Exchange rate falls as SBV withdraws cash through foreign currency selling channel

The daily exchange rate for the US dollar against the local currency (VND) has dropped after the State Bank of Vietnam (SBV) moved to withdraw cash through open market operation (OMO) and foreign currency selling channels for the seventh consecutive session.

Transactions on October 26 saw the SBV net withdrew nearly VND30 trillion through OMO and foreign currency selling channels, thereby raising total cash of nearly VND139 trillion from October 18 to October 26.

The move is expected to maintain the liquidity of the banking system at a sufficient level and at the same time help the central exchange rate to decline after spiraling to VND23,703 per a US dollar on October 25.

The following day saw the SBV set the central rate at VND23,698, a decline of VND5 from the previous day. It continued to adjust the rate to VND23,693 per a US dollar on October 27, a further drop of VND5.

On the inter-bank system, October 27 saw Vietcombank list the buying rate at VND24,608 and the selling rate at VND24,888, both down VND5 from the end of October 26.

Ministry of Transport eyes disbursing VND20 trillion in two months

Minister of Transport Nguyen Van Thang has ordered the speedy disbursement of over VND20 trillion before the new year.

He was speaking during a recent meeting with project developers and management boards, urging them to cut through the administrative red tape and improve disbursement efficiency.

The ministry still had VND20,194 billion to disburse until the end of the year, said Bui Quang Thai, director of the Transport Engineering Construction and Quality Management Bureau.

According to the disbursement plan, over VND10.4 trillion will be allocated to the first and second phases of 23 component projects of the North-South Expressway, VND1.5 trillion to key, urgent projects, VND5.4 trillion to other transport projects, and nearly VND2.5 trillion to ODA projects.

The slow pace of capital disbursement was due to slow site clearance, procedural works and the construction progress missing deadlines.

Projects unable to disburse must urgently return capital to State budget

Deputy Prime Minister Vu Duc Dam, Head of the Working Group No.3 on inspecting, urging, removing difficulties and obstacles, and accelerating disbursement of public investment capital in 2022, on October 26, worked with some ministries, agencies, and central and local agencies on the disbursement progress of public investment capital in 2022.

According to the Ministry of Planning and Investment, as of September 30, ministries, agencies, and central and local agencies have allocated 100 percent of public investment capital and disbursed VND2.6 trillion out of a total allocated capital of roughly VND12.54 trillion, reaching 20.77 percent.

Of these, seven ministries, central agencies and organizations have low disbursement rate of below 20 percent, including the Vietnam Journalists Association with 2.45 percent, the Vietnam Academy of Science and Technology with 3.55 percent, the Ministry of Health with 7.86 percent, the National University HCMC with 13.71 percent, the Vietnam Lawyers Association with 14.36 percent, the National University Hanoi with 15.03 percent, and the Vietnam Writers’ Association with 15.42 percent. Some ministries, agencies, and localities have proposed to reduce State budget investment plans in 2022.

Vietnam, India likely to complete trade target this year

Vietnam and India may complete the goal of 15 billion USD in two-way trade this year despite impacts from  the COVID-19 pandemic and geostrategic competition in the region and in the world, according to Vietnamese Trade Counsellor in India Bui Trung Thuong.

Thuong noted that trade between the two countries reached 11.43 billion USD in the first nine months of this year, a year on year rise of over 16%, with Vietnam’s trade surplus of 6.13 billion USD, up 35%.

Bilateral cooperation in tourism and investment also grew with the resumption and launch of direct air routes, he said, adding that Adani Group has committed to pouring 10 billion USD in Vietnam.

The official underlined that Vietnam and India can supplement each other in economic production. India is an important supplier of materials, while Vietnam has high demand for materials in service of production and export. Currently, India is Vietnam’s leading provider of aquatic, garment and textile, leather and pharmaceutical materials, he added.

Vietnam-Japan joint venture to expand rice cultivation for exports to Europe

The Vietnam-Japan joint venture Angimex- Kitoku has unveiled its plan to expand its area of pesticide-controlled Japanese rice production next year for export to the European market.

The company, a joint venture between the Japanese based Kitoku-Shinryo Company and the Vietnamese based An Giang Import-Export Company – Angimex now cultivates Japanese rice in the Mekong Delta province of An Giang, mainly in Long Xuyen city, Tri Ton and Thoai Son districts. It also grows rice in the nearby Kien Giang province to ensure export output.

Hanoi focuses on developing hi-tech, organic agriculture in new strategy

Authorities in Hanoi have issued a strategy on sustainable agricultural development from 2022-2030, with a vision to 2050, which focuses on developing modern, clean and organic agriculture.

By 2030, the gross regional domestic product (GRDP) growth rate of the agro-forestry-fishery sector will reach an average of 2.5-3% per year, and labour productivity will increase by 7-7.5%.

The capital also targets that hi-tech farm produce will account for more than 70% of total agricultural products by 2030.

Saigon Hi-Tech Park seeks to attract more high added-value projects

Ho Chi Minh City’s Saigon Hi-Tech Park (SHTP) seeks to attract investment in more high technology industries and other projects with high added-value, said head of the SHTP's management board Nguyen Anh Thi.

“Many leading corporations have been building their research and development (R&D) centres in SHTP for their further development in Vietnam,” he said.

By 2025, SHTP aims to become a smart technology park and the core of the interactive and innovative urban area in the city’s eastern part, contributing to the city’s socio-economic development.

In addition, it plans to attract investment of around 3 billion USD in 50 hi-tech projects and establish at least one global hi-tech enterprise.

To achieve these goals, it is going to accelerate investment projects for its scientific space with a total surface area of 93ha.

Khanh Hoa welcomes first direct flight from Kazakhstan

A Vietjet Air flight with 350 international passengers on board from Almaty city of Kazakhstan landed at Cam Ranh Airport on October 25, marking the first direct flight from the Central Asian country to the central province of Khanh Hoa.

Bui Quoc Dai, deputy managing director of the Anex Vietnam Travel and Trading Co. Ltd, said his firm coordinated with Vietjet Air to carry international visitors from Kazakhstan to Khanh Hoa in a package tour.

In the initial phase from October 25 this year to April 30, 2023, there will be two flights per week on the Cam Ranh - Almaty air route, using A330 aircraft that reduces the travel time to just over nine hours each way.

In the past, Khanh Hoa welcomed only a modest number of visitors from Kazakhstan partly due to the lack of direct flights.

The first direct air route linking its renowned beach resort city of Nha Trang with Almaty, the largest economic hub of Kazakhstan, is expected to meet the travel demand between the two countries.

Over 120 models introduced at Vietnam Motor Show 2022

Over 120 models are being displayed at the Vietnam Motor Show 2022 which opened in Ho Chi Minh City on October 26.

The five-day event, jointly held by the Vietnam Automobile Manufacturers’ Association (VAMA) and the Vehicles Importers Vietnam Association (VIVA), attracted the participation of 14 renowned brands, namely Audi, Brabus, Honda, Jeep, Lexus, Mercedes-Benz, Mitsubishi Motors, Morgan, MG, RAM, Subaru, Toyota, Volkswagen and Volvo.

The Vietnam Motor Show 2022 also marks the first-time participation of other means of transportation from well-known brands in the industry including trucks, large capacity vehicles and electric vehicles.

Visitors are offered an opportunity to experience a synchronised technology journey from check-in to taking part in surveys and QR code scanning games to collect brand logos and a wheel of fortune to receive gifts. Visitors can also experience AR technology showing the exhibition's 3D car models, videos and images of car brands with their own smartphones.

Hanoi beats annual tourism target in October

The number of tourists visiting the capital of Hanoi has reached over 15 million so far this year, far exceeding the set target of welcoming up to 10 million in 2022, according to the municipal Department of Tourism.

The department announced the capital has welcomed more than 15.38 million tourists between Jan. – Oct. 2022, representing a five-fold increase compared to the same period last year. Its revenue also quintupled, hitting VND43.69 trillion.

Of the total travelers recorded in 10 months, 983,000 were foreign visitors.

October alone witnessed the capital serve 1.51 million tourists, including 212,000 foreigners, and earn VND3.97 trillion from services.

The average occupancy rate of hotels in the 10-month period stood at 35%, up 14.1% year on year.

NA debates revision of Petroleum Law
     
The National Assembly (NA) yesterday debated a number of proposed changes to the country's Petroleum Law, which was slated for a vote by deputies on November 14.

Introduced for the first time 30 years ago, Viet Nam Petroleum Law was now in need of revision to better align with international standards and practices, national development strategy and objectives, as well as to create momentum for the oil and gas industry.

The revision took into consideration the falling output of current oil fields and difficulties in the exploration and extraction of new oil sources, as well as a lack of incentives to boost investment in the industry.

The debate highlighted the importance of product-sharing agreements as a means to encourage domestic and foreign investors to conduct studies and surveys and form partnerships with the Vietnam Oil and Gas Group, a wholly State-owned enterprise that oversees oil and gas activities in the country.

NA deputies stressed the importance of the industry in ensuring the country's energy security, improved legal framework and State management of resources.

Industry experts have long called for the implementation of a fairer approach that ensures legitimate rights and interests of investors and the State are upheld. They also urged the industry to pick up the pace of localisation by employing additional Vietnamese workers and companies in oil and gas extraction activities.

High inflation dragging down Vietnamese wood exports

Associations and businesses have acknowledged that the wood processing industry is struggling as exports to the United States decline.

In the US market, according to many analysts, the demand for wooden furniture often increases sharply in the last months of the year. But this year, the impact of high inflation and the continuous increase in interest rates by the US Federal Reserve further tightened people’s spending and reduced expenditure for non-essential items. This decline, combined with rising rents, drags down demand for furniture.

Vietnam’s wood industry was preparing itself for a market size of $20 billion in 2025. However, this aim is being affected by the reduction of purchases in most export markets, especially the US, which accounts for more than 60 per cent of the country’s total furniture export turnover. Vietnam’s wooden furniture exports to the US continued to decline, reaching only $1.41 billion in September, down over a fifth compared to August, as statistics from the General Department of Vietnam Customs (GDVC) showed.

The results of a quick survey of 52 timber enterprises conducted by US-based non-profit organisation Forest Trends and timber associations two months ago showed that, out of 45 enterprises exporting to the US, 33 confirmed that their revenue had decreased by nearly 40 per cent compared to the first months of the year.

Only 10 businesses said revenues increased compared to the previous months, but the increase was tiny, amounting to a meagre 11 per cent at best.

Warnings from domestic wood associations also indicated that the number of orders to the US market will continue to decline in the remaining months of the year, at an average rate of over 40 per cent. Meanwhile, about 60 per cent of enterprises surveyed said they were under financial pressure; and 70 per cent mostly due to costs for labour and input materials.

Last week, a survey team of the DOC went to Vietnam, directly inspecting wood enterprises exporting to the US. About 40 enterprises did well, but with 36 enterprises, the DOC is considering a lack of cooperation. Vietnam’s wood industry is facing two cases of anti-circumvention investigation from the DOC, with plywood products and kitchen cabinets.

Regarding the investigation of plywood products using hardwood materials imported from Vietnam, companies that can provide explanations that they do not use Chinese raw materials, accounting for 80 per cent of plywood exports during the investigation period, are still certified to export to the US and are not subject to anti-circumvention tax.

The DOC also initiated a tax evasion investigation on wooden kitchen cabinets imported from Vietnam in June.

Many domestic analysts believe that the US needs to consider historical factors. Since 2018, when the US-China trade war escalated, the US applied anti-dumping tax of over 183 per cent and anti-subsidy tax ranging from 22-195 per cent on wood products from China.

This has pushed the US market to import more wood products from Vietnam. As of 2021, Vietnam’s export turnover for these products to the US has increased from $3.6 billion to $8.8 billion, a compound growth rate of 25 per cent according to data from the GDVC.

Can Tho to develop VND3.7-trillion smart industrial park

The government of Can Tho City has presented an investment certificate to investors to develop phase one of the smart Vinh Thanh Industrial Park.

The 293-hectare industrial park will require an investment of over VND3.7 trillion, and be equipped with modern and innovative technology, focusing on green and sustainable development.

Work on the project is expected to start in 2023. Upon its completion, the industrial park will create jobs for 15,000-20,000 people.

The main investors comprise the Investment and Industrial Development JCS (Becamex IDC Corp), the Vietnam-Singapore Industrial Park Joint Venture. Co., Ltd (VSIP JV) and the Vietnam-Singapore Industrial Park and Township Development JSC (VSIP).

The project is located at Vinh Trinh Commune, Vinh Thanh District, Can Tho City, close to Vam Cong Bridge and Chau Doc-Can Tho-Soc Trang Expressway. The Lo Te-Rach Soi Expressway will pass through the industrial park.

Hanoi requires investors to make a plan for fire prevention

The Hanoi People's Committee issued a plan dated October 24 requiring all city's investors to make a plan for fire prevention work.

The plan includes four phases. In the first (2022), Hanoi will inspect and evaluate establishments that do not meet fire prevention requirements. The city will hold a conference where investors and business owners will meet to discuss and guide fire prevention procedures; all investors will be asked to commit to a fire prevention plan and roadmap.

In the second phase (2023), the city will inspect and monitor progress and urge commercial establishments to comply with the committed plan and roadmap to ensure that at least 30% of establishments are certified by competent authorities for fire prevention.

In the third phase (2024), at least 70% of the commercial facilities will overcome the shortcomings in fire prevention work and be certified by competent authorities.

In the fourth phase (2025), 100% of the establishments will improve fire prevention works and be certified by the competent authority.

Travel firms record slight increase in outbound tour

According to the travel firms in HCMC, the sharp increase in the USD exchange rate has directly affected outbound tour prices.

The net profit margin of travel companies is very low. Payment for tours that were purchased a few months ago was temporarily made based on the US Dollar exchange rate at the time of sale. The surge in the value of the U.S. dollar has become a big burden for businesses, said Mr. Nguyen Huu Loc, sale manager of Golden Smile Travel said.

Large groups of tourists and high-value tours will significantly affect the cost of organizing trips. If the interest rate is still rising, enterprises will launch solutions, such as fixing the equivalent exchange rate at the time of signing the contract with group tours, collecting surcharge fees, or refunding when the exchange rate changes, said General Director of Vina Group International Travel Joint Stock Company.

Ms. Nguyen Xuan Vy, sales manager of Trieu Hao Travel Company said that the business has adjusted the price of outbound tours by up to two percent. Other travel agencies have also made an price adjustment of outbound tours of 2-5 percent starting November.

Nghe An seeks stronger trade connections with RoK firms

Businesses of the Republic of Korea (RoK) and the central province of Nghe An met on October 26 to explore cooperation opportunities and promote trade.

The Nghe An Department of Industry and Trade reported the two-way trade turnover between Nghe An and the RoK reached US$388.9 million in the Jan. – Sept. period this year, up 14.3% year-on-year.

Nghe An has 54 exporters to the Korean market, mainly focusing on textiles, electronics and components, electric wires and cables, raw materials for textiles, leather and footwear, and processed fruit.

Moves made to tighten up offshore approval rulings

The Ministry of Natural Resources and Environment has proposed to the prime minister a temporary freeze on valuations and approvals to study offshore wind projects until existing regulations and technical issues have been removed.

The proposal was made in October after the ministry (MoNRE) received a range of interest to develop offshore wind power in Vietnam from both local and foreign investors, but there are no clear regulations on offshore surveys and assessment project capabilities as well as requirements for technical details.

To remove the current barriers to efficient permitting of site investigations and the award of offshore wind energy areas, the MoNRE proposes amending and supplementing a number of articles in Decree No.11/2021/ND-CP dated February 2021 assigning certain sea areas to individuals for use of marine resources. Current restrictions would be changed to allow foreign organisations and individuals to conduct offshore surveys.

The amendments, if approved, would establish specific restrictions on the documentation, methods, and timing for consent on offshore site investigations, which would be set at three months from the date of application. The ministry also suggests that survey activities for numerous or overlapping proposed projects in the same area be carried out collaboratively.

As of the end of August, there were 55 proposals to survey offshore wind power, of which most were from domestic investors. A total of more than 100GW of 19 projects are proposed by the investor to measure wind and conduct geological and topographic surveys at sea to set up offshore wind power projects. The minimum proposed capacity is 0.5GW and the maximum is 6GW, according to the ministry.

The latest draft that the MoIT released in May outlines Vietnam’s target for renewable energy to become the country’s primary source of energy, with an upper limit of 23GW of installed wind capacity by 2030. It involves 16GW from onshore or coastal wind projects and the remaining 7GW from offshore wind projects. By 2045, these wind targets will have risen to 55.95GW for onshore wind and 66.5GW for offshore wind.

Tra Vinh to build 25 MW biomass power plant

The Mekong Delta province of Tra Vinh has approved a proposal to develop the Tra Vinh biomass power plant in Luu Nghiep Anh Commune, Tra Cu District, with a capacity of 25 MW.

With an estimated investment of over VND1 trillion, the biomass power plant project will cover 11.6 hectares, including 11 hectares of land and 0.6 hectares of water surface.

The project’s investors are Power Engineering Consulting JSC 2, HCG Tra Vinh Energy JSC, Son My Renewable Energy JSC and Ninh Thuan Agriculture and Renewable Energy JSC.

Work on the project will start in the second quarter of 2023 and be completed by the first quarter of 2025.

Earlier, the Tra Vinh People’s Committee approved the investment in two green energy projects, comprising the VND3.86-trillion Thang Long wind power plant with a capacity of 96 MW and the VND7.8-trillion Tra Vinh green hydrogen production facility.

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