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VIETNAM BUSINESS NEWS NOVEMBER 23

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Demand for industrial, logistics estates at core of enquiries next year: Savills

Demand for industrial, logistics estates at core of enquiries next year: Savills hinh anh 1

Demand for industrial and logistics estates in addition to ready-built factories and warehouses will continue to be the core of enquiries next year, according to an expert from property consultancy Savills Vietnam.

“However, in terms of new trends, data centres and cold storage facilities are in demand and have gained traction in 2020 and 2021,” John Campbell, manager of Industrial Services at Savills Vietnam told the Vietnam Investment Review. “Next year, we expect this to continue, as Vietnam is now on the radar for hyperscale facilities.”

Low-value industries are beginning to set up elsewhere in Southeast Asia as Vietnam no longer offers the same incentives, he said, adding that these industries such as textiles and furniture struggle to source affordable labour and land in Vietnam.

However, foreign and high value-added investors remain bullish on Vietnam’s long-term growth, Campell noted.

He further said that Vietnam is expected to continue its move up the value chain thanks to its stable growth, business climate, FTAs, and global production relocations.

In 2022 and beyond, it is also expected that some forecast trends to continue to emerge, such as Industry 4.0 and smarter manufacturing, modernising supply chains, sale-leasebacks, new IZ models and modern masterplans, data centres, and cold storage, he continued.

“The Government’s re-opening plan has instilled confidence in developers and investors,” the expert stated. “A successful 2022 will largely rely on international flights resuming, but the fourth quarter of 2021 is already looking more promising than the first three quarters.”

“Coupled with an encouraging re-opening plan, the Government’s avowed support for foreign investors and the sheer resilience and adaptability of local enterprises are promising. It paints a reassuring picture that not only will the country recover but is likely to come back stronger than ever.”/.

Top five start-ups in AAC 2021 call for capital

A festival calling for investment capital for top five start-ups competing in the AI Accelerator Challenge (AAC) 2021 was held in Hanoi on November 23.

The event was held by the Vietnamese Ministry of Science and Technology with the support of the Aus4Innovation programme.

Launched in February 2021 with the theme ““AI in Pandemic – Adapting to the new normal”, the AAC 2021 aims to seek, nurture and develop the most promising AI applications in the fields of finance, trade, electronics, telecommunications, agriculture, health care, education, transportation and smart city development.

Among 111 entries, 15 were chosen for training and the best five were eligible for a 16-week specialised training.

At the festival, representatives from the five start-ups presented their potential to investors, partners and start-up community to call for capital and seek cooperation opportunities.

Director of the Aus4innovation Programme Kim Wimbush said via funding initiatives to promote Ai applications, Australia is delivering on its commitment to helping Vietnam overcome the pandemic and restore its economy for a long-term./. 

Golf tourism – Vietnam’s new advantage

Golf tourism has emerged as a new advantage for Vietnam to attract international holidaymakers, especially after the COVID-19 is brought under control, heard a seminar in the northern province of Quang Ninh on November 23.

Deputy head of the Vietnam National Administration of Tourism Ha Van Sieu said Vietnam has favourable conditions to develop golf tourism, adding that after the pandemic, the country is focusing on the safest tourism products.

He noted that Vietnam has been named the World’s and Asia’s Best Golf Destination 2021 at the eighth annual World Golf Awards. It is the second year that Vietnam has been honoured with the world title and the fifth consecutive year with the Asian title since 2017.

Quang Ninh province has been seen as a leading golf tourism destination in Vietnam with golf courses that meet international standards like FLC Golf Club Halong, Tuan Chau and Vinh Thuan-Mong Cai golf courses.

The locality has recently started the construction of the 27-hole Dong Trieu golf course that can serve up to 800 guests at a same time.

Director of the provincial Department of Tourism Pham Ngoc Thuy said Quang Ninh wishes to partner with travel companies and the media to promote golf tourism of Vietnam and the province in particular.

Quang Ninh is also one of the five localities, along with Kien Giang, Khanh Hoa, Quang Nam and Da Nang, selected for the pilot programme to welcome foreign tourists after a long pandemic hiatus.

At the seminar, the participants looked into issues regarding golf tourism development, and shared the view that Vietnam should target golf tourists from East-North Asia in the immediate future./.

PM affirms policy of quickly removing obstables for foreign businesses

The Vietnamese Government will continue creating an environment conducive to foreign businesses and assign ministries, agencies and localities to deal with their difficulties in line with Vietnam’s law, said Prime Minister Pham Minh Chinh.

The Government leader made the statement at a reception on November 23 for executives of major Japanese corporations in the fields of energy, apparel, retail, consumer goods and infrastructure, as part of his ongoing visit to Japan.

He noted that if any problems are not solved, they could directly report them to him.

At the meeting, the PM congratulated the Japanese firms on their successful operations in Vietnam and welcomed their expansion of investment in fields of Vietnam’s demand such as green and renewable energy, digital transformation, e-commerce and sustainable development.

Chinh suggested them financially assist Vietnam in improving human resources up to international standards, share management experience and devise strategies to export Vietnamese goods.

He also informed that Vietnam is safely, flexibly adapting to and effectively controlling the pandemic for socio-economic development.

Business executives thanked the Vietnamese Government and localities for their support over the past years. They described Vietnam as a significant and strategic market and wished to expand their operations in various areas in the country./.

Vietnamese firm exports canned clams to Europe

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Lenger Seafoods Vietnam Co., Ltd based in the northern province of Nam Dinh on November 22 marked the first-time export of a container of canned clams to Europe.

The container, with 200,000 cans, is the first batch in an order of 2 million cans in ten containers, which will be delivered in 2022.

According to Lenger Seafoods Vietnam, the export of products to fastidious markets like the EU is the result of many years of modernising canned clam production lines, and efforts of the firm to seek markets.

Recently, Lenger Seafoods Vietnam has installed and put a modern equipment line with a capacity of up to 12 million cans per year into operation. The treatment of wastes after processing also received due investment to meet European standards./.

Vietnam-Malaysia-India container shipping route to be inaugurated

The Vietnam Maritime Corporation (VIMC) announced on November 23 that it will inaugurate a container shipping route linking Vietnam, Malaysia and India on November 25.

A VIMC representative said the route is expected to ease pressure on cargo transportation, stabilise the supply of transport services and support domestic firms.

On October 26, the first Vietnamese container ship passed through Malacca Straits to bring goods to Malaysia and India – major markets of the domestic exporters and importers.

The Hai Phong – Klang Port – Calcutta – Klang Port – SP-ITC route will link Ho Chi Minh City and Hai Phong’s ports with the largest gateways of India, saving transport time by over 10 days.

Next year, VIMC will continue investing in a fleet of specialised, high-capacity and modern container ships, seeking cooperation opportunities with foreign partners, perfecting its management model to become a national container transport group.

Due to COVID-19 pandemic, Vietnamese exporters and importers incurred higher logistics costs, including container shipping costs on waterway. Delivery time also prolonged, affecting their orders and prestige./. 

Thai firms interested in investing in Binh Duong

Many Thai businesses are interested in the dynamic development of the southern province of Binh Duong over the past years, Minister Counsellor from the Thai Office of the Board of Investment Audsitti Sroithong said at a teleconference held by the People’s Committee of Binh Duong and Becamex IDC on November 23 to call for investment from Thailand.

Speaking from Hanoi, the Thai official named many big Thai businesses which have invested in Binh Duong, such as Srithai Vietnam, SCG Vietnam, Kraft Vina, CP Group, Red Bull Vietnam and BJC Vietnam. 

Director of the Department of External Affairs Le Phu Hoa said Thailand currently ranks 13th among 65 foreign investors in Binh Duong with 40 projects worth more than 685 million USD.

Despite the impact of the COVID-19 pandemic this year, Binh Duong managed to maintain a GRDP growth of 7 percent.

In the first ten months of this year, the province’s export revenue was estimated at 26.4 billion USD and import value at 21.4 billion USD. The province drew more than 1.92 billion USD in foreign investment in the period. 

As of October 31, the province was home to 4,008 projects worth 37 billion USD from 65 countries and territories, ranking second nationwide in terms of FDI attraction behind Ho Chi Minh City.

It also established bilateral relationship with 10 foreign cities and provinces and has become a partner of four international cooperation organisations. It is also an official member and trustworthy partner of the ICF, the Horasis Asia Meeting and the World Trade Centres Association.

Leaders of Binh Duong affirmed support and assistance for the business community, and asked the Federation of Thai Industries, the Thai Business Association, the Thailand – Vietnam Business Association and the Vietnamese Embassy in Thailand to assist the province in expanding ties with Thai investors.

Participating Thai business delegates engaged in open discussion with provincial officials at the event./.

Vietnam, Russia boost agricultural, aquatic trade ties

Delegates at a forum on November 23 suggested Vietnamese firms further study the Russian market to increase the export of agricultural and aquatic products to the country.

The online forum was jointly held by the Vietnamese Ministry of Agriculture, Rural Development (MARD), the Russian Ministry of Agriculture, the Russian Embassy in Vietnam, and the Vietnamese Embassy in Russia.

According to MARD Deputy Minister Tran Thanh Nam, Vietnam is holding No. 1 position in trade turnover with Russia in Southeast Asia, and is Russia’s sixth largest trade partner in Asia-Pacific.

Two-way trade reached 4.5 billion USD during the 2018-2020 period, of which farm produce accounted for around 18-20 percent, or 900 million USD each year.

In the first 10 months of this year, Vietnam’s agro-forestry-fishery export to Russia stood at 469 million USD, up 32.6 percent year-on-year.

Vietnam mainly shipped aquatic products, coffee, cashew nuts, fruit, tea, wood and rice to Russia, while importing aquatic products, wheat, fertilizers, timber, meat and dairy products.

The two sides should make use of their advantages and turn challenges into opportunities amid the COVID-19 pandemic, Nam said.

Russian Deputy Minister of Agriculture Sergey Lvovich Levin said the Vietnam-Eurasian Economic Union (EAEU) Free Trade Agreement has opened up trade opportunities for the two countries.

Vietnam is a dynamic and developed market in the region, the official said, stressing the two countries would promote their agricultural trade to a new level.

Echoing Levin’s views, Vietnamese Trade Counselor in Russia Duong Hoang Minh said thanks to the EAEU, most of Vietnam’s agricultural and aquatic exports to Russia have enjoyed a zero tariff.

He suggested Vietnamese enterprises participate more in major Russian exhibitions to further study the market, thus boosting agricultural and aquatic export to the country.

In addition, they should invest more in the products that have advantages like coffee, aquatic products and processed fruit, he said, explaining that raw material exports bring about low economic values.

To Tuong Lan, Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), suggested agencies of the two countries work to remove difficulties facing their businesses.

She called on the Russian Federal Service for Veterinary and Phytosanitary Surveillance to allow more Vietnamese seafood enterprises to enter the Russian market, saying the two sides can promote bilateral payments in local currencies and launch rail services to ease the pressure on the sea route.

Nam expressed his hope that during the upcoming visit to Russia by President Nguyen Xuan Phuc, the two countries’ competent agencies will continue to review regulations on food safety, and expand the list of exporters./.

Vietnam’s corrosion-resistant steel faces anti-circumvention probe in US

The US Department of Commerce (DOC) has received a request for investigation into the alleged circumvention of anti-dumping duties by Vietnam’s corrosion-resistant steel products (CORE) made from cold rolled steel (CRS) and hot rolled steel (HRS) imported from Japan.

The request was submitted by Steel Dynamics, Inc., a domestic manufacturer of the US, according to the Trade Remedies Authority of Vietnam (TRAV).

The plaintiff held that after the US investigated and imposed anti-dumping duties on the CRS and HRS from Japan in 2015, the import of those products from Japan into the US has declined considerably while the import of CORE from Vietnam has increased sharply.

It accused Vietnam of importing the CRS and HRS from Japan to manufacture the products subject to investigation, and that this manufacturing was not considered substantial modifications as it only added a little to the total CORE value exported to the US.

The US is imposing anti-dumping duty rates of 71.35 percent and 26.81 percent on the CRS and HRS imported from Japan, respectively.

TRAV asked related business associations, producers, and exporters to review the export of the investigated products, learn about the US’s investigation procedures, provide information requested by the DOC, and keep contact with TRAV to receive assistance when necessary.

In 2018, the US launched a similar probe into Vietnam’s CORE products, which it found to have circumvented duties on products from China, Taiwan (China), and the Republic of Korea. Given this, the Vietnamese products were subject to the duties levied on similar products from China, Taiwan, and the RoK./.

Vietnam seeks to beef up trade, investment ties with Australia

Vietnamese Ambassador to Australia Nguyen Tat Thanh paid a working visit to Victoria State to conduct activities to promote trade and investment cooperation between Vietnam and Australia.

During the trip from November 18-20, the ambassador met with leaders of the Melbourne Chamber of Commerce, Australian Trade and Investment Commission (Austrade), RMIT University, LinFox Group, rhe Vietnamese Entrepreneurs’ Association in Australia, and Vietnamese community in Victoria.

Working with Australian partners, Ambassador Thanh underlined that the Vietnamese economy has a high level of openness, especially when new generation free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has become operational and the Regional Comprehensive Economic Partnership (RCEP) is to take effect.

Over the past two years, despite impacts from COVID-19, positive signs have been seen in Vietnam’s exports to Australia, especially farm produce. Specifically, exports of fruits and vegetables rose 27.65 percent, seafood 16.37 percent, rice 30.32 percent, peppercorn 33.03 percent. Meanwhile, garment and textile exports to Australia also enjoyed increase of 40.54 percent, while that of transport vehicles and spare parts rose 120.61 percent, steel products 72.43 percent, electric cables 85.14 percent, and iron and steel 216.73 percent.

Trade between Vietnam and Australia reached a record of 10 billion USD in the first half of 2021, representing 50 percent rise year on year.

The ambassador held that the results revealed that Australian consumers prefer Vietnamese products.

Australian partners agreed that the Vietnamese and Australian economies can supplement each other. Vietnam is a promising destination for Australian firms, they noted, stressing that Australia welcomes Vietnamese investors.

Jeremy Blackshaw, Director of the Melbourne Chamber of Commerce and MinterEllison’s International Managing Partner, highly valued investment opportunities between Vietnam and Australia. He pledged to support Vietnam in trade promotion and attract more Australian investors.

Meanwhile, David Fox, head of Linfox, vowed to help strengthen logistics cooperation between Vietnam and Australia, initially through the Avalon airport construction project between Linfox and Sovico Group of Vietnam. Linfox will also help connect businesses between the two sides, he said.

Prof. Peter Coloe, Vice President of RMIT University, revealed that the university plans to expand the scale of RMIT Vietnam to attract more students.

On the occasion, Ambassador Thanh cut the ribbon to inaugurate the Vietnam-Australia Trade and Investment Promotion Centre, and launched the programme to build trademark for Vietnamese tra fish and catfish in Australia, as well as promote Vietnamese frozen passion fruits./.

Businesses advised to avoid basic mistakes when exporting farm produce to EU

Vietnamese enterprises should avoid basic mistakes when exporting food and agricultural products to the European Union (EU), heard a consultancy session for exports to Belgium and the EU which was held by the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade on November 22.

Head of the Vietnam Trade Office in Belgium and the EU Tran Ngoc Quan said that the EU-Vietnam Free Trade Agreement (EVFTA) is a huge advantage for Vietnamese businesses. Therefore, he advised them to do business methodically, establish sustainable relations, and not engage in commercial frauds or transshipment of goods for other countries to seek unfair profit.

Currently, the EU is a big importer of agricultural products in the world. However, this market has high requirements in terms of quality, food hygiene and safety, and those related to the environment and labour.

Vietnamese exporters were recommended to pay more attention to the union’s new regulations on farm produce and food, including those related to maximum residue limits (MRL) and marketing.

It was necessary to learn about the European Green Deal – a set of policy initiatives by the European Commission (EC) with the overarching aim of making the European Union climate neutral in 2050 – so as to improve Vietnamese businesses’ export capacity, experts said./.

Vietnam’s central localities shake hands to attract more Korean tourists

Four central localities including Da Nang, Quang Nam, Thua Thien-Hue and Quang Binh jointly held a webinar on November 22 to promote tourism to the Republic of Korean market.

Vietnamese Ambassador to the RoK Nguyen Vu Tung, Korean Consul General in Da Nang city Ahn Min Sik, and over 150 delegates representing travel agents and businesses of the two countries, including around 80 from the RoK, attended the event.

The webinar took place right after Quang Nam and Da Nang announced and implemented their plans to welcome international visitors back as accepted by the Ministry of Culture, Sports and Tourism. At same time, many Korean travel partners have expressed their desire to organise charter flights and closed tours for their customers during the peak tourism season at the end of 2021 and the New Year holidays of 2022.

Speaking at the event, Deputy Director of Da Nang’s Department of Tourism Nguyen Xuan Binh said that the Vietnamese Government has agreed to allow Da Nang, Phu Quoc, Khanh Hoa, Quang Nam and Quang Ninh to open their doors to international visitors. The tourism ministry has also issued guidance on implementing a pilot programme to welcome foreign tourists in three phases, starting from November 2021. It is expected that in June 2022, when the pandemic is well under control, Vietnam will be fully opened to international tourists.

Tung stated that the webinar was a good chance for parties involved to have initiatives and proposals and discuss measures to restore tourism to create a motivation for economic development, thus helping to deepen the two countries’ relations.

Korean Consul General in Da Nang city Ahn Min Sik said the central region in general and Da Nang in particular have been long favourite destinations of Korean holiday-makers.

The number of Korean tourists to the central region of Vietnam increased continuously during 2015-2019, from 210,000 in 2015 to 1.8 million in 2019 before the COVID-19 pandemic broke out. The 2019 figure accounted for 41 percent of the total number of Korean visitors to Vietnam, he said./.

IT application, digital transformation in trade promotions stepped up

Deputy Prime Minister Vu Duc Dam has signed a decision approving a project to promote information technology (IT) application and digital transformation in trade promotion activities in the 2021-30 period.

The project is to improve quality and efficiency in activities of the Government’s trade promotion agencies, firms, cooperatives and household businesses; and raise public awareness and capacity of IT application and digital transformation so as to promote foreign and domestic trade, contributing to the restructure of the industry-trade sector.

It strives to build a trade promotion ecosystem and a database by 2025.

All administrative procedures in the field will be available on the National Public Service Portal with 90 percent of businesses being satisfied with the process launched on the virtual platform.

The ecosystem must be built in a consistent and concerted structure in accordance with the framework of Vietnam’s e-Government development strategy./.

RoK high quality products promoted in Vietnam

The Korea Trade-Investment Promotion Agency (KOTRA) has announced that it is running an event to promote the Republic of Korea (RoK)’s high quality consumer products in Vietnam at the Estella Place shopping mall in Ho Chi Minh City and Shopee e-commerce platform.

The promotion will last until November 28.

RoK public broadcaster KBS reported that the KOTRA will introduce more than 100 products including cosmetics, foodstuff and household appliances which attracted attention at the largest-ever ‘Korea Sale FESTA 2021’ shopping event held in the RoK earlier this month.

This is the first time that KOTRA has held an on-site event since July, after a wave of COVID-19 outbreaks forced many Vietnamese localities to apply social distancing measures. Major RoK brands operating in the Vietnamese market will take part in the promotion.

Earlier, the agency partnered with Shopee to promote events and hold livestream sales.

Furthermore, KOTRA is planning to run a pop-up store in HCM City’s District 2 until the end of next July./.

Vietnam seeks stronger cooperation with Belgium’s Antwerp province

Vietnam wants to capitalise on chances to foster cooperation between its localities and Belgium’s Antwerp province in potential fields such as seaports, renewable energy, climate change adaptation and education, Ambassador to Belgium Nguyen Van Thao has said.

Thao made the remarks during working sessions with leaders of the Belgian province and the Port of Antwerp on November 22.

During his working session with Governor of Antwerp province Cathy Berx, he hailed Antwerp as the first smart city of the Flemish Region and a pioneer in Europe.

Sustainable urbanisation is among the main priorities of Vietnam’s green growth, Thao said, adding that three Vietnamese cities of Hanoi, Ho Chi Minh City and Da Nang have joined the ASEAN Smart Cities Network.

Therefore, Vietnam hopes to learn from Antwerp’s experience in Industry 4.0 development, smart logistics and smart city, toward future connections between Vietnamese cities and Antwerp through the twinned relationships, the ambassador said.

Vietnam is among developing countries that showed a strong commitment in climate change adaptation. The country has an enormous demand for different renewable energy sources like offshore wind power and hydro power to obtain sustainable development goals.

At present, DEME Group from the Flemish Region, with more than 140 years of experience in the offshore energy market, has taken part in Vinh Phong offshore wind farm project in Vietnam’s southern province of Binh Thuan. It will be the first offshore wind farm in Vietnam with a designed capacity of 1,000-MW.

The Belgian hydro industry has also attracted the attention of Vietnamese inventors, including SOVICO Group, according to the diplomat.

For her part, Berx affirmed that Belgian and Vietnamese localities have numerous cooperation opportunities for development, notably in the fields of smart cities, building of green urban and sustainable development.

She highly valuated the qualifications of Vietnam’s human resources and proposed that leaders of the two sides create favourable conditions and business climate for firms, especially amid the COVID-19 pandemic that triggered disruptions in supply chains of Belgium and Vietnam.

While working with leaders of the Port of Antwerp, Thao voiced his hope that cooperation with the port will help ensure sea freight transport from Vietnam to Europe.

To bolster EU-Vietnam trade cooperation, cooperation between the two sides’ seaports, including Antwerp, will facilitate activities of Vietnamese exporters and importers.

In addition, the partnership between Antwerp and Vietnamese ports will fully tap on the strengths of a country with a coastline of over 3,000 km and various deep-water seaports, in a bid to turn Vietnam into a transit hub of goods between Asia and Europe.

The diplomat spoke highly of and hoped that Antwerp port will continue training courses for Vietnamese partners.

Managing director of the port Kristof Watershoot highly valued Vietnam’s seaport development potential, and affirmed his willingness to share experience and promote cooperation projects in seaport infrastructure and high quality personnel training in the Southeast Asian nation. The Antwerp/Flanders Port Training Centre has offered annual scholarships and partnered with vocational schools in Vietnam, and provided training for 300 Vietnamese navigation staff so far.

The Antwerp port is working to sign a cooperation agreement with Vietnamese seaports and welcome delegations from the country to share experiences, he added.

Honorary Consul of Vietnam in Belgium Baron de Grand Ry said efforts have been made to set up an association of farm produce importers to boost shipments of Vietnamese fruits to the Belgian market via the Antwerp port and distribute to other European nations, stating that the initiative could be realised next year.

Belgium currently has 78 projects in Vietnam, with a combined registered capital of 1.1 billion USD, ranking 23rd among 131 countries and territories investing in the Southeast Asian country. The projects primarily focus on seaports, infrastructure, logistics, real estate, water supply, waste treatment, electricity production and distribution, among others./.

Reference exchange rate up 5 VND

The State Bank of Vietnam set the daily reference exchange rate at 23,133 VND/USD on November 23, up 5 VND from the previous day.

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,817 VND/USD and the floor rate 22,430 VND/USD.

The opening-hour rates at commercial banks saw increases.

At 8:15am, Vietcombank raised the buying rate by 15 VND to 22,540 VND/USD, and cut the selling rate by 5 VND to 22,770 VND/USD.

Meanwhile, BIDV added 15 VND to both rates, listing 22,555 VND/USD (buying) and 22,755 VND/USD (selling)./.

Vietnamese firm exports canned clams to Europe

Lenger Seafoods Vietnam Co., Ltd based in the northern province of Nam Dinh on November 22 marked the first-time export of a container of canned clams to Europe.

Tran Dinh Luan, general director of the Directorate of Fisheries said that the export of clam products to European markets is a good signal, confirming that clam farming and processing has met strict quality standards.

The container, with 200,000 cans, is is the first batch in an order of 2 million cans in ten containers, which will be delivered in 2022.

Nguyen Ho Nguyen, director of Lenger Seafoods Vietnam said the export of products to fastidious markets like the EU is the result of many years of modernising canned clam production lines, and efforts of the firm to seek markets.

Recently, Lenger Seafoods Vietnam has installed and put a modern equipment line with a capacity of up to 12 million cans per year into operation. The treatment of waste after processing also received due investment to meet European standards.

According to vice director of the provincial Department of Agriculture and Rural Development Hoang Thi To Nga, the firm’s export orders has opened great opportunities for Nam Dinh’s aquaculture sector, helping improve incomes for local farmers./.

Enterprises in Tien Giang adopt flexible production models to revive production

Businesses in the Mekong Delta province of Tien Giang have adopted various ways to quickly restore production and business while ensuring pandemic prevention, according to Nguyen Thanh Liem, deputy head of the provincial management board for industrial zones.

In line with the Government’s Resolution 128, which provides guidance on safe adaptation and flexible and effective control of the COVID-19 pandemic, 85 companies with more than 5,900 employees in the province have adopting the three-on-site model (work, eat and rest at workplaces). 

Meanwhile, 85 other firms with nearly 70,000 labourers allowed workers to commute to the factories, Liem said, adding that there are two businesses with over 700 employees which choose the combination of the above-mentioned models.

Nissei Electric My Tho Co.Ltd allows 1,619 workers to go to the company to work and return daily. However, to meet the pandemic prevention requirement, it divided employees into small groups of between 50-100 people and arrange for them to enter and get out of the factory at different times. The break time between shifts is also adjusted to limit contact among workers and facilitate tracing when infected cases are detected.

Meanwhile, Van Duc Tien Giang Food Export Processing Co.Ltd and CP Vietnam Livestock JSC-Tien Giang Branch have adopted “three-on-site” model to ensure safety while not disrupting the production-supply chain. Supporting policies are also offered for employees to encourage them to stay with the enterprises.

The province has asked firms to regularly conduct screening COVID-19 tests for their employees in accordance with regulations, Liem said.

The provincial People’s Committee has also strengthened inspection and supervision of vaccination and testing work, as well as the handling of outbreaks arising at enterprises in industrial zones and clusters, to prevent them from spreading to the community.

Tien Giang is home to four operating industrial parks with 107 projects with a total investment capital of over 2.73 billion USD, creating jobs for over 91,000 workers. It also houses five industrial clusters with 79 projects with a total capital of over 251 million USD, generating jobs for over 17,000 workers./.

Online forum to promote Vietnam-Russia trade in agro-fisheries

An online forum promoting trade in agro-fisheries between Vietnam and Russia will be held on November 23.

Co-organised by the Vietnamese Ministry of Agriculture and Rural Development, the Russian Ministry of Agriculture, the Russian Embassy in Vietnam and the Vietnamese Embassy in Russia, the event aims to connect the two countries’ firms together, towards achieving the goal of lifting two-way trade to 10 billion USD.

Vietnam is now Russia’s top trade partner in Southeast Asia. Two-way trade between the two countries hit nearly 4.5 billion USD annually in the 2018-2020 period, 900 million USD of which was from farm produce.

Since 2018, bilateral trade in farm produce has grown strongly to around or above 900 million USD each year. In the first ten months of this year, Vietnam’s export of agro-forestry-fisheries to Russia reached around 469 million USD, up 32.6 percent annually, mostly coffee, cashew nuts, fruits, tea, wood, rice while importing aquatic products, wheat, fertiliser, wood, recently meat and dairy products.

The two countries’ businesses are advised to make better use of benefits offered by the Vietnam – Eurasian Economic Union Free Trade Agreement, under which a number of farm produce enjoy low tariff amounting to zero percent.

The event is expected to provide a platform to introduce Russia’s food safety and hygiene regulations as well as requirements for Vietnam’s fisheries processing facilities for export to Russia.

Trade organisations and associations will also share experience in agro-fisheries trade and suggest measures to boost bilateral trade./. 

Vietnam Airlines launches its own online marketplace

National flag carrier Vietnam Airlines has launched an e-commerce platform called VNAMALL (http://vnamall.vietnamairlines.com/), offering discounted deals on more than 300 products as part of its Black Friday promotional event.

It is the airline’s latest move to diversify its investment and catch up with the digital transformation trends and the rapidly growing e-commerce industry.

With VNAMALL, Vietnam Airlines expects to take advantage of its network of nearly 100 routes to bring to online shoppers distinctive high-quality products, mostly food, farm produce and wine, from prestigious suppliers and partners worldwide.

The State-run company also sells Vietnam Airlines Gift Card, the first airline service gift card ever launched in Vietnam, which allows users to exchange for air tickets or right to upgrade to Business Class on Vietnam Airlines, Pacific Airlines and VASCO flights, among others.

VNAMALL is offering 100,000 VND (4.41 USD) off and a gift to the first 100 orders of 300,000 VND and more.

To receive support, customers can call the hotline 1900 1033./.

2021-2025 economic restructuring plan focuses on digital transformation

The economic restructuring plan for the 2021-2025 period, approved by the 15th National Assembly during its second session on November 12, will focus on stepping up digital transformation and innovations, Director of the Central Institute for Economic Management (CIEM) Tran Thi Hong Minh has said.

Big changes of the world and Vietnam after the COVID-19 pandemic are requiring the country to accelerate the process of economic restructuring, as if the economic restructuring is delayed or slowed down, it will be very difficult for Vietnam to narrow the development gap with the world, overcome the middle-income trap, effectively respond to climate change, and take advantage of new opportunities of the fourth Industrial Revolution and the benefits of international integration, she noted.

The plan sets out a general goal of forming a suitable and effective structure in each industry and field, and between industries, fields and the whole economy. It also looks to develop national products based on new or high technologies, create a breakthrough in competitiveness of key economic sectors, and significant and substantive changes in the growth model and productivity, and increase the autonomy, adaptability and resilience of the economy.

The digital economy and urban economy are the new feature of the 2021-2025 economic restructuring plan, Minh stated, adding that attention will be paid to implementing solutions to perfect institutions and expand scientific and technological applications in all fields, and develop the business force, including connecting small- and medium-sized enterprises with big and FDI ones.

The plan also stressed the need for leaders of industries and sectors to change their ways of doing to increase the efficiency of economic restructuring./.

Cultural identities help PetroVietnam sail through difficulties

Harmonious economic and cultural development is the key to the Vietnam Oil and Gas Group (PetroVietnam)’s sustainable growth strategy, constituting its inner strength and brand as well as affirming its position as a strong locomotive and a pioneer in the national economy.

In its construction, formation and development process, PetroVietnam has constantly strived to overcome difficulties and challenges with the will and bravery of “fire seekers” in finding oil to enrich the Fatherland and contribute to ensuring the national energy security. It can be affirmed that the biggest achievement of PetroVietnam so far is the building of a complete and synchronous system of oil and gas industry facilities.

With the synchronous development of its oil and gas industry chain, the group has become the nucleus in the formation of concentrated industrial zones in many localities, fundamentally changing the economic structure. Its projects and works at regional level are a clear demonstration of the qualifications and capabilities of Vietnamese officials, engineers and workers in the field. They also are an important premise to promote the export of oil and gas services abroad.

Along its development path, PetroVietnam has built and accumulated strong and quality resources in terms of capital, technological equipment, and human resources in science and technology. Its strong development in both scale and speed, width and depth, from domestic to overseas arenas has generated effectiveness in many aspects and made significant contributions to the overall development of the country and the State budget, enhancing the regional and international position of PetroVietnam, and building the group’s reputable culture and brand in the domestic and international markets.

The will and efforts of oil and gas workers over the years have come from a traditional inner motivation, nurtured by a cultural depth – the PetroVietnam culture.

Last year was the most difficult period in the oil and gas group’s 45-year history. Throughout 2020, it had to focus on responding to both the complex developments of the COVID-19 pandemic and the unprecedented drop in crude oil prices. However, PetroVietnam took drastic actions, promptly issuing and effectively implementing a response package. As a result, it exceeded many important targets set for 2020.

In the first 10 months of 2021, the dual task of production – business development and the COVID-19 epidemic prevention and control became more urgent. However, the leading group, with its proactive and consistent pandemic prevention measures, implemented the PetroVietnam Cultural Re-creation Project for its entire system and members in a bit to make a change in production and business activities.

As a result, the group’s crude oil output in October exceeded 6.6 percent of the monthly plan, with the figure for the first 10 months hitting 9.09 million tonnes, and surpassing the plan by 12.4 percent. Consequently, PetroVietnam made an important contribution to the State budget revenue during the ten months, at 75.4 trillion VND (3.31 billion USD), exceeding the yearly plan by 21 percent and increasing 23 percent over the same period last year. The group, meanwhile, continued to secure a Fitch Ratings independent credit rating of BB+. It also ranked in the top five of the Profit 500 – the top 500 most profitable enterprises in Vietnam – for the fifth consecutive year.

The time when PetroVietnam was greatly affected by COVID-19 and falling oil prices was also the period when the implementation of corporate culture hit its peak across its member units, making the most of their fundamental values. The period saw the work and income of the group’s workforce negatively affected. However, what people noticed in PetroVietnam’s factories and enterprises, on offshore rigs or inland projects is the patience and solidarity to overcome difficulties. Even when the epidemic reached its peak, not a single key project and not a single factory or enterprise of the employing nearly 60,000 workers had to stop operating. Meanwhile, PetroVietnam’s socio-cultural activities and social security were still organised regularly, giving away hundreds of billions of VND to people in the central region and the needy across the country.

In conclusion, the cultural project corporate culture has become part of the solutions to promoting the synergy of the group and its units./.

Cultural identities help PetroVietnam sail through difficulties

Harmonious economic and cultural development is the key to the Vietnam Oil and Gas Group (PetroVietnam)’s sustainable growth strategy, constituting its inner strength and brand as well as affirming its position as a strong locomotive and a pioneer in the national economy.

In its construction, formation and development process, PetroVietnam has constantly strived to overcome difficulties and challenges with the will and bravery of “fire seekers” in finding oil to enrich the Fatherland and contribute to ensuring the national energy security. It can be affirmed that the biggest achievement of PetroVietnam so far is the building of a complete and synchronous system of oil and gas industry facilities.

With the synchronous development of its oil and gas industry chain, the group has become the nucleus in the formation of concentrated industrial zones in many localities, fundamentally changing the economic structure. Its projects and works at regional level are a clear demonstration of the qualifications and capabilities of Vietnamese officials, engineers and workers in the field. They also are an important premise to promote the export of oil and gas services abroad.

Along its development path, PetroVietnam has built and accumulated strong and quality resources in terms of capital, technological equipment, and human resources in science and technology. Its strong development in both scale and speed, width and depth, from domestic to overseas arenas has generated effectiveness in many aspects and made significant contributions to the overall development of the country and the State budget, enhancing the regional and international position of PetroVietnam, and building the group’s reputable culture and brand in the domestic and international markets.

The will and efforts of oil and gas workers over the years have come from a traditional inner motivation, nurtured by a cultural depth – the PetroVietnam culture.

Last year was the most difficult period in the oil and gas group’s 45-year history. Throughout 2020, it had to focus on responding to both the complex developments of the COVID-19 pandemic and the unprecedented drop in crude oil prices. However, PetroVietnam took drastic actions, promptly issuing and effectively implementing a response package. As a result, it exceeded many important targets set for 2020.

In the first 10 months of 2021, the dual task of production – business development and the COVID-19 epidemic prevention and control became more urgent. However, the leading group, with its proactive and consistent pandemic prevention measures, implemented the PetroVietnam Cultural Re-creation Project for its entire system and members in a bit to make a change in production and business activities.

As a result, the group’s crude oil output in October exceeded 6.6 percent of the monthly plan, with the figure for the first 10 months hitting 9.09 million tonnes, and surpassing the plan by 12.4 percent. Consequently, PetroVietnam made an important contribution to the State budget revenue during the ten months, at 75.4 trillion VND (3.31 billion USD), exceeding the yearly plan by 21 percent and increasing 23 percent over the same period last year. The group, meanwhile, continued to secure a Fitch Ratings independent credit rating of BB+. It also ranked in the top five of the Profit 500 – the top 500 most profitable enterprises in Vietnam – for the fifth consecutive year.

The time when PetroVietnam was greatly affected by COVID-19 and falling oil prices was also the period when the implementation of corporate culture hit its peak across its member units, making the most of their fundamental values. The period saw the work and income of the group’s workforce negatively affected. However, what people noticed in PetroVietnam’s factories and enterprises, on offshore rigs or inland projects is the patience and solidarity to overcome difficulties. Even when the epidemic reached its peak, not a single key project and not a single factory or enterprise of the employing nearly 60,000 workers had to stop operating. Meanwhile, PetroVietnam’s socio-cultural activities and social security were still organised regularly, giving away hundreds of billions of VND to people in the central region and the needy across the country.

In conclusion, the cultural project corporate culture has become part of the solutions to promoting the synergy of the group and its units./.

Thanh Hoa businesses strive to boost labour export

Facing the COVID-19 pandemic, which has led to a halt in labour export, companies operating in this sector in Thanh Hoa province have tried many ways to seek contracts for local workers.

Before the pandemic broke out, the Thien An Manpower Supply and Import – Export Company (TAMAX Group), based in Thanh Hoa, sent about 2,000 – 2,500 people, including 600 – 700 in Thanh Hoa, to work in Japan, the Republic of Korea (RoK), China, Taiwan (China), and some European countries each year.

However, COVID-19 has hampered labour export since 2020, with only half of previous years’ figures reached.

To maintain operations pending foreign markets’ recovery, TAMAX Group has made use of social networks, given advice over the telephone, and organised online recruitment. As a result, it has managed to send 170 workers of Thanh Hoa to Romania since the start of 2021, and it is also completing procedures for 120 others to work at food processing factories in this European nation.

TAMAX Director Nguyen Trung Kien said although numerous difficulties are forecast to remain, the company has built a plan for next year, under which more than 1,000 people, including 500 – 600 in Thanh Hoa, will be sent to work abroad under fixed-term labour contracts.

Having engaged in labour export for more than 10 years, the Vinaco International Labour Force Cooperation JSC has also been strongly affected by the pandemic. In the pre-COVID-19 period, it sent thousands of workers to European and Asian countries each year, but the number of people registering for labour export has dropped by over 60 percent since the pandemic began.

To prepare for markets’ recovery, the company has taken flexible actions to seek orders. As Japan, the RoK, and Taiwan have yet to open their doors to foreign workers, Vinaco is working to boost labour export to European countries, including Romania.

The Thanh Hoa Department of Labour, Invalids and Social Affairs said amid the COVID-19 pandemic, local authorities and labour export companies have been striving to maintain traditional markets like Japan, Taiwan, and the RoK. Besides, positive signs have been seen in the export of labourers to some others in Eastern Europe.

Since 2019, more than 19,700 people in Thanh Hoa have gone to work abroad, including nearly 4,000 in the first 10 months of 2021./.

Investors warned against making investment through unlicensed floors

The State Securities Commission of Vietnam (SSC) has warned investors on the risk of conducting business and investment activities on trading floors that are not organised and operated by the Vietnam Stock Exchange (VNX) and its subsidiaries.

The commission noted that recently, some organisations and individuals have invited investors to make securities transactions through foreign exchange (forex) trading floors, forex-related derivatives and virtual securities trading activities, including companies that are not licensed by the SSC.

The SSC stressed that apart from the VNX and its subsidies of Hanoi Stock Exchange and Ho Chi Minh Stock Exchange, no organisation or individual is allowed to organise and operate stock exchanges.

The SSC does not manage and supervise securities companies or organisations operating stock exchange floors that are not licensed by the commission.

Therefore, the SSC advised investors to be vigilant and carefully check information before making or engaging in transactions on unlicensed trading floors or intermediary organisations to avoid losses./.

Source: VNA/VNS/VOV/VIR/SGT/SGGP/Nhan Dan 

Source: https://vietnamnet.vn/en/business/vietnam-business-news-november-23-795622.html

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Stock market expected to cross current threshold

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During the last trading sessions of 2021, the stock market was not particularly active. The effect was being felt of unfavorable news on the macro, the most notable of which was the GDP growth of the whole year at only 2.58%.

Stock market expected to cross current threshold

The news of a new variant of the Covid-19 called Omicron was also detected in a few people in Vietnam. However, despite this turbulent news, the stock market did not react in shock. The VN Index is still moving sideways between 1,480 points to 1,500 points.

Optimistic scenario

The GDP growth rate of 2.58% in 2021 was not a surprise. Even if viewed from a future perspective, this is a positive result, because there have been many poorer growth forecasts before. For example, at the end of October 2021, the World Bank estimated the GDP growth in 2021 in the range of 2% to 2.5%. There are also a few organizations such as UOB Bank that gave 3%, and the optimistic scenario of the General Statistics Office also giving 3%. Therefore, the actual growth rate of 2.58% is still a better result than many organizations predicted, although it is still at a very low level.

However, just when there are no longer any more surprises, the stock market reacts indifferently. In the last trading sessions of 2021, the VN Index went up and down mainly due to the influence of some large-cap stocks. Statistics in the past show that the last week of the market usually grows quite positively due to the impact of maintaining a portfolio value. This year the situation is very different, especially after the growth spread of the second year of Covid-19, where the VN Index increased by about 35%, and it is no longer urgent to support the portfolio, and even profit-taking transactions determine the annual bonus. Therefore, the threshold attained of 1,500 points will still be the historic peak of the market and of 2021.

In fact, indifference to bad news is an important psychological indicator in the market. The sentiment factor and the emotional action of the crowd has always been a part of the market. So when bad news appears, the level of emotional action shows that investor sentiment is not easily swayed, because the more indifferent the market reacts, the stronger the sentiment is. Looking at it from this perspective, the volatile days at the end of 2021 of the stock market ended a wobbly economic year, with a record low growth rate, which is a good sign.

Worst maybe over

There have been many forecasts about a positive recovery of Vietnam’s economy in 2022 along with an initial forecast of a weak growth in 2021. Of course, forecasts will still be affected by many variables, such as whether the Omicron mutation can trigger a more dangerous pandemic wave, but basically the stock market still hopes that the worst is over.

Not only Vietnam’s stock market, but securities around the world are also feeling the same. The more the Omicron mutation spreads in the US, the S&P 500 set a new historic high in the last week of 2021. French, German, and British stocks are all at historic high, although the number of cases of the new strain called Omicron has also increased rapidly. The fact that the VN Index is sticking to the historical threshold of 1,500 points these days is actually an opportunity. The market has a golden opportunity now to hit a new historic high, but what is missing is an expectation to lead.

In the first week of 2022, that expectation may arise when the Extraordinary Session of the National Assembly will take place from 4 January to 11 January 2022, the important content being the consideration of the draft resolution on fiscal and monetary policies to support the implementation of the program on socio-economic recovery and development. This resolution will pave the way for the implementation of the economic stimulus package that the stock market has been waiting for since October 2021.

The market has bet in advance on this stimulus package with a growth of nearly 13% in October and November, which is the time when the VN Index made its historic peak of 1,500 points for the first time. The whole December market stopped accumulating to wait for a confirmation.

Growth forecasts of the stock market in 2022 all consider this economic stimulus package to be a push to create a boom. According to the Vietcombank Securities 2022 outlook report, growth in public spending can have a positive effect on consumer spending and private investment as consumer demand has gradually recovered and a reasonably sized economic stimulus package targeting the right sectors before the Lunar New Year will help Vietnam keep up with world recovery. GDP growth in 2022 may also reach 6.8% to 7.2%.

VNDS also expects that the Government will issue a large-scale economic support package and maintain an easy monetary policy until at least the end of the second quarter of 2022 to promote economic recovery, while GDP is expected to grow by 7.5% in 2022.

Although forecasts are regularly updated and changed based on new variables appearing over time, the above scenarios show that the stock market expectations are well-founded. The market cycle is more closely associated with the cycle of expectations, starting with a response to receive information, followed by a pause to assess the future impact and build expectations then continue an uptrend based on expectations and finally waiting time, even adjusting to confirm expectations. This cycle is often phased out compared to actual figures due to going faster. So it wouldn’t be surprising if the stock market hits a new historic high before the effects of the stimulus policies are actually seen.

The market has a golden opportunity now to hit a new historic high, but what is missing is an expectation to lead. It is expected that the Extraordinary Session of the National Assembly which will take place from 4 January to11 January 2022, will have the main focus on decision to implement the program on socio-economic recovery and development.

Source: SGGP

Source: https://vietnamnet.vn/en/business/stock-market-expected-to-cross-current-threshold-809268.html

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HCMC, Mekong Delta develop formal distribution system of farm produce

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Vice Chairwoman of HCMC People’s Committee Phan Thi Thang promised to bring goods from the Mekong Delta into wholesale markets and distribution systems in HCMC to support farmers and cooperatives for connection of supply and demand.

 HCMC, Mekong Delta develop formal distribution system of farm produce

In Cao Lanh city in Dong Thap province at the heart of the Mekong Delta, a conference about goods consumption connection between five provinces in the Mekong Delta including Dong Thap, Ben Tre, Vinh Long, Long An, and An Giang, and Ho Chi Minh City was held on January 15, 2022. Vice Chairwoman of Ho Chi Minh City People’s Committee Phan Thi Thang, leaders of provinces, and about 500 enterprises were attending.

Within the framework of the program, one day before yesterday, a delegation from Ho Chi Minh City including more than 60 enterprises led by the Department of Industry and Trade of Ho Chi Minh City visited several gardeners and agro-processing enterprises of some provinces in the Mekong Delta region.

The supply of goods in the Mekong Delta before the Lunar New Year was quite abundant, most of the goods had relatively stable prices, even some fell quite deeply. This situation has never been before.

This year, the complicated development of the Covid-19 epidemic has strongly affected purchasing power. For instance, Cao Lanh District, Dong Thap Province currently has 7,800 hectares of fruit trees, hundreds of thousands of tons of products with diverse and rich varieties such as mangoes, oranges, lemons, guava, and jackfruit put on the market each year.

This year, although it is the peak season of the Tet holidays ( the Lunar New Year), the prices of many types of products are falling deeply, driving farmers into despair. For example, jackfruit price dropped from VND40,000-VND50,000 to VND4,000-VND5,000 a kg; many other fruits also decreased about 20 percent over the same period.

Thanh Binh District in the same province has more than 3,150 hectares of fruit trees, nearly 570 hectares of aquaculture. The price of seafood of all kinds is decreasing by about 20 percent compared to 2021. Worse, an enormous volume of commodities was stockpiled before the Lunar New Year season.

Vice Chairman of Thanh Binh District People’s Committee Mai Van Doi said that over the past time, farmers, as well as many local enterprises, have improved product quality and packaging; however, fresh products have not been still processed, and no enterprises have undertaken consumption of agricultural products.

Quality Manager of San Ha Company Nguyen Huu Tri said that from September 2021, the enterprise signed a contract to purchase livestock and poultry in the Mekong Delta for the whole year 2022 at a relatively stable price.

He added that the Covid-19 epidemic has disrupted the supply chain, leading to an increase in raw materials for livestock and poultry. The company will share difficulties with farmers.

Most of the enterprises, cooperatives, and leaders of the five provinces admitted that farming, production, and processing were still fragmented and had not been linked for mutual development. In particular, in the past time, many businesses have only focused on export, neglecting the domestic market; as a result, trucks got congested in the northern border gate.

Faced with this situation, representatives of the wholesale and retail market system from Ho Chi Minh City proposed that businesses in the Mekong Delta and local departments should create commodity chains that connect local products to retailers and supermarkets.

On the other hand, farmers and businesses need to pay attention to product quality, especially paying attention to the cultivation process, traceability because supermarkets are very strict about product quality and reasonable prices.

Speaking at the conference, Vice Chairman of Ho Chi Minh City People’s Committee Phan Thi Thang assessed that the Mekong Delta has many strengths in agricultural production along with the value chain. However, farmers often tend to produce spontaneously without an understanding of market demand resulting in abundant production.

Therefore, she suggested that leaders of provinces create favorable conditions for manufacturing and exporting enterprises in Ho Chi Minh City to boost investment in projects to build material areas for a stable source of goods, traceability, reputable brand name, agricultural products with good quality. Moreover, enterprises should have sale contracts at international border gates and main border gates; thereby, creating a new, large-scale, stable, and long-term market area for enterprises in HCMC and provinces.

Source: SGGP

Source: https://vietnamnet.vn/en/business/hcmc-mekong-delta-develop-formal-distribution-system-of-farm-produce-809267.html

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E-commerce – important pillar of Vietnam’s digital economic development

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The Fourth Industrial Revolution is taking place around the world with a boom in digital technology, creating great opportunities for but also challenges to the development of each country, enterprise, and person.

E-commerce - important pillar of Vietnam’s digital economic development hinh anh 1

E-commerce has proved to be an increasingly useful tool for enterprises to surmount difficulties and grasp chances (Illustrative photo: VNA)

Vietnam’s digital economy has been growing at the fastest pace in ASEAN, about 38 percent annually compared to the region’s average of 33 percent since 2015. The country expects the digital economy will make up 20 percent of its GDP and at least 10 percent in each sector.

Vietnam’s digital economy posts fastest growth in region

In a recent interview granted to the Vietnam News Agency, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said local e-commerce has been thriving, playing an important role in economic development as well as in the future of Vietnam’s digital economy. E-commerce development is an inevitable trend in the country, and the COVID-19 pandemic serves as a catalyst for this trend to proceed faster and more strongly.

Despite the pandemic’s adverse impacts in 2020, e-commerce in Vietnam still made great strides to become one of the fastest growing markets in Southeast Asia.

According to the Vietnam E-commerce White Book, e-commerce expanded by 18 percent in 2020 to reach 11.8 billion USD, making the country the only in Southeast Asia to post a double-digit growth rate in this regard. Estimates by some major businesses in the world like Google, Temasek, and Bain & Company indicate that the digital economy of Vietnam is likely to top 52 billion USD and rank third in ASEAN by 2025.

Amid the resurgence of COVID-19 in 2021, e-commerce has proved to be an increasingly useful tool for enterprises to surmount difficulties and grasp chances generated by new demand in the market. Local consumers are strongly shifting from the traditional in-person shopping to online method via electronic platforms.

A survey by the Ministry of Industry and Trade showed that Vietnam had 49.3 million online shoppers in 2020, compared to 32.7 million in 2016.

Hanoi and Ho Chi Minh City are among the largest cities in terms of digital economic development in the region. In HCM City alone, there are currently 567 e-commerce platforms, over 20,680 websites, and 134 apps. Although the lingering COVID-19 pandemic has hindered the flow of goods, many e-commerce platforms and websites still posted fast growth.

Thanks to the digital economy, business activities have become vibrant, from advertising on social networks (Facebook, Instagram), entertainment (Netflix, Pinterest), transport (Uber, Grab, GoViet) to wholesale and retail (Lazada, Shopee).

Vietnam has emerged as one of the largest regional recipients of investment into the companies operating on IT platforms and the internet such as MoMo, Sendo, and Topica, helping turn it into an attractive destination for domestic and foreign investors.

Transboundary e-commerce – useful distribution channel for enterprises to expand market

E-commerce helps people purchase items from international markets via the internet and become “global consumers”. It also assists individuals and businesses to introduce and deliver their products to international buyers.

The engagement in the online export – import system and stages of transboundary e-commerce will generate opportunities for Vietnamese firms to perfect their products, improve capacity, and make Vietnamese brands popular among consumers around the world.

To help boost the sale of Vietnamese goods via transboundary e-commerce, the Vietnam E-commerce and Digital Economy Agency (iDEA) has launched the Vietnam National Pavilion on JD.com, an international e-commerce platform. Its partners like Vinanutrifood, Viettel Post, VPBank, and Visa also unveiled practical policies related to marketing, transport, and lending interest rates to support Vietnamese manufacturers to carry out this programme.

The Ministry of Industry and Trade has been developing and applying an array of measures such as a certified e-contract authority, guaranteed payment infrastructure for e-commerce, and a platform for managing the e-commerce product flow, which will serve as important bases for the ministry to assist e-commerce platforms and businesses using e-commerce, thus facilitating the healthy, transparent, and sustainable development of the market.

Talking about transboundary e-commerce, iDEA Director Dang Hoang Hai said it is relatively new to enterprises in Vietnam but also the start of a long journey with much needing to be done by both authorities and companies.

He expressed his belief that thanks to joint efforts by the ministry and others, central agencies, localities, and the business community, Vietnamese pavilions on foreign e-commerce platforms will be opened soon and prove effective.

Highlighting the benefits from transboundary e-commerce, Nguyen Thi Diem Hang, Chairwoman of the Board of Director of the Vietnam Organic Nutrition Food JSC (Vinanutrifood), said joining the national pavilion helps popularise the image and brand of Vietnam in the global market. It also supports Vietnamese firms to seek exporting and importing partners and build up foreign consumers’ trust in Vietnamese goods.

Developing healthy e-commerce market in Vietnam

Grasping trends and good practices of digital transformation in trade will help promote innovation in Vietnamese enterprises. On November 22, 2021, the Prime Minister issued a decision approving a plan to step up the IT application and digital transformation in trade promotion during 2021 – 2030.

However, the ministry’s Competition and Consumer Authority pointed out that e-commerce growth has also been accompanied by the surge in wrongdoings related to consumers’ interests. Data show that there are about 500 – 2,000 complaints from consumers every year, mostly about leaks of buyers’ information and scams by sellers.

To create a legal framework for protecting consumers in the e-commerce market, the Government issued a decree that amended and supplemented another on e-commerce released in 2013.

According to the new decree, sellers must publicise information about products as well as business licences and related certificates when doing business on e-commerce platforms. Besides, business activities on social networks like Facebook, Zalo, and Instagram were also placed under management.

The ASEAN Agreement on Electronic Commerce, signed in Hanoi on January 22, 2019 and taking effect on December 2 last year, set up common principles and rules for facilitating e-commerce development in the region and enhancing the rule enforcement capacity.

The deal implementation is expected to help revive the regional economy in the post-pandemic period.

Deputy Minister Tan said in the “new normal” context, e-commerce has increasingly shown its indispensable role in society when enterprises and organisations must swiftly apply digital transformation solutions to their business and management activities like switching to multi-channel retailing and using smart order management and logistics tools.

With huge market potential and the Party and State’s favourable policies, e-commerce is expected to be a contributor to the economic recovery in Vietnam when the country is moving to safely adapt to the COVID-19 pandemic.

E-commerce has been present in almost all production and business sectors, helping boost economic development. However, it is still facing a number of challenges related to consumers’ trust in items sold online, delivery and payment methods, and information security. Given this, the Government and relevant agencies should take appropriate actions to protect consumers and fuel e-commerce in the time ahead./.

Source: VNA

Source: https://vietnamnet.vn/en/business/e-commerce-important-pillar-of-vietnam-s-digital-economic-development-808836.html

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