The fresh incentives of the government are hoped to facilitate thousands of local startups which have been struggling to survive the COVID-19 pandemic. 

The newly-issued Decree No.94/2020/ND-CP outlining policies and incentives for the National Innovation Center (NIC) will officially take effect from October 5. Under the regulation, startups under the NIC will be entitled to the most favourable investment conditions such as having to deal with fewer administrative procedures and having 100 per cent land leasing cost for 50 years in high-tech areas.

Establishments in Hoa Lac Hi-tech Park will be exempt from infrastructure usage fees at the areas they lease as well as also land clearance expenses. Moreover, the startups will be able to enjoy a preferential tax rate of 10 per cent over the first 30 years, instead of the previous 20 per cent.

They will also receive a 5-year tax exemption for imported materials and equipment that are not produced domestically.

Startups focusing on clean energy and intermediate goods manufacturing will also be entitled to these boons.

The new decree will provide a life-line to startups thrown off by the impacts of the pandemic. According to Le Hoang Uyen Vy, co-founder of Do Ventures, investment in local startups fell by 22 per cent, from $284 million in 2019 to $222 million in 2020 due to the impacts of COVID-19.

She added that the social distancing and fluctuations in the global markets were the main reasons behind the interruption in investment activities.

Therefore, the incentives are expected to ease some of the startups' difficulties. As of August 31, about 2,500 startups and related projects lured in a total investment of VND900 billion ($38.6 million) since 2016 when Vietnam started a supporting programme to aid about 1,000 businesses by 2020.

Da Nang retail market attempting to recover post-pandemic

After a long period of disruption due to COVID-19, the retail market in the central city of Da Nang has begun to recover. Purchasing power in the domestic market remains quite low, however, and many wet markets and shopping centres are deserted still.

Most vendors have resumed business since early September, but customer numbers are down more than 60 percent compared to this time last year.

Retail activities in shopping centres are in a similar situation. The number of walk-in customers has plummeted, as many have turned to online shopping.

A number of businesses have introduced promotional programmes to stimulate the domestic market.

According to official figures, total retail revenue in the city during the first eight months of this year fell 4.9 percent, especially in garments and textiles, fashion, and home appliances.

The city has reviewed the solutions adopted to help businesses overcome the difficulties.

Business activities in the coastal city were hit hard by the second wave of COVID-19. In order to recover, businesses must consider adjusting their business model and accessing available support policies.

Textile exports to EAEU may exceed trigger level: MoIT

Vietnam’s textiles enjoying preferential export tariff to the Eurasian Economic Union (EAEU) are likely to surpass the trigger level which results in the application of a safeguard measure cited in the Vietnam-EAEU Free Trade Agreement (VN-EAEU FTA), the Ministry of Industry and Trade (MoIT) has warned.

In a diplomatic note sent to the MoIT on September 15, the Eurasian Economic Commission noted that women’s wear shipped from Vietnam from the start of the year to July hit 79.4 percent of the trigger level.

According to the MoIT, the EAEU may apply a trigger safeguard measure for Vietnamese goods in case the import volumes during a calendar year exceed the trigger level.

Depending on the exceeding import volumes, Vietnam’s textiles may face most favoured nation (MFN) treatment for six or nine months.

Firms exporting such products to the EAEU are advised to devise plans in an appropriate, timely and effective manner.

2nd ASEAN-RoK Think Tank Strategic Dialogue scheduled for next month

The second ASEAN-RoK Think Tank Strategic Dialogue with the participation of foreign and security affairs think tanks will be held on October 6, according to the RoK Ministry of Foreign Affairs.

The event aims to establish policy networks between experts on diplomacy and security of the two sides.

To be co-hosted by the Korea National Diplomatic Academy and the Diplomatic Academy of Vietnam, the dialogue will be held in a blended online format given that a face-to-face meeting is not possible due to the global spread of COVID-19, the ministry said.

At the meeting, the participants will have discussions on assessments and prospects for the regional strategic landscape, including growing strategic competition between the US and China, amid the spread of COVID-19; the way forward for upgrading the RoK’s New Southern Policy; and ways to increase cooperation between the RoK and ASEAN.

The RoK was ASEAN’s fifth largest trade partner and seventh biggest investor in 2019, with two-way trade reaching 156.5 trillion USD, making up 5.6 percent of ASEAN’s total trade transaction value with external partners.

The RoK’s foreign director investment (FDI) in ASEAN stood at 2.6 billion USD, accounting for 1.6 percent of the total FDI poured in the grouping.

Thailand launches electric motorbike taxis, boats

The Electricity Generating Authority of Thailand (EGAT) has launched prototype electric motorbike taxis and boats to support electric vehicle use in public transportation, aiming to reduce air pollution and particulate matter of 2.5 microns or less (PM2.5).

The EGAT’s goal for motorcycle taxi riders in Bang Kruai district, Nonthaburi province, is to encourage a switch to 51 pilot electric motorcycles. They can run for 100 kilometers on a single charge at a maximum speed of more than 80 kilometers per hour, reported the National News Bureau of Thailand (NNT).

The electric motorbike taxis are equipped with a GPS system to ensure safety and build confidence among passengers. It is expected that the service will be available by the end of 2020.

The EGAT has also developed two electric boats which are driven by electric power from 214 kWh lithium-ion batteries for a distance of 60 kilometers on a single charge. The air conditioner system in the passenger area has been designed to use electric power from solar cells installed on the roof. Each boat can carry up to 80 passengers. During the first phase, their progress is being studied to assess the boats’ performance by using them on the EGAT’s missions.

For electric vehicle development, the EGAT and the National Science and Technology Development Agency has developed an EV Kit to transform old cars into electric vehicles that can run for 200 kilometers on a single charge with the highest speed being more than 160 kilometers per hour. The cost of modification, excluding battery, is about 200,000 THB (6,300 USD) per vehicle. At present, training and knowledge dissemination for entrepreneurs is being prepared.

Vietnam sets 17 sustainable development goals to 2030

The Government has set 17 sustainable development goals to 2030, in Decree No 136/NQ-CP which was issued recently.

Goals include no poverty in any form and anywhere; zero hunger, food security, nutrition improvements and sustainable agriculture development; good health and better social welfare for everyone; quality, equal and comprehensive education, and promotion of life-long study opportunities for everyone; gender equality; enhanced rights and opportunities for women and girls;

The country also targets sufficient water and latrine systems, sustainable management of water resources; access to sustainable, reliable and affordable energy for everyone; sustainable economic growth; decent work for everyone; resilient infrastructure, inclusive and sustainable industrialisation, and innovation; reduced inequality; sustainable and resilient development of urban and rural areas; safe living and working environments; sustainable production and consumption; timely and effective responses to climate change and natural disasters; preservation and sustainable use of the ocean, seas and sea resources; protection and sustainable development of forest, conservation of biodiversity.

The country will strive for a peaceful, democratic, just, equal, civilised society; build effective institutions with good accountability and promote global partnership towards sustainable development.

The decree outlines general tasks and solutions to realise the goals, with focus sharpened on completing institutions and policies, enhancing communications, promoting the role of and participation by relevant parties, mobilising and arranging financial resources, and intensifying international cooperation.

Specific measures have also been assigned to ministries and sectors under the decree./.

Quang Ninh targets to become dynamic development hub in North Vietnam

The northern coastal province of Quang Ninh has set a goal to have modern industry and service sectors and become one of the region’s comprehensive and dynamic development hubs by 2025.

The goal is part of growth targets of the province for 2020 – 2025, which outlined in the resolution of the recent 15th Party congress of the province, which took place from September 25 – 27. The other goals included building strong and transparent Party and political apparatus; promoting unity, democracy, discipline, and innovation; mobilizing concerted efforts for sustainable socio-economic development; and ensuring defence and security.

Regarding economic growth, the province aims to increase its gross regional domestic product (GRDP) by 10 percent on an annual average during the period, and the per capita GRDP to over 10,000 USD by 2025. The urbanisation rate is expected to surpass 75 percent, while the rate of poor households to go down to below 1 percent. Quang Ninh will work to maintain its leading position nationwide concerning the provincial competitive index (PCI), public administration reform (PAR) index, Satisfaction Index of Public Administration Services (SIPAS), and Public Administration Performance Index (PAPI). By the end of 2030, the province targets to complete the new-style rural building task.

To realise such goals, apart from Party building work, Quang Ninh will implement socio-economic development solutions, which include restructuring the local economy with step-by-step development of the digital economy and developing services and tourism to make it a spearheaded sector.

Quang Ninh will focus on increasing the proportion of processing – manufacturing industry in its economic structure, industries applying high-tech environmentally friendly technologies and smart industries with high value added. The development of economic zones, coastal industrial industrial parks, as well as coastal urban areas and economic corridors are also prioritised.

The province will spare no effort to diverse investment forms, accelerate growth speed, and complete its synchronised infrastructure. Specifically, resources will be focused on completing the Van Don – Mong Cai highway in 2021, the Ha Long-Cam Pha coastal route, the Cua Luc No 1,2 and 3 and other key infrastructure works in Ha Long city. The province will work with the northern coastal city of Hai Phong to get the Rung and Lai Xuan bridges projects to be done as soon as possible.

The congress identified three strategic breakthroughs of the province in the period. They are developing high quality human resources in association with increasing population scale and quality; speeding up the development of synchronised and modern strategic infrastructure; and promoting the local cultural identities while shortening income gaps.

Concluding the congress, the re-elected Secretary of the provincial Party Committee Nguyen Xuan Ky highlighted such important factors to the local sustainable and fast growth in the future as strong and transparent Party and political apparatus, anti-corruption work, loss of public asset prevention, and solidarity within the community.

Quang Ninh is viewed as a strategic destination in northern Vietnam and an important link in the northern economic growth triangle of Hanoi - Hai Phong - Quang Ninh.

The province possesses major advantages from Van Don district planning to become a multi-sectoral maritime economic zone and entertainment centre with a casino and high-end sea-island tourism and services. It is also a gateway for international trade, creating unique, modern, and high-quality products that are internationally competitive.

Over the past five years, Quang Ninh has experienced high and sustainable growth, with an average annual growth rate of 10.7 percent. Average GRDP per capita is estimated at 6,700 USD in 2020, two times higher than the country’s average figure.

It topped the PCI rankings for the third year in a row in 2019, according to the PCI 2019 report from the Vietnam Chamber of Commerce and Industry.

In addition to the PCI, Quang Ninh also led the country in the PAR Index for three consecutive years, in 2017, 2018, and 2019. The province has also been among the best performers in the SIPAS for many years and rose to the top in 2019.

It has also made great strides forward in improving governance and public administration capacity, moving from 62nd place in 2016 to third last year in Vietnam’s PAPI./.

Hanoi’s export turnover surges 10.3 percent in Q3

Hanoi’s export turnover was estimated to reach 5.28 billion USD in the third quarter of this year, up 10.3 percent year-on-year, according to the municipal Department of Industry and Trade.

Domestic enterprises contributed over 3.7 billion USD to the amount, accounting for 70.2 percent of the total and up 19.2 percent compared to the same period last year.

Meanwhile, the export value of foreign-invested businesses reached 1.57 billion USD, down 6 percent year-on-year.

In the first nine months of 2020, the capital city’s export turnover hit over 12.1 billion USD, up 0.9 percent compared the same period last year.

Commodities recording export growth included ceramic products, glass, wood and footwear.

Enormous room for Can Tho IZ growth

Lying in the centre of the Mekong Delta region, Can Tho city is delivering ample room for industrial real estate development, with a raft of projects on logistics centre and industrial zone development up for grabs.

This year, Simon Wong, director of the Australian fund SPG Invest, made three trips to Can Tho to work with top provincial leaders and relevant management agencies in the quest for investment opportunities in the city. Wong had also made field surveys in some locations marked as sites of projects currently appearing on Can Tho city’s investment wish-list.

According to Wong, many of their company’s partners are considering moving production plants out of China to Vietnam. SPG Invest therefore is quickly searching for a suitable location for industrial real estate development paired with ready-to-serve factory space to satisfy the thirst.

Through the surveys, Wong praised Can Tho’s plentiful potential and expressed keen interest towards a raft of related ventures in the area.

Previously, city leaders had worked with several big firms operating in industrial zone (IZ) construction from Binh Duong and Ho Chi Minh City who came to search for prospects in Can Tho.

It was thanks to IZs’ catered space in Ho Chi Minh City and neighbouring locations becoming increasingly scarce with elevating compensation costs. In Can Tho, the room for such kind of investment is proving rosy, with a string of logistics centre and IZ development plan awaiting financiers.

The attributes drawing particular attention also include its strategic position in the heart of the delta region and serving as a gateway to the Mekong River’s lower section, along with a modern-oriented economic and social infrastructure system.

The Politburo last month enacted Resolution No.59-NQ/TW on the building and development of Can Tho city to 2030, with a vision towards 2045. Along with this, by 2030 the city aims to become a modern and civilised eco city imbued deeply with the delta region’s cultural identities while becoming a regional centre for trade services, tourism, logistics, processing, high-tech agriculture, education and training, healthcare, sci-tech, culture, and sports.

To reach the target, focusing investment into building major social and economic infrastructure network will prove essential, particularly regarding modern and seamless intra-region and inter-regional transport infrastructure, thus enabling Can Tho to play the role as a central point driving inter-regional and international transport links.

In recent months a raft of transport projects of national significance serving the development of delta region and Can Tho in particular were intensified. For example, Trung Luong-My Thuan Expressway is set to be open to traffic by the end of this year, while the building of My Thuan 2 Bridge and My Thuan-Can Tho Expressway (slated to kick off construction in December) are closely adhering to progress targets to be able to ensure smooth transportation for the whole route by 2023.

Significantly, the Ministry of Transport is submitting a revised highway network development plan with vision towards 2030 in which it proposed adjusting the investment plan of building the Chau Doc - Can Tho - Soc Trang highway system to the period before 2030 to meet actual development requirements.

The provincial management has also paid due regards to revising industrial park development planning to facilitate investors’ business.

Can Tho currently boasts nine IZs, six of them which are operational. These include Tra Noc 1 and Tra Noc 2, Hung Phu 1, Hung Phu 2A, Hung Phu 2B, and first-phase Thot Not. The remainder are O Mon, Bac O Mon, and the second-phase Thot Not IZs.

To help Can Tho maximise its potential, Can Tho Export Processing and Industrial Zones Management Authority (CEPIZA) has focused on pushing up investment attraction and administrative procedure reform, as well as regularly meeting IZ-based businesses to help solve any problems in a timely manner.

CEPIZA has also urged IZ developers to quicken land acquisition pace to create clear space for investors seeking business opportunities in the city.

Based on actual demands, Can Tho People’s Committee recently submitted to the prime minister revision of the city’s IZ development planning to 2025, with vision towards 2030, in which Can Tho proposed switching several IZs to more favourable locations (without changing IZ area) to charm investors. For instance, the second-phase Thot Not IZ could move deeper towards Vinh Thanh district in order to draw down investment costs.

Work begins on hi-tech agro project in Daklak

Construction on a hi-tech agricultural park complex, with a total investment of VND1.5 trillion, began on September 27 in the Central Highlands province of Daklak.

Hung Nhon Group from the southern province of Binh Phuoc and De Heus Group from the Netherlands have joined hands to execute the 200-hectare project, which is slated for completion in the fourth quarter of 2025.

The complex will produce high-quality agro products in a closed process, including the selection and production of breeding pigs and chickens, organic animal feed and organic fertilizers to be exported to the Southeast Asian region, and an automatic pig slaughterhouse.

The farm system of the complex will be operated and monitored by technology provided by SKIOLD, which ensures the origin traceability, helps improve the quality of meat, reduces energy consumption as well as operating costs.

Once completed, the complex is expected to generate job opportunities for some 300 local ethnic minority workers in the province and provide the market with some 25,000 pigs annually.

De Heus Group and Hung Nhon Group also cooperated to establish DHN Daklak Hi-tech Development JSC, which will be located in the complex, to provide healthy pigs with good genes to the market, contributing to the improvement of the productivity and competitive capacity of pig farmers.

Textile-garment exports likely to exceed EAEU quota: Trade Ministry

The Ministry of Industry and Trade today, September 28, announced that Vietnam’s textile-garment exports to the Eurasian Economic Union (EAEU) are about to exceed the trigger level, or the total amount subject to preferential tariffs allowed into the EAEU markets for this year.

The Eurasian Economic Commission on September 15 sent an official dispatch to the ministry, warning it that Vietnamese textile-garment items, which are entitled to preferential tariffs when shipped to the Union under the Vietnam-EAEU free trade agreement, are at risk of exceeding the trigger level established in the trade pact.

Specifically, Vietnam’s dresses, skirts and other female clothing exports to the EAEU from January to July this year reached 79.4% of the quota, or the trigger level set for 2020.

According to the agreement’s Article 2.10 on trigger safeguard measures for 12 Vietnamese product lines for export, textiles and garments will be subject to trigger safeguard measures while being shipped to the EAEU. Depending on the export volume that exceeds the trigger level, local textile-garment products will not be entitled to preferential taxes and will be imposed Most Favored Nation import duties for a period from six to nine months.

The trade agreement came into force on October 5, 2016, enabling local enterprises and the EAEU, consisting of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, to take advantage of trade and investment incentives and accelerate cooperation over the economy, trade and investment.

According to data from the General Department of Vietnam Customs, Vietnamese products enjoying preferential tariffs under the pact chiefly comprise textile-garments, footwear, seafood, agro items, phones and accessories.

As for the EAEU side, freshwater salmon, corn, fertilizers, plant oils, iron and steel, trucks and some diesel-powered vehicles are entitled to preferential tariffs as a result of the deal.

Hau Giang’s VND1.3-trillion WTE plant gets off the ground

Greenity Hau Giang Co., Ltd started construction on a waste-to-energy (WTE) plant, with over VND1.3 trillion in investment, in the Mekong Delta province of Hau Giang on September 27, contributing to the efforts of the province to protect the environment.

Hau Giang WTE plant will cover over 23 hectares of land in Hoa An Commune, Phung Hiep District, and will be built in two phases. The facility will treat 300 tons of waste per day and generate six megawatts of electricity during the first phase. Its daily processing capacity will be increased to 600 tons and it will generate 12 megawatts of electricity in the second phase.

According to a representative of the provincial government, once completed, the project is expected to treat all the household, industrial, and agricultural waste in the area. Besides, the facility will be connected to the national power grid and contribute a considerable amount of electricity to the socio-economic growth of the province.

The official added that the project was earlier required to ensure its capacity could handle all the waste being discharged in the province. Further, the plant has to deploy modern technology, meet the demand for environmental protection and receive effective investment.

Accordingly, the province decided to build the plant using WTE technology, which is widely used and is both environmentally and socio-economically efficient, the official stressed.

For the project to be put into operation as planned, the provincial government asked departments and agencies to execute their management roles well, facilitate the construction progress and ensure the quality, safety and efficiency of the project so that local residents can soon benefit from it.

The investor and contractors were told to arrange appropriate human resources and mobilize all resources to execute the project as scheduled, making sure it is put into service by the end of 2021.

Chinese-invested projects in Vietnam surge to second highest spot

Chinese firms have invested in a large number of projects—the second highest during the January-September period—surpassing leading investors such as Japan and Singapore.

According to the latest report of the Ministry of Planning and Investment, this month, the nation attracted foreign direct investment (FDI) capital worth US$1.66 billion, taking the total number of newly registered, revised and share acquisition capital by foreigners between January and September to US$21.2 billion. The figure was 81.1% of that recorded during the same period last year.

Of this, 1,947 projects have been granted investment certificates, down 29.4% year-on-year. Their combined capital was US$10.36 billion, a 5.6% drop.

Meanwhile, investors have added capital to 798 projects, falling 23% year-on-year, with a total value of over US$5.1 billion, up 6.8% against last year.

During the period, foreigners invested US$5.73 billion in the country via share purchases, 55.1% of last year’s figure. Share acquisition capital made up 27% of the total FDI capital compared to last year’s ratio of nearly 40%.

According to the ministry, 111 countries and territories have made investments in Vietnam since early this year, with Singapore being the largest investor with over US$6.7 billion, making up 32% of the combined value.

South Korea ranked second with US$3.17 billion or 15%, followed by China with US$1.87 billion or 8.8%, Japan, Thailand and Taiwan.

In terms of the number of new projects, South Korea had 499 projects, followed by China with 271, Japan with 209 and Singapore with 173.

Foreigners have tapped 60 provinces and cities in the country, with Bac Lieu Province having the highest FDI amount thanks to a US$4 billion project, making up 18.8% of the total registered capital.

HCMC stood second with US$3.25 billion or 15.3%, followed by Hanoi with US$2.92 billion or 13.8%.

The southern metropolis remains at the top for the number of new FDI projects at 719, followed by Hanoi with 409 and Bac Ninh Province with 119.

Agricultural tourism projects halted in Dalat

Authorities in the Central Highlands province of Lam Dong have suspended the licensing of agricultural tourism projects in Dalat City.

According to the instruction of the provincial people’s committee, the halt has been applied from September 15. Any project of its kind which is still under construction also has to be suspended until the committee makes a decision.  

Huynh Thi Thu Hang, owner of Bunny Hill Farm & Homestay, in Dalat City expressed her regret over the halt as she believed Dalat has great potential. The halt of under-way agricultural tourism projects has also caused big losses for investors.

Le Ngoc Thanh Nga, a visitor from HCM City, said that her family likes this tourism model. Her children can learn how to grow and take care of vegetables during their holiday in Dalat.

The Lam Dong People’s Committee explained that the province faced many difficulties in agricultural tourism management due to the lack of regulations and specific guidelines on related issues such as construction planning, land use planning and criteria to develop projects.

A representative from Lam Dong Department of Culture, Sports and Tourism said that the province has recognised 32 agricultural tourism spots since the service was piloted in 2015 mostly focused in Dalat City. The suspension is aimed to revise and finalise regulations in the area.

Huynh Thi Thu Hang, owner of Bunny Hill Farm & Homestay proposed that local authorities should allow agricultural tourism investors to build necessary facilities for their projects but ensure sustainable agricultural development.

Agricultural tourism and farms open to tourists have thrived in Lam Dong Province over the past few years. Many travel firms have operated tours to such sites and promoted agricultural tourism as a distinctive feature of the province.

Inspection urged into wasteful signage

The northern province of Hoa Binh People’s Committee has called for an investigation into the wasteful investment in signage on a local hill.

Under vice chairman of the committee Nguyen Van Cuong, the provincial departments of culture, sports and tourism and planning and investment have to investigate the spending of up to VND11 billion (USD434,781) to build a slogan on Ong Tuong Hill area with 11 big letters. 

Earlier, the information about has stirred strong public controversy, saying that Hoa Binh remains a poor locality, so the investment should be prioritised for infrastructure development.

The signboard project was approved by the Hoa Binh People’s Committee former chairman Bui Van Cuu in May last year. The project was scheduled to be completed this year.

The letters used on the signboard are 10 metres high and 1.4 metres wide. They will use materials such as steel and aluminium. The automatic Led lamp system will be also applied.

Quach Tat Liem, director of the Hoa Binh Department of Planning and Investment said that it was necessary to carry out the work to beautify the locality, claiming that there was transparency in the project’s implementation.

Vietnam’s economy expands 2.12 percent in nine months

The gross domestic product (GDP) of Vietnam grew 2.12 percent year-on-year in the first nine months of 2020, according to the General Statistics Office (GSO).

This is the lowest nine-month growth rate since 2011, GSO General Director Nguyen Thi Huong said at a press conference in Hanoi on September 29.

However, she noted, amid the COVID-19 pandemic’s serious impact on every socio-economic aspect of countries around the world, it is still a big success of Vietnam in the pandemic fight and economic recovery and development.

Between January and September, the agro-forestry-fishery sector increased 1.84 percent, industry-construction 3.08 percent, and services 1.37 percent. They respectively contributed 13.62 percent, 58.35 percent, and 28.03 percent to the overall growth.

The official said in the third quarter alone, GDP rose 2.62 percent compared to the same period last year, also the slowest Q3 growth pace since 2011.

Thanks to COVID-19 brought under control, economic activities have gradually been resumed in the new normal status, helping the Q3 GDP expand at a faster pace than in Q2 (0.39 percent).

Huong said the complex and unpredictable developments of COVID-19 led to growth slowdown in almost all sectors. Disruptions to international trade affected Vietnam’s production, export and import activities while resulting in high unemployment and job shortage.

Besides, drought and saltwater intrusion that occurred early have affected plant productivity and output.

Facing that fact, the Government and the Prime Minister have issued timely directions for ministries, sectors and localities to carry out concerted and effective solutions so as to concurrently fight against the pandemic, protect people’s health, prevent an economic recession, and maintain social stability, thereby helping to achieve as high as possible results in socio-economic development this year, according to the GSO General Director.

Vietnam Tourism Annual Report 2019 released

The Vietnam National Administration of Tourism (VNAT) has released the Vietnam Tourism Annual Report 2019 in both Vietnamese and English languages.

The report reflects a busy year of the Vietnamese tourism sector with outstanding achievements, as the country served over 18 million foreign tourists – the highest number recorded, and 85 million domestic holiday-makers, earned 755 trillion VND (32.6 billion USD) from tourism services, and contributed 9.2 percent of GDP.

It provides information about improving mechanisms, policies, transportation, accommodations and tourism promotion. It also recalls international awards that the tourism sector received last year.

Of note, the 2019 report contains information about the application of technology in tourism development amid the fourth Industrial Revolution.

Expanded road transport plays part in Vietnam’s economic growth: forum

The expanded road transport network with the building of expressways in Vietnam has contributed to the country’s noted economic growth over the past 15 years, heard a forum in central Khanh Hoa province on September 28.

The forum on road traffic safety in Vietnam was jointly held by the Vietnamese National Assembly’s Committee for National Defence and Security, the NA Office, and Hanns Seidel Foundation.

The participants reviewed Vietnam’s road transport policies and planning schemes, and scientific-technological applications in the sector.

According to a World Bank expert, Vietnam expanded its road transport network from more than 223,000 km in 2004 to some 668,000 km in 2018, including more than 900 km of expressways.

The expert, however, pointed to limitations in the system such as congestions on belt roads and international gateways, overloaded vehicles and limited budget for regular maintenance, among others.

The forum also looked into environmental pollution and the impact of climate change in road transport, and road transport development in relations with waterway and air transport.

Thailand: mooncake sales fall due to COVID-19

Mooncake sales in Thailand are expected to shrink by about 16 percent this year, the Kasikorn Research Centre said.

The centre estimated mooncake sales this year at about 800 million THB (25.3 million USD), down by 15.8 percent from last year.

It explained that the COVID-19 pandemic heavily affected purchasing power and would reduce the number of visitors to the Mooncake Festival on October 1 and the overall sales of mooncakes.

The impact would be serious for the producers who conventionally sold expensive mooncakes to tourists. Those who had regular customers and sold affordable mooncakes should be less affected, the centre said.

Mooncake producers would still participate in the Mooncake Festival to maintain their brand awareness and customer base while waiting for economic recovery.

Weak purchasing power and fierce competition were their major challenges, the research centre said.

Singapore’s SMEs pessimistic about business prospects

The confidence in business activities of small- and medium-sized enterprises (SMEs) operating in Singapore for the remaining months of 2020 falls to the lowest level since 2009, as the COVID-19 pandemic has constrained global growth and slowed economic activities around the world.

According to the SBF-Experian SME Index for 4Q20 – 1Q21F recently announced by the Singapore Business Federation (SBF) and Experian company, the SME Index registered an overall reading of 46.3, the lowest since the inception of the index in 2009.

The SBF said that uncertainties stemming from the pandemic and restrictions put in place to slow the spread of the coronavirus have dampened the overall outlook of Singapore’s SMEs for the following months.

The construction and engineering sector registered the most significant decrease in sentiment (down 6.1 percent), likely attributed to extended dormitory quarantines and additional costs incurred from prolonging project timelines.

The country’s GDP reduced by 13.2 percent year-on-year in the second quarter of this year.

Hanoi’s export turnover surges 10.3 percent in Q3

Hanoi’s export turnover was estimated to reach 5.28 billion USD in the third quarter of this year, up 10.3 percent year-on-year, according to the municipal Department of Industry and Trade.

Domestic enterprises contributed over 3.7 billion USD to the amount, accounting for 70.2 percent of the total and up 19.2 percent compared to the same period last year.

Meanwhile, the export value of foreign-invested businesses reached 1.57 billion USD, down 6 percent year-on-year.

In the first nine months of 2020, the capital city’s export turnover hit over 12.1 billion USD, up 0.9 percent compared the same period last year.

Commodities recording export growth included ceramic products, glass, wood and footwear.

Nine-month social investment growth lowest in 5 years: GSO

Total social investment in the first nine months of this year increased just 4.8 percent year-on-year to 1,445 trillion VND, the lowest pace during the 2016-2020 period, the General Statistics Office (GSO) revealed on September 29.

Of the figure, 484.8 trillion VND was sourced from the state sector, up 13.4 percent; 641.5 trillion VND came from the non-state sector, increasing by 2.8 percent; and 319.1 trillion VND was from the foreign direct investment sector, down 2.5 percent.
 

The COVID-19 pandemic has adversely impacted all production and business activities, the office explained.

However, the disbursement of State budget capital during September and the first nine months were at their highest levels for five years, it said, attributing this to efforts made to step up such disbursement in order to maintain economic growth given the pandemic has been largely contained in Vietnam.

According to the GSO, thanks to instructions from sectors and agencies and community efforts, the daily life has been maintained with attention paid to social security.

In September and the third quarter, no localities faced poverty, the office reported. The rate of household poverty dropped 75.5 percent between January and September.

Up to 733.6 tonnes of rice was allocated to people in need while gifts worth over 9.4 trillion VND (406 million USD) were presented to social policy beneficiaries, national contributors, and other people in need.

More than 24 million health insurance cards and medical books were also granted free-of-charge to social policy beneficiaries.

As of mid-September, more than 12.5 trillion VND had been disbursed in support of those affected by COVID-19, the GSO said.

Vietnam welcomes just 44,000 foreign arrivals in Q3

Only 44,000 foreign visitors arrived in Vietnam during the third quarter of this year, equivalent to just 1 percent of the figure in the same period last year, the General Statistics Office (GSO) reported on September 29.

COVID-19 prevention measures and international travel restrictions are behind the declines.

Those arriving in Vietnam in the period were mainly foreign experts and technical workers at projects around the country.

Arrivals from Asia accounted for 73.1 percent of the total international arrivals in the first nine months of the year but were down nearly 73 percent year-on-year, with Cambodia the only exception with a rise of nearly 12 percent.

Meanwhile, the number of European visitors fell over 58 percent year-on-year.

According to the UN World Tourism Organisation (UNWTO), domestic tourism will recover faster than international tourism, making it easier for countries to promote post-pandemic socio-economic recovery. It recommends that countries focus on marketing strategies and enhance financial support to recover their tourism markets as early as possible.

Deputy General Director of the Vietnam National Administration of Tourism Ha Van Sieu said Vietnam’s second tourism stimulus programme is expected to promote domestic tourism development and the establishment of service supply chains and alliances, thus diversifying tourism products to attract visitors.

Vietnam has already resumed some international flights.

Exports still up in first nine months despite pandemic: GSO

Vietnam maintained its upwards trend in exports at a time when COVID-19 has ravaged international trade, with year-on-year growth of 4.2 percent posted in the first nine months of 2020, according to the General Statistics Office (GSO).

At a press conference in Hanoi on September 29, GSO General Director Nguyen Thi Huong said total trade revenue reached 388.73 billion USD between January and September, up 1.8 percent year-on-year.

Exports were estimated at 202.86 billion USD, up 4.2 percent.

The domestic sector remained a driver of export growth, as it earned 71.8 billion USD from shipments, up 20.2 percent and accounting for 35.4 percent of total exports. Meanwhile, the foreign-invested sector raked in 131 billion USD, including crude oil sales, down 2.9 percent and making up 64.6 percent of the total.

Thirty commodities posted export revenue of more than 1 billion USD, accounting for 91.3 percent of total exports. Five saw over 10 billion USD in turnover each, accounting for 59.8 percent, the GSO reported.

Meanwhile, imports declined 0.8 percent year-on-year in the first nine months to 185.87 billion USD, including 82.3 billion USD imported by the domestic sector (up 4.7 percent) and 103.5 billion USD by the foreign-invested sector (down 4.8 percent).

Thirty-two commodities posted over 1 billion USD in import value each, or 88.3 percent of total imports.

The country posted a trade surplus of 16.9 billion USD in January-September, compared to a surplus of 7.27 billion USD in the same period last year, with domestic businesses posting a deficit of 10.52 billion USD and foreign-invested enterprises a surplus of 27.5 billion USD (including crude oil).

In September alone, exports declined 0.7 percent month-on-month to 27.5 billion USD while imports increased 5.6 percent to 24 billion USD, for a surplus of 3.5 billion USD.

The figures rose 11 percent and 3 percent year-on-year in the third quarter, to 80 billion USD and 68.5 billion USD, respectively.

Singapore to extend debt relief scheme

Singapore will soon adjust its debt moratorium schemes, with the regulator looking to extend the programmes to certain borrowers beyond December 31 this year, while also ensuring that those with the ability to pay should begin repayment before the moratoriums expire.

The Monetary Authority of Singapore (MAS) earlier said that in Singapore, 12 percent of the economy is at the epicenter of the COVID-19 crisis. Companies in sectors hit hardest, specifically construction, travel-related, and consumer-facing services, are expected to take some time to recover.

Certain industries or activities may be permanently impaired by the crisis due to a range of factors, including a shift in supply chains and consumer demand patterns, according to MAS managing director Rai Menon at the central bank’s annual report briefing.

Maybank-Kim Eng earlier estimated that about 12 to 16 percent of total loans are under moratorium and other relief schemes from the local banks.

The three local banks in Singapore are estimated to have granted payment deferments to more than 15 billion SGD (10.94 billion USD) worth of mortgages as at the end of June this year, data from the MAS had shown. The total value of deferred mortgages in Singapore as of the end of June makes up almost 10 percent of all outstanding mortgages.

All in, Singapore’s fiscal outlay in response to the pandemic has stood at some 93 billion SGD so far, the largest in this country’s history.

PM orders to start work on Mai Son - National Highway 45 expressway

Prime Minister Nguyen Xuan Phuc ordered the start of the construction of the Mai Son - National Highway 45 expressway in the north-central province of Thanh Hoa’s Ha Trung district, at a ceremony on the morning of September 30.

The expressway is part of the 654-km North-South Expressway, which stretches from the northern mountainous province of Lang Son to the southernmost province of Ca Mau. The construction of two other parts of the expressway - the Vinh Hao-Phan Thiet stretch in the south-central province of Binh Dinh and the Phan Thiet-Dau Giay stretch in the southern province of Dong Nai - also kicked off on the same day.

The three sub-projects cost about 37 trillion VND (1.59 billion USD) in total and are expected to be open to traffic in late 2022.

Speaking at the ceremony, PM Phuc said the simultaneous start of the construction of the three sub-projects of the North-South Expressway and efforts to get the construction of five remaining sub-projects underway in October are important for the country’s transport sector.

When all of these sub-projects are completed, Vietnam will have close to 2,000 km of expressways, he added.

Praising efforts that helped complete 93 percent of site clearance work along the North-South Expressway, the PM underscored the prompt implementation of socio-economic development measures in involved localities and the connection of industrial parks to the expressway.

Thanh Hoa authorities, meanwhile, pledged to create the best conditions possible regarding land, materials, and security for contractors to finish their tasks.

The North-South Expressway master plan has 11 sub-projects, with three set to be funded by the State budget. Once completed, it will be backbone road infrastructure connecting the entire country.

The Mai Son - National Highway 45 expressway covers 63.37 km and crosses the provinces of Ninh Binh and Thanh Hoa. It is set to have six lanes and a designed speed limit of 120 km/h./.

Source: VNA/VNN/VNS/VIR/VOV/SGT/NDO/Dtinews