Connect with us

Business

VIETNAM BUSINESS NEWS HEADLINES OCTOBER 30

Published

on

FDI reaches US$23.48 billion in ten months

VIETNAM BUSINESS NEWS HEADLINES OCTOBER 30

Vietnam attracted a total of US$23.48 billion in foreign direct investment (FDI) during the opening ten months of the year with Singapore leading the way at US$7.51 billion, making up 31.9% of overall investment in the country, according to statistics released by the Ministry of Planning and Investment. 

The processing and manufacturing sector takes the lead in attracting FDI during the ten-month period
Among the 109 territories and countries currently investing in the nation, the Republic of Korea ranked second with US$3.42 billion, with China in third place with US$2.17 billion, followed by Japan, Thailand, and Taiwan (China).

Of the total FDI, 2,100 projects were successfully granted investment registration certificates, representing an annual decline of 32.1%, while total registered capital fell by 9.1% to US$11.66 billion.

Total newly-registered and adjusted capital, along with capital contribution and share purchases from foreign investors reached US$23.48 billion as of October 20, equivalent to 80.6% in comparison with the same period from last year. In addition, the disbursement of FDI capital was estimated to stand at US$15.8 billion, equal to 97.5% from last year’s corresponding period.

Most notably, FDI enterprises have made investments across 18 industries, of which the processing and manufacturing sector took the lead with total investment capital of US$10.7 billion, accounting for 45.7% of total registered capital.

This was trailed by the electricity production and distribution sector with over US$4.8 billion, real estate with approximately US$3.5 billion, and the wholesale and retail sector with US$1.4 billion.

The figures indicate that the Mekong Delta province of Bac Lieu province continues to top the list of the country’s 59 localities in terms of FDI attraction at US$4 billion, Ho Chi Minh City at US$3.4 billion, Hanoi at US$3.13 billion, followed by Ba Ria – Vung Tau, Binh Duong, and Hai Phong.

Chu Lai airport resumes operation after two-day closure due to storm Molave

Chu Lai airport in the central province of Quang Nam stands ready to return to normal operations from 7am on October 30 after two days of closure due to storm Molave, according to a representative from the Airports Corporation of Vietnam.

Earlier, the Civil Aviation Administration of Vietnam (CAAV) decided to temporarily close Chu Lai, Phu Cat, Da Nang and Tuy Hoa airports from 6pm on October 27 to avoid the impacts of the storm.

Relevant agencies were asked to keep a close watch on the impact of the storm on Dong Hoi and Cam Ranh airports in the central and south-central region, Buon Me Thuot and Lien Khuong airports in the Central Highlands, and others in the south, in order to propose suitable operational plans.

The CAAV also ordered its units to work around the clock and urged the implementation of plans to minimise losses at airports from torrential rain and flooding.

Airlines such as national flag carrier Vietnam Airlines, Vietjet Air, and Bamboo Airways announced adjustments to flight timetables given the approaching storm.

Notably, Vietnam Airlines has cancelled all 104 flights to and from Vinh, Dong Hoi, Phu Bai, Da Nang, Chu Lai, Phu Cat, Pleiku, and Tuy Hoa airports, while Pacific Airlines has cancelled six flights between HCM City and Da Nang and two between HCM City and Phu Cat./.

HCM City, EU forge cooperation as EVFTA takes effect

Chairman of the People’s Committee of HCM City Nguyen Thanh Phong on October 29 hosted a reception for a delegation of ambassadors from European Union (EU) member countries.  

 During the meeting, the two sides agreed to step up cooperation in the context of the EU-Vietnam Free Trade Agreement (EVFTA) coming into force. 
 
 Phong said the visit to HCM City by the ambassadors has reflected the EU member countries’ interest in the local business environment as well as their confidence in the southern economic hub’s development potential. 
 
 The EVFTA will bring about benefits and huge opportunities to enhance economic cooperation and connectivity between Vietnam and the Europe, he said. 
 
 It is expected to facilitate Vietnam’s export to the European market, while enabling European firms to benefit from the Vietnamese market with a population of 100 million, the official went on. 
 
 Phong called on the ambassadors to work as a bridge to help HCM City businesses access the European market and diversify products.
 
 HCM City stands ready to support European firms to invest in the southern metropolis, especially in the areas of the Europe’s strength and the city’s demand, the official pledged. 
 
 Ambassador Giorgio Aliberti, head of the EU mission to Vietnam, lauded HCM City’s appeal, and shared Phong’s view that the EVFTA is a crucial foundation for trade and investment ties between the EU and Vietnam as well as HCM City. 
 
 According to the ambassador, textiles-garment, fisheries and agricultural products play an important role in advancing the bilateral trade ties. 
 
 The EVFTA not only brings about benefits in trade, but also promotes investment links between the two sides, while helping Vietnam raise its position in the global value chain, he added. 
 
 He suggested Vietnam and HCM City in particular create a more attractive, effective and transparent investment environment in order to optimise golden opportunities in luring high-quality investments from the Europe. 
 
 Statistics unveil that last year, HCM City’s export to the Europe hit 5 billion USD. In the first nine months of this year, the revenue stood at 3.2 billion USD, up 0.9 percent year-on-year. 
 
 Meanwhile, the city imported 3.6 billion USD worth of goods from the market in 2019. The figure dropped by 30 percent to 1.3 billion USD in the nine-month period./.

Advanced technology applied in audit activities at SAV

In addition to promoting the application of information technology (IT) in its management and professional endeavours, the State Audit Office of Vietnam (SAV) has also installed new technologies to better conduct its activities.

Initial results showed the application of information technology has brought about notable changes in audit activities, paving the way for turning technology into an important tool for the improvement of such tasks.

The efforts also demonstrate the firm commitment of the SAV, as Chair of the Asian Organisation of Supreme Audit Institutions (ASOSAI) for the 2018-21 tenure, to changing audit methods.

In the face of a surging wave of technology that is making its way into the audit sector, updating and staying abreast of new technology in order to apply them in audit activities is an essential action and core solution to improving the quality and efficiency of audit activities.

Aware of the role technology plays in the sector’s activities, the SAV has studied and integrated new technologies that yielded fruitful results compared to traditional methods.

Given the complexities of audit activities in urban land management, which deliver low effectiveness, a group of auditors at the Regional State Audit Office No 12 sought out software and apps on urban land management, compensation, and support for the re-settlement of residents. They include Global Mapper and Map Tiler, which are designed to help auditors scan and analyse digital data on land use plans, areas of land lots, and actual land use compared to plans.

The software has made the work much easier for auditors and help them save a great deal of time compared to previously. Regarding the audit of land use plans, for instance, auditors used to work on paper documents and maps provided by relevant units. But it was difficult to uncover faults when comparing paper maps. Audit efficiency remained low as a result and was time-consuming.

The use of software and apps, meanwhile, helps auditors cut time comparing maps and determining which parts do not match.

Those tools are also able to accurately join planning maps together into a mapping system with GPS. Auditors can therefore pinpoint the location of land lots and quickly detect any violations in land management.

In regard to bank auditing, software has helped auditors easily review accuracy in the classification of debts and budgets for risk management, thereby cutting risks caused by the manual editing of data on classifying bank debts and helping audit teams agree on common steps when handling a sole task for various branches of a bank.

Along with IT application, other advanced technologies have been applied over the recent past and posted positive results. Of particular note, the use of remote sensing in the auditing of mining operations in Thuy Nguyen district in northern Hai Phong city, conducted by Regional State Audit Office No 6, proved the technology’s effectiveness.

Thanks to technological application, the SAV has identified the foundations for determining the exact area for natural resources exploitation and the actual volume of exploited minerals, thus preventing the risk of illegal mining, which causes losses and environmental damage.

Results showed that remote sensing improved efficiency in State management over the exploitation of natural resources, thus raising the role of the SAV in public asset protection.

In addition to remote sensing, over time, the SAV has bolstered the use of modern apps in auditing, including ultrasonic testing (UT) detection technology and computer-assisted audit tools and techniques (CAATs).

As audit activities have significantly improved with the application of new technologies, the number of violations discovered through auditing has surged and all units have now installed and are using new software./.

PV GAS, AES Corporation sign deal on Son My LNG import terminal project

The PetroVietnam Gas Joint Stock Company (PV GAS) and the US-based AES Corporation have signed the term sheet of the joint venture agreement for the development of the Son My LNG Import Terminal Project – a project with a total investment cost of 1.4 billion USD. 

This signing, which was held virtually on October 28 on the sidelines of the Indo-Pacific Business Forum, came near the one-year anniversary of the historic agreement the AES Corporation signed with the Vietnamese government to build the 1.8-billion-USD Son My 2 combined cycle gas turbine (CCGT) power plant.

PV GAS General Director Duong Manh Son and Executive Vice President and Chief Operating Officer of the AES Corporation Bernerd Da Santos inked the deal under the witness of officials from the Vietnamese and US governments.

The Son My LNG Import Terminal Project will help meet the demand for gas and power in the southern key economic region and the whole country in general, thereby ensuring national energy security, Son said.

The Son My LNG Import Terminal Project will be located in the south central province of Binh Thuan with the total capacity of up to 450 TBtu, to supply gas to newly built gas-fired power plants of about 4,500 MW, other existing gas-fired power plants, and industrial customers. Together, the 2.2 gigawatts power plant and terminal will play a major role in shaping Vietnam’s energy future by diversifying the energy mix with imported LNG as well as meeting the country’s increasing demand for sustainable and affordable electricity./.

Agricultural firms seek to tap Chinese market

A lack of knowledge regarding market demand and policy changes in recent years has prevented Vietnamese agricultural firms penetrating the Chinese market, though their products meet the stringent standards set by the EU market, according to insiders.

The Agro Processing and Market Development Authority (Agrotrade) state that total import-export turnover of agricultural products between Vietnam and China suffered an annual decline of 8.6% to US$9.8 billion during the opening nine months of the year due to the impact of the COVID-19 pandemic.

Although major Vietnamese fruits such as grapefruit, dragon fruit, passion fruit, coconuts, longans, and lychee, meet the export requirements set by importers from both the EU and United States, they find it difficult to make inroads into the Chinese market.

At present, only nine types of Vietnamese fruits have successfully penetrated the Chinese market via official channels, including dragon fruit, watermelons, litchis, longans, bananas, mangoes, jackfruit, rambutans, and mangosteens.

Nguyen Quang Hieu, deputy director of the International Cooperation Department under the Department of Plant Protection, said China’s market regulations have undergone recent changes in terms of plant quarantine and food safety requirements imposed on imported items. 

This comes as the General Administration of Customs of China has moved to gradually tighten inspection and set forth stricter regulations regarding traceability of origin, growing areas, and packaging labels for imported fruit and vegetables to fall in line with international standards. 

According to China Customs, there remains hurdles regarding the registration of growing areas, the management of packaging facilities, and origin traceability, all of which has served to affect the fruit and vegetable export turnover between the two nations.

Ngo Tuong Vy, deputy director of Chanh Thu Fruit Import and Export Co., Ltd, emphasises that the northern neighbour has recently imposed tougher standards on imported items whilst intensifying phytosanitary measures at border gates, thus slowing down necessary customs clearance procedures. 
In the past local firms viewed China as an easy market, although that is no longer the case due to their organic standards now being among the highest in the world, Vy notes. 

Sharing this viewpoint, Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetables Association, says that fruit and vegetable exports to the Chinese market have faced numerous challenges due to the COVID-19 pandemic, coupled with their recent implementation of new export policies.

Nguyen underlines the need to update local businesses on China’s new regulations in order to help them gain a greater insight into the huge market, therefore facilitating the export of agricultural products.

He suggests the Ministry of Agriculture and Rural Development seek steady Chinese outlets for key Vietnamese fruits such as durians, grapefruit, passion fruit, avocadoes, and coconuts, paving the way for other Vietnamese farm products to penetrate the market.

US launches new energy security program for Vietnam

The United States Agency for International Development (USAID) has announced the launch of the Vietnam Low Emission Energy Program II (V-LEEP II) to help the country strengthen energy security. 

This five-year, US$36 million program will accelerate Vietnam’s transition to a clean, secure, and market-driven energy system, USAID Vietnam Mission Director Ann Marie Yastishock said during the Indo-Pacific Business Forum in Hanoi on October 28.

For the past four years, the USAID Vietnam Low Emission Energy Program (V-LEEP) has worked with the Vietnamese Government to develop a Direct Power Purchase Agreement pilot program which will allow businesses to purchase clean power directly from solar and wind generators. It has also supported the Ministry of Industry and Trade to develop Vietnam’s Power Development Plan #8, which is expected to incorporate advanced energy solutions, more diversified sources of renewable energy, and a higher grid penetration to deliver this clean energy.

In addition, V-LEEP has worked with government regulators, banks, investors, and private sector developers to facilitate solar investments, resulting in solar energy now making up more than 10% of the country’s total generation capacity.

“As USAID V-LEEP comes to a close early next year, USAID/Vietnam remains committed to strengthening partnerships and developing innovative solutions for a clean, affordable energy future for Vietnam, by continuing our support through V-LEEP II,” said Director Yastishock.

USAID V-LEEP II will focus on improving government energy planning practices; increasing competition and private sector involvement in energy service provision; deployment of advanced, clean energy systems; and improving grid planning to incorporate clean energy transmission. It will also help Vietnam attract qualified investors for advanced energy projects and advise private firms to develop high quality and bankable projects.

210 million USD mobilised via October 28 G-bond auction

A total of 4.87 trillion VND (approximately 210 million USD) was mobilised for the State Treasury through a Government bond auction at the Hanoi Stock Exchange (HNX) on October 28.

The Treasury offered 8 trillion VND worth of G-bonds, including 2 trillion VND worth of 7-year bonds, 3.5 trillion VND of 15-year bonds, 1 trillion VND of 20- year bonds and 1.5 trillion VND of 30-year bonds.

It raised 250 billion VND worth of 7-year bonds with an annual yield rate of 1.55 percent, down 0.35 percent from the auction on March 11.

It mobilised 3.5 trillion VND worth of 15-year bonds with an annual yield rate of 2.76 percent, down up 0.02 percent from the previous auction on October 21.

A total of 720 billion VND was mobilised from 20-year bonds with an annual interest rate of 3.02 percent, unchanged from the October 21 auction.

Bonds with 30-year maturity raised 400 billion VND with an annual interest rate of 3.25 percent, unchanged from the previous auction on October 21.

So far this year, the State Treasury has collected 260.116 trillion VND from G-bond auctions./.

Support industry fair underway in Hanoi

The 2020 Hanoi Support Industry Fair opened in the capital city on October 28, attracting the participation of nearly 190 enterprises and 20 buyers.

On display are electrics – electronic components, components for assembling automobiles, motorcycles, motor vehicles, and manufacturing mechanical components.

Products serving the textile and garment industry, footwear production, and hi-tech industries are also put on show

The two-day fair helps businesses access technologies to improve their ability in economically using raw materials, fuel and energy, and enhance their international economic integration ability.

It also offers a chance for exhibitors, manufacturers and suppliers to seek business cooperation opportunities and establish partnership, thus improving their capacity in participating in global supply chains in manufacturing components and parts.

Speaking at the opening ceremony, Deputy Director of the Hanoi Department of Industry and Trade Dam Tien Thang highlighted the significance of the event, saying that the development of support industry has significantly contributed to the efficiency, quality and price of products.

The reasonable development of supporting industries in the context of globalisation will create competitive products, form production networks with multiple supply layers, and create connection between Vietnamese businesses and multinational groups, and FDI enterprises, he noted.

The event is also expected to contribute to attracting FDI into the support industry in Hanoi and Vietnam in general, Thang said./.

PM: railway system needs to be upgraded

Prime Minister Nguyen Xuan Phuc on October 28 stressed the need for the railway system to be upgraded in order to serve national development.

Speaking at a meeting of permanent Cabinet members, the leader said urban railways must be planned, firstly in Hanoi and HCM City, to address current traffic jams.

He suggested developing a railway system linking the Central Highlands and the central region and HCM City, and another between the southern metropolis and the southwestern region.

Highlighting the important role of the railway system, particularly the North-South express railway, PM Phuc said pre-feasibility assessments must be thoroughly prepared before submitting them to the Politburo and the National Assembly.

He assigned the Ministry of Transport to prepare these reports which, he said, should put into account technologies and investment resources. The PM said the public-private partnership (PPP) model should be prioritised in this regard.

Land preparation is of significance, he said, suggesting connectivity with international railways so as to expand development space.

The leader tasked the transport ministry with completing the Vietnam railway development strategy and plan by 2030 with a vision towards 2050, and proposing policies and solutions to develop the railway system.

Regarding the Cat Linh-Ha Dong urban railway project, PM Phuc asked ministries, agencies and Hanoi authorities to raise their sense of cooperation and devote more time to addressing relevant issues.

Safety is the top priority, he emphasised, calling for efforts of experts and consultants in ensuring the safety of the project.

The project should be handed over only after the State Council for Pre-Acceptance Test for Construction Works makes official decisions, he said.

Transport Minister Nguyen Van The reported at the meeting that from now to mid-November, about 10 French consultants will come to Vietnam to assess the safety of the project.

All-out efforts are being made so that Hanoi’s first metro line would be put into commercial run ahead of the 13th National Party Congress, slated for the first quarter of 2021, the minister said.

The 13.5-km-long railway line, from Cat Linh in Ba Dinh district to Ha Dong district of Hanoi, has a total investment capital of approximately 886 million USD after several adjustments./.

Thailand targets region’s electric vehicle manufacturing hub

The Thai Ministry of Energy said on October 27 that charging stations for electric vehicles (EV) will be placed about 50 to 70 km apart as part of the country’s plan to boost demand and turn Thailand into a EV manufacturing hub in ASEAN.

According to the ministry’s Energy Policy and Planning Office, it has rolled out a roadmap to boost production of EVs to 30 percent of total auto-manufacturing in the country by 2030.

Thailand plans to produce about 1.2 million EVs plying the roads by 2030 and is laying the foundation for infrastructure and battery development, Wattanapong Kurovat, chief of the Energy Policy and Planning Office.

The ministry’s policy to reduce fuel consumption and enhance the sustainability of the environment will be abided by, he added.

The Energy Policy and Planning Office is also studying the option of EV users selling extra energy from their batteries to the national power grid, which will help strengthen the country’s electricity security, he said.

According to Wattanapong, The Thai government will be piloting EVs in public transport, taxis and government cars first. When demand rises, it will result in automakers, battery manufacturers and makers of EV parts basing themselves in Thailand and ultimately turning the country into an EV hub in the ASEAN region./.

Singapore signs MoU on energy cooperation with Malaysia, Hong Kong

Singapore’s Energy Market Authority (EMA) signed memoranda of understanding (MOU) with Malaysia’s energy commission Suruhanjaya Tenaga (ST) as well as the Electrical and Mechanical Services Department (EMSD) of China’s Hong Kong on October 28.

EMA’s MOU with ST was signed on the sidelines of the 13th Singapore International Energy Week (SIEW). It aims to strengthen bilateral cooperation in the energy sector, said both parties in a media release.

“The MOU provides a framework for both organisations to enhance knowledge sharing and technical cooperation in the planning and reliability of gas and electricity systems, regulation of wholesale and retail electricity markets; and cooperation at multilateral meetings,” added the media release.

The first activity as part of the MOU will be a virtual dialogue between EMA and ST to discuss the challenges and impact of COVID-19 on the energy sectors in Singapore and Malaysia. This will be held in the first half of next year.

EMA’s MOU with EMSD will provide a framework to promote cooperation and sharing of regulatory practices in three key areas, said both parties in a separate press release. The MOU was signed virtually on the sidelines of SIEW.

These areas include electricity, gas systems and markets, renewable energy and cooperation at multilateral forums.

“Activities between the two agencies will include knowledge and experience sharing, and technical cooperation involving training and exchange programmes between EMA and EMSD,” said the media release.

EMSD director Eric Pang noted that the MOU would strengthen EMA and EMSD’s partnership on the sharing of knowledge and experience in energy related areas./.

UK managers speak of Vietnam investment prospects

Financial website wealthbriefingasia.com published an article on October 28 outlining the views of several UK-based asset management figures regarding future investment prospects in Vietnam.

According to the article, the Southeast Asian country has become one of the leading emerging markets to invest in recently.

With half of its population under the age of 35, coupled with a rapidly expanding middle class, Vietnam is one of the most dynamic frontier economies, and has not suffered as dramatically from COVID-19 as other nations. Several wealth managers are interested, and doing business in Vietnam, including Swiss private bank Bordier & Cie.

The article quoted Khanh Vu, co-manager of VinaCapital Vietnam Opportunity Fund, as saying that the main attraction of investing in Vietnam is that country is following in the footsteps of other “Asian Tigers” that came before it, such as Japan, the Republic of Korea, and Taiwan (China).

So the future trajectory of Vietnam’s per capita income, consumer spending, and of the general wealth of its citizens is fairly clear. Furthermore, Vietnam is essentially the only Asian Tiger country left to invest in – given how far economic development of other Asian Tigers has already progressed.

Emily Fletcher, portfolio manager of BlackRock Frontiers, stated that Vietnam has been a poster child for frontier markets, having experienced strong economic and social development over the previous two decades. The country has also seen the benefits of more than 149 billion USD in foreign direct investment inflows over the past 20 years. This has driven huge increases in manufacturing production, such that exports have grown at a compound annual growth rate of 15.8 percent over this period. Domestically, demographics are in favour of sustainable growth.

Craig Martin, manager of Vietnam Holding, said that Vietnamese GDP per capita is expected to reach 5,000 USD by 2025, and by 2035 there could be a further 35 million middle-income consumers nationwide. Vietnam is a very open economy from a trade perspective, with more than 200 per cent of its GDP in exports and imports. Over the last three decades it has transformed from an exporter of raw materials, to a producer of finished and semi-finished goods, as well as exporting services – such as information technology.

With regard to the handling of COVID-19, Ewan Markson-Brown, manager of Pacific Horizon, described the country as one of the more successful in dealing with the threat of the pandemic. It has registered just over 1,000 cases and 35 deaths.

Craig Martin, manager of Vietnam Holding, emphasised that Vietnam’s handling of COVID-19 has rightly won praise and admiration from many other nations. It is too early to attribute any one factor as the key success factor, but certainly the cohesiveness of society and the single-mindedness of the people in taking on a threat has been a key part of the resilient response.

According to Martin, Vietnam, an early victim of SARS in 2003, regularly faces disease risk from avian flu and swine flu, so it has arguably developed better responses, protocols and communications to deal with emerging infections, and pandemics./.

Cambodia welcomes only 1.2 million foreign visitors because of COVID-19

Cambodia welcomed only 1,247,680 foreign arrivals in the first three quarter of this year, a fall of 74 percent year on year, as the COVID-19 pandemic is lingering on, according to the latest report by the country’s Ministry of Tourism.

The document further said in the period under review, the number of domestic tourists also halved to more than 7 million.

The ministry has projected that for the whole of this year, Cambodia will receive only 1.32 million foreign arrivals, marking a decrease of 80 percent compared to the figure last year, and 9 million domestic holiday makers or a fall of 20 percent.

It will take the country’s tourism sector from 3 to five years to return to normal, the ministry said.

An advisor to the Cambodian Chamber of Commerce said the only way to revive the sector is to wait for the pandemic to ease down so as to reform and restructure it, making it more attractive than before.

Cambodia’s health ministry on October 28 morning confirmed two more COVID-19 cases, bringing the national count to 290, including 283 recoveries and zero fatality./.

Germany’s Bayern state seeks to expand trade bond with Vietnam

An online workshop on opportunities brought about by the European Union –Vietnam Free Trade Agreement (EVFTA) for industrial enterprises in Germany’s Bayern state was held by the Bavarian Industry Association (VBW) and the Bavarian Metalworking and Electrical Associations (Bayme VBM) on October 28.

Addressing the event, Sam Pieters, a official in charge of trade affairs from the Office of the European Commission in Germany, informed participants of the advantages of EVFTA for companies, including tariff preferences and provisions that make it easier for European companies to enter the Vietnamese market.

Meanwhile, Dr. Frauke Schmitz-Bauerdick, Country Director of Germany Trade and Invest (GTAI) in Vietnam, talked about the effects of the COVID-19 pandemic on the Vietnamese economy.

The growth drivers in Vietnam will be public investment in infrastructure and energy, domestic private consumption and supply chain diversification, she said.

Günter Veit, CEO of VEIT – a business from Bayern state that has been operating successfully in Vietnam since 1994, shared his firm’s business experience in Vietnam, and how to look for business partners in the Southeast Asia country.

Participants all agreed that EVFTA is bringing positive effects for businesses in Europe, Germany, Bayern state and Vietnam.
VBW CEO Bertram Brossardt said Vietnam has become an increasingly attractive investment destination for businesses in Bayern state, even though the country is not currently the most important partner of Bayern.

EVFTA will open up new market access opportunities for businesses of both sides, he stressed, adding that with this agreement, Bayern’s businesses will have an opportunity to seek a better position in a developing market like Vietnam.

According to statistics from VBW, Vietnam – a dynamically developing market – currently ranks 39th among the most important trade partners of Bayern state, with trade turnover in 2019 reaching over 1.57 billion EUR (1.84 billion USD). Bayern exported to Vietnam goods worth over 430 million EUR, mainly machinery, data processing equipment, electronics, and optics, while it spent 1.14 billion EUR on importing Vietnamese goods, mostly leather and textile products./.

Shrimp exports forecast to reach 3.7 billion USD this year

browser not support iframe.

Vietnam’s shrimp exports are forecast to reach 3.7 billion USD this year, posting an year-on-year increase of 9.8 per cent, fuelled by the Eupean Union – Việt Nam Free Trade Agreement (EVFTA) which facilitated export to the EU markets, according to Vietnam Association of Seafood Exporters and Producers.

Accounting for 13.8 per cent of the country’s shrimp export value, the EU was the fourth largest shrimp export market of Vietnam, coming after the US, Japan and China.

Despite declines at the start of this year, shrimp exports to the EU saw significant growth in the third quarter, thanks to the impact of the EVFTA which came into effect from the beginning of August, the association said.

In September alone, Vietnam exported shrimp worth $57.6 million to the EU, representing a rise of 35.4 per cent against September last year.

Besides the EU, exports to other major markets also saw significant increases, such as to the US by 39.6 per cent, China by 22.9 per cent and the UK 54.3 per cent.

According to the Ministry of Industry and Trade, Vietnam’s shrimp export would continue to increase in the last months of this year due to the low shrimp supply globally, especially from India.

It added that Vietnam’s shrimp export also had advantages from the EVFTA./. 

WB loan disbursement up 55 percent

Disbursement of World Bank (WB) loans had increased 55 percent year-on-year as of September 30, the Ministry of Finance revealed on October 28.

The WB is a major donor to Vietnam, with more than 7.3 billion USD committed to 36 programmes and projects, of which 33 loans worth over 6.5 billion USD have gone to agreements. Three others valued at 506 million USD have been approved by the International Development Association (IDA) but are yet to be cemented in agreements.

Eight loans will have disbursement completed this year, and 10 others in 2021.

Speaking at an online conference between ministries and localities and the WB, Nguyen Xuan Thao, deputy head of the finance ministry’s debt management and external finance department, said all projects must observe regulations set by the bank regarding site compensation and resettlement, and procurement and bidding.

All adjustments to agreements must abide by legal regulations on international treaties, she stressed.

Not all WB loans are ready to be disbursed, she went on, adding that five of the 36 loans were undisbursed as of October 15, as investment procedures are yet to be completed or contracts yet to be signed, she explained.

According to the bank, the agreements of 17 of the 31 remaining loans need adjustments due to design changes and disbursement extensions, among other matters.

The finance ministry said that although the disbursement rate of WB loans is higher than it was in 2019, it remains lower than the disbursement of domestic public investment capital.

Deputy Finance Minister Tran Xuan Ha blamed project extensions, agreement and design changes as well as the slow implementation of investment procedures for the low disbursement rate.

There are also mechanisms and procedures that do not match Vietnamese regulations, he added.

To accelerate the disbursement of WB and foreign loans, participants urged relevant agencies to fulfil investment tasks in 2020, while promptly completing project adjustment procedures.

The finance ministry pledged to closely coordinate with centrally-run ministries and agencies as well as localities to review and remove bottlenecks in project building, and to work with development partners to put forth suitable regulations, thus pushing ahead with project implementation and disbursement./.

Indo-Pacific Business Forum held in Hanoi

Senior government officials, industry executives and partners gathered in Hanoi on October 28 for the Indo-Pacific Business Forum (IPBF), which began in Hanoi on October 28.

The virtual event, co-organised by the Vietnam Chamber of Commerce and Industry (VCCI) and the American Chamber of Commerce, aimed to discuss policies and seek ways to connect business communities in the region.

The first IPBF was introduced in Washington DC in 2018. This is the first time Vietnam has hosted the event after the previous one took place in Thailand last year.

At the forum, the PetroVietnam Gas Joint Stock Company (PV GAS) and the US-based AES Corporation signed a joint venture agreement for the development of the Son My LNG Import Terminal Project – a project with a total investment cost of 1.4 billion USD.

Minister of Industry and Trade Tran Tuan Anh said the event is an opportunity for US businesses and investors, as well as those in the region, to come together to share ideas and foster cooperation and partnerships.

VCCI Chairman Vu Tien Loc said the Indo-Pacific business community plays an important role as the regional economy with a focus on security, economic development and management.

In a fast-changing world and in light of the COVID-19 pandemic, technologies and digitalisation bring many opportunities for those who are able to take the lead, said Loc.

This year marks a quarter of a century since the normalisation of Vietnam-US relations.

Charles Freeman, Vice President of the American Chamber of Commerce, said there have been remarkable changes in the business environment in the region, which has prompted businesses to make adjustments.

Freeman also affirmed the importance of the region to the US’ economic interests and that its commitment to the region remained unchanged.

During the forum, the United States Agency for International Development (USAID) Vietnam Mission announced the launch of the Vietnam Low Emission Energy Program II (V-LEEP II). The five-year, 36-million USD programme is to accelerate Vietnam’s transition to a clean, secure, and market-driven energy system.

USAID V-LEEP II will focus on improving government energy planning practices; increasing competition and private sector involvement in energy service provision; deployment of advanced, clean energy systems; and improving grid planning to incorporate clean energy transmission. It will also help Vietnam attract qualified investors for advanced energy projects and advise private firms to develop high quality and bankable projects./.

210 million USD mobilised via October 28 G-bond auction

A total of 4.87 trillion VND (approximately 210 million USD) was mobilised for the State Treasury through a Government bond auction at the Hanoi Stock Exchange (HNX) on October 28.

The Treasury offered 8 trillion VND worth of G-bonds, including 2 trillion VND worth of 7-year bonds, 3.5 trillion VND of 15-year bonds, 1 trillion VND of 20- year bonds and 1.5 trillion VND of 30-year bonds.

It raised 250 billion VND worth of 7-year bonds with an annual yield rate of 1.55 percent, down 0.35 percent from the auction on March 11.

It mobilised 3.5 trillion VND worth of 15-year bonds with an annual yield rate of 2.76 percent, down up 0.02 percent from the previous auction on October 21.

A total of 720 billion VND was mobilised from 20-year bonds with an annual interest rate of 3.02 percent, unchanged from the October 21 auction.

Bonds with 30-year maturity raised 400 billion VND with an annual interest rate of 3.25 percent, unchanged from the previous auction on October 21.

So far this year, the State Treasury has collected 260.116 trillion VND from G-bond auctions./.

Chile opens door for Vietnam’s pomelo

Chilean authorities have granted permission for Vietnam to ship pomelo to the Latin American market, according to Minister of Agriculture of Chile Antonio Walker.

The Chilean official revealed the information while hosting a reception for Vietnamese Ambassador to Chile Nguyen Ngoc Son to discuss measures bolstering the bilateral relations in agriculture.

During the reception, Walker spoke highly of Vietnam’s dynamic economic development, voicing his gratitude to the country for opening its door to Chile’s cherry.

The Chilean government hopes to expand cooperation with Vietnam in agriculture, not only in opening markets for farm produce but also in agricultural production and rural development, he added.

For his part, Son said that the Vietnamese government hopes to strengthen agricultural cooperation with Chile, an important partner of Vietnam in Latin America, especially in the application of science-technology in clean agriculture, climate change adaptation and mitigation of natural disaster impact, and forest management and exploitation, along with further collaboration in multilateral mechanisms that the two countries are signatories, including the Asia-Pacific Economic Cooperation (APEC) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)./.

ASEAN to take part in World Expo Dubai

The ASEAN Secretariat has announced that it will participate in the WorldExpo2020, scheduled to take place in October next year in Dubai, the United Arab Emirates (UAE).

Originally slated from October 20 to April 10, 2021, the event has been rescheduled from October 1 next year to the end of March 2022 due to the COVID-19 pandemic.

About 200 countries and international organisations are expected to join the WorldExpo2020, under its theme “Connecting Minds, Creating the Future”.

Held once in every five years, this is the first ever World Expo to be held in the Middle-East, Africa and South Asia (MENASA) region since its inception in 1851.

The last time the WorldExpo was convened in Asia was in Shanghai in 2010.

Lee Yoong Yoong, Director for Community Affairs of ASEAN Secretariat and ASEAN Commissioner-General at WorldExpo2020, highlighted that Expo2020 provides ASEAN with a credible podium to showcase its regional integration story.

The ASEAN Secretariat looks forward to welcoming international guests and global participants to the ASEAN pavilion to learn more about the region and to better understand its diverse but yet inclusive traits, he added.

During the course of WorldExpo2020, visitors to the ASEAN Pavilion can sample understanding and knowledge of ASEAN’s rich socio-cultural diversity and experience how the region is building towards a community of opportunities through the many regional architectures and platforms of cooperation to improve the lives of its people, increase their mobility and inter-connectivity, and ensure a sustainable future.

Besides the ASEAN Secretariat, all ASEAN members are to participate in WorldExpo2020.

Each member country will have their respective pavilion to display their national contents./.

Regional cooperation to develop supporting industries

The Sai Gon Hi-tech Park and industrial parks and economic zones in the southern provinces of Long An, Binh Duong, Dong Nai and Ba Ria-Vung Tau will work together to develop supporting industries under an agreement clinched on October 28.

This is part of the programme to develop supporting industries in Ho Chi Minh City during 2019-2025 under the municipal People’s Committee’s Decision No.2869/QD-UBND dated July 5, 2019.

The programme aims at shaping a network of small and medium-sized enterprises in supporting industries through enhancing connection between the Sai Gon Hi-tech Parks and supporting companies in neighbouring provinces.

Besides, the programme helps local supporting firms expand market as well as join global supply chain.

According to deputy head of the Sai Gon Hi-tech Park’s management board Le Bich Loan, the management boards of the processing zones, industrial parks and economic zones committed to sharing basic data to outline cooperation programmes, helping supporting firms participate in production chains of global corporations.

Vietnam will have 2,000 enterprises capable of directly supplying parts for multinational corporations in ten years.

Prime Minister Nguyen Xuan Phuc signed a resolution to promote the development of support industries.

The resolution sets out the target that Vietnamese enterprises will be able to produce highly competitive supporting industrial products, meeting 45 percent of the essential needs for domestic production and consumption, accounting for about 11 percent of industrial production value by 2025.

About 1,000 enterprises are expected to be capable of supplying directly to assembly enterprises and multinational corporations, of which domestic enterprises account for about 30 percent by 2025.

By 2030, supporting industrial products will meet 70 percent of the demand; accounting for about 14 percent of industrial production value.

About 2,000 enterprises will be capable of supplying directly to assemblers and multinational corporations in the territory of the country by 2030.

To accomplish the above objectives, the resolution offers groups of incentives including developing, improving and implementing effectively and synchronously specific mechanisms and policies to develop supporting industries and create favourable conditions.

The resolution also noted the implementation of preferential interest rate policies for supporting industry enterprises and processing and manufacturing industries.

Another solution is attracting investment effectively and promoting business links between Vietnamese and multinational enterprises, as well as domestic and foreign production and assembly companies; building concentrated supporting industrial parks; and developing material industries to increase autonomy in raw materials.

Resolution 115/NQ-CP also emphasised promoting the development of domestic and foreign markets.

It will also improve scientific and technological capacities to develop and create a breakthrough in technology infrastructure, technology transfer, and enhance capacity to absorb technology.

In addition, the resolution also emphasised developing human resources through national programmes and plans on skills improvements and links between training institutions and enterprises.

Finally, building and perfecting the statistical system to promote the connection between Vietnamese suppliers and multinational corporations; enhancing the effectiveness and efficiency of state management and policies on supporting industries; and improving the quality of statistics to ensure timely, complete and accurate information.

Many Vietnamese companies now confidently introduce their products to foreign firms, and not just simple products like screws, moulds and plastic packaging, but also high value-added products such as motor cores, electronic chips and circuit boards.

To promote the development of supporting industries, the Department of Industry and Trade is drafting an investment stimulus programme for 2021 – 25 for supporting industry enterprises to improve production technologies and equipment and make more products meeting global corporations’ requirements and entrench themselves in global supply chains.

Supporting industries are key to raising the value of the industrial production, and promoting them is vital to attracting more giant foreign investors to the city./.

Advanced technology applied in audit activities at SAV

In addition to promoting the application of information technology (IT) in its management and professional endeavours, the State Audit Office of Vietnam (SAV) has also installed new technologies to better conduct its activities.

Initial results showed the application of information technology has brought about notable changes in audit activities, paving the way for turning technology into an important tool for the improvement of such tasks.

The efforts also demonstrate the firm commitment of the SAV, as Chair of the Asian Organisation of Supreme Audit Institutions (ASOSAI) for the 2018-21 tenure, to changing audit methods.

In the face of a surging wave of technology that is making its way into the audit sector, updating and staying abreast of new technology in order to apply them in audit activities is an essential action and core solution to improving the quality and efficiency of audit activities.

Aware of the role technology plays in the sector’s activities, the SAV has studied and integrated new technologies that yielded fruitful results compared to traditional methods.

Given the complexities of audit activities in urban land management, which deliver low effectiveness, a group of auditors at the Regional State Audit Office No 12 sought out software and apps on urban land management, compensation, and support for the re-settlement of residents. They include Global Mapper and Map Tiler, which are designed to help auditors scan and analyse digital data on land use plans, areas of land lots, and actual land use compared to plans.

The software has made the work much easier for auditors and help them save a great deal of time compared to previously. Regarding the audit of land use plans, for instance, auditors used to work on paper documents and maps provided by relevant units. But it was difficult to uncover faults when comparing paper maps. Audit efficiency remained low as a result and was time-consuming.

The use of software and apps, meanwhile, helps auditors cut time comparing maps and determining which parts do not match.

Those tools are also able to accurately join planning maps together into a mapping system with GPS. Auditors can therefore pinpoint the location of land lots and quickly detect any violations in land management.

In regard to bank auditing, software has helped auditors easily review accuracy in the classification of debts and budgets for risk management, thereby cutting risks caused by the manual editing of data on classifying bank debts and helping audit teams agree on common steps when handling a sole task for various branches of a bank.

Along with IT application, other advanced technologies have been applied over the recent past and posted positive results. Of particular note, the use of remote sensing in the auditing of mining operations in Thuy Nguyen district in northern Hai Phong city, conducted by Regional State Audit Office No 6, proved the technology’s effectiveness.

Thanks to technological application, the SAV has identified the foundations for determining the exact area for natural resources exploitation and the actual volume of exploited minerals, thus preventing the risk of illegal mining, which causes losses and environmental damage.

Results showed that remote sensing improved efficiency in State management over the exploitation of natural resources, thus raising the role of the SAV in public asset protection.

In addition to remote sensing, over time, the SAV has bolstered the use of modern apps in auditing, including ultrasonic testing (UT) detection technology and computer-assisted audit tools and techniques (CAATs).

As audit activities have significantly improved with the application of new technologies, the number of violations discovered through auditing has surged and all units have now installed and are using new software./.

PV GAS, AES Corporation sign deal on Son My LNG import terminal project

The PetroVietnam Gas Joint Stock Company (PV GAS) and the US-based AES Corporation have signed the term sheet of the joint venture agreement for the development of the Son My LNG Import Terminal Project – a project with a total investment cost of 1.4 billion USD. 

This signing, which was held virtually on October 28 on the sidelines of the Indo-Pacific Business Forum, came near the one-year anniversary of the historic agreement the AES Corporation signed with the Vietnamese government to build the 1.8-billion-USD Son My 2 combined cycle gas turbine (CCGT) power plant.

PV GAS General Director Duong Manh Son and Executive Vice President and Chief Operating Officer of the AES Corporation Bernerd Da Santos inked the deal under the witness of officials from the Vietnamese and US governments.

The Son My LNG Import Terminal Project will help meet the demand for gas and power in the southern key economic region and the whole country in general, thereby ensuring national energy security, Son said.

The Son My LNG Import Terminal Project will be located in the south central province of Binh Thuan with the total capacity of up to 450 TBtu, to supply gas to newly built gas-fired power plants of about 4,500 MW, other existing gas-fired power plants, and industrial customers. Together, the 2.2 gigawatts power plant and terminal will play a major role in shaping Vietnam’s energy future by diversifying the energy mix with imported LNG as well as meeting the country’s increasing demand for sustainable and affordable electricity./.

Source: VNA/VNN/VNS/SGGP/VOV/NDO/Dtinews  

Source: https://vietnamnet.vn/en/business/vietnam-business-news-headlines-october-30-684525.html

Business

China-ASEAN Expo opens, featuring digital economy, RCEP

Published

on

The 17th China-ASEAN Expo and China-ASEAN Business and Investment Summit kicked off on Friday, highlighting booming digital economy cooperation and the implementation of a recently signed major trade pact.

Chinese President Xi Jinping called for cultivating a closer community with a shared future for China and the Association of Southeast Asian Nations (ASEAN) when addressing via video the opening ceremony.

Chinese President Xi Jinping addresses the opening ceremony of the 17th China-ASEAN Expo and China-ASEAN Business and Investment Summit via video on Nov. 27, 2020. (Xinhua/Li Xueren)

This year’s expo aims to deepen cooperation in trade, the digital economy, science and technology, health, and other fields.

With an exhibition area of 104,000 square meters, the expo has 5,400 booths in Nanning, capital of south China’s Guangxi Zhuang Autonomous Region. More than 1,500 enterprises from home and abroad will participate virtually in the four-day event, according to the organizers.

The expo will also host 11 high-level forums and more than 160 economic and trade promotion activities.

China-ASEAN Expo opens, featuring digital economy, RCEP

Booming digital cooperation

This year is designated as the China-ASEAN Year of Digital Economy Cooperation. Strengthening digital economy cooperation was the common call of ASEAN leaders at the opening ceremony.

ASEAN’s digital economy is estimated to increase from 1.3 percent of the group’s GDP in 2015 to 8.5 percent in 2025, according to ASEAN Secretary-General Lim Jock Hoi, adding that China is leading the development of digital infrastructure and is an important partner of ASEAN in promoting the digital economy in the region.

This year’s expo also highlights the Regional Comprehensive Economic Partnership (RCEP), the world’s biggest trade pact, which was signed earlier this month by 15 Asia-Pacific countries including ASEAN’s 10 member states and China. It was a massive move for regional economic integration, multilateralism and free trade.

China-ASEAN Expo opens, featuring digital economy, RCEP

The signing ceremony of the Regional Comprehensive Economic Partnership (RCEP) agreement is held via video conference in Hanoi, Vietnam, Nov. 15, 2020. (VNA via Xinhua)

The expo features an exhibition area, and enterprises from RCEP countries including Japan, the Republic of Korea, Australia and New Zealand have participated in the event, according to Wang Lei, secretary-general of the expo’s secretariat.

High-level dialogue conducted during the expo will promote greater participation from RCEP members, said Wang, adding that the expo will help integrate the market advantages and resources of the 10 ASEAN members with the capital and technical advantages of other RCEP members.

“I believe that the RCEP will also provide a solid foundation for an open, inclusive, and rules-based global trade environment,” said Myanmar President U Win Myint at the expo’s opening ceremony.

Xu Ningning, executive president of the China-ASEAN Business Council, said that opening up the markets of the 15 countries to each other will bring about new changes and closer regional cooperation. 

(Source: Xinhua)

Source: https://vietnamnet.vn/en/business/china-asean-expo-opens-featuring-digital-economy-rcep-694444.html

Continue Reading

Business

VNR petitions for reduction of infrastructure charge

Published

on

Passengers board a train. VNR has proposed an infrastructure use fee reduction – PHOTO: LE ANH

HANOI – Vietnam Railway Corporation (VNR) has proposed reducing the infrastructure charge from 8% of its railway transport revenue to 2% due to the difficulties caused by Covid-19.

The proposal has been sent to the Ministries of Transport and Finance and the Commission for the Management of State Capital at Enterprises.

This year, VNR may generate nearly VND3.2 trillion in revenue and its losses were estimated at VND643 billion. It has minimized its operation cost and furloughed its staff.

VNR and transport firms have encountered cash flow difficulties to maintain their operations. They are finding it hard to overcome their budget deficit, VNR Chairman Vu Anh Minh said.

VNR needs VND320 billion in 2020 and VND350 billion in 2021 to make good its losses.

VNR’s railway transport revenue was estimated at VND2.7 trillion this year. With this revenue, it will have to pay VND213 billion as the infrastructure use fee.

If the proposal to reduce the infrastructure use fee is approved, the fee will be cut by VND160 billion. The reduced amount in 2021 will be an estimated VND179.5 billion.

Thus, the firm can make good half of its budget deficit.

Source: https://english.thesaigontimes.vn/79630/vnr-petitions-for-reduction-of-infrastructure-charge-.html

Continue Reading

Business

Mekong Delta expressway network expansion: infographic

Published

on

Source: https://e.vnexpress.net/infographics/economy/mekong-delta-expressway-network-expansion-infographic-4200146.html

Continue Reading

Trending