Business

Cut on automobile registration fees to facilitate auto industry

Published

4 months ago

June 8, 2023

The Ministry of Industry and Trade supporting the reduction of automobile registration fees is considered to have a positive effect on the auto industry in the context of the automobile market facing many difficulties.

Cut on automobile registration fees to facilitate auto industry hinh anh 1

Illustrative image (Photo:haxaco.com.vn)

Hanoi – The Ministry of Industry and Trade supporting the
reduction of automobile registration fees is considered to have a positive
effect on the auto industry in the context of the automobile market facing many
difficulties.

A report by the Ministry of Industry and Trade showed that, in the first four
months of 2023, automobile production decreased by 19.3% compared to the same
period last year. Besides, car inventory in recent years has also been quite
high.

Nguyen Ngoc Thanh, Deputy Director of the Department of Industry under the
Ministry of Industry and Trade, said that many reasons greatly affected the
consumption of automotive products such as difficult access to bank capital,
high interest rates, high exchange rates and inflation, leading to high
inventory of auto products in recent years.

According to the Vietnam Automobile Manufacturers Association (VAMA), domestic
car production sharply declined in the first four months of this year. Car sales
were also on a downward trend. This caused concern among many manufacturing
enterprises. In some localities, there might be a deficit in budget revenue,
and workers have lost their jobs.

Sales of the whole market in April 2023 only reached 22,409 vehicles, including
15,748 passenger cars, 6,487 commercial vehicles and 174 special-purpose
vehicles. All segments had a sharp decrease compared to March 2023 such as
passenger cars down 27%, commercial vehicles down 19% and special-purpose vehicles
down 51%.

The cause of this decline is believed to be the cessation of the registration
tax reduction policy. Many domestic automobile enterprises are also facing
fierce competition for market share.

The above difficulties are most clearly reflected in the business results of
the first three months of the automobile enterprises.

Vietnam Engine and Agricultural Machinery Corporation – JSC (VEA) reported a profit
after tax of nearly 1.37 trillion VND (58.3 million USD) in the first quarter,
down 7% over the same period last year.

VEAM’s profits mainly came from joint ventures and associates such as Honda,
Toyota, and Ford. Meanwhile, selling and administrative expenses were almost
unchanged in the first three months of this year.

Not only manufacturers, automobile distributors also recorded a dismal first
quarter of 2023.

Savico (SVC), a distributor of many brands such as Toyota, Ford, Honda,
Hyundai, Mitsubishi, and Volvo, recorded a profit after tax of only 14.7
billion VND, down nearly 85% compared to the same period in 2022, and decreased
more than 11 times compared to the previous quarter. The amount of inventory of
the enterprise exceeded 2 trillion VND.

Haxaco (HAX), which distributes Mercedes-Benz brand cars, also recorded a
revenue decrease of more than 40%, at less than 1 trillion VND. Profit before
tax was only 5.6 trillion VND in the first quarter, down about 92%.

If the Government continues to apply the policy of reducing registration fee by
50% and bank interest rates returning to attractive levels, electric vehicles
can create a breakthrough for the auto industry. In Vietnam, the auto market is
forecast to prosper again. At the same time, according to SSI Research, auto
stocks will attract cash inflows.

In 2022, along with the strong decline of the VN-Index, the market prices of
many auto stocks decreased from 34% to more than 40%.

Since the decree on reducing registration fees took effect on December 1, 2021,
automobile stocks, especially those of big car distribution giants in Vietnam,
skyrocketed significantly.

Specifically, in the session on December 1, 2021, three stocks of HAX, SVC and
VEA gained to near the ceiling prices.

Notably, SVC shares increased to the ceiling continuously, bringing the market
price from 96,000 VND per share to 126,000 VND per share – the historical peak
price – in the morning session of December 7, 2021.

Investors can have faith in auto stocks if the registration tax reduction
policy takes effect again, said SSI Research.

SSI said it was too early to assess the impact of electric vehicles on the
automobile industry in Vietnam. Car manufacturers have just begun to test
electric vehicle sales to gauge consumer interest. Vietnam still does not have
a strategy to develop charging station infrastructure for electric vehicles.
Moreover, the price of electric vehicles is still high compared to petrol
versions.

On the other hand, despite the sluggishness, some car manufacturers, such as
Toyota, still have plans to increase prices. The reason stems from the risk of
global inflation, exchange rate fluctuations, and increased input costs causing
car prices to be higher than previously./.

Source: https://en.vietnamplus.vn/cut-on-automobile-registration-fees-to-facilitate-auto-industry/253793.vnp

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International arrivals in Vietnam surge over 12-fold year on year

Business

Emerging trends expected to power Vietnam’s tourism boom: study

Published

11 mins ago

October 4, 2023

TienphongNews

Several ongoing trends in the Vietnamese tourism sector have contributed to its strong recovery in the wake of the global COVID-19 pandemic, with the increasing travel demands of Gen Z and families with kids as significant contributors, according to the Visa Global Travel Intentions Study (GTI) 2023.

Vietnam, with its stunning landscapes and diverse cultural heritage sites, has become a popular destination for travelers from around the world.

According to the study, it is vital for both travelers and industry stakeholders to understand new trends in Vietnamese tourism following the pandemic.

In terms of leisure trips, families with kids and ‘Silvers’ – individuals older than 60 – made an average of 2.4 trips over the past 12 months, more than any other market segments, according to the GTI 2023.

Besides ticking visiting landmarks, Vietnamese tourists are now placing a strong emphasis on leisure-focused and experiential journeys.

Relaxation was the main driver of travel, followed by shopping and exploration.

As the country blossoms into a playground for adventure seekers and culture enthusiasts, tourists are opting for personalized experiences that enable them to immerse themselves in local customs, traditions, and cuisine.

Environmental awareness was also a primary catalyst for travel over the past year. As such, Vietnamese travelers demonstrated remarkable interest and action in sustainable travel.

Up to 73 percent of those surveyed said they were either interested or very interested in sustainable travel options, while half had actively looked for these options when planning trips.

With an increasing number of travelers seeking eco-conscious options, the tourism sector is witnessing a shift toward greener travel practices, more support for local communities, and the preservation of natural resources.

Given the country’s growing middle class and their increasing disposable income, Vietnamese travelers are embarking on more domestic and international trips and they seek unforgettable experiences and bonding opportunities.

About one-fifth of the respondents said visiting and connecting with friends or families would be a key motivation for travel in the next year.

Shopping has also become an integral part of the Vietnamese travel experience, with many Vietnamese travelers seeking out unique souvenirs and indulging in retail therapy as part of their journeys.

Sustainable tourism is increasingly preferable for Vietnamese travelers

Sustainable tourism is increasingly preferable for Vietnamese travelers.

Amid the strong development of digital technology, Vietnamese tourists prefer seamless transactions and optimal security measures.

The digital revolution is transforming payment methods, and Vietnamese travelers have embraced the convenience of credit, debit, and pre-paid cards.

Almost all Vietnamese respondents in the GTI 2023 indicated that they intended to use these cashless payment options during their journeys, streamlining transactions and enhancing their overall travel experiences.

Accordingly, 64 percent of the Vietnamese respondents said they brought their digital wallets along with them for their travels.

Thus, the incorporation of cashless payment solutions has become a pivotal pillar in travel, fostering convenience, security, and efficiency for travelers while contributing to the industry’s overall vitality.

“Vietnam’s tourism is entering a new era where the role of digital payments will advance side by side with the industry as customers demand more efficient and secure payment services,” said Dang Tuyet Dung, Visa country manager for Vietnam and Laos.

“Adapting swiftly, hotels, restaurants, and tour operators must cater to evolving traveler needs, supported by the growing use of cashless payment methods for added convenience.”

Amid the global recovery from COVID-19, Vietnam’s tourism sector is rebounding. Domestic tourism has been pivotal, with locals exploring their own country, bolstering local businesses and jobs.

Vietnam welcomed over 7.8 million foreign visitors between January and August this year, meeting 98 percent of its full-year target of eight million international tourist arrivals.

The tourism sector also served 86 million domestic tourist arrivals in the eight-month period, according to the General Statistics Office.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20230928/emerging-trends-expected-to-power-vietnams-tourism-boom-study/75848.html

Business

Zhejiang Trade Exhibition opens in Hanoi

Published

4 hours ago

October 4, 2023

TienphongNews

The 2023 Zhejiang International Trade Exhibition and the 11th Zhejiang Export Fair, the largest and oldest expo independently held by China’s Zhejiang authority in ASEAN, opened at the Hanoi International Convention Centre on September 28.

Zhejiang Trade Exhibition opens in Hanoi hinh anh 1

At the opening ceremony of the exhibition (Photo: VNA)

Hanoi – The 2023 Zhejiang International Trade Exhibition
and the 11th Zhejiang Export Fair, the largest and oldest expo independently
held by China’s Zhejiang authority in ASEAN, opened at the Hanoi International
Convention Centre on September 28.

The 4,000sq.m expo features 120 booths, displaying
products in hardware and machinery, textiles and inputs, interior and exterior
furniture, electronics and household appliances.

The three-day event is hosted by the Department of Commerce of Zhejiang province, and co-organised by Zhejiang Yuanda International Exhibition Co Ltd and
the Vietnam National Trade Fair and Advertising Company (VINEXAD).

Deputy Director of the Asia-Africa Market Development under the Ministry of
Industry and Trade (MoIT) To Ngoc Son
said this is the 11th year the two sides have coordinated to
organise the trade promotion activity which marks the full recovery of economic
and trade exchanges between the two nations after three years of hiatus due to COVID-19.

Zhejiang Trade Exhibition opens in Hanoi hinh anh 2

Deputy Director of the Asia-Africa Market Development To Ngoc Son speaks at the opening ceremony. (Photo: VNA)

The event is expected to create more cooperation opportunities for businesses
from both nations in the context that the global economy is facing a gloomy outlook,
he said, adding Zhejiang province – an important gateway in China’s eastern
region has an important role to play in the Vietnam – China trade, with Vietnam
– Zhejiang trade revenue accounting for 10% of the total trade between
the two nations in 2022.

Launched in 2011, the expo has been a platform not only for product exhibition
and promotion but also for Vietnam and China to strengthen economic and cultural
exchanges and multifaceted cooperation between their localities.

Last year, Zhejiang’s exports
to Vietnam reached 14.5 billion USD, an increase of 17.99%, while imports were 6
billion USD, up 14.21% over the same period last year.

The exhibition will run until September 30./.

Source: https://en.vietnamplus.vn/zhejiang-trade-exhibition-opens-in-hanoi/268734.vnp

Business

Vietnam’s nine-month economic growth reported at 4.24% YoY

The country’s GDP grew by 4.24% in the first 9 months, exceeding the growth rate of 2.19% and 1.57% in 2020 and 2021, according to data from the General Statistics Office.

Published

5 hours ago

October 4, 2023

TienphongNews

2023-09-29_163915_291638698-1

The results suggest that the economy is experiencing a notable upswing, potentially due to favorable economic politics or external factors.

The gross domestic product in the July-September quarter was estimated to increase by 5.33% from a year earlier, faster than the growth rate of 4.05% in the second quarter.

The recent growth registered in the country’s economy is a positive sign, indicating a continued recovery from the pandemic-induced downturn. Despite a slight decrease in growth compared to the same period last year, the economy remains stable and may continue to grow in the coming months.

In September, the consumer price index increased by 3.66% compared to the same period last year. The average value recorded in the third quarter of 2023 grew by 2.89% compared to the third quarter of 2022.

In the reviewed period, the total import and export turnover of goods reached $497.66 billion, down 11% over the same period last year. Of which export value hit $259.67 billion, down by 8.2%, while import value hit $237.99 billion, down 13.8%.

With regard to trade balance, the country posted a trade surplus of $2.29 billion in September and $21.68 billion during the nine months.

Industrial production in September increased by 5.1% year on year, up 0.1% from the previous month, while the January-September period showed an increase of 0.3% from the previous year.

In addition, the total retail sales and consumer service revenue in the first 9 months of 2023 is estimated to reach VND 4,567.8 trillion, an increase of 9.7% year on year (the same period in 2022 increased 20.9%).

Source: https://e.nhipcaudautu.vn/economy/vietnams-nine-month-economic-growth-reported-at-424-yoy-3355298/