Industry insiders and policymakers have cautioned that Vietnam is facing an uphill battle to achieve its goal of 6% export growth this year.

Global demand for Vietnamese products has been dwindling, with the country's major exports, such as furniture, footwear, and seafood, receiving far fewer orders than last year.

The General Department of Vietnam Customs revealed that, by the end of February, the country's electronics exports had dropped by 13.9% to 6.87 billion USD compared to 2022.

Additionally, machinery and tools exports reported a 1.6% decline to 6.4 billion USD, while textile exports dropped by a significant 19.6% to 4.55 billion USD. Footwear and furniture exports also suffered losses, declining by 15.8% and 34.8%, respectively, to 2.76 billion USD each.

Mobile phones and parts remained among a handful of exports that reported a positive growth at 7.6%, or 9.42 billion USD, thanks to Samsung introducing its 2023 models earlier than usual. 

The textile sector was particularly affected by lower global demand, according to Minister of Trade and Industry Nguyen Hong Dien, with a total export worth of 4.5 billion USD, a 20% decrease year-on-year. 

"Lower demand in the world's major markets such as the US and China, on top of a large inventory held by retailers, have resulted in fewer orders placed this year," said Cao Huu Hieu, director-general of Vinatex, one of the country's largest textile groups. 

The seafood sector has seen fewer orders since the end of 2022, with demand from the US and the EU nosediving by 35% and 8%, respectively. 

Vietnam's seafood export during the first two months of the year was reported at 1.1 billion USD, a 26% decrease from last year. Tra fish, in particular, was down by 38%, shrimp by 37% and tuna by 27%. 

Furniture was down by 35%, with the industry's forecast remaining grim as large global markets such as the US and the EU will likely reduce spending due to inflation, economic setbacks and lower purchasing power. 

Meanwhile, Vietnamese furniture makers still struggled to meet said market's product origin and standards regulations. High inventory and a damaged distribution network after the pandemic were other contributing factors. 

Several measures have been taken to support businesses, according to the Ministry of Industry and Trade (MoIT), including trade promotional and networking events.

Vietnam's trade representative offices overseas have been told to step up efforts to help businesses enter new markets and resolve on-going issues with their entry. 

The ministry said while businesses wait for traditional markets such as the US, the EU and Japan to recover, they must seek out other alternatives, especially markets in the Middle East, Eastern Europe, Latin America and South Asia.

Steering Committee for restructuring credit institution system established

Prime Minister Pham Minh Chinh has issued Decision 213/QD-TTg to establish a steering committee for restructuring the system of credit institutions.

Under the document, PM Chinh is the head of the committee while Deputy PM Le Minh Khai and Governor of the State Bank of Vietnam Nguyen Thi Hong are vice heads. Its members include leaders of ministries and departments.

The committee is responsible for supporting the PM to direct and implement solutions to restructure credit institutions associated with bad debt settlement following Decision 689/QD-TTg dated June 8, 2022, on approving the Scheme on Restructuring the credit institution system associated with the handling of non-performing loans for the 2021 - 2025 period, and amending and supplementing documents.

It is also responsible for proposing solutions for solving important problems, difficulties, and challenges in restructuring the system of credit institutions.

The committee will also assist the PM in pushing ministries, branches, and localities to handle issues within the scope of Decision 689. It will perform other tasks relating to restructuring the system of credit institutions associated with bad debt settlement as the PM requests.

More and more Indonesian businesses look to expand investment in Vietnam and vice versa, and the Indonesian side wishes to further promote these activities, Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) Arsjad Rasjid has said.

During an interview granted to the Vietnam News Agency on the sidelines of his working visit to Vietnam on March 13 – 14, Rasjid said several big Indonesian companies have invested in Vietnam such as Ciputra in real estate and Japfa in husbandry, expressing the belief that the goal of lifting two-way trade between Vietnam and Indonesia to 15 billion USD by 2028 is within reach.

According to Rasjid, many Singaporean institutional investors, whom he met in Singapore before his trip to Vietnam, expressed their desire to increase investment the ASEAN region, especially Indonesia and Vietnam because they believe in political stability, security, and economic growth in both nations. 

For this reason, Vietnam and Indonesia should further promote trade and investment cooperation in many fields to fully tap the potential.

Rasjid, who is also Chairman of the ASEAN Business Advisory Council (ASEAN - BAC) in 2023 said through his trip, which took him to Singapore, the Philippines, Malaysia and Vietnam, he wants to gain better understanding about the interests and concern of businesses, especially small-and medium-sized enterprises (SMEs), about the ASEAN. Based on the understanding, he and ASEAN-BAC will join relevant agencies in ASEAN countries to build suitable policies to promote economic growth and prosperity throughout the region. 

He stressed that ASEAN is currently a bright spot in the global economy with an average growth of 5.5%. In addition, ASEAN countries have performed well in controlling inflation and ensuring political and economic stability.  

However, in order to fully exploit their potential, regional countries need to strengthen connections and boost trade and investment to turn ASEAN into a centre promoting global economic growth, he said, adding that businesses and governments of ASEAN member countries should also step up public-private cooperation to address major issues related to supply shortages, rising food and energy prices, and uncertainties caused by the US – China trade competition and the effects of the Russia-Ukraine conflict.

Rasjid said his trip to Vietnam aims to promote seven legacy breakthrough programmes of ASEAN with five priorities of digital transformation, sustainable development, food security, medical improvement and trade facilitation. 

Regarding digital transformation, Indonesia proposes three digitisation programmes focusing on fin-tech and e-commerce including ASEAN QR Code, ASEAN P2P (peer-to-peer) Lending Platform and WIKI Startup, which will focus on supporting MSMEs in accessing necessary financial resources, promoting transactions, reducing cross-border transaction costs for regional payment activities, increasing connection and exchange between regional businesses.

To enhance health resilience, Rasjid introduced the “ASEAN One Shot” campaign, which prioritises the development of a long-term regional vaccination programme, promotes medicine research and production capacity for ASEAN to better cope with future pandemics.

He also proposed the establishment of the ASEAN Net Zero Hub and the Carbon Centre of Excellence, saying that Indonesia wants ASEAN to be part of the global fight against climate change.

For food security, ASEAN-BAC will lead programmes to ensure food security and support farmers, fishermen, and SMEs operating in agriculture and fishery to join the global supply chain.

Indonesia looks to expand agriculture and fishery cooperation with other ASEAN countries, especially with Vietnam after the two countries have completed negotiations on the delimitation of the exclusive economic zone (EEZ), he said.

Rasjid affirmed that his country will continue to coordinate with other ASEAN members to promote economic and trade cooperation activities, and actively support businesses, especially MSMEs, to engage more deeply in business and trade activities in the region.

Quang Ninh province boosts tourism development with new sites and tours

The People’s Committee of northeastern Quang Ninh province, home to UNESCO-recognised Ha Long Bay, will organise a conference on tourism development in Ha Long city on March 17, heard a press conference on March 14.

The event is expected to bring together about 350 representatives from ministries, departments, sectors, agencies, localities, organisations, travel associations and companies, airlines, and embassies of some countries in Asia and Southeast Asia.
 
To fulfil its target of welcoming 15 million tourists and earning 32.4 trillion VND (1.36 billion USD) this year, Quang Ninh plans to introduce 24 new tourism products in April.

It will review the province’s tourism development in 2022 and previous years, and put forth orientations for 2023 and beyond.

Through discussions, the participants will seek solutions to boost local tourism, and promote digital transformation in the industry.

They will also work on how to raise the quality of and diversify tourism products, and utilise modern infrastructure to spur tourism development.

Cooperation agreements between Quang Ninh and other cities and provinces, along with those between travel companies will be inked on this occasion.

Sidelines events include exhibitions displaying tourism and “One Commune, One Product” (OCOP) products.

Accordingly, these products will be exploited in Ha Long and Mong Cai cities, and Van Don, Co To and Hai Ha districts.

The provincial Department of Tourism has proposed the allowance of five tour routes on Bai Tu Long Bay, of which two from Ao Tien International Port in Van Don district will be put into operation soon.

To better exploit the new products, Nguyen Thi Hanh, Vice Chairwoman of the provincial People’s Committee, asked localities to make plans to ensure facilities, human resources and service quality are ready for peak seasons.

The province has also prepared scenarios and taken measures to serve foreign visitors, especially those from China, as the COVID-19 pandemic is under relative control around the world.

Quang Ninh welcomed about 1.7 million visitors and earned some 3 trillion VND from tourism services in February.

In the first two months of this year, the figures stood at 3.35 million tourists, doubling that in the same period last year, and more than 6.5 trillion VND in total tourism revenue.

Nearly 36.6 trillion VND worth of government bonds raised in February

The State Treasury raised nearly 36.6 trillion VND (1.58 billion USD) worth of Government bonds, or 79.12% of the total G-bonds on offer, via 12 auctions on the Hanoi Stock Exchange in February.

In the first two months of this year, the State Treasury raised more than 69.42 trillion VND, or 64.28% of the Q1 plan and 17.36% of the yearly plan. Most of them were 10-year and 15-year bonds, accounting for 52.19% and 45.21%, respectively.

Notably, their interest rates trended down, reaching 4.12% for 10-year bonds and 4.32% for 15-year bonds, down 0.24% from those in the last auction of the previous month.

On the secondary market, the trading value of G-bonds during the month reached 111.49 trillion VND, up 96.32% month-on-month, with outright transaction value making up 65.16%. The remainder were those traded via repurchase agreements.

During the month, the transactions of commercial banks accounted for 70.48% while those of securities companies were 29.52%.

Vietnam Airlines Group to offer over 20 million seats this summer

Vietnam Airlines Group, which comprises Vietnam Airlines, Pacific Airlines and Vietnam Air Services Company (VASCO), has announced that it will provide more than 20 million seats on domestic and international routes from April to October, to meet travel demand in this summer’s peak travel season.

This figure represents an increase of nearly 25% compared with the same period last year.

More than 14 million seats will be offered on domestic flights and the rest will be on international routes.

Every day, there will be nearly 30 round-trip flights on the Hanoi-Ho Chi Minh City route and more than 35 round-trip flights between Hanoi/Ho Chi Minh City and Da Nang. Flight frequency may continue to increase during the holidays and peak summer periods.

Vietnam Airlines plans to resume frequency on routes to Europe, Australia, China, Hong Kong (China) and Cambodia as well as to increase flights on peak occasions on routes to Japan and the Republic of Korea.

The airline will raise the frequency from 6 to 7 flights per week on the Hanoi - Paris (France) route, from 8 to 10 flights per week on the route to Germany, from 3 to 5 flights per week on the route to the UK. The carrier will operate 7 flights per week, instead of 6, on the Ho Chi Minh City-Sydney and the Ho Chi Minh City-Melbourne routes.

As for Asia, the airline will resume flights between China and Da Nang city from April 27. From July, Vietnam Airlines will increase the frequency of daily flights on routes between Hanoi/Ho Chi Minh City and Hong Kong (China) and Da Nang - Narita (Tokyo, Japan).

In July and August this year, the national flag carrier plans to raise the frequency of flights between Ho Chi Minh City and Narita from 11 to 14 flights per week and add more flights between Hanoi/Ho Chi Minh City City and Siem Reap (Cambodia).

To stimulate tourism demand in the coming time, Vietnam Airlines will introduce incentive programmes for passengers as well as participate in tourism promotion at domestic and foreign destinations. The airline plans to focus on those routes with strong potential but not widely known by tourists.

It will also focus on upgrading the quality of products and services to meet the increasing requirements of passengers.

HCM City speeds up use of invoices generated from cash registers

The Ho Chi Minh City People's Committee has asked relevant departments and agencies to apply measures to accelerate the use of e-invoices generated from cash registers, towards ensuring the implementation of the set roadmap.

Accordingly, the municipal Department of Taxation was ordered to coordinate with departments, sectors, the People’s Committees of Thu Duc city and districts and relevant units to implement the scheme.

Attention has been paid to solving obstacles related to policy, professional process and application of software in the scheme; as well as enhancing communication campaigns to raise taxpayers’ awareness of the benefits of using e-invoices generated from cash registers.

The municipal Department of Planning and Investment was tasked with notifying and instructing businesses, business households, and individuals to register the use of e-invoices created from cash registers when they register to establish a business and business activities.

HCM City is one of three localities that have piloted the use of e-invoices generated from cash registers. However, after more than two months of implementation starting December 15, 2022, the number of taxpayers successfully registered in the city remains low, reaching only 278 as of February 26 this year.

Through a preliminary survey, HCM City has 266 enterprises and 5,268 business households, which as trade centres, supermarkets, restaurants, hotels, entertainment service providers, are the targets of the scheme.

Vietbuild 2023 underway in Hanoi

The Vietbuild Hanoi 2023 exhibition officially kicked off at the National Architectural Planning & Construction Exhibition Centre on March 15, featuring the latest construction materials, technologies, and interior and exterior decor products, and real estate products.

The first event of this kind, the exhibition attracted over 1,500 booths from 350 domestic and international businesses.

On display are property projects, security equipment, electrical equipment, doors and accessories, smart housing systems, internal and external decorative items, LED lighting systems, construction materials, solar energy systems, advanced technology solutions for construction, and architectural products.

Addressing the opening ceremony, Deputy Minister of Construction Nguyen Van Sinh said that the real estate market plays a very important role as it affects many industries, including construction materials, and interior and exterior decoration.

The exhibition offers a platform for businesses to seek cooperation opportunities, as well as gain a better understanding about relevant policies, he noted.

Vice Chairman of the municipal People's Committee Duong Duc Tuan said the exhibition contributes to promoting the supply-demand connection, supporting production and business activities, and enhancing partnerships between domestic and foreign enterprises.

He emphasised the importance of the construction industry for the capital city’s industrialisation, modernisation and economic growth, saying that many key tasks have been implemented, including concertedly developing transport and housing infrastructure.

The city is determined to speed up key projects related to transport infrastructure, and industrial parks to better serve the demand of the people, he went on.

Within the framework of the five-day event, a seminar on low emission construction materials and housing construction, a business forum will be organised.

Agritourism to become integrated economic sector: Minister

Minister of Agriculture and Rural Development Le Minh Hoan on March 15 said that agritourism should be turned into an integrated economic sector with agricultural products and typical characteristics of rural areas being used as resources to serve the tourism industry.

Speaking at a teleconference on tourism, Hoan said that the National Strategy for Sustainable Agriculture and Rural Development for the 2021-2030 period, with a vision to 2050, already approved by the Prime Minister, affirms that rural tourism development is identified as one of the fundamental solutions, a driving force for promoting sustainable new-style rural areas, contributing to bringing into play the advantages and distinctive values of agriculture, rural areas, and farmers.

At the same time, the development of new-style rural areas is the foundation to support and create favourable conditions for the diversified and sustainable development of agritourism. The National Target Programme on building new-style rural areas for the period of 2021-2025 has also added components to the development of agritourism.

Hoan said over the past time, agritourism has recorded strong growth, bringing new “fresh air” and vitality to rural areas.

Preliminary statistics showed that Vietnam currently has about 500 agritourism and rural tourism models.

Thanks to the models, people in remote areas become more confident and active, many villages got prosperous and values of agricultural products as well as One Commune One Product (OCOP) products have increased thanks to tourism businesses.

Rice fields, terraced fields, orchards, rivers, streams, ponds, lakes, and fishing villages are all connected to unique destinations on the visitors’ journey of experience. Knowledge, indigenous culture, folk cuisine, and traditional rituals are awakened thanks to tourism.

Agritourism does not only brings higher incomes to people, and economic benefits to localities, but also creates other intangible values that help popularise images of Vietnam's agriculture, and promote agricultural products right at the farms.

Agritourism also introduces and promotes images of Vietnam’s rural areas with diverse cultural identities and hospitable rural people. It also helps increase community connectivity, calling for jointly building green, clean, and beautiful countrysides and preserving its values.

However, Hoan said agritourism still faces difficulties as many localities have not yet seen the potential of this type of tourism and paid insufficient attention.

Many models were developed spontaneously, without making differences, he said, adding that supporting mechanisms and policies have not yet become the driving force to develop a tourism industry that brings both economic and social values.

Hoan said that it’s time to change the attitude towards the importance and values of agritourism so that it can become a part of the tourism industry.

He suggested the Ministry of Culture, Sports and Tourism consider adding agritourism to the National Tourism Programme to promote and enrich tourism resources.

Agritourism must be developed in a sustainable, inclusive, and multi-valued way. It effectively makes use of and promotes traditional values, production and farming practices, agricultural activities, and the typical ecological environment, associated with digital transformation. The community should be placed at the centre when developing tourism products, according to the minister.

It is necessary to strengthen the connection in agritourism, and form high-quality, diversified, and attractive tours and routes, he added.

India looks to promote trade, investment cooperation with Da Nang

Indian Ambassador to Vietnam Sandeep Arya on March 15 underlined the need to promote economic, trade and investment cooperation between the two countries, saying that this is a good time for the two sides to intensify similarities, thus fostering development cooperation.

During a meeting with Secretary of the Party Committee of Central Da Nang city Nguyen Van Quang, the diplomat stated that the embassy will serve as a bridge connecting businesses of the two sides.

He said he believes that the two sides will further step up good cooperation relationships, especially in education, people-to-people diplomacy and culture exchange.   

The ambassador stressed that he will persuade Vietnamese airlines to soon open more direct flights from Da Nang to some other Indian localities, saying that this move can open more cooperation opportunities between Da Nang’s tourism firms and hotel groups of India.

For his part, Quang briefed the guest on the city’s socio-economic development, and the potential for cooperation between the two sides to develop projects.

He said there is great potential and opportunities for Da Nang to cooperate with India but the relations between Da Nang and Indian localities still remain limited.

The city has not yet established twinning relations with any locality in India, he said, expressing the hope that the ambassador will pay attention to connecting an Indian locality with Da Nang.

He suggested the Indian diplomat act as a bridge to promote investment cooperation in the fields of urban infrastructure, hi-tech industry, information technology, pharmacy, healthcare, and tourism, affirming that Da Nang will select potential fields with high feasibility to prioritise cooperation with India in the near future.

As of 2022, Indian firms had poured capital into five projects in Da Nang with a total registered investment of about 14.7 million USD. There are three direct air routes connecting India and Da Nang. In the first two months of 2023, Da Nang attracted over 19,000 Indian tourists.

Da Nang hopes for further investment from RoK city

Secretary of the Da Nang municipal Party Committee Nguyen Van Quang said he hopes that the city of Daegu in the Republic of Korea (RoK) will cooperate with the Vietnamese central city and invest more in its hi-tech sector, along with education, training and tourism.

During a local reception on March 15 for Mayor of Daegu Hong Joon-pyo, Quang said Da Nang now has partnerships with many Korean localities, including Daegu, in various fields such as investment, trade, tourism, education, people-to-people and cultural exchanges. The RoK is also one of the key tourism markets of Da Nang.

According to him, a number of Vietnam’s models are using experience from the RoK such as the new rural development model. Da Nang is also focusing on developing hi-tech industries. Da Nang residents enjoy travelling to the RoK and vice versa.

He spoke highly of the mayor’s proposals regarding education and cultural exchange towards human development for economic growth, and wished that the two localities would strengthen cultural exchange activities, towards celebrating the 20th anniversary of their friendship and cooperation.

Hong, for his part, expressed his impression on Da Nang’s investment in human education. He said Daegu is developing hi-tech industry and education-training. So far, the Da Nang-Daegu flight service has resumed, opening up investment and cooperation opportunities in fields that both sides have advantages.

Lao Cai province welcomes first Chinese tourists after three years

Eighty Chinese tourists entered Vietnam via the Lao Cai International Border Gate on March 15 afternoon, marking the return of Chinese travellers to the northern mountainous province of Lao Cai after a three-year hiatus caused by the COVID-19 pandemic.

The visitors came to Vietnam after China included Vietnam on the list of countries to which group tours are resumed on a trial basis from March 15.

Coming mainly from Yunnan and Anhui provinces of China, they will have a four-day-and-three-night tour of Ha Long city in Quang Ninh province and Hanoi capital.

A tourist from Anhui province said she is happy to visit Vietnam, and that she waited for the trip for a long time but it was not until COVID-19 was brought under control in China that she could travel to Vietnam.

Truong Thi Hai Yen, a representative of the Tung Lam Travel and Trading Co. Ltd which serves the Chinese tourist group, said the firm has made thorough preparations to meet visitors’ demand and provide the best services.

For his part, Vuong Trinh Quoc, head of the economic zone management board of Lao Cai province, noted that to welcome Chinese tourists, relevant authorities have been ordered to create the best possible conditions for handling entry procedures. The management board has also worked to repair and upgrade infrastructure to facilitate entry and exit activities.

The arrival of the first group of Chinese visitors is expected to help reactivate the Chinese tourist market after a long pandemic-triggered stagnation.

Quang Binh, Thailand’s Sakon Nakhon province boost cooperation

A conference seeking ways to boost cooperation in economics, trade, investment and other fields between Quang Binh province in central Vietnam and Sakon Nakhon province was held in the Thai northeasten locality on March 14-15.

Speaking at the event, Sakon Nakhon province’s Governor Jureerat Thepart expressed her belief that the conference will help promote cooperation in trade and investment between the two localities in particular and the two nations in general.

Vice Chairman of the Quang Binh provincial People’s Committee Phan Manh Hung briefed the participants on the province’s advantages in trade connectivity with Thailand.

Since the signing of the memorandum of understanding on establishing bilateral friendship and cooperation in 2006, their relations have seen positive developments.

According to him, there remains ample room for cooperation between Quang Binh with Thai localities in general and Sakon Nakhon in particular.

He expressed his hope to discuss with Sakon Nakhon about demands and cooperation opportunities to foster collaboration in trade, investment, tourism, education, agriculture and transport.

At the conference, the enterprises from each country signed 16 memoranda of understanding to serve as a foundation for the establishment of business cooperation in the coming time.

Green logistics key to green transition process

Green logistics is increasingly popular on the business radar, given consumers' interest in environmentally friendly products and the trend in green transition now underway globally.

A 2022 report on Vietnam’s logistics industry defined the term as logistics activities that protect the environment and mitigate negative impacts, hence a sustainable balance between socio-economic and environmental goals.

The report showed that up to 73.2% of the firms surveyed said they have made green logistics part of their business strategies.

According to the survey, the biggest barrier to Vietnamese companies in greening up their logistics activities is finances.

Experts said green logistics is an inevitable trend of the future, as it reflects positive corporate responsibility and helps firms improve their competitiveness. Many global logistics groups have been requesting their service providers adhere to a number of emissions standards.

They advised firms to take advantages of assistance and incentives from the State and other organisations, and stressed the need for the authorities and competent agencies to complete the related legal framework, issue policies encouraging such sustainable operations, and plan and develop infrastructure facilitating multimodal transport.

Vietnam ranks 11th out of the 50 countries in the 2022 Emerging Market Logistics Index released by logistics and freight provider Agility.

The country’s freight and logistics market is expected to grow at a compounded annual rate of 5.5% in 2022 – 2027.

FDI sector’s foreign trade down in Jan-Feb

Sharp drops in new orders led the foreign direct investment (FDI) companies achieving only US$68.2 billion in import and export value in the first two months of this year, falling by US$9.15 billion against the same period last year.
Recent data of the General Department of Vietnam Customs showed that the country saw foreign trade dropping 13.4% to US$95.83 billion in January-February.

Imports and exports of FDI businesses in the two-month period totaled US$68.2 billion, down 11.8% while the respective figures of local enterprises were US$27.62 billion and 17.1%.

In February alone, FDI enterprises reported export revenue of US$9.23 billion, declining US$914 billion against the previous month.

Total exports of the FDI sector in January-February amounted to US$37.34 billion, a 7.3% drop over the same period of last year. The sector’s import spending decreased by 16.8% to US$30.87 billion.

According to the Ministry of Industry and Trade, two major export markets of Vietnam, the U.S. and the EU, achieved economic growth of under 1%, thus affecting their demand for imports.

The Ministry of Industry and Trade is taking measures for boosting market and product diversification to reduce reliance on some markets and products. A focus will be given to Northern Europe, Eastern Europe and Latin America.

Thorough research required for HCMC-Can Tho railway project

The management board of railway projects and consultants need to thoroughly study the HCMC-Can Tho railway project and evaluate all factors in line with the law on investment, said the Ministry of Transport.
The Transport Ministry asked the management board of railway projects and consulting units to review the traffic volume estimate and evaluate the project’s socioeconomic impacts and cost-effectiveness, the Vietnam News Agency reported.

Other factors such as the planning of the national railway system, the North-South expressway project, a rail line leading to the Cai Mep-Thi Vai port system, and the Trans-Asia railway must be taken into account when weighing the HCMC-Can Tho railway.

Besides, the railway projects management board and consultants should look into the pros and cons of technology options, technical standards and speed limit, according to the ministry.

The management board was also required to draw up detailed plans for the project’s progress, its feasibility study, technical design and selection of qualified contractors through bidding and report to the Transport Ministry this month.

The 174-kilometer-long HCMC-Can Tho railway would connect Binh Duong Province and Can Tho City, and pass through HCMC, and Long An, Tien Giang and Vinh Long provinces. The project needs an estimated US$9 billion and could be built under the public-private partnership format.

Fuel retailers propose base-price and commission setting council

Fuel retailers have proposed the ministries of Industry-Trade and Finance establish a council for determining the base prices and commissions for fuels.
The proposal was mentioned in their letter to the prime minister yesterday, March 14.

Government Decree 95, issued in 2021, defines the base price as a price determined based on prices of domestic and imported fuels and is the basis for the authorities to determine retail prices of fuels.

The current base price is set at VND1,350 per liter for wholesale and retail prices, including VND1,050 for operating cost and VND300 for profit.

However, Circular 104 on base fuel prices, issued by the Ministry of Finance in 2021, does not specify the profit margin of petrol trading, enabling major fuel traders to take advantage of the legal loophole and take all the profit, said Giang Chan Tay, director of Boi Ngoc Company.

This led to a plunge in the commission offered by major fuel trading firms last year, forcing petrol trading agents to operate at a loss, he added.

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