Eu presidency

The Hanoitimes – Phones and parts posted the largest export turnover among export items during January with US$6.1 billion, up US$3.4 billion against the same period of last year.

Vietnam recorded a trade surplus of US$2.09 billion in the first month of 2021, which remained a stark contrast from a deficit of US$300 million in the same period last year, according to the General Department of Vietnam Customs (GDVC).

Production for exports at Garment 10 Company. Photo: Pham Hung.

In January, the country’s trade turnover stood at US$55 billion, representing an increase of 48.2% year-on-year, in which exports rose by 55.1% to US$28.55 billion and imports by 41.3% to US$7.74 billion.

According to the GDVC, foreign-invested sector posted a trade surplus of US$3.98 billion during the period, coming on the back of a 70% surge in exports year-on-year to US$21.57 billion, or over 75% of the country’s total export turnover.

Phones and parts posted the largest export turnover among export items during January with US$6.1 billion, up US$3.4 billion against the same period of last year.

In addition, electronic products, computers and components earned an estimated US$3.89 billion, up 46.2% year-on-year; garments (US$2.66 billion); equipment and parts (US$3.26 billion).

The US, China, EU, South Korea and ASEAN are the five largest buyers of Vietnamese goods in January.

Vietnam, meanwhile, mainly imported goods from China worth US$9.16 billion, up 64.1% year-on-year and accounting for 34.6% of the country’s total imports. South Korean came in the second place (US$4.75 billion), followed by ASEAN (US$3.18 billion) and Japan (US$1.68 billion).

Hanoi (VNA) – Prime Minister Nguyen Xuan Phuc attended and delivered remarks at an open debate of the UN Security Council (UNSC) on addressing climate-related risks to international peace and security, which was held in the form of video conferencing on February 23.

Following is the full text of the Prime Minister’s remarks.

Mr. President,

I applaud the initiative of the UK Government and yourself, Mr. President, to host this important UNSC open debate on “Addressing climate-related risks to international peace and security”. I would like to thank UN Secretary General António Guterres and Chair of the UN Youth Advisory Group Nisreen Elsaim for your insightful and substantive information and recommendations.
Mr. President,

Earth – our blue planet, and our shared home – is suffering from grievous impacts of climate change. 2020 was one of the three hottest years in modern history, and was faced with the constant and severe aftermaths of floods, droughts, bushfires, rising sea level, and the unprecedented COVID-19 outbreak.

Such calamities have placed great burdens on the political and socio-economic life of many countries. They have caused unemployment and poverty, affected the livelihood of hundreds of millions of people, and risked creating instabilities or exacerbating present conflicts in many countries and regions, thus threatening international peace and security. In addition, conflicts and instabilities would further erode countries’ resilience, and rob them of valuable resources that could have been utilised to overcome the challenges of climate change.

Therefore, I propose that the UNSC, with its foremost mission being the maintenance of international peace and security, needs to galvanize collective and persevering efforts of the international community via the following measures:

First, a comprehensive and balanced approach is necessary in handling the connections between traditional and non-traditional security challenges, particularly in addressing the root causes of conflicts, such as poverty, inequality, power politics and unilateral interference and coercion. Strict adherence to the UN Charter and international law must truly become a standard of behaviour for countries in international relations.

Second, for the 2030 Agenda for Sustainable Development (SDG-2030), the UN Framework Convention on Climate Change (UNFCCC), and the Paris Agreement (COP-21) to be effectively implemented, the UNSC and the international community should allocate greater resources to support developing countries, least developed countries, small island developing states, and land-locked countries that are most detrimentally affected by climate change, and are also lacking expertise and resources.

Third, I hope that the UNSC will continue to enhance its early warning capacity, and bolster its role in mediating, preventing and resolving conflicts in all regions, including through enhancing cooperation with regional organisations.

Fourth, in order to harmoniously manage the connection between climate change and security, it is necessary to continue upholding the principles of respect for the sovereignty, national ownership and principal responsibilities of states. The shared interests of communities and peoples, particularly vulnerable groups, must be placed at the heart of all national and global climate action strategies and plans.

Mr. President,

According to the World Bank, Vietnam is among the six countries most severely affected by climate change. Thus, active and effective response to climate change is both a major guideline and a strong political resolve by the Vietnamese Government. Vietnam has made great efforts to fulfil its international commitments on climate change (SDG-2030 and COP-21). In this connection, we support all endeavours to address climate-related challenges at the UNSC and other multilateral forums. I hope that the international community will provide Vietnam with further assistance and resources, so that we can better fulfil our commitments. Vietnam will work closely with other ASEAN members and support the cooperation between ASEAN and the UN.

Mr. President,

The world is burdened with the fight against COVID-19. Responding to the appeal of the UN Secretary General in “Making peace with nature is the defining task of the 21st century”, we should take bold actions and enhance international unity. I am confident that the “challenges” stemming from climate change can be transformed into “drivers” for change, contributing to fostering a future of peace and more sustainable development for next generations.

Thank you./.

VNA

As part of the support program for COVID-19-hit people run by the VRCS in 13 cities and provinces where COVID-19 infection cases have been found in the community, including Hai Duong, Quang Ninh, Gia Lai, Bac Ninh, Binh Duong, Hanoi, Bac Giang, Ho Chi Minh City, Hoa Binh, Ha Giang, Dien Bien, Hai Phong and Hung Yen, the campaign runs from late February to mid-March.

Reportedly, more than 10 tons of agricultural products were sold at the launching ceremony of the campaign in Hanoi on February 23. For the past three days, more than 20 tons of farm produce have been purchased by consumers in Hanoi. All of the products were strictly sterilized before being sold.

The VRCS Central Committee asked the Red Cross society in Hai Duong province to choose agricultural products that meet food safety standards, and transport them to the Central Committee as well as the Red Cross Society in Hanoi for distribution, said President of the VRCS Central Committee Nguyen Thi Xuan Thu.

Translated by Chung Anh

Dinh Quang Hinh, analyst at VNDIRECT Securities JSC, noted that the local economy’s recovery “will slow down”, especially in the next two months. According to Hinh, the tourism industry may still be the most affected by the new COVID-19 wave.

Reports from travel and airline businesses showed that many travellers cancelled flights and hotel reservations, and postponed their plans. In addition, the blockade in some localities such as Hai Duong province and the closure of a number of non-essential services in other cities and provinces may reduce the growth rate of several service sub-sectors, especially accommodation, catering, tourism, and entertainment.

At a cocentrated quarantine area. Photo: VNA

Unfeasible policies

Facing the serious impact of COVID-19 on the economy, Assoc. Prof. Dr. Pham The Anh, chief economist of the Institute for Economic and Policy Research (VEPR), said that the country could not pursue macro policies in the same way other countries would do, for example through large-scale monetary easing, due to limited financial resources after years of deficits, coupled with constraints to inflation and exchange rate targets.

Vietnam was one of the few countries in the world with positive economic growth in 2020. But this year, according to Anh’s observation, “the policy space is no longer wide” to support economic growth and social security.

Last year, the State Bank of Vietnam lowered interest rates three times and supported commercial banks with a VND250-trillion package ($10.87 billion), which is still being deployed. In addition, pandemic prevention and social backup subsidies to ease the impacts of the crisis are also putting great pressure on the budget balance.

In 2021, monetary policy, particularly interest rate tools, will see a significantly reduced effectiveness, according to the VEPR’s chief economist.

Anh also warned about an asset bubble that is forming in the stock and real estate markets. Last year, property market saw significant growth, mainly because real estate represented a haven for investors’ idle money.

When price increases on asset markets are large enough to create a wealth effect, consumption increases on non-essential goods could lead to a spillover of increased prices from the asset to the consumer market and, albeit slowly, manifest a rise in prices as the loosening policy is pursued for a long enough time.

The latest VEPR report from February 9 also identifies that the top priority at this time is ensuring social security, keeping macroeconomic stability, and reducing the burden for businesses. Policies to support these also need to continue to be implemented with a higher concentration and more substance, aiming for the right audience and their actual needs.

As such, the report suggested that financial burdens for businesses like loan interests and land rents should be frozen or suspended for the time being, in addition to considering cutting trade union fees to support businesses.

According to the VEPR, the group of businesses that was not affected by the disease or had seen an effective transformation should be encouraged with credit, the right institutional environment, and sectoral policy. These policies should be driven in a way that stimulates demand and assists consumers to pay for products and services, instead of directly sponsoring the company.

“We believe that tax extensions and reductions, if any, should only be applied to VAT instead of corporate income tax (CIT),” Anh said, further explaining that the reduction of CIT only supports a small number of businesses that is either not affected or even benefits from the pandemic. The CIT reduction also risks creating deeper inequality in the business environment, adversely affecting the economic recovery.

Cautious optimism

This year will be the first of the new leadership of the Party and government and is expected to see many new steps, policies, and specific actions for the socioeconomic development. International developments such as the new US president and possibly more predictable policies could make the international environment less uncertain.

However, the continued competition between the United States and China does not protect from new risks that could appear. In this context, the chief economist of VEPR said that supply-side policies could be the most useful for Vietnam to reinforce fundamental elements of the economy.

“Macroeconomic stability, particularly inflation, interest rates, and exchange rates, need to be kept stable, which is essential to prepare for the post-pandemic recovery period. The Vietnamese economy is currently in a difficult time, while the return of a tightened monetary policy could lead to further difficulties for businesses,” Anh said.

At this point, even with the pandemic in the country fully controlled, many export-oriented sectors could face long-term difficulties as COVID-19 remains present throughout the world. Anh found that accelerating public investment, especially for key national projects, is a must to support economic growth.

“The division of multiple bidding packages and a more scattered implementation in many localities could create better spread,” he suggested.

At the same time, a reduction of the recurrent spending from the state budget by at least 10 per cent could be done to devote resources and overcome the consequences caused by the pandemic.

According to experts, many shortcomings in operating economic policies have been revealed, so efforts to improve administrative procedures and the business environment should continue to be maintained.

The diversification of import-export markets also needs more attention to avoid heavy dependence on several major economic partners. Despite delays, Vietnam could step-by-step build up fiscal buffers to prevent further economic shocks in the coming years.

On the bright side, Vietnam’s industrial production seems to expand in the first months of the new year. According to the General Statistics Office, although the industrial production index in January decreased by 3.2 per cent compared to the previous month, it increased by 22.2 per cent over the same period last year.

Meanwhile, the purchasing managers’ index in January decreased slightly to 51.3 from 51.7 points in December but remained above the 50 points level.

Optimistic but cautious, VNDIRECT’s Hinh expected that the manufacturing sector will be less affected by this COVID-19 surge as the global economy could recover stronger in the coming months, thanks to vaccines and more incoming orders for products made in Vietnam.

More time will be needed to observe and quantify the potential impact on the economic outlook, but Vietnam’s macroeconomic foundation may continue to be strengthened backed by current account and trade surpluses, rising foreign exchange reserves, and decreasing inflationary pressure.

At last week’s government meeting on deploying key tasks and activities against COVID-19 after Lunar New Year, Prime Minister Nguyen Xuan Phuc encouraged the public to use the Bluezone app and implement the 5K principles, as well as ensure safety and prevent disease transmission in schools, markets and supermarkets, hospitals, and business establishments, especially those with large numbers of people. “We need to be fully determined, more and stronger than ever before. We must be determined to organise the effective implementation of the resolution of the 13th National Party Congress in each and every locality,” the prime minister said, emphasising the success in the past five years, especially in 2020, when the power and will of the Party were convincingly demonstrated. He stated that focus must lie on directing and handling the five major balances in national development in the next five years. Firstly, there must be a balance between opening up, innovating, and promoting socioeconomic development while strengthening and enhancing the leadership of the Party and a stable development between market laws and socialist orientation, as well as between state, market, and society, between economic growth and human development, between social progress and environmental protection, and between independence and integration. Secondly, it is necessary is to balance rapid economic development with socially equitable progress, including preserving the environment and protecting the national cultural identity. “For example, like with our pandemic prevention efforts, development must be associated with the lives of the people and balanced and harmonious, letting no person and no locality fall behind, and possibly lose development opportunities,” the PM emphasised. Thirdly, there must be a balance between internal and external forces, between domestic and foreign economies, between internal and foreign trade, between building an independent and autonomous economy with openness and international economic integration. Fourthly, short-term priorities must be weighed against long-term goals. “We must not be subjective and avoid pursuing unsustainable short-term goals,” PM Phuc noted, suggesting that ministries and agencies maintain and firmly believe in the ideals and principles of building a socialist-oriented market economy. Fifthly, national financial resources, public debt, and many other macroeconomic figures must be kept in balance. “Today, we have a good system of macro indicators, but we must ensure it is getting stronger and let next year be even better than last year,” said the prime minister.

The visits aimed to promote solidarity, friendship and cooperation between the Vietnamese military region and Cambodian military partners within the framework of the signed agreements.

The visits, seen as a hallmark in Military Region 7’s implementation of the foreign policy in 2019, contributed to bolstering the bilateral relations between the two peoples and militaries, and strengthening the whole people defense posture of the military region.

Cambodians feel happier Chol Chnam Thmay with visits of Vietnamese friends

The delegation of the Military Region 7 Command, led by its Commander, Lieutenant General Vo Minh Luong, started visiting Cambodian military units and localities from the beginning of April.

At this time of the year, Cambodia looks beautiful and youthful. Buds and blossoms appear on trees, which makes people feel happy and healthy, particularly when the traditional New Year festival of the Cambodian people – Chol Chnam Thmay, is coming.

In both formal meetings and informal talks with the visiting Vietnamese military delegation, Cambodian troops and people all repeated the sacrifices of Vietnamese volunteer soldiers, who laid down their lives for the revival of the Cambodian people.

As years have passed since the Cambodian people with the support of the Vietnam People Army completely defeated the Pol Pot clique, the sacrifices of Vietnamese volunteer soldiers and pains of the Cambodian people caused by the Pol Pot genocidal regime have gradually eased; but for all Cambodians, Vietnam has still remained a loyal and helpful friend.

Under the schedule, the Vietnamese military delegation visited Military Regions 1, 2 and 4 of the Royal Cambodian Armed Forces. At every stop, the visiting delegation was warmly welcomed by all Cambodian military units and civilian authorities. All hosts said that their Chol Chnam Thmay was happier, and that they would have more success and property in the new year when Vietnamese friends came to them on the occasion of their New Year festival. The Vietnamese military delegation also had a number of sport and cultural exchange activities with local military units and people.

During the meetings with local military and civilian leaders, General Luong, Commander of Military Region 7, expressed thanks for the sincere sentiment of the hosts for the visiting delegation as well as for effective supports of the Cambodian people and military in collecting and repatriating remains of fallen Vietnamese volunteer soldiers and experts in the past. He also hoped that the two sides would continuously cement the solidarity and friendship, promote peace and stability, and expand cooperation between the two nations and militaries.

Earlier another delegation of Military Region 7 led by its Political Commissar, Lieutenant General Tran Hoai Trung, also visited Cambodia on the Cambodian people’s Chol Chnam Thmay 2019. The delegation paid a courtesy calls on President of the Cambodian National Assembly Heng Samrin, Deputy Prime Minister Men Som On and Secretary of State of the Cambodian Ministry of Defense General Neang Phat, as well as visited a number of Cambodian military and police units.

The two delegations of Military Region 7 of Vietnam also visited and laid flowery wreaths at the Vietnam-Cambodia Friendship Monument in Phnom Penh, and Memorial of Vietnamese Volunteer Soldiers and Experts in Ba Chong village, Preak Bat ward, Stung Treng city, Cambodia.

According to General Trung, Military Region 7 and other Vietnamese military units usually pay visits and hold meetings and exchange activities with Cambodian partners on major Cambodian anniversaries with the aim of promoting mutual understanding and trust as well as boosting relations and cooperation between the two sides, following the motto for development of the Vietnam-Cambodia relations: “Good neighbor, traditional friendship, comprehensive and sustainable cooperation.”

Translated by Thu Nguyen