The COVID-19 pandemic is challenging the goal of keeping bad debt ratio at below 3 percent at the end of this year. (Photo: thoibaokinhdoanh.vn)

The COVID-19 pandemic is weighing on the banking system’s non-performing loans (NPLs), requiring significant efforts to keep NPLs ratio below 3percent by the end of this year as targeted by the Government.

Tran Du Lich, a member of the National Financial and Monetary Policy Advisory Council, said the increase in bad debts was unavoidable because of the pandemic. However, it was necessary to keep NPLs ratio at a reasonable level, Lich said, adding that bad debts would negatively affect credit flow.

According to the State Bank of Vietnam, the pandemic pushed up NPLs ratio. Statistics showed that on-balance sheet NPLs ratio was estimated at 1.8 percent at the end of June.

In the scenario that the gross domestic product (GDP) expanded at four percent this year, on-balance sheet NPLs ratio was forecast at 2.41 percent by the end of this year, 0.78 percentage point higher than the end of 2019. If GDP expanded at five percent this year, the ratio of on-balance sheet NPLs would be at 2.16 percent, 0.5 percent higher.

Experts predicted that the Government’s target of keeping bad debt ratio, including on-balance sheet NPLs of credit institutions, bad debts sold to the Vietnam Asset Management Company (VAMC) and debts that had implemented debt classification measures, below three percent would be challenging this year.

According to Do Hoai Linh, Director of the Finance and Banking Institute, the goal seemed impossible because COVID-19 was weighing on the socio-economic development. Linh predicted the NPLs ratio would be around four percent this year.

Can Van Luc from BIDV Training and Research Institute predicted on-balance sheet NPLs ratio at four percent, more than twice higher than the end of last year due to anticipated low credit growth and struggling business.

Luc said the total ratio of NPLs, including on-balance sheet, sold to VAMC and debts classified, could amount up to six percent of the total outstanding loans, 1.5 times higher than the end of 2019.

The central bank said that struggling business and production were affecting revenues and asset quality of credit institutions.

The banking sector was on the way to keeping NPLs ratio below 3 percent by the end of this year but the pandemic posed a significant challenge.

Global and domestic economic uncertainties, coupled with unpredicted development of African swine fever, natural disasters and diseases were also challenges in controlling bad debts.

As bad debts mainly stayed at weak credit institutions, the central bank said focus would be placed on restructuring these credit institutions following the market mechanism and the principle of ensuring rights of depositors and maintaining the system’s stability and safety.

On-balance sheet NPLs ratio has been kept at below three percent during the past four years, specifically 2.46 percent in 2016, 1.99 percent in 2017, 1.91 percent in 2018 and 1.63 percent in 2019.

Vietnam-Mali trade exchange forecast to fall this year

Trade exchange between Vietnam and Mali in 2020 will plummet due to obstacles in transporting goods to Mali and difficulties related the embargo imposed by the Economic Community of West African States (ECOWAS) against Mali, said Vietnamese Trade Counsellor in Algeria and Mali Hoang Duc Nhuan.

According to Nhuan, the economic sanctions of ECOWAS has had significant impacts on Mali in general and commercial relations between Vietnam and Mali in particular.

Vietnamese businesses need to keep a close watch on Mali's political developments and economic policy changes, and be cautious in transactions amid the COVID-19 outbreak and the transaction blockade by the Central Bank of West African States.

Currently, a number of problems have occurred such as the goods arriving at ports later than the schedule due to COVID-19, the goods could not be transported to Mali due to its neighboring countries closed borders with the Western African country, or importers cannot make payments from any bank in Mali due to the blockade of international transactions, Nhuan said.

Vietnamese businesses should learn about partners clearly to avoid commercial risks, he added.

Statistics from the General Department of Vietnam Customs show that Vietnam’s exports to Mali in 2019 hit 38.9 million USD, up nearly 11 times compared to the previous year, with major exports such as crude oil, cement, aquatic products, pepper, rice, and plastic products. Meanwhile, Vietnam spent 28.49 million USD on importing goods from the Western African country, mainly cotton, cashew nut, copper, computer, and steel products.

ECOWAS comprises 15 Western African nations, including Mali. The community imposed economic sanctions on Mali after a coup in the country last month. ECOWAS announced the closure of land and air borders and cessation of all economic, commercial and financial transactions between the 14 member states and Mali, and urged its partners to do the same.

The organisation said it has temporarily removed Mali from ECOWAS policy-making bodies. After the decision, the Central Bank of West African States (BCEAO) sent a letter to its member banks and financial institutions, requesting them to suspend transactions with Mali.

Dong Nai speeds up key transport projects

The southern province of Dong Nai has mobilised all resources to speed up the progress of several major transport projects, including the Long Thanh International Airport.

The projects are expected to drive sustainable economic growth not only for the province but also for the Southern Key Economic Region and the entire country.

The Long Thanh International Airport, the country’s largest-ever project, will cost 336.63 trillion VND (14.53 billion USD). Its construction is divided into three phases. The first phase is expected to begin construction next year.

More than 5,000ha of land, which belongs to 18 organisations and nearly 5,300 households with a total of 15,000 people in Long Thanh district, have to be cleared to build the airport. Another 364ha will be required to build the two resettlement sites.

The total cost for ground clearance, compensation and resettlement support is estimated at nearly 23 trillion VND (992 million USD).

The province is set to give priority to site clearance on an area covering 1,810ha. It has paid compensation to the Dong Nai Rubber Corporation to acquire 1,180ha owned by the company to build two resettlement areas in Loc An and Binh Son communes in Long Thanh district.

About 130ha has been acquired from 330 households with compensation payments of more than 625 billion VND (27 million USD).

Compensation rates and detailed compensation plans are being considered for the remaining area and are expected to be handed over for construction of the airport in October.

Most of the affected households have agreed to the compensation and support offered.

Prime Minister Nguyen Xuan Phuc in July asked the provincial authority to complete site clearance for all land for the airport project next year. To achieve the goal, compensation payments to all affected households must be completed by the end of this year.

Le Van Tiep, Vice Chairman of the provincial People’s Committee, said about 50 staff from departments and branches moved to Long Thanh district last year to carry out the project’s land compensation and site clearance.

But the district authority asked for 40 additional staff due to the heavy workload. The additional staff moved to the district in August to help speed up the work.

A number of other key transport projects are being implemented in the province.

They include Ben Luc - Long Thanh Expressway between Long An and Dong Nai provinces, Phan Thiet - Dau Giay Expressway between Binh Thuan and Dong Nai provinces, Dau Giay Intersection, and Ring Road No 3 linking HCM City with Dong Nai and Binh Duong provinces.

Phan Thiet - Dau Giay Expressway is an eastern section of the North-South Expressway with a total length of nearly 100km. The section passing through Dong Nai province will extend more than 51km.

A total of 412ha area is needed to build the expressway. Land clearance tasks for the project construction are nearly completed.

The province has approved a compensation plan for the remaining 342 households and 10 organisations affected by the project in Xuan Loc district. It aims to complete compensation payments and hand over all land for construction of the project in September.

In a related matter, a number of key transport projects in the province have been delayed due to land clearance problems.

The Dau Giay Intersection project, for example, will reduce traffic congestion at the intersection between national highways No 1A and 20 in Thong Nhat district. But it has been delayed for more than two years.

Delays were caused partly by slow compensation payments to affected households, causing compensation and resettlement support costs to increase by more than 5 times compared to the original financial plan.

The cost has increased to 130 billion VND (5.6 million USD) from 22 billion VNd (950,000 USD).

The provincial People’s Committee has proposed that the Government direct the Ministry of Transport to work with relevant units to arrange capital sources to complete the intersection project.

Cao Tien Dũng, chairman of the committee, said the province has asked all departments, branches and localities to make efforts to speed up site clearance and disbursement of funds.

It has set up a steering committee to create relevant procedures related to the projects, as well as monthly checks and monitoring of the projects’ progress so that problems can be solved promptly.

The leaders of the province are working with relevant agencies weekly to urge progress in land acquisition, compensation, resettlement and vocational training for locals affected by the projects.

The committee has told local authorities to prepare for the construction of resettlement areas. If the districts need capital, they will be allowed to advance investment capital to build the resettlement areas.

Japan, Malaysia sign 3 billion USD currency swap deal

Japan and Malaysia on September 18 signed a mutual currency swap arrangement to allow each side to provide the other up to 3 billion USD to prevent a financial crisis, the Japanese Finance Ministry said.

The deal reflects the continued bilateral financial cooperation between Japan and Malaysia that will contribute to the stability of financial markets, the countries said in a joint statement.

It will further strengthen the growing economic and trade ties between the two countries, it added.

The arrangement, which enables both authorities to swap their local currencies for US dollars, is aimed at safeguarding each other in times of currency turmoil, such as speculative attacks.

Industrial park stocks attractive post-pandemic

Despite short-term difficulties, the prospects for industrial park stocks will increase after the COVID-19 pandemic is over, driven by the relocation of global firms to diversify supply chains, with many picking Vietnam as their destination.

The complex development of the pandemic had adverse impacts on investment and leasing in industrial parks.

Vietnam has 336 industrial parks with a total area of 97,800 hectares, of which 261 are in operation. Data from the Ministry of Planning and Investment showed the average occupancy rate in operating industrial zones was at 76 percent by end-June.

Both revenues and profits of industrial park (IP) developers slumped in the first six months. Total revenues of 18 listed IP companies reached 21.4 trillion VND (922.4 million USD), down 14 percent from 2019, while their net profits declined 18 percent to 3.6 trillion VND.

Poor business results negatively affected stock prices of big companies such as Becamex IDC (BCM), whose revenue was down 24 percent and net profit decreased 52 percent year-on-year, and Kinh Bac City Development Share Holding Corp (KBC), whose revenue and net profit plummeted by more than 50 percent.

Shares of these two companies also lost about 10 percent in the first half of the year.

According to Saigon Securities Inc (SSI), the COVID-19 pandemic has caused serious disruptions in global supply chains and businesses are seeking to diversify their production activities, from which Vietnam is expected to benefit.

If the pandemic was brought under control by the end of this year, demand for industrial parks will increase, especially from firms planning to move part of their production to Vietnam, such as Microsoft, Panasonic, Sharp and FoxConn.

The policy of encouraging foreign direct investment (FDI) of Japanese and Vietnamese governments can also create opportunities for some Japanese enterprises to expand production to Vietnam, such as Shin-Etsu Chemical, Hoya Corporation, Matsuoka, Meiko Electronics, Yokowo and Nikkiso.

The Government’s planning of new industrial zone development for 2021-2025 can also help increase the area of new industrial zones in the future. Large IPs with a total land area of 1,000ha or more could attract large FDI corporations, SSI wrote in a report.

The improvement of infrastructures, such as the Bien Hoa-Vung Tau, Dau Day-Phan Thiet expressways, North-South Expressway, Cai Mep Thi Vai Port and Gemalink Port, facilitate connection for industrial zones.

In addition, the leasing price of industrial land in Vietnam is about 30-40 percent lower than that of Indonesia and Thailand which can be an advantage in attracting FDI. Therefore, the land price in IPs is expected to increase by 7-8 percent in the South and 5-6 percent in the North in 2021, according to SSI.

Share prices of many IP developers have also increased recently.

BCM lost 10 percent in the first six months but started to pick up since August. BCM is being traded around 42,000 VND (1.81 USD) per share this week, up 62 percent since its bottom in June.

Shrugging off losses in the first six months, shares of KBC also rose 63 percent compared to early this year, being traded around 13,500 VND a share.

Prices of smaller companies’ shares such as Tan Tao Investment and Industry Corp (ITA), Sonadezi Chau Duc Shareholding Co (SZC) and Long Hau Corp (LHG) also climbed between 51-79 percent each./.

Tourism sectors in Vietnam, India seek ways to overcome obstacles

A webinar on the prospects for Vietnam-India tourism cooperation in the post-pandemic era was held on September 17, bringing together representatives from some 200 travel companies, hotels, and media agencies in the two countries.

Aiming to identify measures to recover and foster the two countries’ tourism sectors in the “new normal” following the pandemic, the was co-held by the Embassy of Vietnam in India, the Policy Times newspaper, and the Millennial India International Chamber of Commerce - Industry and Agriculture (MIICCIA).

It was the second programme in the 2020 Vietnam-India Business Forum, which is hoped to connect enterprises in various fields from the two countries.

Vietnam-India tourism cooperation has thrived in recent years, especially since the launch of direct air routes. Like so many things, though, it has been disrupted by the COVID-19 pandemic.

Delegates at the webinar affirmed that Vietnam and India hold huge potential in tourism cooperation.

Though now is still not a suitable time to resume tourism cooperation fully, the webinar offered the chance for the two sides to discuss the obstacles and challenges facing the tourism sectors and prepare stimulus programmes once the pandemic is brought under control.

It also helped travel companies and hotels introduce products and bolster their cooperation, thereby enhancing relations between the two countries in general.

Addressing the webinar, Deputy Director General of the Vietnam National Administration of Tourism Ha Van Sieu called on authorities, organisations, and businesses in both countries to bolster their engagement to overcome the challenges presented by the pandemic.

In addition to support from the Governments, he proposed introducing flexible booking policies for tourists and urged airlines, travel companies, and service providers to join hands and share information to overcome this time of hardship, as well as devise plans on setting up travel corridors to promote safe travel after COVID-19.

He added that in the post-pandemic era, tourism management agencies, tourism associations, and tourism businesses in Vietnam and India need to foster cooperation to address the consequences of restrictions imposed to curb the spread of COVID-19 and to explore opportunities to re-open, attract investment, and arrange exchanges and air links.

Thanks to tourism promotions, the number of Indian holidaymakers coming to Vietnam increased 25 percent each year from 2016 to 2019, while Vietnamese visitors to India rose 17 percent.

In 2019 alone, close to 30,000 Vietnamese travelled to India, while about 170,000 Indians visited Vietnam.

Thailand: TINT appoints radio pharmaceuticals reseller in Myanmar

The Thailand Institute of Nuclear Technology (TINT) has signed a deal with Nagase Thailand to appoint the company as an official reseller of the radiopharmaceuticals product Technetium-99m in Myanmar.

TINT Executive Director Thawatchai Onjun has said that the institute has appointed Nagase Thailand an official reseller of a therapeutic radiopharmaceuticals Technetium-99m in Myanmar, marking the first attempt by Thailand to make a commercial sale of radiopharmaceuticals made in Thailand in a foreign country.

Technetium-99m is a radiopharmaceuticals product commonly used at hospitals in physical examinations. TINT expects the two-year contract for sales in Myanmar will help initiate sales to other countries, especially in the ASEAN region, helping stress the institute’s position as the region’s leader in nuclear technology.

Nagase Thailand’s Managing Director, Kenichi Kurimoto said the company hopes to extend the business beyond Myanmar to other countries, such as Malaysia, as well as ASEAN countries where the company has local offices, in both Laos and Cambodia.

ASEAN countries have previously relied on the importation of radiopharmaceuticals from Japan, South Korea, and European countries, with only limited local manufacturing and sales within the region. TINT is positive made-in-Thailand radiopharmaceuticals will be internationally accepted for their quality.

Footwear exports likely to fall short of target due to COVID-19

Footwear exports this year are unlikely to hit the target of 24 billion USD because of the fallout of the COVID-19 pandemic, according to the Ministry of Industry and Trade.

According to data from the General Department of Customs, exports in the first eight months were worth 10.8 billion USD, a 9.46 percent fall year-on-year, as the two largest markets, the US and the EU, cut their orders.

Other top importers such as China and Japan also reduced orders.

The top buyer of Vietnamese footwear, the US bought 3.43 billion USD worth of products, or 8.58 percent less year-on-year, in the first seven months, the latest period for which the customs has figures for individual countries.

The EU’s imports were down 32.5 percent to 2.21 billion USD as the two biggest individual markets, Belgium and Germany, cut orders by 17.3 percent and 10.4 percent.

Imports by China were down more than 19 percent to 1.14 billion USD, while Japan’s imports decreased by 2.1 percent to 551.74 million USD.

Tran Quang Vinh, Chairman of the Phuc Yen Shoes Joint Stock Company, said import of feedstock had resumed, but, without buyers, production has dropped by 40-50 percent.

Most of the production is targeted at export markets, and so it is difficult to sell in the domestic market due to high prices, he said.

Diep Thanh Kiet, Vice Chairman of the Vietnam Leather, Footwear and Handbag Association (Lefaso), said the footwear and handbag industry has the capacity to produce over 1.1 billion pairs of shoes and nearly 400 million backpacks and handbags.

“The domestic market cannot absorb this number.”

The ministry forecast that the industry would continue to face difficulties until the end of the year, and relief depends on the US and EU’s ability to control the pandemic.

It should improve its supply chain performance to take advantage of the milestone Vietnam - EU Free Trade Agreement, which took effect on August 1, Kiet said.

The pandemic remains unpredictable, but if enterprises work hard to find partners and improve their competitiveness, they still have excellent prospects, experts said.

Businesses and experts said trade promotion activities and support from authorities should both be enhanced.

Last year exports were worth nearly 19 billion USD, with sports shoes accounting for a large share.

Dak Lak seeks to become investment magnet

The Central Highlands province of Dak Lak seeks to improve its business and investment climate to become an attractive investment destination, according to the provincial Department of Planning and Investment.

Dinh Xuan Ha, the department’s director, said Dak Lak would continue to move up in the annual Provincial Competitiveness Index (PCI) rankings since it has assigned top priority to administrative reform.

It aims to diversify its investment promotion efforts, including by holding regular meetings and interactions with large domestic and international companies to apprise them about its potential and investment climate, he said.

Top priority is also being given to ensuring public order and creating conditions to ensure businesses feel secure about investing, he said.

The province would work with the Ministry of Foreign Affairs and other agencies to obtain up-to-date information on its partners, he said.

It would prioritise investment in high-tech agriculture and food processing industry, especially for exports, and industrial-scale livestock breeding, he added.

In June, the province licensed the first phase of the 360 billion VND (15.46 million USD) DHN high-tech livestock complex in Ea M’Droh commune, Cu M’gar district.

Vu Manh Hung, Chairman of Hung Nhon Group, its owner, said by the end of next year the complex is expected to supply high-quality pork that meets international standards to the domestic market.

“Dak Lak has favourable conditions to develop high-tech livestock farming,” he said.

The Hung Nhon Group has tied up with the De Heus Group of the Netherlands to build a hi-tech agricultural complex, expected to cost 1.5 trillion VND (64.49 million USD), in the province by 2025.

According to the department, the sectors most appealing to investors are wind and solar power, urban development, eco-tourism, resorts, and agricultural production.

Six large renewable energy plants have been completed and commissioned.

They include five solar farms with a total capacity of 190MW and costing 4.88 trillion VND, and a wind power plant with a capacity of 28.8MW built at a cost of 1.8 trillion VND.

Five other solar plants with a total capacity of 600MW are under construction. To cost 15.402 trillion VND, they are expected to begin commercial generation by the end of this year.

Recently the province has sought the Government’s approval for a 7.7 trillion VND wind power project in Cư M’gar District to be built by the AMI AC Renewables Dak Lak Company Ltd.

Ha said the province has achieved average annual economic growth of more than 8 percent since 2015.

The province has gradually shifted from agriculture, forestry and fishery to industry - construction, he said.

The PCI shows it improved many indicators in 2019, especially the index of business support services, to rank a creditable sixth out of the country’s 63 provinces and cities.

The province has an airport and a fairly well-developed road network, with many important national highways passing through it.

With nearly 540,000ha of agricultural lands, it grows a number of high-value commercial crops such as coffee, rubber and pepper.

Dak Lak has an abundant workforce of more than 900,000, including 400,000 well-trained workers.

BIDV, RoK federation promote cooperation

The Bank for Development and Investment of Vietnam (BIDV) and the KBIZ Vietnam Federation of Korea SMES (KBIZ-VN) signed a comprehensive cooperation agreement on September 17 in Hanoi.

Under the agreement, BIDV will provide favourable conditions for KBIZ-VN to participate in conferences and events held by the bank, thus attracting RoK businesses to invest in Vietnam. The Vietnamese bank will also work with KBIZ-VN in advertising banking products and services as well as developing new ones suitable for RoK firms.

In addition, the bank will provide legal consultancy service, merger and acquisition advice and connecting industrial parks and processing zones in Vietnam for KBIZ-VN’s members and partners.

KBIZ-VN will facilitate BIDV in meeting with RoK enterprises as well as providing information of its investors in Vietnam.

KBIZ-VN has nearly 3.55 million member companies worldwide. Of which, it connects more than 2,000 members out of some 8,000 RoK firms operating in Vietnam.

Vietnam steps up clean energy development: report

The year 2020 marks a major turning point in the energy industry of Vietnam, with clean energy strengthening its solid position and establishing itself as a profitable sector with significant potential for development, while coal-fired thermal power no longer holding the position as a favoured energy source in the country.

The information was shared in the Vietnam Energy Update Report 2020 recently released by the Centre of Media and Development Initiatives (MDI) under the Vietnam Union of Science and Technology Associations.

The report examines key features of the development of Vietnam’s energy sector from August 2019 to August 2020, with a focus on major power generation sources.

According to the report, clean energy - including solar and wind - is now making an increasingly important contribution to the national power system, and has become a priority in the country's energy development orientation. Gas thermal power, especially imported liquefied natural gas (LNG), is also a sector with potential, with the construction of the first two gas import terminals underway.

It also pointed out that at least six provinces across the country, including Quang Ninh - the country’s biggest coal mine, have proposed to have coal-fired power projects cancelled due to concerns about environmental pollution. Other localities such as Bac Lieu, Long An, Thua Thien-Hue, Ha Tinh and Tien Giang plan to replace planned coal-fired power plants with projects using imported LNG.

Vietnam has increased its nationally determined contribution (NDC) to join hands with the international community in efforts to reduce the impact of climate change.

Laurence Tubiana, CEO of the European Climate Foundation (ECF), former France’s Climate Change Ambassador and Special Representative for COP21, said that “over the past year, Vietnam has begun to mark itself out as a clean energy success story. Though there is some distance to go, its shift away from coal and rapid uptake of renewables make it one of the leaders in Southeast Asia, and an example to other nations looking to transition”.

“And Vietnam has much to gain, not just in terms of a safer climate and cleaner air, but in jobs and investment. Around the world, renewables are proving to be the smarter, cheaper option and it is inspiring to see Vietnam beginning to seize the opportunity,” she stated.

Dong Nai speeds up key transport projects

The southern province of Đồng Nai has mobilised all resources to speed up the progress of several major transport projects, including the Long Thành International Airport.

The projects are expected to drive sustainable economic growth not only for the province but also for the Southern Key Economic Region and the entire country.

The Long Thành International Airport, the country’s largest-ever project, will cost VNĐ336.63 trillion (US$14.53 billion). Its construction is divided into three phases. The first phase is expected to begin construction next year.

More than 5,000ha of land, which belongs to 18 organisations and nearly 5,300 households with a total of 15,000 people in Long Thành District, have to be cleared to build the airport. Another 364ha will be required to build the two resettlement sites.

The total cost for ground clearance, compensation and resettlement support is estimated at nearly VNĐ23 trillion ($992 million).

The province is set to give priority to site clearance on an area covering 1,810ha. It has paid compensation to the Đồng Nai Rubber Corporation to acquire 1,180ha owned by the company to build two resettlement areas in Lộc An and Bình Sơn communes in Long Thành District.

About 130ha has been acquired from 330 households with compensation payments of more than VNĐ625 billion ($27 million).

Compensation rates and detailed compensation plans are being considered for the remaining area and are expected to be handed over for construction of the airport in October. 

Most of the affected households have agreed to the compensation and support offered.

Phạm Văn Cư, a resident in Bình Sơn Commune, said he had received land compensation of VNĐ2.1 billion ($90,600) for his land of 4,200sq.m. He said the airport was necessary and agreed to the State’s policies on compensation rates and resettlement support.

“I'll deposit my money at a bank to earn interest while waiting for arrangement of resettlement housing or land lots,” he said.

At the end of April, the provincial People’s Committee gave priority to building technical infrastructure for the Lộc An - Bình Sơn resettlement area that will provide new living areas for 28,500 people.

The work includes drainage routes outside of the resettlement area's boundary and four main roads. The work is expected to be completed in October.

Construction of 12 subdivisions and electricity, lighting and water supply systems in the resettlement area will be completed in December.

Prime Minister Nguyễn Xuân Phúc in July asked the provincial authority to complete site clearance for all land for the airport project next year. To achieve the goal, compensation payments to all affected households must be completed by the end of this year.

Lê Văn Tiếp, deputy chairman of the provincial People’s Committee, said about 50 staff from departments and branches moved to Long Thành District last year to carry out the project’s land compensation and site clearance.

But the district authority asked for 40 additional staff due to the heavy workload. The additional staff moved to the district in August to help speed up the work.

A number of other key transport projects are being implemented in the province.

They include Bến Lức - Long Thành Expressway between Long An and Đồng Nai provinces, Phan Thiết - Dầu Giây Expressway between Bình Thuận and Đồng Nai provinces, Dầu Giây Intersection, and Ring Road No 3 linking HCM City with Ðồng Nai and Bình Dương provinces.

Phan Thiết - Dầu Giây Expressway is an eastern section of the North-South Expressway with a total length of nearly 100km. The section passing through Đồng Nai Province will extend more than 51km.

A total of 412ha area is needed to build the expressway. Land clearance tasks for the project construction are nearly completed.

The province has approved a compensation plan for the remaining 342 households and 10 organisations affected by the project in Xuân Lộc District. It aims to complete compensation payments and hand over all land for construction of the project in September.

In a related matter, a number of key transport projects in the province have been delayed due to land clearance problems.

The Dầu Giây Intersection project, for example, will reduce traffic congestion at the intersection between national highways No 1A and 20 in Thống Nhất District.  But it has been delayed for more than two years.

Delays were caused partly by slow compensation payments to affected households, causing compensation and resettlement support costs to increase by more than 5 times compared to the original financial plan.

The cost has increased to VNĐ130 billion ($5.6 million) from VNĐ22 billion ($950,000).

The province’s People’s Committee has proposed that the Government direct the Ministry of Transport to work with relevant units to arrange capital sources to complete the intersection project.

Cao Tiến Dũng, chairman of the committee, said the province has asked all departments, branches and localities to make efforts to speed up site clearance and disbursement of funds.

It has set up a steering committee to create relevant procedures related to the projects, as well as monthly checks and monitoring of the projects’ progress so that problems can be solved promptly.

The leaders of the province are working with relevant agencies weekly to urge progress in land acquisition, compensation, resettlement and vocational training for locals affected by the projects.

The committee has told local authorities to prepare for the construction of resettlement areas. If the districts need capital, they will be allowed to advance investment capital to build the resettlement areas. 

Ministers, local leaders urged to enhance public investment disbursement

Ministers and leaders of people’s committees of cities and provinces nationwide are required to remove difficulties and promote the disbursement of public investment as well as production, business and consumption.

Strict punishment will be given to violations and delays causing trouble for businesses and people.

These requirements are part of a recent document released by Prime Minister Nguyen Xuan Phuc, requesting ministries, sectors and localities to implement tasks and solutions to realise the Government’s “dual goals”, including preventing COVID-19 and ensuring socio-economic recovery, focusing on solving problems and supporting businesses facing difficulties, ensuring social security and people's lives.

Phuc urged ministries and localities to solve problems hampering the disbursement of public investment, especially ODA, creating a driving force for economic growth and jobs following the directions of the Party, National Assembly, Government, and Prime Minister.

Each ministry, branch and locality should focus on reviewing the list of public investment projects, grasping the implementation of each project to take concrete measures to speed up the progress.

“The direction of the Government is to disburse all planned capital in 2019 and previous years, remove difficulties and disburse the assigned ODA capital.”

In the document sent to relevant sectors, Phuc said the world and region were facing unprecedented difficulties and challenges due to the impact of the COVID-19 pandemic.

“All countries and our major partners have been heavily affected by the pandemic. Being a deeply integrated and open economy, many branches and fields of our economy are greatly impacted, especially in industry, trade, service and tourism,” Phuc said in the document.

“Thanks to drastic actions of the entire political system, business community and people, we have achieved initial results, however, difficulties and challenges remain. The tasks set out from now to the end of 2020 and early 2021 are very challenging,” he noted.

In order to achieve targets in 2020 and create a favourable premise for 2021, Phuc required ministers and leaders of cities and provinces to solve difficulties and promote production and business in every area and every enterprise, facilitating and reducing costs for people and businesses.

He wanted the ministers and leaders to review mechanisms, policies and legal provisions, revising them if necessary. In case of exceeding authority, they shall promptly report to the Government or the Prime Minister for direction. “We will not let barriers, inadequate mechanisms, policies and regulations remain.”

Leaders of ministries and localities have to provide specific solutions to help enterprises of all economic sectors, including State-owned enterprises, private enterprises, foreign direct investment (FDI) businesses, cooperatives and individual business households. They need to focus on enhancing investment projects and production and business development, paying attention to reviewing and creating favourable conditions in terms of land, credit, administrative procedures, human resources and related issues.

They need to promote consumption, with special attention paid to the domestic market of nearly 100 million people and taking appropriate and effective measures to maintain and develop export markets.

Ministries and localities have to step up the application of information technology and develop e-commerce and new business models suitable to the situation and development requirements of each branch, field or locality.

“Business forms and methods encouraging consumption, such as night-time economy, fairs, exhibitions and services must be strongly developed,” Phuc said.

“All have to conduct communication programmes and prepare necessary conditions to take advantage of opportunities of free trade agreements effectively, including the CPTPP and the EVFTA, in addition to stepping up the fight against smuggling and trade fraud.”

Phuc said amid the COVID-19 pandemic, ministers, heads of branches and leaders of the provincial people's committees need to continue directing effective implementation of policies to support workers and create jobs, ensuring social security, people's lives and tasks of cultural and social development, sustainable poverty reduction and environmental protection. 

Work starts on industrial cluster, automobile factory in Ha Nam

Construction on the Chau Giang Industrial Cluster, worth VND475 billion (US$21 million), kicked off on Friday in the northern province of Ha Nam.

Financed by Hong Duc Automobile Manufacturing Industry JSC, the cluster covers an area of nearly 40ha in Duy Tien Town. It aims to lure more investors to the province, thus speeding up provincial socio-economic development.

The same day, Hong Duc Automobile Manufacturing Industry JSC also started construction of its automobile assembly and manufacturing factory in the cluster.

The 22ha factory has a total investment capital of over VND2.27 trillion ($120 million). Its goal is to produce and assemble cars with up to nine seats, provide maintenance and repair services for automobiles and other motor vehicles.

The two projects are slated for completion in late 2021.

In his speech at the ground breaking ceremony, the provincial People's Committee chairman Nguyen Xuan Dong praised the two projects, saying that once operational, they will help meet the needs of the market and contribute to improving the province's industrial production value chain.

Dong said he hoped that the projects would also help attract supporting enterprises in the automobile industry to invest in the locality, contributing to the State budget and creating more jobs.

The chairman also requested relevant departments and sectors to create the most favourable conditions for the investor in implementing its projects. 

Better policies needed for independent power producer: experts

As private investment can play a significant role in increasing local power supply, experts have worked to find better mechanisms and policies to solve problems that have discouraged investment in the sector.

Deputy Minister of Industry and Trade Hoang Quoc Vuong told a seminar on independent power producers (IPPs) in Ha Noi on Friday that electricity demand will increase by 7.5- 8 per cent per year by 2030 when local production capacity nationwide should reach 526 billion kWh, meaning the total capacity of the national grid would reach 131,000 MW.

“The scale and proportion of private investors have been increasing. Specifically, by the end of 2019, the national power source structure had a capacity of 19,253 MW belonging to the private sector including power plants invested in the form of IPP and build-operate-transfer, accounting for 34.4 per cent," he said.

Vuong, also deputy head of the National Steering Committee for Electricity Development, added: “From now to 2030, an additional 75,100 MW of electricity will be needed each year.”

Calculating that the investment required for this power source is between US$7 billion and $8 billion per year, Vuong said there is great potential for investors to join the market.

According to the National Steering Committee for Electricity Development, IPP power projects that have been invested in and put into operation reached a total capacity of 16,400 MW, accounting for 28.3 per cent of the total capacity of the national grid.

Ngo Quoc Hoi, general director of An Khanh Thermal Power Joint Stock Company in Bac Giang Province, noted that competition in the sector wasn't always fair.

“Current policies are not uniform and unfair for the IPP as there are no policies to guarantee foreign currencies for them and no warranties to consume annual electricity output," he said.

Hoi told the seminar that when his firm asked for financial loans from about 20 banks and international organisations, they were asked if their power output was not guaranteed to be consumed by Vietnam Electricity (EVN), how they could repay the debt?

He suggested when drafting policy mechanisms, authorities should look to ensure equality between State, private sector and foreign investors instead of a situation where each type of investment has different policies as at present, as otherwise, banks will only lend to the investors with the best conditions.

Other experts told the seminar that the renewable energy market should be encouraged by lengthening the feed-in tariff (FIT) mechanism for another one or two years as many projects of that type had faced difficulties and delays due to the COVID-19 pandemic.

As of July, there were a total of 99 solar power plants operating with a total capacity of 5,053 MW and 11 wind power plants in operation with a total capacity of 429 MW, accounting for about 9.5 per cent of the total installed capacity of the system.

Hoang Tien Dung, Director of the Department of Electricity and Renewable Energy under the MoIT, said his department was working with the Institute of Energy to complete the Power Planning VIII and submit it to the MoIT by the end of this month.

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