A large-scale rice field in the Mekong Delta (Source: www.sggp.org.vn)

The golden time for Vietnam to promote its rice brand will come once the country is able to promptly expand production of ST25 rice in line with a safe process, according to rice exporters.

Opportunities will be opened up for Vietnamese rice to further access the European market as the EU-Vietnam Free Trade Agreement (EVFTA) became effective at the beginning of August.

The rice variety ST25 won the first prize in the 2019 World’s Best Rice Contest and is favoured by domestic consumers.

Major rice exporters from the Mekong Delta are striving to meet demands of stringent markets.

The export price of Vietnamese five-percent broken rice currently hits its peak in the past 10 years, standing at 473-477 USD per tonne, announced the Vietnam Food Association on August 18.

This is also the first time that the price of Vietnamese five-percent broken rice has been higher than that of Thailand.

Vietnam exported 3.9 million tonnes of rice in the first seven months of this year, earning 1.9 billion USD, according to the Department of Agro Processing and Market Development under the Ministry of Agriculture and Rural Development.

The export volume fell 1.4 percent but the value increased by 10.9 percent over the same period last year./.

Virtual exhibitions a new direction for wood industry during COVID-19

COVID-19 has limited all exhibitions and international trade shows and made export activities that much harder. The idea of using virtual exhibitions on 2D and 3D platforms, however, has already proven to be a lifesaver for many businesses, especially those in the wood industry.

Revenue at this business has fallen more than 60% due to the impact of COVID-19. Though it switched to online sales, volumes have remained modest. After experimenting with virtual exhibitions, business has begun to head in a more positive direction, with a large number of international customers taking an interest in its products.

Many businesses, especially those in furniture, have already applied the solution and seen positive results. Some 50 wooden product enterprises in Ho Chi Minh City have opened showrooms online, posting 2D and 3D images for potential partners to browse through.

International wooden furniture fairs in Vietnam attract hundreds of thousands of visitors each year and valuable contracts are signed. By digitising exhibitions and product introductions, businesses can still promote new products without having to meet customers directly. Customer interest in specific product lines can also be measured, in order to adjust production if necessary.

Wooden product exports reached over 5 billion USD in the first half of this year, up 6% against the first half of last year but down on expectations. The introduction of virtual exhibitions is just one solution in achieving the export target of 12.5 billion USD for this year, and is also a trend in global trade helping businesses negate the effects of COVID-19./.

Work starts on over-215-million-USD bridge in Mekong Delta

The Ministry of Transport and the People’s Committees of the Mekong Delta provinces of Vinh Long and Tien Giang held a ceremony on August 19 to commence the construction of the My Thuan 2 bridge with a total investment of over 5 trillion VND (215.6 million USD).

Located 350m upstream of the existing My Thuan bridge, the My Thuan 2 bridge will start from the An Thai Trung intersection with the Trung Luong-My Thuan Expressway in Tien Giang province’s Cai Be district and end at an intersection with National Highway 80, on the My Thuan-Can Tho Expressway in Vinh Long city.

The project has a total length of 6.6km including 4.7km of approach roads and nearly 2km of the main bridge with six lanes.

Investment for the project is sourced from the State budget and the bridge is expected to connect the two expressways of Trung Luong – My Thuan and My Thuan - Can Tho in order to form a complete traffic network from Ho Chi Minh City to the Mekong Delta city of Can Tho city.

The project is scheduled to complete in 2023.

Vietnam, Thailand enhance cooperation in animal health, sanitary measures

Thailand’s Ministry of Agriculture and Cooperatives has suggested that the country and Vietnam set up a bilateral cooperation mechanism in animal health.

With rotating annual meetings, such a mechanism would allow for the sharing of experience in disease management, prevention, and fighting as well as sanitary measures. 

The idea was put forward during a working session between representatives from the Embassy of Vietnam in Thailand and the Department of Livestock Development (DLD) at the Thai ministry on August 18 in Bangkok.

As demand in Vietnam for live pig imports from Thailand increases to satisfy domestic demand, Vietnamese authorities are calling on their Thai counterparts to devise policies to stabilise export volumes and prices.

They also requested relevant Thai agencies revise and strictly examine animal health conditions and breeding procedures before exporting to Vietnam.

The Vietnamese side also asked the DLD to arrange for inspections of certain farms sending pigs to Vietnam after mid-September, which a delegation from the Vietnamese Embassy will join and then report to the Ministry of Agriculture and Rural Development. 

DLD representatives agreed on the suggestions from the Vietnamese Embassy, adding that Thai authorities would work with the embassy on the establishment of a bilateral cooperation mechanism shortly.

Thailand exported more than 100,000 live pigs worth 781.8 million THB (24.7 million USD) to Vietnam between June 12 and August 13. Fifteen Thai businesses have met requirements for such exports, with nine having done so already.

Nearly 60 percent of Singaporean firms need 1-2 years to recover

Almost 60 percent of Singaporean companies said it will take them one to two years to recover to pre-pandemic levels, even when they seek new sources of revenue and speed up technological adoption.

According to a survey recently announced by the Singapore Chinese Chamber of Commerce and Industry (SCCCI), 80 percent of respondents said their revenues were hit while 76 percent saw profit margins decline.

Additionally, they also faced challenges related to financing and cash flows, rising business costs and uncertain economic and political conditions overseas.

The poll done in June and July gathered responses from 1,020 companies, 95 percent of which are small and medium-sized enterprises.

On August 17, Singaporean Deputy Prime Minister and Finance Minister Heng Swee Keat announced support measures amounting to 8 billion SGD (5.84 billion USD), which includes an extension to the wage subsidy scheme for Singaporeans until the first quarter of next year.

The Singaporean economy is predicted to contract by 5-7 percent this year./.

Vietnam passes Bangladesh in textile and garment exports

Vietnam has surpassed Bangladesh in terms of textile and garment exports over the first six months of the year, with the former’s total export value of over US$13 billion, US$1 billion more than the latter’s.

Despite the negative impact caused by the COVID-19 pandemic, the country has successfully beaten Bangladesh to become the world’s second largest textile and garment exporter, behind only China.

According to the Bangladesh Export Promotion Bureau, the South Asian nation raked in US$11.92 billion from exporting ready-made garment products over the first half of the year, while the Vietnam figure was about US$13.18 billion.

Despite Vietnamese textile and garment exports enduring a drop of 12.1% in the seven-month period, the country still earned a total of US$16.2 billion.

In response to these figures, Bangladeshi garment exporters explained that the COVID-19 pandemic has forced them to lag behind their Vietnamese rivals.

Mohammad Hatem, vice president of Bangladesh Knitwear Manufacturers and Exporters Association, said Bangladesh’s textile and garment industry plummeted throughout March to May, as production activities and supply chains were interrupted by the COVID-19.

"Meanwhile, Vietnam’s production activities were not much affected because the country has controlled the spread of the virus”, Hatem added.

Most notably, Bangladeshi textile and garment exports fell by 20.14% to US$2.25 billion in March, before suffering a further 85.25% drop to US$375 million in April. Indeed, these declines mark the most significant decreases in the history of exports from the South Asian nation.

Moving into May, Bangladeshi export earnings witnessed an improvement, reaching US$1.23 billion, but marking a 62% decline from the start of the year. Following this, June saw their textile and garment exports show signs of recovery, reaching US$2.24 billion.

The January-June period has seen Vietnamese firms not suspend production, something that has occurred in both China and Bangladesh. As a result, the market share of local textile and garments being shipped to the United States and the EU has increased.

A representative from the Vietnam Textile and Apparel Association said that in comparison to the overall falls of the textile and garment industry worldwide, Vietnam only recorded a small decline of between 12% and 14%. Simultaneously, Bangladesh and India’s exports were hit by a drop of 23% during the first six months of the year.

Despite this, the Vietnamese textile and garment industry still faces an array of challenges as the COVID-19 is still significantly affecting global exports.

Transport Ministry okays Long Thanh expressway expansion

The Ministry of Transport has approved a Đồng Nai Province proposal to widen the HCM City - Long Thành expressway to 10 lanes from its current four.

Minister of Transport Nguyễn Văn Thể has ordered the Cửu Long Corporation for Investment Development and Project Management of Infrastructure (Cửu Long Corporation) to submit a pre-feasibility report for the proposal by the fourth quarter.

The widening of the 24km section from HCM City’s District 2 to Long Thành Town in Đồng Nai will be done in 2021-30 period, according to the ministry. 

Thể said the Department of Planning and Investment would advise on how to source capital for the work.

He also urged the department to study about construction of elevated roads, light rail and transit bus stations to connect the city with the proposed Long Thành International Airport in Đồng Nai.

The province has said the expansion work is urgent since the expressway is “a key transport route connecting the proposed Long Thành International Airport.”

Traffic congestion has become routine on both the expressway and the section of Highway No. 51 to HCM City during peak hours and holidays, it said. 

The spots most often gridlocked are Long Phước and Dầu Giây stations, branch D of Highway No. 50, inner roads connecting Highway 51, and Mai Chí Thọ and Võ Chí Công streets.

The widening will ease congestion when the airport opens in 2025.

The Cửu Long Corporation has recommended widening to eight lanes at a cost of VNĐ9.8 trillion (US$422.36 million) from 2025 and to 10 lanes starting in 2040. 

The 55km expressway was built five years ago, shortening travel from HCM City to south-eastern provinces to 20 minutes from the earlier 60 and to Vũng Tàu to a little more than an hour.

But drivers have been complaining about the slow speed of traffic on the road, and the expressway management has to frequently warn people to take other routes.

According to the Việt Nam Expressway Services Engineering Joint Stock Company, which manages it, the traffic volume was 10 million vehicles in 2015 and 16.5 million last year. 

It now handles 52,000 vehicles daily (rising to 60,000 on holidays and Lunar New Year) though its designed capacity is only 44,000, the company said. 

Organic farming helps small businesses grow

As the demand for healthy food increases, one farmer in the central province of Phú Yên has decided to go organic.

And the switch has not only helped him to reap the rewards, but also benefited other farmers in his region.

Trần Ngọc Phú, 47, left his home town in Hương Điền District, Thừa Thiên-Huế Province more than 30 years ago.

He decided to better his prospects by moving to Ea Bar Commune - a mountainous area of Phú Yên.

Once he arrived he began working on rubber plantation, and continued to do so until 2017 when the company dissolved.

Faced with a tough decision of what to do next, Phú decided to start his own business.

“It was a really a difficult time for me as I did not know where to start,” he said.

“After a lot of research on the internet, I found that people paid more and more attention what they were eating and they were willing to pay more for clean and healthy products.”

That was Phú’s eureka moment but he wanted to be sure he had the sufficient knowledge to make his business a success.

He travelled to Hà Nội to study at the Việt Nam Agriculture Institute and also visited organic farms in Bình Phước and Đắk Lắk to gather as much information as he could.

Knowledge collected, Phú began his enterprise, growing durian, sacha inchi and passion fruit on his four-ha orchard without using any herbicides.

He used natural products like fermented fish and fruit peel to protect his trees and animal waste and coffee pods to make fertiliser.

It wasn’t always plain sailing, and Phú made many mistakes along the way.

He added: “With little experience and understanding when first applying organic farming, I failed many times, then I tried again and again.”

Creating suitable organic fertiliser made from fermented small fish, fruit peels and probiotics was one such headache and he had to study the characteristics of soil and trees.

Over and over he had to try and find the right combinations, and some fellow farmers questioned the direction he was heading.

“Organic farming was very strange to many farmers in my locality at that time. They were sceptical to my farming method and did not think that I would succeed,” Phú said.

But they soon changed their ways of think when they realised Phú was turning a healthy profit.

In 2018, Phú earned VNĐ20 million from 100 passion fruit trees and VĐ150 million from growing sacha inchi and rubber together.

What impressed them more is that Phú’s three-year-old durian garden was disease free and producing healthy fruit.

According to Phú, there are three main factors that make organic farming models successful.

First, as no chemical is used in the model, products’ prices are higher than other products but consumers will still accept and buy the products.

Second, growing short-term fruit trees like sacha inchi or passion fruit add long-term fruit trees like durian is a strategy that uses short-term investment as stepping-stones towards achieving a long-term goals.

Third, Phú sent his sacha inchi seeds for testing indicators of omega, calcium, protein. Testing results proves the quality of the products plus no pesticide residue.

This whole process was recorded and traceable so customers can check the products’ origins easily.

With his accumulated experiences and knowledge on organic farming, Phú shared it with other farmers.

Trần Đình Mậu, another farmer in Ea Bar Commune said that last year, Phú helped him with his two-ha area macadamia nut farm.

“My customers like the organically-grown macadamia more than the ones grown using conventional methods,” Mậu said, adding that now, he used organic fertilisers to all his crops.  

Nguyễn Văn Khúc, secretary of the commune’s party committee said, adding that the organic farming models generated high economic benefits and organic products were welcomed in market.

In August last year, Phú established Ea Bar Emi Farm Co-operatives, attracting nine members. They apply organic farming in more than 50 ha od orchards and herbs.

They hope to develop a zone specialising in organic fruits in the mountainous area of Phú Yên Commune.

However, Phú admitted that besides financial issues, they faced another difficulty in management.

“We farmers are used to doing farming work, now, we have tried to run business, managing a co-operative is not easy for us,” Phú said.

Phạm Trọng yêm, deputy head of Phú Yên Province’s Co-operatives Alliance said that Phú’s co-operative should join the alliance so that it would receive more supports in technology, trade promotion, branding, human resource training as well as loans. 

Japanese investors seek M&A partners in Vietnam

Major Japanese enterprises are looking to buy Vietnamese IT firms through merger and acquisition (M&A) deals to expand production and business in the Southeast Asian country, reported Dau tu (Investment) newspaper.

Besides IT businesses, Japanese investors are also interested in other fields such as hotel, industrial park, clean energy, renewable energy, seafood processing, and pharmaceutical production.

Particularly, amidst the COVID-19 pandemic, the Japanese government will provide financial support for businesses to diversify supply chains in Vietnam.

Under a scheme in which the Japanese government will fund production shifting to ASEAN countries, 15 Japanese firms have registered to move to Vietnam.

They belong to a list of 30 Japanese enterprises that will be paid to move factories to Southeast Asian nations like Vietnam, the Philippines, Thailand and Laos.

According to the Japan External Trade Organization (JETRO), 1,400 out of 3,500 Japanese businesses surveyed in 2019 said they want to expand production in Vietnam in the next three years./.

Vinh Phuc: Over 84 percent of projects in IPs put into operation

As many as 309 out of 367 projects , equivalent to 84 percent, in industrial parks (IPs) in the northern province of Vinh Phuc have been put into operation by the end of July, up 6 percent from December 2019.

Among the 367 projects, 62 are domestic direct investment (DDI) projects valued at over 14.8 trillion VND (633.6 million USD), and 305 are foreign direct investment (FDI) ones worth more than 4 billion USD.

Binh Xuyen district alone has seven industrial parks covering nearly 2,000ha, namely Thang Long Vinh Phuc, Binh Xuyen, Binh Xuyen II, Ba Thien, Ba Thien II, Son Loi and Nam Binh Xuyen, taking the lead in Vinh Phuc in the numbers of industrial parks and investment projects.

The Thang Long Vinh Phuc industrial park has attracted dozens of investors from Japan with combined capital exceeding 200 million USD although it has just finished the first phase of construction./.

Mekong Delta localities urged to work harder to complete yearly targets

Prime Minister Nguyen Xuan Phuc has asked local administrations of all Mekong Delta provinces and cities to overcome difficulties and optimise their potential and advantages, thus completing all socio-economic targets for 2020 and following years.

In a document informing the PM’s conclusion in a meeting with leaders of the Mekong Delta localities, PM Phuc called for the engagement of the whole political system in implementing the Government’s resolutions on supporting COVID-19-hit people and solutions to remove difficulties facing business and production and speed up public investment.

At the same time, regional provinces and cities should roll out all necessary measures to promote economic growth of the whole region, keeping the growth rate not lower than the country’s average.

Besides, the PM asked for the prompt designing of a planning scheme for the region and localities in the 2021-2030 period with a vision to 2050, focusing on promoting potential of the region and each locality, and strengthen the intra-region’s connectivity as well as the Mekong Delta’s connectivity with Ho Chi Minh City.

The PM reminded the localities to concentrate on commercial production of agriculture towards higher quality and value. Meanwhile in the industry sector, regional provinces and cities should develop clean and renewable energy, supporting industries for agriculture and processing.

The localities should form service-trade centres at sub-regional level, along with maritime-based economic zones, logistics centres and service hubs, while strengthening regional connectivity.

The Mekong Delta region should continue promoting administrative reform and improving the investment and business environment, developing digital economy and e-commerce, the PM requested.

He also asked ministries and agencies to support the regional localities in removing their difficulties and connecting them with domestic and foreign investors.

In the first six months of 2020, 13 localities in the Mekong Delta worked hard to deal with drought and saltwater intrusion. Many localities reported economic growth higher than the country’s average.

However, the average growth of the whole region was only 1.2 percent, while many localities suffered negative growth./.

Thailand to launch more tourism stimulus packages

Thailand will introduce more stimulus measures to boost tourism, jobs and domestic consumption hit hard by the COVID-19 pandemic, according to Deputy Prime Minister cum Energy Minister Supattanapong Punmeechaow.

He revealed that the government plans to introduce generous subsidies to encourage domestic travel.

Earlier, the government had launched a tourism stimulus campaign known as Rao Tiew Duay Kan (We Travel Together), which will subsidise five million nights of hotel accommodation at 40 percent of normal room rates, with the subsidy limited to 3,000 baht (96 USD) per night for up to five nights.

According to the Tourism Authority of Thailand (TAT), foreign tourist arrivals next year could be as low as 15 percent of 2019 levels under a worst-case scenario due to a prolonged coronavirus crisis.

Revenue from international visitors in 2021 under the most pessimistic scenario developed by the TAT would shrink to just 296 billion baht (9.43 billion USD), or about 16 percent of the 1.9 trillion baht (58 billion USD) earned in 2019.

Total revenue from domestic and foreign travellers in 2019 was estimated at 3.2 trillion baht./.

Textile and garment group's earnings plummet

The Viet Nam National Textile and Garment Group (Vinatex) has forecast its total revenue and profit in 2020 will fall significantly from the previous year.

The company expects its total revenue in 2020 will reach VND14.6 trillion (US$632 million), down from last year’s figure of VND20.14 trillion.

Profit is forecast to drop by half to VND381.6 billion from 2019's number of VND765.5 billion.

According to CEO Le Tien Truong, Vinatex has fulfilled half of the year’s total revenue goal but there is still a long way to go to reach the profit target.

Total revenue dropped nearly a quarter year-on-year to VND7.04 trillion in the first six months and profit fell a fifth year-on-year to VND276 billion.

The prolonged US-China trade war has hurt domestic fabric companies, including two that affiliates of Vinatex, the CEO said at the annual shareholders’ meeting on Tuesday.

In addition, the company had no earnings in April as it had to scale down production due to social distancing measures and the spread of the coronavirus, he said.

As the two affiliates have recorded lower earnings than a year before, the benefits Vinatex has in them also decline, he said.

Selling financial investments helped the company offset losses in its core business, the CEO added.

In the six-month period, Vinatex recorded VND69 billion worth of income from selling financial assets, up 25 per cent year-on-year. Its financial expenses were halved to VND88.6 billion from VND174 billion.

In the next five years, market turmoil will keep declining and become more unpredictable and volatile, according to the company.

Vinatex’s expects its earnings will recover and hit the level of 2019’s figures in the middle of the 2020-25 period.

To realise the target, Vinatex will optimise its governance system, improve its competitive competency and build an environmentally-friendly supply chain using 4.0 technologies.

The State-owned garment group also hopes to attract high-quality staff and offer them high salaries and benefits to improve business operation and performance.

Chairman Tran Quang Nghi said average revenue growth was 12.6 per cent per year in the 2015-20 period, average profit growth in the period was 2.5 per cent, and the average cash dividend rate was 5 per cent each year. 

US to send officials to quarantine fruits for export

The Animal and Plant Health Inspection Service, an agency of the US Department of Agriculture, will send officials to Việt Nam to check the quality of fruits to be exported to the US.

This information was released by Nguyễn Quang Hiếu, an official from the Ministry of Agriculture and Rural Development (MARD)’s Plant Protection Department, at a meeting in Hà Nội on Wednesday.

Hiếu said the US officials’ visit has been postponed due to the COVID-19 pandemic. The department is seeking seats on several flights of airlines including Asiana, Korea Air and Nippon Airline for APHIS quarantine officials to come to Việt Nam.

“We will try our best to bring the APHIS officials to Việt Nam as soon as possible,” Hiếu said.

The US required its officials, including APHIS ones, working in Việt Nam to return home since March when the pandemic started.

Nguyễn Đình Tùng, the CEO of Vina T&T Group which has exported a lot of Vietnamese fruits to US, said when the US withdrew all staff to return home, those still working in the US Embassy in Việt Nam were assigned to conduct quarantine for fresh fruit exported to the US, helping Vietnamese businesses export twice a week. However, for over a week now, they have been busy with their official work and cannot continue quarantine.

“Therefore, the export of fresh fruits such as longan, mango, dragon fruit and rambutan to the US has been delayed. If this situation is not solved, many Vietnamese businesses and gardeners will suffer big losses,” Tùng said.

General Secretary of Vietnam Fruits and Vegetable Association Đặng Phúc Nguyên said it’s necessary to open more irradiation centres to minimise cost and have a competitive price on the market.

Nguyên said besides the US, some other markets including Australia and New Zealand also required irradiation before exporting fruits. However, the fruit irradiation is currently only undertaken by a company in HCM City.

“The Việt Nam’s fruit price is not yet competitive because there is only one irradiation factory in HCM City. Fruits such as longan and mango in the northern province of Sơn La must be transported to HCM City for irradiation to be exported. Meanwhile, Thailand has four factories, the price is very competitive,” Nguyên said.

“The US is a large market and one of the main markets for Vietnamese fruit exports. Therefore, we recommend the MARD to arrange for two or three fruit irradiation factories nationwide,” he added.

According to a MARD report, in the first seven months of this year, despite the COVID-19 pandemic, Việt Nam’s export value of vegetables and fruits to the US market reached US$77 million, up 9.8 per cent year-on-year. Some other markets also saw an increase in export value such as Thailand with $79.4 million, Japan with $68.2 million, Taiwan with $43 million, and the Netherlands with $42.7 million.

In terms of imports, in the first half of the year, the US, China and Australia were the three largest markets supplying imported fruits and vegetables to Việt Nam. The import from the US increased by 27.5 per cent, while imports from China and Australia decreased by 35.2 per cent and 12.5 per cent, ​​respectively. 

Da Nang to develop digital hub and regional bio-tech centre

The CMC Corporation, the second largest Information and Communications (ICT) group in Việt Nam, has proposed a strategic development plan for a creative space and a digital hub in Đà Nẵng.

CMC said the creative space will help turn Việt Nam into a digital hub in the Asia-Pacific region with estimated investment of VNĐ12 trillion (US$522 million).

It said the Đà Nẵng-based CMC Creative Space will help Đà Nẵng become an internet and data exchange site in the Asia-Pacific region, and a destination for the 2,500km Cross Việt Nam Cable System that will run through 19 provinces and cities including Lạng Sơn, Hà Nội, Đà Nẵng, HCM City and Tây Ninh.

CMC said Đà Nẵng will act as a data centre and software and internet exchange in the VNĐ500 billion ($21.7 million) trans-Việt Nam cable system that will connect Việt Nam and ASEAN through the Greater Mekong Sub-region-Internet Exchange.

Biotech

A hi-tech farm zone is built in a suburban area in central Việt Nam. A regional bio-tech centre is planned in the central city of Đà Nẵng in 2020-30. VNS Photo Công Thành 
Đà Nẵng has agreed to put forward VNĐ651 billion ($28.3 million) for upgrading the Đà Nẵng Bio-technology Centre and turn it into the South-central regional R&D Bio-Technology Centre.

The R&D centre will supply research and development plans for high-tech farming, bio-tech applications in environment and sustainable development projects in the region in 2020-30.

The city also called for investment in five high-tech farms to create a centre for hi-tech-farming in the central and central highlands region.

The city has offered to cut land-clearance fees by 50 per cent per hectare per year for five years and $1,000 in support for investors per hectare each year for five years.

Seven suburban communes in the city were planned as an organic farm area in Hòa Vang District on a total area of 540ha.

The Việt Nam Dairy Products Joint-Stock Company (Vinamilk) has invested $26.5 million in a dairy farm on 124ha in Hòa Phong Commune in Hòa Vang District.

Users warned over new 'cashback' apps

The Vietnam Competition and Consumer Protection Authority (VCCA) has issued a warning over cashback apps which lack transparency and showed signs of illegal multi-level marketing.

VCCA said that cashbank was an emerging model of business-to-consumer e-commerce and used as a way to attract customers.

Some e-commerce websites and apps were offering cashback with attractive rates from 80 per cent to 100 per cent, even higher, for each transaction. Some gave attractive commissions for those inviting new participants.

Such attractive offers would be in the form of earning reward points which could be redeemed for cash at very low rates, however.

VCCA also pointed out that cashback could be in the form of cryptocurrencies, such as GEM, CPB, Silling, USDT, ETH, ONE and VNDC which could be exchanged within the internal system.

These cryptocurrencies had not been recognised by laws as intermediaries for payment and users would not be protected by law in case of disputes, VCCA said.

For example, the My Aladdinz app claimed to be member of one of the largest companies in the world with a development history of 27 years. The app offered cashback at rates of up to 80 per cent. However, users must use Vietnamese đồng to buy the platform’s currency named GEM for transactions and the cashback was also in GEM. On this platform, GEM could be converted into another cryptocurrency named USDT and vice versa as an investment for profit.

Other platforms named in the warning by the VCCA included Payback VN and Tailoc888.

VCCA urged people not to participate in these cashback websites and apps.

Multi-level marketing businesses must comply with the Government’s Decree No 40/2018/NĐ-CP. 

Indonesia puts relocation of capital city on hold to tackle pandemic

Indonesia has put on a 33 billion USD project, initiated by President Joko Widodo, to relocate the capital city to the island of Borneo as it grapples to rein in the COVID-19pandemic.

Indonesian planning minister Suharso Monoarfa said the government is putting as its number one priority the recovery of the economy and overcoming the pandemic.

Making a frank admission of the obstacles to the project, he said groundbreaking could be delayed until 2022 or 2023, as the government focuses efforts on finding, and then distributing a COVID-19 vaccine to the population of nearly 270 million.

Construction of a state palace and other buildings was initially set to start by 2021, along with upgrades of airports, sea ports and the building of access roads in the forested area earmarked for transformation into a new smart city. Civil servants were due to start moving by 2024.

SoftBank’s chief executive Masayoshi Son, former British Prime Minister Tony Blair and Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed al Nahyan have been enlisted as advisers for the project.

Normally, such a big project should bring considerable positive ripple effects for the economy, but disbursing the government’s coronavirus stimulus response appeared more urgent now, said Wellian Wiranto, an economist at OCBC Bank.

At present, Indonesia could not afford to move its capital, as the pandemic’s strain on the national budget leads to a ballooning fiscal deficit, another economist said.

The downturn could last longer than the government anticipates, running until the second half of 2021, said Enny Sri Hartati of the Institute for Development of Economics and Finance./.

Singapore to hold virtual IP Week@SG

IP Week@SG, a global conference organised by the Intellectual Property Office of Singapore (IPOS), will go virtual this year from August 25-27.

It will focus on the role of Intellectual Property (IP) and Intangible Assets (IA) in helping companies amid the COVID-19 pandemic.

IPOS CEO Rena Lee said COVID-19 has disrupted businesses and society in an unprecedented way. Yet, innovations, especially in the digital space, have flourished and presented companies with new opportunities to grow and thrive. Innovation and IP are symbiotically linked.

Leading industry players and heads of global IP offices will discuss these issues and how companies can leverage IP/IA to improve cashflow, grow new business revenue streams and reduce exposure to costly litigation due to IP infringements in this crisis, she added.

Complimentary webinars during IP Week@SG will address IP/IA issues that have come front and centre as a result of COVID-19.

Participants will also be able to hear from the heads of IP offices and organisations from around the world including China, Japan, Singapore, the UK, the US, as well as leading companies like ONE Championship, The Lego Group, Razer and Zouk Group.

Vinh Phuc promotes agricultural processing industry

Besides its strength in industries, in recent years, the northern province of Vinh Phuc has maintained effective agricultural production with diverse farm produce and breeding products, requiring it to promote the agricultural product processing sector to enhance their value.

The development of the processing industry is also expected to bring in opportunities for agricultural product processing firms to restructure their operation in the future.

During a recent national online conference on promoting the agricultural product processing sector and agricultural mechanization, leaders of the Government and central ministries and sectors defined that processing industry makes important contributions to the effective operation of enterprises, improving incomes for farmers and increasing State budget collection.

In Vinh Phuc, despite its strong industry sector, in processing, the province has yet to mark its name in the Vietnam’s processing map as exempting for an animal feed factory and a number of safe vegetable processing facilities, Vinh Phuc has had few processed agricultural brand names.

Recognising its unexploited potential and advantages in expanding the processing sector, in recent years, the province has designed various policies and mechanisms to encourage businesses to invest in the area.

Vinh Phuc has asked the agricultural sector to coordinate closely with localities across the province to remove obstacles facing the agriculture sector, farmers and enterprises investing in agriculture.

Meanwhile, the locality has actively sought and broadenedexport markets, while encouraging farmers and companies to stay active in applying high technologies in producing and processing agricultural products, thus providing customers with fresh, clean and safe farm produce.

Statistics showed that currently, the province is home to more than 1,300 agricultural product and food processing facilities, of which, 25 are processing enterprises and the rest are small-scaled facilities.

As part of its efforts to associate the agricultural product processing sector with trade promotion and market development, since 2013, Vinh Phuc has held a number of large-scaled agricultural trade promotion events and dozens of trade fairs and exhibitions, introducing major farm produce of the province to the domestic market and creating the connectivity in producing and selling of the products.

However, the economic values produced by the processing sector have remained low and have yet to match the potential and advantages of the province. Experts held that the reasons behind the situation include risk factors threatening the agricultural sector, including natural disasters, extreme weather conditions and pandemics.

Besides, some businesses wishing to invest in agriculture have faced difficulties in seeking areas to locate their projects as the areas are not included in the province’s planning scheme.

In order to cope with the issues, the province has focused on adjusting, supplementing and completing a number of policies to create favourable conditions for the growth of economic sectors, especially farmers and businesses to get easier access to land, capital resources and market, thus effectively investing in agricultural production.

Vinh Phuc has also designed a number of policies and mechanisms to attract more investment projects in agricultural processing.

Officials from the provincial Department of Planning and Investment said the provincial authorities will continue to push forward with administrative reform, focusing on streamlining administrative procedures to reduce time and costs for enterprises. Vinh Phuc will promote the application of information technology (IT) in administrative procedures with the goal of creating the best possible environment for production and business, thus enhancing the attraction of FDI and investment from society.

At the same time, attention will be paid to removing difficulties and obstacles faced by businesses in various fields, from business registration to business conditions, customs clearance and taxation.

During the period of social distancing to curb the spread of the COVID-19 pandemic, agencies in Vinh Phuc still maintained their connections with investors through many channels, providing them with consultations and latest information. The province has also intensified online investment promotion activities, so as to attract investors after the pandemic is put under control./.

Indonesia focuses on infrastructure development to support growth

An Indonesian minister has affirmed that the country’s government is strongly committed to developing land transportation infrastructure nationwide to support economic growth.

At a webinar on August 19, Coordinating Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan cited results of a study as showing that one-percent hike in the construction of roads will raise economic growth by 8.8 percent, the Antara news agency reported.

He noted the government has deemed it necessary to develop road infrastructure through public and private investment under a government and business entity partnership scheme.

The minister also believed that Indonesia might be able to save nearly 100 trillion Rp (6.7 billion USD) annually by developing a train-based mass transportation system. Of the figure, 40 trillion Rp will be saved from the operating costs of motor vehicles and 60 trillion Rp from the travel time.

The value is equivalent to 4 percent of the regional gross domestic product of Jabodetabek, which is the Greater Jakarta areas covering Jakarta, Bogor, Depok, Tangerang, and Bekasi, according to the official.

The use of the mass transportation means will also result in a significant reduction in traffic congestion, Pandjaitan said.

Road connectivity, including through toll roads, serves as an essential component to drive economic transformation to the manufacturing and service sectors. Therefore, Indonesia will boost developing a land transportation system across the country, from toll roads in Sulawesi and Bali to road lines in Kalimantan, Sulawesi and other localities, he added./.

Site clearance for Long Thanh airport intensified

An additional VND275 billion (USD11.95-million) has been spent for the site clearance of Long Thanh International Airport in the southern province of Dong Nai.The compensation has been offered for 130 households, ranging from VND32 million (USD1,391) to VND8 billion (USD347,826) each.

This is the fourth compensation payout for the project’s site clearance. 

Early next month, local authorities will pay more compensation for the affected households.

Earlier, a total of VND395 billion (USD17.17 million) was allocated for the site clearance compensation of the project.

Some 1,800-hectares of clean land is scheduled to be handed over for the project in October this year, while the compensation for the remaining 3,190 hectares will be finished in the remaining months of this year.

Long Thanh International Airport will be built on an area of 5,000 ha and is the most expensive project in Vietnamese history.

Mango exporters aim to remove hurdles amid cases of origin fraud

A number of localities which are home to large mango-growing areas throughout the Mekong Delta region have been striving to find new export markets following the suspension of mango imports by China due to a number of firms faking origin traceability codes.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetables Association, says the Chinese suspension of mango imports has exerted a significant impact on local businesses as the northern neighbour is the largest consumer of Vietnamese fruit, accounting for over 70% of total export turnover last year. 

According to the Plant Protection Department under the Ministry of Agriculture and Rural Development, despite this suspension yet to have an impact on the country’s mango exports because of the season ending for the fruit in the south, domestic businesses are concerned about seeking fresh outlets for their products in the near future.

Nguyen notes that with Vietnamese mangos being grown in accordance to standards suitable for export to the Chinese market, these fruits will not be eligible to enter other demanding markets such as the United States and Japan.

Indeed, China may even tighten the inspection process for other Vietnamese fruit and vegetable products after the suspension of mango imports, Nguyen adds. 

The Plant Protection Department therefore emphasizes that two of the 82 mango-growing regions, in addition to one of the 12 packaging facilities in Dong Thap, were named among the violation list.

Most notably, Dong Thap's packaging and exporting establishments state that counterfeiters have faked origin traceability codes or have alternatively used their growing area codes in an effort to export the fruit, thus leading to poor-quality products and affecting the prestige of Vietnamese mangoes.

Dinh Kim Nhung, deputy director of Kim Nhung Dong Thap Co., Ltd., suggests that there should be certifications granted by the owners of growing areas for each export shipment, which will therefore be eligible for customs clearance.

These measures will serve to protect genuine businesses and farmers, whilst simultaneously avoiding counterfeiting origin traceability codes.

The Departments of Industry and Trade of provinces in the Mekong Delta have been working closely with the nation’s trade counselors and trade offices based abroad in order to diversify markets for mangoes and increase the export of the fruit moving forward.

In line with this, trade promotion schemes via online platforms will be held as a way of introducing the fruit to consumers.

The Vietnam Fruit and Vegetables Association stresses the necessity of increasing intensive processing and giving due attention to  the domestic market through strengthening connectivity with distributors and supermarkets.

PM requests people-centred economic recovery solutions

Economic development must be ensured amid the COVID-19 pandemic to provide jobs and guarantee people’s livelihoods, Prime Minister Nguyen Xuan Phuc has said.

The PM chaired a Government meeting on Wednesday to discuss draft development plans for the coming years, asking for effective and feasible solutions to minimise COVID-19-related losses and recover the economy in both short and medium terms.

The event looked into the draft socio-economic development plan and State budget estimates for 2021, the draft financial-State budget plan for 2021-2023, along with the draft medium-term socio-economic development plan and public investment plan for 2021-2025.

During his speech, PM Phuc underlined the need for staying proactive in governance and plan-making, noting that facing the serious impacts of COVID-19, effective and feasible solutions are necessary to ease losses and spur economic development in both 2021 and 2021-2025.

He asked Government members to exert efforts to support socio-economic recovery this year, as well as beyond.

Noting countries around the world have taken measures like large-scale aid packages to minimise the impacts of the pandemic, especially on people and businesses, the PM requested ministries and sectors, especially the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Labour, Invalids and Social Affairs, and localities, to devise support solutions strong enough to help affected people and enterprises.

Those solutions must be proactive, flexible and match the “new normal” period. In particular, fiscal and monetary policies should be more flexible to stimulate demand, create jobs and promote growth while maintaining macro-economic stability, according to the Government leader.

Meanwhile, the State budget plan for 2021 should include funds for social security policies for workers facing job losses and those in the informal sector, and for vocational training to help labourers adapt to changes in supply chains.

PM Phuc also requested continued assistance for certain sectors heavily impacted by the pandemic like transportation, tourism, textile-garment, health care, and education; along with policies to encourage rational consumption.

He demanded priority be given to development investment, especially for socio-economic infrastructure, including transport facilities, by using every possible resource.

The public investment plan for 2021-2025 needs to include projects and programmes important to national development like those on the North-South Expressway, coastal roads, and digital economy, he added.

The Prime Minister emphasised reducing regular expenditures, strict and effective control over public investment capital, and proper State budget allocation. 

PM calls for full disbursement of public investment

Prime Minister Nguyen Xuan Phuc has requested that public investment capital be fully disbursed this year, viewing this as a key political task that requires the involvement of the entire political system.

During a teleconference with ministries, agencies, and localities on August 21, the second of its kind since the first on July 16, the PM said localities have been more aware of the need for the disbursement of public investment capital, which has helped create jobs and propel growth.

Nearly 45 percent of all public investment capital is likely to be disbursed by the end of August. Most ministries, agencies, and localities have pledged to disburse 95-100 percent, especially those with large amounts, such as Hanoi, Ho Chi Minh City, and Hai Phong, as well as those with many national projects, such as Dong Nai province.

According to the Ministry of Planning and Investment, 52 out of 53 ministries and centrally-run agencies and all of the country's 63 provinces and cities have outlined plans to allocate State budget capital this year.

Nearly 455.5 trillion VND (19.8 billion USD) from the State budget, or 95.4 percent of the plan, has been earmarked for eligible projects.

Seven ministries and centrally-run agencies and 31 provinces and cities have proposed increasing central budget allocations by over 13.5 trillion VND.

Seven working delegations led by the PM and Deputy Prime Ministers and the ministers of finance and planning and investment have inspected the effort at ministries and localities to tackle difficulties.

The PM said a symposium on official development assistance (ODA) will be held in the near future. The Ministry of Planning and Investment has been assigned to work closely with the Finance Ministry and the Government Office to prepare for the event.

If public investment capital is fully disbursed, the economy could grow by 1 percent. Therefore, leaders of 31 ministries and centrally-run agencies and 13 localities with disbursement of less than 35 percent and 15 percent must learn from experience and disburse all capital this year, he said.

Secretaries of municipal and provincial Party Committees, Chairpersons of municipal and provincial People’s Committees, ministers, and heads of sectors are also be responsible for the effort.

PM Phuc agreed to establish a working group in charge of dealing with difficulties in key projects.

The government leader also urged the speeding up of construction of key national projects, such as Long Thanh International Airport, the eastern section of the North-South Expressway, and the My Thuan - Can Tho Expressway.