Construction on three component projects of the North-South Expressway are scheduled to begin on September 30.

The components projects, covering the sections of Mai Son-National Highway 45, Vinh Hao-Phan Thiet, and Phan Thiet-Dau Giay, have been transformed from the public-private-partnership (PPP) form to the public investment model.

The expressway is set to have a total length of 1,811km, connecting Hanoi and the Mekong Delta city of Can Tho.

The eastern North-South expressway project includes 11 sub-projects with a total length of 654km running through 13 cities and provinces.

The 11 sub-projects are estimated to cost a total of 118 trillion VND (5.04 billion USD), including 55 trillion VND in State capital in three public investment projects, and counterpart funds for the other eight projects.

Once completed, it is expected to become a backbone connecting the entire country./.

Quarantine stepped up for fruit exports to US

Timothy Westbrook, an expert from the US Department of Agriculture (USDA)’s Animal and Plant Health Inspection Service (APHIS), has completed his COVID-19 quarantined period and began his task at the HCM City-based Son Son irradiation centre.

The expert arrived in Vietnam on September 2 to continue monitoring the treatment of fruit destined for his country, which recently underwent a hiatus due to COVID-19.

Speaking at a press conference on September 25, Westbrook said the US is now a crucial importer of Vietnam’s agricultural products.
Six Vietnamese fruits have been licensed to enter the market.

Facing difficulties from the coronavirus outbreak, the US recalled many of its staff in March, including those at the APHIS, in Vietnam. APHIS employees, however, are in charge of monitoring the handling of fruit at the Son Son irradiation centre - the only Vietnamese facility of this kind recognised by APHIS.

While waiting for US plant quarantine experts, the Plant Protection Department worked with the US Embassy in Vietnam, asking it to send a staff member to monitor fruit irradiation to maintain exports.

Data shows that Vietnam shipped over 6,000 tonnes of fruit to the US in 2019 and more than 3,000 tonnes in the first half of 2020, up slightly against the same period last year./.

HCM City’s SMEs assisted in digital transformation

The Ho Chi Minh City Union of Business Associations (HUBA) on September 24 launched a digital transformation programme for small and medium-sized enterprises (SMEs) to help improve their competitiveness.

The programme will be implemented in collaboration with the HCM City Computer Association and its members as a part of the city administration’s efforts to help SMEs gain better access to digital transformation solutions at reasonable costs.

Under the scheme, a committee for digital transformation under the management of the HUBA and a digital transformation training centre for enterprises will be established.

A portal will be built to support the digital transformation efforts, and a digital transformation solution package called Service Catalog will be established to support businesses.

The business association also introduced two basic digital transformation packages, the X-Starter (for start-ups) and X-SME (for SMEs), to be provided by reputed members of the computer association.

Speaking at a press conference held yesterday to announce the programme, HUBA Chairman Chu Tien Dung stressed the importance of good infrastructure and a legal framework for digital transformation.

Enterprises have recognised the importance of technologies in their operations and management, he said, adding that digital transformation will be the element to help them improve their competitive capacity and develop sustainably.

Lam Nguyen Hai Long, chairman of the computer association, said his association is working with other business groups in the city to publish a catalogue of IT products for enterprises’ digital transformation efforts.

He recommended that the city should provide free IT infrastructure for SMEs, and IT enterprises should offer digital transformation services at reduced prices.

The city should choose local enterprises to provide technologies for the programme because similar projects are already being carried out by IT enterprises in other provinces and cities, he added.

HCM City aims to become a smart city with e-government, e-enterprises and an electronic society by 2030, and set up a database by that year to assist with this.

By 2030 it also aims to push all public services online and provide them on multiple platforms, including mobile devices.

The e-economy is expected to account for 40 percent of the city’s economy.

The rate of individuals and enterprises having electronic accounts for payments will exceed 85 percent.

To obtain these goals, the city will strengthen communications and improve the awareness of its workers, the public and enterprises and create shared databases.

Experts said the digital transformation would affect all areas of the economy like health, education, transport, finance-banking, tourism, agriculture, logistics, environment, and energy./.

Thai economy expected to return to normal in next two years

Thailand’s economy is expected to return to normal within two years as the government has tried to mitigate the impact of the COVID-19 pandemic, said Thai Deputy Prime Minister Supattanapong Punmeechaow on September 25.

Speaking at a business seminar, Supattanapong said the government has used nearly 800 billion baht (25 billion USD) to support the economy.

The government will continue to introduce stimulus measures and plans subsidies under a "co-pay" scheme, rather than handouts, to help spur consumption, he said, without giving further details.

Deputy Secretary General of the National Economic and Social Development Council Danucha Pichayanan said in a bid to cope with the impact of the outbreak, the government has introduced a 1.9 trillion baht response package, including a 1 trillion baht borrowing plan.

The borrowing will lift the public debt to GDP ratio to 57 percent from about 47 percent in July, still within a 60 percent cap, he added.

The Asian Development Bank (ADB) forecast that the Thai economy could contract by 8 percent this year./.

Vietnam agrees to establish WTO informal working group on trade, gender

Vietnam and a number of member states of the World Trade Organisation (WTO) agreed to establish an informal working group on trade and gender during an online meeting at the level of ambassador and head of delegation in Bern, Switzerland, on September 23.

Ambassador Le Thi Tuyet Mai, Head of the Permanent Mission of Vietnam to the UN, WTO, and other international organisations in Geneva, affirmed that as a member of the Buenos Aires Declaration, Vietnam supports the establishment of the working group, which is aimed at improving women’s participation in international trade, especially amid the COVID-19 pandemic.

Vietnam always attaches great importance to incorporating gender equality into law building and enforcement, adopting inclusive development policies, facilitating women’s participation in business activities and international trade, and encouraging the development of female entrepreneurs, she said, adding that it wants to learn from other countries’ experience in such matters and stands ready to join in the working group’s activities.

Dorothy Tembo, Executive Director ad interim of the International Trade Centre and Co-Chair of the International Gender Champion’s Trade Impact Group, noted that the next step is how to expand the participation of WTO member states in the Buenos Aires Declaration, which now has 127 member nations.

Members of the Buenos Aires Declaration 2017 vowed to share their experience to encourage women’s participation in national and international economies through the WTO, via information exchanges and voluntary reporting during the WTO trade policy review process.

They also pledged to share best practices for conducting gender-based analysis of trade policies and for the monitoring of their effects, share methods and procedures for the collection of data and analysis of gender-focused statistics related to trade, work together with the WTO to remove barriers for women’s economic empowerment, and ensure that Aid for Trade supports tools and know-how for analysing, designing, and implementing more gender-responsive trade policies./.

Digitisation helps narrow urban-rural gap: experts

igital transformation provides a challenge and opportunity for sustainable agricultural and rural development and narrowing gaps between rural and urban areas, experts have said.

With the rise of the digital economy, big data, artificial intelligence and other applications, digital transformation and smart agriculture in rural areas are inevitable trends.

“In the period of 2021-2025, rural areas must comprehensively and sustainably develop adapting to new circumstances,” Nguyen Minh Tien, head of the Central Coordination Office for New-style Rural Area Building, said in a recent seminar on digital transformation in agriculture and rural development.

Prime Minister Nguyen Xuan Phuc had approved a national programme on digital transformation for eight priority areas, including agriculture, said Tien.

This was an important sector that needed to carry out digital transformation, he said.

“The Ministry of Agriculture and Rural Development has found that the trend of digital transformation is indispensable, so instead of passively letting localities implement it spontaneously, it is necessary to approach comprehensively and proactively via appropriate steps and roadmaps to build sustainable rural areas,” the official said.

The ministry has been carrying out digital transformation for 12 communes, of which Yen Hoa in Ninh Binh province and Vi Huong in Bac Kan province got positive results within a few weeks of implementation.

In Yen Hoa commune, digitalisation in health care service has helped save 27 million VND (1,165 USD) in two weeks. The money saved in one year is estimated at 600 million VND (25,900 USD) for local people.

Meanwhile, in Vi Huong commune, the turnover of agricultural products has greatly increased thanks to digital transformation via resources such as Zalo, Facebook and e-trading floors like Shopee.

Information and communication needs enhancing

Information and communication play an important role for poor people in remote areas, said To Duc, head of the National Office for National Hunger and Poverty Elimination.

Information and communication development must be linked with digital transformation, Duc said.

“It is necessary to set a goal of 80 to 100 percent of people in poor and remote areas having access to the internet and mobile phone network,” Duc said.

The office has set up measures to push digital transformation and build smart rural areas, he said.

Meanwhile, the Ministry of Information and Communication (MoIC) has said that if Vietnam wants to be a powerful country by 2045, it must first succeed in the 4.0 revolution, especially in digital transformation.

At present, digital transformation is mainly in health care, education, agriculture and tourism.

The MoIC has been striving to provide mobile and fixed broadband coverage to all villages and help all people use smartphones, and 80 percent of households have internet access by the end this year.

According to the Ministry of Agriculture and Rural Development, after 10 years of implementation, the National Target of New Rural Development had gained significant achievements.

Sixty percent of total communes and 22.7 percent of districts nationwide have reached new rural criteria, while the living standards of rural people have considerably increased.

“In addition to the great achievements in new rural development over the past 10 years, Vietnam’s rural areas are currently facing many traditional and non-traditional challenges,” said Tien.

In 2021-2025, the agriculture sector and the new rural development programme will face great challenges.

The first issue is climate change. According to experts, Vietnam is one of the five countries most affected by climate change.

Second is the challenge due to diseases in plants and animals, such as the COVID-19 pandemic.

The diseases have changed the whole production chain, causing breaks in many production chains and changes in habits of both producers and consumers.

Third is the challenge of global competition.

In the process of international integration, all products, including agricultural produce, cannot only compete in the domestic market but also compete with international corporations.

With these shortcomings, the Party and Government have determined that rural areas must develop to adapt to the new context in 2021-2025.

“The gap between urban and rural areas is further widening so it requires rural areas to make changes to adapt to the circumstances,” Tien said.

“Information, science and technology application, especially digital technology is considered the preeminent solution to help narrow the gap and improve quality of rural people’s lives,” he added./.

Corporate governance in a changing society

Sustainable development requires that businesses develop a corporate culture and have good governance, a workshop in Hanoi on September 25 heard.

Themed “Corporate governance in a changing society”, the workshop was part of the Vietnam Corporate Sustainability Forum 2020.

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) and Chairman of the Vietnam Business Council for Sustainable Development (VBCSD), which jointly held the workshop, cited the World Bank as reporting that Vietnam is one of the 10 countries hardest hit by climate change and also one of the five worst plastic waste polluters.

The country will lose more than 5 percent of GDP due to air pollution and 3.5 percent as a result of water pollution, he warned.

Notably, shrinking natural resources, energy over-consumption, pollution, soil degradation, and climate change have seriously impacted the future of the national economy, he pointed out.

VBCSD Vice Chairwoman Ha Thi Thu Thanh, who is also Chairwoman of the Board at Deloitte Vietnam, suggested businesses thoroughly perform their role in economic development, social interaction, and environmental protection towards sustainable development.

Binu Jacob, Managing Director of Nestlé Vietnam, said enterprises with sustainable development need to employ suitable structures that can withstand market instability and turmoil.

People should be placed at the centre, he said, suggesting businesses continuously receive updates in order to respond to issues promptly./.

Conference discusses business-investment opportunities for EU firms

More than 100 multinational groups from the EU operating in Singapore took part in an online conference on September 25 to gain insights into new investment and business opportunities in Vietnam following the EU-Vietnam Free Trade Agreement (EVFTA) taking effect.

In her opening remarks, Vietnamese Ambassador to Singapore Tao Thi Thanh Huong spoke of Vietnam’s economic achievements, such as 7 percent GDP growth, low inflation, an improved sustainable growth index, and reduced poverty, among others.

She emphasised the thriving nature of economic ties between the country and the EU. Bilateral trade hit 54.6 billion USD in 2019, and the EU is currently Vietnam’s 5th-largest foreign investor, with over 2,200 projects worth 24.67 billion USD.

Huong noted that the EVFTA are opening up space for bilateral trade to grow further, while EU companies now have favourable conditions to conduct business in Vietnam and find a gateway to the 655 million people throughout Southeast Asia.

The conference provided information on Vietnam’s business climate, new economic policies, and preparations for the deal now it has taken effect. It also discussed a number of topics of interest to EU firms, like the digital economy and e-commerce, technology, and technological solutions in production, and ways to approach the Vietnamese market.

It was co-organised by the Vietnam Embassy and Trade Office in Singapore, the EU-ASEAN Business Council, the Singapore International Chamber of Commerce, and the European Chamber of Commerce in Vietnam./.

Russia importers display Vietnamese products at WorldFoor Moscow 2020

Vietnamese tea, coffee and coconut products are among those on display at the international trade fair WorldFood Moscow 2020 underway in the Russian capital from September 22 – 25.

This year, the products are displayed by two Russian importers since no Vietnamese firms are able to attend the event due to travel restrictions triggered by COVID-19.

Among the Russian exhibitors is Vietcoco Co., Ltd. based in Krasnoyarsk city, eastern Siberia. The company imports organic coconut products from Vietnam to distribute to local retailers, Director-General Anton Kudryatsev told a Vietnam News Agency correspondent in Russia.

The WorldFood Moscow 2020 is expected to provide an opportunity for the firm to seek partners in the retailing sector in Moscow, he said, adding that Vietnam is one of the world’s leading exporters of coconut and the product’s presence in Russia not only helps raise bilateral trade between the two countries but also boost its exports to the Commonwealth of Independent States (SNG) market.

The other is Sense Asia which sells tea and coffee grown in Vietnam under the brand of “Teapins” and “Mr.Viet,” respectively. The products are now available across Russia.

This year’s fair is attended by only ten countries due to the novel coronavirus./.

Webinar discusses innovation promotion for Vietnam’s economic development

An online discussion was held on September 24 as part of the Asia Berlin Summit 2020, focusing on promoting startup and innovation ecosystems in Vietnam.

The event, co-organised by the Vietnamese Embassy in Germany and the Vietnam Germany Innovation Network, featured speakers from the Ministry of Science and Technology and the Ministry of Information and Communications of Vietnam, the German software corporation SAP, FPT Germany, and the two countries’ startup companies. It was also attended by some 100 participants online.

Vietnamese Ambassador Nguyen Minh Vu said the country considers promoting science-technology and innovation as one of the pillars in developing and modernising its economy.

It boasts considerable advantages for stepping up innovation, including more than 3,000 startups and 24 business incubators and growing investment in startups in recent years. The tech workforce is another strength as the country owns over 400,000 people trained in ICT and 50,000 graduates in this sector every year.

A number of major global tech firms have also been planning to operate in Vietnam, he added.

Vietnam-Germany relations have been deepened in various fields, and cooperation in science-technology and innovation is viewed as one of the prioritised areas.

Thanks to the EU-Vietnam Free Trade Agreement (EVFTA) already taking effect and the EU-Vietnam Investment Protection Agreement (EVIPA) awaiting ratification, trade and investment ties between Vietnam and Germany, as well as the EU as a whole, are expected to increase strongly, including in science-technology and innovation.

At the discussion, representatives from the two Vietnamese ministries updated participants on the country’s innovation and startup ecosystems, policies and programmes supporting innovation and IT capacity development, along with cooperation with important partners, including Germany and the EU, to turn it into a leading startup and innovation hub in Asia.

Meanwhile, representatives from SAP and FPT Germany shared experience in developing partnership between Vietnamese and German enterprises, and the firms’ support for startups and businesses in Vietnam.

Apart from proposing some recommendations to Vietnamese authorities to improve the business climate in the IT sector, they also gave many useful advice to Vietnamese businesses and startups wishing to cooperate with German and European companies./.

Mekong Delta provinces propose three route options for expressway

Mekong Delta authorities have proposed three route options for building the 150-km long Cần Thơ - Cà Mau expressway.

Deputy Minister of Transport Nguyễn Nhật this week met with leaders from the southern provinces of Cần Thơ, Hậu Giang, Sóc Trăng, Bạc Liêu and Cà Mau to discuss the expressway proposal.

At the meeting, a representative of the project’s consulting unit suggested building the expressway between Cần Thơ City and Cà Mau Province. It would have four lanes, with a maximum speed of 100km per hour.

Under the scheme, three route plans were proposed.

While the first plan calls for an upgrade of Quản Lộ - Phụng Hiệp National Highway and construction of two more lanes in the opposite direction, the second plan requires construction of an expressway parallel to the Phụng Hiệp National Highway, and the third asks for a completely new route.

The vice chairman of the Cần Thơ City People’s Committee, Dương Tấn Hiển, said that options one and two were consistent with Mekong Delta transport planning approved by the Prime Minister.

Option two would further promote connectivity among the main cities of Hậu Giang, Sóc Trăng and Bạc Liêu provinces, which is important for economic development of the entire region.

The vice chairman of the Sóc Trăng Province's People’s Committee, Lâm Hoàng Nghiệp, and leaders from Bạc Liêu and Cà Mau provinces agreed with Hiển on option two, worth VNĐ61,000 billion (US$2.6 million).

They added that option one would potentially pose some technical problems, and option three would make it inconvenient for Sóc Trăng and Bạc Liêu provinces to stay connected with the expressway.

Earlier, Prime Minister approved building the Cần Thơ - Cà Mau expressway between 2021 and 2025. The entire expressway would be divided into two sections, one being Cần Thơ - Bạc Liêu and another Bạc Liêu - Cà Mau.

Speaking at the meeting, Nhật said the Ministry of Transport would collect feedback from localities and complete a report by the end of this month.

PM launches nationwide campaign to support businesses

The Prime Minister Nguyễn Xuân Phúc has issued Decision 1322/QĐ-TTg approving the national programme to support businesses to improve productivity and quality of products and goods in the 2021-30 period.

The decision, which was issued at the end of last month, is considered a new push to support enterprises amid the Fourth Industrial Revolution that strongly affects the competitiveness of enterprises.

In order to continue to strongly spread this activity, the national programme to support enterprises to improve their efficiency in the 2021-30 period sets the goal of supporting enterprises on the basis of applying solutions of standards, technology, management systems, and improvement tools, contributing to increase the proportion of the total factor productivity (TFP) to economic growth, and quality improvement, efficiency and competitiveness of the economy.

In this programme, the Government has set a number of specific targets for the coming period. Specifically, in the 2021-25 period, it is targeted to have the harmonisation rate of the national standard system with international standards and regional standards reach about 65 per cent.

It also targets training and certifying about 600 quality productivity experts at ministries, agencies, localities and enterprises.

In the 2026-2030 period, striving for the harmonisation rate to 70-75 per cent and training and certifying standards for about 1,000 experts, of which about 200 experts are certified with regional and international qualifications.

To realise these goals, the Prime Minister will strengthen communication, specifically, it is necessary to promote guidance on the application of management systems, productivity and quality improvement tools, especially supportive tools for smart production and services in enterprises.

Along with that, building and developing a database of good productivity practices to serve businesses and other related databases; paying attention to the honour and reward of collectives and individuals with high achievements in productivity and quality activities; and encouraging enterprises to participate in the National Quality Awards.

Taiwanese invest in garment, textile sectors in VN to take advantage of trade deals

Taiwanese enterprises have been increasingly investing in the garment and textile and footwear industries in recent years to capitalise on opportunities provided by free trade agreements that Viet Nam has signed.

Viet Nam has signed trade deals with a number of countries and blocs resulting in import tax cuts and waivers in those markets.

Wang Wen-yuan, chairman of Taiwan’s Chinese National Federation of Industries, said Viet Nam is an investment destination Taiwan targets in its development strategy, adding that it wants to invest in garment-textile, footwear and supporting industries.

Typically, Taiwanese investors invest in the country's key southern region due to advantages pertaining to the market and supporting industries

The Southern Key Economic Region comprising HCM City and the provinces of Binh Duong and Dong Nai has received FDI from Taiwanese firms in the textile and footwear sectors.

The Hung Nghiep Formosa Dong Nai Textile Limited Company was incorporated in 2001 and has investment of US$1.6 billion.

Viet Nam offers affordable, skilled labour and benefits from its FTAs, according to the company.

Polytex Far Eastern Viet Nam has a 99ha plant to manufacture feedstock like cotton and polyester yarn in Binh Duong's Bau Bang Industrial Zone.

Over $274 million has been invested in its first phase, and the total registered investment is $760 million.

Another Taiwanese giant, Tainan Spinning Company Ltd., has increased its investment in its Long Thai Tu Spinning Factory at the Long Khanh Industrial Zone in Dong Nai to $100 million.

The EU-Viet Nam Free Trade Agreement (EVFTA) that took effect on August 1 reduces import taxes on Viet Nam's garment exports by more than 70 percentage points.

Vietnamese footwear and textile and apparel enterprises will benefit significantly from the EVFTA because of the tariff cuts, according to Bao Viet Securities Joint Stock Company.

With most other countries that export textiles and garments to the EU not having a trade deal with the bloc, the EVFTA is a great opportunity for Viet Nam if companies meet origin requirements, it added.

PM launches nationwide campaign to support businesses

The Prime Minister Nguyen Xuan Phuc has issued Decision 1322/QD-TTg approving the national programme to support businesses to improve productivity and quality of products and goods in the 2021-30 period.

The decision, which was issued at the end of last month, is considered a new push to support enterprises amid the Fourth Industrial Revolution that strongly affects the competitiveness of enterprises.

In order to continue to strongly spread this activity, the national programme to support enterprises to improve their efficiency in the 2021-30 period sets the goal of supporting enterprises on the basis of applying solutions of standards, technology, management systems, and improvement tools, contributing to increase the proportion of the total factor productivity (TFP) to economic growth, and quality improvement, efficiency and competitiveness of the economy.

In this programme, the Government has set a number of specific targets for the coming period. Specifically, in the 2021-25 period, it is targeted to have the harmonisation rate of the national standard system with international standards and regional standards reach about 65 per cent.

It also targets training and certifying about 600 quality productivity experts at ministries, agencies, localities and enterprises.

In the 2026-2030 period, striving for the harmonisation rate to 70-75 per cent and training and certifying standards for about 1,000 experts, of which about 200 experts are certified with regional and international qualifications.

To realise these goals, the Prime Minister will strengthen communication, specifically, it is necessary to promote guidance on the application of management systems, productivity and quality improvement tools, especially supportive tools for smart production and services in enterprises.

Along with that, building and developing a database of good productivity practices to serve businesses and other related databases; paying attention to the honour and reward of collectives and individuals with high achievements in productivity and quality activities; and encouraging enterprises to participate in the National Quality Awards.

Circular economy critical for green and sustainable growth

Vietnamese businesses should employ circular economy models to work towards a decade of green and sustainable growth, Chairman of the Viet Nam Chamber of Commerce and Industry (VCCI) Vu Tien Loc has said.

Loc was speaking at an event on Thursday ahead of the Viet Nam Corporate Sustainability Forum (VCSF) in November.

He said the transition to a circular economy would help protect the source of raw materials, improve climate change adaptability, promote innovations, enhance competitiveness and create new jobs.

Encouraging Vietnamese businesses to apply circular economy models would be one of the priorities of the VCCI’s Viet Nam Business Council for Sustainable Development (VBCSD), Loc stressed.

In early 2018, the VBCSD launched an initiative to support businesses to implement the circular economy in Viet Nam, part of efforts to realise the National Action Plan to implement the 2030 agenda for sustainable development goals, he said.

Loc said that promoting the circular economy was critical for a decade of green and sustainable growth.

At the event, Phan Thu Hang, Chairwoman of the Vietnam Green Building Council, spoke about circular principles in green building and construction.

Hang said that in this industry, the circular economy meant extending product lifetime, reducing material losses, recirculating materials and products, preventing downcycling and substituting CO2-intensive materials with those of lower emissions.

“Circularity is a part of the solution for carbon emissions and biodiversity,” Hang said.

Hang added that there were business opportunities to be found in the transition from a linear to a circular economy, including recycling solutions and increasing recycled content, alternative raw materials and packaging.

According to Fausto Tazzi, Vice Chairman of Packaging Recycling Organisation Viet Nam (Pro), CEO of La Vie – Nestle Waters Vietnam, recycling is a game-changer.

“We need to come together and work hand in hand for a clean, green and beautiful Viet Nam," he said.

“Used packaging is not waste but a resource, - with habit change, technology and circular economy ecosystem, it can be put to new use," he added.

Also within the framework of VCSF, experts on Friday discussed the importance of corporate governance in a changing society.

The VCSF is one of the most important annual events by VBCSD to promote dialogue on sustainable development.

This year’s forum will focus on lessons leant from the COVID-19 pandemic as well as core issues which need to be addressed for inclusive and permanent social-economic growth. The key issues include sustainable corporate governance, accelerating circular economy and enhancing public-private partnership for sustainable growth.

Americas among VN's largest trade partners despite of COVID-19

The Americas remained one of Viet Nam’s largest trade partners despite the adverse effect on commerce caused by the COVID-19 pandemic, heard participants at a conference, organised by the Ministry of Industry and Trade (MoIT), aimed at connecting Vietnamese firms with trade partners in American countries in Ha Noi yesterday.

According to the ministry, two-way trade between Viet Nam and American countries during the first eight months of the year increased 11.8 per cent from the same period last year to US$69.3 billion with the Southeast Asian country’s export increased 15.9 per cent.

Trade between Viet Nam and the Americas have grown 350 per cent in the last decade, from a modest $28 billion in 2011 to $96.8 billion in 2019. Last year, Viet Nam also spent $23.2 billion in the import of goods and services from the continent.

A number of free trade agreements that came into effect in recent time have helped to fuel rapid trade growth such as the bilateral trade agreements between Viet Nam and the US, Chile and Cuba, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which include Canada, Peru and Mexico.

Viet Nam has seen some of the fastest-growing trade ties with the continent in recent years, said deputy-minister of trade and industry Do Thang Hai.

By the end of August 2020, 28 American countries held stakes in 1.530 projects across Viet Nam with a total investment value of $22.8 billion. Viet Nam’s successful campaign in containing the COVID-19 pandemic has made it an attractive destination for American investors, especially against a backdrop of increased trade tension between the US and China.

The conference’s objective was to provide domestic firms with the most up-to-date information regarding changes in economic policies and commerce in American markets. The MoIT urged Vietnamese firms to conduct additional studies on said markets and their demand for Vietnamese products to identify trade opportunities as well as potential issues and challenges.

HCM City rolls out digital transformation programme to enhance small firms’ competitiveness

The HCM City Business Association on Sept 24 unveiled a digital transformation programme for small and medium-sized enterprises (SMEs) to help improve their competitiveness.

The programme will be implemented in collaboration with the HCM City Computer Association and its members as a part of the city government’s efforts to help SMEs gain better access to digital transformation solutions at reasonable costs.

Under the scheme, a committee for digital transformation under the management of the HCM City Business Association and a digital transformation training centre for enterprises will be established.

A portal will be built to support the digital transformation efforts, and a digital transformation solution package called Service Catalog will be established to support businesses.

The business association also introduced two basic digital transformation packages, the X-Starter (for start-ups) and X-SME (for SMEs), to be provided by reputed members of the computer association.

Speaking at a press conference held yesterday to announce the programme, Chu Tien Dung, chairman of the HCM City Union of Business Associations, stressed the importance of good infrastructure and a legal framework for digital transformation.

“Enterprises have recognised the importance of technologies in their operations and management. Digital transformation will be the element to help them improve their competitive capacity and develop sustainably.”

“The association is willing to support and assist enterprises in undertaking digital transformation if they face any hurdles in implementation,” he told Viet Nam News.

Lam Nguyen Hai Long, chairman of the computer association, said his association is working with other business groups in the city to publish a catalogue of IT products for enterprises’ digital transformation efforts.

He recommended that the city should provide free IT infrastructure for SMEs, and IT enterprises should offer digital transformation services at reduced prices.

The city should choose local enterprises to provide technologies for the programme because similar projects are already being carried out by IT enterprises in other provinces and cities, he added.

HCM City aims to become a smart city with e-government, e-enterprises and an electronic society by 2030, and set up a database by that year to assist with this.

By 2030 it also aims to push all public services online and provide them on multiple platforms, including mobile devices.

The e-economy is expected to account for 40 per cent of the city’s economy.

The rate of individuals and enterprises having electronic accounts for payments will exceed 85 per cent.

To obtain these goals, the city will strengthen communications and improve the awareness of its workers, the public and enterprises and create shared databases.

Experts said the digital transformation would affect all areas of the economy like health, education, transport, finance-banking, tourism, agriculture, logistics, environment, and energy.

Taiwanese banks look to benefit from investment shift to Viet Nam

The Megabank of Taiwan has applied for permission to open a branch in the northern port city of Hai Phong, according to the Dau Tu (Investment Review) newspaper.

If licensed, Megabank will be the first Taiwanese bank to have a branch in Hai Phong. Explaining why they chose the city, the bank said Hai Phong is the second largest industrial hub in northern Viet Nam, and it houses the largest sea port in the region as well as an international airport.

A number of big Taiwanese corporation have invested there, such as Pegatron, USI and Lite-ON.

The newspaper said apart from Megabank, other banks seeking to establish a presence in northern Viet Nam include Taishin, Cathay and CTBC, citing sources from the Financial Supervisory Commission of Taiwan.

Taiwanese banks were among the first to arrive in Viet Nam, along with the wave of Taiwanese investment in the country in the 1990s. At that time, they mostly operated in HCM City to serve thousands of Taiwanese-invested enterprises in southern localities.

China's Taiwan has the largest number of banking branches and representative offices in Viet Nam, with the presence of over 10 banks. Taiwanese investors are running 2,764 FDI projects in Viet Nam.

Banking experts said Taiwanese banks are expanding their presence abroad, focusing on the four ASEAN countries of Viet Nam, Indonesia, Myanmar and Cambodia, to meet the needs of an investment shift by Taiwanese technology and electronics enterprises.

HDBank issues convertible bonds to strategic partner Germany’s DEG

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - HoSE: HDB) signed an agreement to issue convertible bonds and enter into a strategic tie-up with DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT MBH (DEG) in HCM City on Friday.

DEG will invest in convertible bonds issued by HDBank.

The two parties will have a strategic partnership for developing products, services and finance packages for German businesses in Viet Nam and Vietnamese exporters to Germany and Europe.

DEG is a development finance institution owned by German state-owned development bank KWF and is one of Europe’s15 leading development finance institutions.

It is currently present in 19 countries, managing a portfolio of around 8.6 billion euro in private groups around the world. In Viet Nam, DEG has been active for almost 20 years with a portfolio of 220 million euro (US$256.2 million).

Jochen Steinbuch, its regional manager in the Asia Pacific, said: “Viet Nam is seen as a bright spot for foreign investors as the economy is believed to be least affected by Covid-19.

“Thanks to a young population with an expanding middle class, demand for banking and financial services is high.

“HDBank is one of the leading joint stock banks in Viet Nam, always maintaining a good and sustainable growth rate.

“HDBank's financial health, asset quality and business performance are among the best in the industry. Notably its NPL ratio usually stands around 1 per cent and ROE is over 20 per cent. We have great confidence in the development of the bank in the future.”

The agreement opens a new chapter in the long-term co-operation between German and Vietnamese businesses, especially in the context that the EU-Viet Nam Free Trade Agreement took effect recently.

Improving sentiment lifts emerging East Asian bonds

The improvement of global investment sentiment and financial conditions has provided a much-needed lift for local currency bond markets in emerging East Asia, including Viet Nam, despite risks from the COVID-19 pandemic, according to the latest issue of the Asian Development Bank’s (ADB) Asia Bond Monitor.

Government bond yields in most emerging East Asian markets declined from June 15 to September 11 on the back of accommodative monetary policies and weakening growth across the region. Meanwhile, improving sentiment has led to gains in equity markets and a narrowing of credit spreads, with most regional currencies strengthening against the dollar.

Local currency bonds outstanding in emerging East Asia reached US$17.2 trillion at the end of June, up 5 per cent from March this year and 15.5 per cent higher than in June 2019.

The report showed that Viet Nam’s local currency bond market decreased by 1.7 per cent at the end of June this year to reach $58.2 billion, after posting 10.4 per cent quarterly growth in the first quarter. This is mainly due to lower outstanding debt in the Government area, even as the corporate bond stock increased.

Viet Nam’s Government bond segment contracted 7.8 per cent quarter-on-quarter at the end of June to reach $50.1 billion, accounting for 86.2 per cent of the country’s total bond stock. Corporate bonds, however, surged by 65.6 per cent in the second quarter compared to the first, reaching $8 billion.

On an annual basis, growth in corporate bonds stood at 76 per cent at the end of June this year.

ADB Chief Economist Yasuyuki Sawada said governments in the region have been agile in dealing with the impact of the COVID-19 pandemic through a wide range of policy responses, including monetary easing and fiscal stimulus.

“It is crucial that governments and central banks maintain accommodative monetary policy stances and ensure sufficient liquidity to support financial stability and economic recovery,” Sawada said.

Emerging East Asia consists of China, Hong Kong of China, Indonesia, the South Korea, Malaysia, the Philippines, Singapore, Thailand and Viet Nam.

As a share of regional gross domestic product, emerging East Asia’s local currency bonds outstanding climbed to 91.6 per cent at the end of June, from 87.8 per cent in March, mainly due to the large amount of funding needed to fight the pandemic and its impact.

Bond issuance in the region hit $2 trillion in the second quarter, up by 21.3 per cent from the first quarter this year. China remained home to the region’s largest bond market, accounting for 76.6 per cent of the region’s total bond stock as of the end of June.

The region’s government bonds outstanding reached $10.5 trillion at the end of June and made up 60.8 per cent of the region’s aggregate bond stock. Corporate bonds, meanwhile, totalled $6.7 trillion.

The ADB said that a worsening and prolonged COVID-19 pandemic that could dent the region’s economic outlook. Developing Asia will contract by 0.7 per cent this year, its first contraction in six decades. Growth will rebound to 6.8 per cent in 2021.

Other risk factors include potential social unrest due to the pandemic’s economic impact, as well as continuing tensions between China and the US, ADB experts said. – VNSViet Nam’s Government bond segment contracted 7.8 per cent quarter-on-quarter at the end of June to reach $50.1 billion, accounting for 86.2 per cent of the country’s total bond stock. – Photo baodautu.vn

The improvement of global investment sentiment and financial conditions has provided a much-needed lift for local currency bond markets in emerging East Asia, including Viet Nam, despite risks from the COVID-19 pandemic, according to the latest issue of the Asian Development Bank’s (ADB) Asia Bond Monitor.

Government bond yields in most emerging East Asian markets declined from June 15 to September 11 on the back of accommodative monetary policies and weakening growth across the region. Meanwhile, improving sentiment has led to gains in equity markets and a narrowing of credit spreads, with most regional currencies strengthening against the dollar.

Local currency bonds outstanding in emerging East Asia reached US$17.2 trillion at the end of June, up 5 per cent from March this year and 15.5 per cent higher than in June 2019.

The report showed that Viet Nam’s local currency bond market decreased by 1.7 per cent at the end of June this year to reach $58.2 billion, after posting 10.4 per cent quarterly growth in the first quarter. This is mainly due to lower outstanding debt in the Government area, even as the corporate bond stock increased.

Viet Nam’s Government bond segment contracted 7.8 per cent quarter-on-quarter at the end of June to reach $50.1 billion, accounting for 86.2 per cent of the country’s total bond stock. Corporate bonds, however, surged by 65.6 per cent in the second quarter compared to the first, reaching $8 billion.

On an annual basis, growth in corporate bonds stood at 76 per cent at the end of June this year.

ADB Chief Economist Yasuyuki Sawada said governments in the region have been agile in dealing with the impact of the COVID-19 pandemic through a wide range of policy responses, including monetary easing and fiscal stimulus.

“It is crucial that governments and central banks maintain accommodative monetary policy stances and ensure sufficient liquidity to support financial stability and economic recovery,” Sawada said.

Emerging East Asia consists of China, Hong Kong of China, Indonesia, the South Korea, Malaysia, the Philippines, Singapore, Thailand and Viet Nam.

As a share of regional gross domestic product, emerging East Asia’s local currency bonds outstanding climbed to 91.6 per cent at the end of June, from 87.8 per cent in March, mainly due to the large amount of funding needed to fight the pandemic and its impact.

Bond issuance in the region hit $2 trillion in the second quarter, up by 21.3 per cent from the first quarter this year. China remained home to the region’s largest bond market, accounting for 76.6 per cent of the region’s total bond stock as of the end of June.

The region’s government bonds outstanding reached $10.5 trillion at the end of June and made up 60.8 per cent of the region’s aggregate bond stock. Corporate bonds, meanwhile, totalled $6.7 trillion.

The ADB said that a worsening and prolonged COVID-19 pandemic that could dent the region’s economic outlook. Developing Asia will contract by 0.7 per cent this year, its first contraction in six decades. Growth will rebound to 6.8 per cent in 2021.

Other risk factors include potential social unrest due to the pandemic’s economic impact, as well as continuing tensions between China and the US, ADB experts said.

SCIC fails to sell State capital in firms

Recent attempts by the State Capital Investment Corporation (SCIC) to sell State capital have been unsuccessful as no investors showed interest in buying shares.

The most recent deal was the SCIC’s plan to auction 2 million shares or 73 per cent stake at Vinh Long Real Estate JSC on September 9.

The auction was not held because only one investor signed up for the shares, which was not enough for SCIC to launch the sale.

The SCIC in early August put 46 million shares of tech firm FPT Corp up for sale, hoping to receive at least VND2.27 trillion (US$97.3 million) or VND49,400 ($2.12) per share.

FPT shares (HoSE: FPT) in early August moved between VND46,000 and VND47,000 apiece, quite close to the price asked by the SCIC.

Since the company has run out of room for more foreign capital, the deal was suitable for Vietnamese investors only.

The SCIC failed to offload FPT shares and analysts attributed the failure to the high asking price, which was considered too much for domestic investors.

The same month, the SCIC offered 17.8 million shares at An Giang Food Import-Export JSC for VND18,900 apiece, making for a total value of VND337.4 billion.

Similar to FPT, the auction of An Giang Food Import-Export JSC shares was not completed because no investors registered.

The company's shares almost doubled to VND11,900 per share on August 17 from VND6,000 per share on August 7. They then slid towards VND8,500 per share on Thursday.

Other large-cap companies whose shares are on the must-sell list of the SCIC this year include Bao Minh Insurance Corporation, pharmaceutical firm Traphaco, Viet Nam Steel Corporation and Viet Nam National Textile and Garment Group.

According to analysts, the key reason for the failure to offload State capital in local firms is the COVID-19 pandemic, which has had a highly negative impact on the economy and restricted potential investors from buying those companies’ shares.

In addition, shares were sold in a package, meaning the buyer must pay for all the shares offered without other options. Some companies were large so their shares were highly valued, making it difficult for investors to buy all the shares offered by the SCIC.

Nguyen Duc Chi, chairman of the SCIC’s board of members, said that the mechanism set by the Government is sometimes the main reason for the deal failure.

Though the rules are made to ensure State assets will not be lost, they do not match market demand, he said.

Vietnamese economy likely to be second best performer in Asia-Pacific region this year

The nation is likely to be the second best performer in terms of economic recovery in the Asia-Pacific region, according to a report recently released by the S&P Global Ratings, which revised up GDP predictions of regional countries this year following the revival of trade and consumption.

The credit rating agency based in the United States forecast that the nation’s GDP will pick up by 1.9% this year, and a further 11.2% next year. China is anticipated to see the highest growth, which was raised to 2.1% in comparison to the previous figure of 1.2%. In addition, its forecast for 2021 was cut to 6.9% from 7.4%.

The S&P Global Ratings expect the Philippine’s economy to suffer a dramatic drop of 9.5% this year, representing the largest fall throughout the region, before enjoying a recovery involving 9.6% growth next year. Elsewhere, India is predicted to be the second worst performer with a 9% contraction expected to hit this year.

Overall, the regional economy is predicted to fall by 2% this year, while next year’s rebound will see 6.9% growth.

According to the rating agency, employment is set to play a decisive factor in the region’s pace of recovery. In the majority of cases, the employment rate will return to pre-pandemic levels by 2022 at the earliest, it said. Moreover, the Asia-Pacific region’s economic growth will likely be stimulated by trade and production, although a full recovery would also require improvements in the service sector.

Deputy PM attends groundbreaking ceremony of Becamex VSIP Binh Dinh industrial zone
 
Deputy Prime Minister Truong Hoa Binh attended the groundbreaking ceremony of Becamex VSIP Binh Dinh industrial, urban and service zone on Sunday in the southern province of Binh Dinh.

The project, worth some VND3.3 trillion (US$142.1 million), is being developed and operated by Becamex Binh Dinh JSC, covering ​​1,425 hectares in Nhon Hoi economic zone in the province's Quy Nhon City.

Becamex VSIP Binh Dinh industrial zone is expected to attract about $2 billion after going into operation and to create jobs for 120,000-150,000 local workers and those in neighbouring areas, contributing to improving Binh Dinh’s economic competitiveness and social infrastructure.

Speaking at the ceremony, Deputy Prime Minister Binh said the Becamex VSIP Binh Dinh industrial zone project was a key infrastructure projects in Binh Dinh, promoting the development of industries and services.

Provincial leaders must co-ordinate with investors to build good-quality construction works, paying attention to attracting prestigious investors with high-tech and high added value projects, he said.

On the sidelines of the ceremony, an inauguration ceremony of the route from Nhon Hoi economic zone to Phu Cat Airport in the province was also held.

The road route project has a total length of 20km and total investment of VND1.83 trillion ($78.8 million). 

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