Global supply chain model

The Ho Chi Minh City tourism sector this year plans to focus on digitalisation of the industry and promotion of domestic tourism amid a downturn in tourism because of the COVID-19 pandemic.

The sector will continue its efforts to boost domestic tourism as the main factor driving the recovery of the tourism industry.

The tourism communication and stimulus campaign, ‘Hello Ho Chi Minh City,’ has been implemented to promote the city as a safe, vibrant and friendly destination.

Tourism cooperation and linkages between HCM City and the Northeast, Northwest and the Central regions will also serve to boost domestic travel.

The city aims to receive 33.5 million domestic visitors this year if COVID-19 remains under control in the country./.

Tet sales increase sharply on low prices

With a week to go for Tet (the Lunar New Year) sales of goods bought to celebrate the Lunar New Year have increased by 30-40 percent from normal times, according to market observers.

They attribute it to prices remaining steady and people’s increasing income at the end of the year.

Saigon Co.op’s supermarket chains have managed to meet market demand thanks to early preparation of goods, accurate forecast of demand and discounts, Nguyen Anh Duc, its permanent deputy general director, said.

In January sales increased by 37 percent compared to the same period in the previous month, with growth of fresh and processed foods, cosmetics, kitchen appliances, and garments being high, he said.

There have been no shortages of goods, especially pork, and no price hikes, he said.

Dinh Quang Khoi, head of marketing and customer care at MM Mega Market Vietnam, said customers have bought Tet goods earlier than usual, and retail sales increased by more than 10 percent compare with same periods of last year, while the increase is 5 -6 percent if the wholesale segment is included.

Shopping malls in Ho Chi Minh City like Vincom Central Dong Khoi, Takashimaya and Aeon Celadon Tan Phu are crowded, especially at weekends.

Sales of processed foods are expected to go up by more than 20 percent.

People are switching more and more to poultry meat and eggs instead of pork because the pork price is rising to the delight of companies like San Ha, Ba Huan and Vinh Thanh Dat.

According to experts, the prices of many items have never been so stable as this year as the Covid-19 pandemic caused global demand to shrink.

Many products could not be exported, and so producers and distributors switched their focus to the domestic market, increasing supply.

To sustain demand in this scenario enterprises have had to improve quality and keep prices competitive./.

HCM City in top six most preferred markets for investment: CBRE

There was an increase in interest in Ho Chi Minh City which ranked sixth among Asia Pacific investors’ most preferred property markets for investors, according to a survey by market research firm CBRE polling more than 490 Asia Pacific-based investors in November and December 2020.

With the diversification of supply chains encouraging more manufacturing investment in the city, industrial and logistics assets are keenly sought after, said the CBRE’s 2021 Asia Pacific Investor Intentions Survey.

“HCM City has already been on the radar of investors in recent years, especially those who are looking to invest in Southeast Asia, as the city is viewed as having the potential for greater appreciation in property values and higher yields,” said Dang Phuong Hang, CBRE Vietnam Managing Director.

The survey outlines top 10 Preferred cities for cross-border investment, with Tokyo (Japan) in the first place, followed by Singapore, Seoul (the Republic of Korea), Shanghai and Beijing (China), HCM City, Shenzhen (China), Sydney (Australia), Osaka (Japan) and Melbourne (Australia).

Investors who expressed interest in investing in Southeast Asia indicated that they are willing to pay more for real estate purchase. 39.4 percent of these investors are comfortable to pay more than 10 percent higher this year than what they are willing to pay in 2020, while 19.7 percent are willing to paying up to 10 percent higher.

In the search for returns, investors looking at Southeast Asia are turning to value-added and core assets, even though there are some who are starting to look at distressed assets. Industrial/logistics and office remain their preferred sectors, while the hospitality sector is gaining favour.

Henry Chin, CBRE’s Global Head of Investor Thought Leadership and Head of Research, Asia Pacific, said: “stronger interest in core investment reflects investors’ greater emphasis on tenant credit and stable cash flows.”

“Assets with a solid rent roll of three years or longer typically attract far more bidders than those lacking this type of security,” he added.

Logistics was the most popular sector for investment as the pandemic-driven acceleration of e-commerce consumption boosted demand for this asset class. While interest in the office sector weakened, investors retain an optimistic view towards this sector, expecting a contraction in office purchasing activity of no more than 10 percent over the next three years./.

January sees largest capital injection into stock market since early 2020: SSI

January saw the largest amount of investment capital poured into Vietnam’s stock market since the beginning of 2020 on the back of strong exchange traded fund (ETF) inflows, according to a report by SSI Securities Corporation.

Vietnam is Asia’s only stock market with non-stop capital injection over the last four week as it attracted more than 100 million USD last month thanks to massive ETF inflows, outweighing the net capital withdrawal of around 23.5 million USD, said SSI’s February strategic stock market report entitled “Co hoi trong bien dong” (Opportunity in volatility).

ETFs have also raked in about 129 million USD, or two third of the total inflows in 2020, mostly into VFM Diamond ETF (1.31 trillion VND or 57.15 million USD) and VFM VN30 ETF (860 billion VND).

The market also experienced strong foreign buying in the last three days of the month, raising foreign players’ net purchases of shares in January to about 127 billion VND.

SSI stated that Vietnam has become a quite attractive market largely owing to the country’s successful containment of COVID-19, positive economic growth and the fact that it remains a destination of the ongoing global production shift.

Though the pandemic has been a key contributor to the market volatility during this period of time, capital injection from ETFs into Vietnam remains a positive driver of the stock market, SSI said, adding that this also means increasing level of volatility.

According to the report, more than 81 billion USD was poured into stocks in both developed and emerging markets across the worrld last month, also with the domination of the ETFs./.

Vietnam increases pork imports to cool off rising domestic prices

Vietnam imported more than 141,000 tonnes of pork worth 334.4 million USD in 2020, representing a rise of 382 percent and 500 percent over the previous year, respectively, customs statistics showed.

The increase in imports was to make up for the shortage in pork supply caused by African swine fever which pushed up domestic prices in the first months of 2020.

The pork was mainly imported from Brazil, Russia, Poland, the US and Canada. Brazil was the largest exporter of pork to Vietnam last year, accounting for 24.5 percent of the import volume.

The average pork import price was 2.2 USD per kilo.

According to the Ministry of Agriculture and Rural Development, Vietnam approved 25 countries to export livestock and poultry meat to Vietnam, including more than 800 enterprises from 19 countries allowed to export pork to Vietnam.

Vietnam imported more than 43,300 pigs for breeding, mainly from Thailand, Canada, the US, Denmark and Taiwan (China).

Live hog prices tended to increase in many provinces across the country from early January due to increases in consumption demand ahead of Tet (Lunar New Year) to around 80,000 – 84,000 VND (4 USD) per kilo, around 5,000 VND higher than the end of December.

However, in recent days, pork prices decreased by around 1,000-5,000 VND per kilo.

Nguyen Van Trong, Deputy Director of the ministry’s Department of Livestock Production, said pork prices dropped in recent days because processing companies reduced their purchases as they had enough goods for consumption during Tet.

The enhanced prevention against smuggling of pork to China together with the increase in supply also helped lower pork prices.

Now Vietnam had 27.3 million pigs, an increase of 21 percent over a year ago and equivalent to 88.7 percent of the time before the disease occurred.

The Ministry of Industry and Trade said that early preparations were made to ensure enough supply of pork for Tet with many enterprises launching price stabilisation programmes./.

Australian expert highlights Southeast Asia’s trade prospects

Richard Maude, Senior Fellow at Australia’s Asia Society Policy Institute, has spoken highly of trade prospects of Southeast Asian nations against the backdrop of COVID-19.

In an article, he said that global trends in trade, foreign investment and production offer a mix of peril and opportunity for the Southeast Asian governments as they try to steer their damaged economies towards recovery.

“Beset by lockdowns, disrupted supply chains and travel restrictions, world trade volumes fell by historically steep levels in the first half of 2020. Southeast Asia was no exception – the region’s economies rely heavily on external demand and many play increasingly significant roles in East Asian supply chains,” he continued.

In the second quarter of 2020, for example, the value of goods exported from the ten members of the Association of Southeast Asian Nations (ASEAN) fell by 15 percent on a year-on-year basis and imports fell by 27 percent.

Foreign direct investment flows to Southeast Asia also declined sharply early in 2020.

The vertiginous plunge in world goods trade, at least, may now be bottoming out, but the International Monetary Fund (IMF) remains decidedly gloomy about prospects for a trade-led recovery in Asia.

Even so, amid all the uncertainty and downside risk, Southeast Asia may yet find itself better placed than other regions to trade itself out of trouble, the expert said, citing that East Asian economic regionalism will strengthen as one of the reasons.

Most major East Asian economies – China, Japan, the Republic of Korea and Taiwan – have managed to re-open their economies. China’s giant economy in particular is once again growing and helping keep Southeast Asian trade afloat.

Domestic consumption in Southeast Asia could double to 4 trillion USD over the next ten years.

Within the region, there are also signs the deep economic slump of the first half of 2020 is easing, at least in those parts of the region where the pandemic has been tamed. The decline in ASEAN global goods exports and imports, for example, slowed in the third quarter of 2020 on a quarter-on-quarter basis.

Vietnam, one of the best performing ASEAN economies, managed to eke out a small increase in economic growth in 2020, he cited.

Once it enters into force, the newly signed Regional Comprehensive Economic Partnership (RCEP) trade deal will give intra-Asian trading another boost. It is an incentive for large corporations to locate as much of their supply chains as possible within the bloc.

“ASEAN is also well placed to benefit from supply chain diversification within East Asia. Some manufacturing was already shifting to Southeast Asia before the pandemic.”

The pandemic has now reinforced interest from companies from around the world in regionalisation and supply chain diversification. Some governments, Japan, for example, is offering financial incentives to some of its companies to build production sites in Southeast Asia.

Like the rest of the world, the region faces headwinds and uncertainties, Maude noted, putting forth some suggestions for regional countries to use trade to help drive economic recovery./.

Tet sales increase sharply on low prices

With a week to go for Tet (the Lunar New Year) sales of goods bought to celebrate the Lunar New Year have increased by 30-40 per from normal times, according to market observers.

They attribute it to prices remaining steady and people’s increasing income at the end of the year.

Saigon Co.op’s supermarket chains have managed to meet market demand thanks to early preparation of goods, accurate forecast of demand and discounts, Nguyen Anh Duc, its permanent deputy general director, said.

In January sales increased by 37 per cent compared to the same period in the previous month, with growth of fresh and processed foods, cosmetics, kitchen appliances, and garments being high, he said.

There has been no shortages of goods, especially pork, and no price hikes, he said.

Dinh Quang Khoi, head of marketing and customer care at MM Mega Market Viet Nam, said customers have bought Tet goods earlier than usual, and retail sales increased by more than 10 per cent compare with same periods of last year, while the increase is 5 -6 per cent if the wholesale segment is included.

Shopping malls in HCM City like Vincom Central Dong Khoi, Takashimaya and Aeon Celadon Tan Phu are crowded, especially at weekends.

Sales of processed foods are expected to go up by more than 20 per cent.

People are switching more and more to poultry meat and eggs instead of pork because the pork price is rising to the delight of companies like San Ha, Ba Huan and Vinh Thanh Dat.

According to experts, the prices of many items have never been so stable as this year as the Covid-19 pandemic caused global demand to shrink.

Many products could not be exported, and so producers and distributors switched their focus to the domestic market, increasing supply.

To sustain demand in this scenario enterprises have had to improve quality and keep prices competitive.

One Commune One Product attracts Tet shoppers

Many products made under a programme called ‘One Commune One Product’ have become a big hit with consumers seeking to buy gift hampers for Tet (Lunar New Year).

Sticky rice grown by the Khau Nua Lech Thuong Quan Rice Cooperative in Bac Kan Province’s Ngan Son District is one such.

The co-operative has had to mobilise a lot of manpower to fulfil the mountain of orders it got.

Its rice is renowned for its plasticity and aroma, and is well known to consumers across the country.

According to a co-operative spokesperson, 100 additional workers were hired for packaging and delivery but demand still not be met.

In the last month or so it supplied more than 10 tonnes of rice to markets such as HCM City and Ha Noi.

Phan Thanh Hieu, director of the Phuong Nam Food Joint Stock Company, said this year, due to the impact of the COVID-19 epidemic, businesses had prepared for low demand, but two high-end products, organic ST 25 and ST 25 rice varieties, grown together with shrimp in Soc Trang Province, are out of stock.

“We have had to turn down many orders or deliver less than the ordered quantity though the rice prices are four to five times higher than that of other rice. ST 25 grown together with shrimp has a price of VND285,000(US$12.4) for 5kg, VND15,000 higher than ST 25.”

Le Kieu Phuong, director of Phuc Thinh Production and Commerce Co. Ltd, said her company recently got a One Commune One Product (OCOP) certificate for its three prawn cracker production lines in Ca Mau Province.

It is now working on selling the products to major supermarket chains before Lunar New Year with the aid of the certificate, she said.

In Dong Nai Province, where more and more people are becoming interested in regional specialties, seven OCOP producers have signed contracts with Central Retail Viet Nam to sell 21 items.

Nguyen Thi Bich Van, media director of Central, said the two supermarkets would design their display shelves to ensure OCOP products easily catch the eye of shoppers as part of a commitment to support them.

MM Mega Market is also selling 56 OCOP confectionery and jam products for Tet at discounts of up to 50 per cent to introduce them to customers.

Do Quoc Huy, marketing director of Saigon Co.op, said the company is helping develop OCOP goods, but their limited production means they could only be sold locally and not across its retail chains.

The two-year-old OCOP programme has helped a number of localities develop a wide variety of agricultural and non-agricultural products, providing steady incomes to many locals.

COVID-19 pandemic continues to ravage travel industry

A resurgence of Covid-19 just before the Tet (Lunar New Year) holiday has hugely impacted travelling, again demonstrating its impact on the tourism industry.

“There has been an immediate impact on the hospitality business with several cancellations across the country, not only in the affected destinations but anywhere with access via an airport,” Mauro Gasparotti, director of Savills Hotels Asia Pacific, said.

“Prior to these local transmissions, the industry was anticipating increased travel demand during and after the Tet holiday, which would have been a good start to the year,” Gasparotti said.

Travel interest is diminishing amid a mist of uncertainty with air travel demand dropping 15 per cent immediately after the news release.

Online flight search demand to Da Nang and HCM City during this peak period of the year dropped 35 per cent and 34 per cent week-on-week respectively, according to OTA Insight.

Some companies immediately enforced travel restrictions, with requests to limit attending events and large gatherings.

This has directly affected MICE (Meetings, Incentives, Conferences and Exhibitions) business in city hotels, where several conferences have been put on hold or delayed.

Drive-to destinations have also been affected by weekend cancellations.

Last year international arrivals to the country numbered just 3.8 million, a 78 per cent decline from 2019.

Domestic traveller numbers fell 34 per cent to 56 million.

Hotels and resorts suffered badly, with many being forced into temporary closure.

Last year occupancy and average daily rates (ADR) both dropped, while revenues fell 70 per cent.

In Ha Noi, the average occupancy was 32 per cent compared to 80 per cent in 2019 while it dropped to 23 percent in HCM City from 72 per cent.

The national average of 62 per cent in 2019 plummeted to just 24 per cent last year.

January started on a positive note, with hotels in key destinations seeing increased MICE and event bookings while at some resorts corporate bookings started to return, Gasparotti said.

“The market in 2021 is expected to be broadly similar to most of 2020, at least until borders reopen to leisure and business trade. Hotels have adapted by considerably reducing operating costs to establish lower breakeven points.

“The good news is that several destinations are still performing at acceptable levels.”

The performance in December and January was positive for destinations like Phu Quoc and Vung Tau, which appeal to both local leisure travellers and year-end company trips.

Some hotels have used promotions, such as ‘staycation’ packages and F&B deals to nurture local demand, which have propped up their numbers.

Fruit and vegetable exports decline by 7.6% in January

Vietnamese fruit and vegetable exports in January endured a drop of 7.6% to US$260 million compared to the same period from last year, largely due to unpredictable developments relating to the COVID-19 pandemic, according to the Ministry of Agriculture and Rural Development (MARD).

The MARD’s Agro-Processing and Market Development Authority stated that China was the leading importer of local fruit and vegetables last year, making up 56.3% of the total market share, although fruit and vegetable exports to this market fell by 25.7% to US$1.84 billion compared to 2019.

Elsewhere, the United States market ranked second with US$168.8 million, followed by Thailand with US$157.2 million, the Republic of Korea with US$143 million, and Japan with US$127.7 million.

Furthermore, January saw the country’s import value of fruit and vegetables enjoy an annual increase of 22.3% to US$140 million, with China, the US, and Australia representing the three largest suppliers to the Vietnamese market.

Moreover, the import value of fruit and vegetables from China in 2020 decreased by 21% compared to 2019’s figures, while imports from the US and Australia witnessed respective increases of 2.3% and 1%.

Due to complicated developments relating to COVID-19, the nation’s fruit and vegetable export activities have been significantly impacted as consumers have changed their shopping habits with several countries also moving to tighten import procedures as a way of securing their borders.

Experts have therefore advised local firms to strive to strengthen their supervision over product quality to avoid violating quarantine regulations, and ensure that food and safety rules are followed as a means of facilitating relevant customs clearance processes.

Acceleration opportunity for Vietnamese AI startups

The AI Accelerator Challenge 2021, organised by VSV Foundation under the auspices of the Ministry of Science and Technology and funded by the Australian Embassy, is officially open for registration.

The AI Accelerator Challenge 2021(AAC 2021) is an acceleration programme specifically designed for Vietnamese AI startups with innovative ideas and products that address the practical needs of the market.

AAC 2021, themed “AI in pandemic – Adapting to the new normal”, has been organised with the goal of identifying, incubating, promoting, and developing potential AI-powered applications in numerous fields such as finance, commerce, electronics, telecommunications, manufacturing, agriculture, healthcare, education, transportation, and smart city development. Participants will have the opportunity to undertake a 4-week online training course, after which the top five teams will be awarded prizes including a service support package worth VND500 million($21,740), a business promotion and mentoring course worth VND200 million ($8,700) and up to VND200 million in seed investment with no equity required.

The programme will assist Vietnam’s economic recovery from the COVID-19 pandemic, as well as help to foster the development of a vibrant AI startup environment. “Vietnam should be very proud of its successes in tackling COVID-19,” said Andrew Barnes, Australian Chargé d’Affaires to Vietnam. “Through sponsoring programmes to promote innovative applications using AI, Australia is demonstrating its strong commitment to assisting Vietnam in overcoming the COVID-19 pandemic, supporting economic recovery, and strengthening its innovation system.”

“The government is trying to implement many activities to cope with disruptions caused by COVID-19, in which innovation and the application of advanced science and technology have been defined as the key to increase the resilience of businesses and the recovery of the economy. AI is one of the core technologies that promise to revolutionise many of Vietnam’s key socioeconomic sectors such as health, education, business, commerce, finance, and agriculture,” Deputy Minister Bui The Duy from the Ministry of Science and Technology (MoST) added.

“We are proud to be a part of this programme,” said Thach Le Anh, founder of VSV Foundation. “AAC 2021 will not only allow Vietnamese AI startups to receive mentoring from top AI technology experts but also support them with business development and fund-raising, including by raising capital from angel investors and leading domestic and foreign venture capital funds. The startups will be able to raise up to VND2 billion ($86,960) after the programme ends.”

This programme is funded by Australia’s flagship Aus4Innovation programme which will disburse AUD11 million ($8.44 million) over four years (2018-2022) to strengthen the Vietnamese innovation system and prepare for Vietnam’s economic and digital future. It is funded by the Australian Department of Foreign Affairs and Trade and managed by the Australian Commonwealth Scientific and Industrial Research Organisation in strategic collaboration with the MoST.

Investors give EVN Genco 2 cold shoulder at IPO

Despite Power Generation Corporation 2 (EVN Genco 2) owning substantial interests in several thermal and hydropower plants, 99.97 per cent of the stake it offered at its initial public offering (IPO) was unmarketable.

The Ho Chi Minh City Stock Exchange (HSX) has published the results of the auction registration for the stake of EVN Genco 2.

The company offered 580 million shares or 48.9 per cent of its charter capital to investors with the initial price of VND24,520 ($1.06) per share and expected to acquire VND14.225 trillion ($618.5 million) from the sale.

However, only 14 investors registered to join the auction, registering 262,500 shares, including 200,000 shares from a single foreign investor, 10,500 shares by five Vietnamese people, and 52,000 shares by eight domestic investors.

At present, EVN Genco 2 owns a 100 per cent stake in Trung Son Hydropower One Member LLC, which operates Trung Son hydropower plant with the designed capacity of 1 billion kWh per year.

It also owns a series of thermal power companies including Pha Lai, Haiphong, and Thac Mo, among others.

According to its financial statement, the company generated 17.8 million kWh, equaling 97 per cent of its plan for the whole year and 7 per cent of the power coursing through the whole national power grid.

The unmarketable IPOs of EVN Genco had precedent because they own too many member companies and subsidiaries. Buying stakes in the plants one by one will help investors limit risks.

Previously, EVN Genco 3 failed in its IPO in February 2018 when only 2.8 per cent of the offered shares was sold.

Vietnam targets 60 – 62 bln USD from agro-forestry-fisheries export by 2030

Vietnam has set a goal of earning around 60-62 billion USD from agro-forestry-fisheries export by 2030 under a project recently approved by the Prime Minister.

The project looks to fully and sustainably join the global supply chain of agro-forestry-fisheries, improve the quality and value of their export to meet regulations of importers, and develop their trademarks in international markets.

Of the figure, 25 billion USD will be from major farm produce, 16-17 billion USD from forestry products, 15 billion USD from aquatic products, 3-4 billion USD from animal husbandry products, and nearly 2 billion USD from others.

Agro-forestry-fisheries export is expected to grow by some 6-8 percent annually. About 40 percent of export will be national brands, 70 percent have their origins traced, and around 60 percent of exports are processed and deeply processed ones.

To such end, the project targets fine-tuning mechanisms and policies to ensure food safety and develop support industry, assisting firms in protecting intellectual property right in export markets, popularising trademarks on domestic and foreign media./.

Central localities seek new development routes amid COVID-19

Central provinces must adjust their socio-economic development goals and strategies to minimise the adverse effects brought by the COVID-19 pandemic and natural disasters in 2020, officials have said.

Nguyen Tan Tuan, Chairman of the People Committee of Khanh Hoa province, said while the province’s tourism industry was hit especially hard, growth in the industrial sector managed to stay positive.

“Since the beginning of the pandemic, we have made it our highest priority to keep the virus in check. Our effort has allowed us to attract a number of foreign investors as they moved from regions hard-hit by COVID-19,” Tuan said.

He said the province has been making use of the downtime to upgrade and invest in its tourism infrastructure, waiting for international tourists to return. In the meantime, Khanh Hoa has started several promotion campaigns to attract domestic travellers.

Meanwhile, Quang Nam made significant gains in developing modern agriculture in 2020 despite being one of the central provinces severely hit by natural disasters last year.

“Agriculture has always been a key priority in our province’s development scheme. During the pandemic, it has become Quang Nam’s economic driver,” said Le Van Dung, Deputy Secretary of the provincial Party Committee.

Dung said with tourism and commerce disrupted because of the pandemic and natural disasters Quang Nam chose to make large investments in industrial projects to mitigate the economic damage to the province in the long run.

Quang Ngai, a traditionally strong economic performer in the region thanks to being home to the country’s largest oil complex the Dung Quat Refinery, has been looking for ways to become less reliant on the oil industry.

Dang Van Minh, Chairman of the provincial People’s Committee, said the province has been working with its partners to set up numerous large-scale industrial parks.

“We want to become one of the country’s best destinations for investments and industrial development. The province aims to build a transparent and healthy business environment to win over potential investors,” said Minh.

Meanwhile, Da Nang, the central region’s main economic hub and the city most affected by the pandemic with nearly 200,000 jobs lost during 2020, said it has set a new course to push for greater digitalisation of commerce, smart city technologies and star ups culture.

“The city aims to diversify its economy. While we still identify tourism and services as major industries we want to see strong development on the fronts of information technology and digitalisation in the near future,” said Nguyen Dinh Vinh, head of the municiapal Party Committee’s Board for Information and Education./.

Cambodia to resume farmed fish import from Vietnam

The Cambodian Ministry of Agriculture, Forestry and Fisheries on February 8 issued a press release on the resumption of the import of aquatic products, including farmed fish, from neighbouring countries, including Vietnam.

The import suspension was announced by the Cambodian side one month ago.

On January 19, Vietnamese Minister of Industry and Trade Tran Tuan Anh sent a letter to Cambodian Minister of Commerce Pan Sorasak, saying Vietnam’s shipments of farmed fish failed to pass through customs and were returned.

The import ban showed signs of running counter to the trade liberalisation spirit of the World Trade Organisation (WTO) and the ASEAN Economic Community, of which both countries are members, he said.

In the press release, the Cambodian Ministry of Agriculture, Forestry and Fisheries said it will continue to collect feedback from the Cambodian Aquaculture Association, importers and exporters, and concerned agencies that are Cambodia’s trade partners to build and recognise technical standards.

Le Bien Cuong, head of the Vietnamese trade affairs office in Cambodia, told the Vietnam News Agency on February 8 that the Cambodian side has shown its goodwill and active response.

Cambodia would consider imposing additional non-tariff technical measures in farmed fish import, including certificates of product origin and quality, he said.

According to the Vietnamese ministry, in recent years, Vietnam has exported about 60 million USD worth of aquatic products to Cambodia annually. Although Cambodia is not a major market of Vietnamese aquatic products, its stable import demand has contributed significantly to cross-border trade development, as well as job creation and income generation for local residents./.

VinFast acquires licence to test self-driving electric vehicles in California

VinFast has just become the 57th automaker to receive a licence to test self-driving electric vehicles in California, the US.

The company said its three SUV models VF31, VF32 and VF33 met the highest global safety standards including five-star ratings from the US National Highway Traffic Safety Administration and the European New Car Assessment Programme.

VinFast has just become the 57th automaker to receive a licence to test self-driving electric vehicles in California, the US.

Automakers, including big names such as Apple, Tesla, BMW, and Volkswagen according to California’s Department of Motor Vehicles website, have also secured their licences to test run their vehicles in the Golden State, the world’s largest technology and innovation hub.

All three of the company’s models are to be equipped with level 2-3 autonomous features, which include 30 smart features divided into seven groups: intelligent steering assist system, lane control system, active journey control system, multi-point collision warning system, comprehensive collision mitigation system, intelligent automated parking system and driver monitoring system.

Models VF32 and VF33 will be sold in the US, Canada and Europe markets from 2022. The launch of high-tech electric vehicles, including electric scooters, electric buses and personal electric cars, is part of VinFast’s pre-defined roadmap since entering the automotive market three years ago.

Customers can start ordering the cars in May this year in Vietnam and in November in the US, Canada and the EU.

In Vietnam, Vietnamese automakers also started to install electric vehicle charging stations at commercial centres at Vinhomes Ocean Park, Vincom Long Bien in Hanoi to serve the first electric cars produced, expected to be available this year.

VinFast sold 31,500 cars in Vietnam last year, with its VinFast sedan and SUV models among the bestsellers in their respective segments./.

Agricultural, forestry, fisheries exports up sharply in January

Vietnam’s exports of agricultural, forestry, and fisheries products grew 27.1 percent year-on-year to 3.49 billion USD in January.

Rubber was the best performer in the opening month of the year, following on from its uptrend last year and totalling 200,000 tonnes worth 321 million USD, increases of 2.2-fold and 2.4-fold, respectively, year-on-year.

Shipments of key forestry products totalled 1.33 billion USD, up 47.8 percent year-on-year. Exports of wood and timber products alone reached 1.25 billion USD, up 48.4 percent.

Fisheries exports rose 19.6 percent to about 600 million USD, following repeated declines last year, especially after the outset of COVID-19.

Prawn exports experienced the highest growth last year among all fisheries items, up 11 percent to 3.7 billion USD.

Several major export earners, meanwhile, declined in January, including rice, fruit and vegetables, coffee, and pepper.

The country exported around 280,000 tonnes of rice for 154 million USD in the month, down 29.5 percent and 20.2 percent, respectively, from a year earlier.

A similar trend was seen in fruit and vegetables, with shipments reaching just 260 million USD, a year-on-year decline of 7.6 percent./.

Da Nang developing supporting industries

The central city of Da Nang has set a goal of developing supporting industries in tandem with high-tech industry to create products with high added value for export.

Under action programme No 01-Ctr/TU issued by the municipal Party Committee on December 10, 2020, the industry-construction sector is to grow by 11-11.5 percent annually between 2020 and 2025.

The municipal Department of Industry and Trade has reported that several large-scale projects in supporting industries have gradually joined the global supply chain.

Since 2016, Da Nang has attracted 24 new supporting industry projects worth over 9 trillion VND, two of which are foreign-invested, with 240 million USD, specialising in manufacturing aviation and automobile spare parts.

Da Nang is now home to around 110 supporting industry firms, accounting for 6.3 percent of all industrial enterprises in the city.

However, the number of domestic companies in the field remains limited, and most are of small scale with average technological capabilities. Meanwhile, foreign firms mostly process and assemble imported materials because the rate of domestically-made items remains low. Links between foreign and domestic businesses, meanwhile, are still less than needed.

General Director of the Long Hau Company, Tran Hong Son, said a number of local companies have yet to meet requirements for being recognised as supporting industry enterprises or manufacturers under Vietnam’s regulations.

He suggested quickly completing planning for an area devoted to supporting industry enterprises inside the Da Nang Hi-tech Park (DHTP) and putting it into operation to attract capable investors.

Head of the management board of the DHTP and industrial parks in Da Nang, Pham Truong Son, said the municipal People’s Committee has completed the planning for a supporting industrial park in the DHTP, which has been submitted to the Prime Minister for approval.

Once approved, Da Nang will outline a list of sectors in need of investment and then set up the park, the first of its kind in supporting industries in the city. Investors in the park would work with those at DHTP to create an industrial ecosystem.

If Da Nang develops supporting industries, investment will also pour into nearby localities, he said.

Under Politburo Resolution No 43/NQ-TW, Da Nang is to be a nucleus of the central key economic region and will develop hi-tech industries and information technology. To this end, Son suggested making the best use of its geographical location, infrastructure, human resources, and supporting industry.

Under the pending plan, the supporting industrial park is to cover an area of over 102 ha in Hoa Vang district, adjacent to the DHTP and the city’s information technology park.

In line with Resolution No 01-NQ/TU from the standing board of the municipal Party Committee, supporting industry enterprises will increase in number by 2030 and be capable of producing highly-competitive products, focusing on spare parts, software, and key services in support of priority industries. The city will also attract multi-national groups to guide and facilitate technology transfer.

By 2025, the city expects to have over 150 supporting enterprises, with at least 10 percent of domestic supporting enterprises being able to supply products to manufacturers. The value of the supporting industry will make up around 30 percent of added valued in the manufacturing and processing sector. At least one multi-national group or company is to invest in manufacturing end products.

Of the more than 300 supporting enterprises to be in business by 2030, at least 15 percent are to be able to directly supply products to manufacturers and assemblers. The value of the supporting industry will account for nearly 40 percent of added value in the manufacturing and processing sector and at least one multi-national group or company will invest in manufacturing end products./.

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

By Van Anh

Workers loading coils on trucks at a steel mill in northern Viet Nam. An early warning system on trade remedy risks for certain exports will be completed this year so that enterprises can gear themselves up early. — Photo baodautu.vn

Le Trieu Dung, Director of the MoIT’s Trade Remedies Authority of Vietnam (TRAV), said the ministry will accelerate current trade remedy probes into imports so as to take timely action to protect domestic manufacturers.

An early warning system on trade remedy risks for certain exports will be completed this year so that enterprises can gear themselves up early.

Additionally, MoIT will coordinate with relevant agencies to boost action against origin fraud and illegal transhipments aimed at evading trade remedies, while working to improve the trade remedy-related capacity of domestic businesses and State agencies, Dung said.

Since becoming a member of the WTO and free trade agreements (FTAs), Viet Nam has opened its market and slashed import tariffs on a large number of goods, exposing its businesses to strong competition from imports.

Trade defence measures, which are policy tools permitted by the WTO, he said, have an important role to play in ensuring effective economic integration and minimising its adverse impact on businesses.

Between 2016 and 2020, MoIT launched 13 trade remedy investigations into imported commodities such as DAP fertiliser, monosodium glutamate (MSG), steel, and BOPP film.

Remedies applied so far have proved effective in addressing losses caused by surges of imports and protecting domestic producers, he said.

He pointed out that State agencies and some enterprises have worked to promote their trade remedy-related capacity, but many shortcomings remain, so a new policy and legal framework that matches provisions in the FTAs Viet Nam has joined is needed.

The issue of trade defence as stipulated in Chapter 5 of the Law on Foreign Trade Management, but one chapter cannot provide all detailed regulations. This has led to certain limits in the investigation and implementation of trade defence measures.

New issues frequently emerge in the field, which also requires that relevant State agencies and businesses have in-depth knowledge about law and finance. The complex developments of COVID-19 last year also hampered support to enterprises, he acknowledged.

Meanwhile, trade remedy probes targeting Vietnamese exports in foreign markets also increased considerably in 2020 and are projected to rise even higher this year.

Given this, he said, MoIT has recommended local businesses equip themselves with knowledge on trade remedy regulations, particularly those of Viet Nam and export markets while readying resources to cope with possible foreign trade remedies.

They should also keep a close watch on the import of related products so as to detect any signs of dumping or subsidies in a timely manner and prevent losses for domestic manufacturers.

Railway companies suffer losses due to COVID-19

Vietnamese railway companies reported large losses in 2020 due to the impacts of the COVID-19 pandemic.

Ha Noi Railway Transport JSC (HRT) earned VND469 billion (US$20.5 million) in the fourth quarter of 2020, down 21 per cent year-on-year.

Cost of goods sold accounts for most of net revenue, thus gross profit totaled only over VND8 billion, down sharply compared to VND42 billion in the same period of 2019. After deducting expenses, the after-tax loss in Q4 was estimated at nearly VND55 billion, while in the same period last year its loss was just more than VND12.5 billion.

In 2020, HRT achieved revenue of VND1.94 trillion, down 24 per cent year-on-year. It suffered a loss of VND195 billion in the year while enjoying profit of VND14 billion in 2019.

Previously at the General Meeting of Shareholders in 2020, the company approved a plan for 2020 which expected total revenue to reach VND1.63 trillion, and a loss up to VND335.4 billion due to the influence of COVID-19.

Saigon Railway Transport JSC (SRT) announced Q4 revenue of VND282 billion, down by 22.5 per cent year-on-year. It reported an after-tax loss of more than VND105 billion.

For the whole year 2020, SRT reported an accumulated loss of VND218 billion, while the business had a profit of VND14.6 billion in 2019.

Due to the impact of the COVID-19 pandemic, many railway companies faced difficulties. According to experts, the railway industry in 2020 experienced the most difficult period in history.

Viet Nam Railway Corporation (VNR) also announced that its revenue in the first nine months of 2020 decreased 34.2 per cent year-on-year, equivalent to a decrease of VND1.18 trillion.

Viet Nam gains cassava export growth in 2020 despite COVID-19

Viet Nam gained growth in the export of cassava chips and cassava-made products in 2020 despite the COVID-19 pandemic, according to the Department of Agricultural Product Processing and Market Development.

Exports last year reached 2.76 million tonnes, earning US$989 million, an increase of 9 per cent in volume and 2.4 per cent in value compared to 2019. However, the average export price of those products reduced by 6 per cent to $358.3 per tonne year on year.

In December alone an estimated 330,000 tonnes with a value of $118 million were exported.

Impacts of the COVID-19 pandemic did cause problems for the cassava production industry according to the department under the Ministry of Agriculture and Rural Development, but it was still one of the few agricultural products with a positive growth in export value.

The exports of cassava chips in 2020 reached 640,000 tonnes, earning $139 million, up 60 per cent in volume and 75 per cent in value over the same period last year. The average export price for this product reached $217 per tonne, up 10 per cent.

Tapioca export was estimated at 2.1 million tonnes with a value of $850 million, down 1 per cent in volume and 4 per cent in value over the same period in 2019. Its average export price reached $401 per tonne, down 4 per cent.

According to the department, China was the largest export market with the total volume of cassava chips and cassava-made products reaching 1.9 million tonnes, earning $772 million. That’s an increase of 11.5 per cent in volume and 2.7 per cent in value compared to 2019.

Taiwan and Malaysia were also two other largest export markets of Vietnamese cassava with the growth in export value of 15 per cent and 3 per cent year on year, respectively, in the first 11 months of 2020.

In China market, Viet Nam is currently the second largest supplier of both cassava chips and tapioca, according to China’s General Department of Customs.

Vietnamese garments made with Korean fabrics to enjoy tax incentives in EU

Local garments and clothing items made using fabrics from the Republic of Korea (RoK) are set to enjoy lower tariffs than in the EU, according to a statement issued on February 8 by the Korean Ministry of Trade, Industry and Energy.

Previously, clothing items had been required to be made using locally produced fabrics in order to get the benefits of the EU-Vietnam Free Trade Agreement (EVFTA).

Subsequently, the Korean Ministry of Trade, Industry and Energy has revealed that with the Republic of Korea (RoK) representing the second-largest supplier of fabrics in Vietnam, the latest policy will cause greater demand for products from the RoK in comparison to other competitors such as those from China and Taiwan (China).

In line with this, the country has to import up to 80% of raw materials in order to meet the needs of the domestic garment and textile industry.

Last year saw China make up 55% of the nation’s fabric imports, followed by the RoK, Taiwan (China), and Japan, accounting for 16%, 12%, and 6%, respectively.

Most notably,  the country’s fabric exports from the RoK declined by 18.4% on-year to US$2.35 billion last year.

Da Nang seeks to develop supporting industries

The central city of Da Nang has set a goal of developing supporting industries in tandem with high-tech industry to create products with high added value for export.

Under action programme No 01-Ctr/TU issued by the municipal Party Committee on December 10, 2020, the industry-construction sector is to grow by 11%-11.5% annually between 2020 and 2025.

The municipal Department of Industry and Trade has reported that several large-scale projects in supporting industries have gradually joined the global supply chain.

Since 2016, Da Nang has attracted 24 new supporting industry projects worth over VND9 trillion, two of which are foreign-invested, with US$240 million, specialising in manufacturing aviation and automobile spare parts.

Da Nang is now home to around 110 supporting industry firms, accounting for 6.3% of all industrial enterprises in the city.

However, the number of domestic companies in the field remains limited, and most are of small scale with average technological capabilities. Meanwhile, foreign firms mostly process and assemble imported materials because the rate of domestically-made items remains low. Links between foreign and domestic businesses, meanwhile, are still less than needed.

General Director of the Long Hau Company, Tran Hong Son, said a number of local companies have yet to meet requirements for being recognised as supporting industry enterprises or manufacturers under Vietnam’s regulations.

He suggested quickly completing planning for an area devoted to supporting industry enterprises inside the Da Nang Hi-tech Park (DHTP) and putting it into operation to attract capable investors.

Head of the management board of the DHTP and industrial parks in Da Nang, Pham Truong Son, said the municipal People’s Committee has completed the planning for a supporting industrial park in the DHTP, which has been submitted to the Prime Minister for approval.

Once approved, Da Nang will outline a list of sectors in need of investment and then set up the park, the first of its kind in supporting industries in the city. Investors in the park would work with those at DHTP to create an industrial ecosystem.

If Da Nang develops supporting industries, investment will also pour into nearby localities, he said.

Under Politburo Resolution No 43/NQ-TW, Da Nang is to be a nucleus of the central key economic region and will develop hi-tech industries and information technology. To this end, Son suggested making the best use of its geographical location, infrastructure, human resources, and supporting industry.

Under the pending plan, the supporting industrial park is to cover an area of over 102 ha in Hoa Vang district, adjacent to the DHTP and the city’s information technology park.

In line with Resolution No 01-NQ/TU from the standing board of the municipal Party Committee, supporting industry enterprises will increase in number by 2030 and be capable of producing highly-competitive products, focusing on spare parts, software, and key services in support of priority industries. The city will also attract multi-national groups to guide and facilitate technology transfer.

By 2025, the city expects to have over 150 supporting enterprises, with at least 10% of domestic supporting enterprises being able to supply products to manufacturers. The value of the supporting industry will make up around 30% of added valued in the manufacturing and processing sector. At least one multi-national group or company is to invest in manufacturing end products.

Of the more than 300 supporting enterprises to be in business by 2030, at least 15% are to be able to directly supply products to manufacturers and assemblers. The value of the supporting industry will account for nearly 40% of added value in the manufacturing and processing sector and at least one multi-national group or company will invest in manufacturing end products.

Can Tho attracts largest FDI project of US$1.3 billion

Can Tho City’s People’s Committee granted an investment registration certificate on the morning of February 8 to representatives from investors of the O Mon II Thermal Power Plant Project.

The factory aims to meet increasing demand for electricity from the regional power grid and the national power system, thereby attracting domestic and foreign investment in order to continue contributing to socio-economic development in Can Tho and throughout the Mekong River Delta region.

O Mon II Thermal Power Plant represents the largest-ever FDI project in Can Tho, which has increased the number of FDI projects in the region to 85, with total registered capital of approximately US$2 billion, including seven Japanese FDI projects capitalised at more than US$1.3 million.

Tai Miura, general director of Marubeni Asian Power Vietnam Co., Ltd, spoke highly of timely and strong support offered by relevant agencies of Can Tho in order to facilitate the firm’s procedures as a means of swiftly obtaining an Investment Registration Certificate.

Miura also stressed that the project will make further contributions aimed at meeting the power development needs of the city and the wider region, adding that the company has committed to using hi-tech equipment in implementing the project, minimising the environmental impact, and transferring technological expertise to the locality.

During the event, the chairman of Can Tho City’s People’s Committee Tran Viet Truong expressed his belief that the participation of both Marubeni Group and Vietnam Investment Construction and Trading Joint Stock Corporation will help deploy the O Mon II thermal power plant project in line with the schedule. Indeed, it will ultimately contribute to accelerating the local economy as well as generating jobs for residents.

He therefore emphasised that the city will strive to create the optimal conditions as part of the implementation of the project, create an open investment environment, and turn Can Tho into a reliable and attractive destination for investors.

VN, Japan banks provide joint financial services

Saigon Commercial Joint Stock Bank (SCB) has recently entered into a strategic cooperation deal with Kiraboshi Business Consulting Vietnam, the representative of Kiraboshi Bank of Japan.

Representatives of the two banks said that such comprehensive cooperation will enable the two banks to develop into a major financial cooperation alliance in the future that is to support businesses and investors of the two countries.

They will also expand cooperation to serve clients of other countries alongside Vietnamese and Japanese ones.

SCB Acting General Director Jeremy Chen explained said that more and more Japanese organizations and businesses are interested in investing in the Vietnamese market, and this is why SCB has teamed up with the Japanese partner to provide financial support and advice for clients.

Gold investors urged to stay cautious amid strong market volatility

Vietnam’s gold market has witnessed strong market volatility in the first month of the year, for which experts warned such trend could further persist in February due to global economic-political uncertainties.

In the global market, gold prices surged by US$33 to US$1,931 per ounce in early 2021, the highest since last November. The price, however, suffered a sharp decline by US$20 to US$1,848.1 per ounce in late January and US$1,840 in early February.

The domestic gold prices, meanwhile, seemed to stay away from the global trend as state-owned Saigon Jewelry Company (SJC), the country’s largest gold and gold jewelry production and distribution company, posted the selling and buying prices in February at VND56.3-56.8 million (US$2,457–2,479) per tael, slightly higher than the corresponding prices of VND55.05 -56.67 million (US$2,394-2,473) from early 2021. A tael is 37.5 grams or 1.2 ounces.

While the global gold prices are on a declining trend, it is expected to go up in long-term at a time when governments around the world are injecting cash and draft supporting polices to speed up economic recovery process.

Moreover, high demand for gold after the Lunar New Year holidays in Asian countries could further drive prices of this precious metal up.

In a surprise move, India, the second-largest consumer of gold in the world after China, announced its decision to cut half the import duty for gold and silver, saying the move is necessary to curb inflows of illegal supplies and boost domestic consumption.

According a Kitco News outlook survey, 84% of respondents said they see gold over US$2,000 an ounce by the end of 2021, while Credit Suisse expected the gold prices to average US$2,100.

Risks remain

On February 3, SJC gold prices topped VND57 million (US$2,487) per tael, driving domestic gold prices up to around VND5.3 million (US$231.27) per tael, higher than the prices in global market.

With three weeks away from the God of Wealth Day [February 21], the day when people would rush to buy gold expecting this would bring good fortune to their businesses and families in a new year, the gold prices are expected to go up.

Investor Director of Maybank KimEng Vietnam Phan Dung Khanh predicted the gold prices in the God of Wealth Day would rise by 3-5% from previous days.

“Assuming the global gold prices in the God of Wealth Day are around US$1,850 per ounce [or US$2,220 per tael], the domestic price should be VND56 million (US$2,436) per tael, but a strong demand could push the prices to VND57.7-58.8 million (US$2,517-2,565) per tael,” he noted.

Given a large gap between domestic and international gold prices, banking expert Nguyen Tri Hieu said it would be high risks for investors to bet their money on gold at the moment.

“Gold prices could change its course immediately when bad news turns up,” Mr. Hieu suggested.

In fact, over the last few months, many gold investors have suffered losses of up to hundreds of dollars per tael due to a volatile market, added Mr. Hieu.

Sharing Mr. Hieu’s view, economist Can Van Luc said a new US administration under President Joe Biden with different economic policies could cause a major shuffle in the international gold market.

COVID-19 boosts online shopping for Tet

Ms. Thu Hang, an accountant from Techcombank in Hanoi, is busier than usual with financial settlements at the end of the year, and online shopping on e-commerce sites is a salvage solution for her to prepare for Tet, especially in the context of the outbreak of COVID-19.

This year, Tet items such as kitchen guard meat, dried bamboo shoots, mushrooms, sausages, and clean food are more available on e-market than the previous year at the convenience of local consumers like Ms. Thu Hang. Many retailers have offered more promotions and diverse products with reasonable prices.

In order to meet the demand of online shopping during the Lunar New Year, e-commerce floors have pre-stocked goods and integrated new technology for online shopping activities.

Compared to the previous Tet holiday, Tiki, a Vietnamese online marketplace, increased at least its goods supply by 30%, focusing on packaged food, beverages, nutritional products, milk, spices.

“We expect sales in this year’s Lunar New Year at Tiki will grow up to 70% over the same period last year”, a representative from Tiki said.

Shopee, owned by Singapore-based tech group Sea, has worked with its vendors, brands and shipping partners to launch a new program for Tet delivery during the Lunar New Year.

Brick-and-mortar retailers such as Saigon Co.op, Big C and Megamarket have turned to their websites and apps to stimulate consumption . Co.opmart supermarkets saw an increase of 30-40% in online orders in recent days. Sales of Tet gift baskets through e-retailing have increased by 200% compared to the same period last year.

Hanoi Trade Corporation (Hapro) in cooperation with BRG Retail has promoted online shopping channel through its BRG Shopping app and Facebook fanpage, according to Deputy General Director of Hapro Do Tue Tam.

According to a representative of BigC/GO!, the supermarket chain also receives orders via Zalo and offer free delivery during this Tet season, in addition to receiving orders by phone and website as usual.

“COVID-19 has created an opportunity for businesses to boost the process of digital transformation, including online sales. We believe that this year’s Lunar New Year will see a boom in online shopping,” Mr. Nguyen Anh Duc, General Director of Saigon Co.op, said.

LG Display Vietnam Haiphong increases capital by $750 million

Haiphong People’s Committee has awarded the investment certificate for the LG Display Haiphong project to increase capital by $750 million.

The meeting between Haiphong City Party Committee and industrial zone (IZ) infrastructure investors aimed to resolve the difficulties and promote investment in IZs. Additionally, LG Display Haiphong Co., Ltd. has been awarded the certificate to expand investment by $750 million.

The LG project is located in Trang Due Industrial Park, Haiphong city. Haiphong Economic Zone Authority has issued its first investment registration certificate on April 15, 2016 with the total registered investment capital of $2.5 billion, authorising it to manufacture OLED TV screen, plastic OLED screens, and LCD screens, among others.

After the capital expansion, the project will have a total investment capital of $3.25 billion, becoming the biggest foreign project in Haiphong city. The project is expected to launch in March and officially begin production in May this year, providing jobs for about 5,000 workers as well as meeting the housing demand of about 10,000 workers and experts. It will contribute about $5 million to the state budget annually.

$800 million Tan Phu-Dong Nai Expressway to be built in 2021-2025 under PPP model

The Tan Phu (Dong Nai) – Bao Loc (Lam Dong) Expressway project with a total investment of approximately VND18.2 trillion ($791.3 million) (excluding bank interest rates) will be built in 2021-2025 under the public-private partnership (PPP) format.

The project will feature a roadway with the length of about 67km, and four lanes belonging to Dau Giay-Lien Khuong Expressway.

Accordingly, the PM agreed to assign the People’s Committee of Lam Dong province to be the competent agency organising the implementation of the expressway project in 2021-2025 under the PPP model.

The People’s Committee of Lam Dong province will take the helm in organising the mobilisation of financial resources according to current regulations.

The roughly estimated total investment (excluding interest rates) is about VND18.2 trillion ($791.3 million). Of this, the investorswill arrange about VND9.646 trillion ($419.4 million), while around VND8.554 trillion ($317.9 million) will be sourced from the public budget, including around VND4.227 trillion ($183.8 million) from the provincial budget, and approximately VND4.227 trillion ($183.8 million) arranged by the central government.

The Tan Phu-Bao Loc section of the Dau Giay-Lien Khuong route is in the development plan of Vietnam’s expressway network in the period of 2021 with a vision to 2030, which has been approved by the PM in Decision No.326/QD-TTg dated March 1, 2016.

This project marks an important milestone for economic development in Lam Dong province as well as in the Central Highlands region.

The early implementation of the project is slated to solve the largest bottleneck of Highway 20, the dangerous section passing Bao Loc pass. This area is often affected by extreme weather and has remained unresolved for a long time.

The PM also asked the Ministry of Planning and Investment to coordinate with the Ministry of Finance and the Ministry of Transport to comment on the arrangement of the central budget in the period of 2021-2025.

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