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VIETNAM BUSINESS NEWS SEPTEMBER 30

Real estate sector faces debt default risk

As huge volumes of corporate bonds are about to fall due and credit is being tightened for the real estate industry, the possibility of bond-issuing property firms defaulting on debt is high.

Corporate bonds worth VND270 trillion issued by real estate companies will soon fall due, FiinGroup reported.

According to the report, August saw a plunge in corporate bond sales, with only 19 issues worth VND9.4 trillion, down 84% year-on-year and 58% against July. This was a record low in the year, even lower than February when the issue volume is normally low during the Tet holiday.

Investors and issuers are waiting and seeing as new regulations will come out soon. Bond buyers have lost interest in trading bonds as they are uncertain about whether they could trade bonds on the secondary market if listed as unprofessional investors.

While raising funds from the debt market is hard, the real estate sector is struggling to access bank loans, as the additional credit growth quotas granted by the central bank are prioritized for the business and manufacturing sectors.

Vietnam, Cuba sign three cooperation documents

Vietnam and Cuba signed three cooperation documents in Hanoi on September 29 during Cuban Prime Minister Manuel Marreto Cruz’s ongoing visit to Vietnam.

Vietnam and Cuba sign a plan to implement the 2023-2025 economic agenda between the two countries, in Hanoi on September 29.

Among them were a plan to implement the Vietnam – Cuba economic agenda for 2023-2025 between the Vietnamese Ministry of Construction and the Cuban Ministry of Foreign Trade and Foreign Investment, and a memorandum of understanding on agricultural cooperation between the Vietnamese Ministry of Agriculture and Rural Development and the Cuban Ministry of Agriculture.

The Ministries of Health of Vietnam and Cuba also signed an action plan on health cooperation on this occasion.

Vietnam, EU seek to boost cooperation in green, sustainable growth

Vietnamese enterprises should focus on meeting quality requirements and ensuring green and sustainable growth, experts said at the Vietnam-EU Trade Forum held in Ho Chi Minh City on September 29.

Speaking at the event co-organised by the Vietnamese Ministry of Industry and Trade, and the EU Delegation to Vietnam, Minister of Industry and Trade Nguyen Hong Dien said that over the past more than two years since the EU-Vietnam Free Trade Agreement (EVFTA) took effect, the two sides have witnessed fluctuations of the global economy as well as the economies of the EU and Vietnam amid the COVID-19 pandemic, regional and global geo-political instability.

Data from the General Department of Vietnam Customs showed that the EU is now a leading trade partner, the third biggest export market and the fifth largest import market of Vietnam. Meanwhile, Vietnam surpassed Singapore to become the biggest trade partner of the EU in ASEAN and the world's 11th biggest supplier of goods to the bloc.

From August 2021 to July 2022, two-way trade between Vietnam and the EU reached 61.4 billion USD, up 11.9% from the first year of EVFTA enforcement. Of which, Vietnam shipped 45 billion USD worth of products to the EU, up 17%.

In the first eight months of this year, the figure hit 42.4 billion USD, marking a 14.85% rise year-on-year. Vietnam mainly exported machinery, garment and footwear, coffee, aquatic products, fruits and vegetables, pepper and rice to the EU.

Ben Tre offshore wind project reaches LiDAR installation milestone

Mainstream Renewable Power, the global renewable energy company, and its local partner Advance Information Technologies Corporation (AIT) Corporation, have installed a Light Detection and Ranging (LiDAR) unit at a 500 MW offshore wind farm project in Ben Tre province, reaching a key development milestone. 

According to Mainstream Renewable Power, LiDAR has remote sensing equipment that accurately maps wind conditions and other atmospheric conditions, and is used in offshore wind projects to provide data to determine energy output for an offshore zone. 

The LiDAR unit is placed on a fixed platform located 40km from the coast of Ben Tre province, making it the furthest wind measurement platform offshore in Vietnam.  

The unit will log data via satellites for approximately 18 months to provide an accurate assessment of the wind conditions at sea. The LiDAR installation will play a key role in the project development for the Ben Tre wind farm. 

The total investment for the project is estimated at 1.4 billion USD. Construction for the wind farm project is expected to start in 2023-2024 and reach commercial operation in 2025-2026.

State budget collection almost reaches yearly target

State budget collection in the January-September period was estimated at over 1.32 quadrillion VND (55.9 billion USD ), reaching 94% of the yearly target, and up 22% from the same period last year, according to Deputy Finance Minister Nguyen Duc Chi.

At a press conference on September 29, the deputy minister said domestic collection accounted for 88.9% of the yearly estimates, up 18.8% year-on-year.

The ministry said 61 out of 63 provinces and cities have met over 75% of their targets in domestic collection, and 52 localities have collected higher tax revenues than the same period last year. 

The country’s state budget expenditure in the January – August period reached 1,086.3 trillion VND, equivalent to 60.8% of the year's estimate and up 5.4% year-on-year. 

However, the disbursement of investment in development in the 9-month period is still behind schedule at 46.7% of the plan. Only 7 ministries and 20 localities disbursed over half of the assigned investment capital, while 14 ministries and central agencies and 2 localities disbursed under 20%.

Based on the budget revenues in the first nine months of the year, the ministry forecast that the economy would expand 7 – 7.5% this year while export value would increase by 9.46% and import value by 10.5% year on year.

First Evo200 e-scooters of VinFast delivered to customers

VinFast delivered the first batch of electric scooters of Evo200 model from its factory in northern Hai Phong city on September 29.

The e-vehicle maker said those of the latest model that can travel for the longest distance (205km) on a single charge and have the “best price” - 22 million VND (over 920 USD) for both Evo200 and Evo200 Lite versions.

While Evo200 can travel at a speed of up to 70km per hour, Evo200 Lite, which targets students, has the maximum speed of 49km per hour.

VinFast noted it received 18,000 orders for the new vehicles within just 48 hours after pre-order opening on September 21.

Newly-established firms in Q3 doubles against same period from 2021

Along with the strong recovery recorded in the domestic economy, the number of newly-established enterprises during the third quarter of the year amounted to 36,558, a figure double that of the same period from last year.

According to the Business Registration Management Department under the Ministry of Planning and Investment, Vietnam had a total of 112,791 new enterprises established in the January – September period, up 31.9% year on year.

Of the total, 83,345 new businesses were in the services sector, up 36.8% year on year. Elsewhere, the industry and construction sector had 27,903 new enterprises, up 20.8% from last year.

The Mekong Delta region recorded the sharpest increase in terms of new firms with 8,982, a rise of 47%, followed by the southeastern region with 45,457 new businesses, up 41.8%.

The first nine months of the year saw 50,509 resume operations, an increase of 56.1% year on year.

Furthermore, there were more than 112,968 enterprises dropping out of the market in the reviewed period, an increase of 24.8% against the same period from 2021.

UKVFTA gives boost to Vietnam’s coffee exports to UK

The Vietnam - UK Free Trade Agreement (UKVFTA) has substantially assisted Vietnam’s coffee sector to expand its market share in the UK, according to the Foreign Trade Agency under the Ministry of Industry and Trade (MoIT).

Under the UKVFTA, import duties will be eliminated for 99.2% of the tariff lines, equivalent to 99.7% of Vietnam’s export revenue, after six years since the deal took effect.

Therefore, businesses should quickly move to seize opportunities brought about by the agreement, which officially came into force on May 1, 2021, the agency recommended.

Experts said to increase Vietnamese goods’ presence in the UK, businesses should align production with British quality standards, grasp export procedures, and continue improving product quality by upgrading preservation and transportation technology, especially for farm produce.

Firms were also suggested to pay more attention to registering and protecting brands in the UK while proactively seeking partnerships with major distributors in the market.

Vietnam shipped 34,680 tonnes of coffee worth 70.68 million USD to the UK in the first eight months of 2022, up 57.9% in volume and 84.2% in value from a year earlier. Export prices also rose 16.6% to 2,038 USD per tonne, according to the MoIT.

The share of Vietnamese coffee in the UK’s total imports surged to 29.92% in the first half of 2022 from 16.33% in the same period last year.

MoIT proposes auction to exploit Quy Xa iron mine
     
The Ministry of Industry and Trade has sent a document to the Ministry of Natural Resources and Environment on the management and use of iron ore at Quy Xa iron mine in the northern mountainous province of Lao Cai.

This iron mine is being managed and exploited by Viet-Trung Mining And Metallurgy Co., Ltd (VTM).

The Ministry of Industry and Trade reports that the remaining reserves of Quy Xa iron mine are very large, about 100 million tonnes, therefore, the mobilisation of this iron mine's output is about 3-5 million tonnes per year by 2030, and about 5-7 million tonnes per year after 2030.

The planning for exploration, exploitation, processing and use of minerals has been currently completed for the 2021-2030 period, with a vision to 2050. The Ministry of Industry and Trade said that it is submitting to the Prime Minister for appraisal and approval.

The draft master plan clearly states that the Quy Xa iron mine has an output of 3-5 million tonnes per year in the 2021-2030 period, providing enough raw materials for the Lao Cai Iron and Steel Plant and other domestic iron and steel factories.

Regarding solutions for Quy Xa mine, the Ministry of Industry and Trade proposed VTM to accelerate the exploitation of 1 million tonnes of iron ore from Quy Xa mine this year according to Resolution No 164/NQ-CP dated December 29 last year of the Government to ensure raw materials for Lao Cai Iron and Steel Plant to maintain production while the new mining license has not been reissued.

VTM has exploited 444,000 tonnes of iron ore as of July 22 this year.

Vietnam - Austria Business Forum promotes mutual investment ties

The Vietnam Ministry of Foreign Affairs in co-ordination with the Austrian Economic Chamber (WKO) has organised the Vietnam-Austria Business Forum in Vienna, featuring the participation of 45 Vietnamese and Austrian business leaders and representatives from various business associations. The occasion is being held within the framework of "Vietnam Day in the Republic of Austria in 2022".

Over recent years, largely due to the traditional and friendly relationship between the two sides, policies adopted by both Governments have also encouraged and created favourable conditions for firms to co-operate practically and effectively as a way of improving bilateral economic ties.

Since the EU-Vietnam Free Trade Agreement (EVFTA) officially came into force between Vietnam and the EU bloc, despite enduring the impact of the COVID-19 pandemic, two-way trade between the two countries in 2021 soared to over US$3.3 billion.

At the forum, with more than 20 years of experience operating in Vietnam, leaders of Austria's AVL Group introduced their experience of co-operation in the Vietnamese market to local research institutes and enterprises in the field of battery production for electric cars, as well as applicability in the field of construction and agriculture.

Meeting SPS key to sustainable agricultural exports to EU
     
Meeting the EU's Sanitary and Phytosanitary Standards (SPS) remains a challenge for Vietnamese food exporters as the country seeks greater integration in the global food supply, said industry experts and policymakers.

Often considered non-tariff barriers, SPS has been viewed as a major hurdle for Vietnamese exporters to overcome even after the EU-Vietnam Free Trade Agreement (EVFTA) went into full effect in August 2020.

According to experts, finding ways to meet the bloc's SPS was key to sustainable trade of agricultural products with the EU, a major market for Vietnamese producers.

Two years since the EVFTA went into effect, there has been significant improvement between Viet Nam and the EU, especially in the agriculture sectors, with the former's exports to the EU reaching over US$3.2 billion, an 11 per cent increase compared to the same period last year.

Trinh Ba Cuong, secretary-general of the Food and Foodstuff Association of HCM City (FFA) said SPS for developed markets such as the EU remained a challenge for Vietnamese businesses, in particular for those in seafood and food processing.

There have been instances in which Vietnamese products were found to contain over-the-limit chemical exposure with some products given warnings and forced to be recalled.

In order to steer clear of trouble, he advised Vietnamese exporters to carefully study the SPS and their targeted markets. He said once they are able to meet the EU's standards, Vietnamese products will likely be accepted everywhere else.

Quang Ninh working hard to develop night-time economy
     
Its tourist attractions, unique culinary culture and pleasant night weather are great assets that will enable Quang Ninh Province to develop its night-time economy, according to its People's Committee.

The province, home to the world-famous Ha Long Bay, wants to develop its night-time economy to maximise its potential by products bringing together nature, people and culture.

The development will focus on culture and entertainment, food, shopping, and tourism.

In the trial phase during 2021 and 2022, the northern province is identifying entities that can provide night-time services without impacting security and causing environmental degradation.

In the next phase until 2025, the focus will be on completing the plans and setting directions.

Developing a night-time economy will help Quang Ninh maximise its infrastructure and deliver benefits to local people, according to provincial authorities.

The province is completing a scheme to develop the night-time economy with detailed routes and plans, they said.

Vietnam Report publishes Top 10 prestigious companies in food and beverage sector
     
The Vietnam Report JSC has recently published the lists of Top 10 prestigious companies operating in the food and beverage sector in 2022.

Top 10 prestigious companies in the milk and dairy product sub-sector comprise Vinamilk, FrieslandCampina Vietnam, International Dairy Products, NutiFood, VitaDairy, Moc Chau Milk, KIDO Foods, Mead Johnson Nutrition Vietnam, Nutricare and Zott Vietnam.

In the alcoholic beverages sub-sector, 10 companies on top are Sabeco, Heineken Vietnam, Habeco, Carlsberg Vietnam, Ha Long Beer and Beverage, Sapporo Vietnam, Ladofoods, AB InBev Vietnam, Huong Sen Group and Sabibeco.

Meanwhile, C.P. Vietnam, Masan MEATLife, Vissan, GreenFeed Vietnam, Vinh Hoan Corp., Dabaco Group, Minh Phu Seafood, Sao Ta Foods, Daesang Duc Viet and Nam Viet Corp. have their names on the list of top prestigious companies in the fresh and frozen foods sub-sector.

The survey conducted by Vietnam Report in August showed that 90 per cent of companies in the sector were running at over 80 per cent of their pre-pandemic capacity. Remarkably, about 60 per cent of the companies surpassed the capacity.

Roughly 86 per cent saw higher sales in general trade channel whereas the figures were approximately 85 per cent for modern trade channel and 87 per cent for e-commerce.

Two major driving forces behind the sector growth are the recovery of domestic consumption and the shift from traditional to modern channels shaped by the young.

The survey showed that 98 per cent of young people in big cities buy food and beverage in supermarkets and hypermarkets, 67 per cent do so online and 41 per cent go to convenience stores.

Over 94 per cent of companies in the sector have an optimistic outlook for the rest of 2022. The outlook is relatively similar to a recent forecast of Mordor Intelligence Inc., which said the compounded annual growth rates of the food service industry would hit 8.5 per cent between 2022 and 2027.

Viettel High Tech selects UfiSpace for its massive 5G roll out

Viettel High Technology Industries Corporation (VHT) and UfiSpace on Thursday announced their plans to deploy Disaggregated Cell Site Gateways for Viettel’s Massive 5G rollout.

VHT develops 100G Cell Site Router software and UfiSpace provides hardware and support with related expertise. The collaboration focuses on perfecting performance synchronisation for 5G services and the development of Viettel’s Cell Site Router and Data Center Switch in the future.

The Cell Site Router is a device specially designed for application in the transmission infrastructure for 5G networks, applying the most advanced technologies in the access layer of the metro network to meet 5G application services. VHT is the first unit to conduct product research in Việt Nam. The Cell Site Router must undergo a rigorous evaluation process with more than 20,000 tests on the features and performance of the device. This is a very proud milestone for the project team as well as for the journey to perfect the 5G ecosystem that Viettel has completely mastered from research to production.

Index of industrial production increased over 12% in third quarter

The index of industrial production (IIP) rose by 12.12% in the third quarter of 2022, compared to the same period last year, thanks to the recovery of production and business activities, according to the General Statistics Office (GSO).

In the January-September period, industrial production expanded by 9.63% over the same period last year, of which the processing and manufacturing industry rose by 10.69%, contributing 2.74 percentage points to the growth of the IPP.

Electricity production and distribution recorded a growth of 7.71%, while water supply and waste treatment increased by 7.03%.

Additionally, as of September 30, the inventory index of the entire processing and manufacturing industry also soared by 7.3% compared to August and increased by 13.4% over the same period last year.

According to the GSO, the six factors that have the greatest influence on the production and business of enterprises in the third quarter, include the high competitiveness of domestic products, low domestic market demand, financial difficulties, low international market demand, shortage of raw materials, and difficulties in recruiting workers.

90 percent of Vietnamese shoppers welcome online shopping

On the afternoon of September 29, the Government Portal held an online seminar on the topic ‘Tax management for e-commerce activities’.

To manage business activities on digital platforms, the National Assembly and the Government have issued many legal documents. Tax authorities at all levels and relevant sectors soon took the initiative to step up preventative measures against tax revenue loss from this business.

However, in comparison with the huge income and revenue that online traders have collected, the State has just collected a small amount of tax for the state budget. Moreover, this is causing inequality among businesspersons.

At the seminar, Ms. Nguyen Thi Lan Anh, Director of the Tax Administration Department of small and medium enterprises and individual and business households (the General Department of Taxation), said that because of the characteristics of the digital economy and e-commerce, the tax industry in Vietnam and in the world face many difficulties.

Specifically, difficulties exist in fully managing revenue sources and taxpayers who can be organizations or individuals, and difficulties in tax calculation. Along with that, it is difficult to distinguish different types of income because e-commerce has many types such as service fees, and royalties. It is necessary to clarify to distinguish the calculation as a tax base. Furthermore, the tax object may be an organization or an individual, an individual who can open many stores on social networking sites can also sell goods on many different e-commerce platforms.

According to Ms. Nguyen Thi Thanh Huyen, Head of Electronic Information Department, Department of Broadcasting and Electronic Information under the Ministry of Information and Communications, the Department is responsible for managing cross-border digital services.

Since 2016, the Ministry of Information and Communications has established a coordination mechanism with cross-border platforms such as Facebook, Google and later Tik Tok to request compliance with Vietnamese law according to the Decree 72/ 2013 on the management, provision, and use of internet services as well as the provisions of the Law on Cybersecurity.

Member of the Finance and Budget Committee of the National Assembly cum Vice President of National Economics University Professor Hoang Van Cuong said that the tax industry is the leading industry in Vietnam's digital transformation.

Transport fees cut by 20-50 percent from October 1

The Ministry of Finance decided to cut transport fees by 20-50 percent as a move to combat the rise in cost of living.

Under circular No.59/2022/TT-BTC issued on September 29, the Ministry of Finance offers a reduction of 20 percent for domestic transportation fees in the marine sector, including tonnage fees, marine guarantee fees, and entrance and departure fees; 20 percent of airline service fees, consisting of fees for the grant of certificates and licenses related to civil aviation activities, permission to access airport restricted areas, fees for aircraft guarantee transactions.

The railway sector will enjoy a fee cut of 50 percent in using railway infrastructure while the inland water transportation area will get a 50 percent slash of departure and entrance fees at ports; inland waterway reporting fees.

The fee cuts will take effect from October 1 to December 31, 2022.

Russian tourists keen on travel to Vietnam

Vietnam is a destination in the top bookings for the 2023 New Year holiday, according to flight booking data from the Russian travel site OneTwoTrip.

As Russians are now busily making a travel plan for the New Year 2023, the Travel platform OneTwoTrip announces its statistics on booking data of Russian tourists, with departures between December 31 and January 8, 2023. 

As a result, the number of Russian tourists booking trips abroad on this platform amounted to 77.3%, which corresponds to an 8.6-fold increase in market share compared to the previous year.

Thailand was the most favored destination by Russian tourists, with the number of holiday bookings accounting for 38.7%, followed by Indonesia (10.9%), Vietnam (10.8%), the Philippines (5.5%), and Turkey (5.1%). However, this travel platform predicts that the list of popular destinations for the 2023 New Year holiday will change.

At the “3rd Vietnam - St. Petersburg Tourism Forum” held in St. Petersburg, Russia this month, Deputy Chairman of the St. Petersburg Foreign Affairs Committee Vyacheslav Kalganov emphasized that Russian tourists are now turning more strongly to Asia in the context that the country is still suffering from Western sanctions and international vacation destinations are limited.

According to local tourism businesses specializing in serving Russian tourists, charter flights carrying tourists from Russia to Vietnam have not been resumed since April 2022.

Currently, Russian tourists only come to Vietnam in small groups. They must transit through Uzbekistan and Kazakhstan before taking a flight to Hanoi or Ho Chi Minh City. In the first eight months of 2022, only about 14,600 Russian visitors were to Vietnam (accounting for 1% of the total number of visitors).

Binh Duong posts nearly 8 billion USD in trade surplus

The southern industrial hub of Binh Duong recorded close to 8 billion USD worth of trade surplus in the first nine months of this year, as heard at a September 28 meeting that reviewed the province’s socio-economic growth.

In the period, the province raked in more than 27 billion USD from exports, up 11.9% year-on-year, and spent 19.2 billion USD on imports, down 1.6% annually.

It also posted an estimated 8.7% annual growth in the local index of industrial production (IIP) and reeled in over 200.92 trillion VND (8.45 billion USD) from retail and service activities, increasing by 19.9% against last year.

Binh Duong is a popular destination for foreign investors. As of September 15, the province was home to 4,069 foreign-invested projects with total registered capital of nearly 39.6 billion USD. It is currently ranked 2nd in the country in attracting foreign direct investment, after Ho Chi Minh City.

Hai Phong pledges favourable conditions for Taiwanese investors

The Economic Zone Authority of northern Hai Phong city (HEZA) pledged the most favourable administrative procedures for foreign investors, while meeting with China’s Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) on September 28.

This was the third delegation of Taiwanese businesses to visit Hai Phong since the start of this month to learn about the local investment climate.

At the meeting, HEZA made known the city’s advantages, including infrastructure and human resources, along with incentives for investors at  its economic zones (EZs) and industrial parks (IPs).

It also highlighted the readiness to connect Taiwanese enterprises and investors with Hai Phong universities, vocational schools, and training establishments to boost cooperation in improving human resource quality.

Developers of IP infrastructure also provided an overview of local IPs and EZs, investment attraction orientations, logistics potential, and transport and technical infrastructure there.

The TEEMA delegation expressed their interest in local potential, advantages, and investment attraction policies.

As of August 31, Hai Phong was home to 60 Taiwanese projects worth 1.46 billion USD, accounting for 6.1% of the total foreign direct investment (FDI) in the city. Twenty-seven of the projects are located in IPs and EZs, with a combined capital of 1.25 billion USD. Taiwanese firms in the city posted revenue of 1.15 billion USD in 2021 and 668 million USD in the first half of this year, statistics show.

FPT Software produces Make in Vietnam chips

FPT Semiconductor, a chip design, and manufacturing company under FPT Software, FPT Corporation’s subsidiary, has officially launched the first line of IC chips used in Internet of Things (IoT) products for the medical field.

The first integrated circuits (ICs), designed in Vietnam and manufactured in South Korea in August, will be used in IoT medical devices. The enterprise’s first customer and current strategic partner coordinate the distribution of FPT Semiconductor’s chip products in Australia, Taiwan (China), and China.

By 2023, FPT Semiconductor plans to supply 25 million chips globally in seven types to meet diverse needs in telecommunications, IoT, automotive technology, energy, electronics, and others.

The chipmaker intends to deploy and supply Make in Vietnam chips to domestic corporations to develop sustainably and contribute to completing the supply chain of manufacturing equipment for users in Vietnam between 2023 and 2025.

Construction starts on Long Thanh airport’s flight management works

Work started on September 29 on flight management works – the component Project No.2 in the first phase of the Long Thanh International Airport Project in the southern province of Dong Nai.

They are large-scale infrastructure works with the most complex technology ever built by the Vietnam Air Traffic Management Corporation (VATM).

The component project has a total investment of nearly 3.5 trillion VND (147.3 million USD). Its works include an air traffic control tower and supporting items, primary/secondary surveillance radar stations and VHF radio base stations, weather surveillance radar, and automated weather observing system (AWOS).

Covering a total area of more than 5,580 hectares, the Long Thanh International Airport will spread across six communes in Long Thanh district in Dong Nai province. The airport’s total investment is 336.63 trillion VND, with construction divided into three phases.

Indian companies find opportunities in Vietnam's engineering sector

The Consulate General of India in Ho Chi Minh City, in coordination with the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC), has co-organised a B2B meeting titled India-Vietnam Cooperation in Engineering Sector on September 29.

The event has created a platform for the Indian and Vietnamese sides to explore possibilities of investment and business cooperation in engineering areas, including agricultural machinery, auto components, electrical and electronic equipment, food processing machinery, and others.

Madan Mohan Sethi, consul general of India in Ho Chi Minh City, stated that the year 2022 will be a significant year in the bilateral relationship between India and Vietnam, as both countries will be reaching the milestone of 50 years of diplomatic relations.

He further added that India is one of Vietnam's three comprehensive strategic partners. He shared that almost 400 companies from India have visited Ho Chi Minh City in the last one month, and now there is an opportunity for Vietnamese companies to explore partnerships and business with the 17 engineering companies that manufacture products for different industries like automotive, plastics, food processing, leather, and agriculture.

Bui The Lu, deputy director of the Investment and Trade Promotion Department at ITPC further shared that India has always been a strategic trade partner of Vietnam, and the two sides still have a lot of potentials to exploit.

Both Vietnam and India are focusing on technical and manufacturing aspects and aim to engage deeply in the global value chain. The municipal leaders are committed to creating favourable conditions for foreign businesses, including Indian companies, to invest in the city in priority fields, such as smart cities, technical infrastructure development, digital economy development, high-tech industry, and agriculture.

Report requested on handling shortcomings at Hanoi metro line project

The Railway Project Management Board has been asked to clarify in detail how to solve shortcomings pointed out by the State Audit over the development of the Cat Linh-Ha Dong urban railway project.

Deputy Minister of Transport Nguyen Danh Huy said the previous explanations of the management board were unclear, so a further report on each problem mentioned by the State Audit is now required.

The State Audit required the investor to rectify the work of investment, construction, and financial management and consider holding individuals violating regulations to account.

According to the State Audit’s result in December 2018, the project’s total cost adjustment had yet to be reported to the prime minister for submission to the National Assembly before implementation, violating the Law on Public Investment.

The Cat Linh-Ha Dong metro line project was carried out under the engineering, procurement, and construction (EPC) contract, using China’s concessional loans and the reciprocal capital of Vietnam.

The preliminary cost of the project was estimated at VND8.77 trillion. However, the project faced cost overruns, with the investment cost soaring to VND18 trillion, equivalent to US$868 million.

The total amount of money that needs to be deducted and recovered is VND874 billion, according to the State Audit.

After the conclusion of the State Audit, the Railway Project Management Board has returned VND91 million to the State budget, of which VND50 million came from the Transport Construction and Investment Trading JSC and VND41 million from the Hanoi Land Registration Office.

HCMC to start work on circus, performing center project

The Phu Tho circus and multi-purpose performing center project in HCMC’s District 11 will get off the ground by the end of 2022, according to the city’s Department of Culture, Sports and Tourism.

The 2,000-seat center was approved by the municipal government in late October 2019, with a total area of 10,000 square meters and a total cost of nearly VND1.4 trillion backed by the city’s 2021-2025 medium public investment fund.

This is reportedly one of the national-level and modern projects in the southern city, reported the local media.

The project will provide a platform for circus and puppetry performances, preservation and development; for training purposes and other arts.

In related news, the department has coordinated with relevant agencies to study and implement the Phan Dinh Phung Sports Center project in the city. The project’s architectural design and bidding process to select an investor have been completed.

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

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