The railway network connecting economic hubs and seaports needs to be designed as the key arteries of the economy, Deputy Prime Minister Tran Hong Ha said at a meeting with the Ministry of Transport and relevant departments on March 2.

The discussion focused on the planning, policies, solutions and resources to implement the railway and seaport planning for the 2021-2030 period, with a vision to 2050.

A report by the Ministry of Transport said that the goal is that by 2030, the network of seaports in Vietnam can handle up to 1.4 trillion tonnes of goods and 10.3 million passengers. 

Around 33,600ha of land and 606,000ha of water surface are expected to be used to develop this network. The demand for investment by 2030 is about 313 trillion VND (13.2 billion USD).

This funding is expected to be mobilised from the private sector, among other sources. The State budget capital is focused on public maritime infrastructure and key economic areas. 

Ha also proposed an overall review of the general, specialised and inland waterway ports for renovation, utilising the transportation potential of the dense river network across the country. 

He added: “The railway network planning must not only stop at renovating and repairing, but follow a modern, comprehensive direction to respond to the development demands in the future.”

The roadmap also needs to be supported by in-depth studies for synchronised implementation of detailed plans. 

Suggesting selecting one railway route to focus on, the Deputy PM asked the Ministry of Transport to work closely with the Ministry of Natural Resources and Environment for land use at intersections and stations.

He also asked the transport ministry to focus on several key railway and seaports projects in the 2023-2025 plan, while carefully reviewing and estimating investment resources, economic efficiency and the role of the State in the projects to be deployed in the following phase.

The railway network investment and development projects to 2023 are expected to make breakthroughs on the main routes of great demand, utilising its strengths in transporting a large volume of goods and passengers through medium and long distances. 

The total demand for capital for the railway network by 2030 is estimated at about 240 trillion VND (10.1 billion USD), using the State budget as well as other sources. 

After the master plans for the railway and seaport networks are approved by the Prime Minister, the transport ministry will actively implement the project, conducting evaluation after the first year, completing regulations and detailed plans, and allocating capital sources for the medium-term.

Vietnam-Japan Joint Initiative plays role in raising Vietnam’s FDI attractiveness: meeting

The Vietnam-Japan Joint Initiative (VJJI) has significantly contributed to improving the domestic business environment and raising Vietnam’s competitiveness in foreign direct investment (FDI) attraction, an official from the Vietnamese Ministry of Planning and Investment (MPI) has said.

Do Nhat Hoang, Director of the MPI’s Foreign Investment Agency (FIA), said at a pre-final evaluation meeting for the VJJI Phase VIII on March 2 that Vietnamese ministries and agencies have coordinated with the Japanese side in implementing commitments in the action plan.

They stand ready to work together with the Japan Chamber of Commerce and Industry (JCCI), the Japanese Embassy in Vietnam and relevant agencies to successfully materialise the joint initiative, laying ground for discussions on cooperation in the time ahead, he stressed.

The VJJI was launched in April 2003 as a special cooperation mechanism between the Vietnamese and Japanese Governments.

It serves as a policy dialogue forum between Japanese investors and relevant Vietnamese ministries and agencies, where proposals are made to help competent Vietnamese agencies fine-tune laws and policies.

The eighth phase of the initiatives focuses on 11 groups of issues. Because the global economy was seriously affected by the COVID-19 pandemic, especially disruptions in supply chains, Vietnam and Japan agreed to add three new groups of issues.

Over the past 20 years, many legal documents have been amended and issued, and various policy recommendations of the Japanese side put into consideration by Vietnamese ministries and agencies to report them to competent authorities during law and policy perfection and enforcement.

Japan has set forth a report proposing policies in an effort to promote investments by small- and medium-sized enterprises, the key players in Vietnam’s support industries.

Vietnam has been among the top 20 countries worldwide in terms of FDI attraction, which sees the remarkable contributions by Japanese firms through the initiative.

Japan has run nearly 5,000 projects in the Southeast Asian nation with a total registered capital of about 70 billion USD.

According to the latest survey by the Japan External Trade Organisation (JETRO), up to 60% of Japanese enterprises plans to expand their business in Vietnam.

Vietnam joins largest SME festival in Berlin

Four Vietnamese firms - Bamboo Airways, VinFast, Vietnam Airlines, and Vietin Bank - are joining the small- and medium-sized enterprises (SME)'s day held by the German Association for Small and Medium-sized Businesses (BVMW) on March 1.

The Vietnamese booth at the event provided participants with updates on business regulations in Vietnam to ensure fairness among all businesses.

Speaking to the Vietnam News Agency in Berlin, Dr. Nguyen Manh Hai, Counselor for investment at the Vietnamese Embassy in Germany, said that the annual SME Day, the largest event for SMEs, drew businesses from 60 countries.

Along with introducing their products and services, participants also sought partnership opportunities and exchange information on their country’s import-export policies.

Hai underlined that this is a great chance for Vietnamese firms to explore cooperation chances with their peers in Germany and other countries.

He said that SMEs account for more than 98% of the total number of businesses in Germany, many of which have invested in Vietnam. The scale of German SMEs is larger than that of those in other countries, therefore they own modern technologies and have high potential of investing in Vietnam.

Andreas Jahn from the BVMW expressed delight at the presence of Vietnam at the event, affirming that Vietnam is an important country in Southeast Asia and many German firms are investing the country.

German Chancellor Olaf Scholz’s visit to Vietnam last year and the upcoming visit by German Minister of Economic Affairs manifest Germany’s high interest in the strategic location as well as the business environment of Vietnam.

Jahn noted that the Vietnamese community in Germany is serving as a bridge for the friendship between two countries.

He thanked the Vietnamese Embassy in Germany for helping bring Vietnamese firms to the event and introducing the potential and cooperation opportunities in Vietnam, contributing to promoting the partnership among the SME communities of the two countries and deepening the relations between Vietnam and Germany.

Freight transport estimated at around 191 million tonnes in February

Vietnam’s freight transport was estimated at nearly 191 million tonnes in February, up 27.8% year-on-year, according to statistics from the Ministry of Transport.

Aviation led in terms of growth with a rate of 50%, followed by waterway with 43%, road 24.6%, and navigation by 17.6%. Meanwhile, the volume of goods transported by rail decreased by 7.5%.

In the month, the number of passengers transported reached 363.6 million, up 23.7% year-on-year. Of the total, maritime transport ranked first in terms of growth with a rate of 61%, followed by aviation (nearly 60.7%), railway (nearly 59%), waterway (57.5%) and road (20.6%).

The Ministry of Transport said that in the first two months of this year, it worked closely with the Ministry of Public Security, other ministries, sectors and localities to take concerted measures to ensure traffic order and safety and tighten the management of transport activities.

Along with these measures, in March, the ministry will promote the application of information technology in transport management and effectively exploit data from cruise monitoring devices of transport business vehicles.

Budget revenues from taxes up 16.7% in two months

The tax sector collected an estimated 325.78 trillion VND (13.73 billion USD) for the State budget in the first two months of 2023, a year-on-year rise of 16.7%, and equivalent to 23.7% of the yearly estimate, the General Department of Taxation has reported.

Of the total, domestic collection was nearly 315 trillion VND, equivalent to 23.7% of its estimate for the year, and up 16.8% compared to the same period last year.

Thirty-six out of the country's 63 provinces and centrally-run cities have completed over 18% of their yearly estimates.

So far this year, nearly 3,600 tax inspections have been performed, reaching 4.49% of the plan set for 2023.

For e-commerce tax management, as of February 17, 46 foreign suppliers have registered, declared, and paid taxes through the portal for foreign suppliers.

This year, the tax sector is set to collect over 1.37 quadrillion VND for the state budget.

It has synchronously and drastically implemented solutions to strengthen tax revenue management and prevent tax losses, while accelerating administrative reform to create favourable conditions for businesses and taxpayers. It has also vigorously speeded up information technology applications, and enhanced inspection and dialogue with taxpayers.

Vietnamese tea, dried fruits introduced in Paris fair

Tea and dried fruits are key Vietnamese products being introduced at the International Agricultural Show (SIA), the biggest annual event in agriculture, husbandry, fishery and rural areas in France, which has been held from February 25 to Mach 5. 

The Vietnamese pavilion has attracted crowds of visitors, from not only France but also other western nations.

The event brought together more than 1,000 exhibitors from 20 countries worldwide, and has featured entertainment and education activities, including contests, forums and workshops.

It offered an opportunity for producers and service suppliers to display their new products and cutting-edge technologies as well as solutions to ensure sustainable agricultural development and protect the environment.

Last year, the exhibition welcomed over 500,000 visitors, including 33,000 experts who came to explore France’ agriculture.

ITA remains on HOSE’s warning list

The Hochiminh Stock Exchange (HOSE) has announced it would keep the ITA stock of Tan Tao Investment and Industry Corporation (ITACO) on its warning list.

Last August, the bourse warned ITACO of its failure to disclose information as regulated. However, the firm has yet to tackle the issue over the past six months.

On February 7, ITACO announced its divestment from its two affiliated companies, namely Tan Tao Energy Development Corp (TEDC) and Tan Tao Urban Development and Investment Corporation (Tan Tao City Corp).

The announcement came several months after ITACO sold all its stakes in Tan Tao City Corp. last July and TEDC last December.

Meanwhile, Circular 96, issued in 2020 by the Ministry of Finance, requires public companies to disclose information within 24 hours after they sell stakes in a subsidiary or an affiliated company.

Tan Tao City Corp, established in 2001 and headquartered in Binh Tan District in HCMC, specializes in house trading.

ITACO held a 38.46% stake in Tan Tao City Corp before divestment.

February industrial production index up 5.1%

Vietnam’s index of industrial production (IIP) in February rose by 5.1% against the previous month, according to the General Statistics Office (GSO).

The GSO attributed to the rise to a greater number of working days than January and more workers returning to factories after the Lunar New Year holiday.

Compared to a year earlier, the index rose 3.6%, with the mining sector expanding 7%, manufacturing activity 3.3%, power generation and distribution 2.8%, and waste treatment 6%.

However, the figure for the first two months of 2023 fell 6.3% over the same period last year as the global economy continued to face numerous difficulties and inflation in many countries remained high despite having moderated.

Specifically, mining dropped 3.8%, manufacturing slid 6.9% and power generation and distribution fell 5.2%.

The two-month industrial production index rose in 44 provinces and cities and decreased in the remaining 19.

Vietnam lures 3.1 billion USD in FDI in two months

Vietnam attracted a total committed foreign direct investment (FDI) of 3.1 billion USD in the first two months of 2023, down 38% year-on-year, according to the Ministry of Planning and Investment.

Of the total, 1.76 billion USD was poured into 261 new projects while an additional 535.4 million USD was committed to 133 existing projects. Stake purchases by foreign investors were estimated 797.9 million USD.

The manufacturing sector was the largest recipient of FDI, with 2.17 billion USD, accounting for 70.1% of total pledges, followed by property trading with 396.9 million USD, and wholesale and retail with 202.1 million USD.

Singapore was the largest foreign investor in Vietnam during the period, with 978.4 million USD, equivalent to nearly one third of the total figure.

Taiwan (China) and the Netherlands came second and third with 407.1 million USD and 369 million USD, respectively. Other large investors included China, the Republic of Korea and Sweden.

Bac Giang was the largest FDI recipient with 824.3 million USD, followed by Ho Chi Minh City with 369.1 million USD.

During the two-month period, disbursement was estimated at 2.55 billion USD, down 4.9% from last year.

Exports by foreign-invested firms (including crude oil) fell by 5.3% year-on-year to 38.4 billion USD, accounting for over three quarters of the country’s total export revenue.

Southcentral region, India eye to expand import-export cooperation

A symposium on measures to promote import-export activities between India and localities in the southcentral region was held in Nha Trang city by the Indian Consultate Geneal in Ho Chi Minh City and the People’s Committee of Khanh Hoa on March 1.

Delegates from the Departments of Industry and Trade of the localities briefed participants on the potential of import and export and their key trade sectors. Meanwhile, Indian businesses’ representatives made known banks' financial support for import and export, and cooperation opportunities between India and Vietnam through Gopalpur Industrial Park of India.

According to Vice Director of the Department of Industry and Trade of Phu Yen Nguyen Thi Kim Bich, Phu Yen boasts great potential to export seafoods to India.

The locality looks forward to enhancing trade cooperation with partners in the Indian market, in order to export canned seafood, cashew nuts and fertilisers to the South Asian country, Bich said.

Vice Director of the Department of Industry and Trade of Ninh Thuan Tran Quoc Sanh said the province has imported white-leg shrimps, and machinery and equipment serving wind and solar power development from India.

He expressed his hope that the Indian Consulate General in HCM City will pay attention to promoting trade exchange between the two sides, thus expanding import of agro-forestry-fishery products of Ninh Thuan, and speeding up the implementation of investment projects in agricultural and aquatic product processing industry for export in the locality.

Ninh Thuan has various potential products for export such as aloe vera, asparagus, grape, apple, onion, garlic, fish sauce, bird's nests, goat and sheep, among others, he said, adding that these products will be promoted directly by local businesses with Indian businesses right at face-to-face dialogue sessions.

According to Vice Director the Department of Industry and Trade of Khanh Hoa Phan Thi Thu Cuc, Khanh Hoa’s export turnover to India topped 437,000 USD in 2022.

She called on businesses of Khanh Hoa and India to continue strengthening business cooperation and import-export activities in the future.  

Meanwhile, Director of the Department of Industry and Trade of Binh Dinh Ngo Van Tong said the province looks to welcome more Indian businesses in the coming time.

GunadharSena, Director of Bank of India in HCM City updated participants on loan policy in import - export activities between Vietnam and India, pledging to provide maximum support to Vietnamese businesses that need loans as they export goods to India.

Nishu Mishra from Tara Steel Special Economic Zone Limited spoke about the potential of Gopalpur Industrial Park, expressing his hope that businesses of the southcentral region will visit and consider investing in the park in the future.

At direct dialogue sessions in the framework of the conference, businesses of the two sides discussed opportunities, legal issues, and issues related to the import-export market.

MARD plan looks to boost agricultural industry with science and technology

Technological advances and creative innovation have created momentum to build a productive and quality agricultural industry, with a plan of action discussed at an online conference to capitalise on the sector's potential.

The online conference, 'Strategies to develop technology, science and creative innovation for the agriculture industry and rural areas development 2030-2050', was organised by the Ministry of Agriculture and Rural Development (MARD) recently.

The key goal of the plan is to make science and technology key to building a productive, quality and effective agriculture industry with robust competitiveness and a sustainable value close to the campaign of building 'new rural areas', according to Nguyen Huu Ninh, Deputy Director of the ministry’s Department of Science, Technology and Environment.

The strategy also laid out specific goals, such as the Total Factor Productivity (TFP) in the agriculture industry's growth must reach at least 50%, and 40% of agricultural products must be at least of VietGAP quality.

At least 60% of research results must be approved and applied into production, with 15% registered for intellectual property.

At least 200 businesses that use high-tech products should be supported, with 60% of businesses with creative innovation by 2025 and 85% by 2030.

Ninh also pointed out that the strategy requires more investments from the government and the public-private sector partnership.

To execute the strategy, new policies to motivate the development of science, technology and creativity are also recommended, such as a legal framework supporting entrepreneurs in creative innovation for agriculture and a framework for investment and financing new technologies based on healthy competition and output effectiveness.

Equipment and researchers for institutes and universities researching new technologies in agriculture are also regarded as important resource that requires investment.

The strategy also encourages greater international cooperation in researching and applying new technologies.

One of the main concerns discussed in the seminar was the marketability of technological products.

The connection between science institutes and businesses is vague, said Professor Pham Van Toan, Deputy Director of the Vietnam Academy of Agriculture Sciences.

The policies regarding the transfer of usage rights, research products, intellectual property and establishing an agricultural startup ecosystem should also be reviewed, according to Toan.

Toan also called for an investment in new equipment to keep up with global development and the unity in cooperation between institutes.

In his closing speech, Phung Duc Tien, Deputy Minister of Agricultural and Rural Development, emphasised the role of science and technology in contributing to the success of the agricultural industry.

The strategy is now just a plan, and the most crucial issue lies in the execution, said Tien.

Most notably, Tien asked for a review of scientists and researchers and a policy to keep talented ones working in Vietnam, citing a brain drain of 10% annually being the problem.

Technology products should also be marketable in the future to fully utilise the research and studies, said Tien.

Fruit, vegetable exports see high potential, tough requirements

Vietnamese vegetables and fruits are eyeing various potential markets from Asia to Europe, and from the Middle East to North America and America, in which quality requirements and standards are high, prompting domestic exporters to work harder to conquer, said experts at a forum in Ho Chi Minh City on March 1.

Le Thanh Hoa, Vice Director of the Agro Processing and Market Development Authority (Agrotrade), said that over the recent years, fruits and vegetable have been among the groups with export revenue of over 3 billion USD each year. The figure reached 3.37 billion USD in 2022.

Last year, many kinds of fruits such as passion fruit, durian and banana were allowed to be exported to China through official channels, while Vietnamese pomelo was excepted to the US, limes and pomelos to New Zealand, and fresh longan to Japan.

In the first two months of this year, the export of fruits and vegetables hit 592 million USD, up 17.8% compared to the same period in 2022. China remained the major market of Vietnam, consuming 57.5% of the country's total fruit and vegetable exports.

Hoa also highlighted advantages that Vietnamese fruits and vegetables are enjoying in other markets, especially those from free trade agreements (FTA).

Jos Leeters, Director of Bureau Leeters, underlined that Vietnam is eyeing great opportunities in the EU where the market scale is 62 billion EUR (66.05 billion USD), or 43% of the world total fruit and vegetable trade value.

Particularly, the EU-Vietnam FTA is bringing 94% of all tax lines to zero, making Vietnam more competitive than Thailand and China, he noted.

Nguyen Minh Phuong, Director of the Asia-Africa Market Department under the Ministry of Industry and Trade, said that due to low supply and high demand, the Middle East and North Africa are also promising markets for Vietnamese farm produce.

However, experts underscored that the major challenge for Vietnamese fruits and vegetables is the increasing requirements in international market, especially those in origin traceability and food safety.

Pham Minh Thang from the Agrotrade said that Vietnamese firms have faced a lack of information on market demands and access to distribution channels in imported countries.

Meanwhile, the export of fresh vegetables to other markets is encountering obstacles due to transportation difficulties, while the rate of processed products remains modest.
In order to promote fruit and vegetable exports, Thang advised producers and exporters to actively renovate their farming techniques to increase their product quality, while strengthening processing and trade promotion activities, diversifying trading activities in digital platforms, and applying information technology in the sale of farm produce.

Saigontourist welcomes four luxury cruise ships in early March

Saigontourist Travel Service Company (Saigontourist) is expected to receive four international cruise ships, bringing more than 4,200 multi-national tourists to Vietnam from March 1 to 8.

Saigontourist on March 1 received Azamara Quest which docked at Sai Gon port in Ho Chi Minh City, carrying 300 tourists of British, American, German, and Australian nationality on board.

The visitors are set to go on tours of Ho Chi Minh City and Ben Tre Province over a three-day period, before visiting the coastal city of Da Nang, Hoi An Ancient Town, and the ancient city of Hue when the ship docks at Tien Sa port on March 5.

Furthermore, the cruise ship Europa 2 with 400 German visitors onboard will dock at the Saigon Premier Container Terminal Port (SPCT) in Ho Chi Minh City on March 3 before leaving the port the following day.

The ship is scheduled to arrive at Tien Sa port in Da Nang city on March 6 and then dock at Ha Long Bay in the north on March 8.

During their six-day stay in Vietnam, Saigontourist will provide special tour programmes to allow the tourists to explore popular destinations in Ho Chi Minh City, Vinh Long - Can Tho, Da Nang, Hoi An, Hue, and Ha Long.

Moreover, the Resort World One cruise ship carrying 1,500 multi-national tourists plans to anchor at Phu My port in Ba Ria - Vung Tau province on March 5 before joining tours to explore Ho Chi Minh City and My Tho.

Mein Schiff 5 is set to return to Vietnam on March 6, bringing 2,000 German guests to Ha Long Bay. The visitors will leave the country on the same evening after visiting Ha Long Bay, Hai Phong, and Hanoi.

A representative of Saigontourist said the density of ships docking at Vietnamese ports marks the strong recovery of international tourism in general, as well as cruise tourism in particular.

The company plans to continue to welcome tours from the Royal Caribbean Cruise Lines, TUI Cruises, Silversea Cruises, Azamara Cruises, Hapag-Lloyd Cruises, and Resort World Cruises to Vietnam this year.

Hai Phong pledges optimal conditions for US investors

Hai Phong will create optimal conditions for US investors to explore its investment environment and seek partnership with local firms, pledged Standing Vice Chairman of northern port city's People’s Committee Le Anh Quan.

Receiving a delegation from the US Embassy in Vietnam led by Ambassador Marc E. Knapper on March 1, Quan said he hopes the US ambassador will help bring more US investors and businesses to the city.

For his part, Knapper said that his delegation's visit aims to gain a deeper insight of the city's situation and seek cooperation opportunities.

The delegation also hopes to explore Hai Phong's methods to clinch second position among Vietnamese localities in provincial competitiveness index, thus making more US firms aware of the advantages of the city, the diplomat said.

This year, the US and Vietnam are celebrating the 10th anniversary of their comprehensive partnership, which is a chance for the two sides to elevate ties to a strategic partnership and strengthen cooperation, especially in education and people-to-people exchange, he said.

The same day, the US delegation had a working session with the Management Board of Hai Phong Economic Zone.

Ambassador Knapper showed his interest in the outstanding advantages of Hai Phong as well as its potential energy and human resources development.

Director of the Management Board of Hai Phong Economic Zone Le Trung Kien said that Hai Phong is among leading localities in foreign direct investment attraction, and a favourite investment destination of businesses from many countries such as the US, Japan, the Republic of Korea, and China.

Kien said he hopes the US ambassador will help increase investment promotion activities in Hai Phong to give more chances for businesses of both sides to foster their connections, while supporting Vietnamese firms to export more to the US and increase US investment in Hai Phong's industrial parks.

According to the board, as of March 1, Hai Phong is home to 16 US firms with total capital of US$258.24 million.

US businesses are mostly operating in the fields of power generation and mechanical engineering. US-funded projects are employing 1,344 local labourers.

Last year, US firms enjoyed a total revenue of US$283 million, paying US$25.4 billion (over US$1 million) to the State budget.

In 2022, Hai Phong's trade with the US market accounted for 2.5% of the city's total foreign trade, according to the board.

Bank race in attracting demand deposits cools down
     
The race to lure demand deposits, or current account savings account (CASA), among banks seems to be decelerating as it is more difficult for banks to attract the cheap capital source in the context of high interest rates on term savings.

Demand deposits at banks are mainly from customers’ payment accounts. Previously, due to low interest rates on term deposits, a number of customers did not pay much attention to transferring idle money in their payment accounts to term deposit accounts. Banks, therefore, raced to lure customers with many incentive policies to benefit from the low-cost capital source.

However, the trend has changed after interest rates for term deposits sharply surged to hit nearly 10 per cent per year, which has caused more customers to select term savings to get higher interest rates.

According to the Q4 2022 financial report of banks, up to 23 out of 28 banks, even big names, have recorded a decrease in CASA ratio in the last year.

Specifically, Techcombank, which topped in terms of CASA for many years, saw its CASA ratio decline sharply from 50.5 per cent at the end of 2021 to 37 per cent at the end of 2022.

Despite surpassing Techcombank to top the CASA list in 2022, Military Bank also reported a CASA decline from 44.6 per cent at the end of 2021 to 37.6 per cent at the end of 2022.

According to Techcombank, the CASA ratio dropped sharply because customers have tended to reduce cash holdings for investment or spending, but increase opening term savings accounts in the context of the global high interest rate environment, restricted liquidity of the banking system and negative sentiment on the real estate and bond markets.

However, Techcombank noted, the bank took measures to increase its term deposits to ensure capital, with Q4 2022 seeing a growth rate of 32.3 per cent in term deposits against Q3 2022.

Many other banks also recorded a sharp drop in CASA ratio in the past year such as KienlongBank (from 15.5 per cent to 4 per cent), VietABank (11.9 per cent to 4.1 per cent) and TPBank (23.3 per cent to 18 per cent).

However, there were still some banks recording an increase in CASA ratio in 2022 compared to 2021 such as VietinBank (with a slight increase of 0.1 percentage point to 20 per cent), PG Bank (with a 2.5 percentage point increase to 17.9 per cent), and Bac A Bank (with a 3.9 percentage point rise to 7.3 per cent).

Economist Dinh Trong Thinh told Viet Nam News that the term deposit interest rate has continuously increased, especially in the last quarter of 2022, while other investment channels such as securities, real estate, gold, and cryptocurrencies have been less attractive and continuing the downward trend for a long time.

“This was why cash flows look to long-term savings channels to enjoy high interest rates. As a result, the amount of demand deposits decreased sharply, and the input capital also became more expensive,” he said.

According to Thinh, improving the CASA ratio, controlling capital costs, and concentrating resources to support firms and people to recover production and business are posing big problems for banks, especially in the context of interest rates being forecast to remain high in the first half of 2023. Because when interest rates are high, individual customers transfer their idle money into term savings instead of keeping them in current accounts. As for firms, high interest rates made it difficult for them to access bank capital, thereby they had to withdraw available cash to serve their operations.

According to experts of Vietcombank Securities Company (VCBS), the State Bank of Vietnam’s policy interest rates in 2023 may not increase further. After peaking in the first half of 2023, the rates will be flat and gradually cool down in the second half of this year.

Sharing the same view, Yuanta Vietnam Securities Company (Yuanta) believes as the interest rate on term deposits is still high and the liquidity of the banking system remains limited, the growth of demand deposits will be low in the first half of 2023. However, Yuanta expects the CASA ratio to improve further as deposit rates gradually cool down in the second half of this year.

Besides, Yuanta said in the context of rising interest rates, banks with the advantage of a high CASA ratio such as MB, Techcombank and Vietcombank will suffer less negative impacts on net profit margin than banks with a low CASA rate.

Meanwhile, SSI Securities Company’s experts are more optimistic as, based on data analysis, they forecast the CASA ratio will be affected adversely only in the short term and will recover in the near future. 

VietCycle partners with Europe pioneer to build plastic recycling plant
     
VietCycle and ALBA signed an agreement to build the largest recycling plant for PET and HDPE plastics in Viet Nam, which will cost more than US$50 million, on Wednesday.

The recycling plant, which has a capacity of 48,000 tonnes a year, is expected to be operational in 2024.

The project is designed to use cutting-edge German technology to produce rPET plastic that meets international standards set by the European Union (EU) and embraced by many multinational corporations, said Hoang Duc Vuong, chairman of VietCycle.

“Many Vietnamese plastic producers have lost a lot of contracts demanding high-quality recycled plastic. Therefore, products from the plant will be welcomed,” Vuong said.

The cooperation between ALBA and VietCycle provides a necessary solution to solve plastic waste problems in Viet Nam.

According to the World Bank (WB), Viet Nam is one of the biggest contributors to marine pollution.

Every year, approximately 2.8-3.1 million metric tonnes of plastic waste are discharged on land in Viet Nam, with an additional 0.28-0.73 million metric tonnes into the ocean.

This situation is expected to worsen with rapid urbanisation and strong economic and population growth. By 2030, in less than 15 years, the amount of waste generated in Viet Nam is expected to double from 27 million to 54 million tonnes.

Moreover, as Viet Nam is gradually building a circular economy with policies to improve the responsibility of manufacturers, the plant is expected to increase the role of the recycling industry in the circular value chain.

Speaking at the Signing Ceremony of the Cooperation Agreement to develop the plant, Axel Schweitzer, chairman of ALBA Asia Group, said that: “Plastic is a valuable resource that should not be wasted as it is made from oil. While the production does lead to high CO2 emissions, plastic products can be recovered, reprocessed and recycled."

Therefore, Schweitzer believed that the project can change the perception of plastic as a problem.

The recycling plant is also expected to create more jobs and improve the living conditions of workers who collect plastic products on the streets, he added.

The project is welcomed and supported by the Vietnamese Government, the German Embassy, the Ministry of Natural Resources and Environment, and international brands and organisations such as Unilever, Pepsi, TCP Group, and Dow Chemical. 

Tourist companies see many groups of int'l arrivals to Vietnam

Some travel businesses are busy preparing to welcome back groups of international visitors at the end of this month.

Saigontourist Travel Services Company (Saigontourist) receives and offers services to a group of tourists coming from Europe under the meetings, incentives, conferences, and exhibitions (MICE) tourism from now until March 5.

Besides participating in meetings, the visitors will take tours to visit landscapes in Hanoi, Ninh Binh, Ha Long, Hue, Da Nang and Hoi An during the 14-day long trip. The travelers will also travel to HCMC for visiting Cu Chi Tunnels, popular attractions of the southern metropolis and enjoy local dishes and sightseeing around the city on the double-decker bus.

From the beginning of this year until the present, Saigontourist has received many groups of foreign air and cruise ship tourist arrivals coming from the Asian, European, Australian and American markets. The company will greet a cruise ship with 3,500 tourists on February 25-26.

Travel firms, such as Vietravel, Vinagroup Travel and HCMC Union Trade Tourism Company have also seen many delegations of international visitors.

According to airlines, their Chinese partners have worked with travel enterprises in HCMC to prepare transport plans carrying visitors between Vietnam and China.

HCMC nominated as Asia's Leading Business Travel Destination 2023

Ho Chi Minh City has been nominated as Asia's Leading Business Travel Destination by the 30th annual World Travel Awards (WTA) for Asia and Oceania.

Founded in 1993, the WTA is a prestigious global award, known as the "Oscar of the tourism industry". The annual award honors outstanding destinations and quality tourism service providers, including airlines, hotels, resorts, tour operators, and travel destinations.

In addition to Ho Chi Minh City's nomination for Asia's Leading Business Travel Destination, Vietnam is also nominated for several important categories, including Asia's Leading Heritage Destination, Asia's Leading Nature Destination, Asia's Leading Cultural Destination, Asia's Leading Beach Destination, Asia's Leading Sustainable Tourism Destination, and Asia's Leading Youth Travel Destination.

To vote for the nominations for Vietnam tourism, readers can visit the website at https://www.worldtravelawards.com/vote. Voting will be open until July 23.

Over the past five years, Vietnam has been honored as the World's Leading Heritage Destination three times and has received the title of Asia's Leading Destination four times. The Vietnam National Administration of Tourism has been voted as Asia's leading tourism management agency three times, along with many other important award categories for Vietnam's tourism industry in the WTA system.

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