Hanoi –Hai Phong expressway will apply electronic toll collection (ETC) only from 0:00 on May 5 under a pilot scheme of Hanoi-Hai Phong Expressway Operation and Management Company Limited.

Accordingly, the manual toll collection and touch-and-go card services will be suspended on the Hanoi-Hai Phong Expressway from that day.

Vehicle owners, who have been using the prepaid touch-and-go cards, are recommended to use up the balance in their cards before April 30. Otherwise, they will be supported to transfer the balance to the accounts of another vehicles. The balance left in the accounts will not be returned after that day.

Dong Nai hands over nearly 360 hectares for Long Thanh airport construction

Nearly 360 hectares of land has been handed over to make way for the construction of the first phase of Long Thanh International Airport since the beginning of this month, according to the People’s Committee of the southern province of Dong Nai.

To construct the airport, the province has to clear some 5,000 hectares of land, including more than 2,530 hectares for the first phase.

It has so far handed over about 1,600 hectares, and another 300 hectares is expected to be delivered by the end of this month.

Covering a total area of more than 5,580 hectares, the airport will be located in six communes in Long Thanh District in Dong Nai Province. The airport’s total investment is 336.63 trillion VND (14.47 billion USD), with construction divided into three phases.

Transport costs rise as fuel prices surge

The sharp rise in gasoline prices is pushing up transport costs and thus fares, bus operators said.

Eleven transport businesses operating at the Mien Dong (Eastern) bus station have announced a fare hike of 20 percent starting at the end of this month. Operators have suffered losses as a result of a sharp drop in the number of commuters and the relentless rise in fuel prices.

Sai Gon New Port Corporation has announced that it would increase container freight rates by 10-30 percent from April 1. The rising fuel prices are pushing up the costs of freight, loading and unloading, forcing it to raise the rates, it said in a statement released on Sunday. Container truck rates will rise by 10 percent between Dong Nai Port and Cat Lai Port, and 30 percent between inland container depots to the Tan Cang- Cat Lai Terminal.

A spokesperson for the HCM City Cargo Transport Association said its members would increase freight rates in the next few days.

The Ministry of Transport expects to provide various kinds of support to help transport businesses, which have been hit hard by the soaring petroleum prices, survive. 

Online Travel Mart opens in Da Nang city

More than 200 booths of companies working in the travel industry and over 60 partners from Japan, the Republic of Korea, China, India, and Southeast Asian countries have taken part in Danang FantastiCity 2022 Online Travel Mart 2022 which opened on March 17 in the central city of Da Nang with a ceremony livestreamed on the event's fanpage.

Viettel Group has just signed a Memorandum of Understanding on cooperation in digital transformation and smart city construction in the 2021-2025 period with the People's Committee of Da Nang City, Binh said. Particularly, Viettel has developed a digital ecosystem for the tourism sector with a smart travel card solution, a tourism trading floor and a virtual travel exhibition, contributing to improving the tourism service quality of the city.

A range of activities will also be staged during the event, including business matching, which enables participating firms to meet potential Vietnamese partners to share information, connect with one another, and expand ties.

Visitors will have chances to take part in the “Fantastic Hour” promotion programme and virtual tour combined between destination video and VR360 virtual reality application. The travel mart will take place from March 17 to 25 at danangfantasticity.com or travelbook.vn/danang.  

Banks ensure fuel firms have access to more credit

The State Bank of Vietnam (SBV) has issued Document No 1509, asking commercial banks to raise credit limits for a number of fuel firms, particularly those who import extra fuel at the request of the Ministry of Industry and Trade (MoIT).

The list of the firms and the importers can be found on the ministry’s website and in Decision No 242.

SBV said that commercial banks evaluate and grant credit extensions to the above-mentioned firms in accordance with current banking regulations.

In case issues arise during the evaluation and approval process, they have to report on the issues to the Governor of the SBV.

They are also requested to report each month to the Department of Credit for Economic Sectors on any credit granted to the firms.

Additionally, they are urged to step up reforms, simplify internal processes and diversify their banking products to facilitate credit.

First locally-assembled electric scooter exported to Europe

Neo's electric motorcycle model, the first electric scooter produced by Yamaha and assembled in Vietnam, is set to be exported to Europe this April.

The scooter made its debut in Europe on March 10, and the first batch of products are expected to change hands by the end of April.

Currently Yamaha has a production line in Hanoi which is set to churn out approximately 10,000 motorcycles on request in the first year. However, the firm has yet to sell Neo’s electric scooter in Vietnam.

Before Yamaha, some motorcycle manufacturers with local factories exported two-wheeled vehicles to the European, Indian, and Southeast Asian markets.

Rising investments in cold chain storage

Savills, a global real estate services provider, reported that Viet Nam’s cold storage segment was growing and forecast to be worth US$295 million by 2025 with an annual growth rate of 12 per cent.

Savills said modern commercial retail was the driving force behind the industry growth, and about 80 per cent of demands came from the food industry.

In 2019, Viet Nam had 48 refrigerated facilities with a total capacity of 600,000 shelves.

Savills believed demands for cold storage in Viet Nam would continue to rise steadily, creating more room for investments in the future.

Binh Dinh attracts 16 domestic projects worth $65 million

The central province of Binh Dinh has lured 16 new domestically-invested projects with a total investment of nearly VND1.5 trillion (US$65 million) since the beginning of this year, the provincial Investment Promotion Centre announced this week.

These projects are in the industrial, tourism and real estate sectors. Among them is the VND800 billion Dam Thi Nai Amusement Park; a VND146 billion plant producing furniture from wood, metal, woven and fake rattan, and an urban area valued at over VND147 billion.

In terms of foreign investment, the province has not had any new projects so far this year. Currently, it is home to 86 foreign-invested projects with a total registered capital of over $1 billion.

Japan is the province's largest foreign investor with 18 projects, worth $89.5 million; followed by Singapore with 15 projects valued at $140 million and Hong Kong with 10 projects capitalised at $92 million.

PV Power wants to divest completely from EVN International

PV Power (POW) has just announced approval for the plan to transfer its shares in EVN International JSC (EIC).

Accordingly, PV Power plans to divest more than 2.8 million EIC shares, equivalent to 7.85 per cent of capital.

The transaction is expected to be done by order matching method on the Ha Noi Stock Exchange (HNX).

EVN International operates in the field of electricity generation and distribution.

In the shareholder structure of EVN International, Power Generation Corporation 1 is the largest shareholder holding more than 26 per cent of capital, while Pha Lai Thermal Power JSC is the second-largest shareholder with more than 19 per cent capital. The remaining shares belong to a number of other institutional and individual shareholders.

PV Power has also announced to divest all 30 million VLP shares of Viet Lao Electricity JSC, reducing its ownership from 8.64 per cent to 0 of charter capital.

BIDV Securities Company (BSC) to issue over 65.73 million shares to Hana Financial Investment

The Board of Directors of BIDV Securities Company (BSC) has approved issuing 65.73 million stocks as private placement to Hana Financial Investment Co Ltd (HFI).

With the stock purchase, under Resolution No 223/NQ-BSC, HFI will hold a 35 per cent BSC’s stake. The total value of the transaction is approximately VND2.7 trillion (US$118.3 million). Surplus equity is equal to VND2 trillion, equivalent to 1.6 times the charter capital of BSC. This is an important financial resource for BSC to promote business activities, invest in information technology, digital transformation, and develop a financial service and investment banking ecosystem.

USD74.2-million cable car project linking northern pagodas approved

Deputy Prime Minister Le Van Thanh has approved a VND1.7 trillion (USD74.2 million) cable car project to connect two popular pagodas in Hanoi and Hoa Binh Province.

The three-kilometre Huong Binh cable car route will run from Huong Pagoda in Hanoi’s My Duc District and Tien Pagoda in Hoa Binh’s Lac Thuy District.

Around 35 hectares of land will be used for the project in Hoa Binh. Seventeen hectares in Hoa Binh will be used for the construction of a station, restaurants, hotels and wharves. Meanwhile, 18 hectares in Hanoi will be used for building a station, office area and technical facilities.

The project, which is expected to become operational in 2024, will shorten travel time between Huong Pagoda and Tien Pagoda from a 60-minute drive to a ten-minute cable car ride.

The cable car route would have a capacity of 1,500 passengers every hour. 

Lien Khuong airport expansion project proposed

Lam Dong Province has asked the Government for approval of its plan to expand the Lien Khuong International Airport to increase its annual capacity to five million passengers by 2030.

The Central Highlands province proposed upgrading the airport’s runway, taxiways and apron to receive larger aircraft such as Airbus A380s and Boeing 787s, and building one more international terminal covering an area of 340 hectares.

The expansion project will cost some VND4.32 trillion and will be implemented under the public-private partnership format from 2023 to 2026.

The Lien Khuong airport is located in Duc Trong District and is 28 kilometers away from Dalat, a popular destination in the country. The airport can currently handle A320s, A321 and can serve two million passengers per year.

It has one runway that is 3,250 meters long and 45 meters wide and a passenger terminal covering an area of 1,000 square meters. In 2019, before the Covid-19 pandemic broke out in the country, the airport operated 15 domestic and international air routes, serving 2.1 million passengers annually. 

Mekong Delta to have nearly 1,200km of expressways by 2030

By 2030, the Mekong Delta is expected to have nearly 1,200 kilometers of expressways, including three southbound axes connecting the region with the southeastern region and three eastbound axes linking seaports and international border gates.

The three southbound axes include the 245-kilometer HCMC-Can Tho-Ca Mau section of the eastern North-South Expressway, the 180-kilometer Duc Hoa (Long An)-Rach Soi (Kien Giang) section of the western North-South Expressway and the 150-kilometer HCMC-Tien Giang-Ben Tre-Tra Vinh-Soc Trang Expressway.

Meanwhile, the three eastbound axes consist of the 191-kilometer Chau Doc (An Giang)-Can Tho-Soc Trang, the 212-kilometer Ha Tien-Rach Gia (Kien Giang) and the 188-kilometer Hong Ngu (Dong Thap)-Tra Vinh expressways.

Deputy Prime Minister Le Van Thanh has signed a decision approving the Mekong Delta’s planning in the 2021-2030 period with a vision to 2050 that includes the traffic system, the local media reported.

Accordingly, the region’s traffic system will be developed synchronously and widely, contributing to the socioeconomic development in the region and the country as a whole.

Besides expressways, national highways with a total length of nearly 1,900 kilometers connecting localities in which expressways have yet to be developed will be prioritized for upgrade.

A system of coastal roads will be developed in line with the road development plan in the 2021-2030 period with a vision to 2050. The coastal road system will be more than 785 kilometers long and connect Tien Giang, Ben Tre, Tra Vinh, Soc Trang, Bac Lieu, Ca Mau and Kien Giang.

As for the railway system in the region, a 174-kilometer route from HCMC to Can Tho will be built.

In addition, 13 inland cargo port complexes and 11 ports serving passengers with a combined capacity of 53 million tons and 30 million passengers, respectively, per year will be developed.

Meanwhile, seaports will meet the demand to complete customs clearance procedures for 64-80 million tons of cargo and serve 6.1-6.2 million passengers per year by 2030. The Tran De Port in Soc Trang Province was planned as a special seaport in the gateway of the Mekong Delta, while the Hon Khoai Port in Ca Mau will become a general port.

The Phu Quoc International Airport in Kien Giang will continue serving both domestic and international air passengers. Moreover, the Can Tho International Airport in the city of the same name will be a logistics center of the aviation sector in the Mekong Delta, while Rach Gia and Ca Mau airports will be flight training centers. 

Ministry orders sufficient supply of coal for thermal power plants

The Ministry of Industry and Trade has asked the Vietnam National Coal and Mineral Industries Group (Vinacomin) and the Dong Bac Corporation to provide coal for coal-fired thermal power plants as committed in their signed contracts.

The two firms must ensure their coal production capacities and take all the possible measures to ensure adequate coal for coal-fired thermal power plants, especially the BOT ones, so that Vietnam does not have to compensate for the suspension of these plants, the local media reported.

The ministry stressed that the insufficient supply of coal for thermal power plants would not be accepted in any case.

The ministry also asked the Vietnam Electricity Group to direct the National Load Dispatch Center to announce the monthly electricity mobilization plans to investors of coal-fired thermal power plants so that they can ensure the coal volume for electricity generation.

Earlier, some investors of thermal power plants complained to the Ministry of Industry and Trade that Vinacomin and Dong Bac Corporation failed to provide enough coal in the first two months of the year as stated in the signed contracts.

Vietravel Airlines asks Gov’t for help

Vietravel Airlines, a new aviation market entrant, has proposed the prime minister and the relevant agencies eliminate the financial obstacles facing the airline.

The airline proposed the financial aid package for air carriers be deployed quickly, meaning that the airlines can access zero-interest loans or preferential long-term loans.

The cash flows of aviation businesses are running out after a long period of hibernation due to the Covid pandemic. If there is no support from the Government, carriers will plunge into debt and fail to pay the salaries of employees, said the airline.

The carrier also proposed the Ministries of Finance and Transport and other competent agencies reduce import tax on aviation fuels to zero against the current 7% and lower the environmental protection tax on fuels to VND1,000 per liter.

North-South expy project lacks 8.4 million m3 of materials for ground leveling

The North-South Expressway project in the 2017-2020 period has been facing a shortage of 8.43 million cubic meters of materials for ground leveling, although Deputy Prime Minister Le Van Thanh had asked the chairpersons of localities to provide sufficient materials before March 15.

According to a report of the Ministry of Transport’s Transport Construction and Quality Management delivered at an online meeting on March 16 on the progress of the project in the 2017-2020 and 2021-2025 periods, the site for some 102 meters of the expressway project in the 2017-2020 period has yet to be handed over and one of the 83 resettlement areas have yet to be completed.

In addition, 201 locations of electric wires, over 7.1 kilometers of water pipelines and nearly 11,400 telecom cables have not been relocated, the local media reported.

As for the materials for ground leveling, the Ministry of Transport has worked with localities to provide 4.16 million cubic meters for the project. Procedures to supply another 8.43 million cubic meters for five subprojects are being completed.

Investors with broken promises should be barred from new projects

Housing investors who fail to deliver on their commitments to customers should be banned from developing new projects, proposed Nguyen Thi Thu Nga, deputy director of the HCMC Department of Construction.

Nga said that if they do not hand over homes, apartment building maintenance fee funds and home ownership certificates to homebuyers as pledged, they should be prevented from participating in new projects.

The proposal was made given a spike in the number of investors violating regulations, such as developing projects not in line with the approved plans, mortgaging projects and failing to fulfill financial obligations, resulting in the late handover of home ownership certificates to homebuyers.

However, just a few investors have been punished while their customers have been left at a disadvantage.

Under the prevailing regulations, those involved in irregularities in the supply of goods and services and earn a profit of VND5 million and more will face criminal charges. Meanwhile, many investors who have handed over projects for years but have failed to hand over home ownership certificates to customers have not faced criminal charges.

Gia Lai seizes trucks transporting 10,000 liters of fuel without license

The police in Gia Lai Province seized a tank truck which was transporting 10,000 liters of diesel oil without a flammable materials transportation license.

At 22:55 on March 14, while patrolling a street in this Central Highlands province, the traffic police of Krong Pa District stopped and examined a tank truck en route from Phu Tuc to Dat Bang Commune.

The police discovered that the truck was carrying 10,000 liters of diesel oil in its tank covered with a tarpaulin outside to trick the competent forces.

At the time of the inspection, the driver failed to show a petroleum and flammable materials transportation license as stipulated in the prevailing regulations.

The force imposed administrative sanctions on the driver for transporting flammable materials without a license. They then handed over the truck and the oil to the local investigators to further handle the case. 

International media, organizations have optimistic outlook on Vietnam's economy

International media and organizations such as the Asian Investor website, World Bank, Stuttgart newspaper, and DPA news agency have an optimistic outlook on Vietnam's economy.

The Asian Investor website quoted experts as saying that, thanks to the high-speed industrialization process and the rapidly growing middle class, Vietnam is ready to rise strongly after the Covid-19 pandemic and gradually become a destination of interest to foreign investors.

According to the article, the optimistic assessment is made based on a solid economic foundation thanks to the country’s stable gross domestic product growth, averaging 6 percent annually until 2019. The World Bank (WB) forecasts Vietnam's economy will grow 5.5 percent in 2022, while the International Monetary Fund (IMF) puts a higher figure of 6.6 percent, compared to 2.6 percent growth in 2021.

Mr. Jason Ng, VCG Partners CEO, forecasts Vietnam's GDP to grow by more than 7 percent this year with factors including a recovery in consumption. The proposal of reopening to foreign tourists and a stimulus package of US$15.3 billion were just approved in January 2022 to support businesses and workers affected by the pandemic.

The article emphasizes that one of the important economic drivers is industrialization with the support of foreign direct investment (FDI) which did not drop much despite the pandemic’s bad impacts on many social and economic aspects.

According to the World Bank, about US$15.8 billion of foreign capital has poured into Vietnam in 2020, slightly down from $16.1 billion in 2019. The official figure for 2021 is expected to remain at this level due to the strength of the country’s attractiveness of cheap labor, Vietnam's young and qualified workforce, stable currency, and incentives for businesses.

The article noted that Vietnam has signed many free trade agreements (FTAs) with the US, the European Union (EU), China, Japan, Korea, and ASEAN, helping Vietnam improve its position as a production and export center.

Another key driver is increased domestic consumption. Increased foreign investment in recent years has created jobs and more and more people on middle incomes.

Additionally, many local small and medium businesses become suppliers to large manufacturers. The emergence of a middle class - those earning $700 a month - will boost domestic consumption. Financial services, residential real estate, digital technology and ‘green’ products are potential investment opportunities.

However, Mr. Jason Ng said that the biggest risk for foreign investors now is that inflation flares up again and the Vietnamese dong may depreciate against the US dollars. However, according to him, with foreign exchange reserves of more than $100 billion and a good trade surplus, Vietnam can still stand.

Many German news channels have been citing the DPA news agency that Vietnam authorities allowed to receive international tourists in order to create conditions to attract tourists in an effort to revive the tourism industry, which has faced many difficulties due to the Covid-19 pandemic.

According to Zeit online magazine, Vietnam has allowed international travelers to enter without quarantine provided that visitors must have a negative RT-PCR test result done within 72 hours or rapid antigen test was negative no more than 24 hours before departure.

The newspaper also said that on March 15, the Government of Vietnam issued a new regulation on visa management, which will be applied as before the pandemic. Accordingly, visitors from 13 countries, including Germany, are exempt from visas with a temporary stay in Vietnam of 15 days from the date of entry.

Stuttgart newspaper recommended visitors should come to Vietnam to make a trip across Vietnam lasting about one month by bicycle. According to the article, Vietnam has a diverse landscape with dense forests, mountains, beaches and rice fields. The long road from North to South (or vice versa), also known as the Ho Chi Minh Trail, is a popular travel route for backpackers and they often travel by motorbike or bus.

Source: VNA/SGT/VNS/VOV/SGGP/Dtinews

VIETNAM BUSINESS NEWS MARCH 17

Ministries given specific tasks to implement socio-economic recovery program