Vietnam occupied over 10 percent of share in the world footwear market for the first time in 2020, accoding to the World Footwear Yearbook 2021.

According to the report, which was released by the Portuguese Footwear, Components, Leather Goods Manufacturers' Association (APICCAPS), in 2020, the market share of Vietnam rose from 2 percent to 10.2 percent.

It said that in the year, Vietnam exported about 1.2 billion pairs of shoes. It was followed by Indonesia with 366 million pairs, accounting for 3 percent of the market share.

Meanwhile, China took the top position by providing 7.4 billion pairs of shoes to the market.

Germany surpassed Belgium and Italy to become the biggest footwear exporter in Europe.

Lam Dong seeks to develop four more wind power plant projects

The provincial Department of Industry and Trade has proposed the Lam Dong government consider asking the Ministry of Industry and Trade and the Government for permission to add the Don Duong wind power complex, comprising four plants, to the national power development plan in the 2021-2030 period, the department said today, March 3.

The wind farm complex project will be developed by EMI Investment JSC, the local media reported.

The four wind power farm projects will cover some 32 hectares of land each in D’ran Town and Lac Xuan, Ka Do and P’ro communes in Don Duong District.

Under the plan, the four wind farms will have 12 turbines with a capacity of 4-4.2 MW each.

Sun Group launches first luxury airline in Vietnam

Sun Group has launched its Sun Air, the first luxury airline in Vietnam, providing private jet management and air charter services, and sightseeing flights using helicopters and seaplanes.

Sun Air targets high-class customers requiring high standard services. It aims to become a global private jet airline using aircraft with highest speed in the world.

Sun Air will use Gulfstream G650ER and Gulfstream G700 business aircraft.

In the third quarter of 2022, Sun Air will operate two Gulfstream G650ER jets. In the 2023-2025 period, the airline plans to use four Gulfstream G650ER, one Gulfstream G700, one helicopter and two seaplanes.

In the future, the airline expects ultra-large and ultra-long jets such as Boeing BBJ and Airbus ACJ.

Vietnamese firms in Russia recommended to keep close watch on situation

As Russia is facing sanctions imposed by the West, Vietnam’s Trade Counsellor in this country Duong Hoang Minh has recommended Vietnamese businesses in this country to stay calm and keep a close watch on the situation.

He said the exclusion of Russia from the SWIFT international payment system has just been levied on seven Russian banks, so Russia’s banking activities with Vietnam haven’t been affected much. However, Minh noted, if tensions escalate, all Russian banks could be banned from SWIFT, which will have real impact on their banking activities with Vietnam.

Meanwhile, Nguyen Hong Thanh, head of Vietnam’s trade office branch in Far Eastern Russia, pointed out that transportation and the Russian ruble exchange rates are the two issues affecting bilateral trading activities.

Vietnam has over 1.2 million hectares of unused land: Ministry

More than 1.2 million hectares out of Vietnam’s total natural land area of over 33 million hectares have not been used yet, according to the Ministry of Natural Resources and Environment (MoNRE).

Agricultural land covers nearly 28 million hectares and the area of non-agricultural land was approximately 4 million hectares, it said in an announcement on land inventory results in 2020.

The ministry asked the People’s Committees of provinces and centrally-run cities to publicise data on land inventory in 2020 which will be used consistently throughout the country.

State budget collection estimated at 276 trillion VND in January-February

State budget collection was estimated to exceed 276.66 trillion VND (12.11 billion USD) in the first two months, up 7.7 percent from the same period last year, according to the General Department of Taxation.

Collection from crude oil reached 8.06 trillion VND, or 28.6 percent of the estimate, while the remainder came from domestic revenue, up 6.7 percent year-on-year.

The general department attributed the result to controlled epidemic situation across the country and recovering production and business activities. The Government's support policies have proved effective, with the number of businesses resuming operations in January this year increasing by 195 percent annually.

During the period, a number of major contributors to the State budget recorded good annual growth, including processing and manufacturing (up 2.8 percent); production of electrical equipment (11.5 percent); clothing production (11.4 percent); and metal ore mining (21.9 percent).

Six more firms likely to export tra fish to U.S.

The National Agro-Forestry-Fisheries Quality Assurance Department (Nafiqad) has proposed the Food Safety and Inspection Service (FSIS), under the United States Department of Agriculture, certify six more Vietnamese firms as eligible to export tra fish to the U.S. market.

Le Ba Anh, deputy head of Nafiqad, said that the department had sent registration dossiers to the U.S. agency. “Vietnam has seen 13 enterprises certified by FSIS as eligible to ship tra fish to the choosy market,” he said.

Besides, Nafiqad is planning to ask FSIS to allow local exporters to ship processed and value-added tra fish products to the U.S. market as Vietnam is exporting just semi-processed tra fish stateside. “If approved, the country’s tra fish industry will grow further in the coming time,” he added.

Due to the impact of the Covid pandemic, FSIS conducted a remote inspection into Vietnam’s tra fish food safety control system from March 23 to April 28 last year, according to Nafiqad.

Retail giants expand pharmaceutical market reach

Retail giants have begun to ramp up investments in the pharmaceutical market, fueling the race for market dominance.

Mobile World Investment Corp (MWG) held a 49 per cent stake in Phuc An Khang pharmacy chain in 2017. In late 2021, the company acquired nearly 1.3 million additional shares to raise its ownership to 100 per cent. Chairman of MWG Nguyen Duc Tai underlined the acquisition as a strategy to boost pharmaceutical sales and prepare for new growth opportunities after the pandemic.

FPT Retail is another name that has been accelerating the expansion of its pharmacies. The company bought out Long Chau pharmacy chain to establish FPT Long Chau Pharmaceutical JSC in 2018. In 2021, FPT Retail began to step up store rollout to lift its number of drugstores to nearly 500, raking in around VND4 trillion (US$175 million) in revenue.

Despite their large number of drugstores, MWG and FPT Retail still pale in comparison with Pharmacity, which is leading the market. Pharmacity started off with several dozen stores in 2011. It has begun to take off since Mekong Capital poured money into it in May 2019. After three years, the pharmacy chain has increased multifold to 837 stores, and is aiming to expand to 5,000 stores by 2025 with 35,000 employees on the payroll.

Seven associations propose for seaport fee extension, reduction in HCMC

Yesterday, seven associations proposed for fee extension and reduction of infrastructure and public utility works in the border crossings and seaport in Ho Chi Minh City.

The Association of Food Transparency, the Vietnam Textile and Apparel Association, the Vietnam Leather Footwear and Handbag Industry, the Vietnam Dairy Association, the Vietnam Plastics Association, the Vietnam Association of Seafood Exporter and Producers and the Ho Chi Minh City Handicraft and Wood Industry Association said that the fee for the use of infrastructure works and public utility services in the border gate and seaport areas in the southern metropolis, which is expected to start from April 1, is still inappropriate.

Many businesses think that the new fee is not reasonable because businesses supposed the new seaport infrastructure fees to this will diminish enterprises’ competitiveness, while they are already facing difficulties due to Covid-19.

Becamex IDC inks investment deal for Binh Duong

Becamex IDC and the Foreign Investment Department, from the Ministry of Planning and Investment inked a strategic cooperation deal on Tuesday, to strengthen international cooperation in Binh Duong Province.

The cooperation is an ideal opportunity for Binh Duong and Becamex IDC to connect more firmly in international integration, organise conferences and seminars to join localities, domestic enterprises with foreign partners, and participate in international conferences at home and abroad.

The two sides will explore other areas where they can cooperate to maximise each other's potential, affirming to build a specific action plan jointly for ideas that strengthen cooperation and benefit both sides.

Can Tho seeks approval for two road projects worth VND2.7t

The government of Can Tho City has proposed expanding and developing two roads linking the city and the neighboring provinces of Hau Giang and Kien Giang, with total capital exceeding VND2.7 trillion.

Of the total investment, the Mekong Delta city suggested nearly VND1.9 trillion be sourced from Official Development Assistance loans offered by the World Bank, the Asian Development Bank, Germany’s KfW Development Bank, and the French Development Agency (AFD).

The Hau Giang side also plans to widen the 37-kilometer section of the national highway from 11 meters to 23 meters from now until 2025.

As for the second project, Can Tho is expected to build a road connecting its O Mon and Thoi Lai districts with Giong Rieng District of Kien Giang. The route will be over 27 kilometers long and 22 meters wide, with a maximum speed of 80 kilometers per hour. In the first phase, the route will measure 12 meters in width and have two lanes, requiring over VND1.8 trillion in investment.

SMS Banking service fee agreed at VND11,000 per month nationwide

The Ministry of Information and Communications (MIC) yesterday announced that after a throughout discussion between banks and mobile network carriers under the chair of MIC and Vietnam Banks Association, an agreement on SMS Banking service fee was reached.

Lately, some banks have charge SMS Banking according to their rate from VND11,000-77,000 per month, depending on the message quantity.

Accordingly, commercial banks and telecoms businesses agreed upon the solution of a packaged monthly fee of VND11,000 (US$0.48), including VAT, for unlimited SMS for cashless payment service use. Not a long time ago, the fee was changed with the calculation in rates of message quantity, ranging from VND11,000-77,000 ($0.48-3.37) a month.

Rice exports surge despite pandemic

In the first 1-1/2 months of the year, Vietnam exported nearly 647,800 tons of rice worth nearly US$314 million, up 36.2% in volume and 19.6% in value year-on-year, according to the General Department of Vietnam Customs.

In January, the largest rice importer of Vietnam was the Philippines, with over 234,000 tons valued at US$110 million. This was followed by Ivory Coast with nearly 59,700 tons and China with 37,000 tons, Lao Dong newspaper reported.

According to the Vietnam Food Association (VFA), Vietnam’s rice exports this year were expected to reach 6-6.2 million tons, equivalent to the volume in 2020 and 2021, thanks to the increasing global rice demand. The Philippines, Ivory Coast and China will still be key importers.

HCM City calls for strengthened inspection of petroleum distributors, prevent violations

HCM City has called for the Ministry of Industry and Trade to strengthen inspection and penalise fuel trading companies that commit violations to ensure uninterrupted supply of petroleum products in the market.

The People’s Committee wants the ministry to sanction major enterprises that do not supply petrol and diesel as committed, have the required minimum reserve or plans to import goods to replenish the reserve in time, causing supply to be interrupted.

To ensure there is no volatility in the fuel market, the city Department of Industry and Trade has set up an inspection team to monitor the activities of 18 petroleum traders and distributors in the city.

The team, comprising officials from the Department of Industry and Trade, market management and police, has been directed to prevent hoarding and punish violations.

Sacombank gets licence for interest rate derivative products

Sacombank has received approval from the State Bank of Vietnam to trade in and provide interest rate derivative products.

The products will assist customers in hedging against adverse fluctuations in interest and exchange rates on loans, especially with medium- and long-term tenors.

In addition, interest rate swaps are also a solution to help customers reduce capital mobilisation costs when switching from a high to a lower interest rate currency.

Customers can also use interest rate derivatives to protect their profits against adverse market movements.

Securities firms raise capital amid high margin debt

Many securities firms have begun to issue additional shares to meet their investors’ rising demand for margin loans.

According to KIS Viet Nam Securities Corp., margin loans have been increasing steadily since 2020 with an average quarterly growth of 15 per cent in 2020 and 19 per cent in 2021. Total margin loans have hit an all-time high of VND170 trillion (US$7.4 billion) by late 2021, up 98.7 per cent compared with 2020. Margin ratio of eight out of ten most margin-lending firms has reached 150 per cent by the same period. Accordingly, these firms have begun to issue more shares to raise capital, thereby improving their margin-lending capacity.

Notably, VNDirect Securities JSC increased its margin loans by 265 per cent after its equity rose by 157 per cent in 2021. SSI Securities Corp. followed suit with equity growing by 44 per cent and margin loans by 152 per cent in the same year. KIS reported that brokerage and margin lending allowed securities firms to drive their revenues to a record high in 2021.

Notably, VPS Securities JSC posted the largest revenues of VND9.5 trillion ($416.1 million) last year. SSI came next with VND4.7 trillion ($205.9 million). VNDirect secured third with VND5.8 trillion ($254 million), and was followed by Techcom Securities JSC ($227.8 million).

Vietnam's trade turnover exceeds US$100 billion in two months

Vietnam’s trade turnover in the first two months of 2022 was estimated at US$108.52 billion, a sharp increase of 13% year-on-year, according to the General Statistics Office (GSO).

Upon breaking down, the country’s exports in February rose by 13.2% year-on-year with a major contribution from the domestic sector by posting an export growth of 20.3%, and the foreign-invested sector of 11.1%.

This resulted in total export revenue of $53.79 billion in the two months, up 10.2% year-on-year.

Vietnam also boasted nine groups of export products with a turnover of over $1 billion, accounting for 71.6% of total shipments. Industrial and manufacturing goods accounted for the majority of export products at 89.4%, followed by agroforestry products (6.9%), and seafood of 2.7%.

Localities urged to have tourism reopening plans

The Ministry of Culture, Sports and Tourism has urged to develop their plans for reopening of tourism in the new normal.

In mid-February, the Government had agreed to reopen inbound and outbound tourism from March 15 at the proposal of the Ministry of Culture, Sports and Tourism.

The ministry was assigned to work with the Ministry of Foreign Affairs and the Ministry of Health to make a new proposal on visa policy .

Viet Nam closed borders to foreign tourists from March 22, 2020 due to the outbreak of the COVID-19 pandemic in the Southeast Asian country.

Goertek commits additional $306 million to its multimedia equipment project in Bac Ninh

Goertek, one of three major suppliers for Apple in Vietnam, has poured additional funds into its project in the northern province of Bac Ninh.

China-backed Goertek, the world’s renowned supplier of acoustic components, has expanded its investment capital by $306 million for its factory for electronic and multimedia equipment located in Bac Ninh's Que Vo Industrial Park.

This is the second biggest project the company has undertaken since the start of 2022.

First Vietnamese businessman wins Jewellery World Awards

Do Minh Duc, general director of DOJI Gold and Gems Group, has been named the winner of the Young Entrepreneur of the Year (age 40 and below) category at the Jewellery World Awards (JWA Awards) 2021.

The Vietnamese businessman has developed a range of innovative solutions to ensure safe business is conducted with technology support amid the current COVID-19 fight.

In particular, the company launched DOJI Smart jewelry shopping malls which pioneer in bringing breakthrough applications to make use of artificial intelligence and virtual reality technology, helping to enhance customers’ experience.

Outbound tours set to boom in March and April

Outbound tours are expected to flourish in March and April once Vietnam resumes international tourism from March 15, according to travel firms.

A large number of tours to destinations such as Thailand, Cambodia, Dubai in the United Arab Emirates, India, and the United States have already been fully booked.

The Tourism Authority of Thailand’s office in Ho Chi Minh City also revealed it would organise a tour for Vietnamese and Cambodian tourists to visit places of interest in Bangkok and Chiang Mai in late March.

Meanwhile, Nguyen Nguyet Van Khanh, head of the marketing Division of Vietravel pointed out that travelling abroad is forecast to flourish this summer, noting the company has worked with tourism authorities of Japan, Thailand, and the Philippines to promote outbound markets.

Besides Asian markets, travel companies are preparing for tours to the Europe or Australia after these destinations announced the granting of tourist visas for Vietnamese citizens from mid-February.

Dong Nai posts trade surplus of over 1.5 billion USD

The southern province of Dong Nai enjoyed a trade surplus of over 1.5 billion USD in the first two months of 2022, the highest in the past three years, according to the provincial Statistics Office.

The locality earned 4.4 billion USD from exports in January – February, up nearly 32 percent compared to the same period last year. Meanwhile it spent nearly 2.9 billion USD on imports in the period, up over 9 percent year-on-year.

Foreign-invested businesses contributed nearly 3.3 billion USD to the locality’s export revenue, the office said.

Groups of products enjoying good growth in the period included machinery, equipment, tools and spare parts; wooden product; footwear; textiles; and computers, electronic products and components. The US, Europe and Japan were the biggest importers of Dong Nai’s commodities.

Reference exchange rate up 10 VND on March 3

The State Bank of Vietnam set the daily reference exchange for the US dollar at 23,143 VND/USD on March 3, up 10 VND from the previous day.

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,837 VND/USD and the floor rate 22,449 VND/USD.

Moscow’s trade with Vietnam rises 36 percent last year

Moscow’s trade with Vietnam reached 3.9 billion USD in 2021, up 36 percent from the previous year, according to statistics released by the Russian capital’s portal on March 2.

Moscow Deputy Mayor for economic policy Vladimir Efimov said his city’s non-energy and non-natural resource exports to Vietnam increased 7 folds from 2020, accounting for 97 percent of the total shipments to the Southeast Asian nation.

The non-fuel exports surged to 533.3 million USD in 2021 from 76.79 million USD in 2020, with mechanical, electrical, and communication equipment making up a large proportion.

Vietnam is one of the important partners of Russia in the Asia-Pacific, the official noted.

EVN, Singaporean firm cooperate in power development in Vietnam

Representatives of the Electricity of Vietnam (EVN) and Sembcorp Utilities Pte Ltd of Singapore are having an online working session from March 1 -3 to discuss cooperation in power projects in Vietnam.

The two sides will partner to improve the reliability and stability of electricity systems, develop a smart grid, and address main challenges of power networks in Vietnam.

They will also cooperate in developing and optimising renewable energy projects, developing Dung Quat power centre, and promoting the exchange of experts.

Foreign arrivals rise 71.7% over two months

The number of foreign arrivals to Vietnam during the past two months has risen 71.7% year on year to 49,200, reported the General Statistics Office on February 28.

In February alone, Vietnam attracted 29,500 foreign visitors, up 49.6% month on month and up 169.6% year on year.

More than three fifths of the foreign arrivals (32,700) came to Vietnam from Asia, one fifth (10,100) from Europe, and 10% (4,800) from the Americas. The remainders came from Oceania and Africa.

The rise was attributed to the government’s decision to reopen all regular international air routes from 0:00 on February 15.

Vietnamese honey risks losing US market due to high anti-dumping tariff

The local beekeeping sector is at risks of being negatively impacted in the event that the United States imposes an anti-dumping tariff of up to 400%, according to industry insiders.

This comes amid the US Department of Commerce planning to apply its highest ever tariff rate of over 412% on raw honey imported from the nation, which exports more than 85% of its honey to the US market.

The final conclusion on the application of the tax rates is set to be issued by the US Department of Commerce in April.

Late last year, the DOC issued preliminary conclusions regarding the anti-dumping probe into local honey products.

In line with this the DOC determined the dumping margin of between 410.93% and 413.99% for honey products originating from the nation and moved to impose a corresponding temporary tax rate.

Currently, there are roughly 35 Vietnamese companies exporting honey, with an annual turnover reaching between US$70 million and US$100 million.

Disbursed public investment capital close to 9% in two-month period

Disbursed investment capital from the State budget during the initial two months of the year stood at an estimated VND46.3 trillion, equal to 8.8% of the year plan and growing by 10.4% over the same period from 2021, according to data provided by the General Statistics Office (GSO).

Disbursed investment capital from the State budget in February was estimated to be at VND20,500 billion, an increase of 9.9% over the same period from last year.

Most notably, disbursed investment capital managed by the Government reached VND6,400 billion, equal to 6.4% of the yearly plan, an increase of 10.1% over the same period last year.

Disbursed investment capital managed by localities hit a figure of VND39,900 billion, equivalent to 9.3% of the year plan, up by 10.4% on-year.

Export-import turnover up 13 per cent in first two months

Viet Nam’s export-import turnover hit an estimated over US$108.5 billion in the first two months of this year, up 13 per cent compared to the same period last year, the General Statistics Office (GSO) reported on Monday.

The export revenue posted an increase of 10.2 per cent to $53.79 billion.

In January and February, nine export commodities recorded a turnover of at least $1 billion, accounting for 71.6 per cent of the total export value.

The US remained the biggest importer of Vietnamese commodities in the last two months, with an estimated $18.3 billion.

Meanwhile, the country’s import turnover was up 15.9 per cent during this period, with 13 types of goods valued at over $1 billion. Viet Nam mainly imported goods from China, the Republic of Korea (RoK) and ASEAN countries.

Vietnam’s footwear market share rises to over 10 percent in 2020: report

Vietnam occupied over 10 percent of share in the world footwear market for the first time in 2020, accoding to the World Footwear Yearbook 2021.

According to the report, which was released by the Portuguese Footwear, Components, Leather Goods Manufacturers' Association (APICCAPS), in 2020, the market share of Vietnam rose from 2 percent to 10.2 percent.

It said that in the year, Vietnam exported about 1.2 billion pairs of shoes. It was followed by Indonesia with 366 million pairs, accounting for 3 percent of the market share.

Meanwhile, China took the top position by providing 7.4 billion pairs of shoes to the market.

Germany surpassed Belgium and Italy to become the biggest footwear exporter in Europe.

Thai Vietjet to resume Bangkok – Da Nang air route in late March

Thai Vietjet - the operator with most flight services between Vietnam and Thailand, has announced that the carrier will resume its international air service linking the Thai capital city of Bangkok and the central beach city of Da Nang in Vietnam from March 27, 2022.

Accordingly, in the early stage, the Bangkok-Da Nang air route will be operated with three flights a week on every Wednesday, Friday, and Sunday, with the flight time of around 1 hour and 40 minutes per leg. Further frequency can be increased later subject to market demand.

The service connecting Bangkok with Da Nang is the firm’s next tourism bridge between Thailand and Vietnam after the current Bangkok-Ho Chi Minh City route, and it will continuously expand its flight network to provide more new safe services to more than 170 million people of the two countries in the near future, she noted.

Tra Vinh approves investment of 96MW wind power plant

The Mekong Delta province of Tra Vinh has approved the investment plan and investor of the 96 MW Thang Long wind power plant in Luong Hoa A commune, Chau Thanh district.

The project, which has total investment of 3.86 trillion VND (169 million USD) by Thang Long Tra Vinh Wind Power JSC, is the ninth of its kind licensed in Tra Vinh. So far five plants have become operational with total capacity of 322 MW.

The project has 24 turbines, covering nearly 600 hectares, including 545 hectares of water surface. It is scheduled to become operational in the third quarter of 2023.

VinFast introduces detailed designs of smart electric vehicles VF 8, VF 9

Vietnamese automaker VinFast and Italian car design firm Pininfarina have introduced the details of the exterior and interior designs of smart electric vehicles VF 8 and VF 9 at the Mobile World Congress 2022 (MWC 2022).

In terms of the exterior, Pininfarina utilised a modern design to optimise aerodynamics and reduce energy consumption, while embracing the importance of aesthetics to promote the unique personalities of the vehicles.

Meanwhile, the interior of the two models is a combination of premium aesthetic standards, meticulous and delicate craftsmanship, and comfort thanks to the integration of the most advanced technologies.

VinFast is researching the application of eco-friendly materials, such as Eco-leatherette, for the interior of its vehicles in the coming time. It also proactively applies multiple solutions that help reduce water waste and chemical emissions.

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

VIETNAM BUSINESS NEWS MARCH 2

Vietnamese export, import affected by Russia-Ukraine conflict