After being heavily impacted by COVID-19 for two years, trade between Vietnam and the United Kingdom (UK) has recovered, reaching nearly 6.6 billion USD at the end of 2021, up 17 percent from the previous year, according to the Ministry of Industry and Trade.

Vietnam’s exports exceeded 5.7 billion USD, up 16.4 percent year-on-year, the ministry said, attributing the increase to the UK-Vietnam Free Trade Agreement (UKVFTA) which took effect in August 2020.

Sharp growth was seen in shipments of fruits and vegetables (67 percent), coffee (17 percent), pepper (49 percent), iron and steel (1,269 percent), and toys and sports equipment (19 percent). 

Meanwhile, imports from the UK rose by 23.6 percent to nearly 850 million USD. 

Vietnam exported more than 4.8 billion USD worth of goods to the UK in the first four months of 2022, with major currency earners including seafood, coffee, pepper, cashew nut, textile and garment, footwear, iron and steel, phones, computers, machinery, and toys and sports equipment.

Vietjet’s Q1 pre-tax profit leaps 113 percent year on year
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As the aviation and tourism industries have bounced back strongly, the Vietjet Aviation Joint Stock Company kicked off 2022 with great performance, posting a year-on-year surge of 113 percent in pre-tax profit in the first quarter.

The firm attributed the impressive performance to the rapid recovery of passenger transport and the ever-growing cargo business, which respectively grew by 76 percent and 94 percent in Q1.

In the time under review, Vietjet’s consolidated revenue reached 4.522 trillion VND (about 197 million USD) while the after-tax profit was 244 billion VND, up 12 percent and 98 percent from a year earlier, respectively.

According to its 2021 audited financial statements, the parent company earned 9.065 trillion VND in revenue with the audited post-tax profit increasing by 91 percent over the compiled financial statement thanks to gains in financial activities.

Vietnam, Japan partner to develop startups, innovative companies

A memorandum of understanding (MoU) on innovation cooperation has been signed, under which Japan will help Vietnam develop startups and innovative companies within the 8th phase of the Vietnam - Japan Joint Initiative.

The MoU was exchanged in Hanoi on May 1 by the Vietnam National Innovation Centre (NIC) under the Ministry of Planning and Investment (MPI), the Japanese Chamber of Commerce and Industry in Vietnam (JCCI), and the Japan External Trade Organisation (JETRO) in the presence of Prime Minister Pham Minh Chinh and his Japanese counterpart Kishida Fumio who was on an official visit to Vietnam.

Accordingly, JCCI and JETRO will assist with activities held by NIC to help develop startups and innovative companies of both countries.

Those activities will include giving advice on cooperation with Japanese businesses to Vietnamese firms; enhancing ties between the countries’ startups and innovative companies and investors; helping increase business connectivity, promote partnerships among firms in both countries, and establish startups and innovative companies; working together to organise events on innovation and startup; and exchanging relevant information.

NIC Director Vu Quoc Huy said Vietnam is forming an innovation network with the engagement of experts and intellectuals working in developed countries, including Japan, Australia, Germany, the US, and the Republic of Korea.

He noted in Japan, Vietnam has set up the Vietnam - Japan Open Innovation Network with thousands of members. This is part of the MPI-founded Vietnam Innovation Network, which aims to connect global intellectuals and experts to create and apply new technologies, products, business models, and management methods so as to help Vietnam achieve development targets.

At a recent seminar, JETRO Chairman Sasaki Nobuhiko said his organisation will boost dialogue and collaboration with the Vietnamese Ministry of Industry and Trade, Ministry of Information and Communications, and the MPI in terms of technological innovation, digital transformation, and supply chain diversification while helping further improve the business climate and reinforcing ties in technological innovation between the countries’ enterprises.

Cargo through seaports rises 3 percent in four months

Seaports in the country handled more than 236 million tonnes of cargo during the first four months of 2022, up 3 percent from the same period last year, according to the Vietnam Maritime Administration (VMA).

The volume of container cargo going through seaports reached about 8 million TEUs during the period, up 2 percent year-on-year. The figure includes 2.8 million TEUs of imports which saw a significant increase of 8 percent compared to a year earlier.

The VMA noted that in April alone, the volume of cargo through seaports totalled 59 million tonnes, up 3 percent. Container cargo hit some 2 million TEUs, a hike of 2 percent from 2020.

Several coastal provinces experiencing major growth in cargo volumes comprise Quang Ninh (11 percent), Quang Nam (19 percent), Dong Nai (8 percent), and Thanh Hoa (6 percent).

Ho Chi Minh City’s apartment supply drops in Q1

Ho Chi Minh City’s apartment market saw supply decline in the first quarter.

According to a report by Savills Vietnam, the primary market supply was 4,050 units, a drop of 48 percent quarter-on-quarter and 18 percent year-on-year.

There were no new projects.

Twenty apartment projects in the city temporarily stopped sales mostly to make price adjustments for the second quarter.

The number of transactions was 3,020, representing a 46 percent drop quarter-on-quarter, but a 45 percent rise year-on-year.

Apartments in suburban areas accounted for almost all of the transactions, a vast majority of them in Districts 9 and 12.

Grade C apartments accounted for 80 percent of transactions and led primary market supply with a 74 percent share. It was followed by grade B at 23 percent.

Grades A and B are seeing limited supply and high prices, and are having to compete with grade C apartments, whose quality standards are improving, according to the report.

Prices in the primary market moved up by 6 percent, with some projects beginning new phases increasing their prices by 10 percent.

Prices across all grades would continue to rise, the report said.

Those that halted sales to make price adjustments are expected to hike them by up to 15 percent due to past success.

Infrastructure needs upgrading to develop modern fisheries sector

Infrastructure at fishing ports has yet to receive the attention it needs in many localities, and this should be addressed quickly to develop a modern and responsible fisheries sector, officials have said.

According to the Prime Minister’s Decision 196/QD-TTg that approves planning for ports and storm shelters for fishing vessels by 2020 with a vision to 2030, Vietnam should have 125 fishing ports, including 35 first-class and 90 second-class.

However, after six years of implementing this decision, there are only three first-class ports, 54 second-class facilities, and 11 in the third tier, with a combined capacity of handling about 8,000 vessel arrivals per day and 1.6 million tonnes of seafood per year.

The Directorate of Fisheries said the construction of ports and storm shelters has been relatively slow and has yet to meet industrialisation and modernisation requirements, while existing facilities also lack qualified personnel. It blamed this fact partly on limited finances.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien held that problems at existing ports and shelters need to be tackled quickly to build a modern and responsible fisheries sector. This will also greatly help with the removal of the European Commission’s “yellow-card” warning against illegal, unreported, and unregulated (IUU) fishing in the industry.

The port system should be industrialised and modernised through upgrading and expanding existing ports, with a focus on the facilities serving the fishery logistics services, to improve food safety, origin traceability, and seafood handling capacity.

The Government is expected to earmark about 10 trillion VND (435 million USD) to upgrade fishing ports in the coming time. About half of the funding will be sourced from the country’s medium-term capital and the rest from ODA loans in the 2021 - 2025 period.

Planning for Van Phong EZ to be revised

Plans for the development of Van Phong Economic Zone (EZ) will be revised, according to a decision recently signed by Deputy Prime Minister Le Van Thanh.

Established in 2006 in the districts of Van Ninh and Ninh Hoa in the south-central coastal province of Khanh Hoa, Van Phong EZ covers 1,500sq.km, some 800sq.km of which are at sea.

The zone includes an international container port, an oil refinery and a point of transit for petroleum and petroleum products. It also caters for tourism, services, industry, aquaculture and other economic sectors.

Van Phong serves as an economic centre of Khanh Hoa, an investment magnet and a driving force for economic development in neighbouring areas.

The revision of the plan aims to transform Van Phong EZ into a hub of the south-central coastal region and the Central Highlands in the marine economy, hi-tech industries, innovation, vocational training and quality healthcare services, as well as a centre for international marine tourism and services for the development of new industries and smart cities.

Three more expressways to seek NA’s approval

The Ministry of Transport has been drafting a report seeking the National Assembly’s approval on the development of three expressway projects in the south-central and southern regions of Vietnam.

They are those connecting Khanh Hoa and Buon Ma Thuot; Bien Hoa and Vung Tau; and Chau Doc, Can Tho and Soc Trang.

Prime Minister Pham Minh Chinh has asked the ministry to make an additional section on funding sourced from local budgets for the projects, according to an official document from the Government’s Office. 

The document noted that the southern province of Dong Nai has made a written commitment to allocating funding from its own budget to develop the Bien Hoa - Vung Tau Expressway.

It also requested the ministry to consider the cabinet members’ feedback and thoroughly review and finalise pre-feasibility assessment reports of the projects and proposals to be made to the NA in accordance with current regulations.

E-commerce transactions boom during COVID-19 pandemic

Vietnam has emerged as an attractive destination for local and international investors in e-payment, e-commerce and online gaming services even during the COVID-19 pandemic, according to the Ministry of Investment and Planning.

At present, the total number of existing investment funds in the country increased by 60% compared to 2019 and 2020, mainly sourced from Singapore, the United States, and Japan.

Despite the multi-dimensional impact of the COVID-19 pandemic, last year saw a number of fields such as health care, education, and digital transformation record impressive growth of 1,016%, 526%, and 205%, respectively.

Ngoc Linh Ginseng successfully planted in Son La

Ngoc Linh ginseng is a precious medicinal plant considered a “national treasure” and grown in the two central provinces of Quang Nam and Kon Tum. Many people have tried to grow it in other provinces but failed. Some farmers in Son La, however, are an exception.

Under a canopy of old forest in Sam Ta village, Chieng Chung commune, in Mai Son district is a Ngoc Linh ginseng growing area with all trees ranging from two to seven years old. To form a Ngoc Linh ginseng plantation like this, it took Nguyen Chi Long, owner of the farm, more than 10 years.

His business has nearly 10,000 Ngoc Linh ginseng plants sown by seeds since 2019 and planted with seedlings that are now between two and seven years old.

According to a representative from the local agricultural department, the development of medicinal plants has great potential and promise benefits for locals.

In the immediate future, in Sam Ta village, Nguyen Chi Long’s business will provide free support to local households in planting the herb. It will also proceed to increase the area and replicate the model, helping ethnic minority people develop their economy and reduce poverty by growing medicinal plants in general and Ngoc Linh ginseng in particular.

Q1 unemployment rate drops: GSO

Unemployment in the first quarter of 2022 shrank by 130,000 to around 1.3 million from the previous quarter, reflecting a labour market post-pandemic recovery, according to the General Statistics Office (GSO).

The market is bouncing back on account of the “living with the virus” strategy and the relatively large COVID-19 vaccination coverage among  the people aged 18 and above, the GSO said.

The number of the people aged 15 and above in employment reached 50 million in Q1, up nearly 1 million quarter-on-quarter and over 130,000 year-on-year.

Monthly income averaged 6.4 million VND during the period, up 1 million VND quarter-on-quarter and 110,000 VND year-on-year. The highest rate is seen in the industry and construction sector, at 7.3 VND million.

The HCM City Centre of Forecasting Manpower Needs and Labour Market Information (FALMI) has projected the city will need 280,000 - 310,000 workhands this year if the COVID-19 is kept at bay.

Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung emphasised that reviving and developing the labour market remains one of the top priorities to support the economic recovery. His ministry plans to focus on maintaining worker numbers in industrial parks and export-processing zones.

Moody’s upgrades SeABank’s baseline credit assessment

Moody’s has upgraded the Baseline Credit Assessment for SeABank from B2 to B1, while also maintaining SeABank’s long-term deposit and issuer ratings at B1 for the fourth consecutive year, with a positive outlook.

The Moody’s assessment is a testament to the efforts of SeABank in business operations, asset quality, profitability, and capital in 2021 with pre-tax profit reaching $144.38 million, equal to 135 per cent of its 2021 budget.

Total assets increased 18 per cent compared to 2020, reaching $9.36 billion. Total non-interest income in 2021 reached $81.74 million, accounting for 26.3 per cent of total revenue.

Meanwhile, return on average assets and return on average equity are 1.33 per cent and 16.12 per cent respectively, while the non-performing loan (NPL) ratio stands at 1.65 per cent.

Foreign-led groups prep for listing

Some major foreign-invested corporations are making strides towards Vietnam-based listings as part of their global growth strategies, despite the country’s restricted legal access for those entities.

Thai food giant Charoen Pokphand Foods (CP) has greenlit its Vietnam subsidiary’s plans to list its shares on the Ho Chi Minh Stock Exchange (HSX) in a fresh document submitted to the Stock Exchange of Thailand.

The decision was made at CP’s board meeting last week. In case the approval is granted by relevant authorities, C.P. Vietnam would proceed to file an application for listing on the HSX.

CP directly holds 29.18 per cent shares of C.P. Vietnam. The remaining 70.82 per cent stakes are indirectly held by CP through its subsidiary CP Pokphand (CPP), which is currently listed on the Hong Kong Stock Exchange.

Another major FIE, Japanese retail giant AEON Group, also unveiled its ambition to file for an IPO in Vietnam last November. AEON has ramped up its presence in Vietnam since 2014 and has spent a total of $1.18 billion in the country.

Furusawa Yasuyuki, general director of AEON Vietnam, told VIR, “AEON Group considers Vietnam as the biggest key market after Japan to develop business activities and will take advantage of developing here in the future for expansion and growth. This is in line with AEON Group’s medium and long-term approach, with a vision to 2025.”

He also further mentioned that being listed on the Vietnamese stock market is one of AEON’s long-term goals since the special emphasis is on empowering the Vietnamese market to prosper.

In 2022, this plan has not yet been realised, and it will not be until then. AEON is now in the preparation stage to ensure full compliance with the Vietnamese legal framework. Given the market’s scarcity of listed FIEs, Yasuyuki and his team would need to work closely with the management agency to successfully execute this strategic plan.

There are only eight FIEs which have been listed so far, and three have had their listings cancelled owing to their bleak operations. A study issued at the end of last year by the SSC revealed that seven out of 10 FIEs listed and registered for regular transactions had generated profits over the course of 2016-2019, while the rest recorded losses.

For instance, Royal International Group is still a loss-making company. According to its latest financial report, the company’s pre-tax loss in 2021 reached $4.48 million, the third year in a row. For 2022, the company predicts losses of around $1.58 million.

Nguyen Thanh Ha, managing partner of SBLAW believed that one of the rigid requirements for companies listed on HSX is to disclose the accurate amount of debts as a step towards enhancing transparency, particularly for FIEs at risk of exploiting legal loopholes in tax policies.

Vietnam-Japan trade up 11% in Q1

Two-way trade between Vietnam and Japan reached US$11.2 billion between January and March, up 11% year-on-year, according to statistics from the General Department of Vietnam Customs.
The country spent US$5.8 billion on imports from Japan and exported products worth US$5.4 billion to the latter.

Vietnam’s main exports to Japan during the three-month period included vehicles and parts; machinery, equipment and accessories; computers, electronic products and accessories; seafood and woodwork.

Meanwhile, Vietnam mainly imported computers, electronic products and accessories; iron and steel and plastic materials from Japan.

Last year, two-way trade between Vietnam and Japan amounted to US$42.7 billion, with Vietnamese exports totaling US$20 billion, up 4.4% against the previous year.

Central Highlands province calls for VND68 trillion in 22 projects

The Central Highlands province of Dak Nong has said it will need nearly VND68 trillion (more than US$2.9 billion) for 22 projects this year.

The 22 projects belong to the agriculture and industrial production sectors and those to develop infrastructure for industrial parks and clusters, Thanh Nien Online newspaper reported.

The trade, tourism and urban infrastructure sectors have the highest number of projects, at 14.

Among the projects in which Dak Nong is calling for investment, there are some urban development projects with a high investment in Gia Nghia City, such as the Dak Rtik Fire and Water Urban Area project which will cover over 752 hectares of land and require an estimated VND53 trillion.

In addition, the Nghia Phu Green Valley and Nghia Phu Gateway Urban Area and Lieng Nung waterfall ecotourim site projects need a respective investment of around VND1.6 trillion, VND8.6 trillion and VND700 billion.

Dak Nong is planning large projects such as the VND500 billion Ho Truc ecotourism site and a VND750 billion urban area.

Over the years, many major businesses have sought investment opportunities in Dak Nong, including Hoa Phat Group. The group proposed developing aluminum and ore processing factories with an annual capacity of two and five million tons, respectively. They will be developed in Dak Song District.

Moreover, the group is working on an aluminum electrolysis factory with an annual capacity of 0.5 million tons and the 1,500-megawatt Hoa Phat wind power plant in Dak Song and Tuy Duc districts.

All of these projects would cost over US$4.3 billion.

MoF rejects proposed tax exemption and reduction for airlines

The Ministry of Finance (MoF) has turned down a proposal on tax exemption and reduction for enterprises in the aviation industry, saying these businesses have earned multiple benefits from the Government’s incentive policies. Moreover, such moves, if any, fall within the authority of the National Assembly.

Previously, some airlines had petitioned the Government for exemption of the corporate income tax (CIT) in 2022 and reduction of value-added tax (VAT) to 5%, besides cutting the jet fuel import tariff from 7% to zero. This proposal was made in the context that the aviation industry is facing difficulties due to increasing fuel prices,  while enterprises are still reeling from heavy losses due to the pandemic outbreak in the past two years, VNExpress reported.

In its recent response to the proposal, the Ministry of Finance said that CIT and VAT are applied based on the Law on Corporate Income Tax and the Law on Value-Added Tax. Therefore, the proposal to reduce VAT from 10% to 5% and exempt CIT must be approved by the National Assembly, according to the ministry.

Regarding VAT, aviation businesses are benefiting from the policy of reducing the tax rate by 2 percentage points. At the same time, MoF has submitted to the Government a draft decree extending the deadline for paying taxes and land rents for a number of businesses, including those in the aviation industry.

In addition, the aviation industry is also benefiting a lot from the Government’s recent policies on taxes, fees, and land rentals that are aimed at supporting people and businesses adversely affected by Covid-19.

Work starts on four projects at Van Don EZ

Four projects worth a total of nearly VND10 trillion (US$430 million) got off the ground at the Van Don Economic Zone in Quang Ninh Province on April 30, Vietnam’s Reunification Day.

They are Ao Tien-Cat Linh Van Don luxury hotel and apartment complex, Crystal Holidays Harbour Van Don resort and entertainment complex, the Sonasea Van Don Harbor City hotel and resort complex, and Van Don industrial complex.

Quang Ninh Province also gave approval for a premium furniture manufacturing plant at the Van Don Economic Zone, Thanh Nien newspaper reported.

The VND1,000 billion project of Van Don Sun JSC covers 34.53 hectares. The plant’s first phase is expected to go into operation in the third quarter of 2023 and it will be fully completed in the fourth quarter of 2024.

Export of agricultural, aquatic products make a sharp recovery

After a temporary halt of operation due to the Covid-19 crisis, agricultural and aquatic products export businesses have worked at their full capacity to meet customers’ orders from the beginning of this year.

Additionally, the Ministry of Industry and Trade has frequently organized trade promotional activities in major markets of Europe, Japan, and Africa to help enterprises approach different markets.

According to the Food and Agriculture Organization (FAO), the world is facing a latent food crisis with an increase in prices, food supply chain disruption, and millions of people who are facing a critical lack of food.

Agricultural and aquatic products export businesses have worked hard to develop their full capacity to complete the contracts that have been signed for the second and third quarters of 2022. In the first quarter, exports of agricultural products hit a surplus of nearly US$5.5 billion, up 12.5 percent compared to the same period last year.

In the rice sector, Vietnam's largest rice-consuming markets, including the Philippines and Malaysia have recently promoted purchasing when crops are ready for harvest in the field and balance their quantities. It creates positive effects on Vietnamese rice export, said Marketing Director of Vrice Group Company Limited Phan Van Co.

Indian media hails Vietnam’s tourism development potential

 The Times of India has published an article titled ‘From a quiet nation to one of the world's best tourist destinations’, which hails the significant tourism development in Vietnam.

The Indian media outlet gives major credit to celebrity chef and author Anthony Bourdain. The world was inspired by the travelling chef and became curious about the various tastes and sights on offer in the country.

According to the Times of India, Bourdain always felt a special connection with Vietnam and first showcased the country in his 2002's show A Cook’s Tour.

Little did the world know that the door opened by Bourdain would come as a blessing in disguise for Vietnam. Over the past two decades since the famous chef made his first trip, the tranquil seaside country would undergo vast amounts of development, bringing with it a stream of interested travelers curious to learn what Vietnam has to offer.

The website revealed that Bourdain’s love for Pho (noodles) contributed to making a positive impression of Vietnamese cuisine on foreign tourists.

Thanks to various food showcased on television, YouTube, and other social media platforms, Goi cuon (rice paper rolls), Pho, and Banh mi (Vietnamese sandwich) have become popular choices of food while eating out.

The paper notes that in early 2000s, local businesses got the idea that travelers from the West would come and explore the country. To make it more accessible and welcoming, places like Ho Chi Minh City and Hanoi started to open up backpacker-friendly options for this small group of international travelers. 

Other small towns and cities began to follow suit and started to make their locations traveler-friendly. As a result, air access was made easier with the opening of airports in places like Da Nang and Nha Trang. These scenic sites were now made accessible to the world, and had beautiful locations and interesting food on offer to visitors.

The Time of India stressed that while western travelers sought adventure off-the-beaten track, Asian travelers noticed the changing trends. 

Suitable local rice prices help to boost exports

Vietnam offers advantages when its rice is traded in the international market thanks to its high-quality and reasonable prices, according to the Vietnam Food Association (VFA).

On April 30, a tonne of 5% broken rice of Vietnam was sold for US$415, while the price of the similar rice of Thailand was US$430 per tonne.

Similarly, the prices of 25% and 100% broken rice of Vietnam stood at US$395 and US$360 per tonne, respectively, US$28 and US$45 lower than those of the same Thai products.

These reasonable prices have created advantage for Vietnamese rice exports as global food demand increases amid a shortage of food supplies due to climate change, the COVID-19 pandemic, and the Russia – Ukraine conflict.

According to details given by the VFA, import demands from traditional Vietnamese markets, such as the Philippines, Malaysia, the United States, Africa, and the Republic of Korea, have started to rise.

Most notably, rice exports to Europe are also expected to surge sharply this year, largely thanks to the 2020 enforcement of the EU-Vietnam Free Trade Agreement (EVFTA). Under the terms of the EVFTA, the bloc will grant Vietnam an annual export quota of 80,000 tonnes of rice and fully liberalise broken rice.

The VFA predicted that Vietnam would export 6 to 6.2 million tonnes of rice this year, roughly equivalent to the figures seen in 2020 and 2021. Although the export volume is not anticipated to create a breakthrough, the export value is increasing day by day, elevating the position of Vietnamese rice in the world market.

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