The World Economic Forum (WEF)’s Country Strategic Dialogue on Vietnam, which was held in both in-person and videoconference on October 29, was a success, according to WEF President Borge Brende.

The World Economic Forum (WEF)’s Country Strategic Dialogue on Vietnam, which was held in both in-person and videoconference on October 29, was a success, according to WEF President Borge Brende.

Prime Minister Pham Minh Chinh on October 29 co-chaired the WEF’s Country Strategic Dialogue on Vietnam 2021 for the first time via videoconference at the invitation of WEF Founder and Executive Chairman Klaus Schwab.

Themed “Public Private Partnership - The Key Driver for Comprehensive Recovery and Sustainable, Resilient and Innovative Growth”, the dialogue saw the participation of WEF President Borge Brende, ministers and leaders of Vietnamese agencies along with 70 global and regional leaders of the world’s leading groups and businesses

In an interview granted to Geneva-based Vietnam News Agency correspondents, Brende said the Vietnamese Prime Minister’s message on the country’s development plans and targets has received positive response from the business community.

The WEF president said he had received messages from many CEOs saying they were impressed by the Vietnamese Government leader’s remarks and answers to questions raised at the event. He added that it showed the great interest of the business community in the dialogue.

Brende said Vietnam has been an important country for the WEF, and the cooperative ties between the WEF and the country have been developing well, particularly after the WEF-ASEAN 2018 hosted by Vietnam which was described as a great success. He said it was the reason why the WEF invited Vietnam to co-chair the important dialogue this time.
           
According to him, the WEF held in high regard Vietnam’s short- and long-term policies and efforts in responding to and safely adapting to the pandemic while implementing farther targets and visions towards the goal of catching up with high-income developed countries by 2045.               

Vietnam has taken measures for safe and flexible adaptation to the COVID-19 pandemic, implemented a vaccine strategy, and has entered a period of economic and production recovery with the pandemic being contained, the WEF president said. According to him, the country’s long-term policies reiterated the Government’s aspirations, vision and efforts for development.

He further said Vietnam is considered a dynamic economy and a hub in the regional and global value chain. The country has demonstrated its commitment to renewal and reform through policies to promote new growth driving forces such as green economy, smart solutions and renewable energy.
           
President Brende noted that the WEF has always paid attention to the public-private partnership (PPP), which is considered an important driver of comprehensive recovery and sustainable, inclusive and innovative growth.

The WEF will continue to accompany Vietnam in promoting PPP and organize regular cooperation programmes and annual activities in Davos, he affirmed./.

Economic restructuring plan under examination at legislature on October 30

National Assembly deputies are engaging in online debate on a draft plan on restructuring the economy for 2021-2025 on October 30, the last working day of the first phase held in the form of videoconference of the second session of the 15th legislature.

Presenting the draft plan on October 29, Minister of Planning and Investment Nguyen Chi Dung said the scheme aims at creating breakthrough changes in the growth model in the direction of raising the national economy’s productivity, quality, competitiveness, resources use efficiency, self-reliance and adaptability.
He noted that the final goal is to create an economy based on science-technology and innovation, with rapid, sustainable growth in harmony with culture, society, environment and national defence-security.

The draft scheme listed six groups of targets and specific indicators, with the addition of indicators on developing types of markets, restructuring economic space, and developing the digital economy and innovation.

In the afternoon October 30, the legislature will look into the draft national land use plan for 2021-2030 with a vision to 2050, and the draft five-year land use plan for 2021-2025.

The land use plans are designed with the goals of allocating land to sectors and localities in accordance with socio-economic development needs while ensuring national defence-security, environmental protection and climate change adaptation. The land allocation must also meet the demand for infrastructure development, industrialization and urbanization while protecting ecologies and maintaining 3.5 million hectares of rice fields and a stable forest coverage rate of 42-43 percent.

HCM City’s CPI down 0.41 pct in October

Ho Chi Minh City’s consumer price index (CPI) in October went down 0.41 percent month-on-month and moved up 2.02 percent year-on-year, reported the municipal Statistics Office on October 29.

In the ten-month period, the index rose by 2.52 percent annually.

Four categories saw decrease in prices in October, including dining services down 0.8 percent; housing, electricity, water, fuels and construction materials down 1.53 percent; household equipment and appliances 0.41 percent; and posts and telecommunications 0.1 percent.

The remaining posted higher prices, with transport seeing the highest rise of 2.14 percent.

During the month, gold prices also hiked by 0.63 percent monthly and 2.6 percent yearly. The USD prices inched up 0.13 percent month-on-month and down 0.21 percent year-on-year./. 

Minister presents national land use planning for 2021-2030

Minister of Natural Resources and Environment Tran Hong Ha presented a report on the draft national land use planning for the 2021-2030 period with a vision to 2050, the 2021-2025 land use plan, and a verification report by the NA’s Economic Committee, during the ongoing second session of the 15th legislature on October 29.

Minister Ha said the draft planning and 2021-2025 land use plan aim to ensure enough land for the country’s socio-economic development strategy, thus laying a foundation to turn Vietnam into a high-income developed nation by 2045.

Chairman of the NA’s Economic Committee Vu Hong Thanh said the two drafts basically meet requirements in the Law on Planning.

He asked the Government to drastically direct ministries, agencies and localities to realise the Resolution on the national land use planning for 2021-2030 after it is approved by the legislature.

To prevent overlapping in land planning, the committee suggested the Government urge localities to promptly submit their own plans, and explain why protective forest coverage in the north central and coastal central regions and the southeastern region are reduced while they are hardest hit by disasters and flooding each year.

As illegal deforestation and use of forestry land remain rampant, the committee proposed the Government offer measures to closely control forest land, especially natural forests.

The Government was also asked to report to the legislature the use of rice farming land after they are used for other crops for 2011-2020./. 

CPI in October down 0.2 percent, may surge in remaining months: GSO

The Consumer Price Index (CPI) in October was down by 0.2 percent compared to September but rose by 1.81 percent compared to the same period last year, according to the General Statistics Office (GSO).

The CPI in the two remaining months of the year may surge as factors driving the figure down during social distancing will no longer have any impacts.

In October, food and catering services decreased by 1.28 percent from the previous month largely owing to drops of 0.25 percent and 9.38 percent in the prices of rice and pork, respectively, thanks to abundant supplies.

Housing and construction materials fell by 0.26 percent, due to a cut in housing rental rates to support people at the time when social distancing order remained in place to stamp out the spread of COVID-19.

Electricity prices were also reduced because the arrival of autumn affected demand for power and water compared to the previous month. Post and telecommunications inched down 0.04 percent.

Among eight groups of commodities and services experiencing rising prices last month, transport witnessed the highest month-on-month increase of 2.51 percent attributed to the fuel price hike.

Education inched up 0.25 percent against September.

The GSO also pointed out that core inflation in October saw a month-on-month decline of 0.17 percent but a year-on-year rise of 0.5 percent. In the first 10 months, the figure increased 0.84 percent compared to the same period last year, reflecting price movements driven by the hikes of food, petrol and oil and gas prices.

Core inflation in October and the first 10 months of 2021 compared to the previous year stood at the lowest level since 2011.

As November-December will be a time to focus on production, travel and procurement serving for major holidays, CPI in tourism services and entertainment is projected to see growth./.

Dutch firms seek logistic cooperation opportunities with Vietnam

Many Dutch businesses attending at a webinar on October 28 expressed their interest in the Vietnamese market and wanted to seek logistic cooperation opportunities with Vietnam.

The “Vietnam – Netherlands Logistics Webinar: Identifying Opportunities & Connecting Partners” was jointly held by the Agency of Foreign Trade under the Ministry of Industry and Trade (MoIT) and the Vietnamese Embassy in the Netherlands.

At the event, Permanent Vice President of the Vietnam Logistics Business Association (VLA) Dao Trong Khoa suggested the two countries cooperate in the supply of logistic services in the EU-Vietnam Free Agreement (EVFTA) area.

The Netherlands would serve as a gateway for Vietnam to access the European market. Meanwhile, Vietnam is regarded as an entrepot for Dutch exports to penetrate the Association of Southeast Asian Nations (ASEAN), he said.

Khoa encouraged Dutch logistics enterprises to invest in infrastructure development, especially in logistics centres, in Vietnam. He also suggested Vietnam learn from the Netherlands’ experience in logistics development in agriculture and green logistics at seaports.

Le Quang Trung, Deputy General Director of the Vietnam Maritime Corporation (VIMC), also proposed Vietnam and the Netherlands coordinate and build IT platforms to provide chain solution packages for clients.

Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade, said Vietnam’s export-import turnover exceeded 500 billion USD in 2019. In the first nine months of this year, despite impacts of the COVID-19 pandemic, the figure still reached 483 billion USD, up 24.4 percent from 2020.

He highlighted the high growth rate of the domestic logistics sector over the past years, at 14-16 percent, with about 30,000 businesses operating in this field.

The official expressed his hope for solutions to improve Vietnam’s human resources quality in logistics, and optimise the domestic transport system, especially in seaports./.

Dutch firms seek logistic cooperation opportunities with Vietnam

Many Dutch businesses attending at a webinar on October 28 expressed their interest in the Vietnamese market and wanted to seek logistic cooperation opportunities with Vietnam.

The “Vietnam – Netherlands Logistics Webinar: Identifying Opportunities & Connecting Partners” was jointly held by the Agency of Foreign Trade under the Ministry of Industry and Trade (MoIT) and the Vietnamese Embassy in the Netherlands.

At the event, Permanent Vice President of the Vietnam Logistics Business Association (VLA) Dao Trong Khoa suggested the two countries cooperate in the supply of logistic services in the EU-Vietnam Free Agreement (EVFTA) area.

The Netherlands would serve as a gateway for Vietnam to access the European market. Meanwhile, Vietnam is regarded as an entrepot for Dutch exports to penetrate the Association of Southeast Asian Nations (ASEAN), he said.

Khoa encouraged Dutch logistics enterprises to invest in infrastructure development, especially in logistics centres, in Vietnam. He also suggested Vietnam learn from the Netherlands’ experience in logistics development in agriculture and green logistics at seaports.

Le Quang Trung, Deputy General Director of the Vietnam Maritime Corporation (VIMC), also proposed Vietnam and the Netherlands coordinate and build IT platforms to provide chain solution packages for clients.

Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade, said Vietnam’s export-import turnover exceeded 500 billion USD in 2019. In the first nine months of this year, despite impacts of the COVID-19 pandemic, the figure still reached 483 billion USD, up 24.4 percent from 2020.

He highlighted the high growth rate of the domestic logistics sector over the past years, at 14-16 percent, with about 30,000 businesses operating in this field.

The official expressed his hope for solutions to improve Vietnam’s human resources quality in logistics, and optimise the domestic transport system, especially in seaports.

Da Nang city resolved to revive tourism sector

Da Nang city, a large tourist magnet in the central region, is taking various measures in an effort to revive tourism in the new normal, after a long hiatus caused by the fourth wave of COVID-19 infections.

The tourism recovery plan is divided into two phases, with the first implemented right in the fourth quarter of 2021 and the second in 2022 - 2025, Deputy Director of the municipal Tourism Department Nguyen Xuan Binh told a teleconference on October 28.

Da Nang has resumed tourism activities to serve local visitors since the start of October, and it plans to begin welcoming tourists from other localities back in November.

The city will reopen to international travellers in accordance with the plan and guidance issued by the Government and relevant ministries and sectors, he noted, elaborating that it will receive foreign visitors through package tours, charter flights, and regular commercial flights on a trial basis from next month.

Tourism promotion plans have also been launched by the department, conveying the messages of “Da Nang Now Open” in Phase 1 and “Enjoy Da Nang” in the following one.

On this occasion, the Tourism Department debuted VR360 application at https://danangfantasticity.com, which promises interesting experiences for visitors who wish to explore the city online.

At the teleconference, the city’s Centre for Tourism Promotion and the Da Nang branch of the Viettel Military Industry and Telecoms Group signed a cooperation agreement on boosting digital transformation in tourism promotion.

The municipal Tourism Association, the Da Nang Tourism Promotion Fund, and many other agencies and travel companies also inked a deal to reactivate travel activities, showing their determination to revitalise the sector in the new normal.

Tran Phuoc Son, Vice Chairman of the municipal People’s Committee, said Da Nang views tourism as one of the key industries, and it will harness every resource to shore up the sector.

He also asked tourism service providers to seriously adopt anti-pandemic measures to ensure travel safety and effectiveness./.

Binh Duong draws over 1.5 billion USD in FDI so far this year

Binh Duong province, a major industrial hub in the southern region, has still managed to attract over 1.5 billion USD in foreign direct investment (FDI) so far this year despite considerable impacts of the COVID-19 pandemic.

Of the sum, more than 482 million USD has been poured into 44 new projects, over 799 million USD added to 23 existing projects, and 225.4 million USD spent on contributing capital to or buying stakes in 81 projects.

Notably, the province has recorded 14 million USD in FDI since September 15, when it returned to the new normal.

Up to 88 percent of the surveyed FDI firms in Binh Duong believed that their production and business situation in the fourth quarter will be stable or improve compared to Q3, while 12 percent said they will face difficulties, according to the latest survey conducted by local authorities.

Bui Minh Tri, Head of the Binh Duong Industrial Zones Authority, said as of October 28, 1,968 enterprises or over 96 percent those based in local industrial parks had resumed operations. Nearly 373,000 labourers (76 percent) have returned to work.

Companies have quickly restored production and business activities with COVID-19 prevention and control ensured, he noted.

During the first nine months of this year, the index of industrial production in Binh Duong grew 2.9 percent year on year while total retail sales of goods and consumer service revenue rose 1.9 percent, compared to the respective increases of 6.7 percent and 10.9 percent in the same period of 2020.

The province posted a trade surplus of 4.62 billion USD in the nine-month period, compared to a surplus of 4.48 billion USD during January - September last year./.

NA deputies debate draft Law on Insurance Business (amended) on October 29

The draft Law on Insurance Business (amended) is the focus of the National Assembly session on October 29 morning, as part of the ongoing second session of the 15th legislature.

The bill is set to consolidate legal regulations on insurance business and handle contentious, overlapping contents in the current law, thus ensuring the synchronicity of the legal system.

With eight chapters and 156 articles, the revised law is expected to contribute to reforming administrative procedures in insurance business as well as the management, supervision and inspection in this field.

The Minister of Finance will clarify a number of issues regarding the draft law to be raised by the deputies.

In the afternoon, the lawmakers will look into the draft plan on economic restructuring for 2021-2025, the draft national land use planning scheme for 2021-2030 with a vision towards 2050, and the 2021-2025 land use plan./.

Denmark further supports Vietnam’s green energy development

Deputy Minister of Industry and Trade Dang Hoang An and Danish Ambassador to Vietnam Kim Højlund Christensen on October 28 signed a new agreement to kick-start the Danish Energy Partnership Programme between Denmark and Vietnam 2021-2025 (DEPP III).

It is the third phase of a long-term energy cooperation programme between the two Governments launched in 2013. The programme will be jointly carried out by the Vietnamese Ministry of Industry and Trade (MoIT) and the Danish Energy Agency with a non-refundable aid of 60.3 million DDK (10 million USD) in the form of Denmark’s technical assistance.

At the signing ceremony, An said the Vietnam-Denmark energy cooperation has brought about positive results and benefited both countries.

The implementation of the programme’s third phase will offer chances for Vietnam to learn from Denmark's experience in strategic energy development policies, thereby playing an important role in the sustainable transition of Vietnam’s energy sector.

For his part, the Danish Ambassador affirmed that Denmark is a long-standing and trustworthy partner of Vietnam in helping the Southeast Asian nation switch to green energy and low-carbon economy.

The DEPP III will inherit the solid foundation of the two Governments’ partnership and continue to strengthen and develop achievements obtained so far, he added.

With more than 50 years of experience in the field, Denmark is willing to share its best solutions, know-hows and experience with Vietnam and help the country realise its enormous potential in energy transition and improve Vietnam’s commitment to climate change adaptation, the Danish diplomat said.

Within the framework of the programme, Vietnamese and Danish partners will continue to collaborate in energy planning, integration of renewable energy into the power grid and economical and effective use of energy in the industrial sector.

Offshore wind energy development will continue to be a key area of the programme.

It also helps the MoIT’s Energy Efficiency and Sustainable Development Department build a mechanism conducive for the application of economical and effective energy solutions in energy-intensive industries of Vietnam.

The DEPP is part of the Danish commitment to fulfil the Paris Agreement by assisting a number of emerging economies, including Vietnam, in their low-carbon transition./. 

Vietnam's 10-month export value up 16.6 percent

Vietnam’s export turnover in the first ten months of 2021 is estimated at nearly 268 billion USD, up 16.6 percent against the same period last year, the General Statistics Office (GSO) announced on October 29.

During January-October, the US was Vietnam's largest export market with a turnover of 76 billion USD, up around 22 percent over the same period last year. It was followed by China, the EU and the ASEAN market.

Meanwhile, China was Vietnam’s biggest import market, with over 89 billion USD. It was followed by the Republic of Korea, the ASEAN market and Japan.

In October, Vietnam enjoyed a trade surplus of 1.1 billion USD. However, in the first ten months of 2021, the country posted a trade deficit of 1.45 billion USD./.

Reference exchange rate stays stable

The State Bank of Vietnam set the daily reference exchange rate at 23,131 VND/USD on October 29, unchanged from the previous day.

With current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,824 VND/USD and the floor rate 22,438 VND/USD.

The opening-hour rates listed at commercial banks dropped slightly.

At 8:30am, Vietcombank listed the buying rate at 22,620 VND/USD and the selling rate at 22,850 VND/USD, both down 5 VND from October 28.

Meanwhile, BIDV kept both rates unchanged at 22,655 VND/USD (buying) and 22,855 VND/USD (selling).

During the week from October 25-29, the daily reference exchange rate fluctuated variably and ended the week down 5 VND from that on Monday./.

Additional capital by foreign firms up over 24 pct in 10 months

Foreign investors poured 23.74 billion USD in new projects, existing projects, and in contribution of capital and share purchases as of October 20, up 1.1 percent year-on-year, reported the Ministry of Planning and Investment (MPI).

Of them, 13 billion USD was newly-registered capital, up 11.6 percent; over 7.09 billion USD was added to existing projects, up 24.2 percent; and 3.63 billion USD was capital contribution, down 40.6 percent annually.

During the first ten months of this year, foreign investors disbursed 15.15 billion USD, down 4.1 percent year-on-year.

They poured capital in 18 out of 21 economic sectors, mostly in manufacturing and processing sector with 12.74 billion USD, or 53.7 percent of the total registered capital. Electricity production and distribution followed with 5.54 billion USD, real estate 2.12 billion USD, wholesale and retail over 803 million USD.

In terms of the number of new projects, manufacturing and processing, wholesale and retail, and science-technology attracted the most, accounting for a respective 33.1 percent, 27.8 percent and 16 percent of the total.

Among 97 countries and territories investing in Vietnam, Singapore took the lead with 6.77 billion USD, or 28.5 percent of total investment in Vietnam, down 9.9 percent year-on-year. It was followed by the Republic of Korea with 4.15 billion USD, up 21.3 percent and Japan with around 3.4 billion USD, up 89.9 percent.

Among 58 cities and provinces receiving FDI, the southern province of Long An topped the list with 3.68 billion USD, ahead of Ho Chi Minh City with more than 2.73 billion USD and the northern city of Hai Phong with 2.72 billion USD.

Ho Chi Minh City ranked first in terms of the number of new projects, projects with additional capital and share purchases, equivalent to 34.1 percent, 17.7 percent and 59.4 percent, respectively. The capital city of Hanoi came second in the number of new projects.

According to the MPI’s Foreign Investment Agency, the foreign-invested sector ran a trade surplus of nearly 21.2 billion USD inclusive of crude oil, and roughly 19.8 billion USD exclusive of crude oil, in nine months of this year. Meanwhile, the domestic sector posted a deficit of 23.2 billion USD./. 

Firms in south-east resume production as COVID-19 restrictions ease

With the COVID-19 pandemic basically controlled, businesses in the south-eastern region of Vietnam are gradually resuming production.

The pandemic has been gradually brought under control in hotspots such as Ho Chi Minh City and Binh Duong, Dong Nai and Long An provinces, paving the way for them to relax measures to revive the economy.

They have tweaked many policies to adapt to the new context, giving hope to businesses during this hard period.

Resolution 128 issued recently by the Government on ‘Safe adaptation, flexibility and effective control of the COVID-19 pandemic,’ which lists criteria to assess the level of pandemic risk and unified response measures by all localities, agencies and businesses, is good news for enterprises.

According to businesses, the spelling out of risk levels lets them know when they can continue operation and when they need to temporarily stop.

Unified regulations also prevent local authorities from creating their own regulations, enabling companies to develop and implement business plans, they said.

In Binh Duong province, 3,330 businesses with 331,585 workers have resumed operations. The province has made efforts to sustain production to prevent supply chain disruption.

Local authorities said they are striving to ensure 90 percent of businesses resume operations by the end of this month and 100 percent by the end of this year.

The management of the province’s industrial parks is speeding up vaccination for experts and workers to achieve the goal of returning to normal by early 2022.

In Binh Phuoc province, 42,540 workers at 166 enterprises in industrial parks have returned to work. More than 3,000 businesses outside the parks with over 56,000 workers have also resumed operations. Nearly 100 companies have announced plans to hire 9,200 workers.

In Dong Nai province 1,582 out of a total of 1,713 companies with 497,050 employees have resumed operations.

But they face numerous challenges like a shortage of workers after a large number returned to their hometowns during the lockdown, rising costs of inputs and lack of funds.

Businesses have taken a cautious approach to reopening since the vaccination rate in some localities is only 20 percent.

Vo Tri Thanh, Director of the Institute for Brand and Competitive Strategy, said support policies need to be implemented quickly and in a co-ordinated manner to help businesses recover and catch up with the rest of the world.

“The most important thing for businesses now is a support package which is big enough … and is implemented quickly enough,” he told Vietnam News./.

Banks record higher profits, some exceeding annual plan

Multiple banks recorded prosperous business results in the first nine months of 2021 despite the negative impacts caused by the COVID-19 pandemic, with some even exceeding business targets for the whole year.

Viet A Commercial Joint Stock Bank (VietABank) reported 9-month pre-tax profit of 522 billion VND (22.9 million USD), up three times over the same period last year. The profit from securities trading increased sharply, up 4.7 times over the same period in 2020 with 107.6 billion VND.

The total accumulated banking income in nine months still decreased by 6.3 percent year-on-year, while operating expenses increased by 5.1 percent. As a result, the bank's net profit before provision expenses decreased by 12.3 percent compared to the same period in 2020, reaching only 747 billion VND.

VietABank sharply reduced provision expenses in the past nine months, from 864 billion VND in the same period last year to 225 billion VND by the end of the third quarter of 2021. The sharp decrease in provision expenses was partly because the bank had settled all bonds at the Vietnam Asset Management Company (VAMC) since August, thus reducing the pressure on provisioning for VAMC bonds. In the third quarter of 2021 alone, the risk provision was only 19 billion VND, while in the third quarter of 2020, this number reached 476.5 billion VND.

Bac A Commercial Joint Stock Bank (BacABank) announced 9-month pre-tax profit of 702 billion VND, up 34 percent year-on-year, mainly thanks to the provisioning for risks which decreased by 70 percent over the same period last year.

In the third quarter, BacABank recorded profit of 94 billion VND from securities activities, nearly 12 times higher than the level of the same period in 2020.

Petrolimex Group Commercial Joint Stock Bank (PG Bank) recorded pre-tax of 272 billion VND in nine months, up 107 percent over the same period last year, completing 88 percent of the yearly plan. Provision expense dropped sharply by 64 percent year-on-year, to 93 billion VND.

However, bad debt increased by 13 percent compared to the beginning of the year to 708 billion VND, bringing the ratio of bad debt to total outstanding loans from 2.44 percent to 2.75 percent.

Lien Viet Post Bank Joint Stock Commercial Bank (LienVietPostBank)’s total operating income reached 7.01 trillion VND in nine months of 2021 and increased 35 percent year-on-year, of which net interest income increased by 33.8 percent, profit from service activities increased by 52.9 percent and profit from forex trading increased by 86 percent.

Although LienVietPostBank's risk provisioning increased by 2.76 times over the same period last year, the bank's pre-tax profit still reached 2.8 trillion VND, up 61 percent over the same period in 2020 and nearing the target of 3.2 trillion VND for the this year.

Orient Commercial Joint Stock Bank (OCB) recorded 9-month pre-tax profit rising by one and a half times against last year, reaching 3.77 trillion VND, reaching 68 percent of the year’s plan.

OCB said that the bank focused on the strategy of promoting asset quality rather than scale, taking advantage of quality long-term capital with lower capital costs from investment trusts and issuing valuable papers.

Total net revenue of OCB in the third quarter of 2021 increased by 23.3 percent against last year, reaching 6.24 trillion VND. The bad debt ratio decreased from 2.15 percent from last year to 1.51 percent at the end of the third quarter.

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) announced 9-month profit of 17.1 trillion VND, up 60 percent compared to the same period last year, completing 86 per cent of the whole year’s plan. In third quarter alone, Techcombank's pre-tax profit reached 5.56 trillion VND, up 40 percent over the same period last year.

The bank also has the highest current account savings account (CASA) in the banking industry with 49 percent at the end of the third quarter of 2021, up from 46.1 percent in the previous quarter. CASA at Techcombank has increased by 59.1 percent in the past 12 months and reached 155 trillion VND; in which deposits of individual and corporate customers increased by 27 percent and 114.8 percent respectively over the same period last year.

Setting a target of 135 billion VND in pre-tax profit for this year, Saigon Industrial and Commercial Joint Stock Bank (Saigonbank) has just announced its 9-month pre-tax profit of 194 billion VND, up by 9.6 percent over the same period in 2020, exceeding the yearly plan by 44 percent.

The latest report of VietCapitalBank also recorded a 9-month pre-tax profit of 385 billion VND, up 181 percent year-on-year, higher than the yearly target of 290 billion VND.

Maritime Commercial Joint Stock Bank (MSB) reported 4.1 trillion VND of pre-tax profit in nine months, which has far exceeded the yearly plan of 3.2 trillion VND. Compared to the same period of 2020, MSB's profit increased more than 2.5 times.

Southeast Asia Commercial Joint Stock Bank (SeABank) announced 9-month pre-tax profit of 2.53 trillion VND, up 123 percent over the same period in 2020 and exceeding 5 percent of the yearly plan. Particularly in the third quarter, the bank's pre-tax profit was 974 billion VND, up 110 percent over the same period last year./.

Additional capital by foreign firms up over 24% in 10 months

According to the Ministry of Planning and Investment foreign investors poured nearly 24 billion USD in new projects, existing projects, and in contribution of capital and share purchases as of October 20, up more than 1 percent year-on-year.

Of them, 13 billion USD was newly-registered capital, up roundly 12 percent; over 7.1 billion USD was added to existing projects, and 3.6 billion USD was capital contribution.

During the first ten months of this year, foreign investors disbursed over 15 billion USD, down more than 4 percent year-on-year.

In terms of the number of new projects, manufacturing and processing, wholesale and retail, and science-technology attracted the most.

Among the countries and territories investing in Vietnam, Singapore took the lead. It was followed by the Republic of Korea and Japan.

Among the cities and provinces receiving foreign direct investment, the southern province of Long An topped the list. It was followed by Ho Chi Minh City and the northern city of Hai Phong.

Ho Chi Minh City ranked first in terms of the number of new projects, projects with additional capital and share purchases, the capital city of Hanoi came second in the number of new projects./.

Green growth strategy promotes post-COVID-19 economic recovery

The national strategy on green growth for 2021-2030, with a vision to 2050 plays a crucial role in promoting economic restructuring alongside growth model renovation, said Minister of Planning and Investment Nguyen Chi Dung.

“It is an important approach to pursue sustainable development, thus contributing to post-COVID-19 economic recovery, transitioning to green economic development, and at the same time creating a premise to realise the long-term targets of low-carbon emissions and carbon neutrality so as to contribute to limiting global temperature rise,” he said.

Minister Dung made the statement at a conference to implement the strategy chaired by the Ministry of Planning and Investment in Hanoi on October 29.

Attendees at the conference included representatives from ministries, sectors, localities, embassies of the UK, Germany, the Republic of Korea, international organisations, the World Bank, Asian Development Bank, UNDP, UNIDO, UNICEF, GIZ, KOICA, AFD, USAID, as well as representatives from businesses, academia, and researchers.

In light of the approved orientation, the strategy was developed on the basis of extensive consultations with stakeholders in ways consistent with recent COVID-19-pandemic prevention regulations, the minister said.

The development process of the strategy received strong support, cooperation and input from ministries, sectors, localities, relevant industry associations, embassies, international organisations, and development partners, he said.

By acknowledging and taking into consideration the inputs from stakeholders, the Ministry of Planning and Investment has completed the strategy and submitted it to the Prime Minister for promulgation under Decision No 1658/QDTTg dated October 1, 2021.

The Prime Minister's approval of the strategy on the threshold of the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) in Glasgow, UK, which will take place in the next few days, has demonstrated Vietnam's strong commitment to reducing greenhouse gas emissions through practical and concrete actions.

“The strategy sets four important goals, namely reducing greenhouse gas emissions, greening economic sectors; greening lifestyles and promoting sustainable consumption, and greening the transition,” said Le Viet Anh, Director of the Department of Science, Education, Natural Resources and Environment under the Ministry of Planning and Investment.

“The first objective of the strategy is to reduce the intensity of greenhouse gas emissions per GDP, which was also the objective of the previous strategy. This aims to assess comparative greenhouse gases (GHG) emission mitigation potential per unit of economic output, helping to determine the extent of environmentally-friendliness of the economy as its size is increasing, contributing to realising the dual goal of protecting the environment and developing “rapidly and sustainably,” he said.

Under the strategy, by 2030, the intensity of greenhouse gas emissions per GDP will decrease by at least 15 percent compared to that of 2014. By 2050, the intensity of greenhouse gas emissions per GDP will reduce at least 30 percent compared to that of 2014.

Hai Phong was the first locality to develop and implement a green growth plan for the 2014-2020 period. The city has succeeded in attracting a number of sustainable investment projects in accordance with the local economic development conditions.

Vice Chairman of the Hai Phong municipal People's Committee Le Khac Nam said that the city had implemented a number of outstanding projects in the 2014-2020 period, such as waste treatment projects and an electric bus on Cat Ba island.

International organisations have supported and co-ordinated with Hai Phong to implement green and environmentally friendly projects. The city will move towards applying digital technology, digital transformation, transforming the economic model towards greening, comprehensively implementing green economic development models including green ports, green islands, environmentally-friendly production model, reducing energy consumption in production activities, and applying renewable energy sources such as wind and wave energy.

Representatives from ministries, sectors, localities, embassies, international organisations, development partners, and businesses spoke highly of the new approach which was employed to determine the feasibility of the goals set forth in the strategy.

They also agreed with the plan and roadmap for the implementation of the strategy and believe that the Strategy will help realise the goals that Vietnam had set for 2030 and 2045. Ministries, sectors, localities, agencies and relevant organisations agreed to work together immediately to devise a National Green Growth Action Plan and Action Plans on sectoral and local levels. Development partners and international organisations are committed to accompanying and supporting Vietnam to implement the strategy.

To conclude the meeting, Minister Dung emphasised the importance of collaboration during the implementation process, saying the support and close coordination of ministries, sectors, domestic and international organisations, the business community and experts play a fundamental role to ensure that the implementation of the strategy adheres to the views and orientations of the Resolution of the 13th National Party Congress, the 10-year socio-economic development strategy 2021-2030, and the 5-year socio-economic development plan 2021-2025.

Following the conference, the Ministry of Planning and Investment will preside over and coordinate with ministries, sectors and localities to research and propose to the Prime Minister to establish a national steering committee on green growth, make arrangements to devise a national green growth action plan, and implement other important contents./.

Reform should be maintained in post-COVID-19 economic recovery: workshop

Reform should be the top priority for Vietnam in the 2021-2025 period, heard a workshop held by the Central Institute for Economic Management (CIEM) in Hanoi on October 29.

Participants at the high-level consultative workshop on “Reform towards sustainable development and international economic integration: focus and roadmap to 2025”, emphasised the need to maintain reform during the recovery process and the requirement to reform in parallel with economic recovery.

They highlighted the importance of mobising resources for new economic activities in a sustainable way. 

It is necessary to implement effective international economic integration, create impetus for institutional reform, take advantage of incentives from new-generation free trade agreements and improve the internal strength of the economy, they said, adding that attention should be paid to the private sector and the autonomy of the economy.

Tran Thi Hong Minh, director of CIEM, said economic difficulties have once again tested the will and determination of Vietnam.

“We still see bright spots in economic institutional reform thinking by the adoption of many solutions to create motivation for economic recovery and development, effectively carry out international economic integration, promote green growth and sustainable development”, Minh said.

According to Can Van Luc, chief economist of the Bank for Investment and Development of Vietnam, the COVID-19 pandemic has left a negative impact on the economy in recent times and may last for the next few years. 

Currently, Vietnam has to ensure three goals, namely pandemic prevention, economic recovery and social welfare.

Luc said that it is necessary to quickly overcome the consequences of COVID-19. Accordingly, digital transformation and digital skills should be carried out. A better social safety net system should be created together with the resilience of the financial system.

Countries that can adjust their model appropriately and have the ability to coordinate between health and the economic policies as well as promulgate a quick and consistent policy mechanism will overcome the pandemic more effectively, he said.

According to Luc the quality of legal documents and slow implementation of policies are the bottleneck that should be dealt with./.

Da Nang city resolved to revive tourism sector

Da Nang city, a large tourist magnet in the central region, is taking various measures in an effort to revive tourism in the new normal, after a long hiatus caused by the fourth wave of COVID-19 infections.

The tourism recovery plan is divided into two phases, with the first implemented right in the fourth quarter of 2021 and the second in 2022 - 2025, Deputy Director of the municipal Tourism Department Nguyen Xuan Binh told a teleconference on October 28.

Da Nang has resumed tourism activities to serve local visitors since the start of October, and it plans to begin welcoming tourists from other localities back in November.

The city will reopen to international travellers in accordance with the plan and guidance issued by the Government and relevant ministries and sectors, he noted, elaborating that it will receive foreign visitors through package tours, charter flights, and regular commercial flights on a trial basis from next month.

Tourism promotion plans have also been launched by the department, conveying the messages of “Da Nang Now Open” in Phase 1 and “Enjoy Da Nang” in the following one.

On this occasion, the Tourism Department debuted VR360 application at https://danangfantasticity.com, which promises interesting experiences for visitors who wish to explore the city online.

At the teleconference, the city’s Centre for Tourism Promotion and the Da Nang branch of the Viettel Military Industry and Telecoms Group signed a cooperation agreement on boosting digital transformation in tourism promotion.

The municipal Tourism Association, the Da Nang Tourism Promotion Fund, and many other agencies and travel companies also inked a deal to reactivate travel activities, showing their determination to revitalise the sector in the new normal.

Tran Phuoc Son, Vice Chairman of the municipal People’s Committee, said Da Nang views tourism as one of the key industries, and it will harness every resource to shore up the sector.

He also asked tourism service providers to seriously adopt anti-pandemic measures to ensure travel safety and effectiveness./.

Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan

VIETNAM BUSINESS NEWS OCTOBER 28

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