The HCMC Department of Natural Resources has mapped out a plan for issuing ownership certificates to 81,000 apartments, reported the Vietnam News Agency.

According to a report sent to the city government, the department divides commercial housing projects into six groups. Of which, group 1 includes 8,159 apartment units that have yet to receive ownership certificates but face no legal problems and await a confirmation on the completion of financial obligations from tax authorities.

The department will directly work with the relevant tax authorities and businesses to complete handling the certificates for these projects in six months.

There are around 30,061 apartment units in group 2 whose application documents for ownership certificates have not been submitted to the competent authorities. The department will work with businesses and urge them to prepare documents in the third quarter of the year.

Group 3 comprises 29 projects with 10,019 apartment units, a new type of property that has yet to be governed by any regulatory document. This month, the department will provide training for granting ownership certificates for construction works attached to commercial land in compliance with Decree 10 of the Government.

Meanwhile, 19,958 apartment units of 39 projects in group 4 must implement additional financial obligations.

Six projects with 4,653 apartment units in group 5 now face other legal issues, which the Department of Natural Resources and Environment will study and develop solutions in the second and third quarters of this year.

The last group includes 18 apartment projects with 8,235 units under inspection.

Economic, trade, investment cooperation – a pillar of Vietnam-RoK relations

Economic, trade and investment cooperation has served as both a pillar and momentum of the relations between Vietnam and the Republic of Korea (RoK), Deputy Minister of Foreign Affairs Nguyen Minh Vu affirmed at a programme in the northern province of Bac Ninh on May 18.

Jointly held by the provincial People’s Committee, the Ministry of Foreign Affairs and the RoK Embassy in Vietnam, the programme, named “Meet Korea in the northern region”, brought together more than 150 Korean firms and representatives from 13 northern cities and provinces.

The event marked the start of a series of activities within the “Meet Korea” programme 2023 co-organised by the ministry and the embassy.

Vu stressed that the RoK now ranks first in terms of direct investment in Vietnam, second in official development assistance (ODA), labour and tourism, and third in trade cooperation.

Meanwhile, Vietnam is a big partner of the RoK in the Association of Southeast Asian Nations (ASEAN), accounting for half of the total trade revenue between the RoK and ASEAN.

Therefore, Vietnam always supports and makes efforts to remove difficulties for Korean investors in line with legal regulations, helping them run long-term business in the country, the official affirmed.

The RoK Ambassador to Vietnam Oh Young-ju noted that the “Meet Korea in the northern region” programme, in its fourth edition, has become an annual exchange venue for businesses of the two countries.

The event this year has special significance as it is the first held after the two countries upgraded their relationship to a comprehensive strategic partnership in December 2022, helping enterprises and leaders of the two countries explore cooperation opportunities in new areas, she added.

Chairwoman of the provincial People’s Committee Nguyen Huong Giang said the programme offers a good opportunity for businesses and investors to set up cooperation with Bac Ninh and other northern localities.

The programme featured discussions on cooperation in supply and production chains, and sustainable economic development, during which leaders of the participating cities and provinces introduced potential, strengths, and socio-economic development in their localities, major Korean projects there, and their investment attraction orientations.

For their part, Korean enterprises raised proposals on issues of shared concern like supply chain diversification, smart city building, IT application in green development, environmental pollution response, and administrative reform.

Deputy minister Vu said such proposals will help the Vietnamese government and local authorities set forth specific measures and solutions to enhance cooperation between Vietnamese localities and Korean partners, as well as the comprehensive strategic partnership between the two countries. 

Top 500 fastest-growing companies in 2023 announced

Tin Viet Finance JSC, Dolphin Sea Air Services Corporation and VPS Securities JSC are among the top 10 in the 500 fastest-growing companies in Vietnam (FAST500) in 2023 as announced by the Vietnam Report JSC and the VietNamNet e-newspaper on May 17.

The others in the top 10 included Vantage Logistics Corporation, Bee Logistics Corporation, Super Cargo Service Company Limited, Deo Ca Traffic Infrastructure Investment JSC, MB AGEAS Life Insurance Company Limited, Thien Phu Si JSC and Mirae Asset Securities (Vietnam).

At the ceremony, Nguyen Van Ba, Editor-in-chief of VietNamNet said in 2023, Vietnam is entering a new development phase with many challenges and opportunities. The global economic and political situation has been complicated, posing many challenges for businesses’ development.

However, with political stability and the Government's efforts in promoting economic reform, Vietnam is one of the bright spots in the region and the world. GDP in the first quarter of 2023 increased by 3.32% over the same period last year, maintaining an appropriate growth rate in the context of the general difficulties of the world economy when many countries were in recession.

According to the World Bank’s forecast, Vietnam’s GDP could reach 6.5% this year. The economy has benefited from free trade agreements and attracting FDI. In addition, the Government has been implementing solutions to support businesses and promote domestic production.

In addition, this year's Top 10 list are all key players in industries that have many achievements in providing products to customers, showing solid bravery with stable financial capacity, and good resilience in the face of difficult market context.

According to a survey by Vietnam Report, 81.3% of enterprises reported still having revenue growth momentum in 2022 and about 70% recorded increased profits compared to the previous year, of which more than half achieved profit growth of over 75%.

However, the growth rate of revenue and profit in the period of 2021-22 was lower than that of 2020-21.

Many representatives in FAST500 believed that the success of businesses is able to maintain stable operations in a year full of fluctuations and unexpected risks.

Despite many concerns about an uncertain future, FAST500 businesses keep positive expectations. In particular, the outlook for the world economy would improve in the second half of 2023 when concerns about inflation are cleared and central banks reach the end of the tightening policies.

In addition to the Top 10 fastest-growing companies in Vietnam in 2023, the organiser also announced the Top 10 Real Estate Companies and Top 10 Building Material Companies.

FAST500, launched in 2011, is based on the compound annual growth rate (CAGR) in terms of revenue and business performance. Other criteria such as total assets, after-tax profit, and companies’ prestige on the media are also taken into account to identify their scale and stature in the industries they operate in.

At least six ministries to engage in inspection of TikTok's operation

An interdisciplinary inspection team involving staff from at least six ministries will conduct a comprehensive inspection of the operations of TikTok, a popular video-sharing app in Việt Nam, according to the Ministry of Information and Communications.

The inspection will focus on the observance of regulations on the provision of social networking services for domestic users, the information censorship process, user information verification, prevention and removal of information that violates Vietnamese law.

It also includes handling user complaints, distribution algorithms, recommending content to users, and collection, management, storage and use of users’ data.

They will also inspect TikTok’s compliance with laws on child protection, their information safety and network security performance as well as prevention and combat of social evils in cyberspace.

Their compliance with regulations related to the provision of e-commerce services and tax obligations will also be examined.

In addition, the inspection work will also focus on their management of celebrities and so-called TikTok Idols.

The team will also assess the impact of TikTok on youth; evaluate the impact and influence of the social network TikTok on the trend and role of mainstream media.

The ministries and agencies engaged in the inspection are Ministry of Information and Communcation, Ministry of Public Security, Ministry of Culture, Tourism and Sports, Ministry of Industry and Trade, Ministry of Finance, Ministry of Labour, Invalids and Social Affairs, Hồ Chí Minh Communist Youth Union Central Committee and HCM City Department of Information and Communications.

Earlier, Lê Quang Tự Do, head of the ministry’s Authority of Broadcasting and Electronic Information pointed out six violations of TikTok in Việt Nam.

They included lack of effective measures to violating content related to politics, fake news, harmful and even dangerous content for children; its use of automatic content distribution algorithms to create trends to spread sensational, clickbait content; no effective control measures to prevent scammed business activities, pirated content.

With a comprehensive inspection, the Ministry of Information and Communications will deploy legal, economic, technical, diplomatic and communication measures to request cross-border platforms including TikTok to comply with Vietnamese law. 

RoK firms seek investment opportunities in Bac Ninh

A programme to boost connection between businesses of the Republic of Korea (RoK) and those of the northern province of Bac Ninh was held in the province on May 18.

Speaking at the event, Standing Vice Chairman of the Bac Ninh People's Committee Vuong Quoc Tuan said the province has always made efforts in creating favourable conditions in terms of premises, human resources, and administrative procedures for investors coming to the locality.

The smallest province in the country, yet Bac Ninh has a favourable geographical position and the constant reform efforts of the province’s leaders have created a healthy investment environment ranking top of the country, he noted.

Currently, Bac Ninh has 16 industrial parks covering a total area of nearly 6,400 hectares. Of this, 10 have been put into operation and two are under construction

Speaking highly of the investment environment, potential and development of the province over the past time as well as efforts in organising activities to connect with the RoK’s businesses, RoK Minister Counsellor Yoon Sang Key expressed his hope that more investment cooperation relations will be established between the two sides after the programme.

During the event, RoK investors discussed their interests of investment areas such as environment, science and technology, Korean language training, human resources training, and industrial equipment and electronic components, among others.

On the occasion, relevant departments and agencies introduced the potential, strengths and investment attraction orientations of the province, and answered questions raised by enterprises.

The province is planning to establish a working team to remove difficulties for businesses in the areas of investment, construction planning, environment, security, and labor training in order to create a bridge to help businesses remove difficulties and promote development.

Among the 39 countries and territories currently investing in Bac Ninh, the RoK is the biggest investor with 960 projects worth nearly 14.34 billion USD, accounting for 60% of the total foreign investment in the province.

First VinFast VF 8 batch arrives at Canada port

VinFast, a subsidiary automaker of Vietnamese conglomerate Vingroup, on May 18 announced the arrival of the first shipment of 781 VF 8 vehicles to Nanaimo port, British Columbia, Canada. The VF 8 is now certified for sale in the North American country with first deliveries taking place next month.

The VF 8's battery range has been officially certified at 425 km for the Eco trim, 391 km for the Plus 300 kW trim, and 354 km for the Plus 260 kW trim.

In Canada, the VF 8 Eco is listed from 53,600 CAD (nearly 40,000 USD), while the Plus 260 kW has a starting price of 59,200 CAD. The Plus trim also offers an optional power upgrade from 260 kW to 300 kW for an additional 1,500 CAD per vehicle.

VinFast has officially received all the necessary certifications to sell cars in Canada.

The batch of the 781 VinFast VF 8 vehicles arrived in Canada as a part of the initial shipment of 1,879 units exported to North America.

Livestock businesses ride a rough Q1

Falling meat prices and rising feed costs have eroded the profits of many livestock businesses over recent months. In consolidated financial statements for Q1 announced at the beginning of May, Hoa Phat Group recorded a 40 per cent decrease in revenue and a 95 per cent dip in profit compared to the same period last year.

Hoa Phat is the largest private enterprise in Vietnam, according to the VNR500 rankings from Vietnam Report, operating in both steel and agriculture. The company holds the largest market share in Vietnam in the steel segment and is also the largest steel producer in Southeast Asia.

In the agricultural sector, Hoa Phat Group also holds the most market share in providing Australian cows in Vietnam and takes the lead in the entire northern region in the production of chicken eggs, with an average monthly output of more than 1.5 million for the entire WinMart, Coop Mart, and BRG Mart system.

However, while Hoa Phat’s steel is gradually recovering after months of decline, the group’s agricultural segment suffered a loss of nearly $5 million in the first quarter of 2023, a record loss since the group stepped into the agriculture sector in 2015.

Livestock groups have suffered from high costs of animal feed, complicated disease developments, and high interest rates, while selling prices and consumer purchasing power have decreased significantly.

Many other large enterprises in the livestock field also recorded a sharp decline in profits. Despite actively reducing the price of chilled meat to stimulate consumption, Masan MEATLife JSC, a subsidiary of Masan Group, reported a loss of $5.2 million in the last quarter.

Dabaco Vietnam also announced a record loss of $13.9 million in Q1, with revenues down 18 per cent compared to the same period in 2022. Dabaco owns millions of pigs with an output of approximately 600,000-700,000 per year.

BAF Vietnam Agriculture JSC, which owns 17 livestock subsidiaries, also suffered a loss of $126,000 in the first quarter. BAF is currently focusing on investing in the pig segment, with an average supply of 280,000 pigs per year.

Truong Sy Ba, chairman of BAF, said that the company is aiming for green consumption trends and a closed safe food production model. However, the closed model is not deemed effective when the market is volatile, and the selling prices have not been as expected.

The Vietnamese livestock industry is estimated at $15 billion and is one of the fields attracting the participation of many businesses.

Thaiholdings JSC, through its subsidiary Thaigroup, is working with third parties to invest $26 million in a high-tech pig raising project in the north central province of Thanh Hoa.

Hoang Anh Gia Lai JSC, a new name in the livestock market, also announced plans to raise banana-fed chickens and pigs at the end of last year. In its outlook for 2023, Hoang Anh Gia Lai planned to supply the market with 20 million chickens and one million pigs raised on bananas, and at the same time develop the Bapi Food chain with about 1,000 stores.

However, in a letter to shareholders about the business situation for Q1, the firm that the domestic pork price is still low, while the banana price has remained at a high level, so the entire profit of the business currently mainly comes from bananas.

According to data from the Ministry of Industry and Trade, Vietnam imports about 80-90 per cent of input materials for animal feed production, and this is one of the reasons why the production cost of livestock items has increased over time.

In 2022, Vietnam spent $5.6 billion on importing 10.32 million tonnes of animal feed and animal feed ingredients. Import prices of common feed ingredients such as corn, barley, wheat, soybean meal, and canola meal have increased 10-20 per cent.

As predicted by SSI Research, the difficulties of meat producers will ease as the meat price is expected to increase by 5 per cent later in 2023 and feed costs will stabilise and gradually decrease from the second quarter. In addition, the reopening of China will be a catalyst for the recovery of the livestock industry, which is expected to record more positive results by the end of this year.

Shop increase online sales amid poor purchasing power

Amid a decrease in purchasing power, traders have resorted to increasing online sales.

At some traditional markets in Ho Chi Minh City this month, the purchasing power was quite weak, decreasing by 40 percent-60 percent compared to before the Covid-19 epidemic.

Many small traders at An Dong Market in District 5, Ben Thanh Market in District 1, and Binh Tay Market in District 6 said that due to weaker spending growth, they didn’t earn enough money to pay for electricity, cleaning fees, taxes, and hiring staff.

To improve their sales, many small businesses have increased online sales, launched promotion programs, and participated in promotion programs organized by the Department of Industry and Trade of Ho Chi Minh City. For example, at Hoa Hung market in District 10, some small traders have offered discounts ranging from 5 percent-30 percent for different items.

The Hoa Hung Market Management Board informed that from now until the end of 2023, there will be more consumer stimulus programs to revive purchasing power.

Shop increase online sales amid poor purchasing power

Amid a decrease in purchasing power, traders have resorted to increasing online sales.

At some traditional markets in Ho Chi Minh City this month, the purchasing power was quite weak, decreasing by 40 percent-60 percent compared to before the Covid-19 epidemic.

Many small traders at An Dong Market in District 5, Ben Thanh Market in District 1, and Binh Tay Market in District 6 said that due to weaker spending growth, they didn’t earn enough money to pay for electricity, cleaning fees, taxes, and hiring staff.

To improve their sales, many small businesses have increased online sales, launched promotion programs, and participated in promotion programs organized by the Department of Industry and Trade of Ho Chi Minh City. For example, at Hoa Hung market in District 10, some small traders have offered discounts ranging from 5 percent-30 percent for different items.

The Hoa Hung Market Management Board informed that from now until the end of 2023, there will be more consumer stimulus programs to revive purchasing power.

Digital transformation in banking sector

The banking industry in Vietnam is currently taking the lead in applying new digital technology in its various departments.

Many banks are now implementing digital technology applications such as Big Data, Artificial Intelligence (AI), and Application Programming Interface (API) to their systems. But on the other hand, the financial market of Vietnam at present does not have a digital bank and there is as yet no scheduled licensing for the establishment of a digital bank in the country.

It can be said that the potential of Vietnamese fintech companies is huge. However, due to the unclear and incomplete legal environment, the trust of consumers and the market is still modest and unclear. The current activities of fintech are still very limited compared to their potential, with some fintech companies even face risks. Compared with other countries in the region, products such as peer-to-peer lending, crowdfunding, financial consulting, asset management consulting, data management, insurance technology, and cryptocurrencies, are not yet officially present in Vietnam.

Challenges of digital transformation in the banking and finance sector today face a lack of human resources for digital transformation. While organizations participating in the banking financial market require a large staff with knowledge of information technology and banking finance. Investment costs for building database, building hardware and software, rebuilding process, training, and testing costs to ensure continuous risk-free operations, and integration between new investment and previous investment activities, are all in need of streamlining.

There is a requirement for the security of customer information in digital technology transactions. There are still many unclear legal provisions and lack of uniformity in processes, customers need to be identified in unspecified digital platforms, while there are no regulations on electronic contracts, digital signatures, and digital assets have also not caught up with the digital transformation process.

As shortcomings prevail, legal and institutional issues are still a big challenge for digital transformation in the banking and finance sector. In principle, when promulgating a legal regulation to regulate the operation of an organization in the financial market, banks must ensure the following three factors.

One, legal surety will clearly define what is to be put on the market and clearly stipulate the conditions under which it is to be supplied. Two, there needs to be equality among market participants. Three, regulatory requirements must consider the level of risks. These are the main obstacles for the promulgation of legal regulations for digital transformation and the operation of fintech companies in the financial and banking market in Vietnam.

In the amended draft for Law on Credit Institutions, the Government has added a number of essential features to support digital transformation in the banking and financial sector in the near future. First, supplementing credit institutions to conduct business activities by electronic means in accordance with regulations of the State Bank of Vietnam, and also other business activities of credit institutions via electronic transactions.

Second, supplementing regulations governing credit granting activities by electronic means in internal regulations, on credit granting approval, and on storing credit records. Third, assigning the Government to regulate and control financial technology activities in the banking sector. Fourth, additional activities of treasury services for payments.

These are very vital, necessary, and reasonable new regulations. On the basis of these principles, the Government and the State Bank of Vietnam will continue to issue legal documents under the law that are necessary for commercial banks and credit institutions to implement digital transformation activities in their operations.

However, the draft Law on Credit Institutions still has some issues that need further consideration. Firstly, the new draft law only stipulates that credit institutions and foreign bank branches may conduct business activities by electronic means in accordance with the State Bank of Vietnam regulations on banking activities and other business activities of credit institutions, branches of foreign banks, and regulations of law on electronic transactions.

There are no regulations allowing Fintech companies to participate in providing banking or financial services. Recently, Fintech companies have provided many new products, services, and models in banking such as lending, capital raising, payment, insurance, investment, and personal financial management. But Fintech companies are not credit institutions.

The draft law only provides general provisions, which may lead to the appearance of entities that are not credit institutions such as Fintech companies, which may not be subject to the regulations of the draft law, and hence there will be no basis for the Government and the State Bank of Vietnam to implement regulations.

Currently in Vietnam there is no digital bank. In the draft law, there are no regulations related to the establishment, organization, and operation of digital banks. This type of bank brings great benefits to users, such as convenience in monetary transactions, saving of time and effort, saving of overhead costs, and keeping all data safe.

In order to support the digital transformation of the financial sector in Vietnam, the banks must offer provisions to strengthen the general principles in the draft law so that there is a basis for the Government and the State Bank of Vietnam to implement the testing of new technology and for the deployment of new products, services, and business models in financial activities with the participation of Fintech companies for future growth towards a more convenient digital form of dealing with money and finances.

Businesses accelerate domestic consumption stimulation

A series of summer promotion programs offering discounts of up to 5-50 percent, even up to 100 percent, has been launched by many enterprises.

Businesses have made every effort to attract clients during the financial crisis. According to experts, this is one of the important solutions to help the economy recover.

Enterprises have calculated their revenue and expenses and reduced their profit target to offer promotional programs to customers who are focusing on savings over spending and purchasing bargain products.

Co.opmart supermarket chains are offering a discount of 15 percent on a number of items, such as imported oranges and apples that are sold at VND66,000 – VND98,000 per box of 3-4 pieces, Simply 5-liter pure soybean oil costing VND280,000 per bottle, Nakydaco 1-liter cooking oil trading at VND37,500 per jar.

Several commercial centers and supermarkets in HCMC have also launched many programs to stimulate consumption, including Aeon Mall, MM Mega Market, Go! and BigC supermarkets, Nguyen Kim Electronics Shopping Center, and Vincom Shopping Mall.

Ms. Nguyen Thi Bich Van, Communications and Marketing Director of Central Retail Group, said that the company always accompanies the Government in stabilizing prices to control inflation through a program offering more than 1,000 products at low prices from now until the end of this year.

In addition, around 44 enterprises will participate in the HCMC’s Market Stabilization Program 2023 and a market stabilization program on the lunar New Year 2024 to supply food and essential goods, said the HCMC Department of Industry and Trade.

The supply of subsidized products in 2023 may increase 3-5 percent over the same period, equivalent to 23-31 percent of the market demand in normal months and 25-43 percent of the market demand during the New Year and Lunar New Year holidays.

According to the General Statistics Office, in the first quarter of 2023, the total retail sales of consumer goods and services were estimated at VND1,505 trillion, up 13.9 percent over the same period last year.

In fact, many domestic enterprises have recently provided many new and diversified products, such as Binh Tien Imex Corp., Pte., Ltd (Biti’s), Bat Trang Ceramics Space Joint Stock Company.

Biti’s has currently 156 stores and more than 1,500 sales intermediates with an annual output of 20 million pairs of shoes. The footwear company has been exporting to foreign markets, such as the UK, the US, Japan, China, and others.

Meantime, Director of Bat Trang Ceramics Space Joint Stock Company Le Trung Liem said that the company has built a long-term strategy to make high-quality sophisticated products at reasonable prices to meet customers’ demand as well as handle competition in business and preserve the tradition of Vietnamese ceramics.

Enterprises need to have a methodical and sustainable business strategy and plan, especially focusing on the quality of goods, said Chairman of the Nam Dinh Province Businessmen Club Tran Quoc Manh.

Products must meet requirements of guaranteed origin, quality assurance, and reasonable price, added Chairwoman of the Association of High-Quality Vietnamese Goods Enterprises Vu Kim Hanh.

Businesses need to actively protect their brands, and help clients identify an original from a counterfeit. The functional agencies should strengthen inspection and strictly impose strict punishments on the trade and production of counterfeit goods. Consumers are urged to look for products of known origin and say “no” to poor quality, imitation products, said Nguyen Viet Hong, General Director of Vina CHG cum Vice Chairman of the HCMC Association for the Protection of Consumer Rights.

Vietnam attends Shanghai International Food Exhibition 2023

Dozens of Vietnamese enterprises attended the Shanghai International Food Exhibition 2023 (SIAL Shanghai 2023) on May 18 to promote their products and seek business opportunities.      

The expo scheduled to run from May 18 to May 20has attracted the participation of 4,500 foreign exhibitors showcasing 20 product categories ranging from confectionery, beverages, canned goods to agricultural products, fresh vegetables, and organic food.

CCI France-Vietnam (FFCVF), the official representative of SIAL Network in Vietnam, has arranged a Vietnam Pavilion to showcase various food and beverage products, including cashew nuts, spices, fruits, soft drinks, confectionery, and seafood from 18 Vietnamese enterprises.

The Vietnamese pavilion has rapidly captured the attention of Chinese people and foreign visitors from other countries around the world.

As the leading food and beverage exhibition in Asia, SIAL Shanghai 2023 presents a golden opportunity for food and beverage exporters and manufacturers to introduce their products, expand markets, and share their numerous experiences with leading experts operating in the industry.

Shrimp farmers halt farming as prices plunge steeply

As a result of a substantial decline in exports and a surplus of inventory, the prices of raw shrimp in the Mekong Delta have experienced a sharp drop.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), shrimp exports in the first four months amounted to US$891 million, reflecting a 44-percent decrease compared to the corresponding period last year.

On May 15, traders announced the specific purchasing prices of white-leg shrimp in the provinces of Ca Mau, Bac Lieu, and Kien Giang as follows: for the 30-piece shrimp, the price is VND123,000 per kilogram, compared to around VND173,000 per kilogram at the beginning of the year.

For the 50-piece shrimp, the price is VND99,000 per kilogram, compared to VND120,000 per kilogram at the beginning of the year; for the 70-piece shrimp, the price is VND91,000 per kilogram, compared to VND98,000 per kilogram at the beginning of the year.

However, the prices of tiger shrimp have remained relatively stable compared to the beginning of the year. Specifically, for chilled commercial tiger shrimp, the price for the 20-piece size is VND230,000 per kilogram, while the 30-piece size is priced at VND165,000 per kilogram.

According to seafood processing and exporting companies in the Mekong Delta, the purchasing power of many major markets has been affected by inflation. Consequently, orders from traditional markets like the US, the EU, and Japan have significantly dropped, resulting in high inventory levels. The prices of raw materials, particularly shrimp feed for aquaculture, have risen, leading to increased production costs for raw shrimp.

As a result, the competitiveness of Vietnamese shrimp has diminished when compared to shrimp products from other countries. Currently, the average export price of shrimp is approximately $10.8 per kilogram, reflecting a 3.4-percent decrease compared to the same period.

Mr. Nguyen Hoang An, Director of Cai Bat Cooperative in Hoa My Commune, Cai Nuoc District, Ca Mau Province, has revealed that shrimp farmers are facing significant challenges due to the current shrimp prices. They are experiencing a lack of profitability and a high risk of incurring losses.

"Currently, many shrimp farmers have decided to suspend their shrimp ponds. Super-intensive shrimp farming involves a considerable level of risk. Moreover, the prices of white-leg shrimp are currently low, exacerbating the high-risk nature of shrimp farming during this period," Mr. Nguyen Hoang An shared.

Priority goes to transport projects in Mekong Delta

The government has allocated VND400 trillion ($16.8 billion) for transport infrastructure projects and the Mekong Delta region will receive investment priority for expressway projects and the Sai Gon - Can Tho express railway line project, according to Prime Minister Pham Minh Chinh.

Speaking at a meeting with voters in Binh Thuy district in the Mekong Delta’s Can Tho city on May 14, Prime Minister Chinh said the government has negotiated with partners and will give priority to implementing the express railway project. Preparations for construction are now underway.

The project has total investment of nearly $9 billion and is designed to handle passenger trains reaching speeds of 190 km/h and freight trains reaching 120 km/h.

It is expected to help increase links between Ho Chi Minh City and the southern key economic region with Can Tho city, which is considered the key economic hub of the Mekong Delta and the gateway to the Delta region.

Two expressway projects in the Mekong Delta region are also accelerated: the Ho Chi Minh City - Ca Mau Expressway and an expressway connecting Soc Trang, Can Tho, Hau Giang, and An Giang, according to the Prime Minister.

4M motor car sales down 30%

Members of the Vietnam Automobile Manufacturers Association (VAMA) sold a total of nearly 22,409 units in April, down 25 per cent against March and 47 per cent year-on-year.

This brought the total number of units sold in the first four months of the year to 92,801, a year-on-year decline of 30 per cent.

Sales of domestically-assembled motor cars in April stood at 13,325, a fall of 18 per cent, while the number of imported cars was down 34 per cent compared to March.

Earlier this year, VAMA and the Vietnam Association of Mechanical Industry (VAMI) proposed that the government cut registration fees for locally-assembled motor cars by 50 per cent to support the domestic automobile industry. The proposal, however, was not approved by the Ministry of Finance.

Hanoi to invest in urban infrastructure

Hanoi will invest in developing modern urban infrastructure and promoting rapid and sustainable urbanization as part of measures to boost industrialization and modernization.

This is part of a plan adopted under a decision issued recently by Chairman of the Hanoi People’s Committee Tran Sy Thanh to implement an action plan issued by the Municipal Party Committee in February to carry out a Party Central Committee Resolution on the acceleration of national industrialization and modernization by 2030 with a vision towards 2045.

The capital will invest in building more bridges crossing the Red and Duong Rivers, strive to complete Ring Road No. 4 before 2027, and prepare to build Ring Road No. 5 before 2030.

It will also study the construction of one more international airport and develop new, smart, and ecological urban areas.

Hanoi will develop a modern and environmentally-friendly public transport network and speed up the progress of transport projects.

Capital commits to removing obstacles hindering SME development

Hanoi will resolutely remove any inappropriate regulations and obstacles to ensure that the development of small and medium-sized enterprises (SMEs) is not affected, Vice Chairman of the Hanoi People’s Committee Nguyen Manh Quyen has said.

Speaking at the sixth congress of the Hanoi Association of Small- and Medium-sized Enterprises for the 2023-2028 tenure, held on May 14, he said the city will propose the government soon amend the Law on Supporting SMEs and promote the implementation of policies to support them.

He called on enterprises in Hanoi to bolster digital transformation, apply scientific and technological advances to improve their productivity and efficiency, and comply with laws to be worthy of their role as important drivers of local socio-economic development.

Vice President and General Secretary of the Association Mac Quoc Anh said it will enhance trade promotions and seek trade exchanges and cooperative opportunities with foreign enterprises to help SMEs boost production and trade.

It will also boost support and links between enterprises and banks and credit institutions to help the former gain better access to preferential loans, he said.

The Association currently has nearly 10,050 members and 25 clubs, district-level associations, and centers for legal counseling, trade promotion, and business support.

Joint venture licensed to build social housing in Thanh Hoa

The Thanh Hoa Provincial People’s Committee has approved the establishment of a joint venture between the Viet Incons JSC, the Vinaconex 21 JSC, and the Hanoi Investment and Trade JSC to build social housing in Thanh Hoa city in the northern province of the same name.

The project has total investment of over VND3.7 trillion ($156 million).

Construction is expected to take five years, from the third quarter of this year to the third quarter of 2028.

It covers an area of around 28,000 sq m and will consist of 2,400 houses.

Thanh Hoa province is also calling for investors to build a residential and public service area in Tho Xuan district. On 10.8 ha, it will see 380 commercial houses and 44 villas built with total investment of an estimated VND600 billion ($25.3 million).

Order reductions continue to hinder various sectors

Vietnam’s industrial performance faces a reduction in export demand and other hurdles that are undermining the country’s economic outlook.

According to the General Statistics Office (GSO), Vietnam’s index for industrial production (IIP) in April increased 0.5 per cent compared to the same period last year, when it rose 10.7 per cent on-year.

However, poor performance of many enterprises has caused a 1.8 per cent drop in the first four months of this year. In the corresponding period last year, the rate expanded 7.8 per cent on-year.

“This is due to the world economy’s slow recovery and the tightened monetary policy in many nations, leading to a slash in consumption demands of Vietnam’s key trade partners. This has resulted in a reduction in production orders and export turnover,” the GSO said.

Vietnam’s four-month export turnover is estimated to hit $108.6 billion, down 11.8 per cent on-year. The country’s export value from all of its key markets witnessed a big drop, including in China, the US, South Korea, ASEAN, the EU, and Japan.

Meanwhile, Vietnam’s four-month imports from these markets also saw a shrink by well over 10 per cent in all these markets. “Despite some recovery in April, industrial production in the first four months still dropped on-year. Key growth momentum in areas such as investment, export, and consumption has dipped. Exports and imports in the four months also declined, while the four-month public investment disbursement and registered foreign direct investment have also fallen on-year,” said Prime Minister Pham Minh Chinh at a government meeting early this month.

In the first four months of 2023, the mining sector fell 2.8 per cent compared to the same period last, while the processing and manufacturing sector dropped 2.1 per cent on-year. The electricity production and distribution sector only grew 0.5 per cent on-year, versus a 7 per cent climb in the first four months of 2022. The reductions in these sectors have led to a big decrease in the four-month IIP. The economy grew only 3.32 per cent on-year – lower than the target of at least 6.5 per cent.

The IIP in many key sectors has narrowed, such as production of vehicles by 9.6 per cent; engined vehicles by 8.5 per cent; paper and paper-based products 7.9 per cent; clothes 7.4 per cent; furniture 6 per cent; electronics, computers, and optical products 5.1 per cent; and textiles 5 per cent.

According to the GSO, in the first four months of 2023, there were about 49,900 newly established businesses registered with around $20.2 billion and employing as many as 331,400 workers – up only 0.6 per cent in the number of enterprises but down 26.8 per cent in registered capital.

If an additional $26.28 billion registered by the nearly operational 17,200 enterprises is considered, the total newly registered capital inserted into the economy in the first four months sat at $46.48 billion, down 46 per cent on-year.

Also in this period, the number of businesses with halted operations reached nearly 50,000, up 21.8 per cent on-year. Nearly 21,000 enterprises stopped operations and waited for completing dissolution procedures – up nearly 40 per cent. Some 6,100 businesses completed such procedures – up 10.1 per cent. On average, each month 19,200 enterprises left the market.

According to the latest Business Climate Index report released over a month ago by the European Chamber of Commerce in Vietnam and conducted by Decision Lab with over 1,300 member companies, foreign businesses in Vietnam continue to grapple with regulatory opacity, administrative inefficiencies, and visa and work permit issues. There has been an upward trend in respondents pointing out inadequacies in anti-corruption legislation.

The top significant regulatory obstacles for the companies when doing business in Vietnam in Q1 include unclear rules and regulations at 51 per cent; administrative issues at 41 per cent; visa and work permit issues 31 per cent; customs procedures 23 per cent; and inadequacies in anti-corruption legislation 19 per cent.

“To strengthen Vietnam’s appeal as a dynamic locale, participants reinforced the need for improvements in political stability, regulations, and tax and tariff regimes. These will go a long way in addressing the concerns of businesses and bolstering confidence in the country’s economic prospects,” the report said.

National Green Cooling Programme project officially launched

The National Green Cooling Programme will promote the conversion to high energy-efficient and low-carbon technologies, and increase energy savings in the cooling sector.

The project is implemented through a consortium of the Vietnam Energy and Environment Consultancy JSC (VNEEC), and Perspectives Climate Group. They bring together a consortium of local and international thought leaders. The assignment will be carried out in 12 months from February 2023 to February 2024.

The project was launched in the framework of workshop “In-depth study and survey to develop the National Green Cooling Programme (NGCP),” funded by the Southeast Asia Energy Transition Partnership managed by the United Nations Office for Project Services.

Climate change is already affecting Vietnam. According to the VNEEC, the cooling sector has grown significantly in the last 10 years and is expected to expand considerably in the next few years to meet the increasing cooling demand of the country. The global unit sales in the cooling sector will grow from 336 million in 2018 to 460 million by 2030.

Dang Hong Hanh, co-founder at VNEEC, said that cooling was an irreplaceable aspect contributing to the GHG emission reduction target.

In the midterm, the NGCP with a clear roadmap serves as a platform to strengthen coordination between government agencies key stakeholders in the cooling sector concerning EE and climate change mitigation. Furthermore, the NGCP will provide input and is expected to be adopted to integrate into and develop the National Plan for Management and Phase-out of controlled substances that will be endorsed by the Prime Minister.

Forum seeks to enhance Vietnam-US economic cooperation

The United States is one of Vietnam’s leading partners in key cooperation fields, reaffirmed Hoang Anh Tuan, Vietnamese Consul General in San Francisco, at the Vietnam - US Business Forum 2023 held in the State of Oregon on May 18.

Addressing hundreds of Vietnamese and US business executives at the forum, Tuan underscored the importance of international trade and investment for Vietnam’s economic growth and development. He emphasised that Oregon is well known as a pioneer in innovation, technology, and sustainability with a hub for start-ups.  

With a number of similarities, Tuan expressed his belief that the partnership between the two sides is expected to create fresh opportunities for businesses moving forward.

For his part, Vince Porter, Economic Development and Workforce Policy Advisor to Oregon Governor Tina Kotek, said Vietnam is one of Oregon's leading trading partners, as it has become an important production base for the world's leading companies based in Oregon, including Intel, Nike, and Columbia Sportswear.

Vietnam and Oregon also boast huge potential for cooperation in agricultural, food, and beverage development, said Porter revealing that a business delegation from Oregon is expected to attend the Vietnam Food Expo 2023 in Ho Chi Minh City this November.

Sharing this perspective, Nguyen Hong Duong, deputy director of the Europe-America Market Department under the Ministry of Industry and Trade pointed out that there is plenty of room to build further ties between the two sides in traditional fields such as renewable energy, manufacturing, and education.

The two governments will work together and discuss cooperation frameworks with partners, including the Indo-Pacific Economic Framework to reinforce economic cohesion and generate benefits for businesses of the two countries, Duong stressed.

At the forum, participants touched upon issues related to the local investment climate and shared experience in market development and capacity building so as to meet the stringent requirements and technical regulations set by the US market.

Experts also put forth a range of solutions aimed at developing import and export activities and attracting the supply chain and FDI inflows from the US in future.

Vietnamese food firms attend China’s SIAL Shanghai 2023

Dozens of Vietnamese food firms are joining Shanghai International Food Exhibition (SIAL Shanghai 2023) taking place from May 18-20 in China’s Shanghai city.

The event returns after three years of hiatus due to the COVID-19 pandemic, and is said to be a golden opportunity for food and beverage exporters and manufacturers to introduce products, expand markets, and find new business opportunities as well as learn and exchange experience with leading experts in the industry.

With the participation of 4,500 exhibitors and 150,000 professionals in the food sector from all over the world, SIAL Shanghai 2023 is expected to be an exceptional occasion for businesses to bring their products to China, the world’s number one importer of food and beverage products, and other promising markets.

At SIAL Shanghai 2023, CCI France-Vietnam (FFCVF) - the official representative of SIAL Network in Vietnam, organised the Vietnam Pavilion with the participation of 18 businesses with food and beverage products including cashew nuts, spices, fruits, soft drinks, confectionery, and seafood.

Five other Vietnamese enterprises also joined the event, outside the pavilion parameters.

Hai Duong seeks ways to facilitate FDI enterprises

The northern province of Hai Duong has worked continuously to improve its investment environment, removing difficulties and creating favourable conditions to facilitate the operation of foreign direct investment (FDI) enterprises in the locality, the provincial leaders told representatives of 400 FDI firms based in the locality at a meeting on May 18.

According to Chairman of Hai Duong provincial People's Committee Trieu The Hung, the meeting is an opportunity for the province to listen to FDI firms' opinions and recommendations, thus timely solving bottlenecks that hindering smooth operation of FDI enterprises in the locality.

Representatives of FDI enterprises at the event spoke about problems they are facing, including transport infrastructure, social insurance, site clearance, land lease, regulations on fire prevention and fighting, incentives for FDI enterprises investing outside industrial parks (IPs), procedures and documents for project construction permit, electricity supply situation, and mechanisms for investment in infrastructure in IPs. 

Hai Duong provincial Party Committee Secretary Tran Duc Thang admitted limitations in the province's business and investment environment, saying that one of the major causes is the performance of state agencies and civil servants. 

He said the province will  continue with efforts to improve the business and investment environment, standing side by side with businesses, creating all the most favourable conditions for enterprises to operate in the locality.

To date, the province has 496 FDI projects with a total capital of over 9.2 billion USD from 26 countries and territories, ranking 4th in the Red River Delta region and 11th in the country.

Investors from Asian countries accounted for 90% of the total number of foreign investors; in which, China’s Hong Kong investors accounted for 40%; Japan 16.3%, and the Republic of Korea 15.4% of total registered investment capital.

FDI enterprises currently contribute over 60% of industrial production value of the province. The FDI sector is also a leader in export, international economic integration, creating many new products for locally produced goods and is a bright spot in contributing to the provincial budget every year, accounting for about 30% of the total budget revenue of the locality.

Regarding orientation to attract investment in the coming time, Hai Duong will prioritise projects using high and smart technology, biological industry, new materials, processing industry, manufacturing and supporting industries; projects with high added value, and eco-friendly projects.

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