Binh Duong province introduced the investment and business opportunities in the southern industrial hub to German investors during a conference on March 24.

Binh Duong calls for investment from German firms in the fields of automobile mechanics, electronic technology, supporting industries for automobile mechanics, electronics, and high-tech agriculture, he said.

At the conference, German experts analysed the socio-economic characteristics and COVID-19 control outcomes of Vietnam, providing more information for German firms to access the market of Vietnam and Binh Duong.

Ludwig Graf Westarp from the Federal Association of Small and Medium-Sized Enterprises (BVMW) expressed special interest in the investment environment in Vietnam and Binh Duong. He highlighted the province’s convenient transport conditions that meet German investors’ demands.

SSC warns of identity thefts

State Securities Commission (SSC) is warning securities firms that several criminals have been exploiting security holes to hack into their IT systems.

The SSC is concerned that the criminals have already obtained some pieces of identity information, including the user name and password of several clients.

With such information, they will take control of the client's securities accounts and steal their money through various transactions, including money transfer, money withdrawal and stock trading.

Accordingly, the commission has sent official documents to securities firms urging them to promptly find and fix any security vulnerabilities in their IT systems, particularly in online securities trading systems and other internet-connected systems.

The commission also urges securities firms to revise the transaction authentication process to reduce transaction risks. It suggests instant OTP verification for money transfer, money withdrawal, and any securities accounts changes.

Securities firms are also called on to put out warnings about identity thefts and request their clients to immediately change their current securities account passwords for security reasons.

Suspending VAT refunds will harm cassava industry

The Vietnam Cassava Association has proposed the Government does not implement a recent decision on value-added tax (VAT) refunds for cassava starch products as it will create difficulties for the cassava industry.

According to Official Letter 632/TCT-TTKT on value-added tax (VAT), the General Department of Taxation directs local tax departments to verify foreign customers during processing procedure relating to VAT, leading to suspension of refund and arrears of VAT for cassava exporters.

The current regulations on VAT arrears do not stipulate that the tax refund dossier must be certified by foreign customers to be eligible for a refund.

The association said that determining the quantity of exported cassava can be done because the businesses must declare the export volume to the customs offices at the border gates. The proceeds from the cassava exports are transferred via the bank. Therefore, the tax authority can completely control the number of cassava exports based on documents at the customs and the bank.

The association believes that if this is implemented, it will bankrupt local cassava enterprises. This dispatch will affect more than 1.2 million workers in the domestic cassava industry. Hundreds of production facilities will have to stop purchasing cassava, causing socio-economic instability in many localities.

BRG group, Japanese partner to open more FujiMart stores in Vietnam

BRG Group JSC and its Japanese partner, Sumitomo Corporation, on March 24 signed a joint-venture contract on expanding the FujiMart grocery supermarket chain in Vietnam, towards opening 50 new stores throughout the country by 2028.

As planned, BRG Retail Co., Ltd – a subsidiary of BRG Group, will coordinate with Sumitomo Corporation to expand the FujiMart supermarket chain, aiming to annually open 5-10 new stores in the next seven years, and reach 50 more ones across the country by 2028.

Sumitomo Corporation and BRG Group launched the first FujiMart store in Hanoi in 2018, with three currently in operation. 

Consulting network to assist SMEs’ digital transformation to be formed this year

A digital economic consulting network at the communal level will be formed this year to support small- and medium-sized enterprises (SMEs) in digital transformation.

This is one of the main goals of the programme on supporting SMEs’ digital transformation, the Ministry of Information and Communications said at a conference to step up the implementation of the programme on March 24 in Hanoi.

The programme was launched by the ministry in the first quarter of 2021. Visiting its portal at https://smedx.vn, enterprises can learn more about digital transformation and suitable ways to approach digital transformation and to explore digital platforms that fit their needs as it is connected with 23 “Make in Vietnam” platforms.

Vietnam looks to cooperate with UK in renewable energy, sustainable development

The Vietnam Chamber of Commerce and Industry (VCCI) is ready to cooperate with the British Chamber of Commerce (Britcham) in supporting enterprises, especially those engaged in renewable energy and sustainable development to limit waste and environmental pollution, VCCI Chairman Pham Tan Cong has said.

Christopher Jeffery, Chairman of BritCham Vietnam, said the UK looks forward to expanding cooperation with the VCCI to promote trade among the two countries' business communities in the fields of pharmaceuticals, health care, tourism, renewable energy and sustainable development.

Jeffery said that a new trade envoy will be appointed and is expected to visit Vietnam in April. He will work with the Vietnamese Government, relevant agencies and the VCCI Chairman to further improve the trade relationship between the two countries, creating a more favourable business environment for their enterprises.

At the meeting, Denzel Eades, a member of BritCham's Board of Directors, suggested setting up an international Master of Business Administration (MBA) training programme which meets international standards in Vietnam and is willing to coordinate and support the VCCI in the implementation. 

Da Nang launches economic and efficient use of energy awards

The central city of Da Nang, in coordination with the US Agency for International Development (USAID) launched the 2022 awards on economic and efficient use of energy on March 23 with the aim to promote the use of clean energy towards sustainable development and reduction of greenhouse gas emissions in the locality.

The awards are part of the Vietnam Urban Energy Security project funded by USAID, and Da Nang is the first locality in Vietnam to implement the project.

The organising board will receive applications until April 30. They can be submitted online at website http://EEAdanang.com.vn, via email EEA@danang.gov.vn, or by post to the department's head office at 24 Tran Phu Street.

The award-winning enterprises will receive certificates and presents with total value of nearly 200 million VND (about 8,800 USD) at a ceremony scheduled to be held on June 30.

Vietnam strengthens intellectual property protection amid economic integration

A seminar to launch a report on economic reforms for effective intellectual property protection in the context of economic integration and digital transformation in Vietnam, took place in Hanoi on March 24.

The report updates regulations on intellectual property protection in Vietnam; reviews and analyses commitments on intellectual property in a number of international treaties of Vietnam, especially in new-generation free trade agreements; and recommends policies for amending and supplementing the Law on Intellectual Property.

It also focuses on analysing requirements for completing regulations on intellectual property protection in Vietnam to support digital transformation; challenges to amending regulations on intellectual property protection in line with international commitments; and proposing economic innovation orientations to strengthen intellectual property protection in the country.

Advantech Vietnam, VinBigData team up to provide AI-based solutions

Advantech Vietnam and VinBigData, a technology arm of VinGroup, on March 24 signed a strategic cooperation agreement to provide Artificial Intelligence (AI) solutions and Artificial Intelligence of Things (AIoT) for customers in Vietnam and neighbouring countries.

To harness strengths and competitive edges of both sides, the two tech companies agreed to together produce AI-based solutions for smart security cameras, smart healthcare, smart infrastructure, smart cities and others.

They will focus on developing AI-based solutions in computer vision, one of the most powerful, innovative and attractive industries, that have been used in multiple sectors.

The cooperation between Advantech and WinBigData aims to bring to the market highly-applicable and affordable smart solutions in multiple industries.

Vietnam works to foster farm produce exports to US

Batches of agro-forestry-aquatic products of Vietnam have been shipped to the US in the first two months, offering chances for the country to accelerate exports to a major but challenging market of the world.

Pacific Foods company recently exported 16 tonnes of agricultural products and foodstuff, including fish sauce and instant coffee, to the US, and the shipments are set to arrive on April 10. This is the first time that the company has exported products to the stringent market.

Next month, the company is to ship another batch weighing 28 tonnes of farm produce and spices to the US.

Statistics of the Ministry of Agriculture and Rural Development showed that the US surpassed China to become the largest agro-forestry-aquatic product export market of Vietnam in the first two months of 2022, with turnover of more than 2.3 billion USD.

Last year, Vietnam’s agricultural sector earned 48.6 billion USD from exports, with shipments to the US worth nearly 12 billion USD, making up 27.5 percent.

Vietnam’s largest dairy producer eyes 5-percent revenue growth in 2022

Vinamilk, Vietnam’s largest dairy manufacturer, has set a target of the revenue growth of at least 5 percent to over 64 trillion VND (2.8 billion USD) in 2022, a rise from the 2.2 percent of last year.

From 2023, the rate is expected to rise to 7.7 percent a year, and the revenue will hit 86.2 trillion VND in 2026.

Last year, the dairy producer earned a total of 61 trillion VND, marking the first time it exceeded the 60 trillion VND mark, but only equal to 98 percent of the set target.

Notably, the growth rate in the fourth quarter reached nearly 10 percent – the highest recorded in a quarter in the past five years.

FPT posts nearly 36 percent growth in net profit in two months

Multi-industry group FPT enjoyed high growth in revenue and pre-tax profit in the first two months of 2022 on account of the growing technology segment.

In January-February, the private group earned over 6.1 trillion VND (266.72 million USD) in revenue and 1.1 trillion VND in pre-tax profit, up 27 percent and 30 percent, respectively, from a year earlier, FPT announced.

After-tax profit attributable to the parent company’s shareholders reached 756 billion VND, an year-on-year increase of 35.7 percent and 6 percent higher than the yearly plan. Earnings per share stood at 833 VND during the two months.

The group plans to hold the annual shareholders’ meeting on April 7.

In 2022, FPT set to gain some 42.42 trillion VND in turnover and close to 7.62 trillion VND in pre-tax profit, up 19 percent and 20 percent, respectively, from the previous year.

Vietnam – RoK’s third biggest rubber supplier

Vietnam is currently the third largest rubber exporter of the Republic of Korea (RoK), according to the Import-Export Department under the Ministry of Industry and Trade.

In the first two months of 2022, Vietnam earned 15.31 million USD from shipping 8,220 tonnes of rubber to the RoK, up 7.9 percent in value and 10.4 percent in volume year-on-year.

The market share of Vietnamese rubber accounted for 9.8 percent in the RoK’s total import volume, a slight increase compared to the 8.8 percent of the same period last year.

Vietnam's forex reserves projected to keep rising

Vietnam’s forex reserves have been on the increase in the recent years and are projected to keep rising in the coming time.

The reserves have seen an upward trend since 2011, as the amounts reached 105 billion USD last year from just 12.5 billion USD recorded in 2010, a 8.8-fold increase.

The upward trend in the country's forex reserves is predicted thanks to favourable factors such as growing trade surplus and overseas remittances.

The scale of Vietnam’s forex reserves currently ranks fifth in Southeast Asia, 14th in Asia and 24th across the world. The reserves came from foreign direct and indirect investment, remittances, and spending of foreign tourists, among others. 

Number of foreign passengers via airports in Q1 sees 441% rise

The number of foreign travelers travelling through local airports during the first quarter of the year is forecast to grow by 441% against the same period from last year to reach 141,600 passengers, according to statistics released by the Civil Aviation Authority of Vietnam (CAAV).

Furthermore, international cargo being transported through airports is anticipated to soar by 113.9% compared to the same period in 2021 to reach 38,000 tonnes.

This comes following Vietnam reopening international routes both to and from 20 countries and territories globally from March 15, with the ultimate aim of welcoming approximately five million foreign visitors in the year ahead.

In total, the number of domestic and foreign passengers during the first quarter is forecast to stand at 6.5 million. In addition, approximately 48,400 tonnes of cargo will be transported during this period. 

Air tickets sharply increase ahead of long holiday

Tickets on domestic air routes have considerably risen although Reunification Day on April 30 and International Labour Day on May 1 are still more than a month away.

Vietnam Airlines' most expensive return ticket on the Hanoi-Phu Quoc route between April 29 and May 3 is being sold at VND9.9 million (USD430.43).

The average price for a return ticket for flights of Bamboo Airways and VietJet Air on this occasion is VND7.2 million and VND7.5 million respectively.

The tickets are around three times the normal rate and 10-25 percent up compared to the same time last year.

State-owned banks set to increase charter capital

The State Bank of Vietnam (SBV) has announced Decision No.422/QD-NHNN dated March 18 outlining its action plan for the next two years.

One of the SBV’s key roles is to boost charter capital for joint-stock commercial banks in which the state owns more than 50 per cent of the capital. These include Vietcombank, VietinBank, BIDV, and Agribank.

The capital increases are to be funded from post-tax earnings, allocations for state-owned joint-stock commercial banks, and from the state budget for Agribank.

Last year, the four banks received permission from the SBV to expand their charter capital. Specific changes include an extra $152.2 million for Agribank and approving VietinBank, Vietcombank, and BIDV to pay dividends on shares at a higher rate.

Textile-garment firms have enough orders until Sept

Many textile and garment enterprises have secured enough orders for production until the middle of the year, even until September, said Pham Xuan Hong, chairman of the HCMC Association of Garments, Textiles, Embroidery and Knitting.

Following the positive performance in the last few months of 2021, apparel enterprises continued strong growth in their production and business activities in the first two months of this year.

In the two-month period, Vietnam exported nearly US$8.2 billion worth of textile and garment products, surging 59% year-on-year, said Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association.

In the first quarter of this year, the sector was expected to earn US$12.7-12.8 billion in export revenue, Giang added.

Textile and garment enterprises will enhance access to European markets this year thanks to tariff incentives ushered in by the European Union-Vietnam Free Trade Agreement and the United Kingdom-Vietnam Free Trade Agreement.

According to the Vietnam Industry and Trade Information Center, in 2021, the textile and garment sector exported US$39 billion worth of products, up 11.2% over the year-ago period. However, exports to most of Vietnam’s large markets have yet to recover. 

TSC to issue over 49 million shares to existing shareholders

Techno-Agricultural Supplying JSC (TSC) will issue more than 49.2 million shares to its existing shareholders.
The shares will be issued at a ratio of 3:1, meaning that for every three shares held, a stakeholder can buy one new share. The starting price of the shares will be VND10,000 each.

If successful, TSC’s charter capital will increase from some VND1.48 trillion to nearly VND1.97 trillion.

Soc Trang to call for investment in 39 projects

The Mekong Delta province of Soc Trang will call for investment in 39 projects, including the Tran De deep-water port project, at its investment promotion conference on April 29.

The province yesterday, March 23, held a press briefing to introduce its upcoming activities to celebrate the 30th anniversary of its re-establishment and the investment promotion event, reported Sai Gon Giai Phong newspaper.

At the event to promote investment, the province will introduce its potential to call for investment in various fields.

These 39 projects comprise one in the transportation sector; 13 linked to urban, housing, trade, and services; nine related to industrial clusters; two in tourism; five in agriculture; four in education and the environment; and the remaining five in the field of wind power.

The province will also seek investment in the Tran De deep-water port project that will cover 4,550 hectares. The development of this project has attracted the attention of local residents and the business community, as it is expected to help remove bottlenecks linked to the import-export of goods in the delta.

25 containers of radioactively contaminated monazite concentrate re-exported

Twenty-five containers of monazite concentrate imported to Vietnam through the Quy Nhon Port in Binh Dinh Province were shipped out of the country as they contain radioactive substances, according to the General Department of Vietnam Customs.

The information was revealed in a statement of the general department on smuggling, trade fraud, and counterfeit goods in Vietnam since early this year, the local media reported.

The general department had earlier coordinated with the customs at the Quy Nhon Port under the Binh Dinh Customs Department to ask Trung Viet Import-Export and Investment Co., Ltd, the importer of the 25 containers, to send the shipment back to the port of destination.

On May 2 last year, Trung Viet made a declaration at the customs agency at the Quy Nhon Port to import the 25 containers from Russia’s Vostochniy Port in line with the Ministry of Science and Technology’s License 39/GP-BKHCN.

However, the monazite concentrate containers contained Urani and Thori radioactive substances with contents not in line with the license.

Enterprises need more time for seaport fee adjustment in HCMC

Ho Chi Minh City is going to apply the new fee for the use of the infrastructure and public utility services at border gates and seaports in the city from this April 1. Many businesses have shown the inappropriateness of this new rate and the fee division method to Sai Gon Giai Phong Newspaper.

General Secretary of Vietnam Leather, Footwear and Handbag Association (LEFASO) Phan Thi Thanh Xuan voiced that the time to apply the new fee is not appropriate yet.

She reasoned from June 11, 2021 to the end of September 2021, most enterprises in HCMC had to temporarily close due to the Covid-19 pandemic; yet they had to pay for employees’ salary, bank loan interest, inventory storage fee. In the last two months of 2021, most of them only worked at 30-70 percent of their full capacity owing to human resources and material shortages. Since the beginning of 2022, businesses have been on their way to recover, but they have had to endure fee or price increases of sea transport, fuel, raw materials.

Therefore, the adjusted seaport fee only serves to rise the financial burden enterprises are bearing right now, leading to possible competitiveness reduction, and unsuccessful economic recovery in the long term.

General Secretary of Vietnam Association of Seafood Exporters and Producers (VASEP) Truong Dinh Hoe warned about the risk of newly arisen administrative procedures. He explained that the division into three forms of fee collection, along with unfair and inappropriate rates, is going to create more administrative burdens and longer time to finish these procedures.

Commercial banks implement free-of-charge SMS service

Recently, several commercial banks have implemented the preferential policy of reducing their services fees to support people and enterprises.

Particulerly, HDBank is offering a zero-dong service package for personal customers participating in one of the HDBank Pro accounts, including HDB ISmart Plus, HDB Pro, HDB Pro Plus or those who switch their personal bank accounts to HDBank Pro accounts will receive free-of-charge SMS fee on mobile banking.

In addition, VietCapital Bank is also applying a zero-dong SMS program for customers using their suggested account packages while Asia Commercial Bank (ACB) is offering free-of-charge SMS fee for those who are recommended to use business and priority accounts.

Some other commercial banks including Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Bank for Agriculture and Rural Development (Agribank) said that they accepted to cover the losses to maintain the SMS fee ranging from VND9,900 (US$0.4) to VND11,000 (nearly US$0.5) a month to support their customers while other ones collect fees depending on the number of messages.

Several commercial banks encouraged customers to switch to SMS usage via mobile banking to enjoy free-of-charge services.

Source: VNA/SGGP/VOV/VNS/SGT/Dtinews/VIR

VIETNAM BUSINESS NEWS MARCH 24

Vietnam aims to rank among world’s top 15 exporters by 2030