Investors have paid greater attention to sustainable construction in real estate, especially green office, to satisfy the new requirements of tenants, according to experts from Savills Vietnam.

They predicted that by 2025, green office will become a major trend. Hoang Nguyet Minh, Commercial Leasing Director of Savills Hanoi, said that from now to 2024, at least six office projects will receive green certificates.

Green has become an indispensable requirement in the current office space design. In addition, the requirements for workplace has gone beyond space and extended to issues of health, sustainability and diversity of working methods, she said.

Savills’ statistics for the Hanoi market showed that leasing activities of the office segment have grown strongly, mostly from the vigorous economic development of the capital city with GDP expansion of 15.7% in the third quarter and sustainable FDI inflows.

Currently, the total office supply in the Hanoi market is about 2.13 million sq.m, coming from 189 projects, down 1% quarter on quarter after two buildings stopped leasing.

Savills Vietnam forecasts that the supply in the non-CBD area from 2023 to 2025 is likely to be quite abundant with about 699,000 sq.m from 19 new projects, mostly in the city’s western region.

State Bank of Vietnam increases interest rates from October 25

The State Bank of Vietnam (SBV) yesterday just issued a decision on the adjustment of savings' interest rates from October 25, 2022. This is the second time the State Bank has raised the operating interest rate to stabilize the currency exchange rate in the face of fluctuations in the international market.

Following the central bank’s decision, key interest rates would be hiked by one percentage point, with effect from today. The interest rate cap for deposits of one to less than six months at credit institutions will increase from 5 percent per year to 6 percent per year while the maximum interest rate applicable to demand deposits with a term of less than 1 month is from 0.5 percent per year to 1 percent per year.

Specifically, the State Bank increased the refinancing interest rate from 5 percent a year to 6 percent a year while the discount rate from 3.5 percent a year to 4.5 percent a year.

Moreover, for overnight loans in interbank electronic payments and loans made by the central bank in clearing transactions with local commercial banks and foreign bank branches, the interest rate will surge from 6 percent to 7 percent per year.

Especially, the maximum interest rate for savings in Vietnamese dong at people's credit fund and micro-finance organizations from 5.5 percent per year to 6.5 percent per year. Interest rates for deposits with a term of 6 months or more are set by credit institutions on the basis of market capital supply and demand.

The maximum short-term lending interest rate in Vietnamese dong of credit institutions for borrowers to meet capital needs for the number of economic sectors and industries increased from 4.5 percent a year to 5.5 percent a year.

Vietnamese HDPE pellets not subject to safeguarding duties in the Philippines

The Philippines will not impose safeguard duties on High-Density Polyethylene (HDPE) pellets imported from Vietnam, said the Philippine Tariff Commission (TC) in its final conclusion.

The TC had proposed the imposition of 2% safeguarding duties on the product over the course of three years as a means of preventing the adverse impacts caused by imported HDPE pellets on domestic production, according to the Vietnamese Ministry of Industry and Trade (MoIT)'s Trade Remedies Authority.

However, the imported HDPE pellets are not to be subject to the tax rate as Vietnam is on the list of developing countries which has an import volume of under 3%.

The Philippines’ administration announced on June 17 that there was no safeguard measure imposed on the importation of Linear Low-Density Polyethylene (LLDPE) pellets and granules from various countries, including Vietnam.

The final decision was based on the Philippine Tariff Commission’s investigation report which concluded that there should be no increase in imports of LLDPE pellets and granules, both in absolute terms and relative to domestic production, during the period of investigation from 2015 to June 2021, according to a statement released by the Philippine Department of Trade and Industry (DTI).

“Since it has been established that LLDPE pellets and granules were not imported in increased quantities during the period of investigation, the determination of serious injury or threat thereof, causation, and unforeseen developments has become moot and academic,” the statement said.

As a result, HDPE pellets, LLDPE pellets, and granules imported from Vietnam will not face safeguard duties in the Philippine market.

Textile and garment sector bears the brunt of global uncertainties

Textile and garment businesses are facing pressure due to weaker purchasing power caused by mounting inflation and other global uncertainties.

Textile and garment exports in September dropped by nearly 1.2 billion USD, or 27%, from the previous month, to 3.2 billion USD. Sharp export declines were recorded in the US, Europe, Japan, the Republic of Korea (RoK), and China, according to the General Statistics Office.

The SSI Securities Corporation said the number of orders placed for the fourth quarter of 2022 fell by 25-50% from the second quarter, when orders increased strongly, because the unsold inventory in import markets is high at present.

Many companies have received orders to be delivered in the first quarter of 2023, but the order number is still much below their capacity, SSI noted.

It added the enterprises whose buyers are mainly in the US and Europe will be hit harder compared to those exporting to Japan and the RoK.

Aside from inflation, fluctuations in material prices are also a problem.

Vietnam Airlines to provide online check-in service at Buon Ma Thuot Airport

Vietnam Airlines is going to provide the online check-in service for passengers departing from Buon Ma Thuot Airport in the Central Highlands province of Dak Lak from October 25.

The service aims to improve convenience for passengers, the national flag carrier said.

With this latest move, the number of airports with its online check-in service available will increase to 20, among the 22 domestic airports and 30 international ones the airline is operating at. Vietnam Airlines is also working to provide this service at all the airports it flies from.

Passengers can handle check-in procedures online via www.vietnamairlines.com or the mobile app of Vietnam Airlines between 24 hours and one hour prior to their flight departure. After that, they will receive an online boarding pass to show at security.

Among Vietnamese airports, the service are now available at Noi Bai, Tan Son Nhat, Da Nang, Cam Ranh, Van Don, Cat Bi, Vinh, Chu Lai, Con Dao, Phu Quoc, Da Lat, Dien Bien, Can Tho, Tho Xuan, Pleiku, Phu Cat, Phu Bai, Dong Hoi and Tuy Hoa.

Vietnamese farm produce raise profile in Australia

The Vietnam Trade Office in Australia is showcasing Vietnamese agro-fisheries at Foodservice Sydney 2022 from October 23-25, one of the world’s annual biggest food industry and dining service exhibition.

The Vietnamese products on display include fresh fruits, packaged seasoning, coffee beans, cashew nuts, processed food, tea bags, frozen seafood and several types of popular rice like Ong Cua ST25 rice which has won the World’s Best Rice award and recently obtained trademark in Australia.

Visitors to the Vietnam’s stall also have a chance to receive and taste this rice variety for free.

At the same time, the office is holding an international fair of Vietnamese goods on digital platform from October 24-30, thus enabling Vietnamese firms to access Australian consumers effectively.

Both events are part of the Vietnamese Goods Week hosted by the office in many Australian localities from October 23-30.

Meanwhile in Western Australia state, the office in collaboration with MCQ supermarket chain and national flag carrier Vietnam Airlines held an event to popularise Vietnamese farm produce, offering shoppers a chance to win a Vietnam Airlines’ round-trip ticket from Australia to Vietnam, as well as grab other attractive agricultural products.

Domestic firms supported to boost exports to China

The Vietnam Trade Office in Beijing, its chapters and trade promotion offices in other Chinese localities have worked hard to support Vietnamese businesses to access and fully exploit the Chinese market in various forms, towards further promoting exports to the country, said Commercial Counselor at the Vietnamese Embassy in China Nong Duc Lai. 

Before the outbreak of the COVID-19 pandemic, the office regularly organised Vietnamese business delegations to China to explore the market, seek partners and attend China's major international fairs such as China International Small and Medium Enterprises Fair (CISMEF), China-ASEAN Expo (CAEXPO), China International Import Expo (CIIE), and China-South Asia Exposition and China Kunming Import and Export Fair.

Since the pandemic broke out, Vietnamese firms have been supported to participate in fairs online in combination with directly exhibited products through their import agents in China, and introduce goods on e-commerce platforms, Lai said.

The office have made every effort to protect the interests of enterprises doing business in China on the basis of the host country’s legal regulations, Lai affirmed. 

In the coming time, the office will coordinate with units of the Ministry of Industry and Trade, Vietnamese localities and business associations to organise events to introduce fruits and farm produce in general and food and processed agricultural products of Vietnam in some Chinese localities; and programmes to connect Vietnamese firms and Chinese importers.  

Ideas gathered for draft national programme on improving labour productivity

The Ministry of Planning and Investment (MPI) said it has collected opinions from ministries, sectors, localities as well as domestic and foreign organisations and experts on its draft national programme on raising labour productivity and the government's draft resolution on the programme.

According to Dang Duc Anh, Vice Director of the MPI's Central Institute for Economic Management (CIEM), the draft programme highlights viewpoints, targets and solutions to improve labour productivity in the 2022-2030 period and measures to realise them.

It focuses on analysing the labour productivity in particular industries, regions, economic sectors and influencing factors; mechanisms and policies affecting labour productivity, with a broader scope than previous projects, he said.

Meanwhile, it also generally analyses the economy, economic sectors, key economic regions; results achieved in terms of labour productivity of the whole country and by economic sectors, regions and localities; labour quality; and limitations and weaknesses in the field, thus giving specific tasks and solutions, said Anh.

Commenting on the draft programme, Deputy Minister of Planning and Investment Tran Quoc Phuong said that the draft scheme should highlight that increasing labour productivity will be a key driver for socio-economic recovery and development, and at the same time a key motivation for the improvement of incomes and quality of life.

He stressed that improving labour productivity must base on the premise of reform, the improvement of the quality of market economy institutions and the restructuring of the economy in a practical and effective manner, with the leading role being digital transformation, the innovation of growth models of key economic regions, the restructuring of economic space, urban economic development, and the promotion of regional linkages.

The process will contribute to restructuring the economy, sectors, regions and economic zones towards increasing competitiveness, innovation capacity, independence, self-reliance and resilience of the economy, he added.

Ample room for Vietnamese banana exports in Japanese market

With the quality of local bananas meeting Japan’s quality standards, there is plenty of room ahead for Vietnamese banana exports in the Japanese market moving forward.

While Japan's imports of bananas from major markets endured a downward trajectory in volume, its imports from Vietnam, Peru, Indonesia, Thailand, and Laos recorded an upward trend during the reviewed period.

Japan's banana imports from Vietnam in eight months hit 5,700 tonnes, worth US$4.6 million, up 20.1% in volume and 37.7% in value compared to the same period from last year.

The proportion of imports from the Vietnamese market made up only 0.8% of the total amount of bananas imported into Japan, up 0.2% on-year.

Representatives from the Vietnamese Trade Office in Japan said not only bananas, but many other local agricultural products and foodstuffs have won the trust of Japanese consumers, noting that quality is considered to be a crucial factor in helping Vietnamese goods create their own brands and compete with goods from rivals. 

Vietnamese wood exports to US surge over nine-month period

The opening nine months of the year witnessed the export of timber and wooden products to the United States grow by 1.9% to US$6.8 billion on-year, according to details given by the General Department of Vietnam Customs.

September alone saw the export value of timber and wood products to the fastidious market soar by 56.5% to reach US$573.6 million compared to the same period from last year.

During the past eight months of the year, Vietnamese wooden furniture exports to the US declined by 2.8% to US$5.5 billion on-year, with the export proportion accounting for 87.93% of the total export value of timber and wood products to the US market.

According to industry insiders, inflationary pressure has forced consumers in the US to tighten their spending, thereby leading to a slowdown in demand for timber and wooden furniture products in this market.

However, there is a positive outlook ahead for exporting timber and wood products, especially wooden furniture to the US in the time ahead, as the home construction season begins in the market, leading to a rise in the demand for wooden furniture products, experts noted.

Despite these positives, escalating inflation in the US coupled with the ongoing Russia-Ukraine conflict will continue to ramp up the price of raw materials and fuel, causing a sharp increase in the businesses’ costs.

Enterprises focus on employee reskilling, upskilling efforts: research

At a time characterised by talent shortages, changing business models, and increased economic volatility, contingent workers have become more important, according to research released by the workforce solutions company ManpowerGroup.

In partnership with Everest Group, ManpowerGroup has recently launched the ‘Future of Work’ series, which provide practical advice to HR leaders and organisations on how to navigate the next normal for their organisations.

The research leverages existing data from a survey of 200 senior HR leaders across various geographies, industries, and organisation sizes.

It found that 73 per cent of organisations expect to increase the number of contingent workers in the next 12-18 months.

More than 90 per cent of organisations believe diversity is beneficial and want to improve their workforce diversity, equity, inclusion, and belonging (DEIB) initiatives which create connections, give people a sense of acceptance, and are essential for growth and well-being.

DEIB initiatives are currently well integrated in 19 per cent of surveyed organisations.

Before 2020, rapid technological advances, changing workforce demographics, and evolving customer expectations were already shaping work and the modern workplace, and COVID-19 accelerated this momentum.

Major disruptions have arisen and remote working has become mainstream.

While organisations agree with moving to a hybrid working model, the actual planning and transition is fraught with challenges.

The research showed that a willingness to accept remote work significantly improved an organisation’s ability to hire talent, as reported by 64 per cent of the surveyed HR leaders.

Around 83 per cent of enterprises have already increased their emphasis on employee reskilling and upskilling efforts compared to before the pandemic. Nevertheless, they need to overcome certain barriers to fully realise their skilling goals.

HCM City property retail market to recover
     
The HCM City commercial property market has returned to its growth trajectory from before the COVID-19 pandemic thanks to the retail and services sector as well as increasing number of foreign visitors to the city, experts said.

A report from the city’s Department of Industry and Trade affirmed that one year after the COVID-19 pandemic, local industries are back on track. Many sectors have reached positive growth.

The department informed that the city’s total retail sales and services in the first nine months of 2022 reached VND466 trillion (US$177 billion), up 21 per cent over the same period a year ago.

During this period, international visitors hit 1.87 million, 16.4 times higher than the same period last year. About 70 per cent of those visitors came from Asia.

Thanks to these positive signals, the property market has recovered.

Real-estate services firm Cushman & Wakefield said that the occupancy rate of the whole market reached 93 per cent, and the total accumulated supply of shopping malls, department stores and commercial units reached 1 million sq.m. The average rental price is US$48.3 per one sq.m each month, up 5.6 per cent over the same period last year.

In its latest quarterly report, CBRE said that HCM City recorded improved vacancy rates in both CBD and non-CBD areas compared to the previous quarter.

According to CBRE, the occupancy rate in the third quarter in the central area reached nearly 93.8 per cent, up 1.0 percentage points quarter-on-quarter.

Meanwhile, the vacancy rate of the non-CBD area of HCMC was 11.4 per cent, down 1.2 percentage points quarter-on-quarter. However, compared to the same period last year, the vacancy rate recorded an upward trend of 4.3 percentage points year-on-year in the CBD.

Former deputy director of Dong Nai Sci-Tech Department detained

A former deputy director of the Dong Nai Province Department of Science and Technology, Nguyen Ngoc Phuong, has been detained on alleged charges of violating regulations on the management and use of the State’s assets.

His subordinate, Tran Thi Huynh Phuong, former chief accountant of the Dong Nai Department of Science and Technology, has also been detained for the same charges at the Dong Nai Biological Technology Applications Center.

The prosecution against the defendants is part of an investigation into irregularities at the expansion project of the greenhouse farming model with VietGAP standards and the greenhouse project at the Dong Nai Biotechnology Applications Center in Cam My District.

The violations in those projects caused a total loss of over VND27 billion to the State’s assets, according to the local police.

Regarding this case, the local police also prosecuted Pham Van Sang, former director of the Department of Science and Technology, and Nguyen Quang Tuan, former director of the Dong Nai Biotechnology Applications Center, in February 2021.

As Pham Van Sang fled the country, the police in Dong Nai Province have requested Interpol to place him on the wanted list.

Farmers reluctant to increase livestock amid uncertainties

Livestock farmers at this point in time usually boost meat supply in the lead up to the Lunar New Year; however, they need to take economic uncertainties and market upheavals into account before expanding their livestock this year.

According to a representative of the Dong Nai Animal Husbandry Association, the average price for live pigs at farms ranges from VND55,000 to 58,000 a kilogram. Meanwhile, the production cost of live pigs has increased to VND55,000 per kilogram.

In Long An, many farmers are reluctant to boost their livestock. Despite the high price of live pigs at VND60,000-VND62,000 per kilogram there, many livestock breeders have kept their herds unchanged, while others have scaled down farming. Meanwhile, several others have decided to change their practice by retailing their pigs, instead of wholesaling them as in previous years.

A representative of an organic free-range chicken cooperative of Tan Phu in Tan Khanh Commune in Thai Nguyen Province said that they would supply 20,000 chickens weighing some 2 kilograms each to the Tet market. Currently, the cooperative has kept the volume of cattle and poultry stable.

The remarkable rise in livestock costs, a stronger U.S dollar resulting in a hike in the animal feed price, and the risk of animals being exposed to diseases due to unfavorable weather are the main reasons why breeding households are reluctant to increase the volume of cattle and poultry this year.

In addition, since October 6, 2022, the Veterinary Certification issued to those who have pigs transported out of provinces has been required to include a testing certificate for the non-African swine fever virus. Therefore, the farmers are concerned that the additional paperwork will increase production costs.

Cai Lay BOT stations collect nearly VND700 million each day

Since toll collection officially resumed on October 7, the two Cai Lay BOT stations have collected nearly VND9.5 billion, averaging out at VND700 million a day, according to the main investor of the project.

The number of vehicles passing through the toll stations reaches roughly 19,400 a day, some 600 lower than the figure during the trial period, said Le Trung Duy, director of Tien Giang National Highway 1 Investment Co., Ltd. as the investor.

Roughly 70% of the vehicles use the electronic toll collection lanes, while the rest pass through manual toll collection lanes.

The two toll stations in the Cai Lay BOT project originally aimed to collect toll fees from vehicles traveling on the 38.5-kilometer national highway section in Cai Lay Town to recoup the upgrade project’s investment.

The Cai Lay BOT project required an investment of nearly VND1.4 trillion, excluding VND60 billion for the setup of the new toll collection stations and VND500 billion being the interest on bank loans during the suspension of toll collection.

Central provinces see shrimp deaths following storms and floods

Many businesses in central provinces have faced mass shrimp deaths due to recent extreme weather conditions.

The coastal province of Phu Yen has reported a mass death of shrimp after Typhoon Sonca struck. Heavy rainfall has changed the natural ecology of shrimp, with total loss at around VND2 billion, according to the officials.

In early August, some 119 floating cages of fish and lobsters in Khanh Hoa Province were damaged due to a lack of oxygen in the water.

The unfavorable conditions have also made life difficult for other farming businesses, including those raising vannamei (or white leg) and black tiger shrimps.

In Quang Nam Province’s Tam Ky District, roughly 50 hectares of vannamei shrimp died in the first season of 2022.

Meanwhile, environmental conditions have caused shrimp diseases and deaths in more than half of a 100-hectare farming area in Nghe An Province’s Hoang Mai Town.

Ho Chi Minh City’s travel boom looming

Ho Chi Minh City’s travel market is forecast to boom later this year and early next year, especially during Christmas and New Year holidays, affording the city a golden chance to attract domestic and foreign visitors.

With advantages in natural landscapes and recreational space, the city's tourism sector is developing night-time products and services apart from day-time ones to lure more visitors and increase revenue to its economy.

In the first nine months of this year, the city recorded over 92.3 trillion VND (4 billion USD) in tourism receipts, up 15.5% from the yearly target. More than 2 million foreigners arrived in the city, or 60.3% of the initial plan.

During this autumn-winter, Vietravel company plans to serve about 90,000 tourists and treat them to a heap of promotions and new tours.

The municipal tourism industry is also working closely with travel agents to welcome foreigners as the end of this year is low season for domestic vacationers following the peak season in summer.

Between now and the year’s end, the department is also curating unique tours of each district and outlying district.

The tour called “District 6 - A small story inside Cho Lon town”, which has been recently launched, makes the most of potential and advantages in food and relic sites imbued with identity of the Vietnamese people and those of the Chinese origin. The “District 11-A different Cho Lon” tour also features new attractions to invite visitors back.

Vietnam promotes trade cooperation opportunities in the Netherlands

The Ministry of Industry and Trade recently hosted a trade promotion conference in the Netherlands to sound out trade cooperation opportunities and introduce the potential for local firms in the market.

Addressing the conference, Vietnamese Ambassador to the Netherlands Pham Viet Anh noted that economic-trade relations between Vietnam and the Netherlands are growing considerably, gradually becoming an exemplary cooperation model between Vietnam and other European countries. Despite the negative impact caused by the COVID-19 pandemic, bilateral trade exchanges remained active through various online activities.

Joost Vrancken Peeters, chairman of the Netherlands-Vietnam Chamber of Commerce, shared the success stories in import-export activities with Vietnam and introduced quality requirements aimed at ensuring Vietnamese export items, including farm products, are accepted in the Dutch market.

He stated that Vietnamese businesses still lack information about markets overseas and they require a partner who is a distributor in the Netherlands who fully knows the needs and tastes of local consumers, as well as the relationships that exist with local businesses.

During the gathering, several Vietnamese owned businesses operating in the Netherlands said they are ready to cooperate alongside new partners in an effort to distribute Vietnamese products at retail chains in this market.

Vietnamese businesses attending the conference also displayed major export products and exchanges opportunities with Dutch businesses at the event. 

Can Gio int’l container terminal planned to supplement Cai Mep-Thi Vai

A port project in HCMC’s outlying district of Can Gio will serve international shipping and transit demand, enhancing the operational effectiveness of the Cai Mep-Thi Vai port, according to Phan Van Mai, chairman of HCMC.

Some 80% of the project operation will focus on international shipping services, according to the Mediterranean Shipping Company with its subsidiary Terminal Investment Limited, the project’s investor.

According to Mai, the project will increase the competitiveness of Vietnam and the Southeastern region, which will help draw more foreign direct investment inflows.

The Can Gio international container terminal project has a total investment of US$5.9 billion, funded mainly by local and foreign investors. It is expected to handle vessels with 250,000 DWT.

The port covers roughly 90 hectares and includes over nine kilometers of wharves, with a designed capacity of 18 million­­­ twenty-foot equivalent cargo units per year.

The project is divided into seven phases, with its first phase expected to begin in 2024 and put into service by 2027. The last phase will be launched in 2040, according to the Vietnam News Agency.

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