Taiwan emerges as largest consumer of Vietnamese shrimp
Vietnam became the second largest exporter among top suppliers of shrimp to Taiwan (China) during the first nine months of the year, according to statistics released by the International Trade Centre.
taiwan emerges as largest consumer of vietnamese shrimp hinh 0Shrimp exports to the Taiwanese market enjoyed a surge of 13.9 per cent to US$41.9 million in comparison to the same period last year. This represents the most robust growth among the top 10 major importers of Vietnamese shrimp products.
This boost comes as Taiwanese consumers continue to favour the country’s black tiger shrimp, with fresh frozen black tiger shrimp being particularly popular and buyers being able to purchase the product for between US$6 and US$8 per kilo.
In addition, Vietnamese products such as frozen white-leg shrimp and other aquatic species have also become well received import items.
During the first half of this year, both Vietnam and the Central American nation of Honduras experienced rapid growth in shrimp exports to Taiwan. In contrast, Thailand’s shrimp exports to the market plummeted.
Despite this positive growth, Vietnamese shrimp exports to Taiwan have not increased in line with expectations due to a high import tax of about 20 per cent imposed on products.
Furthermore, the Taiwanese market has also applied strict regulations with regard to food safety and hygiene standards.
Taiwan remains a strong market for local shrimp exports due to consumers having a diverse taste, the presence of a large population of overseas Vietnamese, whilst the demand for shrimp in the Taiwanese market has also witnessed an upward trend in recent years.
In early October, the Taiwan Food and Drug Administration unveiled a list of 638 Vietnamese seafood companies that have been granted permission to export to the market.
MBS plans to issue five covered warrant codes
The five underlying stocks are steel producer Hoa Phat (HPG), Phu Nhuan Jewellery JSC (PNJ), Techcombank (TCB), logistic firm Gemadept (GMD) and dairy company Vinamilk (VNM).
The first three covered warrants will mature on January 17 and 22, 2020 at respective rates of 2:1, 5:1 and 2:1.
The two others will mature on April 28, 2020 at the rate of 3:1 and 10:1.
Techcombank’s covered warrant is codded CTCB1901 and will debut on the Ho Chi Minh Stock Exchange on October 30. It will mature on January 17, 2020.
A total 37 covered warrants have been traded on the market since the market launch on June 28.
SSI Securities Corp (SSI) has issued the highest number of covered warrants with 13 codes, followed by KIS Vietnam Securities Co with 12.
Vingroup make $1.36b in consolidated net revenue
The profit before tax was VND2.5 trillion, and profit after tax was VND712 billion.
As of October 30, total assets of Vingroup hit VND357.2 trillion and owners’ equity was VND125.4 trillion, up 24 per cent and 27 per cent, respectively compared to year end of 2018.
Revenue from sales of inventory properties in the period was VND15.3 trillion, up VND1.9 trillion, or 14.3 per cent year-on-year, mainly attributable to several big projects including Vinhomes Ocean Park, Vinhomes Skylake, Vinhomes Green Bay, Vinhomes Smart City, Vinhomes Star City Thanh Hoa, and Vincom Retail’s shophouses.
Vinhomes continued to make good progress with project development, further establishing its presence nationwide. In July, the Vinhomes Grand Park project was launched and immediately set a record on HCM City’s real estate market by successfully selling more than 10,000 units in only 17 days.
Meanwhile, revenue from leasing of investment properties and related services in Q3 was VND2.1 trillion, an increase of 35 per cent year-on-year. As of September 30, 2019, Vincom Retail owns and operates 70 retail malls in 39 cities and provinces throughout the country. By the end of this year, Vincom Retail’s network is expected to reach 79 malls.
Revenue from consumer retail was VND7.9 trillion, up 66 per cent year-on-year. The retail network continued to be expanded to close to 2,650 stores among VinMart, VinMart+ and VinPro brands, equivalent to 57 per cent increase in comparison with the same period last year.
Vingroup continued to earn remarkable achievements in its aspirations to become a Technology – Industrials group. After the launch of the e-scooter model Klara, VinFast released two new models namely Impes, Ludo with sports and city style, and set up nearly 1,500 battery exchange stations in 32 cities and provinces. In addition, Vingroup and FastGo Vietnam have signed a strategic cooperation agreement to initially roll out 1,500 VinFast Fadil cars for ride-hailing services.
In the smartphone segment, VinSmart introduced to the market four new models including Vsmart Bee, Star, Joy 2+ and Live. At the beginning of October, VinSmart launched its products in Russia with the strategic agreement with TFN Trading, making it the third export market of VinSmart.
Seminar discusses ways to combat sugar smuggling
Truong Van Ba of the 389 National Steering Committee said: “Smuggling of sugar into Viet Nam is increasing and becoming more sophisticated. It comes mainly from Thailand through Cambodia and the border gates in the south-west.”
Smugglers repackage the sugar under registered brand names to legitimise the contraband, he said.
Between the start of 2018 and September this year authorities dealt with more than 876 cases of smuggling, seizing more than 3,000 tonnes worth over VND12 billion (US$518,500) and collecting over VND1 billion ($43,000) in fines, he said.
Nguyen Van Can, a member of the 389 National Steering Committee and General Director of Vietnam Customs, said “Authorised forces have improved checks and seized many cases of smuggled sugar. But despite such efforts, the situation has not improved much.”
He listed the difficulties authorities face, including long borders, cunning tricks used by smugglers and legal loopholes.
Regulations permit businesses that do not produce sugar to buy from other businesses, re-package it under their brands and distribute.
In addition, due to high profits, smugglers have adopted ways to illegally transport sugar into the country, he said.
According to the Viet Nam Sugar and Sugarcane Association, Thai sugar prices sold at supermarkets in Thailand are equivalent to Vietnamese prices, but with subsidies export prices are much lower.
Cao Anh Duong, acting chairman of the association, said demand for sugar is around 1.5 million tonnes a year and local sugar mills would produce 1.2 million tonnes this year.
Around 800,000 tonnes are smuggled in every year, putting huge pressure on local producers, he said.
Le Trung Thanh, vice chairman of the Lam Son Sugar and Sugarcane Company, said sugarcane production costs have increased by 20-25 per cent a year in the last five years as small-scale production has made it difficult for farmers to mechanise, pushing up sugar costs.
Delegates suggested many measures to address smuggling, including stepping up the fight against it, inspecting the quality of sugar in the market and tightening inspection of business establishments licensed to produce sugar but lack factories.
Sugar mills need to improve the quality of their products and reduce prices, they said.
They also suggested the mills should invest more in technology to cut costs.
If locally made sugar is cheap, there would be no demand for contraband, they pointed out.
Ba said the Government should require all sugar to carry origin details to keep out contraband.
It should also amend the Law on Investment to include sugar production and packaging in the list of businesses that have to meet certain specific conditions.
Delegates said authorities should penalise smugglers more severely and not auction seized contraband but should sell it to sugar mills.
There are 40 businesses registered to produce and trade sugar.
Vinh Phuc welcomes over 15.5 million tourists in three years
The northern midland province of Vinh Phuc welcomed over 15.5 million tourists between 2017 and 2019, according to the provincial Department of Culture, Sports and Tourism.
The department said over the past three years, the number of holiday-makers to Vinh Phuc grew 15 percent on average, helping to increase the local budget and improve living standards.
In 2017, the locality served 4.45 million visitors, including 33,500 foreigners. The numbers are expected to reach 5.9 million and 43,100, respectively, this year. Each vacationer spends about one and a half days in the province.
Revenue generated by the tourism sector increased from 1.42 trillion VND (61.5 million USD) in 2017 to around 1.8 trillion VND in 2019.
Vinh Phuc has 409 accommodation establishments with more than 7,500 rooms, including 41 hotels rated from two to five starts. Among the 10 travel businesses operating in the locality, there are four international companies.
Located 80km to the north of Hanoi, Vinh Phuc has optimised its geographical advantage and natural resources, as well as historical and cultural relic sites, to become a safe and friendly tourist destination.
To ensure safety for tourists, Vinh Phuc has instructed competent agencies and localities to intensify inspections, and asked restaurants, entertainment sites and accommodation establishments to maintain service prices even in the peak season, while paying attention to environmental protection and food hygiene.
A wide range of products have been developed to lure more visitors, including eco-tourism, homestays, cultural-spiritual tourism, resort tourism, and MICE (Meeting, Incentive, Conference and Event) tourism.
Notably, several newly-launched tours have attracted a slew of travellers such as the one-day tour to conquer Tam Dao Mountain Range, the “Spiritual Path” tour, and the Hai Luu stork reserve, among others.
The province is home to several popular tourist destinations. Notably, Tam Dao is an ideal summer resort in the north, standing 900m above sea level.
Tam Dao National Park is nearby where the vegetation coverage is representative of five types of tropical forest. The flora consists of 904 species and the rich fauna includes 307 species.
At the foot of Tam Dao Mountain, Dai Lai Lake is an artificial reservoir. Dai Lai is blessed with a favourable climate, cool in the summer and warm in the winter. Over the lake lies a 3-hectare island which is home to different kinds of birds. Tourists also have a chance to enjoy panoramic views of the lake from the top of Than Lan Mountain.
Located 90km from Tam Dao, Tay Thien is well-known for its beautiful forests, streams, waterfalls and grottoes.
The province also has bountiful tangible and intangible cultural sites with nearly 1,000 relics that include Ha Tien Pagoda, Binh Son Tower, Huong Canh Temple, Hai Ba Trung Temple and Dong Dau archeological site. Visitors will also be fascinated by traditional feasts, peculiar crafts, melodious folk songs, traditional games and tasty local dishes.
Trong Quan Duc Bac singing – folk singing between male and female groups – has been practised by locals in Vinh Phuc for centuries and become a cultural “speciality” of the locality.
The art form involves a spontaneous back and forth repartee accompanied by drums. The witty response of singers on various topics and in different voices is a unique feature of this folk art.
Each spring, young men from Duc Bac village and young women from the neighbouring province of Phu Tho gather on the banks of a river in Duc Bac to engage in Trong Quan singing, through which they express their love. The singing then gradually moves to the yard of the communal house.
To turn the folk art into a unique tourism product for Vinh Phuc, it is necessary to organise performances at cultural-historic sites and popular tourist attractions, and include Trong Quan shows in community-based tours./.
Abundant chances remain in Chinese market for Vietnamese exporters
There is room for Vietnamese exporters to further exploit the Chinese market, said Tran Van Cong, Vice Director of the Agro Processing and Market Development Authority (Agrotrade) under the Ministry of Agriculture and Rural Development, at a conference in Can Tho city on October 30.
Cong noted that China is a huge market for agro-fisheries products with a value of about 160 billion USD per year, including 9-10 billion USD of fruit and vegetable imports, about 10 billion USD of aquatic products, 10 billion USD of milk and 2-2.5 billion USD of rice.
Vietnam only exported 8.6 billion USD worth of agro-forestry-fisheries products to the marketin 2018 and 6 billion USD in the first nine months of this year, he said, holding that the figures remain too modest.
He advised exporters to find updates on new regulations in China and strive to meet all the market’s requirements.
Commercial Counselor of the Chinese Embassy in Vietnam Hu Suojin said that the majority of Chinese consumers like Vietnamese fruits.
The 1.4-billion-strong market spends about 2 trillion USD to import goods each year, which will rise to 10 trillion USD in the next five years, the official noted.
On average, each year, a Chinese person consumes 30kg of milk, 40kg of pork and 50kg of fruits, he said.
Hu said that in the first nine months of this year, import-export revenue between Vietnam and China exceeded 110 billion USD, up 7.1 percent year on year.
With the current per capita income of over 10,000 USD per year, Chinese people’s living conditions are rising and their demand for goods are increasing, he stated.
Hu said it is necessary to further connect Vietnamese firms with their Chinese peers and provide them with more information on technical requirements in China./.
Vinh Phuc enjoys high retail revenue
Thanks to the support from the local administration and the dynamism of local firms, the northern province of Vinh Phuc has enjoyed high revenue from goods and services so far this year.
Total retail revenue of goods and services in September this year is estimated at over 4.4 trillion VND (190.6 million USD), a rise of 10.41 percent year on year.
In the first nine months of 2019, the figure reached about 38.16 trillion VND, up 9.45 percent over the same period last year.
At the same time, the consumer price index (CPI) in Vinh Phuc rose 1.32 percent compared to the same time in 2018, the lowest level in the last four years.
The rise was attributable to increases in health care and education fees, rising prices of gold and the US dollar, and the impact of African swine fever.
In September alone, CPI in the province was up 0.35 percent over the previous month, and 1.38 percent over the same time last year. In the month, three out of the 11 goods groups saw an upturn in prices, with the highest rise of 4.06 percent recorded in education fees, followed by food and catering services’ prices at 0.8 percent, and other goods and services at 0.04 percent.
Meanwhile, the prices of five out of the 11 goods groups dropped, with the sharpest fall seen in transportation prices at 1.29 percent. Prices of housing and construction materials decreased by 0.66 percent, while those of post and telecommunications fell 0.3 percent, culture, entertainment and tourism dropped 0.08 percent and equipment and household appliances lost 0.11 percent./.
Seminar discusses development of 5G chipsets, network devices
Experts from the Ministry of Information and Communications (MIC) and leading IT and telecoms firms shared experience and discussed possibility of cooperation in manufacturing 5G chipsets and network infrastructure devices, during a seminar in Hanoi on October 30.
The seminar was chaired by Deputy Minister of Information and Communications Phan Tam.
In early 2019, Prime Minister Nguyen Xuan Phuc urged the development of domestic technology firms and made-in-Vietnam technologies and products, Tam said.
Resolution No.52-NQ/TW recently issued by the Politburo and the draft of Vietnam’s socio-economic development strategy towards 2030 emphasise the significance of expanding tech companies which are vital to helping Vietnam escape the middle income trap and foster a developed and independent economy, he said.
The Party and State have adopted various incentives to facilitate R&D for hi-tech products, particularly 5G chipsets and network infrastructure devices, the official noted, adding that major IT and telecoms in Vietnam have started developing 5G technology.
He also called on participating firms to actively join hands to develop 5G chipsets and devices in Vietnam.
At the seminar, representatives from participating companies talked about their challenges in researching and developing new technologies as well as their current and future 5G projects.
Tao Duc Thang, Deputy Director General of the telecom group Viettel, said it has been developing 5G technology and 5G network infrastructure devices – like base-transceiver stations, core networks and terminal equipment – since 2015. The group plans to complete manufacturing the first version of its 5G stations and network next year before it goes into commercial operation in 2021, he said.
A representative from the VinSmart Research and Manufacture JSC said the firm aims to spend about 200 billion VND (8.66 million USD) on building a laboratory to develop 5G network devices. In 2021, the company will invest 90 million USD to develop 5G products and 5G smartphones.
Deputy Minister Tam asked the MIC’s Radio Frequency Management Board to consider licensing certain frequencies for 5G device producers who are not network operators to test their products./.
Private sector main driving force for economic growth
The private sector was the main driver of growth for Vietnam in the first nine months this year, a conference held by the Central Institute for Economic Management (CIEM) heard in Hanoi on October 30.
CIEM also shared a report it jointly conducted with an Australian programme to support Vietnam’s economic reform (Aus4.Reform Program) at the conference, that stated economic growth in Q3 and the first nine months maintained at a relatively high level.
While the macro-economy remained stable, the report said local industrial industries had grown rapidly with the largest contributor to GDP being the processing industry. Imports and exports also kept up their momentum with a trade surplus in the first nine months estimated at 7.1 billion USD, exceeding the same period in 2018, said the report.
Regarding the imports and exports, the contribution of FDI enterprises had slowed while the private sector had become the main driving force of growth.
Nguyen Anh Duong, head of CIEM’s General Research, said: “The FDI sector has slowed with export growth of 5 percent, or one digit growth, while the private sector reported export growth of two digits.”
Duong told the conference that growth of the private sector was “very impressive” in the context that many domestic private enterprises were not receiving enough support.
Duong added that uncertainties caused by the trade war between the US and China affected a lot of foreign-invested enterprises but was “an opportunity for domestic private enterprises”.
Duong said local private enterprises had taken opportunities offered by integration with their adaptability, urging relevant agencies and policymakers to support and create more favourable conditions for them.
However, the conference also pointed out challenges for the local economy, mentioning the “return” of the mining industry, which was considered a threat to the environment and of low value.
The report said after three years of negative growth, the mining industry had returned to positive growth in the first nine months of this year.
At the same time, participants mentioned the quality of growth was not meeting existing potential.
CIEM’s former director Nguyen Dinh Cung, who is also a member of the Prime Minister’s Economic Advisory Group, warned: “In FDI investment, the number of projects increased by 26 percent but the amount of registered capital decreased by 14.5 percent.” Thus, Cung doubted the quality of some FDI projects and whether they contributed to local development.
To overcome challenges, a CIEM representative suggested continuing to reform macro-economic fundamentals, improving the business environment, and creating new drivers for development with more support for private businesses.
In addition, CIEM asked the Government to monitor the exchange rate carefully, adding that the relevant agencies should pay more attention to credit quality not quantity.
Based on the report, economists predicted GDP growth of 7.02 percent for this year and 6.72 percent for 2020./.
French Development Agency funds EVN’s solar power project
Vietnam Electricity (EVN) said on October 30 that it has signed a credit agreement for a solar power plant project with the French Development Agency (AFD).
The loan without government guarantee worth 24.2 million EUR is used to finance the Se San 4 solar power plant with a capacity of 49 MWp, which will be constructed in the area of the Se San 4 hydropower plant in the Central Highlands province of Gia Lai.
In addition to the Se San 4 solar power project, AFD has also committed loans without government guarantee for the expanded Yaly hydropower project and a project to build power grids in the South. It is also considering a loan for the expanded Hoa Binh hydropower plant project.
EVN Deputy General Director Nguyen Xuan Nam said EVN highly appreciated the support and cooperation of AFD in arranging loans without government guarantee for the power projects, especially in the context that the Government is tightening and moving towards stopping the guarantee for EVN’s power projects.
Currently, EVN has to diversify financial mobilisation channels to meet its huge investment needs in the coming years, he added.
AFD is an international financial institution operating for non-profit of the French Government by providing loans and non-refundable aid for organisations and state-owned enterprises with the main target of reducing emissions and coping with climate change.
AFD is the first and only provider of loans without government guarantee for EVN to implement power projects. AFD’s first loan without government guarantee worth 100 million USD to fund the Huoi Quang hydroelectric plant project was signed in 2010./.
JETRO studies investment climate in Hau Giang
Representatives of the Japan External Trade Organisation (JETRO) worked with leaders of the Mekong Delta province of Hau Giang on October 30 to learn about the local investment environment.
At the working session, Chairman of the provincial People’s Committee Le Tien Chau introduced the province’s natural and socio-economic conditions as well as preferential policies for investors.
Hau Giang has so far licensed 30 foreign-funded projects with combined registered capital of more than 552 million USD. Since the beginning of 2019, it attracted 16 domestic projects worth over 2.68 trillion VND (116 million USD).
Investors in the province enjoy tax and land lease incentives in line with regulations.
Chau said Japanese firms have yet to show their interest in the province and hoped JETRO’s working trip will give a boost to ties between the organisation, Japanese companies and Hau Giang.
He said Hau Giang is calling for investment in agriculture, farm produce processing for export, industry, electronic component production, and IT, stressing that the local authorities are willing to support both domestic and foreign firms.
Chief Representative of JETRO in Ho Chi Minh City Hirai Shinji said useful information collected from the session will be used to produce documents for Japanese enterprises.
Vietnam is among the top three destinations for Japanese investors wanting to expand their markets, he said./.
MoIT seeks ways to boost coffee exports
The Ministry of Industry and Trade (MoIT) has said that improving product quality and brand development are key for coffee export growth as coffee exports dropped in both volume and turnover in the first nine months of this year.
The country’s coffee exports reached 1.26 million tonnes, valued at 2.17 billion USD, down 12.5 percent in volume and 20.9 percent in value compared to the same period last year.
To get Vietnamese coffee into foreign distribution systems, the ministry said it would implement the scheme to help Vietnamese enterprises participate in overseas distribution networks by 2020, aiming to bring Vietnamese coffee directly into foreign markets.
One of the activities includes programmes to connect overseas Vietnamese enterprises in Thailand, France, Germany and Australia with domestic businesses, using overseas networks to help Vietnamese coffee enterprises study export markets.
Communication about the quality of Vietnamese coffee is expected to contribute to its consumption in supermarkets in foreign markets.
Sharing his experiences on exports in the coffee industry, Tran Tan Thien, director general of Hello 5 Coffee Joint Stock Company, said Vietnamese coffee exporters should improve the quality of their products to the world-level, not regional.
By doing so, Vietnamese businesses exporting coffee will have better access to the EU, US, Chinese, Japanese, and Korean markets, he told Thoi Bao Kinh Doanh (Business Times).
This requires Vietnamese enterprises to always set the criteria to go further when the coffee market is growing fast and fiercely competitive, he added.
Enterprises also needed to choose their target markets, he advised.
The director general noted that coffee exports needed to adapt quickly to international e-commerce channels such as Amazon, Alibaba and Baidu.
The world market was aiming at safe, green and good production for consumers, which was an opportunity for businesses producing safe coffee, he added./.
India initiates investigation on imports of choline chloride
The Directorate General of Trade Remedies (DGTR) under the Indian Ministry of Commerce and Industry has initiated an anti-dumping investigation concerning imports of “choline Chloride in all forms” originating in or exported from China, Malaysia and Vietnam.
The Vietnamese Ministry of Industry and Trade said it has received a notice on the initiation dated October 1.
According to the DGTR, Jubilant Life Sciences Ltd filed an application for the investigation from April 2018 to June 2019.
The subject goods are classified under customs tariffs, including 23099010 and 23099090.
All the interested parties are advised to intimate their interest in the matter and file their responses and offer their comments regarding the need to impose anti-dumping measures within 40 days from the date of the letter.
If no information is received within the prescribed time limit or the information received is incomplete, the designated authority may record its findings on the basis of the facts available on record.
The exporters, their governments, the importers and users in India known to be concerned and the domestic industry are being addressed separately to submit relevant information in the form and manner prescribed and to make their views known to the authority at the following address: The Director General, Directorate General of Trade Remedies, Jeevan Tara Building, 4th Floor, 5, Parliament Street, New Delhi -110001./.
Exhibition of Vietnamese brands held in Myanmar
An exhibition of Vietnamese brands in Myanmar was held in Yangon city from October 29 – 30.
Present at the opening ceremony were Governor of Yangon U Phyo Min Thein, Permanent Secretary of the Ministry of Commerce U Aung Soe, and representatives from Vietnamese business club in Myanmar.
Speaking at the event, Vietnamese Ambassador to Myanmar Luan Thuy Duong said since the establishment of comprehensive cooperative partnership in 2017, Vietnam and Myanmar have seen progress in bilateral ties, especially in trade and investment.
Vietnam is now the ninth largest trade partner of Myanmar with two-way trade growing by 13 percent annually over the past five years, reaching 860 million USD last year, Duong said, adding that the figure is expected to hit 1 billion USD in 2020.
Vietnam also ranked seventh among 50 countries and territories investing in Myanmar with 25 projects worth nearly 2.2 billion USD, the ambassador added.
Duong said the event would contribute to popularising Vietnam’s images and brands while promoting exports and distribution of Vietnamese goods in Myanmar.
The exhibition gathered 22 outstanding Vietnamese firms that represent more than 200 enterprises in Myanmar./.
CPTPP helps to spur Vinh Phuc’s exports
The northern midland province of Vinh Phuc has maintained its export growth thanks to businesses’ efforts to access new markets and optimise opportunities from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
In the first nine months of this year, the export value of brake manufacturer Nissin Brake Vietnam Co., Ltd. in Quat Luu commune, Binh Xuan district increased more than 25 percent year-on-year.
This year, along with traditional partners like Nissin Kogyo Japan, Nissin Thailand and PT Chemco Indonesia, the Japanese-invested firm has expanded its reach to such markets as Malaysia, Brazil, the Philippines, the US and India.
As of the end of September, it shipped over 622 tonnes of products abroad, earning nearly 29 million USD, up more than 25 percent against the corresponding time last year.
Once Nissin Brake Vietnam enters CPTPP member economies, the company will benefit from tax incentives, thus improving its competitiveness.
Vin Phuc province is now home to more than 200 businesses whose products are exported to more than 40 countries and territories, mainly the US, the EU nations, Russia, ASEAN, Japan, China, Taiwan (China) and the Republic of Korea (RoK).
In 2018, the locality’s total export revenue exceeded 2.2 billion USD, with major exports like motorbikes and motorbike components, electronic components, auto spare parts, tea, garments-textiles and footwear.
Since the beginning of this year, export activities have also shown rosy signs. The export value of foreign direct investment (FDI) firms was over 2.6 billion USD, a year-on-year rise of 9 percent. Meanwhile, that of domestic enterprises reached nearly 40 billion VND (1.73 million USD), up 47 percent.
Strong growth was recorded in auto and motorbike manufacturing and assembling, and support industries.
Experts said the CPTPP has opened up integration and development opportunities for exporters, while facilitating product consumption in the domestic market.
To help businesses located in the province utilise the agreement, Vinh Phuc has stepped up administrative reform and applied scientific and technological advances in production and business.
Besides, it has assisted enterprises in improving competitiveness, implementing trade promotion activities, seeking partners, expanding the market and building brands.
Last April, the provincial People’s Committee issued a plan on the implementation of the CPTPP in the locality, under which departments and People’s Committees of Vinh Yen city and districts have been asked to intensify the popularisation of the deal.
Vinh Phuc has also reviewed local legal regulations that have not matched the agreement for timely adjustments and stepped up administrative reform, especially procedures regarding investment, export-import and tax.
According to the VinhPhuc Industrial Park Management Board, in the first nine months of 2019, local industrial parks drew 53 new FDI projects. Together with capital poured into 38 ongoing projects, so far this year, the parks have lured 612.35 million USD, reaching 219 percent of the yearly target.
At the same time, the parks have wooed over 2.66 trillion VND for eight new and four ongoing domestic projects, equivalent to 190 percent of the goal for the whole year.
Binh Xuyen district is the leading locality in the province for investment attraction. The district is home to seven industrial parks with a total area of nearly 1,900 hectares, namely Binh Xuyen, Binh Xuyen II, Ba Thien, Ba Thien II, Thang Long Vinh Phuc, Son Loi and Nam Binh Xuyen. The parks accommodate about 200 projects, mostly in garments and textiles, electronic accessories, automobile and motorbike assembly, brick and steel production. The projects employ more than 35,000 labourers.
In the Thang Long Industrial Park alone, 11 Japanese firms are operating with a combined capital of 200 million USD.
Thanks to the province’s endeavors to complete infrastructure in industrial parks and a transport system connecting them, as well as efforts to improve the business environment and reform administrative procedures, Vinh Phuc has become more popular among foreign investors./.
Hanoi splashes out 13.5 mln USD on startup, innovation activities
The Hanoi People’s Committee has recently greenlighted a 312 billion VND (13.5 million USD) project to support startup and innovation in the capital city during 2019-2025.
Director of the Hanoi Centre for Supporting Small and Medium-sized Enterprises Le Van Quan said at a conference on October 29 that the project features a wide range of breakthrough mechanisms to branch out startup and innovation activities, contributing to promoting the city’s sustainable economic growth.
It looks to raise public awareness of startup, form a startup and innovation support network, and set up a startup and innovation centre.
Three to five incubators will be established to assist startup activities in the city, Quan said, adding the project aims to develop 500 startup and innovation initiatives, help 150 businesses launch their products, and assist 20 percent of them in calling capital from ventures as well as carry out merger and acquisition deals valued at 500 billion VND (21.6 million USD).
He said businesses and organisations with at least one year of experience in finance and investment consultation and business support can join the project.
According to Vice Director of the provincial Department of Planning and Investment Tran Ngoc Nam, startup and innovation play an important role in creating jobs, improving labour productivity, and promoting sustainable economic development.
In response to the “startup nation” spirit, Hanoi has outlined various programmes to support startup and innovation activities since 2016.
As of October 26, 2019, more than 275,000 enterprises registered to operate in the city, 97 percent of them were small and medium-sized firms. In October alone, the city granted business registration certificates to more than 22,000 companies with total capital of 266.29 trillion VND, up 9 percent in the number of businesses and 28 percent in registered capital./.
Vietnam’s GDP revision poses no change to short-term state budgetary strategy
Vietnam’s Ministry of Finance is still using current data after the revision of calculation, for the country’s upcoming five- to ten-year financial plans.
Vietnam’s GDP revision would pose no change to short-term state budgetary strategy, but it is difficult to determine in the long term, according to finance expert Vu Sy Cuong from the Hanoi-based Academy of Finance.
In the short term, specifically for 2020, the estimation of national budget, including the threshold for public debt, state budget revenue and expenditure, among others, are dependent on micro-economic aspects, rather than the GDP growth rate, Cuong said at a workshop discussing the impact of GDP revision on state budget estimates on October 29.
“In other words, the limit of fiscal deficit at 3.5% of GDP, public debt of 65% and capital mobilization of 23%, remain unchanged in a foreseeable future,” Cuong added.
Late in August, Head of the General Statistics Office (GSO) Nguyen Bich Lam announced the GDP revision that resulted in an enlargement of 25.4% annually of Vietnam’s economy in the 2010 – 2017 period compared to the previous data.
Lam added revising GDP is a common practice globally, and countries such as the US, Canada, Germany, Russia, Italy, Indonesia, among others, have made similar moves since 2010.
Lam attributed new GDP data to an inclusion of 76,000 enterprises into the revision.
Finance expert Pham Dinh Cuong said GDP revision only serves the purpose of comparison with other countries, instead of having a substantial impact on the economy itself.
“For instance, an increase of 25.4% in the GDP does not equally mean a similar increase in state budget revenue,” Cuong said.
According to Cuong, the GSO may have left out 76,000 enterprises in their calculation, but it would not be the case with tax authority, “as tax revenue is not collected at enterprises’ address, but through economic activities.”
Cuong argued that at the current GDP growth rate, a capital mobilization rate of 23% is quite high compared to international practices, but with an increase of 25.4% in the GDP, the capital mobilization rate would decrease to around 17%, which may lead to a question of whether to raise the target for capital mobilization.
“The answer is no, particularly with the current GDP per capita of US$2,590 or even US$3,000 after revision. Moreover, the tax authority is pursuing an agenda of gradually reducing tax rates for greater capital accumulation in the economy,” Cuong continued.
“The government may target an increase in excise taxes for alcohol drinks and cigarettes, but the primary objective is to discourage people from consuming these products, and higher tax revenue comes as a secondary objective.”
Moreover, the target for state budget revenue is determined on a number of factors, including economic growth rate, not the size of the GDP, inflation rate, Vietnam’s progress in global economic integration, and crude oil prices, among others.
Cuong refutes the opinion saying that Vietnam could borrow more thanks to higher GDP growth rate, arguing that the ceiling for public debt depends not only on GDP, but also on the country’s economic performance, the safety nature of the loans, and efficiency in using these loans.
Nevertheless, economist Vo Tri Thanh said GDP revision may impact the economy in the long term by leading to changes in a number of economic targets.
“The government must revise its national financial strategy and other economic plans on the basis of new GDP growth rate,” said Thanh.
At the conference, a representative of the Ministry of Finance said the ministry is using the current data, not the revised one for the five to ten-year national financial plans.
In a press conference on August 16, GSO Head Nguyen Bich Lam said this was not the first time the GSO revised the GDP. His agency in 2013 revised the GDP in the 2008 – 2012 period.
Six years ago, the revision only focused on certain sectors such as banking, finance, insurance and real estate, Lam stated, noting this time the GSO would include all economic groups in the economy, except the illegal and shadow economies, due to the lack of data.
Electronic identification promotes digital economy development in Vietnam
In Vietnam, identification and authentication have been carried out through the use of citizenship card and passport.
Electronic identification and authentication are crucial for e-transactions and the development of digital government and digital economy.
In order to create a legal corridor for the service, Vietnam’s Ministry of Information and Communications has drafted a decree governing electronic identification and authentication and has put it forward for public comment.
According to the World Bank in Vietnam, more and more countries are implementing digital authentication and identification, being aware that these measures are essential for internet-based socio-economic development.
In Vietnam, identification and authentication have been carried out through the use of citizenship card and passport. However, when moving to an electronic transaction environment, there must be legal provisions to accurately verify an individual or organization in the net.
La Hoang Trung, director of the National Center for Electronic Authentication under the Ministry of Information and Communications, said there is no unified regulation and mechanism to verify internet users.
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