Both local and foreign investors have acquired massive profit from solar power farms in a short time thanks to the incentives on selling price and tax. 

Solar power developers make massive profit in short time (the Dau Tieng solar power farm)
Electricity of Vietnam (EVN) has issued a regulation on processes and procedures for commissioning and accepting Commercial Operation Date (COD) for a part or whole of power plant projects. Accordingly, the document will clarify requirements, procedures, and the responsibility of investors who register to get the COD.

Solar farms, which can start commercial operation before December 31, 2020 can enjoy incentives on selling price, according to the government’s Decree No.13/2020/QD-TTg about the new selling price for solar power.

Ngo Son Hai, deputy general director of EVN said that from now to the end of this year, 36 solar power plants are expected to come into commercial operation.

Last year, EVN approved the COD of 86 plants which started operation before June 31, 2019 to enjoy the incentive. These projects have a total capacity of 5,400MWp.

Thanks to these incentives, the top 10 solar power farms reported profit in the past year. Some of these projects came into operation less than six months ago.

Notably, the Dau Tieng solar farm in the southern province of Tay Ninh, which is the solar farm with the largest capacity in Southeast Asia, acquired VND807 billion ($35.1 million) in revenue and VND456 billion ($19.83 million) in after-tax profit.

The plant, which is a joint venture between Xuan Cau Co., Ltd. and B.Grimm Power Pcl., was inaugurated in the fourth quarter of last year only. If the plant reaches full capacity within a year, it will earn VND3.2 trillion ($139.13 million) in revenue and VND1.8 trillion ($78.26 million) in pre-tax profit.

Three projects (BIM 1, BIM 2, and BIM 3), which were invested by BIM Renewable Energy – a joint venture between BIM Group and AC Renewables – made VND703 billion ($30.57 million) in revenue and VND344 billion ($14.96 million) in after-tax profit after eight months of operation.

These cases are outstanding examples of the profits in solar power. In general, the gross profit margin of these projects fluctuated between 65 and 75 per cent. In addition, corporate income tax (CIT) is generally low in the sector. Notably, a CIT of 10 per cent is applicable to renewable energy producers for the first 15 years. Under certain conditions, CIT exemptions can also be provided.

Furthermore, investors may be exempted from land rent fees, depending on the policies of individual cites and provinces.

PM holds dialogue with Japanese firms

Prime Minister Nguyen Xuan Phuc on September 7 held a dialogue with Japanese economic groups and businesses interested in expanding investment in Vietnam.

Speaking at the event, PM Phuc expressed his delight that 15 Japanese firms want to expand investment in Vietnam, which will provide a source of encouragement for the nation to continue improving its business environment and create favourable conditions for firms to do successful business, including those from Japan.

The Vietnamese Government highly values the role of the Japanese business community, with serious and responsible investors who contribute to the State budget, pay attention to environment protection and care for workers, he said.

According to him, the Vietnamese legislature adopted the Law on Investment, the amended Law on Enterprises, the Law on Public-Private Partnership with a number of incentives.

He stressed that with a population of nearly 100 million and being part of the dynamic 650 million-strong bloc of ASEAN, Vietnam is big enough for business plans and suitable for restructuring, shift of regional and global supply chains by foreign investors, especially those from Japan.

The leader informed that a working group in charge of promoting foreign investment cooperation led by a Deputy PM has been established in order to catch opportunities and deal with major investors’ suggestions.

The PM also directed resuming commercial flights to several safe destinations, including Japan.

Vietnam always welcomes Japanese firms to expand investment in infrastructure, energy, manufacturing, high-quality agriculture, information technology, smart urban development, financial and banking services, innovation-based start-up, as well as in joining the equitisation of State-owned enterprises as strategic partners, he said.

The Vietnamese Government, leaders of ministries, agencies and localities will stand side by side with the business community, offer all possible support to business operations to lift Vietnam-Japan ties to a greater height, he added.

Japanese Ambassador to Vietnam Yamada Takio, for his part, said over the past two decades, the Vietnamese economy has grown rapidly and ties between Vietnam and Japan have become deeper.

He added that while countries are battling with COVID-19 pandemic, Vietnam has soon recovered and directly benefited from diversified supply chains in the world.

According to him, a number of Japanese firms are considering a shift of production facilities to Vietnam. He hoped that Vietnam will catch this opportunity.

The ambassador also expressed his support for the resumption of flights between the two nations, thus improving disbursement for public projects at present, attracting more foreign investors to Vietnam, and improving Vietnam’s credit rankings.

He affirmed that Japan will continue assisting firms in investing in Vietnam as well as helping the Southeast Asian nation develop its economy in the new normal condition.

The Japanese firms also mentioned issues in investment cooperation with Vietnam such as human resources, support industry, research and development, among others.

The Vietnamese PM asked ministries, agencies and localities to promptly tackle difficulties faced by businesses and vowed all possible support to Japanese business operations.

Industrial production index in 8 months decreases

According to the General Statistics Office, for the first 8 months of the year, the industrial production index of the whole country increased by 2.2% over the same period last year, much lower than the 9.5% increase of the same period last year.  

In which, processing and manufacturing increased by 3.7%, electricity production and distribution increased by 2%, water supply, waste and wastewater management and treatment increased 2.9%; only the mining industry decreased by 7%.

The Covid-19 epidemic was still complicated globally, disrupting the supply chain of raw materials, and at the same time a rebound in a number of localities across the country since the end of July has greatly affected the recovery. recovery of industrial production. Some key industrial products in 8 months decreased over the same period last year, such as: Beer down 14.8%; crude oil exploitation decreased by 14%; cars by 12.5%; liquefied gas (LPG) decreased by 12.1%; mobile phones fell by 4.4%.

FDI creates jobs, but does it eliminate poverty?

A World Bank report shows that workers in sectors and regions receiving high foreign direct investment (FDI) flows are more likely to find formal employment and receive higher wages, however, there is limited evidence on the effects on income distribution.

According to the Global Investment Competitiveness Report 2019-2020 just released by the World Bank, many countries aim to attract foreign investment to help create jobs and reduce poverty. Yet the empirical evidence on the direct poverty-reducing effects of FDI is surprisingly scarce, especially in developing countries. At the same time, little is known about the aggregate effects of FDI on income distribution.

Analysis of unique firm-level and household data from Ethiopia, Vietnam, and Turkey shows that foreign-invested enterprises (FIEs) create new jobs and pay higher wages than domestic counterparts. Workers in sectors and regions with a higher presence of FIEs are generally more likely to be formally employed and receive higher wages.

FDI allowed more than 350,000 individuals to enter formal manufacturing employment in Vietnam between 2007 and 2016, and at least 40,000 in Turkey between 2009 and 2016. FDI also raised average manufacturing wages by 32 per cent in Ethiopia, 12 per cent in Vietnam, and 8 per cent in Turkey.

Consequently, FDI-induced wage increases helped reduce poverty in all three countries. Conservative estimates suggest that FDI contributed to lifting at least 35,000 individuals out of poverty in Ethiopia during 2009–2014; 24,000 in Vietnam (2007–2016); and 15,000 in Turkey (2009–2016).

Although the FDI-induced wage increases helped improve the incomes of the bottom 40 per cent of the population in all three countries, the effects across the entire income distribution differed significantly across countries. In Ethiopia, the benefits of FDI were more concentrated in the bottom 40 per cent, while in Vietnam, the welfare gains were more evenly distributed. Turkey had the greatest average wage benefits from FDI but also experienced increases in wage inequality.

However, FDI can also contribute to inequality by disproportionately benefiting better-educated and higher-skilled workers. When comparing regions and sectors with higher FDI activity with those with no FDI, higher-skilled workers experience large benefits while low-skilled workers may see no changes or even experience relative short-term declines in informal employment and wages.

The possible adverse effects of FDI on income inequality and lower-skilled workers emphasise the importance of a country’s labour market and education policies. Key policies include strengthening the absorptive capacity of domestic firms and workers (for example, through programmes that foster FDI-supplier linkages and employment training); supporting vulnerable communities (such as lower-skilled workers, youths, and women) with active jobs information, provision, and skills certification; and establishing programmes to stimulate labour mobility within the countries.

Taxation sector fulfils 60 percent of tax collection estimate

The taxation sector has collected over 752.6 trillion VND (32.45 billion USD) for the State budget, equivalent to 60 percent of the yearly estimate and 91.9 percent of the figure of the same period last year, the General Department of Taxation reported.

Of the amount, about 25.48 trillion VND came from crude oil, 72.4 percent of the estimate and 64.4 percent of the collection in the same period last year. Domestic revenues topped 727.13 trillion VND, or 59.6 percent of the estimate and 93.3 percent compared to the same period last year.

The department also said total tax debt in the first eight months of this year had increased compared to the amount at the end of 2019.

It attributed the rise to delayed payment of land use fees and land lease, as well as the government’s policy to reschedule tax payment for enterprises hit by the COVID-19 pandemic.

Another reason is that many tax payers have encountered difficulties in business and production activities under the impact of the pandemic.

Runway upgrade at Tan Son Nhat int’l airport to finish in early 2021

The Minister of Transport has urged contractors to complete the upgrade of four taxiways and one of HCM City’s Tân Sơn Nhất international airport’s two runways by the year-end to meet heightened travel demand for the Tet (Lunar New Year) holiday.

In June the ministry assigned the Cuu Long Corporation for Investment Development and Project Management of Infrastructure (CIPM) to implement the project.

According to CIPM, the runway upgrade project, which includes 13 bidding packages, has completed 41 per cent of its work. 

The runway is expected to be completed in November and will be tested for 45 days before opening in early 2021, as planned, according to CIPM.

The upgrade work began on the runway and four taxiways on June 30.

Tan Son Nhat airport has two parallel runways, 3.8km long and 45m wide each, designed to handle wide-bodied aircraft used for long-haul flights. During the upgrade, aircraft will take off and land on the other runway.

Webinar discusses opportunities from EVFTA for French investors

The Embassy of Vietnam in France, the French institute of applied geopolitical studies (EGA Institute) and Foyer Vietnam on September 4 co-hosted a webinar on opportunities brought by the EU-Vietnam Free Trade Agreement.

The event gathers more than 30 attendees, including business executives and representatives from the European Commission (EC) and European Chamber of Commerce in Vietnam (EuroCham).

In his opening remarks, Vietnamese Ambassador to France Nguyen Thiep said enterprises from France will have plentiful business and investment opportunities in Vietnam, not only in traditional fields but also in new waters, such as aerospace, renewable energy and infrastructure development.

Marie-Pierre Vedrenne, Vice-Chairwoman of the European Parliament's Committee on International Trade (INTA), said the new-generation EVFTA is the second trade deal the EU has signed with a ASEAN member state. Together with the EU-Vietnam Investment Protection Agreement (EVIPA), it will provide more favourable business climate for French companies and guarantee legitimate rights of foreign investors in Vietnam.

The webinar highlighted Vietnam’s stable investment environment as the country has successfully contained the spread of COVID-19. It also presented opportunities brought by the newly-inked agreement and the European Parliament's role in promoting the deal; and identified several common challenges facing international trade relations.

Opportune time for Vietnam to boost rice exports

Export prices of Vietnam’s 5% broken rice have climbed to US$488-492 per tonne, up US$25 from a month ago and marking the highest levels for years.

Purchasing prices in the Mekong Delta also rose significantly against previous crops, up to VND6,200 per kilogram, generating good profits for rice farmers.

According to the Vietnam Food Association, Vietnamese rice price rises were partly thanks to many countries increasing their reserves to cope with the coronavirus pandemic. In addition, with Vietnam’s ST25 rice named the world’s best rice, global consumers have paid more attention to Vietnamese rice in general, helping to boost both export volumes and prices.

In other good news, Vietnamese rice has begun to penetrate high-quality markets with Vinaseed recently announcing it will ship 50 tonnes of Japonica rice to Australia. The company already exported VJ Pearl Rice and RVT fragrant rice to the Netherlands and the Czech Republic in July at a price of US$1,040 per tonnes.

Such varieties have received the FSSC 22000 certificate on processing, packaging and shipping from Bureau Veritas, a world-leading British certification company. This is one of the comprehensive food safety standards necessary to penetrate demanding markets such as the EU and the US.

Besides Vinaseed, many Vietnamese rice exporters are also working to meet the stringent requirements of the EU, especially as the EU-Vietnam Free Trade Agreement has already come into force, under which the EU is giving Vietnam an annual quota of 80,000 tonnes of rice with zero tariffs.

This is a special opportunity for Vietnamese rice exporters to build and promote their image as well as outlining new strategies for production and export by focusing on speciality rice varieties designed to target discerning markets with higher prices and also reduce reliance on traditional markets, which mainly purchase lower-quality rice at lower prices.

It is a fact that Vietnamese rice accounts for small market share in European supermarkets while the rice of Thailand and Cambodia dominates. In order to expand their market and raise the value of rice, Vietnamese enterprises, therefore, need to change their mindset from creating safe growing regions to forging closer links with farmers in order to achieve high level domestic and international certificates regarding agricultural practices and food safety.

Vietnam forestry products exports increase by 10% despite pandemic

Exports of forest products in the first eight months of the year were worth nearly US$7.83 billion, a year-on-year increase of 10.6%, according to the Vietnam Administration of Forestry under the Ministry of Agriculture and Rural Development.

The export value of forestry products accounted for 29.9% of the export value of the agricultural sector; ofwhich, exports of wood and wood products were estimated at US$7.32 billion, a year-on-year increase of 9.6%, while non-timber forest products reached US$511 million, up 21.6%.

Major export markets for the timber and forest products of Vietnam include the US, Japan, China, the EU and the Republic of Korea with a total export value of US$7 billion.

According to Do Xuan Lap, Chairman of the Vietnam Timber and Forest Product Association (VIFORES), thanks to its efficient pandemic control, Vietnam has become an attractive investment destination for many wood processing companies with turnover in the billions of dollars.

The industry should continue to restructure the whole production chain, from its varieties of trees to promoting sustainable forest management, and implement its commitments under the EU-Vietnam Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA-FLEGT), according to Deputy Minister of Agriculture and Rural Development Ha Cong Tuan.

Vietnam’s GDP expected to expand 2 – 2.5% in 2020

Vietnam’s GDP is forecast to grow 2 – 2.5% in 2020 and 6.7% in 2021, as announced by the Minister of Planning and Investment Nguyen Chi Dung at the regular Government Cabinet meeting on September 4.
At the meeting, the minister reported on the estimated results of the implementation of socio-economic development tasks in 2020 and the projected plan for 2021.

He said that despite the difficult context, Vietnam’s economy has not fallen into recession and maintained a positive growth while many other countries in the region and the world are forecast to have negative growth rates.

Vietnam also fulfilled its five socio-economic development targets and exceeded two among its 12 targets set for 2020.

He noted that the Government remains consistent on the viewpoint of maintaining macroeconomic stability, controlling inflation, and developing appropriate mechanisms to stimulate the three main drivers for economic growth including investment, export and consumption.

In addition, the Government will make every effort to realise the “dual goals” of preventing the COVID-19 pandemic and quickly restoring economic activity to achieve an economic growth rate of 2% - 2.5% across the entirety of 2020, Dung said.

Besides these achievements, the economy still reveals limitations and inadequacies regarding economic restructuring associated with the renewal of the growth model, low productivity and competitiveness, a weak private sector, the lack of connection with foreign direct investment enterprises and global value chains, and others.

Minister Dung said that Vietnam will focus on overcoming difficulties and restoring the economy in 2021. The domestic economy is expected to expand by 6.7% in 2021.

Vietnam readies policies to attract high-quality FDI capital

Vietnam has set up many policies to attract high-quality foreign direct investments (FDI) to avoid lagging behind other countries in terms of attracting foreign capital, said a Ministry of Planning and Investment official.

Amid the Covid-19 pandemic, the global investment flow is likely to contract by 40% in 2020, but in Vietnam, newly registered capital has risen 6.6% and the number of new FDI projects inched up over 22% during the pandemic, Do Nhat Hoang, head of the ministry’s Foreign Investment Agency (FIA), said while addressing a dialogue on FDI attraction held today, September 4.

He added that a special working team on FDI attraction, which was recently formed by the prime minister, has worked with many large tech firms and major projects worth billions of dollars.

To create favorable conditions for large investors in business negotiations, a proposal will be sent to the prime minister to allow some CEOs arriving in the country on private jets to forego the 14-day mandatory quarantine period.

These strategies for FDI attraction were mapped out amid the global value chain being restructured. According to Nguyen Dinh Cung, an economic expert, three factors comprising the coronavirus pandemic, the U.S.-China trade tension and China Plus One have affected supply chain shiftings on a large scale.

Given this situation, the FIA leader said that Vietnam boasts of many advantages in FDI attraction, such as its large population, human resources, competitive production costs and its location at the center of Southeast Asia. The country has also pursued many reforms and elevated its position on the global map.

Traditional fish sauce association established

Three years after it applied for a license, the Traditional Fish Sauce Association was established.

Le Ngoc Anh, the owner of the Le Gia fish sauce brand, a member of the advocacy group seeking the establishment of the association, told Nguoi Lao Dong Online today, September 4, that the Ministry of Home Affairs had issued the decision allowing the setting up of the Vietnam Traditional Fish Sauce Association on September 3.

Under the decision, the association, which is an industry organization, operates in line with the rules and regulations passed by the Minister of Home Affairs.

It took time for the traditional fish sauce association to be established as the association applied for a license three years ago at the same time that another application for the establishment of the Vietnam Fish Sauce Association was also submitted to the Ministry of Home Affairs.

A plan to merge the two associations failed, leading to the issuance of the decision to set up the Traditional Fish Sauce Association independently.

Dong Thap to develop VND600-billion Sa Dec culture village

HCMC – Dong Thap Province’s Sa Dec, known as the flower kingdom of the Mekong Delta region, will be developed into a culture and tourism village with a total investment of VND600 billion, which has been approved by the Dong Thap government.

It will be carried out in two phases from 2020 to 2030, with capital from the State and local budgets, enterprises and residents.

The village will have a monitoring house, a display area, a lab for research on flowers, areas for cuisine and traditional festivals and resorts. It is expected to help locals shift toward producing bonsai trees safely and supplying them to the local market.

The river and canal systems will be dredged and upgraded to serve goods transportation and tourism development.

Founded over 100 years ago, the Sa Dec Flower Village welcomes millions of domestic and international tourists each year. The village annually supplies up to eight million flower products for the local market and for export to Cambodia, earning over VND1.4 trillion from the sale of flower and bonsai plants.

Vietnam repopulates pig herds after containing African swine fever epidemic

Vietnam is repopulating its pig herds as the African swine fever epidemic has been contained.

Addressing a meeting this morning, September 3, Dr. Nguyen Van Long, vice head of the Department of Animal Health under the Ministry of Agriculture and Rural Development, revealed that 199 communes of 19 cities and provinces nationwide had been hit by the epidemic.

As of today, 98% of the communes had successfully contained the disease and can now repopulate their pig herds.

“The African swine fever outbreak only occurred in small-scale pig farms that did not meet bio-security standards. Meanwhile, large-scale pig farms that meet these standards have been safe from the epidemic and are increasing their herds,” Long said.

Thanks to the containment of the epidemic, the pork supply has risen significantly since mid-August. As a result, pork prices have fallen sharply to VND120,000-140,000 per kilo today. Live pig prices have dropped to below VND80,000 per kilo from the peak of more than VND100,000 per kilo in May.

As of late July, rescue packages worth a combined VND13 trillion, which were sourced from the State budget, local budgets and as credit from banks, had been provided to pig farmers to help them deal with the epidemic.

Exchange rate seen stable this year

The exchange rate between the U.S. dollar and the Vietnamese dong is forecast to move in a range of VND23,288 and VND23,515 per dollar by the end of 2020, up 0.5-1% versus early this year.

This is thanks to the country's rising foreign exchange reserves and stable demand and supply of foreign currencies, according to a report recently released by the BIDV Research and Training Institute.

As of August 31, the interbank exchange rate remained at VND23,175 per dollar, up a slight 0.01% compared to the figure recorded early this year.

Meanwhile, the central exchange rate between the greenback and the dong released daily by the State Bank of Vietnam only rose by 0.19% over the start of the year.

At local commercial banks, prices of the U.S. dollar remained stable regardless of the strong volatility of gold prices.

The Joint Stock Commercial Bank for Foreign Trade of Vietnam, or Vietcombank, quoted the selling and buying prices of the U.S. dollar at VND23,270 and VND23,060, respectively.

At the Vietnam Export Import Bank, or Eximbank, one U.S. dollar was bought at VND23,080 and sold at VND23,250, lower than the rates at Vietcombank.

There are many reasons behind the stabilization of the exchange rate, said a representative of a HCMC major commercial bank, adding that among them is the fact that the hoarding of U.S. dollars has been subdued as other investment options such as gold and securities have become more attractive and the 2020 inflation rate was predicted to stay at just 3.5-3.8%.

Further, the country had banned gold imports and the central bank has tightened its control over the production of SJC gold bars. Accordingly, the recent upsurge in the price of gold had almost no impact on the exchange rate.

Indonesia strives to raise coffee productivity

Indonesia is determined to increase its coffee output to reclaim the position as the world’s second biggest producer.

The determination was conveyed by Minister of Research and Technology Bambang Brodjonegoro when attending a webinar themed “Indonesia on the World Coffee Map: Opportunities and Prospects” on September 5.

He said that currently Indonesia’s coffee plantation land area is 1.3 million hectares which can produce 600,000 tonnes of coffee per year.

Irfan Anwar, Chairman of the Indonesian Coffee Exporters and Industry Association (AEKI), said that increasing coffee productivity needs to be the government's attention considering that the area of Indonesian coffee plantations is still larger than Vietnam. If Indonesia has an area of 1.3 million hectares, Vietnam only has 650,000 hectares.

At present, Vietnam is the world’s second largest coffee producer after Brazil. It is followed by Columbia and Indonesia.

Cambodian PM: globalisation, multilateral trade vital for global growth

Cambodian Prime Minister Samdech Techo Hun Sen has said that strengthening globalisation and multilateral trade are crucial to supporting global economic growth and reducing poverty.

The Cambodian PM made the statement at the Global Manufacturing and Industrialisation Summit which was held virtually on September 4 - 5 and co-hosted by the United Nations Industrial Development Organisation (UNIDO) and the Ministry of Energy and Infrastructure of the United Arab Emirates.

In his speech, he called on countries to continue strengthening the momentum of globalisation, which has significantly contributed to economic growth and created unprecedented conditions that promote poverty reduction and livelihood of people from all walks of lives.

He said in the context of globalisation, countries must ensure that their cooperative mechanism can maintain the spirit of open-mindedness and support for multilateral trade, by speeding up social and economic interlinkages to support each country's development in a sustainable and inclusive manner.

He held that to restore global prosperity, countries should altogether respond urgently and responsibly to overcome the challenging issues, along with fears that have been dividing up countries, through the implementation of pragmatic strategies and actions aiming at strengthening the value of peace, dignity and solidarity with equal footing and mutual respects.

According to the Cambodian PM, in this sense, each country should play more active and interactive roles in global governance in a flexible, constructive and responsible manner, especially to contribute to the global orders in order to maintain peace and security, the key prerequisites for trade and long-term sustainable and prosperous growth for the whole world.

Quang Ninh exerting every effort to offer investors a better business climate

The northeastern province of Quang Ninh has put a great deal of effort into improving its business climate and competitiveness over the last few years.

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

VCCI Chairman Vu Tien Loc said the province is home to several models of reform, which helped it rise to the top in investment attraction.

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

It has also made great strides forward in improving governance and public administration capacity, moving from 62nd place in 2016 to third last year in the Vietnam Provincial Governance and Public Administration Performance Index (PAPI).

Quang Ninh is looking to secure its leading position in improving the local business environment and PCI sustainability, raising its PCI from 73.4 points in 2019 to 75.3 points this year.

It also aims to have eight PCI indicators in the top five and the remaining two in the top 10. Priority will be given to enhancing scores and rankings in three sub-indexes: Entry Costs, Access to Land, and Business Support Services.

According to Director of the provincial Department of Planning and Investment Tran Van Hung, to provide effective support for businesses Quang Ninh has fostered public administrative reform and established multiple channels for dialogue between local administrations and companies. It has also prioritised allocating funding to the development of technical and social infrastructure, Hung said.

Quang Ninh has proactively invested in infrastructure development, particularly in transport, according to Secretary of the provincial Party Committee Nguyen Xuan Ky. Total investment under the public-private partnership (PPP) model in transport over the last five years stands at nearly 50 trillion VND, Ky said, with only about 9 percent sourced from the State.

The province has opened two expressways totalling 100 km in length and built by private concerns. One is the 60-km Ha Long - Van Don Highway, costing some 12 trillion VND.

It has also put into operation Van Don International Airport, Vietnam’s first private airport, as well as an international passenger terminal in Ha Long city, the first in the country exclusively for cruise ships.

Provincial roads leading to border gates or industrial parks and economic zones have been quickly upgraded to enhance socio-economic links between the province and other localities and regions.

Chairman of the provincial People’s Committee Nguyen Van Thang said the province is pursuing sustainable economic development and green growth while striving to enhance economic effectiveness and competitiveness.

Quang Ninh has been developing high-quality industrial parks and economic zones in Ha Long city and the districts of Quang Yen, Van Don, Hai Ha, and Mong Cai to better serve investors in the processing, manufacturing, and hi-tech industries, he noted.

It has emerged as an ideal destination for investors seeking to diversify their production and expand their supply chains outside China.

“For investors operating in Guangdong in China, Quang Ninh is a destination worth considering in plans to relocate production to Vietnam,” said Pritesh Samuel, an expert from Dezan Shira & Associates Company.

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

The province possesses major advantages from Van Don district planning to become a multi-sectoral maritime economic zone and entertainment centre with a casino and high-end sea-island tourism and services.

It is also a gateway for international trade, creating unique, modern, and high-quality products that are internationally competitive.

Singapore’s retail sales continue improving

Singapore’s retail sales in July fell by 8.5 percent year-on-year, an improvement from June’s 27.7 percent plunge, according to the Department of Statistics (SingStat).

Compared to June, seasonally adjusted retail sales saw a 27.4 percent increase month-on-month in July. This was attributed to a lower base in the previous month, when most physical stores were closed until June 18, before Phase 2 of Singapore's reopening began.

The estimated total retail sales value in July was about 3.3 billion SGD (2.2 billion USD), with online retail sales making up an estimated 11.0 percent.

Online retail sales of the computer and telecommunications equipment, furniture and household equipment, as well as supermarkets and hypermarkets industries made up 49.1 percent, 21.8 percent and 11.4 percent of the total sales of their respective industry.

Among the segments that were hard hit by July’s retail slump were department stores, which saw a 32.1 percent drop in sales; clothes and shoes (minus 27.7 percent); and watches and jewellery (minus 21 percent).

Nam Dinh’s IP welcomes projects

A signing ceremony of land lease agreements took place at the Rang Dong Textile Industrial Park - Aurora IP in Nghia Hung district of the northern province of Nam Dinh.

The first two projects at the IP are in garment and textiles invested by companies of Hong Kong and Taiwan (China). Both of them will apply advanced and environmentally friendly technologies.

Covering an area of more than 31ha, the first project has investment of more than 200 million by Top Textile from Hong Kong (China). It is expected to be operational in 2023 and generate stable jobs for over 3,000 workers.

The other project with a total investment of 6 million USD by Jehong Textile from Taiwan (China) focuses on fabric dyeing. It is set to be put into operation in 2022, creating jobs for 300 labourers.

Vice Chairman of the Nam Dinh People’s Committee Ngo Gia Tu said the province has spared no efforts in improving its infrastructure linking with the country’s economic centres, particularly between local IPs and surrounding provinces and cities.

The province has also sped up the implementation of key transport projects to reduce travel time, creating optimal conditions for trade, economic development and investment attraction, he added.

In addition, Nam Dinh is paying heed to administrative reforms to bolster investment in the locality. Information, policies and incentives for domestic and foreign investors will be introduced in a transparent and clear manner, Tu affirmed.

With a designed area of nearly 14,000ha, the Rang Dong Textile Industrial Park - Aurora IP aims to become a modern IP of Nam Dinh province. Its first phase spanning 520ha has fulfilled legal conditions to receive investment projects in various fields, including garment-textile and support industries.

Indonesia, Australia cooperate on green energy development

Indonesia's Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan and Andrew Forrest, Australian iron ore company Fortescue Metals Group (FMG) founder, have inked a cooperation agreement on renewable energy development for green industry.

Under the document, the two sides will establish a joint task force to facilitate, expedite, and materialise FMG investment in Indonesia in the construction of a 60-GW hydroelectric power plant and 25-GW geothermal power plant.

"This investment, excluding supporting infrastructure, will cost tens of billions of dollars. This is a huge investment that will have a positive impact on Indonesia," Minister Luhut Binsar Pandjaitan was quoted by Antara News as saying.

Boasting potential on mineral and renewable energy, Indonesia and Australia can collaborate and become key players in the green and renewable energy industry in the global arena.

Earlier this year, the Indonesian minister announced billionaire Forrest's plan to invest in a hydropower plant in Kalimantan.

Taxation sector fulfils 60 percent of tax collection estimate

The taxation sector has collected over 752.6 trillion VND (32.45 billion USD) for the State budget, equivalent to 60 percent of the yearly estimate and 91.9 percent of the figure of the same period last year, the General Department of Taxation reported.

Of the amount, about 25.48 trillion VND came from crude oil, 72.4 percent of the estimate and 64.4 percent of the collection in the same period last year. Domestic revenues topped 727.13 trillion VND, or 59.6 percent of the estimate and 93.3 percent compared to the same period last year.

The department also said total tax debt in the first eight months of this year had increased compared to the amount at the end of 2019.

It attributed the rise to delayed payment of land use fees and land lease, as well as the government’s policy to reschedule tax payment for enterprises hit by the COVID-19 pandemic.

Another reason is that many tax payers have encountered difficulties in business and production activities under the impact of the pandemic.

Bac Ninh attracts 119 foreign-invested projects in January-August

The northern province of Bac Ninh licensed 119 new foreign-invested projects worth US$334.8 million in the first eight months of 2020, according to the provincial Statistics Office.

To attract both foreign and domestic investors, Bac Ninh focused on improving its business climate by prioritising projects which use less land, less labour, have high investment rate, significant budget collection and high technology, the Viet Nam Government Portal (VGP) reported.

The province also allowed 1,602 existing foreign-invested projects to increase their capital by $19.64 billion.

Of these, 1,331 projects are in the manufacturing and processing industry, making up 83 per cent, including 1,205 projects from South Korea, 112 projects from China and 86 projects from Japan.

Alongside the preferential mechanisms and policies of the State, the province also proposed initiatives to encourage investment in industrial zones and boost on-the-spot investment promotion by creating images from big foreign businesses such as Samsung, Canon and Foxconn.

In the last 20 years, Bac Ninh Province in the Northern Key Economic Zone has grown from an agricultural community to a major industrial centre with the second-highest per capita income and one of the highest economic growth rates in the country. 

Trade office works to boost commercial ties with Laos amid COVID-19

The Vietnamese Trade Office in Laos has employed various measures to support Vietnamese exporters amid declining trade revenue between the two countries in the first half of this year.

Trade Counsellor at the Vietnamese Embassy in Laos Le Thi Phuong Hoa told the Vietnam News Agency (VNA) that the office has regularly sent lists of Vietnamese exporters to Lao agencies.

Those agencies then inform local enterprises that are seeking Vietnamese goods, Hoa said.

The office has also worked with businesses to address difficulties in goods transportation while co-ordinating with the Lao Ministry of Industry and Commerce to put forth mechanisms to support companies.

According to the counsellor, demand in Laos for production and construction materials and consumer goods has fallen significantly due to the impact of COVID-19.

The pandemic has also obstructed goods transportation and trade promotion activities, she added.

As a result, trade between Viet Nam and Laos in the first half of this year was down 14.6 per cent year-on-year at just US$491.7 million.

Viet Namimported goods from Laos worth $214.85 million, down 6.1 per cent against the same period last year, while exporting $276.85 million worth of goods to the neighbouring country, down 20.2 per cent.

PM approves programme to boost productivity

Prime Minister Nguyen Xuan Phuc has approved a national programme on supporting enterprises to improve productivity and the quality of products and commodities in the next 10 years.

The programme aims to support businesses to adopt standards, technical regulations, advanced management systems and tools to enhance productivity and quality of products and commodities, contributing to increasing the national total factor productivity (TFP) and competitiveness of the economy.

It sets specific objectives for two periods, namely in 2021-25, 65 per cent of the national standard systems (TCVN) will be harmonised with international and regional standards, while there will be capacity building and training for about 600 specialists and consultant staff on productivity and quality at ministries, agencies, localities and businesses.

In 2026-30, the harmonisation rate of the TCVN system with international and regional standards will be about 70-75 per cent; while the number of specialists being trained and certified will increase to 1,000, of which about 200 experts will be certified with regional and international qualifications.

In the next 10 years, the number of enterprises supported with solutions to improve productivity and quality is expected to increase by 10-15 per cent per year, of which the number of certificates for ISO 9001 quality management system and ISO 14001 environmental management system granted to businesses will increase at least 10 per cent compared to the 2011-20 programme.

At least 100 enterprises will be instructed to apply solutions synchronously to improve productivity and quality.

To achieve these goals, the programme sets out tasks and solutions, focusing on enhancing mechanisms and policies to boost productivity and quality, researching and proposing solutions on science, technology and innovation to improve national productivity and the productivity of each industry, province and enterprise in the economic restructuring process.

As these matters are key to the country’s sustainable development and raising the competitiveness of local enterprises, communication and information diffusion about productivity and quality improvement solutions will be strengthened.

In addition, the programme will help enterprises employ new advanced solutions and quality and productivity management systems fit for specific industries, helping businesses apply systems of traceability, adopt good agricultural practices (GAP) and invest in organic farming and green productivity.

The last programme (Programme 712) supported more than 5,000 businesses to adopt many solutions and systems to improve productivity and quality such as ISO 9000, ISO 14000, SA 8000 (global standards for managing human rights in the workplace), Good Manufacturing Practice (GMP) and Hazard Analysis and Critical Control Points (HACCP).

The Ministry of Science and Technology is responsible for implementing the programme. 

HCM City bank credit grows at3.68 per cent amid Covid woes

Total outstanding loans of credit institutions in HCM City as of August 31 were worth VND2.38 quadrillion (US$102.5 billion), an estimated 3.68 per cent up for the year.

It represented a 0.4 per cent increase from the preceding month, according to the State Bank of Vietnam’s HCM City branch.

The 3.68 per cent growth represents the slowest rate in many years, but the SBV said cash flow is still being pumped into important areas of the economy.

Thus, lending to businesses in export processing zones and industrial parts increased by 12.7 per cent this year to VND180.58 trillion ($4.67 billion) as of July 31.

Banks also lent over VND2.014 trillion for 27 projects related to the city’s investment stimulation programme, and VND617 billion to firms participating in its price stabilisation programme.

Outstanding short-term loans in Vietnamese dong provided to the city’s five priority sectors (agriculture and rural development, production of goods for exports, small- and medium-sized enterprises, supporting industries, and high-tech enterprises) were worth VND176.26 trillion.

In response to the SBV’s Circular No. 01/2020/TT-NHNN that directed credit institutions to restructure loan repayments, waive and reduce the interest and fees and keep debt classification unchanged to support customers affected by COVID-19, credit institutions have supported 240,407 customers with total outstanding loans of VND583.15 trillion.

The SBV organised measures to mitigate difficulties faced by businesses based on feedback from authorities and business groups.

A representative of its city branch said the banking industry would continue to focus on solutions to overcome difficulties faced by businesses and help their revival based on guidelines issued by the Government, the central bank and the city People's Committee.

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