Total outstanding loans at credit institutions in Ho Chi Minh City were worth nearly 3.36 quadrillion VND (137.7 billion USD) as of September 30, a 0.72% increase from the previous month, according to the State Bank of Vietnam (SBV).

Nguyen Duc Lenh, Deputy Director of the SBV’s Branch in HCM City, said credit growth was fairly high in August and September compared to previous months, consolidating a rising trend.

“This reflects the impact and effectiveness of the credit and monetary policies, along with solutions to support businesses and consumers rolled out by the Government, SBV and HCM City,” he said.

Twenty five meetings have been organised in the city this year to link up banks with businesses, and preferential loan contracts for over 469 trillion VND (19.2 million USD) were signed there, more than exhausting the credit packages the former had registered at the beginning of the year, he said.

Besides, banks have continued to implement the Government’s 2% interest subsidy programme, restructure and roll over loans and lend to the city’s five priority sectors and projects under its investment stimulation programme.

The SBV’s low interest rate policy has not only supported enterprises to reduce costs but also encouraged them to borrow capital for production, trading and market expansion, Lenh said.

Higher economic growth by the country and city, and a strong performance by manufacturing, tourism, services, and increasing exports have also promoted credit growth, he pointed out.

Enterprises are getting more export orders and also preparing for the Tet (Lunar New Year) holidays domestically, resulting in higher demand for credit.

To promote credit growth in the rest months of the year, the SBV said the banking industry would continue to focus on overcoming difficulties and upholding the efficacy of the meetings between banks and enterprises.

Banks would work to ensure credit growth, thus fostering economic growth, it added.

Quang Binh province licences 435 new firms, 25 new projects

The central province of Quang Binh’s Department of Planning and Investment has so far this year granted new registration certificates for the establishment of 435 enterprises, whose capital totals more than 5.24 trillion VND (213.26 million USD).

The provincial authorities have also approved investment proposals for 25 new projects worth 9.9 trillion VND. They have also given the green light to capital adjustment proposals for 45 existing projects.

So far this year, the province has seen 288 firms suspending their operations, 32 voluntarily dissolving, and 185 resuming their operations. Many have opted to reduce their production and business activities, cut working hours, implement alternating work schedules, or reduce their workforce.

With a 116km-long coastline and forest coverage rate of 68%, Quang Binh boasts excellent conditions to become a major tourist destination of Vietnam and Southeast Asia. It is home to Phong Nha-Ke Bang National Park, which has been twice recognised as a World Natural Heritage Site, as well as a system of caves, including Son Doong - the largest cave in the world, along with various beautiful beaches, hot streams and world-class golf courses.

Industrial production to improve in last months of 2023, but hurdles remain: GSO

With the drastic direction of the Government, ministries, sectors and localities, industrial production in the last months of 2023 will improve, according to the General Statistics Office (GSO).

However, hurdles remain and the sector would not be able to regain a high growth rate in the short term, the office assessed.

According to the GSO’s quarterly production and business trend investigation report, 76.3% of enterprises operating in processing and manufacturing forecast their production and business activities in the fourth quarter will be more positive or remain stable compared to the third quarter (39.1% better, 37.2% stable), and the remaining think their operations will be more difficult.

Phi Thi Huong Nga, Director of the Department of Industrial and Construction Statistics under the GSO, said that in the third quarter, low domestic market demand and high competitiveness of domestic products are still the factors that most affect the production and business activities of enterprises.

In addition, Vietnam's major export partners such as the US and the EU have reduced spending on both common and luxury products, resulting in decreases in the number of orders.

According to the Ministry of Industry and Trade, reputable international organisations maintain their positive forecasts on Vietnam’s economic outlook in 2023 and the coming time.

The implementation of policies to help solve difficulties for enterprises, and the State Bank of Vietnam’s moves to loosen monetary policy and reduce interest rates are expected to boost business and production in the coming time.

Representatives of processing and manufacturing enterprises have shown their hope to have electricity, water, and fuel prices stabilised to limit the increase in production costs; while recommending the Government stimulate demand in the domestic market to support them in finding partners to sell their products more effectively.

China Southern Airlines launches daily flights to Khanh Hoa

China Southern Airlines has unveiled that it will increase the frequency of flights from Guangzhou to Khanh Hoa from three round trips per week to one round trip each day, with the new schedule starting from October 29. 

Specifically, flight CZ6049 will depart from Guangzhou Baiyun International Airport at 2:20 p.m. (local time) and arrive at Cam Ranh International Airport at 3:50 p.m.

According to Khanh Hoa province’s Department of Tourism, since the beginning of the year Chinese tourists have begun to return to the locality.

In fact, travel companies that specialise in tapping into the Chinese tourism market have co-ordinated efforts with local airlines such as Vietnam Airlines and Vietjet Air to organise charter flights from major Chinese cities to Khanh Hoa.

Meanwhile, China Southern Airlines has re-operated its regular flight from Guangzhou to Khanh Hoa from September 29 with a frequency of three flights per week.

The increase in flights on this route is expected to further facilitate tourists’ travel, thereby contributing to attracting international arrivals in general and Chinese tourists to Khanh Hoa in particular during the last months of this year and into early 2024.

Vietnam spends US$3.82 billion on animal feed imports in nine months

Vietnam spent US$3.82 billion importing animal feed and raw materials for production of this kind of commodity over the past nine months of the year, according to the General Department of Customs.

This figure marks a decline of 6.9% compared to the same period last year.
  
Argentina remained the country’s leading supplier of animal feed and feed materials. Throughout the reviewed period, Vietnam imported products worth US$1.09 billion from this market, representing a 12% decrease year on year.

Brazil, the United States, and India ranked second, third, and fourth at US$683 million, US$534 million, and US$428 million, respectively.

In contrast, India recorded the highest growth in terms of import value in the first nine months of the year, witnessing an annual increase of 93%, followed by Germany up 82% and Italy up 70%.

More than 600 plastics and rubber enterprises globally join VietnamPlas 2023

The 21st Vietnam International Plastics and Rubber Industry Exhibition (VietnamPlas 2023) opened on October 18 in Ho Chi Minh City, attracting the participation of 625 foreign firms from 22 countries and territories globally.

On display across 1,100 pavilions are machinery and equipment for the production and processing of plastic and rubber, raw materials, machinery for recycling, and other items in the plastic and rubber industry.
  
The event provided an ideal platform for local and foreign firms to enhance connectivity, gain access to advanced scientific and technological trends in the plastic and rubber industry, as well as to seek supply sources of raw materials for production.

According to Judy Wang, president of Yorkers Trade and Marketing Service Co Ltd, the Vietnamese plastic and rubber industry witnesses an annual growth rate of 8%, and the expo would give local businesses to gain access to cutting-edge technologies and solutions, as well as opening up bright prospects for the further development of the industry.

A number of seminars will be held during the three-day event, with a specific focus on supply chain management, digital transformation trends, and export strategies.

Vietnam and RoK set to reach US$100 billion bilateral trade target

Trade exchange and trade promotion activities have been enhanced by Vietnamese and Korean businesses this year with a view to elevating two-way trade turnover to US$100 billion moving forward.

In attempting to increase two-way trade turnover between the nation and the Republic of Korea (RoK), the Korea Trade and Investment Promotion Agency in Hanoi (KOTRA Hanoi) said that the direct trade event between two business delegations from the RoK's Daegu city and Gyeongbuk province alongside Vietnamese importers, organised recently by KOTRA Hanoi, was a great success.
  
At the live trade event, nine businesses from Daegu city and six businesses from Gyeongbuk province, along with reputable Korean manufacturers and suppliers, introduced a variety of products such as cosmetics; food, functional foods, and beverages; along with household appliances and LED electrical equipment.

Participating in the trade event, 45 Vietnamese businesses found suitable Korean partners through 90 direct trade exchanges.

Sharing the success of the trade exchange, Lee Jun-dae, director of H&H Group Company, said that the Bilateral Trade Agreement (FTA) between the country and the RoK has created favourable conditions whilst opening up opportunities for Vietnamese businesses to take advantage of the best tax incentives.

“H&H Group products such as food and cosmetics have enjoyed preferential tax rates imported into Vietnam of only 1% - 2% compared to the normal tax rate of over 20%. This is a good opportunity for Korean products to penetrate the Vietnamese market more easily," said  Jun-dae.

Echoing this view, Park Jong-won, director of Bathproject Company of the RoK, expressed his pleasure at having direct contact with a number of potential Vietnamese importers.

"We believe that today's working session of Bathproject company will have good results, thus opening up many opportunities for broader co-operation for businesses of the two countries in the future through trade sessions," Jong-won stated.

Park Min-sul, director of the Korea FTA Center under KOTRA Hanoi, informed that there are currently three trade agreements between the two nations, namely the ASEAN-Korea Free Trade Agreement (AKFTA), the Vietnam-Korea Free Trade Agreement (VKFTA) and the Regional Comprehensive Economic Partnership (RCEP).

In particular, the VKFTA has a more preferential roadmap meaning it is used by many businesses. Specifically, cosmetic products have a normal tax rate of 20%, but currently under the incentives specified in the VK FTA the tax rate is reduced to between 1% and 2%.

According to the KOTRA representative, in 2015 joint trade turnover only reached US$36 billion, although this figure has increased more than two times, reaching US$86 billion in 2022 thanks to capitalizing on incentives from the VKFTA.

As a result, trade promotion activities have been enhanced by KOTRA this year with the aim of increasing two-way trade turnover to reach the target of US$100 billion in the near future.

Int’l conference talks pivoting of trade to Asia-Pacific

A hybrid international conference is taking place in Ho Chi Minh City on October 19 - 20 to discuss the pivot of trade to Asia-Pacific and its impacts on the trade, investment, and environmental policies of economic partners in and outside the region.

The event, held by the HCM City University of Law and France’s Université de Tours, attracted over 40 experts from 12 countries, namely Vietnam, India, Canada, the Republic of Korea, Indonesia, Morocco, Russia, Japan, France, Singapore, Thailand, and China. It was also attended by representatives of agencies, organisations, and domestic and international businesses.

Dr Le Truong Son, Rector of the HCM City University of Law, said Asia-Pacific, considered the economic engine of the whole world, gathers dynamic and strong economies with fast growth, attractive markets, and young and industrious workforces.

Asian-Pacific countries, holding strategic geo-political locations, have been the destinations of the pivot strategies of many nations worldwide over the past several decades. Those strategies are not limited to trade or investment but also designed on the basis of calculations on many other aspects, including diplomacy and politics.

The pivot to Asia-Pacific strategies have been influencing the policies and law of countries in and outside the region. In particular, to implement those strategies, trade liberalisation and investment protection agreements, including global and bilateral ones, have been signed among partners in the region, as well as between the region and partners outside, Son noted.

Those agreements and their implementation are helping with security, sustainable development, economic growth, environmental protection, and human rights protection at national, regional, and international levels, and support for developing countries. However, the problem is how to ensure the enforcement of those deals proves truly effective in reality and protects the interests of all enterprises as well as the rights of vulnerable groups, according to the rector.

Prof. Michel Trochu, former legal expert at the European Parliament, said the European Commission has seriously considered a  pivot to Asia-Pacific strategy. The EU has expanded cooperation and stepped up the negotiation and signing of new free trade agreements with important partners in the region such as the Republic of Korea (in 2015), Japan (2019), Singapore (2019), and Vietnam (2020).

Likewise, economic and political changes have also boosted Russia’s enhancement of connectivity and cooperation with Asian-Pacific countries, he added.

At the event, participants discussed the differences and similarities between the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN - China Free Trade Agreement (ACFTA), along with the Indo-Pacific Economic Framework for Prosperity (IPEF) and the RCEP’s impacts on the Greater Mekong Sub-region.

They also looked into the attractiveness of East Asian countries, trade and investment potential and opportunities in the Great Mekong Sub-region, and the pivot to Asia policy of Russia.

Hanoi to host VietFood & Beverage – ProPack Vietnam 2023 in November

The 8th VietFood, Beverage and Professional Packing Machines (VietFood & Beverage – ProPack Vietnam 2023) will be held in Hanoi from November 8-11.

Covering 5,000 sq.m, the exhibition will feature 300 booths by 250 businesses from ten countries and territories such as India, Canada, Taiwan (China), the Republic of Korea (RoK), Norway, Japan, China and Vietnam.

The expo will gather prestigious firms in the domestic food industry, along with typical products of the Republic of Korea such as rice cakes, seaweed, dried persimmon, red ginseng and products made from ginseng, dried and frozen seafood.

A wide range of products will be on display, including food, beverages, nutritional supplements, functional food as well as machinery and equipment for food production, packaging, and preservation, the event's organisers said. 

The expo will focus on connecting international brands with importers and distributors in the food & beverage industry, they said, adding that it is expected to help domestic and foreign businesses access the markets, promote products to potential buyers, and increase brand recognition.

Seminars will be held within the framework of the event, aiming to provide the latest information about the food & beverage industry as well as exchange knowledge about new market trends.

Vietnam-Laos joint venture allowed to develop railway project

A joint venture between Vietnamese infrastructure developer Deo Ca Group JSC and Petroleum Trading Lao Public Company (PetroTrade) has been allowed to develop a railway project linking the two countries.

General Director of the Deo Ca Group JSC Nguyen Quang Vinh has announced that the Ministry of Transport accepted the joint venture’s proposal on developing Vung Ang – Tan Ap – Mu Gia railway project under the form of Public-Private Partnership (PPP).

The joint venture as the project investor is required to conduct a pre-feasibility study and submit an assessment report as regulated in the Law on Investment, Law on Railway, relevant laws and planning schemes.

The Vung Ang - Tan Ap - Mu Gia railway project is part of the Vientiane - Vung Ang railway, which was included in the national railway network development planning in the 2021 – 2030 period, with a vision until 2050. It has a length of 103km and is estimated to cost nearly 27.5 trillion VND (1.12 billion USD).

It is an important project, part of the overall Vietnam - Laos railway project, and one of the priorities of the Governments of Vietnam and Laos.

The Vientiane - Vung Ang railway has a total length of 554.7 km from Vung Ang port in Vietnam’s central coastal province of Ha Tinh to Vientiane, the capital and largest city of Laos.

The project will be built under the public-private partnership, with a total investment of 149.55 trillion VND (6.3 billion USD).

Vung Ang port - the railway’s ending point will play an important role in promoting the the two countries' economic ties through trade exchange and maritime transport, targeting the markets of Northeast Thailand, China, the Republic of Korea and Japan.

According to the representative from the Deo Ca Group JSC, after highways, investing in railway infrastructure has been identified as the new direction of the business in the next 5-10 years.

Exports via e-commerce platforms become rising trend

The shift towards exports via e-commerce platforms is likely to continue as technology is evolving and businesses are adapting to the changing market landscape, especially since the COVID-19 pandemic broke out, heard a seminar held by the Vietnam Industry and Trade Review in Hanoi on October 19.

However, there are still several limitations when it comes to exporting through e-commerce platforms in Vietnam, including cultural and language barriers, and a lack of understanding of the rules and regulations governing e-commerce, which pose significant challenges to the country in the process of cross-border export.

Speaking at the event, Deputy Director of the Centre for Application of Information Technology and Digital Transformation in Trade Promotion Nguyen Thanh Duong said the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade is collaborating with e-commerce platform Alibaba.com to develop "Vietnam Pavilion" on its platform. The goal is to popularise Vietnamese products to international customers and boost their exports to the global market.

He explained that this platform has over 260 million users, 47 million buyers and businesses from over 200 countries and territories, adding that both sides plan to select outstanding businesses to be featured in the Vietnam Pavilion, with the launch planned for December.

To promote exports on e-commerce platforms, Vietrade will work on developing a digital trade promotion ecosystem, diversifying coordination with both domestic and foreign e-commerce platforms.

It will also advise leaders of the Ministry of Industry and Trade to sign cooperation agreements that create favourable conditions for exporters. Promotions include building the "Vietnam Pavilion" on major global e-commerce platforms to showcase Vietnamese products to international customers, as well as hold training and capacity-building activities for exporters, he said.

Last year, Vietnam's exports through e-commerce were valued at over 80 trillion VND (3.25 billion USD), which is expected to reach nearly 300 trillion VND by 2027.

In anticipation of this trend, Vietrade swiftly launched various online and hybrid trade promotion models in Vietnam, which have yielded positive results.

Completion deadline extended for second metro line in HCMC

The HCMC People’s Committee has approved an extension of the completion date for Metro Line No. 2, which connects Ben Thanh Market in downtown and Tham Luong depot in District 12, from 2026 to 2030.

The Management Authority for Urban Railways of HCMC (MAUR), the project’s investor, has been tasked with creating detailed construction plans and ensuring the project adheres to the new schedule.

MAUR is also responsible for proposing solutions to overcome any obstacles and allocating resources to complete any unfinished components if the project falls behind schedule.

Regarding land clearance, MAUR must actively collaborate with relevant departments and units to expedite construction, relocate infrastructure, and ensure timely handover to construction contractors according to the approved plan.

The Ben Thanh-Tham Luong metro line, known as Metro Line 2, was approved in 2010 with a total investment of nearly VND47.9 trillion. It spans over 11 kilometers, featuring nine underground stations and one elevated station, connecting multiple districts including Districts 1, 3, 10, 12, Tan Binh, and Tan Phu.

The project was originally slated for completion by 2026.

Real estate market has 59,500 new entrants in Q3

The real estate market saw a significant surge in the third quarter of this year, with 59,500 businesses entering and re-entering the market, according to the Ministry of Construction.

This increase marks the highest recorded for a third quarter to date, representing an 18% jump compared to the same period in 2022, which saw 50,400 businesses participating.

The broader construction sector also showed growth over the past nine months, with a 6.17% year-on-year increase.

Statistics indicated an urbanization rate of 42.6%. Additionally, the average floor space per individual in the country increased to around 25.6 square meters, up by 0.1 square meters per individual from last year’s figure.

Underlining the Government’s commitment to housing, a VND120 trillion credit package has been launched. The package aims to construct at least one million housing units for low-income residents and industrial zone workers by 2030.

Reports from local authorities indicate that 52 projects across 19 provinces now qualify for this funding. These projects collectively request more than VND25.8 trillion, with the majority seeking funding for social housing.

Notably, five of these housing projects were completed in the third quarter, delivering 850 units. Of these, 336 were designated for low-income residents, and 514 were for workers in industrial zones.

For the remainder of 2023, the ministry is set to prioritize the development of the real estate market, with a focus on safety, sustainability, and housing for low-income earners. They aim to achieve the capital disbursement plans designated by the prime minister, focusing on rapid project implementation and public investment.

Vietnam’s rice export prices remain world’s highest

Export prices of Vietnam’s 5% and 25% broken rice have risen to US$633 and US$618 per ton, respectively, higher than those of its rivals from Thailand and Pakistan.

According to the Vietnam Food Association, export prices of Vietnam’s 5% and 25% broken rice have recently increased by US$10 and US$5 per ton compared to the beginning of this month.

Meanwhile, the price of Thailand’s 5% broken rice for export rose by US$1 to US$582 per ton, and 25% broken rice price declined by US$1 to US$532 per ton.

Each ton of Vietnamese 5% broken rice is US$51 higher than that of Thailand, while the Vietnamese 25% broken rice price is US$86 higher than Thailand’s the same product.

Experiencing a US$10 increase, Pakistan’s 5% broken rice is sold at US$573 per ton, and 25% broken rice is US$493 per ton.

The higher demand in the Asia and African markets is attributed to the rebound of the rice export prices, said the rice exporters.

Indonesia has recently announced that Vietnam and Thailand would become the main rice suppliers for this country when it purchases 1.5 million tons of rice in the upcoming period.

In the first nine months of this year, Vietnam had exported 884,177 tons of rice to Indonesia, generating US$462 million in revenue, 17-fold higher in volume and 19-fold higher in value over last year.

A report from the Ministry of Industry and Trade showed that in September alone, Vietnam’s rice export revenue had amounted to US$495 million, surging by 80% compared to the same period of last year.

In the first nine months, rice exports brought Vietnam total revenue of US$3.66 billion, a 40% increase against last year and surpassing the export revenue of the entire year of 2022.

Vietnam-HCMC tourism promotional programs to be held in countries

The HCMC Tourism Department plans to organize tourism marketing and promotional programs in ASEAN member countries in October.

The organization of events will help the municipal Tourism Department grasp the information of tourism trends and development strategies of the countries, and connect with international partners to bring visitors to Vietnam in general and HCMC in particular.

The HCMC Department of Tourism is carrying out promoting Vietnam-HCMC tourism promotional program in the US. The event includes activities such as introducing destinations, new tourism products, Vietnamese cuisine, performances of traditional music, and others.

Ms. Nguyen Thi Anh Hoa, Director of the HCMC Tourism Department said that the event opened up more opportunities for visitor growth between the two countries in the coming time. It also affirmed that the new visa policies create favorable conditions for visitors and overseas Vietnamese in the US to come to Vietnam and HCMC.

She hoped that travelers would choose HCMC as their first destination before traveling to provinces, cities, and other nations.

VN-Index falls close to 1,100 point-level

The Vietnamese stock market fell for the third day in a row, weighed by persistent strong profit-taking pressure. However, foreign investors were still net buyers on two main exchanges.

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index dipped to 1,103.4 points, down 18.25 points, or 1.63 percent. For the last three sessions, it had lost over 55 points.

Sell-off activities appeared continuously at the end of the session, like in the previous session. However, bottom-fishing cash flow returned strongly to the market, improving the market’s liquidity and keeping the benchmark above the 1,100-point level.

Specifically, the trading value on HoSE jumped more than 60.7 percent over the previous session to nearly VND21.86 trillion (US$889.5 million), while the trading volume also increased 70.5 percent to more than 1.03 billion shares.

The market’s breadth was negative, with 293 losers and 43 winners.

The VN30-Index, tracking the 30 biggest stocks on HoSE, tumbled 15.47 points, or 1.36 percent, to 1,125.56 points. In the VN30 basket, 25 stocks fell, two gained and three ended unchanged.

The HNX-Index on the Hanoi Stock Exchange (HNX) also extended losses. It fell more than 2.9 points, or 1.27 percent, to 227.11 points.

Investors poured over VND2.6 trillion into the northern bourse, equivalent to a trading volume of 130.2 million shares.

Of the top five stocks influencing the market’s downtrend, the lender BIDV (BID) posted the biggest loss of 3.15 percent. It was followed by Vinhomes (VHM) down 2.7 percent, PV Gas (GAS) down 2.58 percent, Hoa Phat Group (HPG) decreasing by 3.23 percent and Masan Group (MSN) sliding by 3.8 percent.

In contrast, some stocks in the securities, transportation, manufacturing, and oil and gas industries still performed positively on Wednesday.

Leading the bullish trend was Vietjet Aviation JSC (VJC), with a gain of 1.94 percent. Other stocks like PV Drilling (PVD), VIX Securities JSC (VIX), Duc Giang Chemicals Group (DGC), and South Logistics JSC (STG) soared at least 3 percent.

Also supporting the bullish sentiment, foreign investors continued to net buy on HoSE and HNX. Particularly, they net bought more than VND553 billion on the southern bourse and VND14.32 billion on HNX.

Data inseparable part of digital transformation

Within the framework of Ho Chi Minh City's Digital Transformation Week with the theme ‘Digital data mining, successful digital transformation’ on October 17 and 18, a seminar ‘Digital transformation to promote public services and non-cash payments’ was held. Seminar participants believed that data plays an important role in digital payments - an inseparable part of the digital transformation process.

Currently, payment via QR code has become a popular payment trend and the proportion of QR code payments is increasing. According to the National Payment Corporation of Vietnam (NAPAS), in the third quarter, payments via VietQR doubled in number and reached more than 100 million transactions per month.

On the Payoo system, QR code payments increased by 6 percent in quantity and 30 percent in value compared to the previous quarter while payments at counters via QR codes increased by 8 percent in quantity and nearly 20 percent in value.

The proportion of payment value via QR code compared to other forms of payment is about 20 percent for over-the-counter transactions and nearly 40 percent for online transactions. Moreover, this proportion has grown steadily each quarter.

In particular, if previously payment via QR code was only popular in shopping, dining, etc. transactions, now it is also popular in bill payment. Currently, invoice services are also implementing payment via QR codes with the number of QR code transactions increasing 2.6 times compared to the second quarter of last year. One of the important reasons why QR payments lead the trend is that the Government has promoted payment via QR and businesses and users supported this, said a Payoo representative.

Co-founder of MoMo Nguyen Ba Diep said that there are currently about 2.5 million users paying through MoMo for more than 90 percent of public administrative services on the National Public Service Portal and one million users for other public services. Statistically, MoMo is the top 1 payment channel on the National Public Service Portal, accounting for 47 percent of the total transactions on the Portal according to data from the third quarter of 2023.

Ho Chi Minh City is leading in promoting non-cash payments in terms of public services with a rate of up to 45.4 percent for public administration and 39.86 percent for public services.

According to him, about 51.3 percent of customers aged 18-27 have chosen MoMo as the payment method on the National Public Service Portal. Additionally, 45.8 percent of young customers in this age group also use MoMo to pay for public services. The above data shows that young people play an important role in accelerating national digital transformation.

Deputy Governor of the State Bank of Vietnam Pham Tien Dung said that data and the analysis, exploitation and connection of data are the decisive factors in creating the success of the process of promoting non-cash payments and digital transformation in the banking industry.

Deputy Governor Pham Tien Dung emphasized that data not only helps banks authenticate and identify customers, but also through technology applications to analyze and capture consumer behavior and trends; thereby, commercial banks can make decisions on product development and supply. products and services to meet market needs and improve operational efficiency.

Subsequently, the State Bank and other banks and payment intermediaries have been recently implementing the application and connection of population data information in their activities, especially payment and credit to promote the development of non-cash payment and digital transformation in the economy. Commercial banks, financial institutions, and intermediary payment units participated in exhibitions that introduced many new technologies in banking.

It is expected that in the coming time, the State Bank will continue to coordinate with ministries, agencies and people's committees in provinces and cities to implement tasks and solutions in the Non-cash payment development project for the period 2021-2025, the digital transformation plan and the Project 06 with a focus on perfecting the legal framework to promote digital transformation including policies on connection and data exploitation, banking application systems operate safely, expansion of the digital ecosystem to serve payments online with convenient services.

According to the survey results on cashless payment activities of IDG Vietnam, a member of the International Data Group, some 41 percent of transactions have not used cash by mid-May 2023, compared to 28 percent in 2020. In particular, the most popular payment methods are via app/QR Code with 66 percent and payment via POS with 14 percent. The majority of consumers use cashless payments to buy and sell on e-commerce platforms with 87 percent and transfer money with 77 percent.

Businesses moan at decline of export orders for plastic and rubber products

Businesses in the plastic and rubber industry moaned that export orders for plastic and rubber products declined sharply.

At yesterday’s International Exhibition of Industrial Machinery and Equipment for the plastic and rubber industry, many plastic businesses said that export orders in 2023 decreased sharply compared to previous years.

Chairman of the Vietnam Plastics Association Ho Duc Lam shared that in general, in the last months of 2023, the world economy has not seen much improvement. The global recession has made a great impact on exports, plastic product consumption continues to decline in major markets, and orders are sharply reduced.

According to statistics from the Vietnam Customs, the export turnover of plastic products in the first 9 months of 2023 reached US$3.711 billion, down 12.2 percent compared to the same period in 2022.

In September 2023 alone, the turnover of plastic product exports reached $416.4 million, down 10.8 percent compared to August 2023 but up 8 percent compared to September 2022. Generally, plastic product exports in the last months of 2023 will not be as expected.

However, according to President of Yorkers Group Judy Wang, the current economic crisis has many difficulties for the plastic industry, but in the long term, the industry has a remarkable annual growth rate, with a significant rate of 8 percent.

The exhibition attracted 625 businesses from 16 countries and territories such as China, India, Indonesia, Iran, Italy, Japan, Russia, Singapore, Korea, Spain, Thailand, and Turkey.

The exhibition takes place at the Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City’s District 7 from October 18 to October 21, 2023, organized by the Vietnam Plastics Association in coordination with relevant units. This is an opportunity for businesses to connect and trade and find solutions to restore production.

2nd HCMC typical agricultural, OCOP products fair opens

A wide range of typical agricultural products and items under the "One Commune, One Product" (OCOP) program are in a display opened in HCMC’s Cu Chi District on October 18.

The second season of the typical agricultural and OCOP products fair and exhibition attracted 106 display booths of 83 manufacturers in HCMC and 17 provinces and cities across the country.

The fair also includes a seminar on solutions for strengthening digital transformation in trade promotion for agricultural products.

On this occasion, the organization board offered 50 presents to disadvantaged families of farmers who are members of the HCMC Farmers’ Association.

The 2nd HCMC typical agricultural and OCOP products fair and exhibition will run until October 23.

Railway company offers huge discounts on train tickets

Vietnam Railways (VNR) has launched a promotional program that offers discounts of up to 30% on thousands of train tickets in the final three months of this year.

VNR is providing 30% discounts on the prices of 6,000 train tickets in October, with plans to continue the promotion by offering the same discounts on 12,000 train tickets in November and December.

Several other promotion programs are also being conducted for individuals benefiting from social policy, including a free pass for children under six and a 25% discount for children aged from six to 10.

An astounding 90% discount is applied for Vietnamese Heroic Mothers, while veterans and disabled individuals can enjoy a 30% discount. Additionally, a 15% discount is available for individuals over 60.

For students attending vocational schools, specialized high schools, and colleges and universities (excluding postgraduate students), train ticket prices will be reduced by 10%.

Moreover, those who book tickets at least five days in advance will receive a discount ranging from 5% to 30% on single tickets and a 10% discount on return tickets.

Government greenlights VAT cut extension into H1 next year

Deputy Prime Minister Le Minh Khai has endorsed the Ministry of Finance’s proposal to extend a two-percentage-point reduction in value-added tax (VAT) until the first half of next year but it needs approval from the National Assembly.

In Official Dispatch No. 7866 issued by the Government Office on October 17 regarding the VAT reduction proposal, the Ministry of Finance is tasked with finalizing the proposal for submission to the National Assembly for approval.

Previously, the ministry presented the proposal to the prime minister for an extension of the VAT cut from January 1, 2024 to June 30, 2024.

The two-percentage-point VAT reduction will apply to types of goods and services currently subject to a VAT rate of 10%. However, it will not be applied to goods and services in sectors such as telecommunications, information technology, finance and banking, securities, insurance, real estate, metal production, oil refining, mining, chemical production, and goods and services subject to excise tax.

The VAT cut is expected to reduce state budget revenue by VND25 trillion.

In 2022, the National Assembly issued Resolution 43 on fiscal and monetary policies to support the Socio-Economic Development and Recovery Program, outlining measures to lower VAT from 10% to 8% for several types of goods and services, effective from February 1, 2022 to December 31, 2022.

Given local and global economic uncertainties, the National Assembly reinstated the VAT cut, with effect from July 1, 2023 to December 31, 2023.

Within three months, from July 2023 to September 2023, businesses and residents received support totaling VND11,700 billion thanks to the two-percentage-point VAT cut.

Two North-South Expressway sections opened to traffic

After two months of temporary use, the Ministry of Transport today, October 18, officially inaugurated two sections of the North-South Expressway in the north-central provinces of Thanh Hoa and Nghe An.

In Thanh Hoa Province, the 43-kilometer National Highway 45-Nghi Son Expressway passes through Nong Cong District and Nghi Son Township, and has a total investment cost of VND5.5 trillion.

The Nghi Son-Dien Chau Expressway, connecting Thanh Hoa and Nghe An provinces, is linked to the National Highway 45-Nghi Son Expressway. The project cost is VND7.3 trillion.

The National Highway 45-Nghi Son and Nghi Son-Dien Chau expressways reduce travel time between Thanh Hoa and Nghe An to 1.5 hours.

These two roads also connect to the Mai Son-National Highway 45 Expressway which links Ninh Binh and Thanh Hoa provinces, and other sections of the North-South Expressway, forming a 251-kilometer road that reduces travel time between Hanoi and Nghe An to 3.5 hours.

Tolls have yet to be collected for these expressway sections.

In the first phase, the four-lane expressways have a maximum speed of 80 kilometers per hour. Once fully completed, the roads will have six lanes with a maximum speed of 100-120 kilometers per hour.

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