The Vietnamese government decided to raise retail oil and petrol prices by several hundreds of VND per litre as of 3pm on October 21.

The prices of petrol RON95 and RON92 E5 increased by VND340 and VND200 per litre to VND22,340 and VND21,490 per litre respectively.

Meanwhile, the diesel oil was capped at VND24,780 per litre, an increase of VND600 compared to the previous price adjustment cycle 10 days ago.

This is the second time in a row retail petroleum products have soared following the previous four decreases.

According to the Ministry of Industry and Trade, the prices of petroleum products in the world market has since the beginning of the year increased by 57-85% compared to the same period in 2021.

It anticipated that the world petroleum market would continue to evolve in a complicated manner in the remaining months of the year, especially due to the impact of the Russia-Ukraine conflict, that would cause scarce supply and high prices.

Domestic prices of oil and petrol in Vietnam are jointly adjusted every 10 days by the Ministry of Industry and Trade and the Ministry of Finance.

Ministry asks for solutions to help petroleum enterprises

The Ministry of Industry and Trade (MoIT) asked the Ministry of Finance (MoF) and the State Bank of Vietnam (SBV) to review and adjust the cost of importing petrol and oil, standard business costs and profit based on trading realities.

Because of the market's difficulties, several petroleum retail businesses have been closed or temporarily suspended their operation in different parts of Vietnam.

The MoIT stated that from the end of 2021, especially since the conflict between Russia and Ukraine began in February 2022, developments on the world petroleum market has still been complicated, causing a shortage in supply and rising price. As a result, the average world price of finished petroleum products in the first ten months of 2022 increased by 57-85% compared to the same period in 2021. 

However, from the end of June to the end of September 2022, petrol prices decreased continuously. However, from the beginning of October, they began to rise again due to OPEC's decision to reduce oil production. 

Recently, several petroleum retail businesses closed or temporarily suspended their work in HCM City, Can Tho, An Giang, Binh Phuoc, Dak Lak.

Besides the scarcity of global petroleum supplies, US dollar appreciation also exacerbated problems. 

Experts said this had caused key petroleum businesses to reduce costs or forced many of them to shut down. 

The MoIT said according to reports from the leading petroleum businesses and the Vietnam Petroleum Association, the cost of petrol and oil business continued to increase, especially imported petrol. 

In some localities, the Customs Sub-Department has stopped customs clearance for several key petroleum trading enterprises due to the lack of electronic data connection and late payment of taxes.

To assist in removing difficulties for the petrol and oil enterprises and ensuring a sufficient supply of petrol and oil for the domestic market, MoIT requested the MoF to review and adjust all costs relating to importing petrol and oil to Vietnam. 

MoIT also asked the General Department of Customs to create conditions for key petroleum trading enterprises and to clear the procedures for petroleum imports to serve the market. 

In addition, it also proposed SBV for policies to support and create conditions for petrol and oil businesses to access preferential interest rates and foreign currency sources to help businesses increase financial resources, reduce costs to import or buy petrol and oil, and ensure sufficient supply of petrol and oil for the domestic market. 

On October 12, 2022, Deputy Minister Do Thang Hai worked with 31 leading petroleum businesses to find solutions that remove difficulties and ensure the supply of petroleum to the market. 

Hay believed the problem began at the end of 2021. Therefore, the MoIT has worked with local businesses and provided recommendations and solutions to best handle the problem.

He assigned the Domestic Market Department to consider their recommendations and proposals, telling them if it is within the scope of the ministry, it should be done soon. 

He also said for other matters that were not under its authority and functions, the MoIT will coordinate with relevant ministries, departments, branches and localities to solve them.

Real estate transactions urged to be conducted via banks

All transactions related to real estate purchase or leasing, mergers, and acquisitions (M&A) should be conducted via banks to prevent money laundering.

Chairman of the National Assembly (NA)’s Economic Committee Vu Hong Thanh made the proposal during a NA session on October 20, discussing the draft revised Law on Anti-money laundering.

Presenting the draft law, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong noted this shows the country’s efforts in addressing legal loopholes pinpointed by the Financial Action Task Force (FATF), an inter-governmental policymaking body to combat money laundering and financing of terrorism.

According to Hong, one of the changes in this revision the legalisation of regulations on reporting suspicious transactions and the definition of suspicious signs of money laundering in the fields of banking, securities, insurance, and real estate.

Hong added the draft law also provides the responsibilities of organizations taking part in the transactions of e-currency with clear procedures of risk management, to supervise dubious transactions.

Reviewing the draft law, the Chairman of NA’s Economic Committee Vu Hong Thanh called for the Government to tighten the management and use of data from the national database on population, as well as standardize data to identify suspicious activities.

He stressed the necessity to have clear guidance on the implementation of the law, to avoid power abuse, as well as measures on data privacy and information disclosure on preventing money laundering.

Vietnam is among the top 10 countries with the highest number of cryptocurrency holders, which poses a high risk for money laundering and is a route for criminals to exploit for terrorist activities.

The draft revise Law on Anti-money laundering is set for further discussion by NA deputies in groups on October 24, before a plenary discussion on November 1 and subject to approval at the end of the fourth session, scheduled to end on November 15 after 21 working days.

Vietnam remains attractive investment destination for foreign financiers

Despite enduring the adverse impact of the COVID-19 pandemic and global uncertainties, several foreign investors continue to view Vietnam as an attractive investment destination, according to insiders.

A survey conducted by Cushman & Wakefield highlights that more than 200 senior representatives from leading investment firms have selected Vietnam as their primary investment destination among emerging markets, with the country obtaining nearly 80% of the votes, followed India getting 75%.

Despite concerns about global macroeconomic instability, rising interest rates, and high inflation, foreign investors continue to inject money into committed projects in the country, said Trang Bui, general manager of Cushman & Wakefield.

The Business Climate Index (BCI) published by the European Chamber of Commerce in Vietnam (EuroCham) and produced by YouGov Decision Lab indicates that 45% of European business stakeholders remain optimistic about future prospects for their own businesses ahead in the fourth quarter of the year.

Furthermore, respondents anticipate that investment planning, orders, and revenues will remain relatively stable in comparison with the previous quarter.

Vietnam to export first processed chicken lot to Japan

CPV Food Co., Ltd., a subsidiary of the CP Vietnam Corporation, plans to ship the first lot of processed chicken to Japan within October after managing to meet all food safety and quarantine requirements in the market.

Earlier, after sending a team to CPV Food in southern Binh Phuoc province to evaluate the chicken production and processing chain, the Ministry of Agriculture, Forestry and Fisheries of Japan had recognised that CPV Food satisfies all the veterinary hygiene requirements of Japan, enabling it to export products to the market.
 
CPV Food chicken breeding and processing complex was set up in December 2020 at Becamex Binh Phuong industrial park with a total investment of 250 million USD, becoming the largest and most modern of its kind in Vietnam.

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.

Vietnam joins leading Asia-Pacific industrial transformation tradeshow

A group of 10 Vietnamese companies participated in Industrial Transformation ASIA-PACIFIC (ITAP) 2022, the region's leading exhibition for Industry 4.0, taking place in Singapore on October 18-20.

Vietnamese firms' participation aims to equip advanced technologies as the industry eco-system continues to evolve post-Covid at the event organized by Constellar with international partner Deutsche Messe.

Joining approximately 18,000 attendees from more than 70 countries and regions during the three hybrid event days, the Vietnamese representatives expect more understanding of trends and developments from three main aspects: Digitalization, Talent & Workforce Development, and Environment Sustainability.

SCB appoints new chairman and board members

The new members of SCB's Board of Directors come from four state-owned banks, with SCB now under special supervision.

Bui Anh Dung is no longer SCB's authorised representative as of October 14. Instead, Vu Anh Duc, a former VietinBank executive, is now SCB's legal representative and chairman of the Board of Directors.

Other bankers from state-owned banks, including Pham Quang Tien, Vo Van Buu, Trang Nhan Hau, and Ly Thanh Phuong, are also the new members of the SCB's Board.

The new appointment comes hot on the heels of the SCB being put under special supervision by the State Bank of Vietnam (SBV).

Accordingly, the SBV instructed state-owned commercial banks (Vietcombank, BIDV, VietinBank, and Agribank) to nominate and hire competent and experienced personnel to manage SCB.

SHTP proposes reinstating one-door investment approval process

As the Saigon Hi-Tech Park (SHTP) in HCMC has seen a spike in new foreign-invested projects in recent years, it has proposed the HCMC government reinstate a one-door investment approval process to facilitate investment activity.

The current rules require investors to work with different agencies, in addition to the SHTP management board, to apply for an investment certificate.

Le Bich Loan, deputy head of the SHTP Management Board, said that in the past, it took investors only six months to get an investment certificate, while the current approval process requires two years.

In the past, most of the administrative procedures for an investment project were handled by the SHTP Management Board, so things were far faster. However, the high number of departments involved in the process of assessing investment projects at the SHTP in Thu Duc City makes the procedures strenuous and time-consuming.

For instance, the HCMC Department of Natural Resources and Environment is in charge of land-related issues, while the HCMC Department of Planning and Architecture handles planning procedures.

Many foreign investors have complained about the lengthy procedures that cost them time and money, forcing them to drop business opportunities. Meanwhile, hi-tech firms must promptly develop and launch their products to the market to achieve the highest efficiency in investment. Further, a breakthrough in technology can hardly be achieved if the investment is delayed.

SHTP now has 160 active projects with total investment capital of over US$12 billion, consisting of 51 foreign-direct investment projects with total capital of US$10.1 billion and 111 local projects with total capital of US$2 billion.

In 2021, SHTP-based enterprises booked US$20.9 billion in exports, making up 51.86% of HCMC’s total. This year, their exports are estimated to rise to US$23 billion.

Can Tho calls for further investment in incubator park

Can Tho City is calling for support from the Ministry of Science and Technology in seeking investment for the second phase of the Korea-Vietnam Incubator Park project.

The director of the Can Tho Department of Science and Technology, Ngo Anh Tin, proposed continuing to tap foreign official development assistance (ODA) loans for the project. He was speaking at the signing ceremony on October 18 to strengthen collaboration between the ministry and Can Tho in science-technology and innovation.

He said ODA would help to synchronize the equipment and machinery in two phases of the project as they already used ODA loans from Korea for the first phase.

Additionally, the department would strive to work with Korean organizations and partners to gain more capital to implement the project.

Around 2.5 hectares of land in the city is currently available for the second phase of the Korea-Vietnam Incubator Park project, according to the Can Tho Department of Science and Technology.

The first phase of the project was carried out at the end of November 2013 at Tra Noc 2 Industrial Park in O Mon District, Can Tho.

It required a total of over US$21 million, of which the ODA loans from Korea were US$17.7 million and the fund from the city’s budget was over US$3.4 million.

HCMC transport dept proposes replacing Cat Lai bridge project

The HCMC Department of Transport has proposed building two bridges across the Dong Nai River toward District 7 and Thu Duc City, replacing the long-planned Cat Lai Bridge.

The first bridge would connect the southern region of HCMC and Nhon Trach District, Dong Nai Province. The route’s starting point lies on the North-South axis road, moving toward the east, coinciding with Hoang Quoc Viet Street and crossing the Dong Nai River toward Nhon Trach District.

The bridge would help ease traffic congestion on the current Phu My Bridge and connect Tan Son Nhat and Long Thanh airports, creating an inter-regional axis for the development of the city’s southern part.

The second bridge would link Thu Duc City and Tam An Commune, Long Thanh District, Dong Nai Province. Two options for the second bridge’s location are under review.

The first option will be the inter-regional route directly connecting with the Go Cong intersection, making the crossroad convenient to connect HCMC and Dong Nai.

Meanwhile, the second option will be the inter-regional route which will not directly connect with Beltway No. 3 after crossing Tac River and will intersect with the parallel road of Beltway No. 3.

EU investment may surge in late 2022

Some 42% of European businesses active in Vietnam may expand their operations in the country, the European Chamber of Commerce in Vietnam (EuroCham) said in a recent report.

European investor confidence in Vietnam’s growth potential slightly decreased amid global economic uncertainties, as the Business Climate Index (BCI) continued to fall in the third quarter, according to a EuroCham survey released on October 17.

BCI is a regular barometer of the business sentiment among European companies operating in Vietnam and is conducted by YouGov, one of the world’s leading research and data analytics companies.

Though the economic growth reached a record high, at 13.67%, the BCI dropped to 62.2 percentage points, down 6.4 percentage points over the second quarter and 10.8 percentage points early this year.

However, BCI was still 10.2 percentage points higher than in 2019, the year before Covid-19 struck, and surpassed the fourth quarter of 2020 by 1.2 percentage points. 

According to Eurocham, the number of respondents believing the nation’s economy would stabilize and improve in the fourth quarter this year dropped by 18% to 42% over the previous quarter, while the number who thought the country would slip into recession rose by seven percentage points to 19%.

That said, 45% of business leaders felt positive about their business outlook in late 2022, down a mere four percentage points over the last quarter.

Global economic stagnation has made the current situation look bleaker than January. The remaining months of the year may worsen, Alain Cany, chair of EuroCham, said in a press release.

Finance ministry proposes zero export tax on NPK, 5 per cent on other types

The Ministry of Finance in the latest draft decree about preferential import and export tariffs proposed a five per cent export tax rate on fertiliser products, except for NPK which was proposed to remain subject to a zero rate.

As NPK was currently in excess in the domestic market, the zero export tax rate was expected to promote export of this type of fertiliser so as not to affect domestic production.

The draft was under the revision of the Ministry of Justice before being submitted to the Government for consideration.

Adjusting export tax rates on fertilisers was put into consideration in light of the fact that prices of fertilisers on the global and domestic market kept increasing rapidly.

The ministry pointed out that the domestic fertiliser production capacity was estimated to total 29.95 million tonnes per year which could meet the domestic demand providing fertiliser plants operated at full capacity. Except for potassium fertiliser, Viet Nam must be reliant on imports because there was no potassium mines in the country.

Cybercriminals continue to harry Southeast Asia’s remote workers: Kaspersky
     
Cybercriminals have relentlessly exploited remote and hybrid environments to target enterprises in Southeast Asia, according to the global cybersecurity and digital privacy company Kaspersky.

Kaspersky said it foiled over 47 million remote desktop protocol (RDP) attacks in the first six months of 2022 in the region where hybrid and remote work continues to be the norm.

The number of Bruteforce.Generic.RDP targeting remote workers totalled over 47.8 million incidents.

On average, Kaspersky solutions blocked 265,567 brute-force attacks in the region daily.

It secured most users in Viet Nam, Indonesia and Thailand from this type of threat, it said.

Two metro line projects in HCMC proposed rescheduling completion period

Under the authorization of the Vietnamese Prime Minister, Minister of Transport Nguyen Van The has just proposed the National Assembly to reschedule the completion period of the Ben Thanh - Suoi Tien metro line to 2028 and the Ben Thanh - Tham Luong metro line to 2030.

According to the Ministry of Transport, the project of the Ben Thanh - Suoi Tien metro line was approved by the Ho Chi Minh City People's Committee in 2007 and it is expected to be completed in 2017. 

Through the adjustment sections in 2008, 2011, 2019 and 2021, the total investment capital of the project has increased from VND17,387 billion (US$711 million) in 2008 to over VND43,700 billion (US$1.8 billion) in 2019.

Similarly, the initial implementation of the Ben Thanh- Tham Luong metro line project was rescheduled from the period 2010-2018 to the period 2021-2026 with a total investment rise to more than VND47,890 billion (nearly US$2 billion). 

With the current progress, the People's Committee of Ho Chi Minh City requested the Ministry of Planning and Investment to report to the Prime Minister for approval of the policy to allow the adjustment of the project implementation time. However, the proposal for the projects' implementation reschedules has to receive ideas from relevant ministries such as the Ministry of Finance, Ministry of Construction and Ministry of Planning and Investment.

35,000 more businesses using digital transformation platforms

The number of small and medium-sized businesses accessing and using platforms of the Program to support small and medium enterprises in digital transformation has so far grown strongly.

To promote digital transformation and develop the digital economy, the Ministry of Information and Communications (MIC) assessed and selected excellent digital platforms to participate in the program to support small and medium enterprises in digital transformation (SMEdx).

Accordingly, there were 45 Made-in-Viet-Nam digital platforms of 27 enterprises selected to participate in the program. By September 30, SMEdx had about 490,923 small and medium-sized businesses accessing and experiencing digital platforms of the program.

In the first 6 months of 2022 alone, more than 318,000 small and medium-sized enterprises participated in the SMEdx digital transformation program, an increase of 760 percent compared to 2021.

In particular, the number of small and medium-sized enterprises using the SMEdx digital transformation support platform has grown strongly over the months, since the beginning of this year.

In September 2022, the whole country had 62,047 enterprises officially using SMEdx platforms, an increase of more than 20 times compared to that of March 2022 with 3000 enterprises.

Funding shortfall leaves Ben Luc-Long Thanh Expy suspended

The slow pace of capital disbursement has impeded the progress of the Ben Luc-Long Thanh Expressway project, leaving it unable to meet deadlines. 

The construction value of the project has reached an estimated VND11 trillion, equivalent to some 80% of the construction volume, Vietnam Expressway Corporation (VEC) reported.

The project’s total investment is VND31.32 trillion, using loans of over VND13.6 trillion from the Asian Development Bank, nearly VND12 trillion from the Japan International Cooperation Agency and nearly VND5.7 trillion from domestic reciprocal funds.

However, legal procedures have hindered the capital disbursement, putting some construction bidding packages under suspension, said Pham Hong Quang, general director of VEC.

Thus, VEC proposed the government extend the deadline for the project to September 30, 2025, and allow it to raise funds on its own to carry out the project.

Recently, National Assembly Chairman Vuong Dinh Hue said during a project inspection that the National Assembly’s Standing Committee and the Government had focused on removing hurdles.

Accordingly, the National Assembly’s Standing Committee asked the Ministry of Transport to allocate foreign official development assistance and concessional loans to the project.

The Ben Luc-Long Thanh Expressway broke ground in mid-2014 and was scheduled for completion in 2019. The expressway is 57.8 kilometers long, connecting HCMC and the neighboring provinces of Dong Nai and Long An.

On July 22, 2020, the prime minister issued Decision 1131, extending the deadline to complete the project to December 31, 2023. 

Hanoi Gift Show 2022 opens

Hanoi Gift Show 2022 opened in the capital city on October 20 with 460 pavilions, including some run online.

The annual October event has become a prestigious large-scale fair in the Asia-Pacific region, said Vice Chairman of Hanoi People’s Committee Nguyen Manh Quyen at the opening ceremony.

The fair, to run through October 23, is anticipated to help businesses and handicraft production facilities strengthen connectivity and promote the consumption and export of handicraft products.

There will be programmes held in support of international importers, customers, and domestic enterprises as they seek to strengthen trade exchange activities, conduct negotiations, and sign export contracts via both direct and online platforms.

Hanoi Giftshow 2022 will offer international customers the opportunity to join a tour of some typical handicraft villages in the capital.

Vietnam attends 29th APEC Finance Ministers’ Meeting

Vietnam has posted high economic growth despite the fact the global economy and the Asia-Pacific Economic Cooperation (APEC) region faces many challenges as well as uneven incomplete recovery, Deputy Finance Minister Ta Anh Tuan said at the 29th APEC Finance Ministers’ Meeting held in Bangkok on October 19-20.

Vietnam's third-quarter gross domestic product grew 13.67% from a year earlier, raising its nine-month GDP growth rate to 8.83%, he said

According to Tuan, Vietnam's proactive, flexible and effective management of fiscal and monetary policies has contributed to curbing inflation, maintaining macroeconomic stability, and creating momentum for economic recovery.

In order to promote growth, strengthen the economy's resilience, ensure macroeconomic stability and national financial security, Vietnam will prioritise manage financial policies associated with perfecting regulations on mobilising national financial resources, strictly controlling the State budget deficit and public debt, and contributing to improving the resilience of national finance, he said.

The Vietnamese official also said that the contents of cooperation and international experience at the 29th APEC Finance Ministers’ Meeting is particularly practical to the current vision and mission of the Ministry of Finance.

Themed “Advancing Digitalisation, Achieving Sustainability”, the meeting attracted the participation of more than 200 representatives from 21 APEC member economies and international organisations.

Vietnam’s economy registers strong growth in Q3: WB

Vietnam’s GDP grew by 13.7% year-on-year in the third quarter of this year and 8.9% over the first three quarters, according to a report released by the World Bank (WB) on October 20.

The bank’s October report, Vietnam Macro Monitoring, shows that industrial production and retail sales posted another month of high growth rates (13.0% and 36.1% year-on-year) which could be attributed both to strong economic activities and to the low-base effects.

Both exports and imports growth moderated in September due to weakening demand from major export markets. FDI commitment fell in September, affected by the heighted uncertainty about the global economic prospects while FDI disbursement continued to improve, the report says.

Despite softening energy prices, CPI inflation accelerated from 2.9% in August to 3.9% in September largely due to higher education costs and rents. Core CPI inflation accelerated as well, from 3.1% in August to 3.8% in September. The terms of trade deterioration eased in the third quarter compared to the previous three months.

Credit growth accelerated from 16.2% in August to 17.2% in September as the State Bank of Vietnam (SBV) raised credit growth limits on some commercial banks.

With strong demand for credit, average overnight interbank interest rate rose from 3.5% in August, reaching 5.48% in mid-October, the highest since 2013.

According to the report, while the economic recovery has remained strong, heightened uncertainties related to the slowing global economy, rising domestic inflation, and tightening global financial conditions warrant increased vigilance and policy agility.

Given the economy has not fully recovered and growth in main export markets is expected to slow, continued active fiscal policy to support the economy should be closely aligned with economic outcomes and coordinated with monetary policy.

At the same time, as CPI and Core CPI are reaching 4% – the policy rate set by the authorities – monetary authorities should be ready to consider further tightening of monetary policy to ensure inflation remains anchored.

Given the end of forbearance and tightening financial conditions, the financial sector faces heightened risks and prompt SBV guidance would help stem materialisation of such risks at the sector level, potentially affecting the real economy.

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