The Ministry of Finance is taking measures to better develop the corporate bond market safely and effectively.

Accordingly, the ministry is drafting a circular to establish a private corporate bond market for professional securities investors.

It is also upgrading a corporate bond information page and a listing and trading system of corporate bonds.

In order to strengthen the inspection and supervision of the corporate bond market, the ministry has directed the State Securities Commission to inspect the supply and demand of corporate bonds at ten securities companies in October 2021.

The ministry also inspected enterprises, whose bond issuance was large or without collateral and had weak financial strength, to give timely warnings to investors and service providers.

To enhance the transparency in capital mobilisation through bond issuance, the ministry is considering a proposal to amend Decree No 153/2020/NĐ-CP on the offering and trading of corporate bonds in the domestic and international markets to limit enterprises from issuing a large amount of bonds without using the mobilised capital to serve production and business.

According to experts, the Vietnamese corporate bond market has room to expand in the future as its size remains small compared to other regional countries. Corporate bonds are an important capital channel for enterprises, especially real estate firms, but have developed unsustainably.

Do Ngoc Quynh, Secretary General of the Vietnam Bond Association, suggested Vietnam should set tight rules to diminish the negative impact of corporate bond products, while constructing flexible regulations for bond issuance to effectively manage and supervise the corporate bond market.

Ensuring the healthy development of the bond market and the capital market requires the synchronous development of all components participating in the market, including State management agencies, businesses, and investors, according to Quynh.

While developing the equity market, market regulators must ensure effective operation and necessary management over the market. If the management is too tight, the market cannot develop, but if the regulations are too loose, a crisis can occur, thus management agencies must always observe and adjust the policy as needed.

Businesses issuing bonds publicly would have wider access to investors but also have to bear greater responsibilities, such as transparent information disclosure, and ensuring credit ratings, Quynh said./. 

Shares retreat as real estate stocks fall sharply

Shares lost ground on Wednesday due to the sharp fall of large-cap and mid-caps in the real estate group, pressuring the overall market.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) lost 0.56 per cent to close at 1,444.30 points. The index had risen 0.94 per cent to close Tuesday at 1,452.46 points.

The market's breadth turned negative with 328 stocks declining, while 144 rose.

Liquidity rose to a new record high with more than 1.5 billion shares traded on the southern bourse, worth VNĐ43.2 trillion (US$1.9 billion).

The 30 biggest stocks tracking VN30-Index gained 0.61 per cent to 1,530.65 points. Thirteen in the VN30 basket increased, while 15 declined and two ended unchanged.

In the VN-30 basket, the worst performers were Novaland (NVL), Vinhomes (VHM), Vietnam National Petroleum Group (PLX) and Bảo Việt Holdings (BVH).

Real estate and construction stocks witnessed a dramatic drop in prices as a series of large-cap stocks plunged such as Kinh Bắc City Development Holding Corporation (KBC), Hà Đô Group JSC (HDG), Nam Long Group (NLG), Hòa Bình Construction Group Joint Stock Company (HBC) and Viglacera Corporation – JSC (VGC).

A number of other smaller caps also dropped such as LDG Investment JSC (LDG), Tân Tạo Investment and Industry Corporation (ITA), Hoàng Quân Consulting-Trading-Service Real Estate Corporation (HQC), Thủ Đức Housing Development Corporation (TDH), Vạn Phát Hưng Corporation (VPH), Licogi 16 Joint Stock Company (LCG) and FECON CORPORATION (FCN).

“After gaining slightly more than 11 points at the beginning of the morning session, strong profit-taking pressure caused the VN-Index to suddenly drop more than 20 points,” said BIDV Securities Co.

“After that, despite the support of the banking industry, VN-Index ended the session down more than 8 points compared to that of Tuesday.

“Market breadth tilted to the negative side as the number of losers was twice as many as the number of gainers. If in the coming sessions the market continues to decline with great liquidity, VN-Index is likely to return to test the old peak of 1,420.

“Regarding the transactions of foreign investors, today they net bought on the HoSE and net sold on HNX,” it said.

Foreign investors net bought VNĐ282.48 billion on HOSE, including Hòa Phát Group (HPG) with VNĐ266.21 billion, Geleximco (GEX) with VNĐ85.35 billion, Vinhomes (VHM) with VNĐ64.87 billion. Foreign investors were net sellers on HNX with a value of VNĐ13.35 billion.

Meanwhile, the HNX-Index on the Hà Nội Stock Exchange (HNX) lost 1.98 per cent, to 415.71 points. The index had increased 2.06 per cent, to end Tuesday at 424.11 points. 

During the trading session, investors poured VNĐ5.2 trillion into the northern market, equivalent to a trading volume of 216.1 million shares. 

Vietnam to have 28 airports by 2030

Vietnam is set to have a total of 28 domestic and international airports nationwide by 2030 that will have a design capacity of serving 278 million passengers annually.

Half of the total will be international terminals, according to a recently approved master plan on the national airport network towards 2030 and a vision ahead to 2050.

Experts of the appraisal council agreed to go ahead with a plan to build Hai Phong International Airport to replace the current Cat Bi Airport by 2030 which has been approved by the Prime Minister.

They also suggested that feasibility studies for new airports on Ly Son island in the central coastal province of Quang Ngai and Phu Quy island in the south central province of Binh Thuan be conducted and submitted to the Prime Minister for consideration.

The plan regarding seeking locations for a second airport in Hanoi will also be studied after 2030.

The appraisal council also agreed with a plan to expand Hanoi-based Noi Bai International Airport to make it capable of serving 100 million passengers per year by 2050.

The council noted that, besides Cao Bang Airport, Vietnam should have more airports in some localities that have great demand for tourists, such as the northern mountainous  province of Ha Giang, in order to meet the country’s socio-economic development strategy.

Vietnam, Australia announce enhanced economic engagement strategy

Vietnam and Australia will accelerate trade and investment levels from 2021-2025, through a new economic strategy bringing their burgeoning commercial ties into sharp focus.

According to a media release issued on November 3, Australian Prime Minister Scott Morrison announced that he and his Vietnamese counterpart Pham Minh Chinh had a discussion on the sidelines of the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow, Scotland, the UK.

They announced the Australia-Vietnam Enhanced Economic Engagement Strategy, which supports Australia and Vietnam’s shared goal to double investment and become top ten trade partners.

The strategy will help both countries take advantage of emerging market opportunities, including in agriculture, energy, services and the digital economy, as the two economies recover from the impacts of the COVID-19 pandemic.

The development of the strategy represents close collaboration and considerable work by both countries, including economic analysis, cross government consultation and recommendations put forward by business stakeholders.

It highlights key sectors in which Vietnam and Australia are uniquely matched to deepen trade - education, skills and training; resources and energy; agriculture, forestry and fisheries; manufacturing; tourism; science, technology and innovation; digital economy; and other services.

An Implementation Plan for the Strategy has been agreed by both governments, providing a roadmap for practical initiatives to deepen trade and investment links in key sectors, over an initial period of 2021-2025./.

PM's France visit expected to open up cooperation chances: La Tribune

Vietnam and France are set to ink agreements in the fields of aerospace, infrastructure, renewable energy and high technology during Prime Minister Pham Minh Chinh’s visit to France from November 3-5, in addition to strengthening health cooperation, La Tribune financial newspaper reported.
 
PM Chinh's visit to France will take place in the particular context as the COVID-19 pandemic has been developing complicatedly in Vietnam. Therefore, vaccine diplomacy will be among the key focuses of the trip.

The Vietnamese PM is due to visit the Pasteur Institute and Sanofi research and development centre in Vitry-sur-Seine.

He will meet with representatives of the France-Vietnam Medical Federation, which was set up in 2015 with some 20 associations and experts in medical personnel training, experience sharing and medical supplies.

Vietnam presented hundreds of thousands of face masks to France when the European nation had yet to ready to cope with COVID-19. In return, last September, France donated 672,000 doses of AstraZeneca COVID-19 vaccine to Vietnam. 

Medical support at this time will further contribute to their bilateral relations. The two countries will celebrate the 50th founding anniversary of diplomatic relations and 10 years of strategic partnership in 2023, helping France assert its economic presence in the Indo-Pacific.

The newspaper went on to say that trade cooperation is one of the major driving forces of the Vietnam-France relations. 

France is the third largest European investor in Vietnam and the third donor of official development assistance (ODA) for the Southeast Asian nation.

About 300 French companies are operating in the Southeast Asian country, in particular in infrastructure, environment, industry, distribution, services and health. Over the past decade, the bilateral trade value has quadrupled, reaching 7.2 billion EUR (about 8.3 billion USD) in 2019. Due to impacts from the health crisis, two-way trade plunged to 6.3 billion EUR last year. 

Some mega-contracts will probably be signed in various fields, which will benefit big French groups such as Airbus, Thales, EDF, Total or Air Liquide. Those groups have committed to engaging in investment projects in Vietnam, according to the newspaper.

The Vietnamese PM's visit to France will be an opportunity to promote bilateral trade relations, the newspaper wrote.

Vietnam is seeking access to the French and European markets for its agricultural and aquatic products such as rice, coffee and shrimp. 

For more than 20 years, the two countries have seen exchanges in the military, cultural and educational fields. 

Vietnam and France have initialed most of the legal documents necessary for the deepening of their cooperation, including the framework agreement on economic cooperation, the agreement on investment promotion and protection, and the agreement on double taxation avoidance, among others.

The two nations have coordinated and cooperated in international and regional forums such as the United Nations, the Asia-Europe Meeting (ASEM) and the International Organisation of La Francophonie (OIF)./.

Health Ministry points out five weaknesses in COVID-19 prevention

The Ministry of Health has highlighted five shortcomings in the prevention and control of the fourth COVID-19 wave, including in medical facilities and preventive medicine.

According to the Health Ministry, the number of cases in the fourth wave has exceeded all predictions and had a profound impact on social lives, public health and psychology, as well as forcing the suspension of production, jobs and local livelihoods.

Việt Nam has recorded more than 932,000 cases of COVID-19, ranking 40th out of 233 countries and territories in terms of the number of infection cases. From April 27 until now, over 927,000 cases have been confirmed. More than 821,000 patients have recovered.

The weaknesses in facing the fourth COVID-19 wave include shortcomings in grassroots healthcare facilities, preventive medicine and the mobilisation of available sources in many localities.

The Health Ministry said local authorities did not prepare enough for communication campaigns to report pandemic developments to the public. In the early days, the application of technology was not effective. The direction and administration at all levels were sometimes inconsistent and passive.

The current legal documents do not cover all the scenarios in response to the outbreak. Some regulations show conflicts and are being amended, causing delays which leads to public frustration.

Meanwhile, the social security work has not been ensured in a number of localities, especially in social distancing areas, the Ministry said.

One of the reasons for the shortcomings is the fast-spreading Delta variant, particularly as vaccination rates in the first phase of the pandemic wave remained low.

The Ministry said a surging number of infections in a short space of time led to an overload of the medical system and an increase in fatalities.

As of November 2, Việt Nam reported more than 22,200 deaths from COVID-19, which equals 2.4 per cent of the number of infection cases. This is higher than the global average of 2.06 per cent. 

More than 80 per cent of people from 18 years old have been inoculated with one vaccine shot. About 34 per cent of people aged above 18 have received two doses.

Ten localities have vaccines fully covering more than 95 per cent of their population aged above 18.

Almost none of the people who have been given a vaccine and later caught COVID-19 have been seriously ill, according to recent surveys by the health departments of Hải Dương Province and Hà Nội. 

Prime Minister Pham Minh Chinh meets UK business community

Prime Minister Pham Minh Chinh met with representatives from more than 40 UK enterprises in Edinburgh, Scotland, on November 3 (local time).

The businesses are operating in the spheres of finance, banking, investment and asset management, auditing and insurance.

In his remarks, the PM emphasised Vietnam’s views on investment cooperation that is based on the harmony of interests and the sharing of risks.

Regarding investment opportunities and advantages in Vietnam, he said the country has a stable political environment, with a foreign policy of self-reliance, diversification and multilateralisation, and being a good friend, a reliable partner, and a responsible member of the international community.

Vietnam is integrating intensively and extensively into the world, as the country has signed 17 free trade agreements, including those with major markets, according to Chinh.

He also introduced Vietnam’s consistent policy towards investors, along with its advantages in terms of human resources, natural conditions, social settings and sustainable development policy.

At the meeting, VinaCapital General Director Don Lam, said Vietnam is expected to restore its growth trend strongly and have many investment opportunities after the COVID-19 is brought under control.

According to Don Lam, the participating businesses that own more than 1 trillion USD would invest some 10 billion USD in Vietnam.

Prior to the meeting, the PM had a separate meeting with Don Lam, during which he called on VinaCapital to pour investments not only into the stock market but also financial centres in Vietnam.

The leader was in the UK from October 31 to November 3 to attend the 26th United Nations Climate Change Conference of the Parties (COP26) and pay a working visit to the UK at the invitation of his counterpart Boris Johnson./.

HCM City's firms in need of capital injection soon

Enterprises are in desperate need of capital to resume operations, said business leaders and experts.

As the end of the year approaches, businesses have been ramping up efforts to get back into the game, especially to meet greater demand for goods and services in the upcoming holidays.

Ho Chi Minh City's food producers must secure a large amount of capital soon so they can stockpile raw materials and plan their production in anticipation of Christmas and traditional Tet holidays, said Ly Kim Chi, Chairwoman of the HCM City Food and Foodstuff Association.

A capital injection is especially vital at this point because most businesses have run out of what little emergency funds they had during the lockdown as it was costly to keep production running using the three-on-site method, which required businesses to provide workers with accommodation, food and COVID-19 tests.

Do Phuoc Tong, President of the HCM City Mechanical and Electrical Enterprise Association, said securing bank loans would likely prove to be a challenge for most small-to-medium-sized enterprises as they lack assets to put up as collateral.

Businesses had asked commercial banks to relax regulations to support businesses during the pandemic.

"The majority of mechanical and electrical firms are those who have developed slowly over time from small businesses and as such, they often have a solid foundation and strong expertise. While said firms rarely go under, commercial banks aren't particularly interested because of their low-profit margin," said Tong.

Nguyen Quoc Anh, President of the HCM City Rubber and Plastic Association, said the association members had been struggling to cope with higher input prices, as much as a 20 percent increase, since the beginning of the year. There has been a shortage of raw materials as the global economy was recovering, which will likely drive prices up even further. To make matters worse, other costs including COVID-19 prevention and logistics have also been climbing.

Meanwhile, demand had not fully recovered and sales had been slow, which severely affected cash flow. The grim situation was expected to last at least until the end of the year.

"As of now, most of our members have run dry on cash to meet their financial duties. We have asked commercial banks to consider granting credit extensions and debt restructuring, especially in support of domestic businesses," said Anh.

There is still room to give additional credit to businesses in HCM City, according to Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam's (SBV) HCM City branch.

Minh said since the beginning of the year, credit growth in the country's largest economic hub was recorded at 6.41 percent. By the central bank's projection, credit growth for the whole year would likely hit 12 percent, giving banks a lot of room to manoeuvre during the last quarter of the year.

Commercial banks said they were to cut interest by 1 percent along with waiving banking fees, a move that has been well received by the business community. By SBV's estimation, 400,000 businesses were to benefit from this support package.

"We have demanded banks to give all the support they can to help with economic recovery and to support businesses. The SBV will stay committed to seeing banks fulfilling their pledges and those who failed in doing so will face sanctions," said Minh.

Another of SBV's priorities in the months to come is to help connect businesses and banks. So far, a number of commercial banks have pledged to support businesses with 70 trillion VND (3.07 billion USD) in low-interest loans during the last quarter of the year.

Regarding some businesses' inability to provide collateral, Minh said the SBV had been working on a number of alternative methods to allow both businesses and banks to overcome current regulatory hurdles./.

Up to 95% of HCM City firms register to reopen

Around 95 percent of enterprises in HCM City have registered for the resumption of operations after a long halt due to the Covid-19 pandemic.

By November 1, 1,342 out of 1,412 businesses in local industrial parks and export processing zones had registered for operation again. In Saigon Hi-tech Park alone, all 88 enterprises with 145,000 workers have resumed their operations.

 

 

Meanwhile, some 6,500 companies located outside the city’s industrial parks and export processing zones have also been reopened.

The information was given by Nguyen Thi Kim Ngoc, deputy director of the HCM City Department of Industry and Trade at a press conference about the Covid-19 pandemic in the city on November 1.

Pham Duc Hai, deputy head of the HCM City Covid-19 Steering Board for Covid-19 Prevention and Control said that the city’s rate of low-risk Covid-19 infection areas (green zones) now accounts for 45 percent.

Specifically, districts 3, 11 and 12 and the districts of Binh Tan, Binh Thanh, Phu Nhuan, Binh Chanh, Nha Be and Hoc Moon have medium risks (yellow zones). Meanwhile, Thu Duc and other 12 remaining districts have the low risk areas (green zones).

To date, over 445,000 out of the city’s 780,000 children aged 12-17 have been vaccinated against Covid-19.

Nike Vietnam ramp production and carbon commitments back up to pre-pandemic levels

After cutting their capacities due to pandemic, all Nike facilities in Vietnam resumed production, reinstating the company's commitment to the Vietnamese market and its carbon emissions reduction path.

Nike’s chief sustainability officer Noel Kinder shared at a meeting with Prime Minister Pham Minh Chinh on the sidelines of the COP26 Conference in Glasgow that all of Nike's nearly 200 factories in localities that were disrupted by COVID-19 had returned to production according to newswire baochinhphu.vn.

Previously, the plant closures in Vietnam, where almost half of all Nike footwear are produced, have added to the strain on global supply networks.

It will likely take some time until the group can ramp back up to full production in Vietnam but it invalidates rumours that Nike could run out of sneakers made in Vietnam due to COVID-19.

At the same time, Nike is working towards its sustainability goals, including powering its owned and operated facilities worldwide with 100 per cent renewable energy by 2025

Noel Kinder who had been three years in Vietnam posted on his Linkedln: “I am also very proud of the work the Nike team has in Vietnam, including working with manufacturers to install solar systems on the roofs of their factories. However, what excites me the most is the common desire of all parties to do more to protect our planet.”

He added: "The importance of this country is the reason we work with policy makers and stakeholders, such as the Electricity Regulatory Authority of Vietnam (ERAV) under the Ministry of Industry and Trade and the Program. Vietnam's Low Emission Energy (VLEEP), funded by USAID, aims to work towards a policy that allows producers to purchase renewable electricity directly from power companies."

“And that is why we highly appreciate the initiatives that Vietnam is taking to promote the renewable energy sector, including: Prime Minister's Decision No. 13/2020 / QD- TTg dated 6/4/2020 on encouraging solar energy development in Vietnam; Circular No. 18/2020 / TT-BCT dated July 17, 2020 of the Ministry of Industry and Trade on project development and sample PPA applicable to solar power projects; And the recent draft circular of the Ministry of Industry and Trade on the pilot program of the direct selling and buying mechanism (DPPA),” he shared.

Removing bottlenecks to attract FDI inflows from Europe

Vietnam must strive to remove hurdles and deploy synchronous measures aimed at creating a healthy business climate to attract high-quality foreign direct investment (FDI) projects, including those from Europe, according to industry insiders.

European investors have so far invested over US$22 billion in numerous FDI projects in Vietnam, including several of high quality, a factor which has significantly contributed to sustainable development in the country over recent times, said Vu Van Chung, deputy director of the Foreign Investment Agency (FIA).

FIA statistics show FDI inflows into Vietnam during the initial 10 months of the year reached US$23.74 billion, of which nearly US$1 billion came from the EU, despite the complex nature of the COVID-19 pandemic.

He noted that Vietnam’s strong commitment to promoting transparency and openness in the business climate has lured high-quality investment capital from the developed EU nations, which have benefited business communities of both sides.

Nguyen Hai Minh, vice president of the European Business Association in Vietnam, pointed out that Vietnam enjoys numerous advantages in terms of FDI attraction, especially in the current trend of shifting FDI inflows, noting that despite various COVID-19 challenges, European investors have chosen not to withdraw their capital from the country.

Minh emphasised that European enterprises tend to inject money into high-added value projects and move some research & development centres to Vietnam. Seaports, road traffic, and energy make up key industries that have captured attention of European businesses.

Meanwhile, Nguyen Xuan Thang, managing director of Schaeffler Vietnam, said the group has chosen Dong Nai to build its largest factory, with a total investment in the first phase reaching EUR45 million due to the country’s advantages in human resources, investment incentives, and involvement in the EU-Vietnam Free Trade Agreement (EVFTA).

Thang went on to reveal that the group will begin construction of the second phase of the factory, which is expected to act as a global production hub for a wide range of industrial products.

To woo quality investment projects from Europe, Nguyen Thi Huong, general director of the General Statistics Office (GSO), suggested that Vietnam pay closer attention to investors’ requirements in terms of openness, stability, and transparency in the legal system as a way of protecting the legitimate rights and interests of financiers.

In addition, she said Vietnam should prioritise strategic investors involved in global production chains, with a primary focus on high-tech and technology transfer projects.

Denmark’s Orsted eyes offshore wind power project in Hai Phong

Orsted Group of Denmark has made a proposal to invest between US$11.9 - 13.6 billion in an offshore wind power project with a total capacity of 3,900 MW in Hai Phong city.

The project will be located 14 km far from Bach Long Vy island to the southeast, 36 km far from Long Chau archipelago to the northwest and less than 100km from the mainland.

The offshore wind power project is considered to fall in line with the orientation of the Vietnamese national energy development strategy which gives priority to the exploitation of renewable energy sources.

The proposal was put forward during a working session held on November 2 between representatives of the Danish Embassy in Vietnam and Nguyen Duc Tho, vice chairman of the Hai Phong administration.

Troels Jakobsen, head of the embassy’s commercial section, expressed his hope that cooperation between Denmark and Hai Phong would continue to be promoted in economics, trade, investment, education, tourism, and green economy transformation.

In response, Tho confirmed that the largest northern port city’s administration always strives to create favourable conditions in which investors can benefit from. He asked investors to give more details about the project to ensure safety for fishing, maritme transport and national security as well.

Orsted, a Danish Government-owned enterprise, is currently the world's largest offshore wind developer, accounting for a total of 29% of global installed capacity and generating 88% of its energy from numerous renewable sources.

Ba Ria Vung Tau emerges as competitive destination for Australian investment

The southern province Ba Ria-Vung Tau in Vietnam has emerged as a foreign investment hub and an ideal location for Australian economic diversification, as well as serving to deepen economic ties with Australia.

This assessment was made in a report recently conducted by the Perth-based USAsia Center as Canberra is recalibrating economic ties in the Indo-Pacific region, shifting its focus on developing trade and investment relations with countries throughout Southeast Asia.

According to the report, Ba Ria-Vung Tau represents an ideal focal point for efforts to upgrade joint economic ties, as new infrastructure development projects such as seaports and airports have made the locality a highly competitive destination for Australian investment.

Kyle Springer, policy fellow at the Perth USAsia Centre, attributed the locality’s strengths to the presence of numerous Australian businesses, developed infrastructure, geographical advantages, as well as diplomatic and economic frameworks between the two countries.

He pointed out that the state of Western Australia also signed a memorandum of understanding (MoU) with Ba Ria Vung Vung last year, aiming to develop closer trade linkages between the administrations and businesses of the two sides.

Recent years has seen the Vietnam-Australia trade value enjoy a steady increase, accounting for 15% of the total trade turnover between Australia and ASEAN last year.

The report outlines that with the implementation of the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam – Australia trade ties are anticipated to witness robust growth moving forward.

Restaurants in HCMC struggle to find staff

After authorities in Ho Chi Minh City allowed restaurants to resume dine-in service on October 28, these establishments are operating at about half of their capacity on these days facing a massive staffing shortage as laborers returned to their hometowns.

Across the city, restaurants are hurting for workers; therefore, recruitment notice of service staff, sales staff, assistant workers outside restaurants and business establishments are easily seen on many roads in Ho Chi Minh City. Most restaurants are recruiting employees to work in shifts, part-time as per hour, or fixed wages ranging from VND 4 million - VND6 million.

Mr. Nguyen Van Hai, the owner of a rice eatery in No Trang Long Street near the Oncology Hospital in Binh Thanh District, said that he has posted a notice board looking for laborers working in shifts since the beginning of October with a good salary and free lunch; however, almost a month has gone by with no one coming to apply. He disclosed more than 90 percent of the eatery staff have not yet returned to Ho Chi Minh City.

Currently, it is very difficult to recruit employees to work in shifts and part-time jobs, most unskilled workers have returned to their hometowns, and students from schools have not yet come back to schools. He is quite worried because he cannot find waiters and waitresses.

Dang Xuan Son, the owner of Son rice restaurant at 17 Giai Phong Street in Tan Binh District wanted to resume dine-in service after pandemic restrictions were lifted. He hung a job posting looking for an assistant and he discovered that it was extremely hard to find employees to fill those empty slots.

Until now, he still could not find an appropriate staff. The old employees of the restaurant went back to their hometown and decided not to return to the city, so he had to find a new helper to start selling on the spot.

Although the shop has offered lunch packages, accommodation support, bonus money on holidays, and Tet for employees, no one wanted to work, said Mr. Son.

Similarly, Milano coffee shop in alley 908 Nguyen Kiem Street in Go Vap District announced to recruit female waitresses who will work in shifts. According to the owner, although he has posted a recruitment notice for the past few days, no one has contacted him for the job.

Not only shops and restaurants have been struggling to find waiters, dishwashers, cooks, but many other industries are also short of unskilled workers such as bricklayers, painters, maids, babysitters.

Ms. Vo Thi Yen, living in Vinhome apartment building in Binh Thanh District, said: “Over the past week, I have been looking for a domestic worker by the hour, with a salary of more than VND40,000 an hour, but I have not found anyone yet.”

According to preliminary statistics of related agencies, the impact of the Covid-19 pandemic has caused hundreds of thousands of freelance workers to lose their jobs, become unemployed, and they left the city for their hometowns to avoid the epidemic. When Ho Chi Minh City started the "new normal" phase, many establishments and business establishments in the area had a serious shortage of part-time and seasonal workers.

Many eatery owners agreed to offer high pays and free meals and accommodation, but it is still difficult to find satisfied staff. Some restaurant and business owners in Ho Chi Minh City said that hiring temporary and part-time employees at the moment is very difficult because most freelance workers have not returned to the city owning to difficulties in transportation.

Moreover, freelancers are also worried about the lack of temporary accommodation.

In addition, some employees tend to change jobs to hope to stabilize soon, especially during the approaching Lunar New Year. In addition, freelancers and seasonal workers hardly enjoy benefits and regimes such as social insurance contributions, bonuses on holidays, and Tet, so it is difficult to attract workers to return.

Ms. Vo Thi Tien in Luy Ban Bich Street in Tan Phu District who used to be a waitress at a pub on Au Co Street, said that after the epidemic was under control, the pub had not yet been allowed to open; so she decided to seek a new job to settle down soon.

“Currently, I have applied for a job in a garment factory in Binh Tan District. I will go to work early next week,” Ms. Tien said.

For nearly a month, the Ho Chi Minh City Youth Employment Service Center has received recruitment requirements from business establishments in the area to recruit unskilled workers with high and attractive salaries.

Some companies need full-time laborers or laborers working in shifts, the salary ranges from VND15,000-VND25,000 an hour or even VND30,000 an hour. However, a few returnees to the southern metropolis can’t satisfy enterprises’ production demand. Therefore, the authorities need to have a plan to coordinate with businesses and recruitment units and have appropriate remuneration policies to attract the workforce back.

According to Mr. Pham Thanh Truc, deputy head of the management board of Ho Chi Minh City's export processing and industrial zone (HEPZA), around 210,000 workers have returned to work until now and approximately 95 percent of businesses have resumed their manufacturing activities. Thereby, factories and enterprises have not increased their full capacity. Nevertheless, many enterprises are gradually expanding production scale while more workers have come back to the southern largest city.

Vietnamese firms seek to promote farm produce export to Russia, EAEU

A workshop discussing opportunities for Vietnamese businesses to increase export of agricultural and aquatic products to Russia and the Eurasian Economic Union (EAEU) was held by the Vietnam Chamber of Commerce and Industry (VCCI), the Vietnam Trade Office in Russia and the Russian trade representative office in Vietnam, on November 2 in Hanoi.

In his opening remarks, Nguyen Tuan Hai, Director of the International Relations Department of VCCI said the fruitful political and diplomatic relations between Vietnam and Russia will be a foundation and favourable condition for economic, trade and investment relations between the two countries to develop strongly in the coming time.

Since the Vietnam - EAEU Free Trade Agreement (Vietnam-EAEU FTA) officially entered into force in October 2016, the deal has become a solid foundation for trade and investment cooperation between the two countries, he said, adding that this pact also serves as an effective tool and good support for Vietnamese enterprises to promote the export of their strong products, especially agricultural and aquatic products to the Russian market, as well the EAEU.

Tsygankov Kirill from the Russian trade representative office in Vietnam said that economic and trade cooperation is an important factor in the comprehensive strategic partnership between Russia and Vietnam, noting that since the Vietnam - EAEU FTA took effect in 2016, 98 percent of tariff lines have been cut to zero percent.

He spoke highly of the prospect of Vietnam's fresh fruit export to Russia, as the Southeast Asian country boasts a variety of fresh tropical fruits and nutritious vegetables.

He recommended that Vietnamese businesses transport goods to Russia by rail, saying that Russia's railway company and Vietnam's Railway Transport and Trade JSC (RATRACO) have successfully tested a container train connecting Vietnam and Russia via China's territory, which took around 2-3 weeks.

For high-value and perishable goods, air freight may be considered, he said.

In the future, if the exchange of goods increases between the two countries, it is necessary to organize direct transport of goods by sea without having to transit in ports in Hong Kong (China) or China and the Republic of Korea, in order to significantly shorten the time of goods transportation, he said.

Kirill advised Vietnamese enterprises to be more active in promoting their goods in the Russian market through e-commerce platforms.

Vietnam records US$1.1 billion in trade surplus in October

Vietnam’s export turnover is estimated to reach US$27.3 billion in October, increasing one percent year on year and the import turnover reached US$26.2 billion, decreasing 1.7 percent.

The total export and import turnover of goods in the first ten months of the year is expected to reach US$537.32 billion, up 22.2 percent over the same period last year.

Therefore, the merchandise trade balance of Vietnam in October is estimated to gain US$1.1 billion in trade surplus. This is the second month of the year that Vietnam records a trade surplus after eight months in a row of trade deficit.

The information on import-export activities in October and the first ten months of the year was reported by the General Department of Vietnam Customs yesterday.

Building “localization of raw material supply” strategy

Domestic businesses are now facing post-pandemic challenges of the price of raw materials that has increased 2-3 times over the same period last year, late delivery, disruptions in logistics and supply chain leading to high transportation costs.

The “localization of raw material supply” strategy with short-term and long-term solutions is expected to help enterprises actively seek the input.

From the beginning of 2021 to the present, the country’s plastic industry has imported 5.33 million tons of plastic materials worth US$8.86 million, up 9.2 percent in volume and 47.9 percent in value over the same period in 2020.

General Director of Binh Minh Plastics Joint Stock Company Nguyen Hoang Ngan said that around 80 percent of raw plastic materials for manufacturing activities in Vietnam has been imported from China, Thailand, South Korea and Middle Eastern countries.

The import turnover of raw materials and accessories for the textile, garment, leather, and footwear sector was US$19.6 billion, presenting a year-on-year increase of 26.9 percent. China is still the country's main importer of raw materials.

The complicated development of the Covid-19 global epidemic has caused a disruption on production activities of factories around the world and put shipping companies in danger of bankruptcy as well as led to a shortage of raw materials. The price of raw materials has increased from 20-300 percent compared to the 2019. Besides, expenditure on prevention and control activities and production suspension mid the pandemic are causes of a decrease of businesses’ turnover, he added.

Chairperson of directors of the Saigon 3 Garment Joint-Stock Company Pham Xuan Hong noted that the China’s raw-material producing industry now focuses on the recovery of domestic enterprises. Additionally, China’s development trend is not to prioritize the development of industries that cause environmental degradation, making it hard for Vietnamese businesses to find sources of raw materials.

Chairman of the Viet Nam Textile & Apparel Association (VITAS) Vu Duc Giang said that Vietnam has many companies manufacturing raw materials that key export industries in the country need. Yet, domestic enterprises must import raw materials at higher prices due to costs of transport, tariff, and tests for purity, identity, and quality.

The functional units must also offer priority to raw materials investors and launch conditions of the supply ratio to the domestic market to foreign direct investments (FDI) businesses to avoid the surplus of production of domestic raw materials but local enterprises depend on raw materials imported from abroad

The Government needs to boost the building “localization of raw material supply” strategy, select enterprises producing raw materials with a stable export turnover of US$200 million per year and support them to expand production and supply of raw materials

Italian media highlight Vietnam’s important role in ASEAN

Italy’s Marx21 website on November 2 ran an article by Giulio Chinappi, saying Vietnam plays a central role at the 38th and 39th ASEAN Summits.

In his article, Chinappi cited a speech by Prime Minister Nguyen Xuan Phuc at the event, in which the Vietnamese Government leader proposed two key tasks for the Association of Southeast Asian Nations (ASEAN) in the time ahead.

Firstly, ASEAN needs a holistic, synchronous and flexible approach to COVID-19 control with the involvement of the entire community, with people and businesses being the centre and subject, and with the goal of addressing difficulties caused by the pandemic in the spirit of "benefits harmonised, risks shared".

Secondly, the Vietnamese Government leader stressed the necessity for ASEAN to position itself in the world’s reshaping socio-economic relationship, and consolidate its role as the nucleus of dialogue, cooperation and multilateral and multi-layered economic integration processes in the region.

PM Chinh affirmed that all ASEAN member countries wish to build a regional environment of peace, security, stability and cooperation to fight the COVID-19 pandemic, and serve economic restoration and development, according to the article.

The 38th and 39th ASEAN Summits and Related Summits were held in the form of teleconference from October 26-28./.

Hanoi steps up assistance to firms amid COVID-19

A conference will be held in Hanoi on November 6 to seek ways to remove difficulties facing businesses in the capital city amid the COVID-19 pandemic, according to the Hanoi Promotion Agency (HPA).

It will bring together about 150 delegates, including representatives from some ministries, agencies, associations and businesses (excluding foreign-invested firms), the agency said.

The delegates will hear reports on Vietnam’s socio-economic development, and support to enterprises over the past time, along with solutions to restore the city’s economic development. The participating businesses will also share their difficulties on this occasion.

On October 19, the municipal People’s Committee in coordination with the HPA also organised a similar conference for FDI firms in Hanoi.

At the event, the city’s leaders informed the participants about solutions to remove hurdles for FDI enterprises in the coming time, especially in the context of Hanoi entering the “new normal” after the COVID-19 pandemic is controlled./.

Kien Giang province’s exports reach nearly 78 percent of yearly target

The export turnover of Mekong Delta province of Kien Giang hit over 582 million USD, equal to 77.7 percent of the annual target.

Rice was the province’s key product, earning more than 203 million USD. Exports of aquatic products and footwear fetched nearly 201 million USD and over 86.84 million, respectively.

Since the COVID-19 outbreak in mid-July, most of the province’s export enterprises have faced many difficulties in their operation and business activities and many factories and enterprises have to temporarily close. Specifically, enterprises lack raw materials for production and processing, and shortage of labourers due to workers quitting their jobs and disruption of the supply chains. The COVID-19 pandemic made it difficult for local firms to ship products to traditional markets as well as expand consumption to new ones.

However, the COVID-19 pandemic in the province is now under control and the loosening of pandemic prevention measures has created conditions for businesses to gradually restore production and business in new normal conditions. The export market for such items as textiles, footwear, agricultural and aquatic products tend to increase strongly in the last months of the year.

The province focused on supporting businesses in maintaining production and processing especially those in industrial zones to create products for exports.

It also sets up a special working group to remove difficulties for enterprises that were affected by the pandemic in the locality to promote production and economic recovery in the new normal state./.

84 wind power projects put into commercial operation

Eighty-four out of 146 wind power projects signing power purchase and sale contracts with the Electricity Vietnam (EVN) had been put into commercial operation as of October 31, according to a document the EVN had sent to the Ministry of Industry and Trade on Commercial Operation Date (COD) results.

The remaining 62 projects with a total capacity of 3,479MW could not become operational before November 1, the date the feed-in tariff (FIT) for wind power expired under Decision 39/2018/QD-TTg.

Restriction measures induced by the recent resurgence of the COVID-19 pandemic have affected the pace of construction of many wind power plants.

Under the decision dated September 10, 2018 amending and supplementing several regulations on incentives for wind power projects in Vietnam, fixed preferential price of offshore wind power is 2,223 VND (9.8 US cents) while that of inland wind power is around 1,927 VND (8.5 US cents), excluding VAT.

The above prices are applied to wind power projects with a part or the whole plant having commercial operation date before November 1, 2021 and applied for 20 years from the date of commercial operation.

EVN said wind power plants are capable of playing a remarkable role in ensuring supply security for the national grid./.

COP26: EU supports green economic recovery in ASEAN

Director-General for International Partnerships at the European Commission Koen Doens has highlighted the crucial role of programmes such as the ASEAN Catalytic Green Finance Facility (ACGF) in supporting green recovery in Southeast Asia.

According to the Delegation of the European Union (EU) to ASEAN, Doens stated this at the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow, the UK on November 2.

He said the ACGF, which was established by the ASEAN Infrastructure Fund and managed by the Asian Development Bank (ADB), will receive a contribution worth 50 million EUR (over 57.9 million USD) from the EU.

With pledges from the European Investment Bank (EIB), Germany’s Kreditanstalt für Wiederaufbau (KfW), the Agence Française de Développement (AFD), and the Italian state lender Cassa Depositi e Prestiti, the total contribution of Europe to the ACGF now reaches 783 million EUR (906 million USD).

Support from development partners for the ACGF is expected to mobilise 7 billion EUR for low-carbon and climate-resilient infrastructure projects in Southeast Asia, accelerating the region’s post-pandemic recovery.

To date, co-financing partners have pledged a total of 1.7 billion EUR (8.11 billion USD) to the facility.

Doens said the ACGF will help ASEAN countries build greener, fairer, and more sustainable economies, adding that the EU and its member states are committed to supporting a comprehensive and environmentally friendly post-pandemic recovery in the region.

The contribution to the ACGF is part of EU-ASEAN cooperation on environment and climate change under the Strategic Partnership, which, in addition to sustainable finance, includes biodiversity; forest governance, law and trade; sustainable use of peatlands and haze mitigation; emergency response; and smart cities./.

Measures sought to promote private investment in green growth

A workshop on enhancing the role of private investment in green growth for the 2021-2030 period was jointly held by the Central Institute for Economic Management (CIEM) and the German development cooperation agency (GIZ) on November 3.

This workshop is part of activities within the framework of the “Macroeconomic Reforms/Green Growth Programme” implemented by GIZ in Vietnam under the authorisation of the Federal Ministry for Economic Cooperation and Development (BMZ). 

According to deputy director of CIEM Nguyen Hoa Cuong, businesses are both subjects and partners in the issues of global warming, environmental pollution and natural resources degradation, therefore attracting private investment in activities towards promoting green growth will contribute to realising Vietnam’s green growth strategy and commitment to reduce greenhouse gas emissions.

Green growth is a very important issue and an inevitable trend for long-term development of the world and Vietnam in particular, he noted.

Michael Krakowski, Director and Chief Technical Advisor of the Macroeconomic Reforms/Green Growth Programme in Vietnam, said that Vietnam is experiencing rapid economic growth but also suffering negative impacts from climate change, air and environmental pollution.

This is a huge challenge that requires timely and effective response measures to ensure sustainable development, he said, adding that Vietnam needs to persistently popularize and support clean production on a large scale and expand investment in clean and renewable energy development. 

Meanwhile, Dr. Ho Cong Hoa, a representative of the CIEM’s research team, said that it is necessary to have a consensus in opinions on building and completing a legal corridor, mechanisms and policies towards encouraging private enterprises to invest in green growth and environmental protection. 

He proposed the Government and relevant agencies issue a pilot mechanism to implement projects in the form of public-private partnership (PPP) in water and waste collection and treatment and water supply in rural areas.

Besides, it is necessary to force polluters to pay, and accelerate administrative reform to ensure a transparent and fair investment environment for private firms in this field, he added. 

Participants also mentioned shortcomings and weaknesses in formulating and implementing solid waste treatment plans, and unstable power purchasing and selling policies, saying that these are reasons that affect the access, investment and implementation of private-funded projects to serve the goal of green growth.

The Government needs to synchronously carry out solutions to create an attractive investment environment, improve the legal framework quality and capacity in realising policies to attract private investment in green growth in the 2021-2030 period, they said./.

Workshop seeks ways to sustainably promote sea-based economy

A scientific workshop on measures to promote sustainable maritime economic development took place on November 2 in Hanoi.

The event was jointly organised by the Institute of Human Geography under the Vietnam Academy of Social Sciences (VASS) and the Vietnam Geography Association.

Experts said that Vietnam has made great achievements in sea-based economic development but it has yet to fully tap strengths of maritime resources.

Maritime economic sectors using non-renewable resources such as oil and gas industry have significantly contributed to the country’s GDP but these natural resources are running out, they noted.

Participants said Vietnam needs to enhance exploitation and use of clean and renewable energy resources from the sea, and focuses on building and perfecting financial mechanisms with tax and fee systems related to the use of maritime resources and space./.

Ba Ria-Vung Tau deemed attractive destination for bolstering Vietnam-Australia economic ties

Ba Ria-Vung Tau is an emerging hub for foreign investment and an attractive destination for Australia’s economic diversification as well as for its bolstering economic relations with Vietnam, according to a new report published by Perth USAsia.

Canberra is recalibrating its economic relations in the Indo-Pacific region, with the emphasis placed on building trade and investment relations with Southeast Asian nations.

The report describes Ba Ria-Vung Tau as an ideal focal point for efforts to lift the Vietnam-Australia economic ties. The southern province boasts seaports, a new airport under construction, along with constantly upgraded liquefied natural gas (LNG) import infrastructure in the province and nearby localities, which make Ba Ria-Vung Tau a competitive destination for investors from Australia.

Australia could hardly find any other place more appealing in Southeast Asia, says report author and policy researcher Kyle Springer. The presence of many Australian companies, developed infrastructure, location and diplomatic and economic frameworks between the two countries are among the province’s advantages.

In September 2020, the state of Western Australia signed a Memorandum of Understanding with the Ba Ria-Vung Tau People’s Committee to develop trade and closer linkages between the governments and enterprises of the two sides.

The agreement was the state’s strategic choice, opening a number of economic opportunities not only for Western Australia but also Australia, according to Springer.

Vietnam-Australia trade has grown steadily, accounting for 15 percent of the total trade between Australia and ASEAN in 2020. The bilateral trade is expected to thrive further in the coming years thanks to established economic frameworks, including the Regional Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)./.

Phu Quoc ready to serve international tourists

Phu Quoc island in the Mekong Delta province of Kien Giang now stands ready to welcome tourists with the resumption of business and entertainment activities.

So far, 17 accommodation facilities, including those run by Vinpearl, CEO Group, Sun Group, MIK Group, the Shell and Mercury, along with major travel firms such as Saigontourist, Viettravel Phu Quoc and Jonhs Tours Phu Quoc as well as seven entertainment centres have joined “COVID-19 Vaccine Passport” programme.

A representative from four-star Saigon-Phu Quoc Resort said that all the staff of the facility have been fully vaccinated against COVID-19 and received skill training on ensuring safety for visitors and dealing with arising problems related to the pandemic.

Bui Quoc Thai, Director of the Department of Tourism of Kien Giang, said that the pilot plan to welcome back international tourists to Phu Quoc is divided into two phases.

In the first phase from November 20, 2021 to March 20, 2022, the island aims to serve about 5,000 visitors each month, he said, adding that there is no limitation on the number of passengers. The destination will receive foreign tourists from countries with high level of pandemic safety such as those in Europe, the Middle East, Northeast and Southeast Asia, and Northern America.

International tourists can enter Phu Quoc via charter flights and visit destinations that they registered before arriving. They have to show their COVID-19 vaccination certificate with the second shot injected within 14 days but not more than 12 months until the entry date, said Thai. He said tourists should also give their negative RT-PCR testing result against SARS-CoV-2 that is valid within 72 hours before the departing time.

Thai said that all tourism and entertainment facilities in the island are ready to serve visitors who will also enjoy various promotion programmes from businesses participating in the “Vaccine Passport Programme”.

Phu Quoc is among five localities that implement the pilot scheme to welcome international tourists. The remaining destinations are Khanh Hoa, Quang Nam, Da Nang and Quang Ninh.

Meanwhile, Da Lat city in the Central Highlands province of Lam Dong has become bustling again with a large number of visitors.

The provincial Department of Culture, Sports and Tourism on November 2 reported that in three days from October 29-31, the locality welcomed 2,606 visitors who stay for nearly two days on average.

In recent days, checkpoints in entrances to Lam Dong from Ho Chi Minh City and southeastern localities reported more than 2,100 vehicles entering the province, showing good signs in tourism recovery./.

Ba Ria-Vung Tau IPs enjoy good signs in investment attraction

Despite COVID-19 impacts, industrial parks (IP) in the southern province of Ba Ria-Vung Tau have seen good signs in investment attraction, according to the provincial IP Management Board.

According to the board, since the beginning of the year, the IPs drew 44 new projects worth 931.42 million USD, including 32 domestic-funded and 12 foreign invested projects.

Alongside, 252.04 million USD was added to 21 underway projects, the board reported.

The result pushed the total investment that the IPs has lured so far this year to 1.18 billion USD, equivalent to 185 percent of the plan and 141 percent of the figure recorded in the same time last year.

As of the end of October, Ba Ria-Vung Tau attracted 503 valid projects to local IPs, including 246 domestically-invested and 257 foreign invested projects. They occupy 65.7 percent of total area of 12 operating IPs.

The board said that due to impacts of COVID-19, investors in infrastructure projects in local IPs have yet to be able to make large investment.

It said that in order to get ready to host investors when COVID-19 is put under control, the local government has offered support to IPs by creating optimal conditions for them in seeking investment opportunities in the locality and in carrying out administrative procedures related to investment, and by preparing a clean land fund./.

Workshop seeks ways to sustainably promote sea-based economy

A scientific workshop on measures to promote sustainable maritime economic development took place on November 2 in Hanoi.

The event was jointly organised by the Institute of Human Geography under the Vietnam Academy of Social Sciences (VASS) and the Vietnam Geography Association.

Experts said that Vietnam has made great achievements in sea-based economic development but it has yet to fully tap strengths of maritime resources.

Maritime economic sectors using non-renewable resources such as oil and gas industry have significantly contributed to the country’s GDP but these natural resources are running out, they noted.

Participants said Vietnam needs to enhance exploitation and use of clean and renewable energy resources from the sea, and focuses on building and perfecting financial mechanisms with tax and fee systems related to the use of maritime resources and space.

Ten-month state budget collection meets over 90% of estimate

Total state budget collection in the first ten months of 2021 fulfilled about 90.9% of the estimate and was up 5.5% year-on-year, showed data released by the Ministry of Finance’s Department of State Budget.

Of the sum, the domestic collection met some 87.9% of the estimate and increased by 1.9% annually.

Revenue from crude oil and import-export activities went up 12.5% and 27.7% on-year and exceeded the estimates by 43.6% and 6.6%, respectively.

According to the ministry, between January and October, 53 localities saw domestic collection meeting over 83% of the estimate and 41 localities posted higher figures compared to the same period last year.

Meanwhile, state budget spending during the period was equal to 68.1% of the estimate, with a significant amount poured into COVID-19 prevention and control and impact mitigation nationwide. The disbursement of development funding remained slow, reaching only 55.8% of the plan assigned by the Prime Minister.

Northernmost province striving to attract visitors in new normal

With great advantages and attractive tourism products, the northernmost province of Hà Giang has been striving to meet visitors’ changing demands when entering the new normal stage.

Located at the highest latitude in Việt Nam, Hà Giang is neighboured by Cao Bằng on the east, Tuyên Quang on the south, Lào Cai and Yên Bái on the west. It shares a 274km border with China

Hà Giang's complicated topography is divided into three areas. The area on the south has rocky mountains, separated by rivers. The west area has sloping mountainsides, high passes, valleys, and narrow springs. The low land area includes hills, the valley of Lô River, and Hà Giang Town.

When visiting the northernmost province, tourists are attracted by the natural landscape, Đồng Văn Highland, and the Love Market of Khâu Vai. They can buy embroidered items like handkerchiefs, bags, and dresses with colourful patterns.

Nguyễn Anh Tuấn, head of the Institute for Tourism Development Research (ITDR), an affiliate of the Vietnam National Administration of Tourism, said that that the province had the potential to offer border tourism, urging mechanisms and investments to promote this kind of tourism.

It was necessary to build and improve infrastructure, for example, roads to better link tourist attraction locations, he said.

Once developing tourism products, the province has to pay proper attention to preserving natural resources and the environment, Tuấn said.

Phùng Quang Thắng, Director of Hanoitourist Travel Company, said after COVID-19, tourists were interested in adventure tourism with activities like caravaning, mountain climbing, paragliding and cave exploration.

Hà Giang had great advantages and potential to offer such adventure tourism products, he said, adding that to develop the products, it was necessary to apply safety standards and technological solutions in managing adventure tourism destinations 

Thắng added that at this time, tours for small groups of tourists were suitable to meet COVID-19 prevention and control measures.

Hà Giang Province should focus on measures to properly manage destinations and develop closed tours that would help ensure safety for tourists, Thắng said.

Phạm Hải Quỳnh, chairman of Việt Nam Community-based Tourism Association, said that as the home of 19 ethnic groups, Hà Giang could offer typical cultural tourism products, especially when local people were engaged more in community-based tourism activities.

Phạm Hồng Châu, director of Hope Travel Company, said that Vị Xuyên National Cemetery and the Monument to heroes and martyrs of Vị Xuyên front could be part of a tour for veterans to revisit a former battlefield.

Tourism zoning

Under the province’s tourism product development strategy, Hà Giang Province developed three key tourist areas, including a low hill tourism space (including Hà Giang City, Bắc Mê District and Vị Xuyên District), a rocky hill tourism area - the global geopark (including districts of Quản Bạ, Yên Minh, Đồng Văn and Mèo Vạc ) and a southwest hilly tourism area (including Hòang Su Phì, Xín Mần and Quang Bình).

In the three tourism areas, the province identified three main tourism product lines - community tourism, cultural tourism, and resort ecotourism.

Nguyễn Văn Sơn, Chairman of the People's Committee of Ha Giang Province, said that although it was a mountainous province with many geographic difficulties, in recent years, Hà Giang has built many tourist destinations.

Therefore, despite being affected by the COVID-19 pandemic, Hà Giang was one of the few localities prefered by domestic tourists. 

Last year, the province welcomed 1.5 million arrivals, an increase of seven per cent compared to the previous year. Its thriving tourism sector created 12,000 jobs, helping to boost socio-economic development.

Nguyễn Thị Hoài, vice director of Hà Giang Province’s Department of Culture, Sports and Tourism, said the province was planning to develop many new types of tourism and tourism products.

For example, a new cultural tourism product featured festivals of ethnic minorities, while adventure tourism offered tours walking on white cliffs, boating on Nho Quế river, paragliding in the rice fields, running a marathon or hot air balloon festivals.

The province also planned to produce border trade tourism products and develop several shopping centres to introduce local agricultural products.

Regarding the strategic orientation of tourism development in Hà Giang Province, Nguyễn Lê Phúc, Deputy Director-General of Việt Nam Tourism Administration, suggested that the province should focus on exploiting the potential of culture, tourism and famous scenic spots to create positive effects on local socio-economic development, improve livelihoods and jobs for people and increase funding for cultural and environmental preservation.

To develop sustainable tourism, it was necessary to continue to perfect mechanisms and policies in planning, human resource development and communication, he said.

He also emphasised the importance of engaging local people in protecting environmental resources and providing tourism services.

Moreover, the province was also urged to develop digital tourism products and boost digital transformation in the tourism industry. 

Phúc said that Hà Giang was one of the top ten provinces in the country in terms of information technology application, a good start for digital transformation there.

“Currently, the Vietnam National Administration of Tourism is also focusing on building a smart tourism ecosystem under the Prime Minister's decision. Two important contents of the smart tourism ecosystem are to build an interconnection axis that connects state agencies in operating the tourism system and to develop a tourism e-commerce trading floor,” he said.

“Businesses and units participate in free e-commerce floors and sell products directly on this exchange, contributing to promoting Vietnamese products to compete with foreign tourist e-commerce floors. If started early, the tourism products of Hà Giang Province will be one of the highlighted ones to introduce and offer to visitors," said Phúc. 

Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan