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The survey, produced by YouGov Decision Lab, said that although Vietnam's economy grew at a record 13.67% year-on-year in the third quarter of 2022, the BCI declined for the second consecutive quarter, dropping 6.4 index points from the second quarter and 10.8 points from the first quarter.
The result were attributable to instability of the global economy due to the escalating conflict in Ukraine, persistent inflationary pressures, a labour shortage worldwide, and stagnant global growth.
However, in the midst of the current global economic uncertainty, the BCI is still 10.2 points higher than its pre-pandemic level of 52.0 in the fourth quarter of 2019, and 1.2 points higher than the fourth quarter of 2020, when Vietnam was easing its pandemic-related restrictions.
The BCI is the leading indicator of the European business and investment community in Vietnam. To better understand the Vietnamese market, EuroCham invites its more than 1,200 members, representing virtually every sector of the Vietnamese economy, to provide quarterly updates on Vietnam's business environment and forecasts for their own businesses in Vietnam.
HoSE's liquidity hits nearly two-year low
The Vietnamese stock market retreated on Wednesday as selling force got stronger and liquidity subsided.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) reversed the previous trade's course to close lower yesterday. It dropped by 3.59 points to 1,060.07 points, a 0.34 per cent decrease. The index gained over 12 points on Tuesday.
The breadth of the market was in negative territory with more stocks sliding. Meanwhile, liquidity on the southern bourse also decreased, of which trading value on HoSE reached VND8.2 trillion (US$337.6 million). This is the lowest trading value since November 17, 2020.
The low liquidity showed that investors are no longer interested in the stock market after the strong volatility of September and October.
The 30 biggest stocks tracker VN30-Index also posted a loss of 5.41 points, or 0.51 per cent, to 1,0653.65 points. Nine stocks of the VN30 basket added points, while 17 inched down and four ended flat.
The HNX-Index on the Ha Noi Stock Exchange (HNX) finished at 227.9 points, down 1.22 points, or 0.53 per cent.
During the session, VND721.77 billion worth of shares, equivalent to a trading volume of over 39 million ticker symbols, was traded on the northern market.
Foreign investors were net sellers on HoSE after withdrawing a net value of VND80.58 billion on the exchange, while net bought VND21.44 billion on HNX.
First Vietnam Blockchain Summit opens
The Vietnam Blockchain Summit 2022 officially opened in Hanoi on October 19.
Organised for the first time by the Vietnam Software Association (VINASA) and the Vietnam Blockchain Association, the two-day summit is drawing great attention from both domestic and international tech firms.
Among new technologies strongly affecting the world’s changes, blockchain is getting more popular, as it is applied in almost all fields and sectors.
Phan Duc Trung, Vice President of the Vietnam Blockchain Association, said the summit will help boost technology connections and contribute to the development of the digital economy.
It will give participants an insight into Vietnam’s blockchain industry as well as policies domestic and foreign firms need to follow while developing business models applying blockchain technology in the country.
Speakers are expected to share approaches to blockchain technology of leading technology companies, new solutions, and stories of integrating blockchain into products to bring new value to users.
Among the top 200 companies operating with blockchain technology in the world, more than 10 were founded by Vietnamese. Vietnam is one of the top five blockchain countries and currently has more than 10 startups in this field with a combined capital of more than 100 million USD.
According to a report by MaketsandMarkets, domestic blockchain-related market will reach a value of nearly 2.5 billion USD in 2026, increasing nearly five folds compared to that in 2021.
PM orders accelerated public investment disbursement in final months of the year
Prime Minister Phạm Minh Chính has ordered ministries and agencies to step up public investment disbursement in the implementation of three key national target programmes in the remaining months of 2022.
The cabinet leader issued a directive on accelerating public investment disbursement on Monday with the task of disbursing an enormous amount of public investment in the last few months of the year.
In the first nine months of 2022, about VNĐ35 trillion of public investment has been disbursed, increasing by 16 per cent compared to last year, covering 46.7 per cent of the workload assigned by the PM this year.
According to the Ministry of Planning and Investment, the public investment disbursement workload in 2022 is heavy. This is because the amount of capital that needs to be disbursed is about VNĐ80 trillion, higher than in 2021, and not including about VNĐ38 trillion in extra development expenditure from the recovery and socio-economic development programmes.
However, the PM said in the decree that public investment speed has fallen short of expectations due to several shortcomings.
Shortcomings in the decree include a lack of responsibility at ministerial and provincial level leaders, unfinished land clearance work and low-quality supervision.
According to the directive, accelerating public investment to realise annual socio-economic targets is one of the key tasks in the year's final months. The target is to disburse 95 to 100 per cent of public investment in 2022.
PM Chính ordered ministries and agencies to ensure the efficiency of public investment disbursement and the quality of construction work.
The PM also ordered tightening discipline, accelerating land clearance progress, and lifting obstacles in land and natural resources.
Ministries and agencies have been asked to directly monitor every project, especially new ones, and improve the quality of consultation work.
China considers importing sweet potatoes from Vietnam
Le Van Thiet, deputy director of the Plant Protection Department under the Ministry of Agriculture and Rural Development, said Vietnamese partners have registered to export sweet potatoes to China via formal trade channels.
Nguyen Van Liem, deputy director of the Vinh Long Province Department of Agriculture and Rural Development, said that China had long been a major buyer of Vietnam’s sweet potatoes via border trade.
Local sweet potato prices have dropped by VND1,500-2,000 a kilogram to VND5,000-6,000, resulting in losses for farmers, Liem said. Sweet potato cultivation areas have shrunk to 750 hectares from 13,000-14,000 hectares.
Liem hoped the Ministry of Agriculture and Rural Development would work with the Chinese side to obtain approval for the formal export of sweet potatoes to China.
Data from the General Administration of Vietnam Customs showed that vegetables and fruits exported to China in the first eight months of this year fell 32.4% year-over-year to US$967 million. As for sweet potatoes, the exports brought in over US$20.6 million.
VN-S’pore trade grows 16% in Jan-Sept
The January-September period saw two-way trade between Vietnam and Singapore expanding 16% year-on-year to US$7 billion.
Speaking at his talks in Hanoi yesterday with Singaporean President Halimah Yacob during her State visit to Vietnam, State President Nguyen Xuan Phuc said that despite the Covid pandemic, two-way trade the two Southeast Asian nations last year grew 23% year-on-year at US$8.3 billion.
Phuc proposed that Singapore, one of Vietnam’s major strategic partners, facilitate shipments of Vietnamese goods to Singapore and help Vietnam with in-depth participation into global supply chains.
Singapore is the second biggest foreign investor among 139 countries and territories investing in Vietnam, with total registered capital of over US$70 billion, the local media reported.
Businesses stock up on goods for Lunar New Year buying spree
Many businesses in HCMC are stockpiling goods in preparation for the Lunar New Year buying spree, according to the city’s Department of Industry and Trade.
The demand for foodstuffs usually soars in the lead up to the Lunar New Year (Tet), which begins at the end of the third week of January next year, said Nguyen Nguyen Phuong, deputy director of the department.
Firms are drawing up business plans for the Tet holiday, with food and foodstuffs stocked up to 40,000 tons, he added. The volume includes over 5,200 tons of food, 2,000 tons of sugar, 2,300 tons of cooking oil, 14,000 tons of meat, 9,300 tons of vegetables, nearly 1,500 tons of processed food and 54.4 million eggs.
Retailers and manufacturers are also preparing for the upcoming holiday.
Gross retail sales of consumer goods and services in the year to September had grown 21% over the same period last year, the General Statistics Office reported.
Compared to the same period last year, gross retail sales of consumer goods and services skyrocketed 41.7% in the third quarter and 36.1% in September alone, at over VND493 trillion.
HCMC and Hanoi see rising recruitment demand
The labor markets in HCMC and Hanoi are expected to pick up in the rest of the year due to year-end manufacturing needs, according to market research agencies.
The key expanding recruitment demand by the end of the year includes sales, information technology, marketing, finance, accounting and audit, according to the HCMC Center of Forecasting Manpower Needs and Labor Market Information.
Meanwhile, the number of jobseekers will also rise, particularly in sectors of environmental safety, insurance, real estate, chemistry, biochemistry and human resources, among others.
In the January-September period, some 241,000 workers were hired in HCMC, increasing by 36.18% compared to 2021.
The number of jobs created was 107,000, soaring by 30.9% year-on-year.
HCMC is expected to need between 69,500 and 77,100 workers in the coming months, with high demand for production for the Lunar New Year holiday, or Tet.
Roughly 89% of businesses plan to recruit more employees in the wake of the economy’s recovery.
In Hanoi, some 168,000 workers were hired between January and September. There were 3,638 people working under contract overseas, according to data from the Hanoi Department of Labors, War Invalids and Social Affairs.
In the rest of the year, the recruitment demand mainly lies in commercial service, manufacturing, electronics, textile footwear, construction and healthcare, according to the Hanoi Center of Employee Service.
The unemployment rate in HCMC and Hanoi was 0.25% and 0.53% in the third quarter, respectively, according to the General Statistics Office of Vietnam.
Some 24% of the Top 500 Vietnam Best Employers reportedly made considerable improvements in labor welfare policies, while almost half of the list just slightly changed theirs.
Some 17.8 million individuals were officially employed as of the third quarter of the year, increasing by 642,800 people compared to the previous quarter, up 3.8%.
The number of workers aged 15 and over rose by 255,200 to 50.8 million.
Tin Nghia general director arrested
Nguyen Van Hong, general director of Tin Nghia JSC, has been detained for the State asset management irregularities he allegedly committed while serving as CEO of Nhon Trach Investment JSC, an investment unit of Tin Nghia.
The Dong Nai police on October 18 issued an arrest warrant for Hong, 58, who was also a member of the board at Nhon Trach Investment JSC, the local media reported.
On the same day, the investigators arrested Phan Thanh Vinh Toan, former general director and a board member of Nhon Trach, and Do Tan Diem, former board member of the firm, for the same charges.
The investigators also searched their houses and collected many documents.
The three were found colluding with Quach Van Duc, former chairman of Nhon Trach Investment JSC, who was arrested on June 21 on alleged charges of misusing State assets, to misuse State assets and cause huge losses.
Over 10 years ago, investigators found irregularities regarding land management at Nhon Trach Investment JSC. In November 2007, the Dong Nai government transferred 500 hectares of land in Nhon Trach District to the firm to develop the Long Tan-Phu Thanh residential area project, without holding a public tender.
Meanwhile, the land-use fee for the project was much lower than then market levels, causing a loss of some VND160 billion.
Real estate credit increases, securities credit declines
By August 2022, credit for the real estate sector increased by 15.68 percent compared to the end of 2021, while credit for investment and securities trading decreased by 35.07 percent, according to a report by Ms. Nguyen Thi Hong, Governor of the State Bank of Vietnam, to the National Assembly on the results of the implementation of Resolution No.62/2022/QH15 and
According to the above report, by September 26, 2022, the credit of the whole economy reached about VND11.58 quadrillion, up 10.83 percent compared to the end of 2021. It is a high increase compared to the same period in recent years, in line with the recovery of the economy. The credit structure continued to gather capital for production and business sectors, in line with the contribution and growth of economic sectors in GDP.
Credit to priority fields grew well, higher than in the same period last year, with some sectors posting higher growth rates than general credit growth, whereas credit for potential risk areas was strictly controlled.
By the end of August 2022, credit for agriculture, forestry, and fishery increased by 7.56 percent; credit to industry and construction rose by 7.37 percent; credit in the trade and service sector soared by 11.34 percent.
In the same period, credit for agricultural and rural development edged up by 9.26 percent; credit for small and medium-sized enterprises surged by 10.54 percent; credit for exports inched up by 2.68 percent; credit for supporting industry climbed by 11.6 percent; credit for hi-tech enterprises decreased by 0.28 percent.
The Governor also said that by August 2022, credit for the real estate sector jumped by 15.68 percent compared to the end of 2021, accounting for 20.92 percent of the total credit balance of the whole system. Of which, credit for real estate trading went up 7.35 percent, and that for self-purposes increased by 20.14 percent. In contrast, credit for investment and securities trading dropped by 35.07 percent, accounting for 0.32 percent.
MoST, Can Tho City sign agreement on innovation activities
The Ministry of Science and Technology (MoST) yesterday had a working session with leaders of Can Tho City. A collaboration agreement was signed between them on promoting scientific-technological activities and innovation in the 2022-2025 period.
The agreement has 11 cooperation parts to increase the collaboration between both partners in guiding and administrating innovative scientific-technological activities. The content mostly focuses on fulfilling strategic goals and missions for scientific-technological development in the area between 2021 and 2030.
It also aims at boosting the growth of high-quality human resources, scientific-technological services so that Can Tho City can truly transform into a scientific-technological center of the Mekong Delta.
Ben Luc – Long Thanh Expressway project longs for capital
Ben Luc - Long Thanh Expressway is a national key project with a length of 57.8 km, passing through Long An - Ho Chi Minh City - Dong Nai. Construction of the project started in 2014, completed in 2019, but due to financial difficulties, many categories are still unconstructed.
At the Ben Luc - Long Thanh Expressway passing through Dong Nai Province in mid-October 2022, there was no sign of people at the construction site, while many categories were unfinished and covered by overgrown grass. The section through Long Tho Commune in Nhon Trach District, with a length of more than 3km in construction package A6, located next to the Phuoc An Port planning area, was only built nearly 1km but has had to stop construction from June 2019.
Nguyen Van Tuan, a security guard at the construction site since 2018, living in a small hut under the Ben Luc - Long Thanh Expressway, said that since the project was started, there have been three construction contractors, but after only a short time they withdrew, leaving unfinished construction categories. He had not received his salary for four months.
The latest data from the Vietnam Expressway Development Corporation (VEC), the project investor, shows that, up to now, the output value of the implemented bidding packages has reached VND10.97 trillion, equivalent to 79.96 percent of the construction value of the project under the original contract.
The Ben Luc - Long Thanh Expressway Project uses three sources of capital, including a loan of more than VND13.6 trillion from the Asian Development Bank (ADB), nearly VND12 trillion from the Japan International Cooperation Agency (JICA), and reciprocal capital of more than VND5.69 trillion. Due to problems with legal procedures on capital, the construction packages using capital from the ADB have been suspended. Besides some construction packages that have been basically completed, the remaining packages have not been able to restart because the contractors requested to terminate the contracts.
300 enterprises join in HCMC FOODEX 2022
The Investment & Trade Promotion Center of Ho Chi Minh City in collaboration with the Food and Foodstuff Association of Ho Chi Minh City and the C.I.S Vietnam Advertising & Exhibition Joint Stock Company (CIS Vietnam) officially opened the Ho Chi Minh City International Exhibition of Food and Beverage 2022 (HCMC FOODEX 2022) this morning at Saigon Exhibition and Convention Center (SECC).
The HCMC FOODEX 2022 attracted over 240 booths and nearly 300 enterprises in both offline and online forms. The exhibition will contribute to introducing the active development of the food processing industry, advertising the products’ quality and prestigious brand names and so on to promote cooperation opportunities and lure effective investment sources.
The HCMC FOODEX 2022 opens from 9 a.m. to 5 p.m. from October 19 to October 10 which is expected to welcome around 18,000 turns of visitors.
At the exhibition, the enterprises will have chance to showcase and introduce raw and preliminary-processed food and foodstuff products comprising agricultural, aquaculture and spices ones, a group of products that are deeply processed, a beverage product group and a group of raw materials used in the food processing industry, a group of machinery and equipment for production, packaging, preservation and related supporting industries.
Hanoi scores positive economic indicators in January-September
The capital city of Hanoi attracted 1.02 billion USD in foreign direct investment (FDI) in the first nine months of 2022, up 18% year-on-year.
In the period, nearly 22,000 businesses with a total registered capital of 241.7 trillion VND (9.86 billion USD) were established, up 25% in the number of new firms and 2% in capital, according to Vice Chairman of the municipal People’s Committee Nguyen Trong Dong.
The city’s gross regional domestic product (GRDP) expanded by 15.71% in the third quarter, and 9.69% in the January-September period – the highest in recent years.
In the reviewed period, Hanoi’s State budget revenue hit nearly 244 trillion VND, equal to 78.3% of the yearly estimate and 112.3% of that of the same period last year.
Meanwhile, local budget spending was 48.6 trillion VND, equal to 45.5% of the yearly estimate and equivalent to 109.8% of that of the same period last year.
In the remaining months of this year, the city will focus on main missions and solutions to maintain macro-economic stability, control inflation and improve the Provincial Competitiveness Index (PCI), Satisfaction Index of Public Administration Services (SIPAS), and Provincial Governance and Public Administration Performance Index (PAPI).
Green hydrogen development prospects in Vietnam under discussion
A webinar discussing prospects of green hydrogen in low-carbon economy in Vietnam was hosted by the Vietnam Imitative for Energy Transition (VIET) on October 18.
Addressing the event, VIET Executive Director Ngo Thi To Nhien said Vietnam is striving to develop potential clean energy sources, including green hydrogen, in a bid to realise its net zero emission goal by 2050.
Green hydrogen will contribute to diversifying energy sources, replacing raw materials and fossil fuels in industrial production and transportation.
Briefing participants on Vietnam’s hydrogen industry, Dr. Tran Khanh Viet Dung, an expert from the VIET, said based on the emission reduction target of sectors, economic efficiency, technological readiness and corresponding infrastructure in Vietnam, the initiative develops three scenarios for hydrogen development.
Participants said for Vietnam, green hydrogen should be prioritised for industrial production, transportation, energy, and export.
Dr. Nguyen Huu Luong from the Vietnam Petroleum Institute (VPI) said Vietnam needs to develop policies, regulations and guidelines for green hydrogen development; policies to encourage production and use of green hydrogen. The country should implement pilot projects, develop infrastructure and supply chains as well as technical standards and guidelines on safety for hydrogen production, storage and transportation.
Participants also pointed out challenges facing the hydrogen industry in Vietnam, especially those related to policy, infrastructure, financial resources, human resources and technology.
They underlined the need to have breakthrough policies and appropriate solutions to form a complete green hydrogen supply chain for the country.
Vietnam’s clipboards to be subject to US’s anti-dumping investigation
he US Department of Commerce (DOC) has received a petition for an anti-dumping investigation into clipboards imported from Vietnam, China and India, said the Vietnamese Ministry of Industry and Trade’s Trade Remedies Authority.
The preliminary data from the US International Trade Commission showed that during 2019-2021, the value of Vietnam’s exports to the US, which were under investigation, surged to nearly 31 million USD in 2021 from 6 million USD in 2019.
Under the US investigation regulations, the DOC will decide to initiate an investigation into the case within 20 days from the date of receipt of the petition. The expected date is November 1.
In order to protect their legitimate interests, the Vietnamese producers and exporters are advised to actively study and grasp the US’s anti-dumping investigation procedures.
They are required to fully follow the US investigation agency’s requirements and work closely with the Trade Remedies Authority during the investigation.
Techfest Mekong 2022 kicks off
The startup festival in the Mekong Delta region (Techfest Mekong 2022), themed Khat Vong Vung Dat Chin Rong (Aspiration of the land of nine dragons), opened in Can Tho city on October 19.
The two-day event, which is co-organised by the municipal People’s Committee and the Ministry of Science and Technology, attracts between 3,000 and 5,000 participants.
The festival features more than 100 physical and 30 virtual exhibition booths, showcasing products of start-up projects in the Mekong Delta region as well as those from foreign countries.
The third forum on start-up and creative innovation in Mekong Delta and thematic seminars will also be held within the framework of the event.
Source: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes
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