Vietnam welcomed nearly 3.7 million foreign tourists in the first four months of this year, or nearly half of 2023 plan, reported the Ministry of Culture, Sports and Tourism’s Vietnam National Administration of Tourism (VNAT).

With this encouraging result and travel demand on the rise, Vietnam sees great room to lure more international tourists in the peak seasons from now to the year-end, likely to achieve and surpass its goal of 8 million foreign visitors this year.

The Republic of Korea (RoK) will continue to be the biggest source of arrivals to Vietnam. As the two countries upgraded their ties to a comprehensive strategic partnership and the VNAT signed a Memorandum of Understanding on cooperation for the 2023-2024 period with the Korea Tourism Organisation, the number of Korean tourists visiting Vietnam is expected to continue rising in the near future.

According to the VNAT, China ranks third in tourist arrivals to Vietnam and is predicted to recover at a faster rate than other markets due to its big population, with demand growing day by day since the country resumed outbound travel. Its recovery is expected to pace up from summer this year and accelerate in October and the final months of this year.

Australia and India are now well-positioned to increase the number of tourists to Vietnam as Vietnam Airlines and Vietjet recently opened direct flights connecting many major cities between the two countries. In Southeast Asia, Thailand and Cambodia are recovering well, equivalent to the pre-COVID-19 levels, and are forecast to continue maintaining growth momentum thanks to their proximity to Vietnam.

During its meeting in May, the Vietnamese National Assembly is scheduled to adopt a Resolution on new policies related to visas, immigration, and entry, including extending the e-visa validity period from no more than 30 days to no more than 3 months, for one-time or multiple entry; granting e-visas to citizens of all countries and territories; and increasing the duration of the temporary residence certificate at the border gate for people subject to unilateral visa-free entry from 15 days to 45 days. This will be an important driving force contributing to attracting foreign tourists to Vietnam in the coming time.

The national tourism website https://vietnamtourism.gov.vn, https://vietnam.travel and social media platforms of the VNAT will continue disseminating tourism policies and strategies, as well as popularising the images of Vietnam and its people at home and abroad.

The VNAT will actively popularise Binh Thuan - the host of the National Tourism Year 2023, and many other important destinations with green, island and beach, golf and resort tourism products.

Banking sector’s digital transformation day to take place next week

The digital transformation day of the banking sector will be held on May 18, the State Bank of Vietnam (SBV) announced at a press conference in Hanoi on May 11.

Hoang Thanh Nhan, Editor-in-chief of Thoi bao Ngan hang (Banking Times) newspaper, said the event aims to review outcomes achieved by the banking industry after two years of implementation of its digital transformation plan until 2025, with a vision for 2030.

It is expected to promote a national digital transformation programme and change the awareness of organisations and individuals about its role in the operation of the industry, she added.

Within the framework of the event, there will be a thematic conference on the application of population data in banking activities - the driving force for digital transformation - and an exhibition displaying outstanding services and products in digital transformation of banks and payment intermediaries.

Pham Anh Tuan, head of the Payment Department under the SBV, said that positive results have been recorded in digital transformation activities of the banking sector.

According to the Ministry of Information and Communications, in 2021, the State Bank of Vietnam ranked first in cyber security readiness and fourth in terms of digital transformation activities. Up to 95% of credit institutions have been carrying out digital transformation strategies at their units.

In the first three months of this year, non-cash payment transactions increased by 53.51% in quantity compared to the same period of last year while ATM transactions decreased by 2.37% in volume and 4.02% in value, reflecting a shift to electronic payment, Tuan said.

HCM City Economic Forum to take place in September

The Ho Chi Minh City Economic Forum (HEF) 2023 will be held from September 13-17 under the theme “Green growth - the journey to zero emissions,” the municipal People’s Committee announced at a press conference on May 11.

Nguyen Ngoc Hoa, a representative from the forum's organising board and Chairman of the HCM City Union of Business Associations (HUBA), said the forum, in its fourth edition, will see the attendance of the Prime Minister, and leaders of ministries and agencies.

The event will bring together more than 1,000 delegates from international financial institutions like the World Bank (WB), the International Monetary Fund (IMF), the International Finance Corporation (IFC) and the Asian Development Bank (ADB), and international organisations, along with managers and leaders of localities of 21 countries, representatives from diplomatic and consular agencies, and domestic and foreign enterprises, and experts.

The forum is expected to provide an insight into the global situation and the trend of green growth towards sustainable development, especially lessons and proposals applicable in HCM City, Hoa continued.

Apart from workshops prior to the forum, there will be discussions during the event, sidelines meetings, exhibitions and dialogues with domestic and foreign experts, according to Le Truong Duy, from the municipal Department of External Affairs.

Hosted by the People’s Committee, the annual international event, first held in 2018, is intended to acquire opinions of experts on issues regarding the city’s socio-economic development, as well as its key projects, targets and programmes. 

Private sector’s engagement needed for Vietnam to promote green growth: Experts

The engagement of the private sector in green growth and sustainable development is crucial for Vietnam to complete its target of achieving net-zero emission and raising the green economy scale to 300 billion USD in the total national GDP value in 2050, according to experts.

Amid the green consumption trend in the world, many Vietnamese enterprises are developing green production models to avoid being left outside the global supply chain.

Dinh Quoc Tuan, Vice Chairman and General Director of Amy Grupo, said that the firm plans to upgrade its factories with an aim to cut carbon emissions by 30-50% in the next five years.

Meanwhile, green solutions will be applied in its new projects from the material procession, production to distribution stages, he said.

Meanwhile, AN MI Tools Co., Ltd, a supplier of many multinational firms such as Samsung, Toyota and Honda, has invested in a rooftop solar power system for its 5,200sq.m factory.

According to the EU Commission, the current global market for green products and services is estimated at more than 5 trillion USD, with a growth rate much higher than that in traditional markets.

It is forecast that by 2030, the green economy will create about 24 million new jobs globally, while creating opportunities to attract investors in many new fields such as renewable energy, smart transportation, smart agriculture, green urban-building, and green finance.

According to Minister of Planning and Investment Nguyen Chi Dung, for Vietnam, green growth towards economic prosperity, environmental sustainability and social equality is an inevitable choice. This is also an opportunity for Vietnam to become a pioneer in the region, catching up with the development trend of the world.

Experts held that in order to overcome difficulties and challenges to reach the set target, Vietnam must complete the dual targets of maintaining GDP growth of 6-7% per year and popularising green technologies in economic activities. This will also create great chances and development spaces for the business community, both domestic and foreign ones.

Thomas Jacobs, Country Director of the International Finance Corporation (IFC) in Vietnam, cited the World Bank's Vietnam climate report as saying that from now to 2040, Vietnam needs 368 billion USD to overcome the impacts of climate change and realise the net-zero emission goal, during which greater contributions from the private sector is needed.

In order to mobilise this important resource, the Government of Vietnam must remove a number of basic barriers such as the legal and institutional environment for the private sector to invest in key emission-causing sectors, including energy, transportation, and transportation, telecommunications, agriculture and manufacturing with faster, simpler and cheaper process. In particular, it is necessary to finalise a power purchase contract in accordance with international standards to attract foreign investors in this very important industry, Jacobs held.

Commenting on the important role of the private sector in completing green growth and sustainable growth targets, Dau Anh Tuan, Deputy General Secretary and head of the Legal Department of the Vietnam Chamber of Commerce and Industry (VCCI), said that currently, businesses’ understanding of environment regulations remains modest.

Only 31.8% of the domestic private enterprises said they understood environmental regulations well. Meanwhile, up to 91% of enterprises believed that environmental protection is the responsibility of local authorities. Therefore, the VCCI proposed strengthening the participation of the business community in building and perfecting the legal system and implementing laws and regulations on environment, green economy and sustainable development, said Tuan.

He also underlined the need to design policies to encourage businesses to invest in high and clean technologies.

Tran Nhu Tung, Vice President of the Vietnam Textile and Apparel Association, said that the Government should offer 2% cut in corporate income tax for companies meeting green requirement and interest support to green transition projects.

Stressing the need to evaluate the implementation of green growth and sustainable at the local level, Tuan said that the VCCI has built and announced a Performance Grading Index (PGI) in 2023 to promote the green transition process of localities.

High interest rates impact Vietnamese competitiveness

High interest rates have exerted a strong impact on Vietnam’s competitiveness, heard a seminar themed “Impact of High Interest Rates on Macro-economic Stability and Growth Recovery in 2023” held on May 11 in Hanoi.

As part of his opening speech, Florian Constantin Feyerabend, Resident Representative of the Konrad-Adenauer-Stiftung Vietnam, emphasized that the global economy experienced a hugely challenging period of COVID-19 pandemic in the 2020 to 2022 period

In the first quarter of the year, the global economy recovered with difficulty, despite the fact that inflation had passed its peak and was gradually being reduced

During this period, Vietnam received 2.7 million international visitors, a figure nearly 30 times higher compared to the same period from last year and almost equivalent to one third of the annual target.

This represents a hugely positive indicator for the tourism industry and for the economy amid GDP growth in the first quarter being low with 3.3%, while industrial production and exports decreased.

However, the Government has carried out a number of solutions aimed at removing bottlenecks in a bid to accelerate the economy by pushing up disbursement of public investment, as well as relaxing and deferring taxes.

Despite these efforts, high interest rates remain a significant obstacle faced by businesses and for the national economy in general, as well as affecting the overall competitiveness of firms and the demand for the establishment of new enterprises.

Sharing this viewpoint, Nguyen Tu Anh, director of the General Department of the Central Economic Commission, said the Vietnamese economy has encountered difficulties in both the real estate market and the corporate bond market, along with a sharp decline in terms of export activities in the fourth quarter of last year.

He added that the average lending interest rate of several banks is up to 12% to 13%, even reaching 14.6%, a factor which has eroded the overall competitiveness of Vietnamese enterprises.

Experts have assessed that there remains plenty of room for the reduction of interest rates for businesses in order to restore the national economy.

With regard to short-term policy recommendations, Dr. Nguyen Quoc Viet, vice president of the Vietnam Institute for Economic and Policy Research (VEPR), underlined the need to balance the target of maintaining “macro-economic stability”, as well as looking for solutions of the government to promote economic recovery.

He emphasized the importance of fiscal policies in supporting the recovery of the economy, as well as devising policies aimed at promoting export growth, even deploying “order diplomacy” like “vaccine diplomacy”.

Furthermore, speeding up institutional reform is a vital step in ensuring an efficient business and investment environment, while forecasting and policy evaluation must be done regularly, continuously, and in a timely transparent manner, he said.

With regard to medium-term policy recommendations, he underlined the need to  monitor and assess risks, provide proactive and flexible solutions for fiscal policies, thereby combining them with other monetary and macroeconomic policies to stabilise the economy and maintain sustainable growth whilst enabling new growth models.

Moreover, it is necessary to strengthen social security, energy security, and the resilience of the banking system, whilst also extending social security packages to reach more beneficiaries with more simple procedures, focusing on workers in informal sector.

It is therefore crucial for Vietnam to switch to green, renewable energy to ensure energy security and supply chain for production and business, he added.

Hanoi enterprises pin hopes on domestic market to fuel growth

Amid numerous challenges facing export, the domestic market has proved its attractiveness and important role, helping with Hanoi’s economic growth.

Since the last months of 2022, a number of manufacturers were unable to export their products due to a serious shortage of orders.

Hanoi recorded a slight year-on-year decrease of 1.3% in exports to 5.3 billion USD in the first four months of 2023. The revenue comprises 2.9 billion USD by the domestic sector, up 0.8%, and 2.4 billion USD by FDI-invested firms, down 3.8%, according to its Department of Industry and Trade.

Commodities that posted export declines during the period include apparel, vehicles and spare parts, timber and wood products, footwear, and leather products.

In April alone, the capital city earned nearly 1.52 billion USD from overseas shipments, rising 3.6% month on month and 2.3% year on year, statistics showed.

Tran Thi Phuong Lan, Acting Director of the Department of Industry and Trade, elaborated that the fall in the four-month exports was due to the downward trend since the last months of 2022. Though Hanoi witnessed a trade surplus in January and February, the export value of most groups of commodities dropped, with many staples’ turnover plummeting by double-digit rates from the same period last year.

Facing that context, many businesses in the capital city have been restructuring production and boosting supply for the domestic market as a source of support for them.

Le Hai Lieu, Chairman of the Board of Directors of the Duc Thanh Wood Processing JSC, said that his company is investing more in designing, marketing, and producing items for the domestic market.

Similarly, many other enterprises and sectors also pin high hopes on the domestic market for 2023.

General Director of the Garment 10 Corporation JSC Than Duc Viet held that with a population of 100 million, Vietnam is a potential market for textile and garment businesses.

Wholesale and retail have enjoyed good growth, Lan said, adding that total retail sales of goods and consumer service revenue in Hanoi reached some 184.4 trillion VND (over 7.8 billion USD) in the first quarter, up 12.6% from a year earlier. That includes 118.9 trillion VND in retail sales, accounting for 64.4% of the total and growing 12.2% year on year.

Thanks to domestic consumption stimulus programmes, retail sales and consumer service revenue have risen, helping enterprises address difficulties and boost production and business activities and contribute to the city's economic growth, the official added.

Economist Vu Vinh Phu perceived that from now to the end of 2023, domestic consumption must be viewed as an important impetus for Hanoi to reach this year’s target.

Echoing the view, economist Dinh Trong Thinh highlighted the considerable attractiveness of the domestic market with nearly 100 million people, noting that among the three growth pillars, export is still facing difficulties while investment needs more time to prove effective, so promoting consumption is now the most effective and least-costly measure.

To foster consumption and sustainably develop the domestic market, experts recommended authorised agencies push ahead with overhauling legal documents on the domestic market development and aligning them with the current situation so as to serve macro-economic governance and domestic trade.

It is also necessary to strongly and effectively implement the strategy for developing domestic trade by 2030, with a vision to 2045, along with the related programmes and plans. Authorities should assist businesses, especially small- and medium-sized enterprises, production establishments in craft villages, farming households, and cooperatives to promote trade, build and protect brands of domestic wholesale and retail chains, and further advertise specialties and typical products of regions across Vietnam, they added.

Up to 551 million poultry heads raised for meat, eggs across Vietnam

Vietnam is one of the countries with the largest total poultry population in the world, with up to 551.4 million heads being raised across the country in the first quarter of this year, a year-on-year rise of 2.4%.

The poultry meat output was estimated at 563,200 tonnes, up 4.2% year-on-year, while the volume of eggs was estimated at 4.7 billion, up 4.5%, according to the Department of Animal Health.

Currently, there are 32,230 husbandry farms and areas in 55 provinces and cities that are certified to be disease-free.

Speaking at a conference on the development of disease-free husbandry production chains and areas held in the southern province of Tay Ninh on May 11, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that over the past years, his ministry has taken drastic and concerted measures to prevent and control diseases on cattle and poultry; and well control dangerous diseases, especially those transmitted from animals to human.

However, there are currently no facilities or areas meeting disease-free standards of the World Organisation for Animal Health (WOAH).

Tien asked localities to continue implementing programmes and plans of the Government and the Ministry of Agriculture and Rural Development on building disease-free facilities and areas, towards the goal that by 2025, each province will have at least 4 districts achieving the WOAH standards and 10 districts by 2030.

Enhancing resilience against global shocks critical for electronics industry

It is critical for the electronics industry to enhance its resilience against global shocks, take the opportunities arising from global production and participate deeply in the global supply chain.

At a conference about Industry 4.0 held on May 10 in Singapore, Do Thi Thuy Huong from the Vietnam Electronic Industries Association (VEIA), said the COVID-19 pandemic and geopolitical conflicts were reshaping the global supply chain during the past three years.

From the beginning of this year, a number of heavyweights in the electronics industry’s supply chain were looking to move to Vietnam, which would provide significant opportunities for Vietnamese enterprises to participate in the global supply chains and increase added value.

Huong also pointed out that there were opportunities to increase exports to highly demanding markets and expand to new markets thanks to the adjustments in supply chains. Besides, the global production shift also brought opportunities for Vietnam to attract high-quality foreign direct investment (FDI) in the electronics industry, especially in chip production.

New-generation free trade agreements (FTAs) were also creating favourable conditions for trade and investment.

Challenges were ahead, however, requiring Vietnam to adjust policies for enterprises and attract FDI to direct the capital flow into high technology sectors and sectors which would create a spillover effect for the Vietnamese economy.

The fourth industrial revolution was also forcing Vietnam to switch to innovation–driven growth, she said, stressing that cheap labour or available resources were no longer advantages.

Huong also pointed out that Vietnam lacked a skilled labour force for the electronics industry, which hindered the domestic industry in keeping pace with the development of the global electronics industry.

The technology transfer remained limited because of the capacity of enterprises in terms of human resources and infrastructure, she said.

Vietnamese electronics enterprises must improve their capacity to be able to grab the opportunities, Huong stressed.

Darren Seah from the Industrial Transformation Asia – Pacific (ITAP) said that Vietnamese electronics enterprises had significant opportunities to participate in the global supply chain as there was a tendency to look for new production sites away from traditional markets.

Vietnam attracted large electronics groups such as Samsung, LG, Intel and Canon and the country could become an electronics production hub of the region, he said.

As the global consumption demand was forecast to drop this year, resulting in falling demand for high-tech items, which would affect the electronics industry.

Experts said that major challenges were the risk of supply chain disruptions and the shortage of human resources.

In that context, enterprises should pay attention to the rapid development trends of digital economy, green finance and green transition, Hương said.

Electronics was the sector with the highest export revenue in the manufacturing industry during the past 10 years.

VEIA’s statistics showed that the electronics industry earned export revenue of more than 114 billion USD in 2022, accounting for more than 30% of the country’s total export revenue. Last year, Vietnam ran a trade surplus of 11.2 billion USD.

Corporate bonds issued in April fall sharply

The value of corporate bonds issued in April this year fell sharply, equal to only one-tenth of March.

According to information from the Viet Nam Bond Market Association (VBMA), in April 2023, there was one tranche of private placement of corporate bonds and one tranche of public issuance, with a total issuance value of VND2.67 trillion (US$113.7 milion), equal to only 10 per cent of the total issuance volume in March.

From the beginning of this year to May 5, the total issuance volume of corporate bonds reached nearly VND31.7 trillion, of which there were seven tranches of public issuance worth VND5.5 trillion, accounting for 1 per cent of issuance volume, and 15 tranches of private placements with a value of VND26.14 trillion, accounting for 83 per cent of the issuance volume.

VBMA said that the total value of corporate bonds bought back before maturity reached nearly VND49.5 trillion since the beginning of this year, up 48 per cent over the same period in 2022.

As of May 5, the total value of corporate bonds due in May 2023 was more than VND21.4 trillion. Value of bonds due in May of the real estate sector reaches VND9.6 trillion, consumer goods VND3.7 trillion, raw materials VND2.9 trillion, banking VND2.5 trillion.

Also in the general report of VBMA, there were eight companies that were late in paying principals and interests of corporate bonds with a total late payment announced at VND1.2 trillion. Six companies announced restructuring plans, mainly to extend the corporate bond term by from three months to 24 months. 

Social housing loan interest rates drop to 4.8%

Prime Minister Pham Minh Chinh on Wednesday approved a decision that lowers the interest rate on loans for social housing buyers from 5 per cent to 4.8 per cent.

This decision is aimed at providing more affordable housing options for low-income households.

The preferential loan interest rate applies to outstanding loans used to buy, hire-purchase, new construction or home renovation or repair.

The decision takes effect from May 10, 2023 to December 31, 2024.

The Bank for Social Policies is responsible for overseeing the implementation of this decision.

Last month, the Government approved the project "investing in the construction of at least one million social housing apartments for low-income workers in industrial parks for 2021-30". The aim is to have around 1,062,200 local apartments ready by 2030, with an estimated 428,000 units to be completed during 2021-25 and a further 634,200 units during 2025-30. 

Banking industry takes on economic challenges

Economic difficulties are on the shoulders of the banking industry as it has to stabilise the macroeconomy, control inflation, and support economic growth and businesses, experts have said.

At the 2023 Vietnam Banking Forum held on Wednesday, the experts said the banking system still has to mainly provide capital for the whole economy as the country’s capital market is still inadequate. Viet Nam's credit-to-GDP ratio is currently at a very high level. If Viet Nam continues to maintain credit growth at a high level as in previous years, it will be very risky for the country’s banking system and the whole economy.

Nguyen Quoc Hung, General Secretary of the Vietnam Banking Association, said it is currently difficult for the State Bank of Vietnam (SBV) as it has to stabilise the macro-economy and control inflation besides supporting firms and economic growth.

If the current difficulties of the whole economy are put on the banking industry, firms will even face more difficulties next time when banks struggle, Hung warned.

According to Hung, although Circular No 02/2023/TT-NHNN on debt rescheduling and retention of debt categories to assist borrowers has been issued, commercial banks still have to take full responsibility and make their own decisions on debt restructuring. Therefore, commercial banks may have to burden all difficulties of the whole economy.

Ha Thi Kim Nga, senior economist of the International Monetary Fund (IMF)’s Resident Representative Office in Viet Nam, also said the SBV is currently having to navigate a very difficult balance between controlling inflation and avoiding a sharp slowdown in growth, and at the same time dealing with uncertainties related to the real estate market.

Nga recommended the SBV should rely on policy interest rates to control inflation and avoid putting pressure on the exchange rate. At the same time, the SBV should ensure the stability of the financial sector when handling the bottlenecks of the bond and real estate markets.

SBV’s Deputy Governor Pham Thanh Ha said amid a complicated and unpredictable international environment, a small and highly open economy like Viet Nam had to face many difficulties in harmonising contradictory goals.

Ha specified that the challenges were supporting economic recovery while keeping inflation in check, reducing the depreciation of the local currency while keeping interest rates stable, and ensuring the safety of the banking system while providing adequate credit for the economy.

In the first months of 2023, credit growth was very slow, but if credit was loosened, there would be potential risks, Ha noted.

According to Ha, difficulties in the economy include those facing firms and banks. If banks support firms at an acceptable level, the economy will get better. However, if banks support firms by loosening credit granting conditions, and postponing or rescheduling loan payment time, the difficulties will be transferred to the bank.

At the forum, experts said as the global economy is facing many uncertainties while the domestic economy is riddled with numerous problems, collaboration between ministries, agencies and localities is needed to work out common solutions that can enhance the connectivity between policies and the effectiveness of monetary policy in particular. 

HCM City seeks to revive industrial growth

HCM City needs to review its industrial production to identify shortcomings and barriers, according to experts.

The city leads the country in many areas like industrialisation – modernisation and innovation, but the contribution of industry to its economy is decreasing, and the industry is losing its leading position in the south-east, they told a conference held in HCM City early this week.

Statistics from the Department of Industry and Trade show that the sector only makes up 18 per cent of the economy, significantly down from 10 years ago.

This is due to its limited land availability for industries and enterprises shifting production to neighbouring localities.

Many enterprises still use outdated technologies that consumes a lot of resource or are labour-intensive, yielding low value, and this should be changed through technology and innovation, the seminar heard.

The department reported that the index of industrial production rose by 8.1 per cent year-on-year in April and 1.4 per cent in the first four months.

Despite this positive sign, businesses continue to face difficulties due to a lack of orders and pressure to repay bank loans.

Speaking at a recent seminar, Vo Van Hoan, vice chairman of the city People’s Committee, said the economic structure is being transformed towards services, but the municipal administration continues to pay attention to industry to ensure balanced development.

Bui Ta Hoang Vu, director of the Department of Industry and Trade, said the city still had certain advantages that other localities could not match.

It would focus on comprehensively developing the hi-tech sector, supporting industries and its four key industrial sectors (electronics, pharmaceutical chemicals-rubber-plastic, mechanical engineering, and food and beverage processing), he said.

It would pay greater attention to key industrial products and those with development potential, and encourage and help enterprises with enhancing digital transformation and green production, he said.

According to experts, the city should add to its four key new industries such as bio-technology, medical and renewable energy equipment manufacture and automation.

It should also focus on six service industries (tourism, finance and insurance, e-commerce, healthcare, transportation and logistics, and educational technology) to complete the industrial eco-system, they said.

Assoc. Prof. Lai Quoc Dat of the HCM City University of Technology said the four key industries also need extensive reforms.

The mechanical engineering industry should focus on mould technologies, robotics, and the Internet of Things, and the rubber and plastic industry on making products for the healthcare and auto parts sectors, he said.

Nguyen Thi Kim Ngoc, deputy director of the city Department of Industry and Trade, advised local firms to upgrade their technologies, workers’ skills and infrastructure to meet the requirements of the supply chains.

She added that her department is co-ordinating with others to spell out industrial development plans for the city until 2030, restructure industry and promote scientific research and innovation.

Investors propose to implement projects in South Phu Yen Economic Zone

Many investors have proposed the south-central Phu Yen Province to approve investment policies, heard a conference held on Wednesday by the provincial Party Committee to collect opinions on the implementation of projects in Hoa Tam Industrial Park, which belongs to South Phu Yen Economic Zone.

Hoa Phat Group proposed to invest in four projects in South Phu Yen Economic Zone including an infrastructure business project in Hoa Tam Industrial Park, Bai Goc Port, Hoa Phat Iron and Steel Complex in Hoa Tam Industrial Park and a Commercial - Service Area.

The investment progress of the project is 36 months after being granted the investment policy and handing over the land.

Particularly, the project for the Commercial - Service Area is implemented synchronously with the investment of Hoa Phat Iron and Steel Complex in Hoa Tam Industrial Park and other secondary projects.

The total investment for four projects of Hoa Phat Group is estimated at about VND120 trillion (US$5.1 billion).

Labour demand for steel factories is about 12,000 people; in which, local labour accounts for 80-90 per cent. The average income of employees is about VND12 million per person per month.

The group wishes the province to update the proposals for these projects in the General Plan of Southern Phu Yen Economic Zone and the Planning of Phu Yen Province to facilitate implementation.

PETMAL Oil Holdings from Malaysia proposed to the province to build a modern refinery and petrochemical complex with a capacity of 8 million tonnes of crude oil per year.

Total project investment is expected to be about $5 billion. The land use area is 500ha and the water surface area is about 500ha.

During the operation phase, the petrochemical complex project will need about 1,200 direct workers and create indirect jobs for about 5,000 people and hundreds of product distribution services.

It is expected to contribute to the local budget about VND20 trillion after the project is put into operation.

Bai Goc Port in South Phu Yen Economic Zone had many advantages, therefore, the province determined to attract investment, said Ta Anh Tuan, chairman of the provincial People's Committee.

The proposed projects were large-scale, so the implementation process would also be difficult from the time the investment licence was issued until the project was formed, he said.

Therefore, it needed co-ordination, high determination and a clear and unified view with investors to implement, said Tuan.

The implementation process must be clear, transparent and in accordance with the provisions of law, he added.

The general view of the province is not to trade off the environment for economic development. For investors, it is also necessary to have a very clear commitment to the locality in terms of finance and implementation time; and avoid wasting resources and time. 

Tenders invited for roads to Long Thanh airport project

The Airports Corporation of Vietnam (ACV) is inviting tenders for a VND2,800-billion bidding package to construct two roads leading to Long Thanh International Airport.

Package 6.12 includes building and preparing designs for roads No. 1 and No. 2, and has an execution duration of 900 days.

The deadline for the submission of bids is 9:00 a.m. on May 28, and the bids will be opened at 9:30 a.m. on the same date.

ACV requires bidders to have over VND53 billion as bid security in the form of a guarantee letter issued by a local bank or a foreign bank branch.

Road No. 1 will be nearly 4 kilometers long and have six to eight lanes. It will start at the western gate of the airport, connect to the underway Bien Hoa-Vung Tau Expressway and National Highway 51, and end at provincial road 25C.

The 3.5-kilometer long road No. 2, with four lanes, will intersect with road No. 1, run in parallel with Bien Hoa-Vung Tau Expressway and end at the HCMC-Long Thanh-Dau Giay Expressway.

Dong Nai Province has promised to hand over cleared land by this June for investors to execute the connecting roads.

Central bank drains VND39 trillion from market this week

Vietnam’s central bank net withdrew nearly VND39 trillion from the market and slashed interbank interest rates further as the banking system saw surplus liquidity due to slow credit growth.

The State Bank of Vietnam (SBV) sold seven-day and 28-day government bonds worth a combined VND20 trillion with a coupon rate of 5% per year by auction via open market operations (OMO) yesterday, May 11, but it saw no bidders.

More than VND11.9 trillion worth of government bonds fell due the same day, decreasing outstanding government bonds on OMO to over VND24.6 trillion. Outstanding treasury bills stayed at around VND110.7 trillion.

Since the start of the week, the SBV has net withdrawn over VND38.9 trillion via OMO.

As of late April, credit grew merely 3.05%, suggesting weak demand in the interbank and personal loan markets.

It then reduced interbank rates by 0.03-0.04 percentage point for tenors of less than one month. The overnight rate now stands at 4.78% per year.

Analysts predicted that interest rates would continue sliding in the next three years. According to Standard Chartered, the central bank may slash its refinancing rate by 50 basis points by the end of the second quarter to 5% yearly.

“If the Federal Reserve halts interest rate hikes at its meeting slated for June, the SBV may revise down its key interest rates by at least 50 basis points until late 2023,” said securities firm VNDirect.

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