A chip design centre (SCDC) and a chip design lab were inaugurated on October 21 at Saigon Hi-Tech Park (SHTP) in Ho Chi Minh City.

The Chip Design Lab, the first important infrastructure of the SCDC, has been designed to deploy co-operation contents of both the SCDC and Synopsys, one of the world’s leading providers of electronic design automation solutions and services.

The lab will provide Synopsys’ design software programmes to various schools and institutes through a virtual private network (VPN) and organise Training of Trainers (ToT) Courses on integrated circuit (IC) design specifically for use by lecturers and advanced training courses on IC design.

Nguyen Anh Thi, president of SHTP, said that the Chip Design Lab has been built to demonstrate the commitment of the Hi-Tech Park by making full use of opportunities from Vietnam’s engagement in the global value chain of the semiconductor industry.

SHTP will continue to strive to improve the infrastructure of the SCDC to make it a flagship centre in Vietnam’s future semiconductor industry, said Thi.

Earlier SHTP and Synopsys signed a Memorandum of Understanding (MoU) on August 26 to cultivate the integrated circuit (IC) design talent in Vietnam.

Through Synopsys Academic & Research Alliances (SARA), Synopsys will provide its University Software Programme, a scheme which includes curriculum, educational resources, and the ‘Train the Trainers’ programme to the SHTP in order to set up its chip design centre.

This centre will connect with chip manufacturing companies to deploy Multi Project Wafer services to support research groups and start-ups. This will be along with providing technical infrastructure to support IC packaging and testing, as well as implementing co-operation programmes to mobilise international resources for the development of the domestic semiconductor industry.

Budget revenue forecast 14.3 per cent higher than plan this year

Budget revenue was forecast to be 14.3 per cent higher than the plan this year but the structure lacked stability as the increase was mainly from land-related revenues.

According to the report presented by Minister of Finance Hồ Đức Phớc to the National Assembly at the meeting on Thursday, budget revenue in the first nine months of this year met 94 per cent of the plan, of which, domestic revenue was equivalent to 88.9 per cent of the plan while the revenue from crude oil and import-export was 11.3 per cent and 8.8 per cent higher than the plan, respectively.

Regarding budget spending, Phớc said that spending in January – September was estimated to meet 60.9 per cent of the plan. The spending for investment and development was equivalent to 48.1 per cent.

For the full year, budget spending was forecast to be 14.1 per cent higher than planned.

The disbursement rate of public investment was expected at 96 per cent.

Việt Nam was expected to run a trade deficit of 4.5 per cent of GDP this year, which was within the National Assembly’s allowed limit, Phớc said.

The Government would strive to increase budget revenue and enhance savings to reduce the level of overspending, he said.

Chairman of the National Assembly Finance and Budget Committee Nguyễn Phú Cường said that the structure of budget revenue still lacked stability as the increase was mainly from land-related revenue.

Local budget revenues were also uneven among provinces and cities, together with problems in the decentralization of revenue sources between the central and local budgets, Cường said.

The disbursement of capital for investment and development remained slow, he added.

Regarding budget revenue estimate for 2023, Cường noted that the world was to continue facing increasing risks, uncertainties, difficulties, and challenges.

The domestic economy was expected to continue the recovery track but inflation, increasing product costs, supply chain risks, weakening global demand, policy adjustments of major economies and major trade partners, as well as natural disasters would create pressure on the implementation of budget revenue and expenditure targets.

The National Assembly's Finance and Budget Committee urged the Government to develop the financial and budget plan for 2023-25 period with practicality and feasibility.

Two firms investigated for late fuel price stabilization fund transfers

The Ministry of Public Security has launched a probe into two fuel firms for their delays in transferring a combined VND24 billion to the fuel price stabilization fund.

The Ministry of Industry and Trade today, October 21, said that upon receipt of documents from the ministry, the police had started the investigation, the local media reported.

The two fuel firms are Thai Son B.Q.P Petroleum JSC, headquartered on Phung Khac Hoang Street in HCMC’s District 1, and Duong Dong-Hoa Phu JSC, located in Binh Thuan Province’s Tuy Phong District.

In late June, the Ministry of Industry and Trade sent dispatches to the two fuel distributors urging them to pay the fund’s balance to the State budget. Accordingly, Thai Son B.Q.P Petroleum JSC would have to pay over VND21 billion, while the other owed over VND3.7 billion.

The two firms were ordered to send a report on their payments to the Ministries of Finance and Industry-Trade prior to July 10, but failed to do so, resulting in the probe.

Fishery sector takes various measures to get EC yellow card removed

Vietnam’s fishery sector is preparing for the visit by an EC delegation at the end of this month, during which they will inspect the fight against illegal, unreported and undocumented (IUU) fishing in the Southeast Asian nation.

The “yellow card” imposed by the EC has hindered the development of the domestic fishery sector as well as the country’s seafood processing and export. Therefore, the entire industry is working hard towards the removal of the warning.

The Ministry of Agriculture and Rural Development (MARD) and the aquatic sector have been striving to implement the 2017 Law on Fisheries and combat IUU fishing.

Since the imposition of the “yellow card” warning in 2017, all of the offshore fishing boats measuring at least 15 metres in length have been equipped with monitoring devices.

Many boats that committed violations of regulations have been strictly punished with their operation licences revoked, either temporarily or permanently.

General Secretary of the Vietnam Association of Seafood Exporters and Processors (VASEP) Truong Dinh Hoe said the association has rolled out concerted solutions in an effort to remove the warning, adding that it has coordinated with localities to hold dialogues with fishermen, helping them to remove obstacles in the IUU combat.

According to Hoe, apart from Europe, other markets such as Japan have also imposed the fishing rules, which has posed challenges to domestic businesses.

Given this, the VASEP suggested the ministry invest more in infrastructure at fishing ports, and digitalise the fishery sector, he stressed, explaining that digital data can attest efforts by fishermen and the sector in this regard.

Hoe also emphasised the need to change the mindset of fishermen in the new era – digitalisation – in order to reprieve the fishing ban.

The VASEP has also accompanied the ministry in the communication work to raise public awareness against IUU fishing, he said, adding that the association joins the Department of Agriculture and Rural Development of the Mekong Delta province of Ben Tre to present 1,000 notebooks with relevant contents to local students.

An EC delegation will visit Vietnam at the end of October to inspect the fight of IUU fishing.

Last year, Vietnam earned over 1.4 billion USD from fishery exports to the EU, with 420 million USD from seafood and 980 million USD from aquaculture.

European firms’ confidence in Vietnam’s business environment slightly declines but still strong: EuroCham

The confidence of European enterprises in Vietnam’s investment and business environment slipped further to 62.2 percentage points in the wake of a worsening global economic downturn but still remains strong, according to the recent Business Climate Index (BCI) survey published by the European Chamber of Commerce (EuroCham) in Vietnam.

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.

According to EuroCham Chairman Alain Cany, Vietnam offers great investment opportunities for European businesses, especially prospects in the medium- to short-term.

Through the EU-Vietnam Free Trade Agreement (EVFTA) and EU’s shared commitment to sustainable development, Vietnamese and European companies have a great deal of growth potential, he said.

These BCI results are encouraging, he said, adding that Vietnam will certainly be in a better position in two or three years, demonstrating its place among the most exciting and dynamic business and investment destinations.

Meanwhile, CEO of Decision Lab Thue Quist Thomasen said a worsening global economic environment is taking its toll on the optimism amongst European business leaders in Vietnam. However, by curbing inflation, improving credit ratings and continuing GDP growth, Vietnam’s story stands out as less pessimistic globally as companies plan and look forward to 2023.

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.

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.

Right from the first day of operating its factory, the company has always committed to 100% traceability of the entire supply chain from the source of feed ingredients to product processing, ensuring best practices in environment and animal welfare.

It has received close coordination from the Ministry of Agriculture and Rural Development’s Department of Animal Health during the supervision of poultry diseases and food safety of the supply chain as well as the implementation of sanitation requirement.

At the send-off ceremony for the lot, the department will present CPV Food with a Health Certificate to mark the first shipment of Vietnamese chicken under the brand name of CPV Food to Japan.

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.

Exports to Netherlands set to exceed US$10.4 billion this year

With Vietnamese exports to the Netherlands over the first nine months surging by 40.1% year on year to US$7.817 billion, the country is anticipated to rake in more than US$10.4 billion from exports to this demanding market this year.

At present, the Netherlands is Vietnam’s sixth largest export market in the reviewed period behind the United States, China, the Republic of Korea, Japan, and Hong Kong (China).

Among the 12 key commodities exported to the Netherlands, two groups of items - computers, electronics and components, and machinery, equipment, tools and spare parts - recorded turnover of US$1.963 billion and US$1,422 billion, respectively.

Vietnam enjoyed a huge trade surplus of US$7.337 billion with the Netherlands throughout the nine-month period, far higher than last year’s figure of US$5.068 billion.

The sharp rise in exports can largely be attributed to the Netherlands’ import and export scale, along with positive signs of the implementation of the European Union-Vietnam Free Trade Agreement (EVFTA).

With the export and import turnover to the Netherlands predicted to reach US$10.4 billion and US$704 million, respectively, Vietnam is expected to rack up a trade surplus of approximately US$9.7 billion this year.

Experts have advised local firms to utilise tax incentives under the EVFTA and strictly comply with set regulations relating to food hygiene, safety, and origin of goods in a bid to further accelerate exports to the Netherlands moving forward.

Vietnamese tourism promoted in Singapore

A tourism seminar about Vietnam and Ho Chi Minh City was held in Singapore on October 19.

Organised by HCM City’s Department of Tourism (DoT) and the Vietnamese Embassy in Singapore, the event drew the participation of nearly 200 representatives from DoT, Vietnam Airlines, the Vietnamese embassy in Singapore, and leading travel companies from the two countries.

Addressing the seminar, Nguyen Thi Anh Hoa, DoT’s director, noted that this is the first tourism promotion event that the city has organised abroad after a hiatus of more than two years due to the COVID-19 pandemic.

Singapore is an important market that contributes greatly to tourism in Vietnam and HCM City in particular, she said.

Le Cong Dung, Chargé d'affaires of the Vietnamese Embassy in Singapore, said that the seminar offers a good opportunity for tourism businesses in the two countries to connect and explore new opportunities.

At the event, representatives of Vietnam Airlines and leading travel companies in Vietnam such as Vietravel, SaigonTourist and Saco Travel introduced and promoted new products to Singapore and international travel agencies.

The seminar is part of a programme aiming to promote Vietnam and Ho Chi Minh City in Singapore organised by the DoT from October 17-22.

Within the framework of the event, activities included performances of ethnic musical instruments, painting of conical hats and other promotional activities held at ITB Asia Fair 2022.

Held annually since 2008 by the Singaporean company Messe Berlin, ITB ASIA is the largest international trade fair specialised in travel in Asia. This year's edition also attracted thousands of companies from Asia-Pacific, Europe, America, Africa and the Middle East.

Hanoi set to host Vietnam Cycle Expo 2022

Vietnam Cycle Expo 2022, the 11th international specialised exhibition of bicycles, is scheduled to take place from November 3 to November 5 at the International Centre of Exhibition (ICE) in Hanoi.

The event will be the first of its kind in the nation and offers the chance for both local and foreign businesses to introduce their range of products and strengthen trade connectivity.

According to statistics compiled by Vinexad Company, the exhibition area for bicycles and accessories is anticipated to capture the most attention from visitors who are both amateurs and professional.

Most notably, businesses will be able to sell between 10 and 50 vehicles after each exhibition, depending on each category and brand.

The prices of the bicycles will range between VND10 million and VND22 million per year, with brand products coming from China and Taiwan (China) that are assembled in Vietnam, in addition to some European models at higher prices.

According to a representative of Vinexad Company, there will also be commercial product lines such as indoor climbing products and services, bicycles, and accessories available during the occasion.

The function is anticipated to attract the most attention from the business community and sports lovers, with up to 5,000 visitors anticipated to attend.

Legal framework to protect consumers in cyberspace being completed
     
E-commerce, on the one hand, helps consumers buy and sell goods quickly, easily and conveniently, but also poses more risks.

These include the theft of personal information, as well as scams or the sale of fake and imitation goods. Sometimes resolving such issues can take a long time.

Dai bieu nhan dan (People's Representative) newspaper in collaboration with the Viet Nam Competition and Consumer Protection Authority (VCCA) under the Ministry of Industry and Trade held an online seminar on improving the legal framework to strengthen consumer protection in cyberspace in Ha Noi on Wednesday.

Data from the Ministry of Industry and Trade showed that cases of consumer rights violations increased rapidly in both quantity and severity, with about 1,500 cases per year in the 2016-20 period. This is also the boom period of e-commerce.

Meanwhile, current legal policies, especially the Law on Protection of Consumer Rights, which was promulgated 12 years ago, lack provisions suitable for business models with new elements in terms of digital transformation. Many new violations of consumer rights have also not been covered in the law.

In order to perfect the legal framework to protect the interests of consumers, especially in the e-commerce environment and in cyberspace, the Government proposed and was approved by the National Assembly to put the amended draft of the Law on Protection of Consumer Rights into the programme on building laws and ordinances this year.

It is expected that the amended draft of the Law on Protection of Consumer Rights will be voted on by the National Assembly at the fourth session, and considered for approval at the fifth session in May next year.

People play critical role in digital transformation: business execs
     
Having the right people to lead the digital transformation project and the right software providers that understand production process were the primary reason for success in digital transformation at his company, Le Quoc Hung, deputy general director of Saigon Food JSC, has said.

The human aspect was crucial in digitisation projects and required systematic thinking, ability to accept change, and learning and team working capability, he told a seminar on digital transformation hosted recently by the Vietnam Chamber of Commerce and Industry’s HCM City branch, and Global Enterprise Solutions.

ERP solutions also played a vital role in the digital transformation related to supply chains at his company, he said.

ERP helped the company unify data from the beginning of the supply chain and consolidate accounting data, and so it took only five days to complete month-end statements compared to 20 days earlier, he said.

Sales grew by 20 per cent year-on-year yet the indirect staff count decreased by 20 per cent thanks to leveraging ERP, he said.

It also helps his company decrease the cost of goods by 10 per cent every year, he added.

Speaking about the benefits of digital transformation in human resource management, Ly Xuan Nam, CEO of Tinh Hoa Solutions, said it would help businesses optimise resources.

Besides, it would help businesses identify bottlenecks and which departments/divisions were working inefficiently or were being overpaid, and make forecasts to help them anticipate future incidents such as employees leaving without notice or many quitting at the same time, he said.

Vo Tan Thanh, director of VCCI’s HCM City branch, said digital transformation was occurring in almost every type of business in Viet Nam.

A VCCI survey on digital transformation in the context of the COVID-19 pandemic found out that a majority of businesses had great expectations from it.

Almost all respondents expected digital transformation to usher in great changes in their production and trading activities, 71 per cent and 61.4 per cent expected it to help reduce production costs and paperwork, and 45.3 per cent expected it to help add value to products and improve product and service quality.

New airport developments set to take off soon

The Vietnamese government has rolled out a plan to develop several new airports, with billions of dollars expected to be poured into local facilities, contributing to the shaping of new economic zones across the country.

Nguyen Van Vinh, deputy director of the Vietnam Institute for Development Strategies under the Ministry of Planning and Investment, welcomed the developments.

“The development of new small airports is necessary, especially as Vietnam’s airport network remains smaller than in many countries in the region. With an open economy, Vietnam has witnessed a rising demand for travel and trade activities,” he told VIR’s roundtable on airport development on October 11.

The International Air Transport Association has forecast that, by 2035, Vietnam’s aviation sector will cater to up to 136 million passengers, double the expected number this year. However, Vietnam has only 22 airports, with many domestic terminals exceeding their designed capacity.

There are several examples from the past and present showing how airfields provide a boost to localities across the country.

Phu Quoc International Airport was built on the site of an old airfield developed during the French colonial period, and now it is one of the most visited areas of the country, while Quang Ninh is the first northern province to have a completely new airport since 1975.

Van Don International Airport, developed by Sun Group, is the first private airport in Vietnam. A civil and military facility in Quang Ninh, only 20km from Cam Pha city, it is expected to be the backup for Noi Bai International Airport in Hanoi. This contributes to shaping an important economic pole for the northeast localities of Quang Ninh, Haiphong, Hai Duong, and Hung Yen.

The economic area boasts a strategic location and abundant workforce to lure foreign direct investment. Vietnam Chamber of Commerce and Industry data shows that the four localities are magnets to foreign investors with over 2,000 related projects, trailing behind Ho Chi Minh City, Hanoi, and the southern province of Binh Duong.

Looking further afield, China has successfully developed its local airport system, and the question is whether Vietnam can attract private investors to develop local airports.

The Civil Aviation Administration of China has rolled out the red carpet for private investors to raise funding for civil airports.

Chinese policymakers set the goal of reducing state-owned airports while promoting the public-private partnership model in the development and exploitation of new airports.

The move is expected to ease financial pressure on the government and accelerate the construction progress. As of 2021, China boasts 248 airports, as reported by the Centre for Aviation.

Plans released in February 2021 indicate that China aims to have 400 civilian transport airports by the end of 2035 based on the estimated increase in passenger numbers. It means China will average around 10 new airports a year by 2035.

The Vietnamese government plans to develop 14 local airports by 2030, but this will depend on the market’s demand and the local community, with experts in the field pointing out that localities need to identify the reasonable level and potential for airport development carefully.

PPP model found suitable for small airports in remote areas

As public-private partnerships are proving efficient in more countries worldwide, Vietnam is being urged to promote the model in its future airport development plan to encourage private investment inflows.

After years of waiting for a green light to develop an airport, Nguyen Trong Hai, Deputy Chairman of Lao Cai People’s Committee, feels at ease as the authorities are going to select a capable investor in November.

The Sapa project costing VND7 trillion ($304.35 million) is the second airport project in Vietnam to get the government’s approval under the public-private partnership (PPP) format, after Van Don International Airport in the northern province of Quang Ninh.

Hai said at VIR’s roundtable on airport development on October 11 that the project is expected to make a big breakthrough in transport development in the province and northern midland and mountainous regions. It will also be a driving force for socioeconomic development, tourism, investment attraction, and job creation.

He added that along with the airport, the province has been preparing for the development of transport infrastructure connecting the airport to other local developing areas like Sapa, Y Ty, Bac Ha, and border gate areas to create favourable conditions for investment attraction.

“We have also built development planning along the Red River Delta. And the surroundings of the airport will be an urban area, trade centre, service area, and logistics services among others to facilitate economic growth,” Hai said.

Before Sapa, Van Don International Airport developed by Sun Group is considered as a successful example of PPP venture in the aviation sector.

This airport is evidence of how efficient a privately-invested project is with shorter development time and operational efficiency, and creates a premise for other private investors and localities to do the same.

According to Nguyen Van Vinh, deputy director of the Vietnam Institute for Development Strategies under the Ministry of Planning and Investment, air transport is one of the modes of transport witnessing the strongest development in recent decades. “This has resulted in strong development of aviation infrastructure and the need for airports in cities and provinces which bet on new opportunities from the facility,” Vinh said.

Together with Sapa, the government has approved in principle the building of Quang Tri Airport in the central province of Quang Tri as a PPP project.

And an expansion at Can Tho seems to have been added to the plan. However, Bac Giang, Ninh Binh, Binh Phuoc, and Ha Tinh provinces have had new airport proposals rejected.

Concerns related to the funding of the development costs, market demand, population, and distance have been raised because it can be substantial amid state budget constraints. Experts, including Tran Dinh Thien, former head of the Vietnam Institute of Economics, and Phan Duc Hieu, standing member of the National Assembly Economic Committee, at the roundtable agreed that it is necessary to build airports in cities and provinces to meet their development demands.

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