Vietnam has destroyed over 15,082 packs of cigarettes which were illegally brought into the country. 

The Vietnam Directorate of Market Surveillance under the Ministry of Industry and Trade announced that the cigarettes were incinerated on September 30 at the Hau Sanh Environment and Trade Company recycling and hazardous waste treatment plant in Phu Cat District, Binh Dinh Province.

On September 1, in order to improve transparency and effectiveness of seized cigarette management, Binh Dinh People's Committee issued the Decision 3612 to set up a committee to destroy the cigarettes including the Department of Market Surveillance, Department of Finance, Department of Public Security, Department of Justice, the provincial People's Procuracy and the provincial inspectorate.

The measure is to ensure public health as well as benefits of legal tobacco traders. It was also supposed to be a deterrent to violators.

Vietnam will surmount difficulties in Q4: Cabinet press conference

Vietnam will overcome difficulties in the last three months of this year, creating a premise for 2021, Deputy Minister of Industry and Trade Do Thang Hai has believed.

Speaking at a Cabinet regular press conference on October 2, Hai said under the government’s instruction, ministries and agencies have supported firms in optimising foreign investment opportunities and free trade agreements, seeking solutions to develop markets, and removing barriers to enter new markets.

The Ministry of Industry and Trade (MoIT) has stepped up the information work and oriented export services, while intensifying trade promotion through online forums and transactions amidst COVID-19, he continued.

Deputy Minister of Planning and Investment Tran Quoc Phuong said enterprises have received assistance in credit loans and fiscal policies, along with the direct support from the budget.

Regarding foreign investment attraction, Phuong said Vietnam has been regarded by international investors as an attractive destination with advantages of political stability, macro economy, geographical location, land and human resources.

Since the beginning of this year, the Ministry of Planning and Investment has organised online trade promotion activities with Asian partners like Japan and Singapore, as well as those from Europe, the official said, noting that investors have shown their interest in Vietnam.

Phuong expressed his hope that following the resumption of certain international flights, Vietnam will welcome more many foreign investors at the end of this year, and in 2021.

Relating to the resumption of international flights, Deputy Minister of Transport Nguyen Ngoc Dong said priority will be given to countries and territories where the pandemic is well contained like Japan, the Republic of Korea, Taiwan (China), Laos and Cambodia.

Leading industry figures seeks to restore international tourism market

Over 100 managers and experts gathered together to participate in discussions in the south-central province of Khanh Hoa on September 29 in an effort to discuss solutions aimed at restoring international tourism activities following the novel coronavirus (COVID-19) pandemic.

Participants also focused on methods aimed at restructuring major segments of the tourism industry in Khanh Hoa province, ways of reopening international air routes next year, attracting additional international tourists to the locality based through digital platforms, and the application of information technological achievements.

Representing the Vietnam National Administration of Tourism, Nguyen Quoc Hung said the COVID-19 epidemic has had an adverse impact on the local tourism industry, with the number of international visitors to the country during the first half of the year falling to 3.6 million, a decline of 55% in comparison to the same period last year. As a result of this steep fall in visitor numbers, tourism revenue also suffered a drop of 73% to only over VND10,000 billion.

According to statistics compiled by the provincial Department of Tourism, the province welcomed approximately 986,000 visitors, including roughly 426,000 foreign tourists, during the eight-month period, equal to 19.8% in comparison with the same period from last year.

Aside from promoting domestic tourism, the locality has also devised plans aimed at resuming international tourism activities with major markets, such as China, Russia, and the Republic of Korea, which account for more than 90% of international tourists to Khanh Hoa.

Furthermore, the province has been urged to select countries that have successfully contained the COVID-19 epidemic in an effort to accelerate promotional activities and restart the local tourism market.

Dang Manh Phuoc, CEO of Outbox Consulting Services and Destinations Management Company Limited, underlined the need to put together a set of standards containing COVID-19 epidemic prevention measures necessary for all tourism businesses and tourist sites to implement.

Malaysia’s realty market projected not to be affected by loan moratorium end

The Malaysian Real Estate and Housing Developers’ Association (Rehda) said it does not expect the ending of the six-month moratorium on loan repayments on September 30 to worsen the country’s residential property overhang.

Last week, the National Property Information Centre noted that the residential property overhang in the first half of 2020 worsened to nearly 32,000 units valued at 20 billion RM (4.8 billion USD), increasing 3.3 percent from the end of last year.

However, Rehda president Soam Heng Choon said banks had been proactive in finding ways to ensure that their customers did not default on their loans.

According to him, an increase in residential property overhang will not happen as banks are extending the moratorium (on a case-to-case basis) or restructuring loans.

He also noted banks are in a better position to help their customers compared with the 1998 Asian financial crisis when the interest rate was at 15, adding that the current interest rate is 3 percent.

The record low interest rates also make monthly repayments affordable even for those affected by pay cuts, he said.

He also praised the Malaysian government for its initiatives aimed at boosting the property sector under the Penjana economic recovery plan by focusing on small- and medium-sized enterprises (SMEs)./.

Work starts on RoK-funded electronic component factory in Vinh Phuc

Korean-funded YPE Vina Co. Ltd. and Korea Circuit Co. Ltd. kicked off the construction of an electronic component plant in Dong Soc industrial cluster in the northern province of Vinh Phuc on September 30.

Covering 13.5 hectares, the 270-million-USD factory will manufacture integrated circuits for Samsung and Apple.

It is expected to become operational in June 2022 and generate approximately 5,000 jobs.

Pledging to create the best conditions possible for the investors, Vinh Phuc authorities asked them to ensure the construction quality, prioritise employing local workers, transfer technology, and organise training courses for their employees, among others.

In October 2019, the two companies signed a memorandum of understanding on land lease at the industrial cluster, pledging to invest about 840 million USD in three phases.

The YPE Vina Co. Ltd. and Korea Circuit Co. Ltd. are subordinate companies of the Young Poong Group./.

WB approves 600 million USD loan for poor people in Philippines

The World Bank (WB) on September 30 said it has approved a loan worth 600 million USD to support the Philippine government's efforts to sustain social protection for the poor and most vulnerable families amid the COVID-19 pandemic.

The loan will be continuing support to the Philippine government to implement the Pantawid Pamilyang Pilipino Program (4Ps), a national government plan to provide conditional cash grants to the poorest families.

These efforts are critical to ensure that the children of poor families can remain in school and stay healthy as the country takes measures to control this pandemic. In these difficult times, cash transfers to the poor and vulnerable indirectly support local economies and boost prospects for recovery, said Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, the Philippines and Thailand.

The project will support the Philippine government's use of cutting-edge digital technologies and platforms, develop more efficient processes and systems, and enhance targeting mechanisms.

Implemented in 145 cities and 1,483 municipalities of the Philippines, the 4Ps has benefitted more than 4 million families or around 20 percent of the country's population, including 8.7 million children./.

FDI pledges estimated at US$21.2 billion in first nine months

Pledges of foreign direct investment (FDI) in the first nine months of 2020 were estimated at US$21.2 billion, down 18.9% compared with the same period last year, as shown by data as of September 20. 

Manufacturing receives the largest share of FDI in the first nine months of 2020.

In the meantime, disbursement fell by only 3.2% to reach US$13.76 billion, according to the Ministry of Planning and Investment.

Manufacturing was the most attractive sector to foreign investors, receiving US$9.9 billion, accounting for 46.6% of total FDI, followed by power generation and distribution and real estate with US$4.3 billion and US$3.2 billion, respectively.

Among the 111 countries and territories with investment in Vietnam, Singapore came out on top with US$6.77 billion, equivalent to nearly one third of the total, while the Republic of Korea and China came second and third with US$3.17 billion and US$1.87 billion, respectively.

In terms of new projects, the Republic of Korea ranked first with 499 projects, followed by China (271) and Japan (209). Singapore came fourth with 173 new projects.

The southern province of Bac Lieu remained the largest FDI recipient thanks to a US$4 billion natural gas project invested by a Singaporean investor.

The two economic hubs of Ho Chi Minh and Hanoi received the second and third largest shares of FDI with US$3.25 billion and US$2.92 billion, respectively.

Pacifico Energy Vietnam keen to invest in renewable energy projects in Quang Tri

Pacifico Energy Vietnam, a subsidiary of Pacifico Energy, an international leader is developing, financing, constructing, and operating renewable energy power plants, have initiated plans to invest in a number of wind and solar power projects in the central province of Quang Tri in the near future. 

Hoang Giang, President and CEO of  Pacifico Energy Vietnam, unveiled the scheme during a recent meeting held with Vice Chairman of Quang Tri Provincial People's Committee Ha Sy Dong in order to discuss investment plans in the local renewable energy sector moving forward.

Accordingly, the company is expected to inject money into wind and solar power projects in the districts of Huong Hoa and Trieu Phong in the locality. 

With the primary goal of developing the nation’s renewable energy sector, the company has already started their plans by putting the Mui Ne solar power project in the south-central province of Binh Thuan into operation in September.

At present, the firm has also invested in two other solar projects in Binh Thuan province, in addition to another wind power project located in Ben Tre province.

In response to Pacifico Energy’s plans, Vice Chairman of the provincial People's Committee welcomed the group’s keen interest in making investments into wind and solar projects in the province, while also affirming the locality’s willingness to facilitate investment procedures.

Furthermore, the provincial People's Committee has also assigned the provincial Department of Industry and Trade, along with other relevant units, to create the optimal conditions for investors to receive updated information on investment policies and human resources in order to progress with their investment plans.

Moreover, local authorities have also asked relevant agencies to support investors in conducting field surveys to plan for the future of wind and solar power projects in the province.

Pacifico Energy is a privately held, utility-scale renewable power company specializing in development of solar photovoltaic and offshore wind projects, with offices in Japan, Vietnam, the Republic of Korea, and the United States.

Singapore emerges as largest foreign investor over nine-month period

Singapore has been the largest foreign direct investor in Vietnam over the first nine months of the year with a figure of US$4.7 billion, accounting for 44.9% of total newly registered capital, according to figures recently released by the General Statistics Office (GSO).

This comes as the total foreign direct investment (FDI) capital in the country by September 20, including newly granted and adjusted capital through capital contribution and share purchase value of foreign investors, reached a sum of US$21.2 billion, representing a decline of 18.9% on year.

In terms of the number of new projects, Singapore ranked fourth with 173 investment projects in Vietnam behind the Republic of Korea (RoK) with 499 projects, China with 271 projects, and Japan with 209 projects.

Notably, the Bac Lieu Liquefied Natural Gas (LNG) Power Plant project under LNG Bac Lieu Thermal Power Center of Singapore was one of the biggest foreign-invested projects in the country with a registered investment capital of US$4 billion. The project aims to generate electricity from liquefied natural gas.

The sectors which attracted the most FDI during the reviewed period include the processing industry, manufacturing, real estate firms, along with the production and distribution of electricity, gas, hot water, steam, and air-conditioning.

Out of a total of 72 countries and territories which have newly licensed investment projects in the nation since the start of the year, Singapore represented the largest investor with US$4.7 billion, accounting for 44.9% of total newly registered capital. The island state was followed by China with US$1,079.7 million, the Republic of Korea (RoK) at US$1,076.6 million, Hong Kong (China) at US$876.1 million, and Taiwan (China) at US$852.4 million.

Majority of businesses optimistic about production prospects ahead

A total of 81% of businesses operating in the manufacturing and processing industries believe that production will continue to recover and prosper in the fourth quarter of the year, according to a survey recently conducted by the General Statistics Office (GSO). 

Most businesses are upbeat about economic recovery in the fourth quarter of the year.
Announcing the results of the survey in Hanoi on September 29, the GSO noted that 32.2% of manufacturing and processing firms rated their production and business prospects better in the third quarter of the year in comparison to the second quarter. Meanwhile,  35.9% of respondents said that they believed the situation was stable and 31.9% rated the situation as difficult.

Despite just going through a difficult patch, the majority of businesses expressed their upbeat about the market’s recovery and the purchasing power ahead in the fourth quarter of the year. As such, 81% of respondents answered that market trends would be either better or stable moving forward, while 19% of respondents forecast that the situation would prove to be more challenging.

The GSO also used the occasion to report that in September, only 10,300 businesses had registered for operation, pouring in a total of VND203 trillion in investment capital, generating 83,000 jobs in the process. These figures represent drops of 23.1%, 29.6%, and 13.8%, respectively, in comparison to the figures from August.

Overall, during the course of the first nine months of the year, authorities licensed approximately 99,000 new businesses with a total registered capital of VND1.43 quadrillion, down by 3.2% in terms of the number of businesses, but up 10.7% in registered capital from the previous year. In addition, 34,600 enterprises also resumed operations, an annual increase of 25.5%.

The GSO also announced that the national economy is anticipated to grow by 2.62% in the third quarter, which is much higher than the Q2 figure (0.39%) but lower than the Q1 figure (3.68%). As a result, the nine-month GDP growth is estimated at 2.12%, representing a 10-year record low but considered a success given the impact of the COVID-19 pandemic.

Vietnam seeks opportunities to promote wood exports to Canada

Canada represents a potential market for Vietnamese wood and furniture firms to expand into and increase their market share, according to experts at an online trade exchange held in Ho Chi Minh City on September 30. 

Vietnamese wood and furniture firms see bright export prospects in Canadian market
Nguyen Chanh Phuong, vice president and general secretary of the HCM City Association of Handicraft and Wood Industry (Hawa), said due to the novel coronavirus (COVID-19) epidemic negatively affecting global trade, Vietnamese wood and furniture exports to Canada have maintained positive growth.

Indeed, Canada is viewed as one of the major markets that can help the local wood sector fulfill its export target of US$12 billion by 2020.

Furthermore, the Vietnamese Ambassador to Canada Pham Cao Phong said the country is currently Canada’s largest trading partner in the ASEAN region, in addition to being the North American nation’s fifth largest trading partner throughout all of Asia.

Last year, two-way trade turnover witnessed a surge of 23% to US$6.2 billion compared to 2018’s figures, while maintaining a growth rate of 0.1% during the first half of the year despite the impact of the COVID-19 epidemic.

With both country’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnamese wooden products enjoy a greater competitive advantages in terms of price in the Canadian market as they now benefit from a preferential import tax of 0%.

Throughout the first eight months of the year wood products represent one of the export items that have been able to maintain a high growth rate of 10.3%, with Canada becoming an important gateway to allow local furniture to penetrate the North American market.

Despite these positives, the value of Vietnamese wood furniture exports to Canada accounts for approximately 2.5% of the country’s total value and only 1.6% of Canada’s total import value of wooden furniture each year, thereby opening up further opportunities in which local businesses can expand their market share in the potential market.

Jacques Nadeaus, a trade expert of the United Nations’ Food and Agriculture Organization (FAO), advised local firms to regularly connect with customers who have purchased items from Vietnam, whilst being active in gaining insights into the needs of importers and consumer tastes in order to fully tap into the Canadian market moving forward.

Singaporean economic experts evaluate Vietnamese economic prospects

Economic experts in the financial and securities sectors from Singapore have stated that the Vietnamese economy has made a recovery in the third quarter of the year, despite its growth rate being weaker than forecast, with annual gross domestic product (GDP) growth reaching between 2.8% and 2.9%. 

The nation’s GDP during the last quarter rebounded to 2.6% on-year, a significant rise from 0.4% in the previous quarter, although lower than the 2.7% predicted by private sector economists.

This indicates that the country’s recovery rate remains weak, largely caused following the recurrence of the novel coronavirus (COVID-19) pandemic in the central city of Da Nang in late July, according to UOB Bank research team leader Suan Teck Kin.

At present, Vietnamese authorities have successfully brought the pandemic under control and business activities have since made a return to normal, although they are still below their usual  level.

Economists Linda Liu and Chua Hak Bin of Maybank Kim Eng Securities Company believe that the nation has escaped recession amid the raging pandemic, although recovery has weakened due to the impact of the second outbreak.

Furthermore, Suan Teck Kin said that despite the worst impact of the pandemic appearing to be over, with signs that it is abating in other Asian countries, there is still "a long way to go" before the Vietnamese economy can return to pre-pandemic levels.

Current data indicates a "weak recovery" for the industry and service sectors, which makes up over 70% of the national economy. The service sector, which is heavily dependent on domestic tourism, has been hit by closed borders worldwide, with the situation anticipated to be bleak for some time.

Kim has hopes that the local economy will start to recover ahead in the fourth quarter of the year, but at a limited speed due to the impact of the ongoing pandemic. Indeed, the country is likely to achieve 4% GDP growth during the fourth quarter, with GDP growth for the entire year expected to be at 2.8%, he added.

As a result of these forecasts, economists from Maybank Kim Eng have lowered their forecast for the nation’s fourth quarter GDP growth from its previous level of 6% to 4.5%, whilst their expectations for GDP growth for the whole year has fallen from 3.6% to 2.9%, stating that "the recovery seems to be weakening".

These experts believe that the industry and construction sectors will continue to lead the recovery, while the service sectors will suffer a further decline due to lower demand and a lack of a real tourism recovery.

However, experts at Maybank Kim Eng noted positive signs, with the retail commodity sector posting a higher than expected recovery with an increase from 3.6% in August to 4.9% in September. This showed that services that do not relate to tourism are starting to follow the recovery trend.

Vietnamese logistics players urged to embrace digital transformation

Digital transformation is crucial for logistics players to maintain their competitive edge but it is by no means an easy task.

This was stressed at the seminar titled "Logistics industry before the turning point of digital transformation. Risk management to properly and effectively digitize services", held in Ho Chi Minh City on September 30.

Nguyen Tuong, deputy secretary general of the Vietnam Logistics Association, pointed out three challenges keeping logistics companies from embracing digital transformation, including financial capacity, human resources, and choosing suitable technology. In particular, companies need from hundreds of millions to dozens of billions of dong to invest in digital technologies. However, the majority of Vietnamese logistics players are small- and medium-sized, so they lack the capital to digitise their operations.

“In addition, there are few international-standard software offerings in Vietnam, making it difficult for local firms to choose suitable technology. Logistics leaders are not confident about data and payment security when implementing digital transformation. Both leaders and staff remain hesitant to change their habits for the digital environment. Thus, we need to change the perceptions of logistics companies,” he said.

Nguyen Ngoc Dung, vice chairman of the Vietnam E-commerce Association (Vecom), shared that local firms have remained slow to embrace digital transformation in the past 10 years. A shipper in a developed market can deliver 200 parcels a day with map data to optimise routes. In Vietnam, a shipper can deliver two parcels a day on average as it takes time to find the address and wait for the recipient to collect the order.

Most e-commerce activities are taking place in big cities like Hanoi and Ho Chi Minh City. Logistics companies also focus on the urban areas which increases shipment costs for long distance.

According to the Vietnam Logistics Association, not many logistics firms apply integrated solutions in their logistics and supply chains. Around 40 per cent of software applications remain basic such as international forwarding management, warehouse management, transport management, electronic data exchange, and customs declaration.

Nation entices many relocating companies

Despite some good news in mobilising foreign direct investment even in the middle of a pandemic, Vietnam has not ceased in its efforts to welcome eagles and sparrows to the country to build new nests.

A fortnight ago, Pegatron Corporation, one of the world’s five largest electronic parts and component manufacturers, announced that it would invest $1 billion into Vietnam, and is proposing to develop a plant in the northern region, according to a source from the Ministry of Planning and Investment (MPI). Pegatron will pour $19 million as part of this capital volume into an industrial zone.

The company is also seeking permission for future projects worth $480 million, also part of the above-said $1 billion, and estimated to create 22,500 direct jobs, while contributing around VND100 billion ($4.35 million) annually to state coffers. A third phase in Vietnam worth $500 million of investment is set for 2026-2027.

Besides these plans on manufacturing of computing, communications, and consumer electronics, Pegatron is also seeking to move its research and development centre from China to Vietnam.

According to a representative of the MPI’s Foreign Investment Agency (FIA), Pegatron has been planning to relocate out of China for nearly a year. Reasons include the US-China trade dispute and an ongoing patent lawsuit with Qualcomm, which may end up costing Pegatron billions of US dollars.

This year, rumours have circulated relating to the relocation of Pegatron to Indonesia or India, attached to the manufacturing of Apple products. Pegatron currently supplies 30 per cent of total components to Apple.

With Samsung still being the biggest presence in Vietnam and the likes of Apple, Intel, and Nintendo attempting to forge new strategies in the country, other technology giants are also choosing the country as a brand new destination or for expansion plans.

“Following Intel over a decade ago, numerous companies from various countries like LG, Samsung, Foxconn, and Kyocera have already carried out huge projects in Vietnam, which enabled it to become a more promising land for the world’s other leading technology producers,” explained Phan Huu Thang, former director general of the FIA.

Foxconn, which has placed investment in Vietnam since 2007, started with small-sized projects in the northern provinces of Bac Ninh, Bac Giang, and Vinh Phuc. Last year it expanded its project in Bac Ninh, building a 600ha factory here, with further plans to pour $325 million in building affordable apartments for workers across three provinces.

Elsewhere, Winstron NeWeb Corporation from Taiwan, specialising in high-quality services for communications products, has just broken ground on its $300-million factory in the northern province of Ha Nam’s Dong Van 3 Industrial Zone.

Promoting the achievements in mobilising foreign direct investment (FDI) in recent years, the FIA is doing utmost to innovate and call for more investors into the country, especially in the context of restructuring supply chains across the world.

Do Nhat Hoang, the current FIA director general, said that collaboration with banks in mobilising FDI, especially catching up with the wave of relocations, is the most efficient method at present. Vietnam welcomed investors of all sizes providing that they bring good investments into the country.

Despite the unpredictable nature of COVID-19 and difficulties in transporting overseas, numerous online investment promotion events or bilateral talks with overseas investors have been taking place. These have helped to facilitate almost $20 billion in registered investment into Vietnam over the first eight months of 2020.

In addition to the latest movements of technology giants such as Pegatron and Apple, Millennium Corporation is planning to develop a $15-billion super gas power project in the south-central province of Khanh Hoa, while Exxon Mobil has also committed to carrying out billion-dollar projects in the country.

“Numerous investors are seeking large-scale projects around $500 million or even several billions of US dollars in Vietnam which are currently under negotiation,” Hoang said, while reaffirming that Vietnam has already prepared for the needs of investors including land, power, human resources, and strong and relevant policies.

Of these, a transparent investment climate and attractive incentives are most important to lure more giants. After issuing the amended Law on Investment in June, some legal documents which facilitate foreign investors are being compiled quickly, including a decree cutting 60 per cent of total conditional business lines and sectors off-limits for foreign investors, as well as a special project to orient and receive more relocating FDI after the pandemic. “These should be submitted to the government soon,” the FIA representative said.

MPI Minister Nguyen Chi Dung said that along with proactively approaching corporations that plan to relocate or restructure supply chains, an FDI task force has been providing general advice and proposing the most outstanding incentives to negotiate not only with Apple and its suppliers, but also more leading technology giants worldwide in order to entice them to build facilities in the country.

Indonesia, RoK boost business cooperation

Indonesia and the Republic of Korea (RoK) have enhancing their business ties with investments worth thousands of billions of rupiah that will create thousands of jobs in the Southeast Asian nation.

Indonesian Foreign Minister Retno Marsudi said on September 30 that at least three business deals were reached during a recent working visit to the RoK by State-Owned Enterprises Minister Erick Thohir and Investment Coordinating Board (BKPM) head Bahlil Lahadalia.

Particularly, the RoK’s glass manufacturer KC Glass Co. Ltd. is set to invest 5.1 trillion rupiah (342.9 million USD) in a deal that can help employ up to 1,300 Indonesian workers.

Garment company PT Sejin Fashion Indonesia, a subsidiary of the RoK’s footwear manufacturer Parkland Co., Ltd., plans to relocate its production base from China to Indonesia. With an investment of 1.2 trillion rupiah, it could provide 4,000 new jobs for local workers.

Meanwhile, the RoK’s largest chemical company, LG Chem Ltd., is set to develop an electric car battery plant and bring a "huge amount" of investment into Indonesia.

In the health sector, Indonesia and the RoK are currently working together through pharmaceutical companies Kalbe Farma and Genexine to develop a COVID-19 vaccine.

According to FM Retno, since the beginning of the pandemic, the RoK has been an important partner for Indonesia in providing medical supplies needed to handle COVID-19, including personal protective equipment.

Amid global travel restrictions in place due to the novel coronavirus, the two countries arranged a travel corridor for essential business and official visits (TCA), effective on August 17.

Viettel to divest from three affiliates

Vietnam's biggest telecom firm Viettel plans to divest capital in three affiliates to over 50 percent of capital this month and next month.

They are Viettel Post Joint Stock Corporation (VTP), Viettel Construction Joint Stock Corporation (CTR) and Viettel Consultant and Design Joint Stock Company (VTK).

VTK is trading on the Unlisted Public Company Market (UPCoM) with a market price of around 24,000 VND per share. Its market capitalisation totals nearly 100 billion VND (4.3 million USD).

The company is the designer of the five North-South optical fiber lines with a total length of over 8,500km and nearly 190,000km of branched fiber optic cable lines.

VTK can take advantage of Viettel’s ecosystem to expand business activities along the border. By the end of 2019, the company had provided services in six foreign markets of Laos, Cambodia, Mozambique, Cameroon, Haiti and Peru.

The company targets to reach revenue of 200-350 billion VND by 2025, as well as pre-tax profit of 30-40 billion VND.

It plans to maintain a stable dividend rate of 10-20 percent per year in the 2020 - 2025 period. This year, the company expected revenue to touch 136 billion VND, with profit of over 16 billion VND and dividend payout rate of 15-20 percent.

CTR is trading on UPCoM, with a market price of more than 41,000 VND and market capitalisation of nearly 3 trillion VND.

This is the largest operator of the infrastructure network in Vietnam. In 2019, while other units in the same industry had declining business results, CTR grew strongly thanks to the promotion of construction activities.

Last year’s consolidated revenue and post-tax profit reached 5 trillion VND and 181 billion VND, respectively, up 18 percent and 23 percent year-on-year.

In the first six months of 2020, its revenue reached 2.7 trillion VND, up 11 percent year-on-year. Post-tax profit touched 98.4 billion VND, up 28 percent against last year.

CTR aims to expand the provision of construction operation services in foreign markets, developing solutions in smart energy for telecommunications as well as other industries. It expected revenue to reach 10 trillion VND to 11.4 trillion VND by 2025, and pre-tax profit to reach 300-500 billion VND.

VTP is also trading on UPCoM with a market price of more than 104,000 VND, equivalent to market capitalisation of about 8.7 trillion VND.

The company focuses on three main business segments of delivery services, logistics services and trade and services.

It recorded very strong growth in both revenue and market share and holds 21 percent market share in the delivery market. The unit owns a nationwide delivery network of 2,200 post offices, 827 shops and 469 postal service points.

In the last five years, Viettel Post's revenue maintained a high growth rate of over 40 percent per year. In 2019, net revenue from selling goods and providing services reached 7.8 trillion VND, posting a growth of 58.7 percent. This figure is higher than the average growth of companies in the delivery industry of 49.4 percent and outstripped the growth of 8.7 percent of the transport and warehousing industry.

In the 2015-2019 period, the after-tax profit growth rate averaged 59 percent per year. Post-tax profit in 2019 reached more than 380 billion VND, marking a growth of 36.2 percent compared to 2018. This growth rate is higher than that of the delivery industry of 33.4 percent and many times higher than the figure for the transportation and warehousing industry of 7.6 percent.

In the first six months of 2020, as many businesses were affected by the COVID-19 pandemic, Viettel Post still recorded positive results in production and business activities. Its net revenue reached nearly 6.8 trillion VND, up to 125.3 percent year-on-year. Post-tax profit rose by 21.2 percent to touch nearly 200 billion VND.

The company aims to become the top delivery company in Vietnam by 2025 with revenue between 18-23 trillion VND, and pre-tax profit of 1.2-1.4 trillion VND./.

Canada affirms strong trade ties with Vietnam

A comprehensive trade agreement between Canada and ASEAN will help Vietnam fully tap opportunities offered by free trade agreements and promote the positive impacts of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in areas of common interests, a Canadian official has said.

Kendal Hembroff, General Director for Trade Policy and Negotiations at the Global Affairs Canada (GAC), made the statement at a webinar hosted by the Canada-Vietnam Trade Council on October 1.

She highlighted strong trade ties between Canada and Vietnam, saying that these relations were built on the foundation of good people-to-people exchanges.

Vietnam is currently Canada's largest trading partner in the Association of Southeast Asian Nations (ASEAN), with a two-way trade hitting 7.98 billion CAD (6.01 billion USD) in 2019. 

After one year of implementing the CPTPP, Vietnam's export turnover to Canada increased by 29.7 percent, while Canada's export value to Vietnam also rose strongly, especially for meat and for cereal which recorded 230.7 and 61.2 percent growth.

Addressing the event, Vietnamese Ambassador to Canada Pham Cao Phong spotlighted the fact that while the world’s trade flows decreased sharply in the first six months of 2020, Vietnam-Canada trade still kept its upward trend though it grew just by 0.1 percent.

Vietnam is now in the top 10 importers of seafood from Canada, he said, with its advantage as a FTA “hub” in the Asia-Pacific, Vietnam will serve as a bridge to help Canadian goods and services access the 660 million-strong ASEAN market, as well as to other important markets in the region.

In return, Canada may be a gateway for Vietnamese products to penetrate other markets in America, Phong said.

Julie Nguyen, Director of the Canada-Vietnam Trade Council, said economic cooperation is becoming an issue of great concern of the two countries, especially when relevant parties are exploring the possibility of signing a Canada-ASEAN free trade agreement, and Vietnam is successfully taking over its role as ASEAN Chairman this year.

Canada along with four ASEAN countries, including Vietnam, Singapore, Malaysia and Brunei, are members of the CPTPP. The North American country and the bloc are implementing the Plan of Action within the Canada-ASEAN Joint Declaration on Trade and Investment.

In the context of Canada-ASEAN growing trade ties, Canadian experts said that it is necessary to establish a structure to facilitate growth and adapt to new trends and challenges in international trade and investment.

The Canada-ASEAN FTA is expected to lay a solid foundation for promoting commitments and cooperation between the two sides.

Mercosur - potential market for Vietnamese exports

Mercosur countries, comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela, could be a potential market for a wide range of Vietnamese products such as clothing, footwear, handicraft, and processed food in the context that the COVID-19 pandemic has killed off various traditional supply chains, heard a conference.

At the online Vietnam-Mercosur trade conference on October 1, Deputy Minister of Industry and Trade Do Thang Hai highlighted Vietnam has enjoyed unceasing trade development with Mercosur, the world’s 5th largest economy with more than 275 million consumers and 4.58 trillion USD in GDP.

Trade between the two sides increased 2.5 times in recent ten years, from 2.45 billion USD in 2011 to 8.68 billion USD in 2019, he said, adding Vietnam exported 2.7 billion USD worth of products, and splashed out nearly 6 billion USD purchasing goods from the bloc.

According to Hai, Vietnam has set up an array of dialogue mechanisms with most of the Mercosur member states, which have proved efficiency in promoting economy, trade and investment. They are working towards negotiations of a bilateral trade pact in a bid to create an equal and transparent playground for their businesses.

The COVID-19 pandemic has clobbered global socio-economic situation, making trade between the two sides fall 1.66 percent to 5.53 billion USD during January-August.

“Vietnam has put the outbreak under control while the Ministry of Industry and Trade is making efforts to enhance online trade promotion activities, give market information to local firms and foreign partners to remove bottlenecks in international trade. Those are favourable conditions for Vietnam to step up trade with Mercosur as well as balance trade with the bloc”, he highlighted.

According to Vietnamese Ambassador to Argentina Duong Quoc Thanh, economic cooperation has been a highlight in the sound Vietnam - Argentina friendship. With trade value of approximate 3 billion USD, Vietnam has been the largest trade partner of Argentina in the ASEAN bloc in recent five years, and the bilateral trade is forecast at 4 billion USD in 2020.

However, Vietnamese exports to Argentina were only valued at 500 million USD, accounting for 1.4 percent of the local import demand, he said, stressing there is huge room for Vietnamese garment and textile, footwear, furniture, handicraft, coffee, pepper and cashew.

Meanwhile, Vietnamese Ambassador to Brazil Pham Thi Kim Hoa said although Vietnamese seafood, footwear, processed food, beverage and toys have won the taste of Brazilian consumers, their market share remains small, making up of 1.5 percent of the country’s import need.

Analysis from the Vietnamese trade office in Argentina, Uruguay and Paraguay showed the two economies are complementary rather than competing, with Mercosur holding strengths in agricultural production, footstuff, industrial materials and miniral, and Vietnam’s key exports of electronics and communications products, garment and textiles and footwear.

Particularly, Mercosur has seen Vietnam as an important trade partner in the Asian region.

As Mercosur countries are re-shaping the post- coronavirus outbreak supply chain and diversify import products, Vietnamese firms have ample opportunity to boost trade to improve market share and export value in the time ahead.

HCM City strives to become regional healthcare hub

A HCM City-US Healthcare Dialogue titled “Realising Vision for HCM City as a Regional Healthcare Hub” was held in the southern city on October 1.

The event offered a chance for leaders of the health sector of Vietnam and HCM City and businesses of both countries to discuss solutions to boost healthcare cooperation between HCM City and the US in order to meet demand of people in Vietnam and ASEAN.

In his opening speech, Chairman of the municipal People’s Committee Nguyen Thanh Phong recalled important milestones in Vietnam-US relations. He attributed the development of the bilateral ties to tenacious and ceaseless efforts by leaders and people of the two nations across all fields, in which healthcare cooperation has played a significant part.

Vietnam and the US marked the first healthcare cooperation activity with a programme designed to aid people with disabilities launched 30 years ago to overcome war consequences, he noted.

At present, the bilateral medical collaboration has expanded to other spheres, including HIV/AIDS, tuberculosis and seasonal influenza prevention and control, healthcare for military personnel, response to African swine flu outbreaks, and most recently in battling the COVID-19 pandemic.

HCM City aims to set up a high-tech healthcare centre in the coming time in tandem with medical tourism development to attract more tourists to the city, he said.

It will also strive to turn traditional medicine into a highlight of the city’s medical tourism and the pharmaceutical industry into a spearhead economic sector, as well as ensure sufficient supply of medicine and vaccines, Phong added.

Joining the virtual dialogue, US Ambassador to Vietnam Daniel Kritenbrink spoke highly of Vietnam’s efforts in promoting healthcare development in recent years and curbing the spread of COVID-19.

He affirmed that the fight against the ravaging pandemic is an outstanding milestone, marking joint efforts in mutual support and learning each other between the US and Vietnam during the past 25 years.

US businesses and the American Chamber of Commerce in Vietnam (AMCHAM Vietnam) have paid heed to supporting Vietnam in the field of healthcare, the diplomat said.

At the dialogue, US companies voiced their hope to continue joining hands with medical schools and facilities in the city.

The event also witnessed the launch of the AmCham Vietnam’s 2020 Healthcare White Book, highlighting innovative products and services US healthcare companies offer in Vietnam, policy recommendations to promote the health and wellness of Vietnam’s population and support the growing strength of Vietnam’s healthcare industry.

Indonesia, RoK boost business cooperation

Indonesia and the Republic of Korea (RoK) have enhancing their business ties with investments worth thousands of billions of rupiah that will create thousands of jobs in the Southeast Asian nation.

Indonesian Foreign Minister Retno Marsudi said on September 30 that at least three business deals were reached during a recent working visit to the RoK by State-Owned Enterprises Minister Erick Thohir and Investment Coordinating Board (BKPM) head Bahlil Lahadalia.

Particularly, the RoK’s glass manufacturer KC Glass Co. Ltd. is set to invest 5.1 trillion rupiah (342.9 million USD) in a deal that can help employ up to 1,300 Indonesian workers.

Garment company PT Sejin Fashion Indonesia, a subsidiary of the RoK’s footwear manufacturer Parkland Co., Ltd., plans to relocate its production base from China to Indonesia. With an investment of 1.2 trillion rupiah, it could provide 4,000 new jobs for local workers.

Meanwhile, the RoK’s largest chemical company, LG Chem Ltd., is set to develop an electric car battery plant and bring a "huge amount" of investment into Indonesia.

In the health sector, Indonesia and the RoK are currently working together through pharmaceutical companies Kalbe Farma and Genexine to develop a COVID-19 vaccine.

According to FM Retno, since the beginning of the pandemic, the RoK has been an important partner for Indonesia in providing medical supplies needed to handle COVID-19, including personal protective equipment.

Amid global travel restrictions in place due to the novel coronavirus, the two countries arranged a travel corridor for essential business and official visits (TCA), effective on August 17./.

ASEAN-RoK technical vocational training project launched

The ASEAN-Republic of Korea (RoK) Technical Vocational Education and Training (TVET) for ASEAN Mobility (TEAM) project has been launched.

The virtual launch ceremony was co-organised by the RoK Mission to ASEAN, the ASEAN Secretariat and the RoK Employment and Labour Ministry.

Speaking at the event, Ambassador of the RoK to ASEAN Lim Sung-nam affirmed the RoK’s expectation that the TEAM project would contribute to the successful implementation of the Master Plan on ASEAN Connectivity 2025 and Initiative for ASEAN Integration Work Plan III.

Stressing that human is a centre of the RoK’s New Southern Policy, he hoped that TEAM project will make considerable contributions to the ASEAN-RoK efforts to build a community of peace and prosperity.

The 6.9 million USD TEAM project will be carried out in the next three years, including analysing labour markets of ASEAN member states in order to determine demand and requirements of each nation.

Based on such analysis, 100 lecturers and 400 trainees from regional countries will be invited to training courses in priority fields in the RoK. The project will also offer reform recommendations for qualification and referencing frameworks of Cambodia, Laos, Myanmar and Vietnam.

The ambassador said the RoK government will develop the project to readily meet requirements of the market and private sector./.

Vietbuild expo in HCM City features estate, architecture, decoration

The 2020 Vietbuild International Exhibition with the theme real estate, architecture and interior and exterior decoration opened in HCM City on September 30, showcasing a wide range of products, technologies and services.

It has nearly 1,500 booths set up by local and foreign companies, including leading firms in real estate, architecture and interior and exterior decoration.

On display are property projects, security equipment, electrical equipment, doors and accessories, smart housing systems, internal and external decorative items, building materials, solar energy systems, and advanced technology solutions for construction works and housing architecture.

According to the organisers, due to the impact of the COVID-19 pandemic, the exhibition this year is smaller than last year.

Business-matching events and client conferences will be held on the sidelines of the exhibition.

The exhibition will run until October 4./.

Construction on HCM City innovative start-up centre begins

The Ho Chi Minh City Innovative Start-up Centre commenced its construction on October 1, which is expected to be a hub for start-ups amid the fourth Industrial Revolution.

Located at No.123 Truong Dinh, Ward 7, District 3, the centre will have nine floors and three basements covering a total area of nearly 17,000 sq.m. Its total investment is over 300 billion VND (13 million USD).

Once operational in the second quarter of 2022, the centre will have functional areas for start-up events, exhibitions, seminars, a working space for start-ups and an open space for exchanges.

Over the past years, the city has issued a number of policies to complete its start-up ecosystem.

It is now home to over 438,000 newly-established enterprises, accounting for 32 percent of the country’s total, contributing to 54 percent of the economy and 67 percent of the total social investment.

The centre is expected to realise the project on supporting national start-up ecosystem till 2025 in line with the Prime Minister’s Decision No.884 dated May 19, 2016.

Chairman of the municipal People’s Committee Nguyen Thanh Phong asked the municipal Department of Science and Technology to promptly arrange the centre’s apparatus so that it could operate immediately following construction./.

ASEAN summit discusses inclusive business

The third ASEAN Inclusive Business Summit was organised on September 29 via video conference with the focus on discussing inclusive business strategies that support micro, small and medium-sized enterprises (MSMEs) in post-pandemic recovery.

The event, jointly held by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the Inclusive Business Action Network (iBAN) and the Organisation for Economic Cooperation and Development (OECD), marked the continued commitment of the ASEAN Community, including government representatives, the private sector, investors and development organisations, to create an enabling ecosystem for inclusive business.

In his opening remarks, UNESCAP Deputy Executive Secretary Kaveh Zahedi said that in the context that countries look to build back better from the COVID-19 pandemic, including by supporting small and medium enterprises, promoting women’s economic empowerment and accelerating the digital transformation, inclusive businesses have the potential to be a driving force for transformation towards a green, inclusive and resilient ASEAN.

During the summit, the Guidelines for the Promotion of Inclusive Business in ASEAN as well as its practical application on a national and regional level were introduced and explored. The Guidelines were endorsed by the ASEAN Economic Ministers (AEM) during the 52nd AEM Meeting in August 2020 and serve as an outline on how inclusive businesses can be supported at all levels and the institutional requirements to do so.

“The inclusive business model compels us to connect the dynamics between the government, private sector and low-income and poor communities, including the micro and small enterprises in achieving national and regional objectives. The Guidelines provide a greater understanding of these dynamics for ASEAN Member States and the region collectively to move on to consider integrating inclusive business in their national and regional policies,” said Bountheung Douangsavanh, Chair of the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME).

Meanwhile, iBAN Executive Director Christian Jahn said that the current crisis shows that inclusive businesses are more resilient against such external shocks and contribute to a speedy and sustainable recovery.

Cristina Tebar Less, Head of Responsible Business Conduct Centre under the OECD, stated that recovering from the COVID-19 crisis will require a whole-of-society effort.

“Working hand in hand with governments and all stakeholders, businesses can contribute to a recovery that is sustainable, resilient and inclusive by embracing business models and taking operational decisions that are in line with international recommendations on responsible business conduct,” she added.

Inclusive businesses provide goods, services, and livelihoods on a commercially viable basis, to people living at the base of the pyramid making them part of the value chain of companies as suppliers, distributors, retailers, or customers. Since 2017, ASEAN governments have started developing policies to encourage more inclusive businesses to emerge and scale up. At the same time, business leaders, the finance community and other stakeholders have stepped up to the task of developing inclusive business models for economic growth and social impact at scale./.

ASEAN Finance Ministers meet online

Finance ministers from ASEAN countries and representatives of international organisations looked into the regional financial situation and development issues during the 24th ASEAN Finance Ministers’ Meeting held online on October 2.

They also debated the outlook for the regional economy, ASEAN infrastructure, and connectivity initiatives, as well as the sustainable development programme.

The COVID-19 pandemic has seriously impacted not only economic activities but also efforts to deal with regional development issues, they agreed.

Given this, the World Bank (WB) and the Asian Development Bank (ADB) have rolled out financial aid packages for regional countries. In addition, the G20’s Debt Service Suspension Initiative (DSSI) has been expanded, helping 43 countries and territories defer 5 billion USD in official debt service payments.

A representative from the Vietnamese Ministry of Finance highlighted its country's efforts in completing solutions towards sustainable development, saying the Vietnamese Government will pay more attention to infrastructure development, social welfare, and climate change response.

Vietnam will continue to exchange information and use aid packages effectively and transparently, he pledged.

Delegates lauded Vietnam’s initiative to build a roadmap for the development of the ASEAN capital market with four priorities: intensifying platforms, developing products, accessing untapped areas, and enhancing awareness, capacity, and connectivity.

ASEAN finance ministers, central bank governors convene meeting

The sixth ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM) was held online in Hanoi on October 2.

The most important event in a series of regional finance-banking cooperation activities hosted by Vietnam this year, the AFMGM was co-chaired by Finance Minister Dinh Tien Dung and Governor of the State Bank of Vietnam Le Minh Hung.

Participants discussed global and regional macro-economic situation, COVID-19 response policies as well as measures to support economic recovery following the pandemic. They also considered the launch of cooperation initiatives within the framework of the ASEAN monetary-financial integration roadmap.

Due to uncertainties caused by the pandemic, they highlighted the need to step up technological application and digital transformation in financial-banking services which, they said, will contribute to a sustainable regional economy resilient to shocks similar to COVID-19.

About regional financial cooperation initiatives, officials lauded progress made by working groups. On capital market development, they approved a report on promoting sustainable finance in ASEAN with valuable recommendations for member states.

They also acknowledged negotiation outcomes of the Working Group on Financial Services Liberalisation and the ninth package of financial commitments under the ASEAN Framework Agreement on Services.

The meeting adopted the draft revised Roadmap to the ASEAN Insurance Integration Framework, spoke highly of cooperation outcomes of working groups in the banking sector with almost all the targets set early this year being met.

Central bank governors also approved a number of cooperation initiatives, including a report on the role of the central banks in climate and environment risks, principles of Sustainable Banking in ASEAN proposed by Vietnam, and the cyber security risk information sharing programme (CRISP), among others.

With high consensus, delegates approved a Joint Statement of the sixth AFMGM.

Later, Finance Minister Dung and State Bank Governor Hung co-chaired a press conference announcing the outcomes of the meeting./. 

ASEAN promoting digital transformation in banking

Governor of the State Bank of Vietnam (SBV) Le Minh Hung chaired the 16th ASEAN Central Bank Governors’ Meeting (ACGM) on October 2, held in the form of a teleconference.

Delegates mulled over issues such as digital transformation in financial-banking services in countries and traditional financial-banking organisations amid Industry 4.0, and the Creative Media and Digital Culture Programme (CMDC).

The Bank for International Settlements (BIS) gave recommendations on ensuring financial stability, protecting clients, and maintaining trust and cyber security during the design and use of the CMDC.

Governors shared the view that digital transformation in the regional banking sector has become an inevitable trend, and many ASEAN member countries have devised digital transformation strategies in the finance-banking sector.

In addition to discussing priorities and initiatives within ASEAN financial-banking cooperation, they also approved initiatives on the sustainable banking agenda and agreed to attach a specific release on this to the joint statement adopted at the sixth ASEAN Finance Ministers’ and Central Bank Governors’ Meeting.

Governors concurred to begin the building of a code of conduct for sustainable banks in ASEAN as initiated by the SBV as Chair of ACGM 2020./.

ASEAN 2020: Meeting held promoting regional sustainable finance

Solutions to promoting sustainable finance in ASEAN, digital transformation in the financial service sector amid the fourth Industrial Revolution, comprehensive financial solutions, and regional digital commerce links were on the agenda of the 6th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM), held online on October 2.

In his opening remarks, Minister of Finance of Vietnam Dinh Tien Dung emphasised that the annual dialogue between ASEAN Finance Ministers and Central Bank Governors and representatives of member groups of the ASEAN Business Advisory Council, the EU-ASEAN Business Council, and the US-ASEAN Business Council has created a forum for managers and policy makers to openly exchange views on issues of concern in the region and the world.

He highlighted the necessity of implementing solutions to mobilise and use public finance effectively and mobilising private resources and donor development assistance for sustainable development goals.

For sustainable and healthy development in the financial sector, he said, Vietnam is currently stepping up the restructuring of budget spending in the health sector, promoting the mobilisation of private capital sources for medical development, and encouraging businesses to develop insurance products for social security purposes.

He said the ministry has focused on promoting the application of information technology (IT) in a range of fields, especially in tax administration and customs, and this is helping to improve the business environment and significantly cut business costs.

ASEAN Finance Ministers and Central Bank Governors highlighted the important role of promoting regional sustainable finance in developing infrastructure and health systems in the context of ASEAN facing a lack of investment capital for infrastructure development.

They emphasised the need to further promote cooperation in mobilising financial resources for developing infrastructure and health systems in order to resolve growth bottlenecks and narrow the development gap in each country and within the ASEAN region.

Representatives from business communities made recommendations on funding for infrastructure development, especially long-term funding, sustainable finance, and sustainable health assistance.

Participants also spent time discussing issues related to digital transformation in financial services, comprehensive financial solutions, and digital trade links in the region.

They stressed the urgent need for coordination and dialogue between policy makers and business communities, to build appropriate policies, and create a favourable investment and business environment in every economy and in the region, towards gradually overcoming the difficulties caused by the COVID-19 epidemic and recovering production activities, contributing to the region’s post-pandemic economic recovery and sustainable economic development.

ASEAN Finance Ministers and Central Bank Governors will continue to maintain the annual dialogue channel with business communities in the time to come./.

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