Since China’s reopening on January 8, the export of Vietnamese lobster to this market has increased, but the purchase price of the seafood delicacy has been variable at best, putting farmers at risk of loosing money.

Cam Binh commune in Cam Ranh city is one of the main lobster farming areas in the central province of Khanh Hoa. Currently, it has more than 400 farms with about 15,000 cages which produce a combined output of about 300 tonnes a year, mainly green lobster.

Nguyen An, Chairman of the commune People's Committee, said that the price of green lobster was extremely rocky, sometimes dropping to 640,000-670,000 VND (26.98-28.24 USD) per kg. However, the normal price ranges from 730,000-750,000 VND per kg.

On March 6, Nguyen Van Hau, a green lobster farmer in the commune’s Binh Ba Dong village, said that the current price has dropped to 720,000 VND per kg. With this price, farmers cannot gain any profit, because the startup and running costs of breed, feed, and labour are all high.

Nguyen Trong Binh, Director of Binh Thom Seafood Co., Ltd., specialising in purchasing lobsters for export to the Chinese market, said that since China’s reopening, Vietnamese lobster exports no longer face any problems with paperwork, as the country has gradually loosened restrictions related to aquatic exports.

However, the purchasing power of this market has yet to return to normal as the country has just opened up after the lingering pandemic.

He expressed his hope for a brighter outlook this summer, when tourism activities recover well, resulting in an increase in the consumption of lobster.

To make lobster farming more sustainable, Nguyen Trong Chanh, director of the provincial Fisheries Sub-Department, said that the sub-department will provide guidance for local farmers in applying biosecurity farming processes, and ensuring traceability.

Vietnam, China seek to boost agro-aquatic product trade

A forum on promoting trade in agricultural and aquatic products between Vietnam and China’s Guangxi province was held on March 8 by the 970 Agricultural Connection Forum’s operation team. 

According to Nguyen Hoai Nam, Vice Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), Vietnam enjoyed the strongest growth of seafood trade with China among the main markets in the 2018 – 2022 period. China has become the 2nd largest seafood importer of Vietnam after the US. 

Nam said Guangxi is the third largest locality in China in terms of importing Vietnamese seafood, after Guangdong and Zhejiang, accounting for 6% of the volume and 11% of the value of seafood imported from Vietnam.

Vietnam is the biggest supplier of seafood for Guangxi, accounting for 69% of the volume and 75% of the locality's import value. 

From these advantages, Nam underlined the need for Vietnam to enhance trade exchange between businesses and Chinese localities, and speed up the approval process for enterprises registered to export seafood to China. 

Agencies need to update and provide information for Vietnamese exporters on the demand and regulations of markets and localities of China.

According to Su Wanguang, Vice President of the Vietnam – China Business Association in Guangxi, said the DongTeng Industrial Investment Co., Ltd plans to purchase 35,000 tonnes of durians, including 15,000 tonnes from Vietnam. 

He added the firm is currently promoting the establishment of a Vietnam Seafood Trading Centre in Guangxi’s Fang Chenggang city, which is expected to facilitate direct trade activities between Vietnamese and Chinese firms. 

Tran Thi Bich Ngoc, Head of the Management Board of Mong Cai International Border Gate, said that the volume of Vietnamese agro-aquatic products exported to the Chinese market through the gate has grown 60% per year on average.

To promote the export of Vietnamese agro-aquatic products to the Chinese market, Ngoc said businesses should make the most of digital and information technology, and e-commerce trading floors to strengthen product promotion; and constantly improve the quality of export goods from farming, processing, packaging, and transportation.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam suggested the People’s Committee of Quang Ninh province and relevant agencies of China coordinate in organising a direct trade promotion forum in Dongxing, China, as soon as possible, thus making it easier for businesses of the two countries to discuss how to build supply chains serving import and export of agricultural products.

He urged the 970 Agricultural Connection Forum's operation team to consider establishing a Vietnam - China agricultural and fisheries business club to connect and share information about the agricultural product market.

International furniture expo opens in HCM City

The 14th Vietnam International Furniture and Home Accessories Fair (VIFA EXPO) opened in Ho Chi Minh City on March 8.

Of 612 exhibitors, more than 140 are from 17 foreign countries and territories including the US, UK, Germany, mainland China, India, Indonesia, Japan, the Republic of Korea, Malaysia, Taiwan (China), and Thailand.

The fair features 2,410 booths displaying a wide range of indoor and outdoor furniture, handicrafts, gifts and souvenirs, wood materials, and woodworking machinery and accessories.

Speaking at the opening ceremony, Dang Quoc Hung, director of Liên Minh Joint Stock Company, the organiser, said many wooden products businesses have seen a sharp drop in export orders because of high inflation in many countries, which has forced consumers to tighten their belts.

So, to help connect wood and handicrafts enterprises with potential partners, the organiser have promoted the fair in both traditional and new markets for Vietnam, including the US, UK, and countries in Southeast and Northeast Asia, the Middle East, and South America, he said.

It has received 4,118 registrations from international buyers and visitors to visit the event, he added.

The fair also includes side events such as seminars on cross-border e-commerce, sustainable timber from Sweden and global furniture export-import outlook in 2023, business matching and factory visits.

The Lien Minh Company also launches VIFA EXPO Online Platform at www.vifaexpo.com.

Hung said the exhibition is rated among the world’s top 10 in the furniture industry and has contributed greatly to the promotion of the Vietnamese wood furniture industry.

Held at the Saigon Exhibition and Convention Centre, the fair will go on until March 11.

Workshop discusses UK’s green and fair trade with Viet Nam
     
Foreign investors, including those from the UK, are becoming more and more concerned about the environment and climate, said Ambassador of the UK to Viet Nam Iain Frew.

Speaking at a workshop themed “The UKVFTA – Green and Fair Trade with Vietnam” on Tuesday, Frew said his country is delighted that Viet Nam 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 Viet Nam, the hybrid event provides a platform for discussion on the UK’s green and fair trade with Viet Nam through the UK-Viet Nam Free Trade Agreement (UKVFTA), commitments on renewable energy generation, plans to implement these commitments and opportunities and challenges in renewable energy development in Viet Nam.

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 the 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 Viet Nam is in the transition to fulfil 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 Viet nam and the UK increased 3.3 per cent year-on-year, with many key export products of Viet Nam posting high growth.

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

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

Banks cautious about profit targets for 2023
     
Commercial banks will hold annual general meetings of shareholders (AGM) next quarter to map out production and business plans for 2023.

Documents prepared for the upcoming AGMs show some banks are cautious about profit targets set for this year.

Nam A Bank set a target of consolidated pre-tax profit of VND2.4 trillion this year, an increase of only 5-6 per cent compared to last year. In 2022, the bank recorded a pre-tax profit of nearly VND2.27 trillion, up 26.1 per cent over the previous year, close to the bank’s set target of VND2.25 trillion.

Nam A Bank said the expected profit in 2023 is calculated on the basis of the bank’s credit growth target and in accordance with the regulations of the State Bank of Vietnam (SBV) to ensure safety ratios in line with current legal regulations and stable macro-economic conditions.

Documents for the 2023 AGM of VIB also showed the bank is quite cautious when setting profit targets this year.

Specifically, VIB expects pre-tax profit in 2023 to reach VND12.2 trillion, up 15.3 per cent compared to 2022. Although 2023’s profit is expected to still increase by double-digit figure, the growth rate decreases by half compared to last year's profit plan. Last year, VIB set a target to increase profit by 31 per cent compared to 2021.

However, VIB still targets a number of other key business indicators to grow more positively this year. For example, VIB targets total assets and total outstanding loans to increase by 25 per cent.

Earlier, Vietcombank’s leaders said the bank aims to increase its 2023 pre-tax profit by at least 12 per cent compared to 2022. In 2022, Vietcombank recorded a 39 per cent increase in pre-tax profit, up 19 per cent against the yearly set target.

Eximbank late last year announced its business plan for 2023 with a pre-tax profit target of VND5 trillion, up 35 per cent compared to last year’s figure of VND3.7 trillion.

An SBV Q1 2023 business performance survey also showed commercial banks were more cautious when forecasting.

According to the survey, only more than half of banks expect their business performance to improve in 2023, but the improvement is lower compared to 2022.

Experts also forecast the banking industry will continue to face difficulties in 2023 in the context of the real estate market downtrend and the less positive import and export outlook.

Under a recent report, Viet Dragon Securities Company (VDSC)’s analysts said the interest income growth of the banking industry in 2023 will slow due to the impact of a decreasing net interest margin (NIM).

The NIM decline will differ among banks in 2023, which will cause the growth of interest income of the entire banking industry to stay at less than 11 per cent. 

Quang Tri wants land handover to expy done by end-June

The Quang Tri government has sent a dispatch asking the relevant agencies and grassroots authorities to speed up the site clearance of the Van Ninh-Cam Lo expressway project and complete the land handover by June 30.

The sections of the expressway without resettlement problems must have their cleared land handed over prior to March 10, said the provincial government, the local media reported.

Vinh Linh, Gio Linh and Cam Lo districts, through which the expressway would pass, were told to encourage affected households to accept resettlement to expedite site clearance.

The competent agencies were urged to mobilize workers, complete all relevant procedures, select contractors and start work on resettlement areas to ensure the land handover is on schedule.

The Van Ninh-Cam Lo expressway has a total length of some 66 kilometers, with 32.5 kilometers passing through Vinh Linh, Gio Linh and Cam Lo districts. Work on the project started on January 1 this year. The project is expected to affect 477 households.

Shrimp exports expected to reach over US$4.3 billion in 2023

Shrimp export in 2023 is expected to reach about US$4.3 billion - $4.5 billion amid the forecast of difficulties for seafood exports.

The Ministry of Agriculture and Rural Development held a conference on developing the shrimp industry in 2023 in the Mekong Delta Province of Soc Trang with the participation of leaders of ministries, agriculture sectors across the country, associations and businesses.

In 2022, brackish water shrimp farming covered an area of 747,000 hectares with the total aquatic output reaching more than 1.08 million tons up 8.5 percent compared to 2021. Despite many difficulties in 2022, shrimp export posted a turnover of $4.3 billion accounting for nearly 40 percent of seafood export value and increasing by 11.2 percent compared to 2021.

Currently, Vietnamese shrimp is exported to 100 countries, of which there are 5 major markets, including Europe, America, Japan, China and Korea. Vietnam has become the world's second-largest shrimp supplier, accounting for 13-14 percent of the world's total shrimp export value. In 2023, the shrimp industry will strive to have farming covering 750,000 hectares, an output of nearly 1.1 million tons and a shrimp export turnover of over $4.3 to $4.5 billion.

According to forecasts, the shrimp industry in 2023 will continue to face many difficulties and challenges. General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) Truong Dinh Hoe said that shrimp exports in 2023 will be very difficult because the market demand is likely to recover only starting from the second quarter; however, the price tends to be lower than in 2022.

Specifically, the world shrimp price will gradually decrease from mid-2022 and is forecast to continue to decrease when the supply surges to about 6 million tons.

Moreover, Vietnam’s shrimp export is also facing stronger competition from other countries such as Ecuador and India. In 2023, it is expected that Ecuador will have an output of 1.5 million tons of white shrimp, which is more than twice the output of Vietnam of 700,000 tons. This is a factor that helps the advantage in favor of Ecuador when there is an abundant supply, not to mention that your country has the advantage of geographical location, and low production costs.

Meanwhile, the price of domestic raw shrimp tends to hike leading to more difficulties in mobilizing raw materials for shrimp export processing, added Mr. Truong Dinh Hoe.

Vice Chairman of Soc Trang Provincial People's Committee Vuong Quoc Nam said that the province's export turnover in 2022 reached more than $1.4 billion and exports of brackish water shrimp brought nearly $1 billion for the country, equivalent to more than 20 percent of the country’s shrimp export value. However, drought, saltwater intrusion, environmental pollution and other negative impacts of climate change are having a heavy impact on the fisheries sector.

In addition, the seafood industry is also affected by other impacts such as the global economic crisis, rising petrol prices, rising input prices, unsatisfactory quality of shrimp seed, and disease outbreaks shrimp shows signs of increasing again.

Therefore, it is forecasted that in 2023, shrimp farmers and businesses will face more difficulties.

Digitalisation in traceability of farm produce critical as VN aims to build transparent agriculture
     
It is critical to promote digitalisation in the traceability of farm produce as Viet Nam aims to build a transparent, multi-value integrated agriculture sector.

Nguyen Quoc Toan, director of the Centre for Digital Transformation and Agricultural Statistics under the Ministry of Agriculture and Rural Development, spoke at a forum held in Ha Noi on Tuesday with the support of the Australia Centre for International Agricultural Research (ACIAR).

Toan said traceability is one of the eight key issues in the digital transformation of the sector.

Digitisation in agricultural product traceability requires the engagement and coordination of all parties, from State management agencies to enterprises, cooperatives and farmers, he said, adding that the State management in this issue aims to meet requirements of international integration, improve transparency and accountability for the sector, and increase farmers’ interests.

According to Toan, Viet Nam currently has around 19,000 cooperatives, 14,200 enterprises and 7,500 processing facilities in the agricultural sector, along with about 9,400 supermarkets and markets, which constitutes the Big Data part of the sector.

Therefore, the traceability of agricultural products must be holistic and specific, he stressed.

Vietnamese farm produce is now present in nearly 200 countries and territories worldwide and increasingly affirming their prestige and position in the international market. Ensuring quality, food safety and transparency of origin was a must-do for Viet Nam to move towards a multi-value integrated agriculture sector, in which digitalisation played an important role.

Mai Quang Vinh, chairman of Vietnam Digital Economy Cooperative Alliance, said that it was very easy to create a QR code for one product and it took users only a few seconds to have the information about the product. However, there would be a loophole if the management was not tight enough which paved the way for mixing with poor-quality products.

Huynh Tan Dat, deputy director of the ministry’s Plant Protection Department, said that promoting digitalisation in the traceability of farm produce would not only protect the interest of farmers, cooperatives and enterprises but also contribute to building brands, thereby building a transparent and multi-value integrated agriculture industry.

Dat said that the department has built a national database on planting area codes and export packing facilities. Planting areas and packing facilities must comply with the requirements of import markets to be granted codes.

Nguyen Thi Thanh Thuc, chairwoman of AutoAgri Software Technology Company, said traceability should be developed in the direction of connection, interconnection and concentration. The application of digital technology in traceability must be flexible and appropriate to each location and each plant.

Data in agriculture is specific to each region so it must be flexible in the application of digital technology, she said. Ministries and localities needed to launch innovative programmes in the field of agricultural digital transformation.

In addition, policies must be raised to encourage farmers, cooperatives and enterprises to apply digitalisation in traceability, she said. 

Top pharma names advocate for sweeping legal revamps

With the Ministry of Health’s latest pledge to improve upon medical legislation, international businesses continue to pin high hopes on marketing authorisation regulations for medical devices and distribution rights in order to drive their plans forward.

At last week’s business-to-government dialogue forum and the launch of a Whitebook by the European Chamber of Commerce in Vietnam (EuroCham), the Ministry of Health (MoH) stated that it is working on amendments to Decree No.98/2021/ND-CP on management of medical devices, with a focus on extension of marketing authorisation (MA).

Regarding distribution rights of foreign-invested enterprises (FIEs), the MoH admitted that current legal documents are not clear enough, thus causing challenges for them to perform. Under Decree No.54/2017/ND-CP guiding the implementation of the Law on Pharmacy 2016, FIEs have the right to import pharmaceuticals but, without the distribution rights, cannot sell its imported goods directly to retailers and/or consumers.

The MoH made the statements after EuroCham’s sector committees raised their concerns over the shortage of medical devices and delays in the issuance of MA, as well as amendments of the Law on Pharmacy 2016.

MA and distribution rights have been a hot topic for years among FIEs in Vietnam. To help pharma firms solve their challenges, in January the National Assembly approved a resolution allowing the extension of MAs for pharmaceuticals that expired on January 1, changing the end date to the end of 2024.

Moreover, Decision No.1661/QD-TTg issued in late 2022 on the abolition of a number of administrative procedures approved the elimination of the MA extension process, with an implementation deadline of 2022-2023.

However, medical devices are not subject to MA extension in the new moves. Therefore, the amendment of the Law on Pharmacy is deemed urgent to realise the government’s direction.

A representative of EuroCham sector committee IQMED said, “Regulations related to the right to distribute drugs and medicinal ingredients of FIEs are only regulated in Article 91 of Decree 54. These regulations are not clear yet for implementation, and they have not been regulated in the Law on Pharmacy 2016, so they need to be added to this.”

Meanwhile, EuroCham’s Medical Devices and Diagnostics Sector Committee (MDDSC) raised its members’ concerns over the shortage of medical devices due to the expiry of Class C and D import licences and delays in the issuance of MAs.

Draft amendments to Decree 98 have thus far received support from the business community, including EuroCham members.

According to the MDDSC, since January 2022 only 12 per cent of submitted Class C and D devices have been approved with an MA under Decree 98. Last November, Resolution No.29-NQ/TW was issued on accelerating the national industrialisation and modernisation to 2030, with a vision to 2045. It emphasised the key role of science, technology, and innovation in helping Vietnam to address current and future challenges, and also identified pharmaceuticals as one of the priority sectors that will enable and drive innovation.

ICT revenues up 5% in two months

Total revenues of Viet Nam's Information and Communications Technology (ICT) industry reached US$20.6 billion in January-February period, up 5 percent against the same period last year, reported the Ministry of Information and Communications (MIC).

The above figure includes US$8.2 billion from exporting hardware and electronics products, a year-on-year increase of 4 percent. 

The industry targets to raise revenues to US$165 billion in 2023, US$175 billion in 2024 and US$185 billion in 2025, according to the ministry. 

The ministry also estimated that digital technology companies would contribute from 6-6.5 percent to the national GDP growth over the next three years.

In 2022, revenues from Viet Nam's ICT sector hit US$148 billion, representing an increase of 8.7 percent on year.  Exports of hardware and electronic products rose by 11.6 percent to US$136 billion, resulting in a trade surplus of US$$26 billion in the sector, a significant improvement from a modest US$4 billion in 2021.

According to the MIC, the total number of digital tech firms in 2022 was 70,000, up 9.6 percent against the previous year.

Local firms gained a revenue of over US$2.2 billion from exporting software and IT services.

Particularly, there is an increasing number of R&D projects invested by foreign tech giants in Viet Nam such as Samsung, Qualcomm, Panasonic, and Intel.

The number of digital tech firms is expected to reach 80,000 by 2050, said the ministry.

Construction machinery market lures foreign suppliers

With a scale touching tens of billion US dollars, Vietnam’s construction machinery market proves a magnet to foreign manufacturers and distributors.

Tong Van Nga, chairman of Vietnam Association for Building Materials, noted that despite enduring heavy effects from the pandemic, the country’s construction sector still expanded 8-8.5 per cent in 2022.

Also, the urbanisation pace inched up 1.2 per cent reaching 41.7 per cent last year, instrumental to a more vibrant machinery and equipment market to feed investment and construction needs.

Amid exacerbating competition between local and foreign players, local contractors have embraced radical changes, capitalising on machinery and technology investment to improve their execution and management expertise.

Machinery and technology development helps construction businesses to boost efficiency and precision in execution, from savings on materials and fuel, to personnel costs.

Better market signals are also evident in the number of foreign businesses registered to join Contech Vietnam 2023, an international exhibition tailored to Construction, Mining and Transport - Machinery, Equipment, Technology, Vehicles and Materials slated for April.

Le Thi Lan Anh, director of Hanoi Advertising and International Fair JSC, the fair organiser, said she was surprised with the high number of firms from Asia and Europe having registered to participate in the fair, and the occasion would help local peers to reach equipment innovation targets for improved efficiency and work quality.

Nguyen Thi Ngoc Linh, director of Green Laser Co., Ltd., a firm under China’s Senfeng Group active in providing construction machinery and equipment such as laser cutters and welders, will soon join Contech Vietnam 2023 and said that from late 2022 Senfeng has worked on a plan to come back Vietnam to enhance business networking after a lull due to the pandemic.

The country’s spending on machinery and equipment imports is expected to surge 3-6 per cent in 2023. Last year, Vietnam’s total import value amounted to $358.9 billion, up 7.8 per cent on-year.

Over VND10 trillion needed for Khanh Hoa-Daklak expy

A section of an expressway that links Khanh Hoa Province and neighboring Daklak Province’s Buon Ma Thuot City will require an estimated VND10.44 trillion, according to a Transport Ministry agency.

Project Management Unit 6 at the Ministry of Transport has submitted a feasibility study for the section to the ministry for approval, the local media reported.

This section of the 117.5-kilometer Khanh Hoa-Buon Ma Thuot expressway will have a total length of 37 kilometers, with 1.3 kilometers in Khanh Hoa and the rest in Daklak.

The section will start from Ninh Tay Commune in Khanh Hoa Province’s Ninh Hoa Town, and end at Cu Elang Commune, Ea Kar District, Daklak Province. In the first phase of the project, the section will have four lanes and a speed limit of 80 kilometers per hour.

The section will be funded by the State. The central State budget will provide VND10.3 trillion and the two provinces will cover half of the site clearance costs of VND123 billion. The total investment will exclude costs of some VND118 billion to develop a smart traffic system and toll stations along the route.

Project Management Unit 6 proposed the Transport Ministry prepare the construction of the section and open it to traffic at the same time as other sections of the project in 2027.

The Khanh Hoa-Buon Ma Thuot expressway project has three sections, with a total investment of nearly VND22 trillion backed by public capital. Khanh Hoa Province is responsible for the first section. The Ministry of Transport is in charge of the second and Daklak Province the third.

Support needed for Vietnamese digital technology enterprises to go global: insiders

Vietnamese digital technology enterprises have both advantages and challenges when going global, and support and coordination are needed, according to insiders.

Speaking at a recent conference “Vietnamese digital companies going global: Global digital cooperation –Trusted partners in building the digital world”, Nguyen Thien Nghia, Deputy Director in charge of the Department of Information and Communications Industry, Ministry of Information and Communication, said that the world technology market can bring many opportunities for Vietnamese enterprises which have an advantage of cheap but high-quality labour.

Tao Duc Thang, Viettel Group Chairman and General Director, said that going global brings opportunities for Viettel, particularly in expanding the market, creating a new environment for development, human resources training, and increasing branding values for both Vietnam and the enterprise.

Going global is also an opportunity to learn from and compete with the world’s leading groups, he said, adding that Government’s support is important to encourage enterprises to develop and expand overseas markets.

Big enterprises should be supported first and then they will lead smaller newcomers, the official said.

Thang suggested that Vietnamese enterprises carefully study the political, and socio-economic situations, laws, and regulations of the countries where they want to invest in.

Lu Thanh Long, chairman of MISA Joint Stock Company, said that the Ministry of Information and Communications should accompany enterprises to quickly connect and cooperate with distributors in other countries.

Long said that enterprises should go together when going global so that they can develop and support one another.

Nguyen Viet Lam, vice general director of Rikkeisoft, recommended that the ministry regularly organise forums connecting local enterprises with international ones.

The Government and ministry should have policies and strategies to connect enterprises with human resources training facilities for a sufficient supply for the enterprises’ going global.

VND568.34 trillion of low-interest rate capital disbursed in HCM City

Through the Bank-Business Connection program, commercial banks disbursed VND568.34 trillion, equal to 131 percent of the preferential credit package registered since the beginning of the year, an increase of 16.6 percent compared to 2021.

On the afternoon of February 27, Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam (SBV) - Ho Chi Minh City Branch, said that 13 HCMC-based commercial banks registered for the preferential credit package in the Bank - Business Connection program in HCMC in 2022, with a scale of VND434.28 trillion.

However, through this program, commercial banks disbursed VND568.34 trillion, equal to 131 percent of the preferential credit package registered since the beginning of the year, an increase of 16.6 percent compared to 2021. The program has brought practical benefits to businesses as it enabled them to access credit capital with low lending interest rates at about 6 percent per annum for short-term VND loans and about 10 percent per annum for medium and long-term loans.

According to Mr. Lenh, the disbursed loans to support businesses and business households in 2022 increased compared to the credit package committed by commercial banks thanks to the efforts, responsibility, and sharing of credit institutions in the area, along with the initiative and creativity in coordinating and organizing the implementation in accordance with the characteristics of each locality.

Specifically, the SBV-HCMC Branch coordinated with the Department of Industry and Trade and the People's Committees of districts and Thu Duc City to organize the Bank-Business Connection Program with the themes of ‘supporting for agricultural and rural development’ and ‘supporting businesses in the field of tourism and businesses operating in industrial parks and export processing zones’, which has brought about high efficiency and spillover effect and is highly appreciated by the business community.

For example, the direct signing at conferences in the districts and Thu Duc city in 2022 achieved roughly VND11.42 trillion, including low-interest capital support and debt restructuring for local businesses to help them overcome difficulties due to the impact of the Covid-19 pandemic.

Mr. Lenh also said that within the framework of this program, in the past year, the city's banking industry coordinated with the Department of Tourism of HCMC, the Department of Agriculture and Rural Development of HCMC, districts, and Thu Duc City to organize 12 conferences to connect banks and enterprises, solve, and handle directly for 938 businesses that faced difficulties and needed capital, but had difficulty accessing credit capital.

For the proposals of enterprises, if the credit institutions could solve and lend, they would provide immediate support. If they could not lend, they would promptly reply to enterprises and clearly state the reasons. This is also a responsible way to solve specific difficulties that businesses reflect.

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