, said that the demand for information and communication technology (ICT) equipment is at a low level due to signs of economic recession, causing consumers to reduce spending. On the other hand, during the COVID-19 pandemic, ICT products sold well and had not yet reached the replacement cycle.

Challenges remain until the second quarter, the head of Digiworld said, adding that recovery will begin in the second half of the year when the world economy is better, the Vietnamese export orders increase, and income improves, leading to an increase in purchasing power.

Duc Giang Chemical Group plans its first quarter's revenue to reach nearly 2.6 trillion VND with consolidated profit after tax of 700 billion VND, down 29% and 53% on-year, respectively. Therefore, Duc Giang Chemical's profit is forecast to continue to decline after peaking in the second quarter of 2022.

Mirae Asset said that China's zero-COVID policy from May 2022 - January 2023 caused a reduction in demand for semiconductor products, affecting the demand for yellow phosphorus - the company's main product. Therefore, the reopening of China's economy and production promotion of electronic devices will help semiconductor demand rebound, balancing Duc Giang Chemical's profit in the first half of 2023.

Meanwhile, after achieving positive results last year, LIX Detergent sets a negative target for the first quarter of the year with profit before tax down 9% to 50 billion VND, while its revenue is almost flat. If it meets the target, the results will be the company's worst performance since the third quarter of 2021.

With difficulties in the cement market and packaging production industry, leaders of Vicem Packaging Bim Son set a target of only 261 billion VND in revenue in 2023 and 1.5 billion VND in profit before tax. In the first quarter alone, the company estimated revenue of 62 billion VND and a loss of 180 million VND. 

Although its business activities have not experienced outstanding performance since 2003, Vicem Packaging Bim Son never suffered a loss.

In the rubber industry, Tan Bien Rubber foresees a loss of 9 billion VND in the first quarter of this year, while the profit is unchanged over last year at 38 billion VND. 

According to data from the General Department of Customs, rubber prices decreased by 17% on-year despite a recovery compared to the end of 2022. As of mid-February, rubber exports dipped 8% in volume and 27% in value.

VNDirect Securities Corporation considers the reopening of China's economy a very good opportunity for rubber prices and exports to recover.

Vinh Phuc seeks to attract more strategic investors from Japan
     
The People’s Committee of Vinh Phuc held a conference on Wednesday to attract more strategic investors from Japan to the northern province.

The event looked to promote the attraction of strategic investment to such fields as processing, manufacturing, hi-tech agriculture, trade, and services while creating opportunities for local enterprises to boost cooperation with Japanese partners.

Representatives of JV Livestock Co Ltd, Sojitz, and Vietnam Dairy Products JSC (Vinamilk) said they had received assistance from local authorities to address obstacles and difficulties related to administrative procedures, tax, and site clearance, among others.

Other businesses noted that Viet Nam is a big market, and Vinh Phuc boasts favourable conditions. Japanese firms hope to cooperate with the province to set up production chains in some potential sectors if possible.

By the end of 2022, Vinh Phuc was home to 1,270 investment projects, including 445 foreign direct investment (FDI) projects worth US$7.55 billion and 825 domestic direct investment ones worth over VND121 trillion ($5.1 billion).

Among the 20 countries and territories investing in the province, Japan ranked second with 58 projects worth more than $1.6 billion, after the Republic of Korea in registered capital.

Most Japanese investors in Vinh Phuc are operating in mechanics, automobile and motorcycle production, electronics manufacturing, and industrial park infrastructure development. They account for 88 per cent of FDI firms’ contributions to the local budget, according to the provincial People’s Committee. 

MoF's special consumption tax proposed on sugary drinks controversial
     
A moderate special consumption tax on sugary drinks, recently proposed by the Ministry of Finance (MoF), has attracted contradictory views from industry insiders and health experts.

According to the ministry, consumption of sugary drinks has been steadily rising in recent decades. On average, sugary drink consumption has increased seven-fold in the last 15 years, from 6.6 litres per year per capita in 2002 to 46.5 litres in 2017 and 50.7 litres in 2018.

MoF said the tax is designed to bring down sugar consumption in a bid to improve public health and in line with the World Health Organisation, as well as international practices.

Industry insiders and convenience store owners have voiced their concerns over the proposed tax.

Nguyen Van Nam, owner of a wholesale business in Ha Noi, said the tax would likely deliver another blow to the industry, which has been struggling to recover from the pandemic. "A special consumption tax will translate into higher retail prices and lower demand, which will put an additional burden on businesses," he said.

Nguyen Van Viet, president of the Vietnam Beer-Alcohol-Beverage Association (VBA), urged the government to consider delaying the tax until 2025, citing numerous difficulties faced by businesses such as high interest rates and inadequate cash flow, which economists said will likely last until the end of 2023.

This is the second attempt by the MoF to pass the bill. In 2014, the ministry unsuccessfully proposed a 10 per cent special consumption tax on sugary drinks, failing to get other ministries on board. This time around, the MoF cited the results of national health surveys for the 2000-2020 period, conducted by the National Institute of Nutrition as the basis.

The surveys showed an alarming rate of childhood obesity in all age groups and regions across the country. According to the MoF, a special consumption tax on sugary drinks has become a common practice around the world. In 2012, only 15 countries put a tax on sugary drinks. By 2021, over 50 countries implemented similar taxes, including ASEAN countries of Cambodia, Malaysia, Myanmar, the Philippines, and Thailand.

"The WHO issued a recommendation for governments to take measures to encourage citizens to consume healthier food with taxes on sugary products," said a statement from the ministry. VBA, on the other hand, said the tax should be based on the amount of sugar, citing the UK as an example, where products with 6 per cent or lower sugar content may be exempt.

The association said a tax regime based on sugary content should help direct producers and consumers to healthier products. 

519 firms win Vietnamese High-Quality Goods Award
     
The Vietnamese High-Quality Goods Award will be given to 524 firms this year, it was announced in HCM City on March 9.

The Business Association of High Quality Vietnamese Products selected them from a list of 677 candidates based on offline interviews with customers and sellers in major cities and online interviews with customers nation-wide.

The nominees were then screened by authorised local agencies and relevant industries and checked for transparency of information and compliance with laws before being chosen for the prestigious award.

Of the winners, 32 have claimed the award for 26 consecutive years while 41 are achieving the honour for the first time.

The dry and instant food industry has the highest number of winners, followed by the sauces and spices industry.

Nguyen Van Phuong, the association’s consumer survey expert, said consumers pay attention not only to the basic factors of a product such as perceived quality, durability and price, but also safety, freshness, nutritional information, origin, function, and quality certification, especially in the case of food and beverages.

The survey also found that traditional retail channels still dominate with a 60 per cent market share, though more and more consumers are shifting from traditional markets and small grocery stores to modern retail channels.

Besides, people look online for information about products they want to buy, but buy them at supermarkets and stores.

With the increasing penetration of mobile devices and the internet, e-commerce and online sales are an inevitable trend, Phuong said.

Consumers are increasingly interested in healthy, "clean" and "sustainable" products, and are willing to pay more for traceable, environment-friendly and high-quality products, he added.

Vu Kim Hanh, chairwoman of the association, said the green and circular economies are inevitable amid efforts to conserve natural resources and protect the environment.

Many businesses have invested in recycling waste from production into new products, she said.

By focusing on environment-friendly and sustainable practices, companies could gain a competitive advantage in the market, she added.

Van Thi Thuy Tien, marketing director of Qui Phuc Trading - Service - Production Company Limited, which makes furniture, said her company has done research into turning plastic and steel wastes into products such as corner shelves and flowers.

Kao Sieu Luc, director of ABC Bakery, said his company has increased the use of solar power and biodegradable packaging and bags to help protect the environment despite incurring higher costs on them.

More communication is needed to raise awareness about the circular economy among businesses and consumers, he said.

The awards ceremony will be held at the Reunification Convention Hall in HCM City’s District 1 on March 14. 

Falling price of fertiliser causes headaches for producers

Fertiliser prices experienced a significant decline within the year's first three months, a boon for farmers who were able to reap the benefits, though production enterprises find themselves grappling with challenges.

The market has continued to witness a sharp drop in prices, with urea fertiliser currently at its lowest price point in over two years. As a result of domestic production, enterprises now have an excess of urea that they can export.

DAP, NPK and potassium fertiliser prices have decreased but are still high.

Prices of many fertilisers are likely to decline due to abundant supply and a sharp drop in world fertiliser prices.

According to the Viet Nam Fertiliser Association, fertiliser prices are falling rapidly as the cost of natural gas, an important raw material for fertiliser production, and farmers' demand both decrease.

After China started reopening and no longer restricted the export of 29 types of fertilisers, the supply of fertiliser on the world market was no longer in short supply.

Though fertiliser prices rose in proportion to the world oil and gas price at the beginning of last year, the price of fertilisers has decreased sharply, especially urea, from the fourth quarter of last year.

As the output selling price is low and slow, inventory pressure and financial costs are extremely large, and profit margins are falling rapidly.

Vu Xuan Hong, Deputy General Director of Lam Thao Fertilisers And Chemicals JSC, shared that the drop in fertiliser prices helped farmers reduce difficulties, especially in the context of high fertiliser prices in the last two years.

However, the current situation also puts great pressure on fertiliser enterprises, especially agent systems.

As the price fluctuated week by week, day by day, many farmers were waiting for further price drops to buy, Hong said.

He added that some dealers bought fertiliser when the price was still high, but the price was decreasing daily, and the goods were sold slowly, so there was a lot of inventory.

This is forcing fertiliser enterprises to find solutions to their difficulties, said Hong.

Supe Lam Thao has also been implementing a series of solutions such as reducing production costs to help lower product costs, improving technology and especially launching new fertiliser products, which were suitable for a variety of crops, said Hong. 

UAE businesses urged to invest in Da Nang at dialogue in Dubai
     
A call for investment has been made to businesses in the United Arab Emirates (UAE) to develop several key sectors at a dialogue in Dubai attended by the Chairman of Da Nang's People's Committee, Le Trung Chinh.

 The ambitious plan proposed at the 'Invest in Da Nang' dialogue includes establishing a free-duty zone, an international finance centre, a seaport, and the growth of logistics, tourism, hi-tech industries and information technology.

The launch of a direct air route between Dubai and Da Nang is also being proposed in the near future. This move represents a significant step towards strengthening economic ties between the two nations and is expected to create a range of opportunities for investors and residents alike.

Chinh said the city has been in discussions with Emirates Airlines on opening a route connecting Da Nang and Dubai to boost tourism, trade and business.

He also called investors from Dubai to review the development of the key Lien Chieu seaport that began construction last December with an investment of US$137 million.

He said the port would play as one of the key gateways to the East Sea, ASEAN, and northeast Asia and a rendezvous of the national multi-traffic system, including road, railway and airway.

The city said the zone would be a magnet for global trade, service providers, and developers.

He added that the city expects exports to the Middle East and African markets via Dubai to grow.

At the dialogue, representatives of Lulu supermarket chains said it would plan a survey in building logistics centres in central Viet Nam and Da Nang.

According to Viet Nam-Dubai Tradehub (Vietgate) company, Vietnamese farm produce, seafood, footwear and garments, electronics, confectionary, fruits and vegetables and foodstuffs were favoured by customers in Dubai, though not many made-in-Viet Nam brands or business links were built in the market.

Series investment and tourism promotions were held in the UK, Germany, the Netherlands, India, South Korea, Malaysia and Singapore between 2021-23.

Malaysia Airlines, Hong Kong Express Airways, Cambodia Angkor Air, Bangkok Airways, and Vietnam Airlines have rescheduled their services from Kuala Lumpur (Malaysia), Hong Kong (China), Siem Reap (Cambodia), Narita (Japan) and Bangkok (Thailand) to Da Nang between 2022-23.

Six IZs and a high-tech park have attracted 503 projects, including 130 FDI worth $1.8 billion and VND27.56 trillion ($1.2 billion) from domestic investors.

Extra 200 pharma products approved for circulation

The Drug Administration of Vietnam, under the Ministry of Health, has given the circulation registration numbers for roughly 200 pharmaceutical products in response to the rising demand nationwide.

Authorized drugs will be used for mild illnesses and specialized treatments, such as digestive, diabetic, cardiovascular, skeletal and respiratory disorders.

Around one-third of the medicines are manufactured domestically, with six approved for a three-year circulation. The circulation period of the rest is five years.

As for imported drugs, nearly 100 items were granted a circulation period of five years.

Vietnam has recently faced a severe lack of drugs and medical equipment, particularly in major public hospitals in Hanoi and HCMC.

The shortfall is partly due to the expiry of certain medicines’ registration numbers and a personnel shortage in management agencies, in addition to obstacles in the dossier process for specialized equipment purchases, the media reported.

In 2021, the country’s pharmaceutical business was valued at US$6.92 billion, with locally produced medicines making up 46% of the total.

Vietnam currently has 228 medicine manufacturing facilities meeting GMP-WHO standards, according to the Vietnam News Agency.

Investor wants contractor replaced in long-delayed road project

The investor of the long-delayed Dong Van Cong Street expansion project has proposed the HCMC government authorize it to replace the contractor with a sub-contractor to get the remaining workload done.

The project to expand a section of the street from Giong Ong To 2 bridge to the My Thuy intersection in Thu Duc City is already more than two years behind schedule.

The investor of the project — the Transportation Works Construction Investment Project Management Authority of HCMC — has written to the municipal government seeking permission to appoint a sub-contractor to execute the half-finished work, reported the Vietnam News Agency.

In late 2019, the Transportation Works Construction Investment Project Management Authority signed a contract with Lac An Joint Stock Company to expand Dong Van Cong Street, but the contractor has failed to meet the project’s schedule, said the investor.

The investor, therefore, proposed terminating the contract with Lac An Joint Stock Company and putting up for tenders the remaining components or assigning a sub-contractor to execute the outstanding works of the contract.

Of the above two options, the first one taking six months or longer to implement would not ensure the execution progress and completion date of the project, according to the investor, adding that it would prefer choosing a sub-contractor to take charge of the remaining works.

If the second proposal is approved, the investor would find a qualified sub-contractor to carry out the remaining works this month.

According to the HCMC Department of Transport, the project has favorable conditions for execution as its site clearance has been completed. However, the project is 27 months behind schedule.

Fuel wholesalers reduce discount rates, posing a risk to petrol retailers

According to reports from multiple petrol retailers, fuel wholesalers and distributors have once again lowered discount rates, which could result in the closure and suspension of operations for petrol retailers due to losses.

Some fuel wholesalers have announced a reduction in the discount rate for dealers as of March 8, with the new rates being VND400-500 per liter for oil products and VND700 per liter for gasoline products. 

Some general warehouses in the North have announced new discount rates of VND300-400 per liter for gasoline and VND100 per liter for oil. Certain warehouses have even announced a zero dong discount per liter for both gasoline and oil products from March 8th. 

According to the dealers' calculations, the discount must be over VND1,000 per liter for profitability. While the discount is at risk of falling to zero dong per liter, many dealers have reported difficulty in obtaining supplies in recent days.

In response to this situation, where wholesalers are squeezing discounts again and potentially causing a shortage of gasoline and oil as seen in 2022, the Ministry of Industry and Trade has sent a document to fuel wholesalers and distributors on March 8, requesting a reasonable adjustment of discounts to ensure that the supply chain is not disrupted. The ministry has also proposed implementing some solutions to ensure fuel supply for the domestic market.

Specifically, the Ministry of Industry and Trade has requested fuel wholesalers to import petrol products following the plan assigned at the beginning of the year and the additional import amount provided on February 24.

Fuel wholesalers must also disclose the source of imported goods and the sales for the market on the company's website and report to the Ministry before the 20th of each month. In case any gasoline retail station lacks goods to sell, the supplier must take responsibility and be handled in accordance with regulations.

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