Arrangements have been in place to ensure the success of the 8th Buon Ma Thuot Coffee Festival, scheduled to take place in the Central Highlands province of Dak Lak from March 10 to 14, the organising committee has said.

With 18 official activities to be held, the festival aims to popularise the brand and promote the development of specialty coffee in Vietnam while gradually turn Buon Ma Thuot city into a world coffee destination.

It is set to see the participation of 37 international delegations, including the Embassies of the US, Australia, Mongolia, Morocco, Angola, and Saudi Arabia in Hanoi; the Consulates General of India, Cambodia, Cuba, and Russia in Ho Chi Minh City; and the Consulate General of Laos in Da Nang city. Two arts troupes from Champasak province of Laos and Jeollabuk province of the Republic of Korea will also perform at the festival.

The event is expected to attract about 50,000 visitors, according to the organising committee.

Twelve travel companies have designed 42 tours offering diverse experiences to visitors during the festival, the Dak Lak Department of Culture, Sports and Tourism said, adding that it has asked tourism service providers to make the best preparations to ensure absolute safety for and leave good impression on visitors.


Three festival information centres will be opened, and three hotlines will also put into service to receive feedback from local residents and tourists.

Besides, the provincial People’s Committee has also demanded public security and military units work with local authorities to guarantee order and safety and stay ready to respond to any circumstances, Hieu added.

Nguyen Tuan Ha, Standing Vice Chairman of the Dak Lak People’s Committee and head of the organising committee, said the Buon Ma Thuot Coffee Festival is a national event, giving the province a chance to develop the coffee industry, boost economic growth, and improve the life quality of local ethnic groups. Therefore, the provincial administration has ordered relevant units to make the best preparations to win satisfaction from locals and visitors.

Quang Ninh strives to complete procedures for 18 FDI projects in 2nd quarter

The northeastern province of Quang Ninh is striving to complete investment procedures for 18 foreign direct investment (FDI) projects within the second quarter of this year.

Vice Chairman of the provincial People’s Committee Bui Van Khang on March 7 asked the Quang Ninh Economic Zone Authority (QEZA) to work with departments, agencies, and localities to complete the province’s foreign investment attraction plan for 2023.

Earlier, the province set a goal to attract 18 new FDI projects with a total registered capital of over 1.2 billion USD  into industrial parks, covering a total industrial land area of about 200 ha. It also plans to increase the occupancy rate of local industrial parks from 40.73% to 45.89% in 2023.

According to the QEZA, in 2022, industrial parks and economic zones under its management attracted nearly 52.7 trillion VND (2.22 billion USD), of which, FDI capital is 623.8 million USD.

February exports provide positive signal in Binh Duong province

The southern industrial hub of Binh Duong has seen a recovery in exporting activities with many major exports seeing increases in revenue in February after a slump in orders in the first month of the year, according to the provincial Department of Industry and Trade.

The department said that in February, the province recorded a surge of 91% in the export of wood and wooden furniture, 33% in garments, 28% in electronic accessories, and over 30% in automobile spare parts.

In the month, the locality posted a 42.7% increase in export revenue over January and 25.7% year on year.

The domestic sector earned 497 million USD, 46.2% month on month and 26.5% year on year, while that of the foreign-invested sector was 2.1%, a year-on-year rise of 25.5%.

According to the provincial Statistics Office, despite the February rise, Binh Duong still saw a year-on-year decrease of 18.7% in export revenue in the first two months of this year.

The US was still the largest export market of Binh Duong in the January-February period with nearly 1.5 billion USD, accounting for 32.2% of the province’s total export revenue.

A downturn was also seen in other traditional markets such as the EU (21.4%), Japan (6.1%), and the Republic of Korea (20.8%).

According to the Binh Duong Association of Exporters, in the beginning of the year, a shortage of orders due to a global recession, coupled with a long Lunar New Year holiday and high interest rates, hurt production and export activities of local firms.

However, local exporters have seen a recovery in orders and received great support from the local administration, it said.

In the first two months of this year, Binh Duong posted a trade surplus of 905 million USD, with the domestic sector earning 326 million USD and foreign-invested sector enjoying 579 million USD.

Vietnam’s probiotics market attracts RoK businesses

Businesses from the Republic of Korea (RoK) have been reportedly promoting probiotics marketing to tap into growing demand in Vietnam.

During the five-year period through 2021, Vietnam’s imports of this kind of products grew by an annual average of 16%. The country imported those products mainly from the US (31%), Singapore (22%), and Malaysia (5%), statistics show.

Probiotics is said to be the most typical nutritional supplements in Vietnam. Local consumers prioritise trustworthiness and safety instead of prices, and they tend to prefer imports such as those from the US, Europe, and Japan.

In 2021, Vietnam imported about 41 million USD worth of probiotics from the RoK, turning this Northeast Asian country into the fourth largest supplier in 2021, from the 8th position in 2017. Imports from the RoK increased about 23% each year during this period.

Some Korean products distributed in Vietnam include Vitamin PLUS of Ildong Foodis, Duolac Baby Probiotics of Cell Biotech, and Daily Probiotics of Mediogen. Like other imports, Korean products are classified as high-end items sold at relatively high prices compared to local products.

Vietnam, Japan should foster ties in development cooperation: official

Vietnam and Japan should continue to beef up their partnership in the field of development cooperation, while working closely together to settle all obstacles for projects using Japanese official development assistance (ODA) in Vietnam, Deputy Minister of Planning and Investment Tran Quoc Phuong said at a high-level Vietnam-Japan economic conference held in Hanoi on March 7.

He suggested the Japanese side provide big soft loans with high preferences and more simple and flexible procedures for large-scale projects supporting regional connectivity in Vietnam, focusing on transport infrastructure, climate change, digital transformation and health care.

Phuong said that since 1992, with over 2.7 trillion JPY (19.88 billion USD) in ODA loans, nearly 100 billion JPY in non-refundable aid and approximately 180 billion JPY in technical assistance, Japan's ODA has accounted for over 30% of the bilateral development assistance capital that Vietnam has received.

He underlined that Japanese ODA has greatly contributed to Vietnam's socio-economic development, especially through infrastructure development, technology transfer, and human resources training.

Meanwhile, Japanese ODA has, directly or indirectly, helped Vietnam attract foreign investment, especially from Japan, while contributing to poverty reduction in the Southeast Asian country, he said.

The Deputy Minister highlighted major strategic breakthroughs that Vietnam has defined in the socio-economic development strategy for the 2021-2023 period, including the completion of institutions, human resources development and building a synchronous and modern infrastructure system.

He emphasised the significance of Japanese ODA in Vietnam’s new development period, explaining that the diverse ODA provision forms match Vietnam’s demands, especially in the implementation of the three strategic breakthroughs.

Workshop discusses UK’s green and fair trade with Vietnam

Foreign investors, including those from the UK, are becoming more and more concerned about the environment and climate, said Ambassador of the UK to Vietnam Iain Frew.

Speaking at a workshop themed “The UKVFTA – Green and Fair Trade with Vietnam” on March 7 in Hanoi, Frew said his country is delighted that Vietnam is becoming a regional leader in sustainability, with its ambitious commitment to net-zero emissions by 2050 at COP26.

Jointly hosted by the Ministry of Industry and Trade and the UK Embassy in Vietnam, the hybrid event provides a platform for discussion on the UK’s green and fair trade with Vietnam through the UK-Vietnam Free Trade Agreement (UKVFTA) , commitments on renewable energy generation, plans to implement these commitments and opportunities and challenges in renewable energy development in Vietnam.

It is expected to help the export business communities of both countries fully tap the incentives from the agreement, especially in the field of green and fair trade  – the inevitable development trend of global trade.

In addition to the extensive tariff reduction roadmap, the UKVFTA also creates clear advantages for many products of strength of both countries to penetrate each other's markets.

On the other hand, with commitments related to sustainable development, the agreement is also an important framework for cooperation activities on green and fair trade.

Deputy Minister of Industry and Trade Dang Hoang An said that Vietnam is in the transition to fulfill international commitments on sustainable development, energy saving and climate change response.

For businesses, this is an opportunity to create environmentally friendly goods and services, and make them adaptive to increasingly high standards on environmental protection and anti-climate change, he noted, adding that the workshop is the initial contribution to improving social understanding and governance capacity as well as to supporting businesses in addressing new and urgent issues, he said.

Speakers and experts provided more specific information on relevant commitments in the UKVFTA, the UK's green and fair trade policy to meet the requirements of sustainable development and climate change adaptation.

Ways to transition to a green and sustainable trade, standards and notes on “green criteria” for exports to the UK market, as well as cooperation opportunities in renewable energy between the two countries were also put on table.

In 2022, two-way trade between Vietnam and the UK increased 3.3% year-on-year, with many key export products of Vietnam posting high growth.

In terms of investment, the UK has so far run 507 projects worth nearly 4.2 billion USD in Vietnam. In 2022 alone, there were 53 newly registered projects with a registered capital of 134.66 million USD by UK firms.

The European nation is now the 15th largest investor out of 141 countries and territories investing in Vietnam, mainly focusing on renewable energy, finance, banking, and oil exploitation.

Joint initiative helps increase investor confidence in Vietnam: official

As one of the effective dialogue channels, the Vietnam - Japan Joint Initiative (VJJI)  has contributed to improving the domestic business and investment environment, and raising investor confidence, including those from Japan, said Minister of Planning and Investment Nguyen Chi Dung.

Addressing a high-level economic seminar  between Vietnam and Japan on March 7 in Hanoi, Minister Dung said from these results, Japanese investors are confident about investing anew and expanding existing investment in Vietnam.

He affirmed that after more than 20 years of implementation, the initiative has had a great and multifaceted impact, and has been welcomed by the investor community, especially Japanese investors.

It is seen as one of the most effective dialogue and cooperation forums of the Vietnamese Government, he noted.

With the goal of becoming an upper middle-income country by 2030, Vietnam is focusing on applying science and technology; promoting innovation, digital transformation, green and circular economic development, and the knowledge economy, Dung said.

Vietnam wants to work in unison with the business community, especially Japanese firms that have great potential and are suitable for priority areas of the Vietnamese Government, he added, suggesting Japanese businesses participate more deeply in the policy consultation process through the initative.

Japanese businesses can propose Vietnam's policy development, focusing on issues related to technology transfer, digital transformation, green technology and innovation, and become more deeply involved in the implementation of mechanisms and policies, he said.

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.

As many as 84% of the workload was completed well and on schedule in the VJJI Phase VIII, which 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.

Meanwhile, Vietnam has 104 investment projects in Japan with registered investment capital of 19.2 million USD.

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

Vietnamese value-added products exhibited at Foodex Japan

As many as 36 Vietnamese businesses are showcasing their products at the 48th international food and beverage exhibition (Foodex Japan 2023) which kicked off in Tokyo, Japan, on March 7.

Many famous Vietnamese brands operating in the agricultural and food industries such as Masan Consumer JSC (Masan), The PAN Group JSC, and Dong Giao Food Export JSC (Doveco) attended the event.

Notably, Masan, for the first time, introduced a CHIN-SU spice collection that it developed specifically for the Japanese market, which is a unique combination of Vietnamese and Japanese cuisines.

Dinh Hong Van, Senior Marketing Director of Masan, said that the research and development of products suitable for Japanese culinary culture is a new strategy of Masan to meet the goal of bringing Vietnamese spices and brands to the world.

Masan also plans to sell products in the collection in Vietnam in March, offering opportunities for domestic consumers to experience more new spices.

Jorgre Imai, President of Imai Co., Ltd. - one of the Japanese importers of agricultural and food products, said Masan's move is a good signal for Vietnamese products, adding that his firm welcomes pioneering businesses to bring new products into the Japanese market.

The PAN Group is also exhibiting value-added Vietnamese agricultural products such as tra fish, dried fruit, and coffee, which are deeply processed and produced meeting strict standards.

By attending Foodex Japan 2023, The PAN Group wants to prove to the international community that Vietnamese-branded agricultural products and foods are high quality and can compete with products of any any country in the world, Nguyen Thi Tra Mi, Vice Chairwoman of the Board of Directors and CEO of the group, said.

Other Vietnamese products displayed at the event are fresh and processed vegetables and fruit, nutritious foods, aquatic and seafood products, spices, alcoholic or non-alcoholic beverages and confectionery.

According to Nguyen Duc Minh, Chargé d’affaires a.i. of the Vietnamese Embassy in Japan, the demand of Japanese consumers for Vietnamese goods has been increasing in recent years.

Meanwhile, Trade Counsellor of Vietnam in Japan Ta Duc Minh expressed his belief that after penetrating into Japan, Vietnamese products can reached other markets around the world.

First held in 1976, Foodex Japan is the largest international food and beverage exhibition in Asia. This year’s event, which attracted businesses and organisations from 44 countries and territories around the world, will run until March 10.

Gift market gets International Women’s Day boost

Flower and gift shops and supermarkets in Ho Chi Minh City have launched promotions and exciting events on the occasion of International Women’s Day (March 8).

Traditionally, fresh flowers are among the top gifts on the occasion.

Shops at the Ho Thi Ky Flower Market in District 10 are selling a wide range of locally grown orchids, lilies, roses, sunflowers, carnations, and other flowers and imports from Ecuador, the Netherlands, South Africa, and elsewhere such as roses, hippeastrums and allium globemasters to offer customers more choices.

Chi Dien, a shop owner there, said customers could choose bouquets at prices ranging from a few thousand to millions of dong.

Others said sales had increased sharply in recent days as had prices, and would increase further on March 8.

Flower shops in Districts 3, 5 and 10 are also selling bouquets besides fruits such as strawberries and cherries that cost from 600,000 VND (25.4 USD) to over 2 million VND (84.8 USD).

Fashion and cosmetics shops on Nguyen Trai, Hai Ba Trung and Nguyen Dinh Chieu and Le Van Sy streets are decked out in promotion banners.

Tailor shops have been offering discounts of up to 50 per cent on clothes and stitching a traditional long dress.

Supermarkets have introduced a wide range of products for International Women’s Day and are offering promotions to attract buyers.

Saigon Co.op is offering discounts of up to 40% on more than 830 beauty products such as lipstick, skin care cream, body lotion, shampoo, and clothes at its Co.opmart, Co.opXtra, Co.op Food, Co.op Smile, Cheers, Finelife, and Co.oponline.  

Women members shopping at Co.opmart and Co.opXtra on March 8 will get up to 300 reward points depending on bill value.

Besides the system-wide programme, each of Saigon Co.op’s retail brands have their own.

Another supermarket chain, WinMart, is also offering attractive promotions on many cosmetic and personal care products under its "Nhan sac thang hang – Ron rang san sale" promotion week.

E-commerce platforms, commercial banks, travel companies, restaurants, and others have also rolled out promotion programmes for women customers.

Sacombank has launched a promotional programme worth 6 billion VND (253,040 USD) for women with thousands of gifts in cash and vouchers for dining, fashion and beauty services, and other privileges between March 1 and 8.

Women applying for a Visa credit card will get the issuance, cash withdrawal and annual fees waived. Transactions of 1 million VND in the first month using the card will get them a refund of 500,000 VND.

At Viet Capital Bank, women customers making a savings deposit of 10 million VND or more for six to 15 months will get an extra 0.38 percentage point.

Those opening a current account from March 6 to 10 can get their preferred account number for free.

Banks slash deposit rates

Ten commercial banks have cut their deposit rates by 0.3-0.8 percentage point following a meeting between the central bank and commercial banks in early March.

This marked the second interest rate cut, with the highest deposit rate now standing at 9.5% a year.

Annual deposit rates at MSB have dropped by 50 basis points, leaving the rates at MSB at 7.8% for six-month and nine-month tenors, 8.1% for 12-month tenors, and 9% for 15-month and 24-month tenors.

BAB and Sacombank cut their deposit rates by around 0.3-0.8% annually.

BAB now offers a rate of 8.6% for six-month and nine-month terms, 8.7% for 12-month terms, and 9.2% for loans of 13 months or longer, while Sacombank’s deposit rates have fallen to 7.5%, 7.7% and 7.9% for loans of six, nine and 12 months.

Other banks, such as PVcomBank, NAB, NCB and VietAbank, also lowered their interest rates, ranging from 0.4-0.8%.

Four state-owned banks, comprising Agribank, BIDV, VietinBank and Vietcombank, now quote their rates at 6% for tenors from six to below 12 months and 7.4% for loans from 12 to 36 months.

In a recent report by securities firm VNDirect, bank deposit rates may drop further as the year progresses, at 6.7% for six-month terms and 7.5% for 12-month terms in late 2023.

Rice exports down in Jan-Feb

Vietnam exported 789,000 tons of rice worth US$417 million in the first two months of 2023, down 18.8% in volume and 10.8% in value year-on-year, according to data from the Ministry of Agriculture and Rural Development.

However, the export price of Vietnamese rice between January and February averaged out at US$528.5 per ton, up nearly 10% against the year-ago period, the local media reported.

The Philippines was the country’s largest rice buyer in January, importing 129,300 tons of rice valued at US$64.6 million, down 44.7% in volume and 41.4% in value year-on-year.

Despite the fall in rice exports in the first two months of the year, Vietnam’s export of the food staple is forecast to boom this year due to higher demand from Indonesia, Bangladesh and some other nations.

Droughts in the United States, Europe and China are expected to threaten rice supplies, while India has banned exports of broken rice and imposed a 20% export tax on many types of rice, making it easier for Vietnam’s rice exports.

Furthermore, the improved quality of Vietnamese rice has attracted many international rice buyers.

High-level seminar explores new possibilities for Vietnam-Japan relations

A high-level economic seminar between Vietnam and Japan was held in Hanoi on March 7 to explore new possibilities for bilateral relations towards the future.

The event was held by the Ministry of Planning and Investment, the Japanese Embassy in Vietnam, the Japan Business Federation, and the organising committee for celebrations of the 50th anniversary of the countries’ diplomatic relationship (September 21).

In his remarks, Prime Minister Pham Minh Chinh said 50 years after the establishment of bilateral diplomatic ties, the Vietnam - Japan friendship and cooperation have been unceasingly reinforced and developing in various fields

Particularly, economic, trade, and investment partnerships have continually received special attention and been promoted comprehensively. Both sides have built many important legal frameworks for bilateral ties and are currently members of new-generation free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP).

These are important corridors for fostering bilateral trade and investment links in the mutually beneficial and supporting spirit, he noted.

Japan has become the biggest ODA provider for Vietnam with more than 2.7 trillion JPY (19.8 billion USD) in loans, nearly 100 billion JPY in non-refundable aid, and 180 billion JPY for technical cooperation, substantially contributing to large-scale infrastructure projects, creating momentum for sustainable socio-economic development, and helping with the transfer of advanced technology and human resources training in Vietnam.

It currently has more than 5,000 valid investment projects worth nearly 70 billion USD in total, ranking third among the 141 countries and territories investing in Vietnam. Meanwhile, the Southeast Asian country is investing in 104 projects worth 19.2 million USD in Japan, which stands at the 36th position among the 79 destinations of Vietnamese investment.

Bilateral trade approximated 50 billion USD in 2022, turning Japan into the fourth largest trading partner of Vietnam, which exported nearly 25 billion USD worth of goods to the Northeast Asian nation.

Besides, the Vietnam - Japan Joint Initiative, a special cooperation mechanism between the two Governments, has been carried out in eight phases over 20 years, generating numerous encouraging results in improving Vietnam’s investment climate and competitiveness.

Vietnam highly values the determination, seriousness, and effectiveness of Japanese investors and also understands their sincerity, trust, and commitment, PM Chinh said, appreciating the Japanese Government and enterprises’ contributions to Vietnam’s development achievements.

He held that the countries’ cooperation potential remains diverse and huge, calling on FDI businesses, including Japanese ones, to increase training high-quality human resources, apply advanced management science, and step up research, development, and innovation, thereby turning Vietnam into a centre in regional and global value chains.

The Vietnamese Government will always stand side by side with and create the best possible conditions for Japanese investors to make successful, sustainable, and long-term investment in the country, he emphasised, considering their success as Vietnam’s.

The PM expressed his belief that as the traditional cooperation, comprehensive results, sincerity, and mutual trust, are brought into full play, bilateral relations will continue to be consolidated in a more substantive manner, heralding a new era for the ties for the sake of the two peoples and for peace, stability, cooperation, and development in the region and the world at large.

At the seminar, participants made term-end review of the 8th phase of the Vietnam - Japan Joint Initiative, looked back on cooperation over the last 50 years, and discussed the vision for the next five decades.

Coal-fired thermal power accounts for over 42 percent of total power generation

According to the latest report from the Vietnam Electricity Group (EVN), currently, coal-fired thermal power still accounts for over 42 percent.

In March, coal-fired thermal power plants and gas turbines will be mobilized at a high level to retain water in hydropower reservoirs.

On March 7, EVN reported that in February 2023, the total electricity output of the system hit 20.22 billion kWh, up 9.4 percent compared to the same period in 2022. However, in the first two months of the year, the total electricity output of the system reached 38.61 billion kWh, a decrease of 2.2 percent compared to the same period.

The mobilization ratio of some types of power sources on the total electricity output of the system is as follows: hydropower accounts for 27.4 percent; coal-fired thermal power accounts for 42.7 percent; gas turbines account for 11.2 percent; renewable energy accounts for 16.7 percent. The electricity transmission output in February reached 16.1 billion kWh. In the first two months of 2023, the electricity transmission output reached 30.53 billion kWh, up 0.2 percent compared to the same period last year.

Regarding investment in power generation, the focus is currently on the expansion of the Hoa Binh and Ialy hydropower projects and the Quang Trach 1 thermal power project. The Trị An hydropower project expansion is waiting for the approval of the investment plan by competent State management agencies and the People's Committee of Dong Nai Province. The Bac Ai hydropower project continues to finalize the technical design in phase 2.

As for electricity grid investment, in the first two months of 2023, EVN and its units started construction of seven projects, completed energizing, and put into operation 11 power grid projects from 110kV to 500kV.

By the end of February 2023, EVN units completed 97.18 percent of the digital transformation plan. EVN continues to affirm that in terms of financial situation, due to the sudden increase in input fuel prices for power generation since the beginning of 2022, while retail electricity prices have been maintained unchanged since 2019, EVN's financial situation has encountered many difficulties, unable to ensure financial balance.

In March 2023, EVN plans to achieve an average daily electricity consumption of the entire system of 743.5 million kWh per day. The operating objective is to continue to ensure electricity generation and supply for production and daily life activities. The multi-purpose hydroelectricity plants will be maximally saved, and the remaining plants will be exploited according to the optimal regulation plan to meet grid constraints, system requirements, and water supply demands in downstream areas.

In addition, EVN will mobilize coal-fired and gas-turbine power plants at a high level to maintain the water levels of hydroelectric reservoirs; mobilize imported coal-fired power plants as needed, ensuring constraints against grid overload and voltage quality.

At the same time, to reduce difficulties in operating the power system during the dry season of 2023, EVN continues to advise people, government agencies, and production facilities to use electricity safely and efficiently.

In March, EVN and its units will focus on urgently completing energizing some works. It will also prepare to implement events and communication activities in response to the 2023 Earth Hour campaign.

Building a reliable corporate bond market

Many businesses will see their bonds mature in 2023, with about $6.5-8.7 billion being due.

Since its establishment, Vietnam's capital market – including the corporate bond market – has grown rapidly in terms of scale and the range of available products, with quick liquidity contributing to the mobilisation of financial resources.

However, the size of Vietnam's corporate bond market is still quite modest. Currently, the outstanding debt of the corporate bond market stands at about 15 per cent of GDP, but the country's financial strategy aims for this to reach 20 per cent by 2025 and at least 25 per cent by 2030.

The capital market at the end of the first quarter of 2022, including the bond and stock market, had a capitalisation rate of 134.5 per cent of GDP. Stocks alone reached 94 per cent, corporate bonds hit 16.4 per cent, and the government bond market was 23 per cent. Thus, the capital market is taking up the same proportion as outstanding bank credit (almost $490 billion and equivalent to 132 per cent of GDP).

At the time of reaching 16.4 per cent of GDP, many experts and investors expected the corporate bond market to gradually replace and reduce the burden on the bank credit market – which is still the country's largest source of funding.

However, over the past two years, the bond market has faltered as it has been pressured by a number of market fluctuations and drops in investor confidence due to legal incidents and inaccurate media reports on some bond issuers. At the same time, the inspection and supervision focused on the purpose of bond issuance also led to concerns from both issuers and service providers.

This has had a significant impact on the market, even causing investors to lose confidence in corporate bonds, which are inherently transparent and safe. If this problem continues for a long time, it will be a burden on the financial resources that are vital to support the economy. The decline in capital mobilisation through the corporate bond market is increasing the pressure on the liquidity of many businesses.

Within the framework of the 5th Vietnam Economic Forum co-chaired by the Central Economic Commission and the government, Nguyen Quang Thuan, chairman of FiinRatings said that improving the transparency of corporate bond issuers is the key to restoring confidence and gradually opening up this important capital channel.

When assessing the reliability of corporate bonds, it is important to consider the reputation of the issuer, which should be verified by international financial institutions. For example, in November 2022, Masan Group successfully raised a $600 million syndicated loan, despite the market fluctuations. It was underwritten and attracted 37 international financial institutions to oversubscribe.

As a leading retail consumer group in Vietnam, Masan has constantly attracted investment from prestigious international funds and credit institutions such as TPG, the Abu Dhabi National Investment Fund, and SeaTown Holdings ($350 million).

SK Group has continuously poured capital into Masan's retail segment ($750 million) to realise its online-offline integration strategy with the point-of-life platform.

Another notable investor is the group from Alibaba and Baring Private Equity Asia – one of the largest alternative investment funds in Asia ($400 million).

With solid financial capacity and strong cash flows, the total principal and interest paid by Masan in 2022 was $475 million. Of this, the total value of long-term loans paid early was $200 million. In November 2022, Masan successfully issued $72 million in bonds for professional investors that mature in August 2023.

Pig prices sees sharp drop

Pig prices in Vietnam have witnessed their sharpest fall for two years due to low demand.

On March 7, pig prices in the northern region decreased by VND1,000 to around VND49,000 (USD2.07) per kilo. The prices in the central and Central Highlands regions declined by VND1,000-3,000 to VND47,000-50,000 per kilo.

In the southern region, pig prices have also been on the fall to VND49,000-52,000 per kilo at present.

Nguyen Xuan Duong, chairman of the Vietnam Animal Husbandry Association, blamed the pig price decrease for lower demand amid the high inflation. Meanwhile, many enterprises at industrial parks have reduced their labourer number because of business difficulties. This has caused a fall in their pork demand. Pork consumption at restaurants in Vietnam has decreased.

Duong mentioned the trend in which more Vietnamese have selected other kinds of food to replace pork.

“Pork prices would continue falling in the next 2-3 months to come and the recovery would depend on the country’s economic situation,” Duong noted.

According to statistics of France-based Ipsos Strategy 3, Vietnam’s pork consumption per capita has dropped to 23.5 kilos in 2022 against 32 kilos in 2018. In the 2018-2022 period, Vietnam’s poultry meat consumption per capita increased to 20 kilos in 2022 from 12 kilos in 2018. The beef consumption surged to 5 kilos from 0.5-0.7 kilos in 2018.

The Ministry of Agriculture and Rural Development reported that by the end of last year, Vietnam's total live pig amount reached 4.5 million tonnes, up 3.6 percent on-year.

Vingroup helps Viet Nam go green with Vinfast car rental, taxi company
     
Chairman of Vietnamese conglomerate Vingroup Pham Nhat Vuong on March 6 announced the establishment of GSM (Green - Smart - Mobility) Joint Stock Company, offering VinFast electric car and motorbike rental and taxi services.

GSM is the world's first multi-platform green transport rental and taxi service aiming to promote electrified mobility while advocating a green lifestyle.

The company is expected to provide the market with 10,000 cars and 100,000 motorbikes made by the VinFast Trading Service Limited Liability Company, a subsidiary automaker of Vingroup.

With charter capital of VND3 trillion (US$126.77 million), GSM, founded by Vuong, who owns a 95 per cent stake, is expected to begin operation in Ha Noi next month and then nationwide this year. The company will offer rental services to transport companies, while operating its own electric taxi service.

Specifically, GSM will offer electric car rental services for traditional and online taxi service providers and their employees. At the same time, GSM will operate its own electric car taxi service.

Nguyen Van Thanh, CEO of GSM JSC, said: "GSM was established to further the development of the green and smart mobility ecosystem in Viet Nam, providing people with more options to use electric vehicles at reasonable prices.

GSM aims to promote the usage of electric vehicles by raising awareness about the convenience, intelligence, and sustainability of electric vehicles. By offering direct driving experiences (with test drive customers) and opportunities to enjoy smart technology features and amenities in vehicles (rental customers, electric taxi passengers), GSM will introduce VinFast electric cars to the broader public and gradually establish the habit of using smart and environmentally friendly transport in the daily lives of Vietnamese people. 

Viet Nam and Japan to strengthen ties on 50th anniversary of diplomatic relations
     
As an old saying goes, 'good land attracts birds' and Viet Nam has become such a 'good land' for investors that over 60 per cent of Japanese firms want to do business in the country, according to Prime Minister Pham Minh Chinh.

PM Chinh made the remarks at a high-level economic seminar on Tuesday on the 50th anniversary of Viet Nam-Japan diplomatic relations.

The PM said over the course of 50 years, Japan had positioned itself as Viet Nam's largest donor of Official Development Assistance, disbursing nearly 3 trillion yen (US$22 billion). Of which, 2.7 trillion comes as loans, 100 billion as aid, and 180 billion as financial support to cement technological cooperation.

The assistance has proved to be highly effective in fostering large-scale projects in the country, giving a big push to economic growth. More Japanese assistance has been called in to help Vietnamese strategic infrastructure maintain its momentum.

Regarding investment, Japan is the third-largest investor in Viet Nam, with over 5,000 active projects to date, amounting to an aggregate capital of nearly $70 billion. On the other hand, Vietnamese enterprises have initiated 104 projects in Japan with a total capital of approximately $20 million.

Commerce is the next sector in high gear. Accumulated bilateral trade hit about $50 billion by late 2022, with Japan being Viet Nam's fourth-largest trade partner. More importantly, the trade pattern is balanced as Viet Nam exports around $25 billion to and imports $24 billion from Japan.

The PM also highlighted the role of the Viet Nam-Japan Joint Initiative (VJJI) in improving Viet Nam's investment climate and consolidating its competitive advantages over other countries in the region.

He called on Japanese enterprises to push ahead with education and training, technology transfer, and knowledge-sharing to help Viet Nam lie squarely at the centre of the global supply chains.

"Vietnamese Government always looks on Japanese investors with favour and will do everything necessary to help them settle profitably in the country", said Chinh.

"The two economies are mutually supplementary and still have ample room for cooperation, especially in digital transition, supply chain diversification, and green growth," the PM said.

Ichikawa Hideo, co-chairman of the Vietnam-Japan Economic Committee, metaphorically described Viet Nam as a gateway of Asia to the world because of its geographical position and population of nearly 100 million.

For Japanese enterprises, Viet Nam had become a magnet for investment. Over 2,000 Japanese investors had an operational presence in the country with an aggregate accumulated investment of more than $65 billion.

The chairman also mentioned VJJI, which came into existence in 2003. He said the 20-year-old initiative had born fruit by helping Viet Nam move ahead with its institutional reform and infrastructure development.

"The initiative has already had a positive impact on the Vietnamese investment environment, facilitating foreign capital flows into the country", said Hideo.

He also asserted that his committee would spare no effort to take a more active role in the initiative to bring the bilateral relations to a new height.

Nguyen Chi Dung, Minister of Planning and Investment, opined that VJJI was a dialogue channel instrumental in improving the Vietnamese investment environment.

He called on Japanese enterprises to assist Viet Nam in its path toward digital transition and circular economy, which are a prerequisite for its goal of becoming an upper-middle income country by 2030.

He also suggested a programme to strengthen the ties between Vietnamese small- and medium-sized enterprises (SMEs) and Japanese counterparts in several fields, including digital transition and component industry.

"Vietnamese SMEs have the labour whereas Japanese ones have technologies and know-how. They are mutually supplementary", said Dung. 

Viet Dragon to issue VND410 billion in bonds for debt payment

The Board of Directors of Viet Dragon Securities Corporation has just approved a plan to issue private corporate bonds for the first time in 2023 and repurchase bonds.

The securities firm plans to release 4,100 private corporate bonds with a par value of VND100 million (US$4,214.96) a bond. They are non-convertible bonds, without warrants and collateral. If the issuance is successful, the company is expected to obtain VND410 billion.

The term of the batch is one year, with a fixed interest rate of 10.15 per cent a year. The interest is paid once a month while principal is paid once on the maturity date.

The security company plans to use money collected from the offering to restructure debts, including paying principal of due bonds and/or bank loans and to use in savings.

On January 19, Viet Dragon successfully issued VND202.7 billion of one-year bonds, expiring on December 28.

It has issued a total of 26 batches of bonds from April 2021 to March 2023, mobilising more than VND4.7 trillion, mostly in 2022.

Regarding the bond repurchase plan, depending on the business situation and capital capacity, the company will buy back a part of the issued bonds before maturity at the request of the bondholders.

It manages to redeem up to 50 per cent of the issued bonds after six months from the issuance date with the redemption interest rate not exceeding 9 per cent a year.

On the stock market, Viet Dragon’s shares are traded on the Ho Chi Minh Stock Exchange (HoSE). 

Synchronising 78 million identifiers with personal tax codes
     
In an effort to streamline tax data for the national database on population, the General Department of Taxation (GDT) is aiming to complete the synchronisation process and unify the use of citizen identification numbers as personal tax codes this year.

According to GDT Deputy Director General Dang Ngoc Minh, there are currently 78 million identifiers that need to be standardised.

On Wednesday, the General Department of Taxation convened an online meeting with tax departments from several provinces and municipalities to discuss plans for reviewing and standardising personal tax identification numbers.

If the national population database has detailed information on taxpayers, the tax office must ensure that at least three fields of information are complete and accurate.

This information must include full name; date, month, year of birth; citizen identification number or taxpayer's identifier to query the Ministry of Public Security database.

Minh shared that the General Department of Taxation has used two services to connect and share with the national population database of the Ministry of Public Security and actively analyse individual tax registration data in the past time.

Through assessing the current situation of personal tax identification number data, the General Department of Taxation realised that it was necessary to review and standardise the personal tax identification number data to ensure sufficient information to determine the identification numbers of the taxpayers.

The deputy director general said that the tax authority was determined to standardise personal tax identification data and use citizen identification numbers as tax identification numbers under the direction of the Ministry of Finance.

He also suggested that professional solutions and IT applications be created in reviewing and standardising data.

In addition, provincial and municipal tax departments should continue to disseminate information on the policy of changing the tax code with the citizen identification numbers and closely support and guide taxpayers in changing tax registration information.

VCCI calls for extended land-use tax and rent
     
The Vietnam Chamber of Commerce and Industry (VCCI) has recently proposed business tax duties should be postponed for six months for the year 2023.

The chamber said under the current tax regime all procedures must be done by the end of the year could be causing difficulties for businesses that are having issues with maintaining a healthy cash flow.

The proposal was echoed by the Ministry of Finance, which also said deadline for business land-use tax and rent for the year 2023 should be extended to give businesses additional time and breathing space. The ministry said the government's top priority right now should be boosting economic recovery and production.

The proposals were a continuation of a support package, enjoyed by the business sector in the last three years, which has been well-received among the business community. In effect, an extension on land-use tax and rent deadline could be considered a short-term, low-interest loan from the government, which was set to expire by the end of December 2023.

Business insiders and economists have long voiced concern over the timing of the deadline, which coincides with a time when businesses often find themselves in dire need of cash to ramp up production for the Lunar New Year and issue bonuses for employees.

In addition, commercial banks typically refrain from granting short-term loans during said time, even asking borrowers to repay their loans before the end of December to serve their numerous credit growth targets.

It has resulted in the end of December being a bottleneck for business cash flow, where demand soars but supply dwindles.

Given the increase in the State's budget collection and slow disbursement of public-sector projects, economists have called for greater flexibility in using the available cash to give the business sector a temporary boost.

According to VCCI, extending tax and rent deadlines for businesses should not have too much of a negative impact on the State's accounting book but the benefits are many, especially for small and medium-sized businesses. 

PMI increases slightly in February

The S&P Global Viet Nam Manufacturing Purchasing Managers’ Index (PMI) was 51.2 in February, ending a string of contractions and up 3.8 points from January.

The improvement was attributed to signs of market demand bouncing back. This helps firms secure new customers and see the sharpest increase in new orders since last August, leading to a rise in production, employment, and purchasing activity midway through the first quarter.

"Improving demand conditions both domestically and internationally breathed new life into the Vietnamese manufacturing sector in February, snapping a three-month soft patch around the turn of the year. Output, new orders, employment and purchasing activity all returned to growth as business confidence strengthened on an improving demand outlook," said Andrew Harker, Economics Director at S&P Global Market Intelligence.

With stronger market demand and the growth of new orders, the optimistic outlook for the sector strengthened further, with sentiment picking up for the third straight month and being the highest since last September.

Meanwhile, Viet Nam's index of industrial production (IIP) in February rose 3.6 percent month-on-month and 5.1 percent year-on-year, data from the General Statistics Office of Viet Nam showed.

IIP in the first two months contracted by 6.3 percent over the same period last year due to economic woes, inflationary pressures, fewer new orders and a plunge in export revenue.

The PMI was derived from responses to monthly questionnaires sent to purchasing managers at around 400 major Vietnamese manufacturers, with the 50.0 mark separating contraction from expansion.

Earlier, Viet Nam's PMI edged up to 47.4 in January from 46.4 in December.

HCMC People’s Council to supervise public investment projects in Thu Duc City

A supervision delegation of the HCMC People’s Council led by head of the department of Economy and Budget of the HCMC People's Council Le Truong Hai Hieu monitored public investment projects in Thu Duc City on March 2.

The delegates took field surveys of construction projects of Thu Duc General Hospital; Tang Long, Nam Ly and Ong Nhieu bridges; the Tang Nhon Phu A High School and Hiep Phuoc – Dong Sai Gon kindergarten.

On November 15, 2021, the construction of Thu Duc General Hospital was kicked off by the Management Board of Industrial and Civil Engineering Construction and Investment Projects of HCMC.

Located at the address No. 64 Le Van Chi Street in Thu Duc City’s Linh Trung Ward, the hospital has been established by transforming the former Thu Duc District’s Healthcare Center. The 10-storey hospital covering an area of more than 58,000 square meters with an investment capital of VND1,915 billion (US$84.8 million) is expected to be finished in 2023.

The new healthcare facility is facing difficulties in the procurement process of medications and equipment. The hospital needs VND1,500 billion to purchase medical devices but has not received the fund allocation.

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