Vietnamnet.vn
Podcast
The Government Office recently issued a Notice on Deputy PM Ha’s conclusion at a meeting related to the negotiations of electricity price for these projects.
The document stated that in order to achieve the goal of sustainable development, the Government has been implementing necessary solutions for the national energy transition, including policies to encourage investment in renewable energy development.
For projects that are not yet eligible for operation and still having problems with legal procedures, the ministry and localities where the transitional power projects are located should urgently guide enterprises to complete the prescribed procedures.
The Ministry of Planning and Investment was urged to issue a document before May 25 guiding the People's Committees of provinces and cities to consider and decide to adjust investment policies for transitional projects with the implementation time of more than 24 months compared to the time limit specified in the first investment policy approval letter in accordance with regulations.
Petrol prices rise under latest adjustment
The retail prices of petrol rose in the latest adjustment on May 22 by the Ministry of Industry and Trade and the Ministry of Finance.
The price of E5 RON 92 petrol went up 350 VND per litre to 20,480 VND (0.97 USD).
Meanwhile, that of RON 95 rose by 490 VND to 21,490 VND per litre.
The prices of diesel oil went up 300 VND to 17.950 VND per litre, while kerosene decreased by 10 VND to 17.960 VND per litre.
At this price adjustment, the two ministries decided to extract 300 VND per litre from all the fuels for the petrol price stabilisation fund.
Mong Cai city imports electricity China’s Dongxing
The Mong Cai (Vietnam) - Dongxing (China) 110kV transmission line was completed and put into operation at 6 am on May 22, adding power supply to Mong Cai city in the northeastern province of Quang Ninh, according to the Mong Cai City Electricity.
On May 18, an electricity shortage and a forest fire in Vu Oai commune, Ha Long city affected two 110kV power lines supplying power to some wards in the city. Areas in the city have suffered from rotary power cut, which causes inconvenience in the daily life of the local residents.
Quang Ninh Electricity calls on people save electricity, especially on hot days.
So far this year, due to the abnormal changes in the weather, the total rainfall in the whole country is lower than the average for many years.
Currently, the water level in many hydropower reservoirs is very low, causing difficulties in power generation.
Phu Quoc welcomes first international cruise ship after COVID-19
Italy’s cruise ship COSTA SERENA on May 21 docked at Duong Dong wharf, Phu Quoc city, Kien Giang province, after departing from Thailand.
This was the first international cruise ship returning to Phu Quoc city after the COVID-19 pandemic.
The 5-star ship carries 3,500 tourists from 18 countries, mainly from Thailand, Malaysia, Indonesia and some European countries, along with 1,056 crew members.
During their stay, visitors went sightseeing and shopping at tourist attractions on Phu Quoc island. At 5pm the same day, they left Phu Quoc, continuing their journey.
After a long hiatus caused by the COVID-19 pandemic, the Phu Quoc tourism sector is stepping up promotion activities, building quality products, and focusing on training high-quality human resources to better serve visitors.
PM thanks Japanese enterprises for accompanying Vietnam
Prime Minister Pham Minh Chinh thanked Japanese businesses for their sharing, accompanying and determination to run a long-term investment in Vietnam, especially in the context of the current difficulties and challenges, while attending a Vietnam-Japan business forum held in Hiroshima on May 21.
Chinh, who is in Japan to attend the expanded Summit of the Group of Seven (G7) and for a working visit, said that the Vietnam-Japan relationship is at its best ever 50 years after they set up their diplomatic ties. At present, Japan is the largest ODA donor, the second largest labour cooperation partner, the third biggest investor and tourism partner, and the fourth biggest trade partner of Vietnam.
Vietnam always listens to understand and solve practical issues appropriately and effectively, including those of enterprises, while continuing to give priority to stabilising the macro-economy, controlling inflation, ensuring major balances, and promoting growth, to three growth drivers of consumption, investment, and export.
On that basis, the PM suggested Japanese businesses maintain investment in Vietnam, with a focus on innovation, digital economy, green economy, circular economy, knowledge economy, and climate change response; and support Vietnamese firms in joining the global supply chain, and provide assistance for Vietnam in technology, capital, governance, human resources training, institution building to help it realise its goal of net zero emissions by 2050.
At the event, participating Japanese businesses spoke highly of the socio-economic achievements of Vietnam - the most dynamic developing country in Southeast Asia.
They said they identify Vietnam as the leading investment destination, and want to continue to expand investment in the country in the fields of energy transition, logistics, real estate, information technology, electric vehicle manufacturing, finance-banking, automated equipment, and garment and textiles.
They also proposed Vietnam simplify administrative and investment registration procedures, provide stable green energy for production, have preferential policies for several priority economic sectors, and relax policies on granting work permits.
Acknowledging Japanese businesses’ ideas, PM Chinh affirmed that the Government has directed ministries, sectors and localities to address these issues to create more favourable conditions for enterprises, including those from Japan.
Gia Lai province focuses on specialty coffee branding
The Central Highlands province of Gia Lai – one of Vietnam’s coffee growing centres - is striving to develop its specialty coffee brand by focusing on increasing the quality and value of products.
At present, farmers in Gia Lai are growing coffee on nearly 99,000 ha, with an average yield of over 3 tonnes per ha, and the total output of more than 267,000 tonnes. Coffee is currently Gia Lai’s main farm produce export with a turnover of 490 million USD in 2022, accounting for nearly 71% of the province's total agro-product export value.
Over the past years, coffee production has contributed to creating direct and indirect jobs for hundreds of thousands of workers. As a result, the living standards of locals, including ethnic minorities, have gradually improved.
According to the province's agricultural restructuring plan for the 2021 - 2025 period, Gia Lai will not expand the coffee growing area, but maintain it at around 98,000 - 100,000 ha.
Le Huu Anh, Director of Lam Anh Agriculture and Services Cooperative in Dak Doa district, said that in the past, Vietnam mainly exported coffee as a raw material, but now it has been processed into a specialty, adding value to the produce while meeting the world’s needs.
However, in order for coffee to stand firm in the international market, it is necessary to be transparent about the raw material area, and focus on protecting farmers with clean and organic cultivation, Anh said, adding that sustainable coffee development will bring bigger benefits to farmers, businesses and the environment.
In recent years, apart from promoting the production of clean coffee as a way to improve the quality and value of exported coffee beans, many businesses in Gia Lai have concentrated on investing in building sustainable processing and production networks and partly developing specialty coffee.
Tran Xuan Khai, Director of Gia Lai Sub-Department of Crop Production and Plant Protection, said that the current area of specialty coffee in the province is more than 200 ha, with an output of 62 tonnes.
The locality is striving to raise the area of specialty Robusta coffee to 1,200 ha with an output of 620 tonnes by 2025, and 2,300 ha in the 2026-2030 period.
Green funds prompt need for fund-managing institution: insiders
The growing availability of green funds in the world has exposed the need for a professional institution in Vietnam to take charge of the green money granted to the country, according to insiders.
Former head of the Banking Strategy Institute Pham Xuan Hoe said that green funds to Vietnam will be more abundant in the next few years on the back of the Just Energy Transition Partnership launched in December 2022.
At least 15.5 billion USD initiated by the partnership will come in the form of preferential loans for three to five years to support the country's energy transition. The EU and the UK also got in on the act with committed assistance of 7.8 billion USD.
Given the growing availability of green funds, Hoe called for a professional institution to manage the green money delivered to the country. Such an institution will act as an intermediary that would improve domestic firms' access to green capital, he stressed.
"The professional institution will ensure the effective implementation of the green funds granted to Vietnam," said Hoe.
In the long term, he urged the establishment of an up-to-international-standards financial taxonomy that works in line with other financial systems, including taxation and carbon credit.
Professor Vu Sy Cuong at the Academy of Finance opined that the transition to green growth in Vietnam requires vast investments. Between now and 2040, the country will need an annual amount of finance equivalent to 6.8% of the GDP to improve its resilience against climate change.
International institutions and banks are willing to dig deep into their pockets to fund the country's effort on 'going green'. However, the availability of green funds is one story, and the absorbability of the funds is another.
The absence of a climate bond taxonomy and a legal framework for the bond in the country has stymied those who want to finance green projects in the country. On top of that, the low awareness of ESG (Environmental, Social, and Governance) among firms has made scores of firms slip through the cracks.
To unlock the full potential of green funds, the professor called for establishing a carbon credit market and granting financial assistance to firms cutting back on stranded fossil-fueled assets.
According to DARA International, Vietnam will incur an annual cost of 15 billion USD (5% of the GDP) in the next years owing to climate change. If the country fails to take early action, the cost can soar to 11% of the GDP by 2030.
Farmers look to capitalise on increased agricultural product exports to China
The quantity of Vietnamese agricultural goods exported to China via border gates in the northern mountainous province of Lao Cai has witnessed a significant upswing this year, surpassing figures from previous years.
The newfound export surge can be attributed to China's recent modifications in its COVID-19 prevention policies, leaving farmers in a state of anticipation.
Vang Kim Sinh, a farmer of Tan Tien Hamlet, Trinh Tuong commune, Bat Xat district said he and his neighbours have shifted to plant bananas instead of cassava to earn a living in recent years.
The technique of growing bananas is simple, bringing higher income than growing cassava, he said.
He said since the beginning of this year he has sent several containers of bananas through Kim Thanh International Border Gate.
One container contains about 3,300 boxes of bananas, he said.
He said that the price of bananas, which are exported to China, is more than doubled that of bananas he sells to the domestic market.
When China closed its door due to the pandemic, he said that bananas from the commune were only sold domestically with the highest price of 3,000 VND (0.12 USD) per kg.
Now, he said the bananas had been exported to China’s Yunnan province with the price over doubled, about 7,000 VND (0.30 USD) per kg.
Statistics from Lao Cai province’s Customs Department showed that in the first quarter of this year, import and export turnover through local border gates reached nearly 186 million USD.
The export turnover reached 92.4 million USD, about 90.1% higher than last year, while the import turnover reached 93.2 million USD, about 15% higher than last year.
Agricultural products are still the main exported products, reaching more than 71 million USD, about 63.2% higher than last year, Chinh phu (Government) News reported.
Agricultural products account for 76.8% of the total export turnover. Main agricultural products include dragon fruit, banana, rambutan, watermelon, cassava and durian.
Duong Xuan Sinh, deputy director of the provincial Customs Department, said that the department had deployed the electronic customs model and electronic tax collection-and-payment model to assist businesses in saving time and costs in taking customs clearance procedures at border gates.
The department has also maintained good infrastructure to serve the operation of the "priority stream" for agricultural products through a pair of international road border gates of Vietnam’s Kim Thanh and China’s Beishan since June 28, 2019, he said.
Besides, he said that the border guard force had arranged more staff to regulate traffic at the border gates, instructing drivers to stop and park at the right places.
He said about 300 vehicles carrying imported and exported goods run through Lao Cai International Border Gate daily.
In addition, the border guard force has also created favourable conditions for entry and exit for people, vehicles and goods through the Kim Thanh International Border Gate based on the principle of strictly implementing the agreement on border gates and regulations on the management of the land border gate between Vietnam and China.
China has been an important export market for some agricultural and aquatic products of Vietnam, and it is the largest export market for Vietnamese vegetables, fruits, cassava and products from rubber. After the US and Japan, it is the third largest export market for Vietnamese seafood products.
Some commodity groups such as seafood, fruit, and coffee of Vietnam are among the ten largest exporters to China.
During an official visit to China by Party General Secretary Nguyen Phu Trong in late 2022, the two sides already signed several Protocols on the export of agricultural products.
China officially reopened border gates on January 8 this year after it changed COVID-19 prevention policies, offering an opportunity for many types agricultural and aquatic products of Vietnam to export to China.
To Van Quang, China’s Dong Dang Investment Industry Company Limited, said that this year, the company plans to buy 35,000 tonnes of durian, including 15,000 tonnes from Vietnam.
Besides, the company also demands to buy 120,000 tonnes of purple sweet potatoes and seafood such as catfish and pit fish.
With great help from large State-owned enterprises in China and competent authorities in Vietnam, the company is promoting the establishment of the Vietnam Seafood Trading Centre in Fangchenggang City in Guangxi Province, he said.
Fangchenggang City’s administration has started the construction of two large-scale seafood cold storages. The first cold storage has an area of 600 acres (2.4 million sq.m) with the capacity to store 200,000 tonnes of seafood. He said the second cold storage has an area of 1,000 acres (over 4 million sq.m) with a storage capacity of 600,000 tonnes of seafood.
Therefore, he said Vietnamese seafood could enter the Chinese market in large quantities very quickly in the future.
He added that the centre in Fangchenggang City is also a place where buyers and sellers can directly meet and transact.
Vu Ba Phu, Director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, said that trade promotion activities with the Chinese market have been active since the first months of this year.
He said this year's export promotion activities for the Chinese market focus on supporting Vietnamese businesses and localities to export their products through official channels to China.
Vietnam has a northern border with China with a length of over 1,449 km. Cross-border import and export activities in seven northern border mountainous provinces, with seven international border gates, six bilateral border gates, and 21 sub-border gates, are getting busier and busier.
Credit package for social housing development not yet disbursed: SBV
The credit package of VND120 trillion (US$5 billion) for social housing development has not yet been disbursed due to many challenges.
Nguyen Xuan Bac, deputy director of the Department of Credit for Economic Sectors, the State Bank of Viet Nam (SBV), made the statement at a conference held by the Ministry of Construction on Friday.
The conference saw discussions and updates on the implementation of the project to build at least one million social housing apartments for low-income people and workers in industrial parks in the 2021-30 period.
Implementing Resolution 33/NQ-CP issued by the Government on solutions promoting the safe, healthy and sustainable development of the real estate market, SBV set a credit package of VND120 trillion for social housing development and a project on developing one million social houses.
This credit package is carried out by four State-owned commercial banks, Vietcombank, Agribank, BIDV and VietinBank, with annual interest rates 1-2 per cent lower than the average interest rates offered for middle- and long-term deposits by commercial banks. This programme has been implemented since April 1, 2023. The package will also provide loans for rebuilding old apartments with preferential interest rates.
The package will focus on lending to both investors and homebuyers of eligible projects, creating conditions to promote the strong development of the social housing market.
However, Bac said the implementation of this loan programme still faces many challenges. At present, the supply of social housing is still limited due to the difficulties relating to finding investors for social housing projects and land fund for those projects. The challenges also include a lack of attractive incentives for investors and difficulty in determining the selling price of social houses.
According to Bac, up to now, the central bank has not yet received the list of eligible projects according to the Ministry of Construction's Official Dispatch No. 1551/BXD-QLN. Therefore, although it was effective from April 1, 2023, so far, the VND120 trillion package has not yet have any borrowers.
In addition, the existing regulations on conditions of buying social housing such as conditions on residence and personal income tax, and increasing house prices are obstacles for low-income home seekers.
The central bank recommends that coordination of ministries, agencies and localities in carrying out this credit programme be boosted to contribute to reaching the goal of building at least one million social houses by 2030.
Accordingly, ministries and agencies need to review and amend relevant legal documents to remove obstacles in terms of legality and procedures in the investment and construction of social houses.
In addition, local authorities should pay attention to arranging land funds for social housing development and soon announce the list of eligible projects so their investors can access the loans in this credit package.
They should also provide information to investors of social housing projects as well as people about the loan programme.
At the conference, Deputy Minister of Construction Nguyen Van Sinh said the Ministry of Construction will continue to coordinate with related ministries and sectors in amending a number of laws, such as land and bidding laws, as well as policies and order of procedures.
The country completed 41 social housing projects for low-income people and workers of industrial parks by May 18, 2023 with a supply of about 19,516 apartments. About 294 social housing projects are under construction with a supply of about 288,499 apartments.
Condotels, officetels get ownership certificates from May 20
Buyers of condotels, officetels and resort villas will have ownership certificates from May 20 under a new decree guiding the Land Law implementation.
Owners of condotel apartments who fully satisfy the conditions under the land law, construction law and the law on real estate business shall be granted a certificate of ownership of land-attached construction facilities according to the commercial or service land area purpose.
On April 3, 2023, the Government issued Decree No. 10/2023/ND-CP on amending and supplementing several decrees guiding the Land Law implementation from May 20.
The land use term shall comply with provisions of Clause 3 Article 126 and Clause 1 Article 128 of the Land Law. Owners of construction facilities shall take responsibility before the law for fully satisfying conditions prescribed by the construction law and the law on real estate business.
The ownership term of the condotel depends on the purpose of land use following current regulations but not exceeding 50 years of the ownership term for land allocated or leased by the State for commercial or service use.
Buyers may only own land and apartments during the remaining land use period, not for long-term use as residential land.
The Ministry of Natural Resources and Environment has urged localities to grant ownership certificates to the buyers of condotels, officetels and resort villas, according to the Official Dispatch No 3382/BTNMT-DD that the ministry has recently sent to the people's committees of localities.
The ministry has also asked the localities to create conditions on information technology infrastructure to carry out online administrative procedures for granting this certificate.
According to experts, Decree No. 10/2023/ND-CP will remove legal bottlenecks for investors and buyers of condotels, officetels and resort villas.
Pham Duc Toan, General Director of EZ Real Estate Investment and Development Joint Stock Company (EZ Property), said that the market had expected the new decree for a long time. When it comes into effect, it will open a way of continuing development for many unfinished projects.
The Government's new decree has created a legal corridor for buyers, making them feel safe in property ownership and value. It will create a new investment wave in the tourist real estate market.
For condotels, officetels and resort villas, transactions in the secondary market are also simplified further. Buyers and sellers only need notary offices to complete the transaction procedures. Before the decree, besides working at the notary offices, the buyer also completed procedures with the investor and paid a fee to the investor, Toan said.
Owners will also be protected under the Real Estate Business and Housing Law for operation management.
Nguyen Van Dinh, vice chairman of the Viet Nam Real Estate Association, said that many investors expect Decree No.10/ND-CP and it creates a breakthrough in the synchronisation of the legal system.
With this new policy, the unfinished projects in major tourist and resort centres, such as Da Nang, Nha Trang and Phu Quoc, will benefit from removing legal obstacles, Dinh said.
Experts say that if legal problems in the condotel, officetels and resort villa market are resolved, it can restore nearly 239 frozen projects nationwide, with a total value of about VND682 trillion (US$30 billion).
According to the experts, it is necessary to study and issue regulations to ensure secondary investors' rights and interests when they invest in resort real estate projects. It makes the investors feel safe when they invest a lot of capital in resort real estate.
For many years, resort real estate development has been seen as a way to develop tourism infrastructure to achieve the goals of the Viet Nam Tourism Development Strategy.
According to this strategy, Viet Nam targets to become an attractive tourist destination by 2030 and in the world's top 30 countries in terms of tourism competitiveness.
The General Statistics Office reported that Viet Nam's tourism industry recorded a strong recovery with a year-on-year increase of 19 times in foreign tourists to 3.7 million in the first four months of 2023.
The number of domestic tourists during the period was estimated at 38 million.
Total revenue from tourists was estimated at VND196.6 trillion ($8.3 billion).
The strong growth of the tourism industry in the first four months will revive the resort real estate market after two years of losses due to the COVID-19 pandemic and return on rental income will bring confidence to investors.
Temporary prices set for two transitional wind power projects
Vietnam Electricity (EVN) recently approved temporary electricity prices for two wind power plants among 31 applications.
EVN said that it received an application for negotiation for the procurement of electricity from 31 out of 86 transitional wind and solar power plant projects, totalling 1,956 MW in capacity but not yet in commercial operation (COD).
In Particular, 16 investors have proposed to apply a temporary price during the negotiation period.
EVN has met and reached a consensus on temporary electricity prices with six power plants, including Nam Binh 1 wind power plant, Vien An wind power plant, Hung Hai Gia Lai wind power plant, Phu My 1 solar wind power plant, Phu My 3 solar power plant and Hanbaram wind power plant.
On May 10, EVN approved temporary electricity prices for Nam Binh 1 and Vien An wind power plants, while Nam Binh 1, Hung Hai Gia Lai, and Habaram were licensed.
According to the Electricity Law, power projects can only be placed into operation after receiving an electricity activity license.
However, only 13 transitional energy plants, accounting for 15 per cent of the total, have received electrical operation licenses from the Ministry of Industry and Trade.
US extends investigation into evasion of trade remedy tax on Vietnamese goods
The US Department of Commerce (DOC) has extended the investigation period for plywood products made from hardwood and solar batteries, regarding the evasion of trade remedy taxes.
The Trade Remedies Administration under the Ministry of Industry and Trade (MoIT) has announced that the DOC has prolonged the investigation period to address the issue of trade remedy evasion involving plywood products made with hardwood imported from Viet Nam.
The conclusion of the investigation is expected to be published by May 26, 2023.
Furthermore, the deadline for issuing final judgments in the anti-trade remedy tax lawsuit concerning solar batteries imported from Viet Nam has been extended.
The final judgment is anticipated to be published on August 17, 2023.
The Trade Remedies Administration encourages businesses engaged in the production and export of related items to closely monitor the progress of these cases.
Vietnam to explore direct power purchase agreements in renewable sector
Vietnam's Prime Minister Pham Minh Chinh has revealed path for direct power purchase agreements (DPPA) to drive renewable energy investments. As the nation positions itself as a key player in the renewable energy landscape, the successful implementation of DPPA mechanisms promise to propel Vietnam towards a more energy-independent future.
Vietnam's Prime Minister Pham Minh Chinh has just unveiled plans to embark on a groundbreaking initiative that involves piloting and advancing the development of a direct power purchase agreement (DPPA) framework between renewable energy producers and consumers in Vietnam.
During a meeting held on May 19 with Fujimoto Masayoshi, CEO of Sojitz Corporation, on the sidelines of the expanded G7 Summit in Japan, discussions revolved around the potential for expanding investments in Vietnam's industrial parks and renewable energy sectors.
Masayoshi emphasised Sojitz's keen interest in exploring opportunities for broader investments in these domains.
A growing number of prominent Japanese businesses are actively considering expanding their production capacities in Vietnam or relocating their manufacturing operations to the country.
Masayoshi proposed that Vietnam should expedite the implementation of a DPPA mechanism, enabling industrial plants to actively participate it. Such a move would foster a more competitive landscape in Vietnam's energy sector.
Prime Minister Chinh echoed these sentiments, highlighting the recent issuance of Power Development Plan VIII, which underscores a strategic focus on the advancement of renewable energy sources.
This plan serves as a crucial foundation for executing projects pertaining to power generation and grid infrastructure.
Building on this framework, Vietnam is poised to embark on a pilot phase aimed at establishing a robust DDPA mechanism between renewable energy producers and electricity consumers.
This progressive initiative will be accompanied by the amendment of the Electricity Law and the phased implementation of a competitive market framework across Vietnam.
Notably, the draft proposal for piloting DDPA was previously introduced by the Ministry of Industry and Trade, presenting an initial pilot capacity of 1,000 MW.
During this earlier phase, esteemed industry players such as Samsung expressed their eagerness to participate in the mechanism.
According to the ministry's draft, buyers and sellers will engage in negotiations and reach agreements for direct power purchases from solar and wind power plants through fixed-price contracts.
The ensuing electricity trading will be conducted through a spot electricity market, functioning in strict accordance with the competitive wholesale electricity market regulations set forth by the Ministry of Industry and Trade.
Previously, Gabor Fluit, chairman of the European Chamber of Commerce in Vietnam, said, "Vietnam should also establish a DPPA to incentivise renewable energy companies, particularly allowing industrial parks plants to participate in such agreements. We propose creating stronger conditions for plants that require renewable energy to comply with EU regulations.”
This significant initiative spearheaded by Prime Minister Chinh and supported by key industry players marks a significant step towards fostering a robust renewable energy sector and achieving sustainable power generation nationwide.
Vietnam, with its abundant renewable energy potential, offers a fertile ground for the development of renewable energy projects. The country's favourable geographical location and diverse renewable resources, including solar, wind, and hydroelectric power, present a promising landscape for clean energy investments.
An increasing number of domestic and international companies are entering the Vietnamese renewable energy sector, driven by the potential for significant growth and the increasing demand for energy, such as BCG Energy.
MB appoints Pham Nhu Anh as CEO
With a strong foundation built on academic excellence and a formidable professional track record, Pham Nhu Anh assumes the role of new CEO at Military Commercial Joint Stock Bank (MB), poised to steer the bank towards greater achievements.
The State Bank of Vietnam has granted approval for the anticipated personnel appointment of Pham Nhu Anh as the new CEO of MB.
Pham Nhu Anh, who currently serves as the deputy executive officer in charge of the Board of Management, will assume the position of CEO following the legal regulations and MB's provisions.
Previously, on April 12, MB entrusted Anh with the position of deputy executive officer in charge of the Board of Management, empowering him with the authority and responsibilities of the CEO.
Born in 1980, Anh holds a Master's degree in Business Administration from UBI Business School in Belgium, specialising in Business Administration, and a Bachelor's degree in Economics, majoring in Business Administration from the University of Economics and Business Administration, Da Nang University.
With a remarkable track record spanning nearly two decades in the finance and banking industry, Anh's journey within MB has been extraordinary. The corporate landscape witnessed his ascent through the ranks, with notable positions including the role of branch director, where his visionary leadership propelled branches to unprecedented heights.
Simultaneously, Anh took charge as a department director and an esteemed member of the Board, leveraging his expertise to steer MB towards unparalleled success.
The years from 2007 to 2017 witnessed Anh's directorial prowess as he helmed multiple branches, igniting an era of excellence across the Central and Southern regions.
April 2017 marked a pivotal moment as Anh assumed the distinguished role of Director of the Corporate and Institutional Banking Department (CIB). Then, in a testament to his commitment, Anh's merit led to his appointment as a Board member in August 2020.
The pivotal role bestowed upon him the responsibility of overseeing the dynamic business operations of units in the Southern region and the coveted CIB division of MB. These units, under Anh's strategic guidance, achieved remarkable growth and stability, with their performance skyrocketing two to fivefold
The appointment of Anh as CEO reflects the trust of the MB's Board of Directors in the young leadership of the bank.
Deutsche Bank AG Ho Chi Minh City branch increases granted capital
Deutsche Bank AG - Ho Chi Minh City branch's granted capital has been increased to $200.08 million and updated as per State Bank of Vietnam (SBV) Decision No.401/QD-HCM dated May 12, 2023.
On May 12, 2023, the director of the SBV's Ho Chi Minh City Branch signed Decision 401 on amending the granted capital mentioned in Article 2 of Licence No.50/GP-HCM dated January 21, 2022 for Deutsche Bank AG - Ho Chi Minh City Branch.
Accordingly, Deutsche Bank AG - Ho Chi Minh City Branch has increased its tier 1 capital by $100 million to increase its granted capital to $200.08 million.
Business mods tackle vehicle demand slump
Car dealers have had a difficult first quarter as the impact of macro policies, high interest rates, and tightening credit space has caused a sharp decline in vehicle demand in Vietnam.
Vo Quoc Binh, managing director of Ho Chi Minh City trader Binh Minh Company, said this year’s interest rates on auto loans were 3-4 per cent higher than a year ago. Therefore, middle-income consumers must consider that when purchasing a vehicle for around $21,000, they will be required to pay an additional $2,000 annually.
Do Tien Dung, chairman of Hang Xanh Motor Services (Haxaco), in April said that the motivation to purchase automobiles was no longer favourable compared to a year ago when interest rates were above 10 per cent. This resulted in the market slipping into a large oversupply and increasing inventories, thereby dragging down the profits of distributors.
According to a report published on April 28 by Saigon General Service Corporation (Savico), a more severe business climate compelled the company to modify its business plan for 2023, resulting in a 25 per cent decrease in profit after tax to $18.7 million compared to 2022. In the first quarter of 2023, Savico’s profit decreased by almost 85 per cent, reaching only $626,000 and falling by more than 11-fold from the previous quarter.
In 2022, Savico, the largest automotive distributor in Vietnam, earned a net profit of $14 million, an increase of 126 per cent over the previous year. This record was the result of demand recuperating from the pandemic and the positive impact of the 50 per cent registration fee policy, while the shortage of supply has caused the prices of many models to rise.
The market may require 3-6 months to rebalance. Savico has established a conservative business plan for 2023, with profits down 20 per cent from the previous year due to sales of prestige automobiles, new energy vehicles, and intensive management activities.
The ASEAN Automotive Federation said last month that the Vietnamese auto market experienced the second-greatest decline in Southeast Asia in the first quarter of 2023, with sales down over 22 per cent on-year. Vietnam had the second-largest deceleration after Myanmar.
In the first quarter, the Vietnamese market produced just over 38,400 automobiles, a decrease of 29.5 per cent compared to the same period last year. Dao Cong Quyet, a representative of the Vietnam Automobile Manufacturers Association, said that the tough domestic economy and high bank interest rates had rapidly reduced auto consumption since the end of last year.
According to the General Statistics Office, GDP for the first quarter of 2023 was estimated at 3.32 per cent, only slightly higher than the GDP for the first quarter of 2020, with the processing and manufacturing industries declining by 0.37 per cent.
Analysts said that after the government modifies a number of policies, interest rates, and taxation, the car market is likely to experience sales growth towards the end of this year. Obstacles to registration activities are being removed, and the second quarter will see a gradual relaxation of monetary policy.
Currently, interest rates on the market have begun to decrease after the State Bank of Vietnam lowered operating interest rates on April 3 by up to 0.5 per cent per year, creating advantages for consumers considering a purchase.
Meanwhile, many businesses anticipate a return of growth momentum if the government makes tax cuts for the remaining quarters of this year. In March, the government tasked the Ministry of Finance and the Ministry of Industry and Trade with examining registration fee incentives and extending the payment of excise tax on domestically assembled vehicles to alleviate difficulties for businesses.
In Vietnam, it is customary to provide enterprises with temporary tax incentives for vehicles. In 2022, a 50 per cent cut in registration fees until June 2022 contributed to the Vietnamese market’s consumption of automobiles surpassing 500,000 units for the first time.
North-South express railway project could include freight transport function
The State Appraisal Council has proposed that the Ministry of Transport add a new option to use the high-speed railway to carry both passengers and cargo, instead of just passengers as planned.
Following the State Appraisal Council’s request, the railway project’s management board, consultant and relevant units were asked to supplement the second scenario for the expressway railway construction to have a basis for comparing the two options.
The main supplemented contents include adding the function of freight transport, building a new railway on the North-South axis using a double track with a width of 1,435 mm, and upgrading and electrifying the express railway to make it in line with Vietnam’s commitments made at COP26 for passengers and freight transport.
The railway route in the second scenario is the same as previously agreed with localities. With some localities requesting adjustments, the Railway Project Management Board, the consultant, will work with the localities to reach an agreement on the route and cargo stations for the new scenario.
According to its previous report on the pre-feasibility study, the North–South express railway would be used to carry passengers at an operating speed of 320 kph. The project, which needs around US$58.71 billion in investment, will have 80% of its capital funded by the State budget and the remainder being sourced from the private sector.
The project is expected to be completed by 2045.
Over 200 firms to attend HCM City international exhibition of food and beverages
More than 200 domestic and international firms are expected to gather at the Ho Chi Minh City international exhibition of food and beverages, scheduled for June 28 to June 30, heard a press conference held on May 19.
The expo will open with the theme of "Connecting values for mutual development", with a range of products on display belonging to the food category, cutting-edge equipment and technologies for food production, processing, packaging, and preservation.
The event will also contribute to honouring Vietnam's high-quality products, introducing its unique culinary culture in order to boost exports, as well as supporting firms to overcome difficulties caused by the impact of COVID-19 as they seek to gradually stabilise production activities.
Nguyen Dang Hien, vice president of the Ho Chi Minh City Food and Foodstuff Association (FFA), said the exhibition will open up fresh opportunities for the southern city’s enterprises as they try to expand trade exchanges and introduce Vietnamese-branded products to domestic, regional, and international markets.
Simultaneously, it will help businesses take the initiative in researching high quality products as they strive to compete in the domestic and foreign markets, he noted.
Vietnam, Israel speed up signing of FTA to boost exports
Minister of Industry and Trade Nguyen Hong Dien hosted a meeting on May 19 alongside Israeli Ambassador to Vietnam Yaron Mayer to update both sides on the legal review of documents under the free trade agreement (FTA) between the two countries, as well as other legal procedures as they prepare for the signing.
Accordingly, Minister Dien affirmed that the Vietnamese side will continue to actively co-operate alongside Israel in order to put the trade pact into effect soon and bring practical benefits to businesses of both sides.
With regard to other bilateral trade issues, Minister Dien suggested that the two countries continue to strengthen co-operation in accelerating trade and investment promotion, send businesses to attend trade events, as well as actively building a mechanism for sharing information on policies and technical regulations in order to facilitate import and export activities moving forward.
Furthermore, the Vietnamese Minister underlined the need to augment co-operation in the fields such as high-tech equipment, biotechnology, agricultural product processing, food, as well as expanding co-operation in potential fields for mutual benefits.
Minister Dien called for Israeli businesses to invest more in industrial production projects, especially high-tech, biotechnology and information technology, consumer and food industry, industrial environment treatment, start-ups, innovation, vocational training, and technology transfer.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
.svg){kind=icon}
