The central city of Da Nang targets to become an attractive logistics centre of the central key economic region by 2030, and the key gateway of the East-West Economic Corridor and an important link of the Asia-Pacific transport corridor by 2050. 

The target is set in a project on developing logistics services in the city in association with the central key economic region and the East-West Economic Corridor for the 2021-2030 period, with a vision to 2050, which has just been approved by the municipal People’s Committee.

Under the plan, the logistics service industry is expected to contribute 11-12% of the city’s gross regional domestic product by 2030 and up to 15.5% by 2050.

Regarding the potential of logistics development in Da Nang, Duong Tien Lam, head of the representative office of the Vietnam Logistics Business Association (VLA) in Da Nang, said that the central city has opportunities to attract cargo through this economic corridor as it boasts an international container port and international airport and a location at the beginning of the East-West Economic Corridor.

However, to unlock its potential, it is necessary for Da Nang to devise specific policies to increase the volume of goods in circulation including incentives for investment in for-export production and logistics facilities.

Director of the municipal Department of Industry and Trade Le Thi Kim Phuong said that from now until 2030, the city has put forth solutions to research and issue new mechanisms and policies to facilitate container transportation activities via Da Nang seaport.

It will also provide support relating to land rent for logistics centre investment projects to encourage enterprises to invest in infrastructure construction, she noted.

To attract investment in the field of logistics, Da Nang city will study the formation of a Free Trade Zone (FTZ) with Lien Chieu Seaport, Da Nang International Airport and Hi-tech Park being its centre.  The FTZ will offer incentives for investors such as exemption/reduction of taxes and fees; simplify the procedures for issuing and extending work visas and work permits.

Da Nang will boost trade and investment promotion in the south-central provinces of Laos; strengthen linkages with logistics associations and enterprises in the Association of Southeast Asian Nations (ASEAN) countries and around the world.

There are 1,056 enterprises operating in the field of logistics in Da Nang, including 681 engaging in providing road freight transport services; 16 offering services related to sea transport and 30 enterprises providing agency, forwarding and shipping services.

Exhibition honours simple, ordinary but noble figures

Over 200 documents, articles and objects featuring 133 outstanding collectives and individuals in all fields are being showcased at an exhibition opened at Ho Chi Minh Museum in Hanoi on May 17.

The event is jointly organised by the Party Central Committee's Commission for Information and Education, and the Ministry of Culture, Sports and Tourism. It is part of activities marking the 133th birthday anniversary of President Ho Chi Minh (May 19, 1890-2023) and the 2-year implementation of the Political Bureau’s Conclusion 01-KL/TW and Directive 05-CT/TW on enhancing the studying and following of President Ho Chi Minh’s thought, morality and lifestyle.

Those introduced at the exhibition are outstanding examples of patriotic emulation movements in the fields of economy, socio-culture, party building, national defence and security.

Addressing the opening ceremony, Vu Manh Ha, Director of the Ho Chi Minh Museum, said each photo and article represents a touching story about collectives and ordinary people who have overcome circumstances, dared to think and dared to do and wholeheartedly devoted themselves to benefitting the community.

The two-part exhibition is expected to contribute to honouring and encouraging the “good people, good deeds” examples around the country as well as making the studying and following of President Ho Chi Minh’s thought, morality and lifestyle become regular affairs of the entire Party, people and army within the cause of national construction and defence.

The exhibition will run until the end of August and then will be displayed in a number of localities across the country.

HCM City to host export forum and trade fair late May

The Ho Chi Minh City Export Forum and Trade Fair 2023 will take place at the Saigon Exhibition and Convention Centre (SECC) from May 25-28, the municipal Department of Industry and Trade announced at a press conference on May 17.  

Jointly hosted by the municipal Department of Industry and Trade and the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, the event aims to strengthen trade promotion and help enterprises expand markets.

The event is expected to feature 250 pavilions of Vietnamese enterprises from the business associations nationwide, which will focus on introducing key export products and services in various fields. |

According to Bui Ta Hoang Vu, Director of the municipal Department of Industry and Trade, the city's industry and trade sector continues to promote industrial production, trade, and green export to create long-term growth momentum, thus meeting the trend of green consumption in the world.

The HCM City Export Forum and Trade Fair 2023 is one of the activities to concretise this goal, he stressed.

The event is a pioneering activity, which is expected to become the most exciting multi-industry export fair in Vietnam with the message "green connectivity - green export".

The fair will serve as a venue for businesses and state agencies to discuss solutions to address policy difficulties, thus helping businesses improve their "green" capacity in international trade production and supply chains. It is also expected to create trade connections between prestigious Vietnamese exporters, foreign-invested businesses, and international partners.

The event will welcome buying delegations from the US, Taiwan (China), the Republic of Korea, Cambodia, and India which have demand for agricultural products, food and beverages, textiles, handicrafts, and rubber and plastic products.

In addition, supporting activities to find new export partners will be attended by representatives from supermarkets, distributors, and e-commerce platforms. These programmes aim to help increase orders and significantly expand markets for local exporters.

As part of the event, forums on strengthening linkages towards green exports will be held, updating green consumption trends of major import markets, and promoting a green export strategy to help increase competitive advantages for the business community in improving the value of the order and expanding markets.

Vingroup sets record revenue this year

Despite uncertainties in the global economy, Vingroup will continue focusing on winning over international markets this year, the company said at the 2023 Annual General Meeting of Shareholders on May 17. 

VinFast, a Vingroup subsidiary that specialises in the design and production of electric vehicles (EVs), and Black Spade Acquisition Co. announced a merger on May 12.

The occasion represents a significant step toward VinFast's listing on the US stock market and presents Vingroup and VinFast with new options for international financing.

In addition, VinFast continues to focus on the production of launched EV models for delivery to customers and prepares for the manufacturing of new models, which are the VF 6 and VF 7, while ramping up the progress of setting up a plant in North Carolina.

In 2023, the Board of Directors of Vingroup targets a net revenue of 190 trillion VND (8.1 billion USD), a gain of 87% year-on-year. If it is reached, this will be the highest net revenue since the company started operations. The company's profit after tax is forecast to slightly decrease by 44 billion VND from last year’s figure to 2 trillion VND. 

For its fund-raising plan, Vingroup expects to issue a maximum of 5 trillion VND in bonds in one or many offerings. They are convertible bonds with a maximum coupon rate of 15% a year. 

The term of a bond ranges from 12 months to 60 months. Vingroup will offer private placement or public placement, depending on the actual situation.

Last year, it raised nearly 1.1 billion USD from international markets, demonstrating the company's reputation globally.

Regarding the plan to use accumulated profit after tax as of the end of 2022, Vingroup proposes to distribute 5 billion VND to the reserve fund according to the provisions of the group's charter, and all accumulated profits will be kept for operating activities.

Strategic investors’ engagement helps promote Vietnam’s tourism growth

The investment of domestic and foreign investors in tourism infrastructure, especially resort real estates, poor rural areas have been turned into enchanted destinations for tourists, making Vietnam more attractive to investors.

Boasting 3,260km of coastline with about 400 beaches and thousands of natural landscapes and relic sites across the country, Vietnam is an ideal place for strategic investors such as SunGroup, Vingroup, FLC and VinaCapital.

Many modern hotel chains meeting international standards have been built, mostly in popular tourist attractions in Hanoi, Da Nang, Nha Trang, Phu Quoc, Ho Chi Minh City and Ha Long.

Meanwhile, many reputable international brands such as Accor, Mariott, Hyatte, IHG, Four Seasons, and Archipelago have marked their presence in Vietnam, contributing to enhancing the governance capacity and tourism service quality of the country.

According to Dr. Phan Huu Thang, former Director of the Foreign Investment Agency under the Ministry of Planning and Investment, foreign direct investment (FDI) in tourism and resort real estate has been helpful for Vietnam right from the first years of opening and integration, with the development of a system of high-end resorts and hotels.

In the recent 20 years, investment in tourism accommodation has boomed. According to the Vietnam National Administration of Tourism (VNAT), the number of accommodations in Vietnam increased from 12,500 facilities in 2010 to 33,330 in 2022, with 667,000 rooms. As of the end of 2022, Vietnam had 215 five-star hotels with 72,000 rooms, and 334 four-star hotels with 45,000 rooms.

Statistics from the Vietnam Real Estate Association (VNREA), the country is home to 239 tourism real estate projects with a total value of 681.8 trillion VND, or about 30 billion USD.

Su Ngoc Khuong, Senior Director of Savills Vietnam, said that despite impacts of the COVID-19 pandemic, the tourism real estate in Vietnam is still an attractive segment for investor, where they can find previous opportunities to join the Vietnamese market.

In reality, amid difficult situation of the real estate sector, foreign investors, especially those from the Republic of Korea, Japan, Singapore, and Hong Kong (China), have still shown great attention to resort real estate, especially in the south central coastal region. Many big names such as Mandarin Oriental, JW Marriott, M Gallery, Le Meridien, Wink Hotels and The Ascott Limited are likely to launch their projects in the region.

According to CBRE, Da Nang drew additional 10 projects as of the end of 2022. Binh Thuan expects about more than 5,000 vacation villas by 2025, while Phu Yen will provide more 72 villas and hotel rooms to the market by 2026. Experts held that in 2024, the accommodation occupation rate will recover to the pre-pandemic level of 63%.

According to Ha Van Sieu, Vice Director of the Vietnam National Administration of Tourism (VNAT), this year, the tourism sector aims to serve about 8 million foreign visitors and 102 million domestic tourists, earning about 650 trillion VND (27.71 billion USD).

The sector plans to announce the Vietnam tourism planning for the 2021-2030 period with a vision to 2025 right after it is approved. It has implemented a marketing strategy until 2030, along with a project to strengthen the application of new technologies in developing smart tourism and turning tourism into a spearhead economic sector of the country. A community-based tourism project is also underway, said Sieu.

VinFast to expand into Southeast Asia electric mobility market

At the Future Mobility Asian 2023 summit and exhibition taking place from May 17-19 in Bangkok, Vietnam's automaker VinFast on May 17 revealed its intention to expand into the Southeast Asia electric mobility market with its full range of electric vehicles (EVs), planning to introduce its first four right-hand drive models.

The Future Mobility Asia 2023 marked VinFast's official debut of its brand and products in Asia, representing a significant milestone in the company's regional market strategy and the next phase of its global development.

At the event, VinFast is showcasing its three EV models of VF e34, VF 8, and VF 9, and offering test drives. In addition to targeting customers, VinFast is actively seeking new partners to expand its market and promote sustainable mobility solutions in the region.

VinFast also reveals its intention to expand into the Southeast Asia market, in addition to its focus on key markets including North America and Europe. The company also intends to introduce right-hand versions of its EV models - VF 5, VF 6, VF 7, and VF e34 - tailored to meet market's specific features and demands.

Le Thi Thu Thuy, Vice Chairwoman of VinFast's parent company Vingroup and Chairwoman of VinFast, said that the expansion is part of VinFast's global development strategy. The company has set a target to provide ASEAN countries with smart and safe mobility solutions, delivering excellent experiences and ultimately promoting a greener future for all.

VinFast offers a comprehensive lineup with models ranging from the A to E segment, featuring VF e34, VF 5, VF 6, VF 7, VF 8, and VF 9. In addition to its car lineup, VinFast provides a range of eight e-scooter models designed to target from mass to premium segments, which include Klara, Impes, Ludo, Tempest, Evo200, Feliz, Vento, and Theon. Furthermore, VinFast's ecosystem extends to e-buses, advanced battery and charging solutions, all within the ecosystem of Vingroup.

Countries in Southeast Asia are potential markets for EV consumption, offering significant room for development and fast-paced growth. With favourable geographical locations and similar business environments, the Southeast Asian market will be an effective catalyst for promoting the comprehensive development of VinFast's product and service ecosystem and that of Vingroup in the future.

Cashew exports in April hit record high

Vietnam exported 51,400 tonnes of cashew worth US$305.48 million throughout April, representing a rise of 5.6% in volume and 5.2% in value compared to April last year and reaching the highest level since October 2021, according to figures released by the General Department of Vietnam Customs.      

During the course of the four-month period, the country shipped 162,400 tonnes of cashew worth US$952.5 million, marking an increase of 6.1% in volume and 4.5% in value against the same period from last year.

April alone witnessed the average export price of Vietnamese cashew nuts reach US$5,944 per tonne, the highest level since October 2022, while the four-month export value stood at US$5,865 per tonne, a drop of 1.5% compared to last year's corresponding period. 

Cashew nut exports during the opening four months of the year to the United States, the Netherlands, Australia, Canada, and Germany saw a downward trajectory, while exports to markets such as China, the United Arab Emirates, the UK, and Saudi Arabia experienced an upward trend.

According to statistics from the China Customs, Chinese cashew imports in the first quarter of the year reached 8,420 tonnes worth US$33.88 million, up 45% in volume but down 0.6% in value on-year.

Of the figure, China imported approximately 4,720 tonnes of cashew from the Vietnamese market, worth US$27.72 million, up 20.6% in volume and 7.2% in value.

The market share of Vietnamese cashew nuts as part of China’s total imports fell from 67.41% in the first quarter of 2022 to 56.05% in the first quarter of the year.

Most notably, the northern neighbour has shifted to importing cashews from African markets such as Benin, Ivory Coast, Togo, and Tanzania.

Khanh Hoa promotes tourism in Chinese market

The southcentral province of Khanh Hoa has organised a roadshow programme aimed at elevating the image of Nha Trang - Khanh Hoa to Chinese tourists from May 14 to May 18.

The event has attracted the participation of more than 120 travel firms from Sichuan province, as well as over 150 tour operators from Shanghai.

These represent two key important tourist markets which boasted the largest number of Chinese tourists to Khanh Hoa before the COVID-19 pandemic.

At the launching ceremony, Nguyen Thi Le Thanh, director of Khanh Hoa Tourism Department, expressed hope that Chinese travel firms will stay updated on information about destinations, tourism products, and services, as well as strengthening connectivity with local businesses in a bid to design attractive tours to bring Chinese tourists to Nha Trang - Khanh Hoa and vice versa.

A number of new tourism products and stimulus schemes for the Chinese tourist market have also been launched as part of the occasion.

Furthermore, representatives of travel firms from Khanh Hoa province held a working session alongside a number of tourism associations and large tourism groups from Sichuan province and Shanghai city, as well as signing a memorandums of understanding (MoU) on tourism promotion.

Before the outbreak of the COVID-19 pandemic, the northern neighbor represented the country’s largest tourism market.

In 2019, the nation welcomed a total of 5.8 million Chinese tourists, accounting for one-third of the total number of international tourists. Of the figure, Khanh Hoa received more than 2.5 million Chinese travelers.

Nghi Son company exports 31,500 tonnes of cement products to the US

Nghi Son Cement Corporation (NSCC) has exported a total of 31,500 tonnes of cement products to the United States.

The first shipment to the challenging market helped to affirm the company’s export capacity, thus meeting the highest technical requirements set by the US. At Nghi Son’s cement factory, all stages of production and product quality control are supervised by Japanese experts.

First established in 1995, NSCC is a joint venture between Vietnam Cement Corporation (Vicem) and two Japanese multinational corporations, namely Taiheiyo Cement (TCC) and Mitsubishi Materials (MMC).

From mid-April, 2022, the Vietnamese construction industry experienced gloomy days that directly impacted the consumption of building material market, including cement.

According to experts, not only domestic cement consumption face numerous difficulties, but Vietnamese cement exports have also "fallen" to record lows during the past many years. Therefore, in that context, the NSCC’s export of cement products to the US market represents a hugely positive sign.

Vietnam Restaurant and Bar Week 2023 slated for late May

More than 100 chefs and bartenders across the country will gather at Vietnam Restaurant and Bar Week 2023 scheduled to run from May 20 to June 4 in Hanoi, Ho Chi Minh City, and Da Nang.

The week is part of Flavours Vietnam 2023, the fourth annual gastronomy series and the most flavourful celebration of Vietnamese cuisine in the country.

This year the event has been upgraded to feature an extension of two weeks, an expansion to include the beach city of Da Nang, and an increase in the number of restaurants and bars. It is expected to be an exciting and priceless culinary exploration that taps into each touch point whilst paying tribute to the local food culture.

The week draws the participation of famous chefs from 42 restaurants nationwide who are expected to help diners discover the delicious cuisine of all three of the country’s regions.

Furthermore, customers will have the chance to sample a range of innovative mixes from leading bartenders in 71 unique venues nationwide.

Flavours Vietnam 2023 is jointly organised by Mastercard International Inc., a provider of payment processing products worldwide and Vietcetera Company Limited, a provider of a digital platform intended to connect Vietnam with the world.

Themed “Taking Vietnam’s Food & Beverage industry to the next level”, the fourth and largest edition of Flavours Vietnam features a range of enticing events, such as the Vietnam Food & Beverage Conference, Banh My Awards, Vietnam Restaurant and Bar Week, and Rising Chefs Challenge.

Trade exchange between Vietnamese and Ulsan enterprises set for May 25

Enterprises from Ulsan of the Republic of Korea (RoK) and Vietnamese enterprises will attend a trade meeting in Hanoi on May 25 to sound out business opportunities and seek partnerships.

The event to be held by the Korea Trade-Investment Promotion Agency (KOTRA) will see Korean firms introduce diverse products including cosmetics, chemicals, industrial supplies, equipment, and fertilizers.

The trade exchange is expected to give Vietnamese enterprises the chance to seek reputable Korean manufacturers and suppliers.

KOTRA reported that it has so far organized more than 40 meetings according to the needs of the two countries’ businesses.

Ulsan is located in the southeast of the RoK and is their seventh largest city, with a population of more than 1.1 million.

Ulsan Industrial Park is one of the largest industrial production areas in the RoK. The sectors of shipbuilding, oil refining, automobile manufacturing, agricultural production, and cosmetics have developed rapidly in the Korean city.

Industrial real estate picture contrasting from north to south

While industrial real estate in the north is recording a strong increase in supply, rent, and occupancy rates, the south of the country is enduring reduced rental demand and legislation obstacles.

In the first quarter, the northern industrial market welcomed a new supply of about 116 hectares for Tam Duong I Industrial Zone (IZ) located in northern Vinh Phuc province. Meanwhile, no new warehouse supply was recorded in this quarter.

According to Cushman & Wakefield (C&W), currently, many IZ investors are speeding up construction to be able to hand over land to customers. By the end of 2023, it is expected that the market will receive an additional supply of 670ha of industrial land.

The future supply of ready-built factories (RBFs) and ready-built warehouses (RBWs) will continue to be abundant towards 2025, with 1.2 million sq.m of factories and 700,000 sq.m of warehouses entering the market.

Thanks to its favourable location, improved infrastructure, and connectivity, the northern key economic region continues to receive a wave of investment, especially from the electronics and automobile industries. Among the outstanding manufacturers are Goertek, Autoliv, and Xiamen Sunrise Group.

C&W forecast that in the northern market, the demand for industrial real estate will still be maintained thanks to the expansion of manufacturers out of China, but is likely to slow down soon enough. Furthermore, industrial land rents will continue to increase. The RBW rental rates may continue to rise, but at a slower pace depending on market developments.

In the south, meanwhile, the industrial real estate market did not record any new IZ supply in Q1 due to lengthy legal and procedure process. A supply of 82,000 sq.m of factories and 51,500 sq.m of RBW were reported. New supply may slow down in 2023, at nearly 1.1 million sq.m for both RBWs and RBFs, C&W said.

In the short term, the supply of IZ land will continue to be limited, while the supply will continue to increase, but at a slower rate than 2022.

Dong Nai province, a location with a strong track record for manufacturers, also faces difficulties in industrial real estate development.

According to Nguyen Huu Nguyen, director of Dong Nai Department of Planning and Investment, many groups are asking for large-scale land to build a production base, but such land has been exhausted.

Currently, Dong Nai has plans to set up another nine IZs alongside the 31 that are already in operation.

Meanwhile, weak infrastructure, planning quality, and ineffective mobilisation of capital are some of the limitations for attracting more investors in to IZs and economic zones in Ca Mau province.

According to the Management Board of Ca Mau Economic Zone, the quality of planning has not been met in the long term due to the fluctuating socioeconomic situation. The province is facing difficulties in mobilising capital to build infrastructure and mostly depends on the budget distribution from the government.

Besides that, the zones have not been able to mobilise other capital sources, such as government bonds and official development assistance. Other formats such as public-private partnerships have not been promoted.

In addition, at present, Ca Mau’s IZs are offering general preferential policies found in the rest of the country, which is deemed inadequate to entice potential investors.

Ca Mau province has three established IZs with a total area of about 662ha. Over the past few years, about 200 delegations of domestic and foreign investors have come to explore opportunities in the province. Among those were the Wealth Power Vietnam Group, Thien Phuc Industrial Park Investment, Tuan Chau Group, B.Grimm Power of Thailand, Infrastructure Investment and Transport JSC, Yat Fung International Holdings, Hong Ha Petroleum, Minh Phu Seafood Corporation, and Indochina International Infrastructure Group.

However, the amount of available land in this province is minimal and cannot meet their demand, authorities said.

According to C&W, in the first months of 2023, challenges from the global economy caused the amount of registered foreign capital and export orders to the south region to decrease. Global economic uncertainties, weakening consumption, and reduced export orders have been affecting the demand for industrial real estate rental in the short term.

Lenders adjust as real estate giants revive ventures

Some banks are strategically adapting lending practices and risk management approaches to address the complexities and risks associated with real estate-related credit, particularly for large-scale property developers.

As of April 25, the credit debt for the real estate industry has experienced a notable increase of 3.51 per cent compared to the end of 2022, according to the State Bank of Vietnam (SBV). This growth surpasses the overall credit expansion rate of the entire banking system, which stands at 2.75 per cent.

One key aspect that has posed significant challenges in the realm of real estate lending, as highlighted by chairman of BIDV’s Board of Directors, Phan Duc Tu, is the complex web of legal issues surrounding the market. Recently, these legal complexities have been the primary impediment to smooth operations and sustained growth in the sector.

At BIDV’s AGM last month, Tu stated that BIDV has conducted extensive consultations with 15 prominent developers, revealing that more than 70 per cent encountered difficulties attributed to legal intricacies. “Even hindrances concerning capital within the banking system are intricately intertwined with prevailing legal concerns,” Tu said.

Currently, loans related to real estate ventures account for approximately 2 per cent of BIDV’s total outstanding debt, while loans directed towards aspiring homeowners constitute a considerable 15 per cent.

Tu noted that BIDV’s selection process for funding allocation is meticulous and strategic. “We prioritise real estate enterprises that possess impeccable legal credentials, exhibit robust project execution capabilities, and boast a strong presence in the market. Such stringent criteria serve as the bedrock for the bank’s decision-making process when considering loan disbursement,” he said.

Luu Trung Thai, chairman of MB’s Board of Directors, highlights that the challenges faced by enterprises such as Novaland and Hung Thinh are not exclusive to the real estate industry but pervade the entire sector. “The most significant current issue lies in legal obstacles rather than financial constraints,” Thai stated.

Novaland is poised to revive several ventures. Last week, it held a signing event for implementation of the NovaWorld Ho Tram project, encompassing the Habana Island and Wonderland phases.

Last week it also embarked on the reactivation of NovaWorld Phan Thiet and arranged a sponsor signing ceremony with its credit partner, MB Bank.

MB, along with numerous other financial institutions, has reinstated the disbursement of funds to support Novaland’s projects following a prolonged hiatus prompted by concerns over the conglomerate’s financial standing.

Elsewhere, Ho Hung Anh, chairman of Techcombank’s Board of Directors, acknowledged the bank’s relatively high proportion of real estate lending. However, he clarified that this primarily consists of loans extended to individuals seeking to purchase homes.

Meanwhile, at TPBank’s AGM, shareholders queried the leadership regarding a recent credit agreement with Novaland’s project, The Grand Manhattan, located in District 1 of Ho Chi Minh City. According to the agreement, TPBank provided financial support to ensure the project’s continued construction after a temporary halt, as well as offering credit facilities to homebuyers.

The bank’s CEO, Nguyen Hung, explained that this particular project is among seven initiatives in Ho Chi Minh City that are currently focused on resolving legal complications.

Meanwhile, around 60 per cent of corporate bonds that VPBank has invested in are intricately tied to real estate businesses.

The bank’s commitment to prudent risk management is exemplified by the fact that no individual client accounts for more than 1 per cent of the bank’s aggregate debt. In the case of Novaland, VPBank currently oversees the funds of customers who have purchased properties from Novaland and collaborates with relevant authorities to alleviate difficulties faced by the corporation.

The latest report by VNDirect Securities indicated that Q1 2023 has revealed emerging challenges in the banking sector’s financial performance. In the context of slowing credit expansion, commercial banks with a significant proportion of loans to large corporate customers, such as HDBank, Techcombank, VPBank, and TPBank, have exhibited better-than-average credit growth.

Conversely, banks’ lending to individuals has experienced a decrease or slower growth in credit, as observed in the cases of ACB, VIB, and Sacombank, compared to the start of the year.

According to the SBV, the NPL ratio for the entire banking sector increased to 2.9 per cent by the end of Q1, compared to 2 per cent at the end of 2022. Most banks have reported an increase in NPLs and a decrease in credit risk provision ratios compared to the previous quarter.

Specific mechanisms, policies needed to drive HCM City’s growth

HCM City needs to be supported by specific mechanisms and policies that are strong enough to remove bottlenecks faced by the city and enable it to create breakthrough developments, experts said.

Over the past decades, the city has always maintained its role as the country’s economic locomotive, but its economic growth has slowed down in recent years.

Its gross regional domestic product (GRDP) grew just 0.7 per cent in the first quarter of the year, much lower than the national average. The city’s economy will continue to face many unpredictable difficulties and challenges in the remaining quarters of the year, they said.

Speaking at the seminar ‘Removing obstacles to drive HCM City’s economic development' held in HCM City on Tuesday, Assoc. Prof. Dr. Tran Dinh Thien, former director of the Vietnam Institute of Economics, said HCM City shouldered the country’s economy, and only when the locomotive grows strongly can it 'pull the whole train up'.

Despite its economic growth slowing down, the city still has abundant internal resources. So creating new breakthroughs for the city is needed to boost its development, he said.

Dr. Tran Du Lich, a member of the National Advisory Council for Financial and Monetary Policies, said macro policy that stimulates demand in the domestic market is needed to help the economy recover soon.

The Government should continue to reduce the value added tax to 5-6 per cent. The current reduction of the VAT tax to 8 per cent is not enough, he said.

Businesses need to run a series of discount campaigns to stimulate demand, including tourism. With exports facing difficulties, promoting consumption in the domestic market is a must, he said.

In addition, consumer credit should be accelerated to stimulate consumption demand, he added.

From a business perspective, Nguyen Anh Duc, general director of Saigon Co.op, said that retail businesses are facing many difficulties due to declining demand. Statistics of the Association of Vietnam Retailers showed that no retailer had positive growth in the first quarter of 2023.

To create conditions for the retail industry to develop as well as the economy to recover, there should be policies to directly support consumers, such as a 2 per cent reduction in VAT.

Lich said the National Assembly is discussing a resolution to supersede Resolution No 54 on specific mechanisms and policies for the development of the city. If it is approved and immediately applied, it will give the city great autonomy and help solve institutional obstacles to facilitate growth. 

Provisional electricity price approved for two wind farms

Vietnam Electricity Group (EVN) has approved temporary electricity tariffs for two wind farms, Nam Binh 1 and Vien An, while 15 other wind and solar power projects have yet to wrap up pricing negotiations.

According to EVN, 31 of 85 transitional wind and solar power projects with a total capacity of 1,956.8 MW have submitted documents for power pricing talks with EVN. Of these, 15 are in pricing negotiations with EVN.

Eleven projects still need to supplement documents and clarify some regulatory issues, while EVN is reviewing the documents of five other projects.

Sixteen investors have proposed applying temporary electricity tariffs as negotiations are underway, of which six power plants have cut deals with EVN, comprising four wind farms — Nam Binh 1, Vien An, Hung Hai Gia Lai and Hanbaram — and two solar farms — Phu My 1 and Phu My 3.

According to a representative of EVN, a power project is eligible for operation when it is licensed by the authorities. However, only 13 of 85 transitional renewable energy projects have been permitted by the Ministry of Industry and Trade to be put into operation until now.

Nam Binh 1, Hung Hai Gia Lai and Hanbaram are three licensed plants among six that have successfully dealt with EVN on temporary electricity tariffs.

Coffee prices hit all-time high in Lam Dong Province

On May 17, the prices of Robusta coffee beans in the Central Highlands provinces reached VND56,200-VND56,700 per kg, VND5,000 per kg higher than two weeks ago.

In Lam Ha District, Lam Dong Province, the current selling price of Robusta coffee is VND56,200 per kg. The Department of Agriculture and Rural Development of Lam Dong Province has assessed that domestic coffee prices have seen a significant increase due to the scarcity of supply.

The coffee price has been hitting new highs in recent months and is recorded as the highest price ever. Previously, the history of domestic coffee prices has seen levels of VND43,000 per kg in 1994, VND40,100 per kg in 2008, and VND49,000 per kg in 2011. However, currently, the coffee price even reaches up to VND57,000 per kg.

According to experts in the coffee industry, the coffee futures prices are once again on the rise in both the London and New York exchanges, primarily due to concerns about a delayed supply caused by unfavorable weather conditions in major coffee-producing regions, which have hindered the progress of harvesting in the new crop season. Brazil is facing a labor shortage for harvesting, while Indonesia is grappling with excessive rainfall.

Currently, the country has about 710,000 hectares of coffee, of which the Central Highlands has 639,000 hectares, accounting for 89.9 percent.

VIPA proposes ban on imported meat with beta agonist

Vietnam Poultry Association (VIPA) yesterday sent a formal dispatch to the Prime Minister and the National Assembly regarding current challenges of the domestic livestock industry.

Statistics from VIPA reveal that each month, thousands of tonnes of spent hens are imported illegally as human food into Vietnam. This includes cheap by-products in livestock production like legs, heads, necks, wings, skin, and gizzards of poultry that are not used as food for people in developed countries.

VIPA also informed that since 2014, the use of such chemicals as Ractopamine and Cysteamine to add extra lean muscle for livestock has been banned in 160 nations including Vietnam owing the high risk of cancer for consumers.

However, each year, Vietnam still imports a large volume of pork, beef, and chicken from countries allowing the use of the dangerous chemicals above. Meanwhile, to export meat, domestic livestock farmers have to satisfy strict technical requirements by purchasing countries, which means the national livestock products are vulnerable right in the domestic market.

Therefore, VIPA proposes that the Government timely introduce a formal dispatch regarding a ban of importing meat from any countries using Ractopamine and Cysteamine in their livestock production.

The Agriculture and Rural Development Ministry and related ministries, state agencies should immediately implement non-tax measures to protect both the domestic livestock industry and the health of Vietnamese consumers.

Binh Dinh to invest Nobel Avenue in Quy Hoa Science and Education Urban Area

The People’s Committee of Binh Dinh Province approved the proposal of the Provincial Department of Culture and Sports on naming Nobel Avenue and honoring scientists awarded the Nobel Prize who came to Quy Nhon City over passing years.

Deputy Director of the Department of Culture and Sports of Binh Dinh Province Huynh Van Loi said that the project was based on the proposal of the People’s Committee of Quy Nhon City.

The Nobel Avenue will be implemented in Quy Hoa Science and Education Urban Area in Ghenh Rang Ward, Quy Nhon City where the urban area of science was set name in July 2017 by Dutch theoretical physicist Gerardus't Hooft, who won the 1999 Nobel Prize in Physics.

The Quy Hoa Science and Education Urban Area has an International Center of Interdisciplinary Science Education (ICISE), typical ExploraScience Quy Nhon with a museum showcasing the panoramic history of the universe and models, ideas, the world's most technologically advanced space projection buildings and scientific research institutes.

Here, many businesses are performing investments in software park projects, science and education city, hotel for science and so on.

Naming Nobel Avenue aimed at honoring and showing respect to the Nobel Professors who had come to Quy Hoa, and creating a new highlight to open a scientific tourism product for visitors in Quy Nhon City.

It is expected that the locality will call for sources of socialization and sponsors for the project investment.

HCMC to host Ho Chi Minh City Export Fair 2023

Ho Chi Minh City Export Fair 2023 will open at the Saigon Exhibition and Convention Center in the city from May 25-28 with the participation of 250 booths and 8,000 guests. Of these, more than 2,000 foreign visitors have registered to attend the event.

The information was provided by the Ho Chi Minh City Department of Industry and Trade at a press conference this afternoon.

Director of Ho Chi Minh City Department of Industry and Trade Bui Ta Hoang Vu emphasized that the event would contribute to promoting trade activities in the context of global inflation, a decrease in the country's import turnover.

In addition, Ho Chi Minh City Export Fair 2023 will support enterprises to seek new export partners.

It is expected that 3,000 foreign guests from key importing countries such as the United States, the Republic of Korea, Japan, India, Thailand, Cambodia and representative offices in Vietnam will join the three-day event.

Within the framework of the event, a forum on green exports and a conference on exports of Vietnamese agricultural products will be opened.

AfCFTA opens up opportunities for Viet Nam's trade

The African Continental Free Trade Agreement (AfCFTA) officially begins in early 2021, when the participating member countries establish a single market covering both the trade and investment sectors, with a total domestic budget (GDP) of US$3.4 trillion.

Over the past decade, Viet Nam-Africa trade has more than doubled, from just US$2.52 billion in 2010 to US$5.5 billion in 2022, according to the Asia-Africa Market Department, Ministry of Industry and Trade (MoIT).

Of the total, Viet Nam's exports were valued at more than US$2.8 billion, resulting in a trade surplus of US$226.3 million.

Viet Nam mainly shipped rice (US$568.6 million), phones and component parts (US$355.6 million), computers and electronic products (US$210.4 million), and footwear (US$141.8 million) to Africa.

Meanwhile, it bought cashew nuts (US$1.1 billion), metals (US$484.1 million, and wood and wood products (US$114.3 million) from this continent.

In the coming time, to facilitate intra-bloc trade, African nations will pour more capital into infrastructure facilities, thus opening up more opportunities for Vietnamese goods to access more markets, including 15 landlocked countries in Africa.

At present, Viet Nam's main export markets in the region are major economies with seaports such as South Africa, Egypt and Nigeria.

Countries worldwide plan to study, negotiate and sign international trade agreements, especially free trade agreements (FTAs), with the African Continental Free Trade Area.

This will help them save time negotiating with individual countries or regions (Africa currently has 55 countries divided into eight economic regions).

Even if the AfCFTA agreement takes effect across the region, the continent still cannot guarantee the supply of machinery, equipment, rice, textiles, footwear, and processed aquatic products; and still has to depend on imports from foreign countries.

Therefore, Viet Nam has enormous potential to export its essential commodities such as rice, coffee, garment and textiles, footwear, and aquatic products to Africa.

Viet Nam can increase its export of textile, leather and footwear products to Africa by promoting competitive advantages such as low labor costs, good sewing techniques, and high-quality products if the nation or ASEAN negotiates a trade agreement with the AfCFTA.

Ha Tinh sets up working groups to accelerate public capital disbursement

The Ha Tinh Provincial People’s Committee has decided to establish working groups to examine and tackle difficulties and speed up disbursement of public investment capital in the north-central province.

These groups will review and identify obstacles and difficulties facing public investment projects and analyze the causes and propose solutions to facilitate the disbursement of public investment capital to improve efficiency in capital use.

They will also evaluate the implementation of measures to promote the disbursement of public capital as directed by the government, the Prime Minister and the provincial authorities.

Group members will propose that local authorities reduce capital allocations to delayed projects and allocate capital to projects with rapid disbursement rates and those that are capable of being completed in 2023.

As of March 30, Ha Tinh had disbursed nearly VND1.2 trillion ($50 million) in public investment capital, or 14.7 per cent of the plan.

HCMC to change 684 ha of agricultural land to housing land

The Ho Chi Minh City Department of Natural Resources and Environment has submitted a land use plan for the 2021-2025 period to the municipal People’s Committee for approval.

The city will allocate 102,191 ha of land for agricultural activities and 106,750 ha for non-agricultural purposes.

It will therefore change 684 ha of non-agricultural land to housing land and 9,867 ha of agricultural land to non-agricultural land.

The city targeted changing 26,000 ha of agricultural land to non-agricultural land in the 2016-2020 period but could only fulfill 13-14 per cent of the target as a result of delayed projects and planning.

Binh Thuan approves housing development plan
 
The Binh Thuan Provincial People’s Committee has approved the south-central province’s housing development plan for 2023, with a target of raising the total floor space to over 1.33 million sq m.

Of the total, the area for commercial housing will be 164,000 sq m, for resettlement housing over 37,000 sq m, and for social housing more than 184,200 sq m.

The average housing area per person is expected to be 24.9 sq m.

The average in urban areas will be 25.7 sq m and in rural areas 24.5 sq m.

Total investment needed for housing development is estimated at over VND7.7 trillion ($324 million).

The total land area to be used for housing construction is estimated at 212.4 ha.

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