Industrial production

As 2020 is coming to end, how do you evaluate the development of businesses that received recognition during the Vietnam Value Programme?

Vu Ba Phu, director general of the Trade Promotion Agency under the Ministry of Industry and Trade

After 17 years of running the programme with seven times choosing national brands, we have witnessed the continuous growth of many domestic enterprises. At the first selection in 2008, we saw only 30 chosen companies with their products. By 2018, this number had grown to 97, and this year we have recorded 124 enterprises and their brands.

However, the growth of the business community has not only happened in the number of participating businesses, but also export turnover, sales, and their contribution to the state budget, as well as their efforts in social responsibility and job creation. For example, firms recognised as national brands in 2018 reached a revenue of about VND907 trillion ($39.4 billion), with their export turnover amounting to VND130 trillion ($5.6 billion), contributing VND85 trillion ($3.7 billion) to the state budget and creating 340,000 jobs. Meanwhile, in this year, these numbers have climbed to VND975 trillion ($42.4 billion) and VND123 trillion ($5.34 billion) in 2020, respectively, with contributions to the state budget amounting to VND197 trillion ($8.5 billion) and 350,000 new jobs created – all this despite the pandemic.

What are the main differences between the 2020 programme and previous years’ iterations?

This year has been a special one as most of the businesses were affected by the health crisis, even making it difficult for the organisers of the Vietnam Value Programme to obtain applications, organise conferences, and disseminate information.

Facing these circumstances, the Ministry of Industry and Trade (MoIT) responded quickly and directed our Trade Promotion Agency (VIETRADE) to coordinate with relevant ministries and localities to implement online procedures for the programme. For example, we deployed online forms for the submission of applications, set up 24-hour consulting groups to assist businesses in completing their documents, and organised online conferences and seminars to support them with understanding the regulations and selection criteria of the programme.

This year was also the first that VIETRADE received applications and chose the national brands following the prime minister’s Decision No.30/2019/QD-TTg, under which applications were accepted no later than April 30. However, this was the most stressful time in our country’s fight against the pandemic, with enterprises facing many difficulties in complying with this deadline.

In this context, the MoIT has proposed to the government and related ministries to extend the application deadline and offered the aforementioned online services. In the end, more than 1,000 businesses still applied for the programme, more than in 2018 with only 900 applications despite the absence of an international health crisis.

How have the organising institutions handled the additional pressure from the pandemic during this year’s programme?

The pressure for the organisers and the chosen companies was very real. We had to effectively support businesses, overcome geographical distances, change the habit of meeting face to face, and redirect marketing and promotion efforts through online channels instead of traditional ones.

Nonetheless, everyone involved in this year’s programme has handled the situation flexibly and contributed to support businesses in promoting products in the domestic and foreign markets.

In addition to the introduced online procedures, we have also transmitted the data of the programme and the chosen companies and brands to Vietnam’s commercial counsellors in 63 countries to introduce this year’s businesses to these markets.

Some enterprises commented that the criteria of the programme were too strict compared to the general level of domestic enterprises. What is your view?

The criteria for selecting national brands are indeed very strict because this is a programme to select prestigious products that represent the image of Vietnamese goods in the domestic and international markets, especially high-end ones such as the EU, Japan, and the US. Therefore, we have referred to foreign exporting standards to research and build the criteria that were finally applied in the selection process.

How have chosen enterprises been supported to increase their competitiveness?

The Vietnam Value Programme is not an award, rather the government’s commitment to accompany business in their endeavour to grow and present our country’s high-quality goods and services inside and outside of our borders. An enterprise chosen as national brand receives the government’s threefold support.

Firstly, when participating in the programme, companies can use the national brand logo and the identification system in business administration and trade communication, according to the regulations.

In addition, the MoIT has been working closely with other ministries and localities to implement additional marketing campaigns and raise awareness within the society and business community, thus also supporting participating enterprises.

Furthermore, the ministry provides technical assistance on branding and development, thereby helping businesses protect their brand names, contributing to improving their competitiveness in the domestic and international markets.

VIETRADE is and will continue to carry out additional support programmes and help to promote national brands on mass media and invite these businesses to domestic and international exhibitions to raise their public exposure.

For example, for products related to food, we give priority to supporting enterprises to participate in major fairs and exhibitions around the world, such as the Sial Fair in Paris, certain exhibitions in Germany, and the Milan Fair in Italy – all important international fairs that exporting businesses cannot ignore.

At the same time, we are inviting international experts to research and develop specific strategies for each field to further support businesses and the promotion of their products on global media channels.

What are the MoIT’s plans to bring national brands to the global stage?

The ministry has proactively encouraged leaders of the Party, the state, and the government to further the negotiation and signing of new-generation free trade agreements, thereby expanding the scope of export markets for businesses, especially those with national brands here.

In addition, the MoIT is also developing a commodity import-export strategy for the next 10 years, which aims at identifying priority markets and avoiding dependence on several traditional markets to reduce risks related to trade remedies, while ensuring sustainable development for domestic enterprises. Accordingly, we will also see some specialised trade promotions to support national brands in international markets.

How has the MoIT been supporting businesses that struggled with exports and a forced return to the domestic market this year?

After the initial months of the health crisis, the domestic market had been redefined. From the beginning of the year, following the directions of the government, the MoIT has worked with ministries, agencies, and localities to implement supply and demand actions across the country to remove companies’ difficulties in production and distribution.

In addition, to support businesses with high-quality brands, we have also been integrating chosen brands in national promotions like the Clean Food Programme to endorse Vietnamese goods to locals. The integration of such programmes has helped the domestic market’s growth since the beginning of the year, despite the economic consequences of the pandemic. This shows that the communication, promotion, and support efforts of the MoIT and its agencies have so far been effective.

By Hai Van

Vietnam launches its COVID-19 inoculation drive on March 8 morning, administering the AstraZeneca vaccine to medical workers in Hanoi, Ho Chi Minh City and northern Hai Duong province – the country’s biggest pandemic hotspot at present.

The vaccination is conducted at the Central Hospital for Tropical Diseases in Hanoi, the HCM City Hospital for Tropical Diseases and two medical centres in Hai Duong.

As many as 100 staff members of the Central Hospital for Tropical Diseases are expected to receive the shots in the morning of March 8. The hospital is allocated 450 doses among the first batch of 117,600 doses of AstraZeneca vaccine the country has received.

In Hai Duong, 50 medical workers at Hai Duong city’s medical centre, and 30 others at Kim Thanh district’s medical centre will be the first in the province to be injected.

The Ministry of Health has allocated the vaccine to 13 localities, along with the Ministry of National Defence, the Ministry of Public Security and 21 hospitals during the first phase.

Among the localities, all having reported COVID-19 cases since the latest wave of outbreaks since January 27, the Hanoi Centre for Disease Control (CDC) is given 8,000 doses, Hai Duong CDC 32,000, and HCM City CDC 8,000.

Meanwhile, the Ministry of National Defence and the Ministry of Public Security each receive 30,000 doses.

At a meeting on March 6, Health Minister Nguyen Thanh Long stressed the need to ensure equality in vaccine access as suggested by the WHO, UNICEF and COVAC.

The localities excluded in the first phase should continue to prepare for the inoculation, with training programmes, he said, adding that they would receive the vaccine after the next shipment arrives in Vietnam in March.

The ministry will roll out the vaccination in all COVID-19 treatment hospitals, prioritising those involved in frontline work, and those who participate in the pandemic combat in the community like contact tracers.

Vietnam plans to import about 150 million doses of COVID-19 vaccines./.

14th Red Spring Festival blood donation drive surpasses set target

The 14th Red Spring Festival, the largest blood donation drive in the country, collected more than 8,300 blood units during one week from March 1, announced the organising board on March 7.

The result is 60 percent higher than the initial target of over 5,000 units.

The drive, launched by the National Institute of Hematology and Blood Transfusion (NIHBT), together with the Hanoi Youth Association for Blood Donation and the Hanoi Steering Committee for Voluntary Blood Donation, aimed to address blood shortage in hospitals after Tet (Lunar New Year) holidays.

This year, due to the impacts of COVID-19, the festival was held at four venues, including at the NIHBT, to create optimal conditions for donors and at the same time follow preventive measures.

The pandemic triggered a steep decline in the number of donors and blood supply for treatment and emergency, said Chairman of the Hanoi Youth Association for Blood Donation Trinh Xuan Thuy.

The organising board has made thorough preparations to welcome donors so as to ensure COVID-19 prevention and control, he added.

The festival, first launched in 2008, had collected in excess of 93,000 blood units in total, and become the annual biggest blood donation event./.

HCM City wants to set up district-wise construction management teams

HCM City has sought the Government’s approval to set up a team in each district to manage urban construction comprising inspectors and urban development officials.

According to a report by the city Department of Construction, there were some 15,000 instances of violation of construction regulations between 2014 and 2019, including more than 8,500 cases of unauthorised construction.

It is difficult to completely prevent unlicensed and illegal construction works due to inconsistent regulations, Lê Minh Đức, the vice-captain of the Bình Thạnh District inspection team, admitted.

For instance, district People’s Committees are not tasked with monitoring or penalising illegal constructions, and two different agencies manage urban construction and the environment but lack clear instructions from city authorities, leading to a lack of efficiency, he explained.

The city People’s Committee has therefore sought approval to set up the team to manage urban construction directly under district administrations.

With the city gradually transforming the administration model, experts said the team’s remit is to grant construction permits, supervise construction works and plan projects but also assist in other areas like social order and sanitation.

The People’s Committee wants the team to inspect, detect, prevent, and handle construction violations that do not fall under the authority of the Department of Construction or industrial park and export processing zones management.

The Government has approved the proposal in principle, but Prime Minister Nguyễn Xuân Phúc has instructed HCM City to get the opinion of the Ministry of Home Affairs.

Pre-feasibility study for HCM City – Can Tho high-speed rail commissioned

The Ministry of Transport has instructed the Railway Project Management Board to do a pre-feasibility study for the high-speed HCMC-Cần Thơ railway by 2022.

Recently the Southern Institute of Science and Technology (PNSTI), which is in charge of the project, submitted to the HCM City People’s Committee and the Ministry of Transport recommendations for the project after seven years of studies.

It will run along the HCM City-Trung Lương and Trung Lương-Mỹ Thuận expressways instead of passing through crowded residential areas and industrial parks to reduce the difficulties related to acquiring lands and cost.

The route will be 140km long, start at Tân Kiên Station in HCM City, pass through the provinces of Long An, Tiền Giang and Vĩnh Long and end at Cái Răng Station in Cần Thơ City. It will have nine stations.

Passenger trains will run at 200km per hour and freight trains at 120km.

It will enable people to travel between Cần Thơ and HCM City in just 45 minutes while it takes three hours by road now.

It will reduce the cost of transporting goods from the Mekong Delta to ports in HCM City and Bà Rịa – Vũng Tàu and improve the competitiveness of the country’s exports.

According to PNSTI the project has attracted interest from more than 20 international investors in the US, Europe and elsewhere. It is expected to cost US$10 billion.

According to the Japan International Cooperation Agency, by 2030 the volume of passenger and freight traffic between HCM City and Cần Thơ will increase by 4.8 and three times compared to 2008.

HCM City is the centre of the southern key economic region while Cần Thơ is its Cửu Long (Mekong) Delta counterpart.

The rail link is expected to have a positive impact on the socio-economic development of the two cities as well as provinces such as Long An, Tiền Giang and Vĩnh Long.

It is included in a master plan that comprises five high-speed rail links between HCM City and provinces to ensure smooth transport of goods and improve logistics services and links between major ports.

The others are to Tây Ninh Province, Long Thành International Airport in Đồng Nai Province, Nha Trang City in Khánh Hòa Province, and Long An Province’s international port.

HCM City releases priority list for receiving COVID-19 vaccine

Frontline health workers, non-medical personnel who are potentially exposed to Covid-19 patients and samples and police and military personnel will be the first to get vaccines in HCM City, according to its Department of Health.

On Friday it submitted to the Ministry of Health’s general department of preventive medicine its COVID-19 vaccination priority list.

More than 44,000 people will be vaccinated now, including 2,270 health workers, 388 contact tracing personnel and 1,362 people in COVID-19 surveillance groups.

The rest include 600 army personnel, 1,042 police officers, 513 personnel at government-designated quarantine facilities, 38,000 individuals in community groups for COVID-19 monitoring, prevention, and control.

The vaccination, comprising two AstraZeneca shots, is expected to begin on Monday.

The first batch of 117,600 doses arrived on February 24.

Dong Nai develops more concentrated slaughterhouses

The south-eastern province of Đồng Nai plans to increase the number of its slaughterhouse clusters to 58 in the next five years.

Under a plan approved by its People’s Committee, they will have a capacity of slaughtering 360 buffaloes and oxen, nearly 7,400 pigs and 178,000 chickens a day.

They will be located far from residential areas, schools, hospitals, rivers, and springs, meet certain sanitation standards and have facilities to treat liquid and solid wastes.

The province will encourage co-operatives and companies to set them up with advanced technologies and link up with livestock farms, and offer them tax, land rent and credit incentives.

After developing the slaughterhouse clusters, it will cancel the licences of abattoirs that are not in the plan and crack down on illegal ones.

It now has 41 clusters though most are of small capacity, according to its Department of Agriculture and Rural Development.

Yet they do not operate at full capacity since they cannot compete with the dozens of illegal slaughterhouses that exist around the province and offer lower prices.

The province, which has the country’s largest livestock population, has many large companies which have linked up with farming households that raise animals.

Many livestock co-operatives operate on an industrial scale but also buy livestock from non-members.

Đồng Nai had 1.9 million pigs and 26.18 million chickens, among its key agricultural products, as of last month, according to its Statistics Office.

Those injected with Covid-19 vaccines abroad allowed to enter Vietnam

Deputy Prime Minister Vu Duc Dam has asked the Ministry of Health to coordinate with the Ministries of Foreign Affairs and Culture, Sports and Tourism to urgently issue guidelines to create conditions for those who have been injected with Covid-19 vaccines in other countries to enter Vietnam to ensure safety and serve the economic development and pandemic control efforts.

At a meeting of the national steering committee for Covid-19 infection prevention and control on March 5, the deputy minister, also head of the steering committee, asked the healthcare sector to research and improve the production of quick test kits.

To prevent the Covid-19 spread, Vietnam has not allowed tourists from other countries to enter the country since March 2020.

As Vietnam has announced its Covid-19 vaccine injection plan and citizens in many countries have been injected with Covid-19 vaccines, many entrepreneurs expected the local Government would allow them to welcome tourists again.

At the meeting, Deputy PM Dam also required healthcare centers, schools, lodging facilities, factories, supermarkets and coach stations to seriously employ pandemic prevention and control measures. Those failing to comply with regulations on fighting the pandemic will have their operations suspended.

Central province to develop key river route

The central province of Quảng Nam plans to upgrade the inner waterway on the Trường Giang River as a key traffic system in line to boost transport options from Quảng Nam to National Express systems and the Central Highlands region.

Chairman of the provincial people’s committee Lê Trí Thanh said construction work would be slated for 2022-27 with an estimated investment of VNĐ2 trillion (US$87 million), of which 70 per cent funded by the World Bank.

He said the project will include dredging the 67km river section from Cửa Đại to Cửa Lở estuaries winding through the districts of Duy Xuyên, Thăng Bình, Núi Thành and Tam Kỳ City.

Thanh said the two-lane river route was designed for access of 100 dead-weight tonne (DWT) ships while serving as a major flood release.

Nguyễn Thanh Tâm, director of the provincial traffic investment and construction management board, said the river traffic project would include dredging of 4 million cubic metres of sludge and mud and building an 11.5km concrete dyke and five bridges.

Tâm said the project would complete dredging works in 2025.

Earlier, the province commenced dredging the Cổ Cò River to boost tourism links between Hội An and Đà Nẵng.

According to Quảng Nam authorities, the river route will help boost smooth traffic systems including the coastal road connecting Tam Kỳ city with Chu Lai Airport and Chu Lai Open Economic Zone in the linkage with Chu Lai Economic Zone, the Đà Nẵng-Quảng Ngãi Expressway and the Dung Quất Economic Zone in neighbouring Quảng Ngãi Province.

Chairman Thanh said Quảng Nam would continue to invest in traffic infrastructure to lure more investment projects.

Localities not allowed to directly buy Covid-19 vaccines

As the injection of Covid-19 vaccines is an extremely sensitive issue, the Ministry of Health will coordinate the purchase, distribution and injection of the vaccines to prevent localities from directly negotiating with enterprises to buy them, said Minister of Health Nguyen Thanh Long.

At a meeting of the national steering committee for Covid-19 infection prevention and control on March 5, the minister said besides the import of Covid-19 vaccines, Vietnam needs to focus on the research and production of its own vaccines. This is a long-term strategy.

It is hard to access the Covid-19 vaccines of other countries as supplies are limited, while many countries have registered to buy a large volume of vaccines.

Since May 2020, the Ministry of Health has negotiated to buy Covid-19 vaccines. However, it is impossible to ensure a sufficient supply immediately. They are newly-developed vaccines, so their quality and effectiveness have yet to be determined.

COVAX Facility will provide Vietnam with five million doses of AstraZeneca’s Covid-19 vaccine this year and 25 million doses next year.

Minister Long also warned of fraud in the local Covid-19 vaccine supply. The news that some companies had affirmed that they could supply AstraZeneca’s vaccine was inaccurate, the minister said, adding that all Covid-19 vaccines are now licensed by the Ministry of Health.

As for more than 117,000 doses of AstraZeneca’s vaccine which has arrived in Vietnam, the minister said on March 3, Vietnam received certificates of the quality of the batch from South Korea and other independent testing agencies.

Local residents are eligible to receive the vaccine, Minister Long said.

Those directly participating in the treatment of Covid-19 patients at 18 treatment facilities will be injected first, followed by residents in pandemic hotspots in 13 localities reporting Covid-19 patients, especially Hai Duong.

At the meeting, Deputy Prime Minister Vu Duc Dam said the injection of the vaccine must be fair. Residents must be sufficiently provided with necessary information. Further, the Ministry of Health must be prepared for possible problems during the injection.

Chinese nationals entering Việt Nam illegally test negative for SARS-CoV-2 once

Thirty-five Chinese nationals who illegally entered Việt Nam and stayed at a hotel in HCM City have tested negative for SARS-CoV-2 for the first time, HCM City’s healthcare centre said on Sunday.

The group were spotted by local police when they hired rooms at a hotel located on Lý Tự Trọng Street, District 1, HCM City on Saturday morning.

They have been quarantined at the Củ Chi Field Hospital and will have samples taken for further testing.

Nguyễn Thị Quỳnh Triều, chairwoman of Bến Thành Ward, said after receiving the first set of results, the lockdown has been lifted at the hotel.

Authorities will continue to test people returning from social distancing areas and ask them to make health declarations at airports, coach stations, healthcare centres and industrial parks.

As of Sunday morning, the city has taken 25,853 random samples at crowded places like airports, train stations, bus stations. As many as 25,637 samples were negative and the remaining 216 samples are waiting for results.

Prosecution proposed against former HCM City Vice Chairman

Tran Vinh Tuyen, former Vice Chairman of the HCM City People’s Committee (Photo: VNA)

The Investigation Police Agency under the Ministry of Public Security on March 6 said it has suggested prosecuting 16 people, including a former senior official of Ho Chi Minh City, found to play a role in a law violation case in the State-owned Saigon Agriculture Incorporated (Sagri).

Investigations unveil that the mastermind of the case is Le Tan Hung. In his capacity as the Chairman of the Board of Members and General Director of Sagri, Hung ordered the building of 10 fake dossiers for Sagri officials and employees to visit 16 countries, aiming to appropriate more than 14 billion VND (607,120 USD).

Notably, aware of the ineligibility of a housing project in Residential Area No. 4 in Long Phuoc B Ward, District 9, HCM City, Hung still instructed his subordinates to complete procedures and signed documents proposing the municipal People’s Committee give a nod to the transfer of the project to Phong Phu JSC with a cost of 168 billion VND, causing losses worth hundreds of billions of VND to the State.

The agency found that Tran Vinh Tuyen, former Vice Chairman of the People’s Committee, signed Decision No. 6077/QD-UBND dated November 17, 2017 that gave the green light to the transfer of the project, invested by Sagri, although he knew its ineligibility./.

No COVID-19 infections logged on March 8 morning

Vietnam reported no COVID-19 cases in the past 12 hours to 6:00 am on March 8, according to the National Steering Committee for COVID-19 Prevention and Control.

The country documented 1,585 domestically-transmitted infections, including 892 cases since the latest outbreak hit Hai Duong province on January 27.

As many as 45,219 people who came in close contact with COVID-19 patients or arrived from pandemic-hit areas are under quarantine nationwide, including 506 at hospitals, 14,266 at other quarantine sites, and 30,446 at home.

Among the patients under treatment, 65 have tested negative for SARS-CoV-2 once, 57 twice, and 137 thrice.

The Treatment Sub-committee said that 1,920 patients have been declared clear of the coronavirus so far.

Hanoi has gone through 20 days without new local transmission of COVID-19, while other ten cities and provinces has logged no new cases in 23 days, including Hoa Binh, Dien Bien, Ha Giang, Binh Duong, Hung Yen, Bac Giang, Gia Lai, Bac Ninh, Quang Ninh and Ho Chi Minh City.

Vietnam begins COVID-19 vaccination on March 8, 2021, using recently-imported AstraZeneca COVID-19 vaccine. The vaccine was granted Emergency Use Listing by the World Health Organisation for active immunisation to prevent COVID-19 in individuals aged from 18.

In a bid to live safely with the pandemic, people should strictly follow the Ministry of Health’s 5K message: khau trang (facemask), khu khuan (disinfection), khoang cach (distance), khong tu tap (no gathering) and khai bao y te (health declaration)./.

New Year gathering hosted for adopted Vietnamese children in Italy

A virtual gathering was hosted by the Embassy of Vietnam in Italy on March 7 for adopted Vietnamese children on the occasion of the Lunar New Year.

The event was attended by Director General of the Ministry of Justice’s Department of Adoption Nguyen Thi Hao and adoptive families of Vietnamese children from more than 70 locations across the European country.

Speaking at the gathering, Vietnamese Ambassador to Italy Nguyen Thi Bich Hue said with over 2,000 Vietnamese children adopted by Italian couples so far, and these adoptive families have become a major part of the Vietnamese community in Italy. They have contributed to strengthening the relations between the two countries, she said.

Many adoptive families in Italy want their Vietnamese children to know more about their roots, she continued, many Italian parents have also encouraged the kids to learn and speak their mother tongue. This has motivated the Vietnamese Embassy in Italy to host the gathering, she added.

Hue also took the occasion to thank the adoptive families for not only taking care of the Vietnamese children and providing them with a real home, but also giving an opportunity to preserve their traditional culture.

Representing the adoptive Italian families of Vietnamese children, Cinzia Fabrocini said the gathering offers a good chance for the children to have a better understanding of their fatherland’s culture and for the families to meet and talk about their shared interest in helping the children experience their birth culture.

Hao, for her part, said she hopes the Embassy of Vietnam and adoptive families in Italy will come up with more initiatives and activities to bring the children closer to their homeland.

Vietnam always welcomes the children and their adoptive parents to return to the country to explore Vietnamese culture and identity, she noted./.

40 illegal immigrants found in HCM City

Ho Chi Minh City’s police have detected 40 foreigners, all Chinese, who entered Vietnam illegally on March 5-6.

Of the people, five were found staying at a hotel and confessed that they came illegally to Vietnam from China’s Fujian province via unofficial channels in Vietnam’s northern border region, and caught a bus to the city.

Thirteen others were found on a bus parked in front of another hotel where the remainders were staying in.

The local police have instructed competent forces to collect samples of the people for COVID-19 testing, and put them into quarantine in line with pandemic prevention and control regulations.

Their illegal immigration is also under further investigation./.

HCM City to expand cultural activities

The cultural sector in HCM City should focus on developing resources, infrastructure and arts activities from now to 2030, experts have said at a recent workshop held in the city.

The city’s Department of Culture and Sports is focusing on a long-term project to develop film, performing arts, fine arts, photography, exhibitions, advertising, cultural tourism and fashion.

It aims to increase gross regional domestic product (GRDP), create jobs involved in producing diverse high-quality cultural activities, and meet residents’ cultural needs.

Another goal is to burnish the city’s image by creating signature cultural products and turning HCM City into the cultural centre of the country and region.

Speaking at a workshop held recently by the department, Nguyễn Thị Hậu, general secretary of the city’s Association of Historical Sciences, said the project should target “high culture”, saying that a big city should have such activities.

“It means a high level in art quality, infrastructure and human resources. The project should focus on signature performing arts forms of HCM City and the South like tài tử music, cải lương (reformed opera) and drama,” she added.

Except for the film sector, which has private investment, other sectors have not received sufficient investment to meet the people’s cultural needs.

Trần Hoàng Ngân, director of the HCM City Development Research Institute, pointed out that many theatres are in poor condition and theatrical works are not widely advertised.

Lâm Nhân, deputy principal of the HCM City University of Culture, said: “The city should build cultural policies to promote the development of performing arts programmes.”

For the film sector, scripts highlighting national cultural identity should be encouraged, he added.

Nguyễn Thị Mỹ Liêm, director of the HCM City Conservatory of Music, said that cultural authorities should meet with artists “to learn about their needs and seek solutions and policies to help them develop their careers”.

Võ Trọng Nam, the department’s deputy director, said that after the workshop the department would work with the Development Research Institute to complete the project and then submit it to the city’s People’s Committee.

Under the project, the city targets revenue from cultural industries making up 5 per cent of its GRDP in the 2020-25 period and 6 per cent in the 2025-30 period.

Earnings from the city’s film industry will reach VNĐ10 trillion ($432 million) by 2030, with earnings from Vietnamese films making up 50 per cent.

The city plans to reach revenue of VNĐ1.7 trillion ($73.5 million) by 2030 from the performing arts sector, VNĐ550 billion ($23.8 million) from fine arts, and VNĐ3.3 trillion ($142.5 million) from photography.

The exhibition and advertising sectors are expected to earn VNĐ11 trillion ($475 million) and VNĐ57.2 trillion ($2.47 billion), respectively, by 2030.

As for cultural tourism, the city targets revenue of VNĐ8.6 trillion ($351.6 million) by 2030, while fashion sector revenue will reach VNĐ5.5 trillion ($237.7 million).

31 lawyers to protect 12 defendants involved in the Ethanol Phu Tho case

Thirty-one lawyers have registered to protect 12 defendants involved in the case of violations of regulations on investment in construction works, causing serious consequences, at an ethanol plant in the northern province of Phu Tho, for which a 10-day trial will be opened by the People’s Court of Hanoi on March 8.

Prominent among the 12 defendants are former Chairman of the Board of Directors of the Vietnam National Oil and Gas Group (PetroVietnam) Dinh La Thang; former Chairman of the Board of Directors and former General Director of the PetroVietnam Construction JSC (PVC) Trinh Xuan Thanh; and former General Director of the PetroVietnam PetroChemicals and Biofuel JSC (PVB) Vu Thanh Ha

Trinh Xuan Thanh has been charged with “violating regulations on investment in construction works, causing serious consequences”, under Article 224, Clause 3 of the Criminal Code 2015, and “abusing position and power while performing duties” under Article 356, Clause 3.

Thang will have three lawyers to protect him, Thanh four, and Ha six. One defendant has not asked any lawyer to defend him at the court.

The court will summon six inspectors and a number of witnesses as well as those having relevant obligations and rights.

According to the indictment, Thang signed a resolution to approve the investment in the project in October 2007. With Thanh’s support, PVC/Alfa Laval/Delta-T joint contractors, who had no previous experience in carrying out ethanol projects, were assigned to be in charge of the project.

As a result, the project was continuously behind schedule and stopped in March 2013 with no construction items done.

Wrongdoings of the defendants were said to cause a loss of more than 543 billion VND (23.49 million USD)./.

Popularising Vietnamese culture through social media

The first personally-funded YouTube channel specialising in content promoting Vietnam’s tourism and culture was the result of the enthusiasm of a culture lover. In the year since the first episode aired, Sunny Vietnam has now posted 20 high-quality videos warmly supported by viewers.

The first video debuted in December 2019, featuring ox eye daisies – a typical image of Hanoi in autumn – and received a bunch of likes from viewers.

Last September, the channel won third prize in a video clip competition called “Vietnam NOW” run by the Ministry of Tourism./.

Ukrainian President hails Vietnam socio-economic, integration achievements

Vietnamese Ambassador to Ukraine Nguyen Hong Thach has presented his credentials to Ukrainian President Volodymyr Zelensky who lauded Vietnam’s achievements in the “Doi Moi” (Renewal) cause as well as economic development, international and regional integration and improvement of locals’ living conditions.

At a reception for the diplomat following the presentation, the host expressed his pleasure at the positive growth of the Vietnam-Ukraine partnership, and thanked Vietnam for supporting Ukraine in the COVID-19 prevention and control.

He showed his hope that the bilateral cooperation will be further expanded in various areas, especially in vaccine production, trade and culture.

President Zelensky wished Ambassador Thach a successful office tenure, and many contributions to the acceleration of the ties between the two Governments and peoples.

He took the occasion to invite President Nguyen Phu Trong to visit Ukraine in August this year on the occasion of the 30th independence anniversary of the country.

For his part, Ambassador Thach extended regards and best wishes from Party General Secretary and State President Nguyen Phu Trong to President Zelensky as well as people and Government of Ukraine.

He expressed his delight to take office as an ambassador to Ukraine, a beautiful country that is rich in historical tradition and culture.

The diplomat thanked the State and people of Ukraine for supporting Vietnam during the past struggle for national independence and current national construction and defence.

He affirmed that Vietnam always attaches great importance to developing ties with Ukraine.

At the reception, Ambassador Thach proposed that President Zelensky and Ukrainian authorities assist him in completing his tasks and create favourable conditions for the Vietnamese community in the host country.

He also conveyed Party General Secretary and State President Nguyen Phu Trong’s invitation to President Zelensky and his spouse to visit Vietnam. President Zelensky accepted the invitation with pleasure./.

100 local food specialties announced

The organisation aims to discover unique and strange specialties and gifts from 63 cities and provinces nationwide in order to help promote local culture to the world.

After receiving nominations from various localities nationwide, the organisers have selected the top 100 food specialties and gifts which showcases the true diversity of Vietnamese culture.

Pho (noodle soup), Bun Cha (noodles with grilled meat), and Cha Ca La Vong (La Vong fried fish), from Hanoi, along with Mi Quang (Quang noodles), and Com Ga Hoi An (Hoi An chicken rice), from the central province of Quang Nam, are among the leading 100 Vietnamese food specialties.

Banh Com (green sticky rice cake) from the capital, and Banh Phu The (conjugal cake), of Bac Ninh province have also been named in the list of 100 Vietnamese gifts.

First COVID-19 vaccination drive to be launched in 13 pandemic-hit localities

Medical workers directly involved in treating COVID-19 patients at 18 medical facilities and prioritised categories of people in 13 pandemic-hit localities will be among the first to be vaccinated throughout March and April, with the COVID-19 epicentre of Hai Duong being given the highest priority.

The localities include Hanoi, Ho Chi Minh City, Hai Duong, Quang Ninh, Hai Phong, Bac Ninh, Bac Giang, Hung Yen, Hoa Binh, Gia Lai, Binh Duong, Dien Bien, and Ha Giang.

The objective of the plan is that 95% of all individuals who are at risk and the community have a sufficient number of doses for the inoculation process.

Moving forward, the vaccinations will be deployed based on actual vaccine supply progress.

In addition to pandemic-hit localities, provinces and cities that have large urban areas, high population densities, industrial zones, and are important traffic hubs, will also be granted priority to be vaccinated.

Ahead in April, the country will receive a further 1.3 million doses of the AstraZeneca vaccine through Covax, a global mechanism for developing, manufacturing, and procuring COVID-19 vaccines and supply for member countries.

The nation has reported a total of 885 community transmissions across 13 cities and provinces since the reccurence of the outbreak on January 27.

360 Vietnamese citizens repatriated from Singapore

A total of 360 Vietnamese citizens, including minors under the age of 18, sick people and other specially difficult cases were repatriated from Singapore after touching down at Can Tho International Airport on March 7.

A range of measures on security, safety, and hygiene were strictly enforced throughout the flight as a means of protecting the health of citizens and to prevent the possible spread of the novel coronavirus (COVID-19).

All flight crew members and passengers underwent medical check-ups and were immediately transferred to quarantine facilities in line with regulations relating to COVID-19 prevention and control.

Colonel Phan Van Chuong, deputy director of the Logistics Department of Military Zone No 9, said that there have been many flights to repatriate Vietnamese citizens based on their wishes in recent times, with the enforcement of strict anti-pandemic measures to ensure the safety of passengers and crew members.

Earlier on March 6, Can Tho International Airport also welcomed a flight to bring home  as many as 300 Vietnamese citizens from Malaysia, and all the passengers were put in quarantine in concentrated isolation facilities according to COVID-19 prevention and control regulations.

Ban flowers blooming under northwestern skies

March is a nice time of year to visit Vietnam’s northwest, when the beautiful Ban (Bauhinia) flower season peaks, painting the region white.

A symbol of love between a girl named Ban and a boy named Khum in an ancient Thái ethnic minority legend, the flower signals the arrival of spring in Dien Bien with its pure white petals and gentle, sweet aroma.

Many local boys and girls take the opportunity to capture a special moment of their youth during the bloom.

Ban flowers normally bloom in mid-February and show off their best in March.

2021 was the second year the Ban Flower Festival has been cancelled due to COVID-19, but the ubiquitous sight of Ban flowers still provides a romantic and tranquil atmosphere to Dien Bien province./.

Overseas Vietnamese’s song expresses love for national islands

Though living far from home, many young Vietnamese people working and studying in the Republic of Korea have expressed their love for Vietnam’s sea and islands.

With musical talent and a love for Vietnam’s sea and islands, Kien composed the song “Hoang Sa, Truong Sa belong to Vietnam” in just a short period of time. The music video was viewed and shared by thousands of people in the 10 days it has been on YouTube.

Kien’s friends who heard the song after it was filmed had good things to say.

Kien said he will continue to compose songs about the country and the people of Vietnam, to spread love for the homeland among Vietnamese expats.

Contributing to the nation is a common desire for every overseas Vietnamese. For Kien and his compatriots, no matter who you are or what you do, every Vietnamese citizen has the responsibility to protect the national/.

New Year gathering hosted for adopted Vietnamese children in Italy

A virtual gathering was hosted by the Embassy of Vietnam in Italy on March 7 for adopted Vietnamese children on the occasion of the Lunar New Year.

The event was attended by Director General of the Ministry of Justice’s Department of Adoption Nguyen Thi Hao and adoptive families of Vietnamese children from more than 70 locations across the European country.

Speaking at the gathering, Vietnamese Ambassador to Italy Nguyen Thi Bich Hue said with over 2,000 Vietnamese children adopted by Italian couples so far, and these adoptive families have become a major part of the Vietnamese community in Italy. They have contributed to strengthening the relations between the two countries, she said.

Many adoptive families in Italy want their Vietnamese children to know more about their roots, she continued, many Italian parents have also encouraged the kids to learn and speak their mother tongue. This has motivated the Vietnamese Embassy in Italy to host the gathering, she added.

Hue also took the occasion to thank the adoptive families for not only taking care of the Vietnamese children and providing them with a real home, but also giving an opportunity to preserve their traditional culture.

Representing the adoptive Italian families of Vietnamese children, Cinzia Fabrocini said the gathering offers a good chance for the children to have a better understanding of their fatherland’s culture and for the families to meet and talk about their shared interest in helping the children experience their birth culture.

Hao, for her part, said she hopes the Embassy of Vietnam and adoptive families in Italy will come up with more initiatives and activities to bring the children closer to their homeland.

Vietnam always welcomes the children and their adoptive parents to return to the country to explore Vietnamese culture and identity, she noted./.

Two Filipino nationals test positive for coronavirus in Vietnam

Two Filipino people and a Vietnamese citizen have tested positive for SARS-CoV-2 in Vietnam, raising the total number of patients in the country to 2,512, the Ministry of Health reported on Sunday evening.

According to the ministry’s report, the Filipino patients are a 30-year-old man and a 33-year-old woman who arrived from the Philippines to Noi Bai International Airport in Hanoi on February 22. They were both sent to a local quarantine area upon arrival and tested positive for SARS-CoV-2 on March 7.

The two patients are now being treated at the Hanoi-based National Hospital for Tropical Diseases.

With these new infection cases, the number of Covid-19 patients in Vietnam has increased to 2,512, including 892 locally-transmitted cases reported since the new outbreak started in Hai Duong on January 28. Hai Duong Province alone has recorded 708 cases.

As of 6 pm on March 7, a total of 1,920 Covid-19 patients had recovered and been discharged from hospital. There have been 35 deaths, most of them being the elderly with serious underlying diseases.

At present, 45,219 people who had close contact with Covid-19 patients or returned from virus-hit areas are being monitored at hospitals, quarantine facilities, and at home.

HCMC lists over 44,000 people prioritized for Covid-19 vaccination

The HCMC Department of Health has sent the General Department of Preventive Medicine under the Ministry of Health and the HCMC Pasteur Institute a list of 44,175 people prioritized for the Covid-19 vaccination.

Deputy Director of the municipal Department of Health Nguyen Huu Hung said that the priority list includes 285 medical workers who are treating Covid-19 patients at hospitals, 388 members of contact tracing teams, 1,362 employees joining the epidemiological investigation, 600 soldiers and 1,042 police officers.

Some 38,000 members of Covid-19 prevention teams, 1,710 workers who are in charge of taking samples for testing, over 500 quarantine workers and 257 staff members in charge of injecting residents with the Covid-19 vaccines have also been prioritized.

HCMC has no active coronavirus hotbeds, so the city is not identified as a prioritized locality for vaccination, the local media reported.

Vietnam is set to start the Covid-19 vaccination on March 8, using the first 117,600 doses of the Covid-19 vaccine produced by British drugmaker AstraZeneca that arrived in the country on February 24.

Party Committee discuss key solutions to turn Thu Duc into smart city

The executive party committee of newly-established Thu Duc City discussed key tasks and solutions to turn Thu Duc City into a smart, innovative and sustainable city in 2021 in its yesterday meeting.

One of significant tasks in 2021 is the continuity of the city’s stable state machinery to ensure the effectiveness in management for the city development. When it comes to this task, the city must enhance re-structuring of the machinery and re-arranging of administrative staffs as well as grading of levels and powers along with supervision for transparency.

The party committee said that it would also focus on spreading the information of the 13th National Party Congress and the 11th Ho Chi Minh City Party Congress as well as applying these congresses’ resolutions into reality.

With regard to building up a strong party, meeting participants emphasized on the continuous implementation of Resolution No.4 on Party building and rectification adopted at the fourth plenum of the 12th Party Central Committee. They also emphasized on improvement of the managerial skills and abilities of leaders.

Speaking at the meeting, Thu Duc City Party Chief Nguyen Van Hieu ordered staffs in state organizations in the city to actively take part in the building up of the party and the government to improve residents’ living conditions.

First of all, Party Chief Hieu stressed that Thu Duc City must intensify application of IT and digitalization in management tasks which are important steps to move toward building smart city and urban administration.

Besides, each organization must set their own specific goals with the aim to benefit locals in the field of economy, culture, education and medicine.

Additionally, Mr. Hieu required state-run organizations and agencies to inform residents about governmental policies and mechanisms to get dwellers’ consensus during the building and development of Thu Duc City with orientation towards a smart and sustainable city.

Before, the People’s Committee in Thu Duc City submitted its paper in which set 26 goals for 2021 including collection of VND8,327 billion (US$359,344,016) for the city state budget, the proportion of disbursement for basic construction investment of 95 percent against the assigned plan and growing 250,000 trees.

Last but not least, the newly-established city will focus on site clearance in major projects comprising of Saigon Hi-tech Park, Thu Thiem new urban area, Ethnic Cultural History Park and urban renewal in Long Binh Ward. Especially, the city proposed specific mechanisms for its future growth.

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

Khanh Phan

Ho Chi Minh City Stock Exchange (HOSE)’s proposal to raise the minimum trading lot to 1,000 shares is receiving mixed opinions from market experts and investors.

The proposal was initiated by newly-appointed General Director of HOSE Le Hai Tra as a solution to reduce system overloads which have troubled traders recently.

A 1,000 minimum trading lot will limit the participation of small investors, while the stock market is moving towards fairness and equality, said a budding investor.

“My friends and I, when joining the stock market, only have a few tens to several hundreds of millions of dong, raising the minimum trading lot to 1,000 shares will directly affect our investment capacity,” said individual investor Diep.

“With expensive stocks, we may have to spend hundreds of millions of dong to buy the minimum 1,000 shares,” she said.

According to Diep, the stock market has never had such a chance for growth. New cash flow into the market pushed liquidity to a record high level. However, the new proposal may not only prevent new investors from entering the market but also discourage existing investors.

“The plan to raise the minimum trading lot to 1,000 shares could quickly reduce the number of orders delivered daily on HOSE. However, it will cause frustration among small investors who are directly affected by the plan as they think they are not protected,” said Do Bao Ngoc, Deputy General Director of Kien Thiet Securities Vietnam (CSI).

“This plan, if in place, will affect the rapid development of the stock market under the current favourable conditions, one of which is great interest from global investors,” he said.

“Under the new plan, the most affected are the investors whose trading accounts have VND1 billion or less,” said Nguyen Hoang Hai, Vice Chairman of Viet Nam Association of Financial Investors (VAFI)

According to VAFI statistics, investors whose trading accounts have VND500 million or less account for about 30 per cent of individual investors. Among them, the number of investors participating in the market for the first time (F0 investors) with VND300 – 500 million is numerous.

“Last year, the boom of the stock market was great thanks to the participation of new investors, also known as F0 investors. The market always needs new cash flows but raising the minimum trading lot to 1,000 shares could hinder the investment capacity of investors and cause them to lose money,” Hai said.

Chairman of SSI Securities Corporation Nguyen Duy Hung on his social media account recently gave a more positive view on HOSE’s proposal, saying the trading system would be on the brink of collapse without appropriate measures.

“Raising the minimum trading lot to 1,000 shares is necessary at the moment to keep the system running,” he said, adding when the system upgrading process is completed, the minimum trading lot could be reverted to 10.

Hung said the overload of orders that forces the stock exchange to halt market trading is the result of a rapid-growing stock market that outpaces the processing capacity of the stock market, as such, “a long-term solution is a must,” he said.

Both before and after the Tet holiday, the overload occurred repeatedly on HOSE whenever liquidity in a trading session hit around VND14-17 trillion (US$608-738 million).

The SSC attributed the overload issue on the HOSE to the transaction processing capacity of the stock exchange that limits the number of transactions per day, while a recent surge of orders has exceeded the expectation of the market.

Rice farmers enjoy bumper harvest, high prices in Mekong Delta

Rice farmers in Mekong Delta rejoiced as the ongoing winter-spring crops yielded big gains, while domestic agricultural authorities work towards a near future where Vietnamese rice dominates markets worldwide.

After the award-winning ST25 rice rightfully earned a firm footing on the market, it and other varieties from the Mekong Delta region became highly sought-after. This fragrant rice variety sells for VND30,000-45,000 per kilogram (US$1.3-1.95) and is still seeing high demand after the Lunar New Year shopping craze ended.

“We even had retailers offering to buy our yields long before harvest, which is very rare and proves the apparent demand for high-quality fragrant rice”, said a local field owner.

Mekong Delta farmers up to now have harvested some one-third of the region’s total rice crops for the period, with an average yield of over 7.3 tons per hectare.

Seeing that high-end white rice and fragrant rice make up nearly 90 percent of the products, Soc Trang province is requesting the provincial Center for Agricultural Seeds to focus more on the production and supply of these varieties to meet local demands.

Meanwhile, Hau Giang Province has been promoting the Vi Thuy fragrant rice variety produced in an eco-friendly safety food chain. The province plans to expand cultivation areas to 500 hectares, said the director of Hau Giang’s Department of Agriculture and Rural Development.

The Vi Thuy brand was rated a 4-star eco rice product by the domestic OCOP program (One Commune One Product) which prompted Hau Giang authorities to promote the safety production chain to local farmers.

On a nationwide scale, restructuring the agriculture sector by cutting off inefficient yields has boosted rice production significantly, as well as created opportunities for up to 6 million tons of Vietnamese rice to enter EU markets per year, said business insiders.

Although the EU market demands some 2.1-2.3 tons of rice per year, only 80,000 tons of Vietnamese exports can enter each year under regulations of the EVFTA.

The Asian country in recent years has commanded international attention with multiple global award-winning rice varieties. Experts believe Vietnam in the near future can export as many as 1 million tons of white fragrant rice at over US$1,000 per ton, earning US$1 billion in foreign currency each year.

To further promote Vietnamese rice, there have been proposals for the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade to set up a national committee for the rice industry in associations with domestic cooperatives and overseas trade counselors.

Many solutions to prevent network congestion on HoSE

Vietnam’s stock market in the trading session on March 3 continued to encounter network congestion on the Ho Chi Minh City Stock Exchange (HoSE), so the VN-Index was almost flat.

Meanwhile, on the Hanoi Stock Exchange (HNX), the HNX-Index made a breakthrough of nearly 3 percent. At the end of the trading session, the VN-Index inched up by 0.34 points, or 0.03 percent, to close at 1,186.95 points, with 270 gainers, 168 losers, and 64 unchanged stocks. The HNX-Index jumped 6.16 points, or 2.48 percent, to 254.1 points, with 137 gainers, 66 losers, and 57 unchanged stocks.

Foreign investors continued to net sell nearly VND500 billion on the whole market. Of which, they net sold VND470 billion on the HoSE. Liquidity remained at a high level with a total trading volume of 819 million shares, worth more than VND18.1 trillion. Of which, put-through transactions accounted for nearly VND1.77 trillion.

The stock market traded with caution from investors after the new General Director of the HoSE Le Hai Tra spoke in the media about a solution to prevent network congestion, which possibly is to raise the minimum round lot from 100 shares to 1,000 shares to reduce the load for the trading system.

According to the HoSE’s calculations, increasing the round lot to 1,000 shares can reduce the total number of trading orders by 40-50 percent, at the same time, it can pave the way for new heights of market liquidity.

Mr. Tra said that that might only be a temporary solution to solve the current network congestion situation. In the future, when the new stock trading system comes into operation, there will be an odd-lot board, and it is also possible to return to the current round lot of 100 units. However, this opinion faced considerable opposition from investors because it will make it difficult for investors, especially small investors. Because they will have to spend 10 times as much as currently to buy stocks on the HoSE.

Another solution to prevent network congestion for the HoSE is to transfer some stocks from the HoSE to the HNX, the State Securities Commission (SSC) has just sent documents to the HoSE, the HNX, and the Vietnam Securities Depository (VSD) on this.

Accordingly, the SSC requested the HNX to promptly accept and receive listed companies from the HoSE, without reviewing their records following the new listing process. The transaction mechanisms, transaction supervision, listing management, reporting, and information disclosure will be applied the same as companies listed on the HNX. The HoSE and the HNX will cooperate in supervising transactions for these stocks to ensure continuity of supervision.

Noticeably, the SSC stated clearly that shares of transferred companies, which are currently in the set of the VN-Index indicators of the HoSE will be removed from the set of HoSE indicators during the temporary transfer to the HNX. At present, SSC will temporarily not consider transferring the shares of companies currently in the VN30-Index.

The SSC also requested the HNX, the HoSE, and the VSD to urgently handle the issue so that enterprises can transfer the transactions of their shares similarly to the listing transfer cases that have been carried out so far. This mechanism will be applied from March 3 this year.

Ly Son garlic reputation threatened by fake products

The prices and the reputation of Ly Son garlic have fallen as low-quality garlic from other areas are being brought to the island and faked as Ly Son garlic.

Ly Son Island, Quang Ngai Province, is famous for its garlic which is sold at much higher prices than the garlic from other places. However, for the past years, garlic has been brought to the island and sold to tourists as the garlic from Ly Son.

According to a trader, fake Ly Son garlic is sold in huge numbers due to high demand from visitors. The price of the garlic from Nha Trang City is VND28,000 (USD1.20) per kilo. After being marketed as Ly Son garlic, its price will increase to VND45,000 per kilo.

Garlic from Khanh Hoa and Ninh Thuan is also faked as being Ly Son garlic and sold at An Vinh Market on the island.

As a result, there is a surplus of supply and the prices and reputation of Ly Son garlic have been badly affected. After the Tet Holiday, the prices of Ly Son garlic stood at VND60,000 (USD2.60) per kilo but has now dropped to VND40,000. At some points in the past two years, the prices of dried garlic dropped to VND20,000 per kilo.

Huynh Tung, a farmer in Ly Son, said, “The price of Ly Son garlic dropped and it’s so hard to sell garlic now.”

On February 19 and 21, the authorities seized over one tonne of non-local garlic which was being transported into the island.

Dang Tan Thanh, vice chairman of Ly Son District People’s Committee, said they had tightened monitoring and raised public awareness to protect Ly Son garlic.

“We have asked the Department of Economic and Rural Infrastructure to work on a product traceability project. It will help customers recognise the garlic better and protect the farmers,” he said.

Last June, The Intellectual Property Office of Vietnam issued the geographical indication certification to help manage and develop Ly Son garlic more efficiently.

Vietnam forecast to see growing number of ultra-high-net-worth individuals by 2025

The number of ultra-high-net-worth individuals living in Vietnam is forecast to grow strongly in the next five years by Knight Frank.

By 2025, Vietnam will have 50 ultra-high-net-worth individuals (UHNWI) with a net worth of at least $30 million each and 25,812 high-net-worth individuals (HNWI) with assets of at least $1 million, says The Wealth Report 2021 put out by Knight Frank.

The report pointed out that Vietnam’s number of ultra-wealthy people declined slightly due to the impact of the pandemic, dropping from 405 people in 2019 to 390 people in 2020.

Globally, China saw the fastest growth in UHNWI population with a 15.8 per cent growth rate, followed by Sweden and Singapore.

Knight Frank’s current report said that the number of HNWI decreased by 6 per cent globally last year, from 20,645 to 19,149.

To join the wealthiest 1 per cent in Vietnam, an UHNWI needs to have a net wealth of $160,000. Singapore is Asia’s highest entry, marginally ahead of Hong Kong, with the level of wealth required being $2.9 million and $2.8 million, respectively. South Korea and the Chinese mainland set the barrier at $1.2 million and $850,000, respectively.

With lower interest rates and more fiscal stimulus, asset prices have surged, driving the world’s UHNWI population 2.4 per cent higher over the past 12 months to more than 520,000. The process was seen across North America and Europe, but it was Asia with its 12 per cent growth that saw the real upswing. The expansion in wealth was not universal, with a fall in the number of UHNWIs in Latin America, Russia, and the Middle East as currency shifts and the pandemic undermined local economies.

The US is, and will remain, the world’s dominant wealth hub over the forecast period, but Asia will see the fastest growth in UHNWIs over the next five years, at 39 per cent compared with the 27 per cent global average. By 2025, Asia will host 24 per cent of all UHNWIs, up from 17 per cent a decade earlier. The region is already home to more billionaires than any other (36 per cent of the global total). The Chinese Mainland is the key to this phenomenon, with 246 per cent forecast growth in very wealthy residents in the decade to 2025.

Wealth Report pointed out that equities, which accounted for about a quarter of the portfolios of the super-rich, were a major driver of their wealth in 2020 as being in lockdown gave them time to better monitor the stock markets.

In March last year, most stock markets crashed by around 30 per cent, but they had since then bounced back, particularly in the US. The S&P 500, for instance, had rallied by 70 per cent.

“Anyone able to time equity sales or acquisitions in line with market movements would have benefited significantly,” the report said.

Securities firms rake in revenues after bumper year

Foreign and local stock brokerages closed 2020 with a blast, turning around the nosedive that opened the year due to optimism over vaccines, low interest rates, and appealing commission fees.

The momentum is expected to expand substantially this year, given the promise of Vietnam’s equity landscape. In the early part of last year, market volatilities and aggressive broad-based sell-off crippled the stock market, with the total after-tax profit of Vietnamese securities companies dropping 77 per cent on-year. However, hopes of an economic recovery have boosted brokerages’ profits, with the year seeing the highest number of new account openings.

Viet Dragon Securities Corporation recorded a record loss of VND88 billion ($3.83 million) in the first quarter of 2020, mainly from proprietary trading. However, the prospect of effective vaccines returning life to normal is injecting hope into the global and domestic equity market.

By the end of 2020, Viet Dragon Securities recorded total revenues of VND456 billion ($19.83 million), up 45 per cent against the initial plan. The firm’s after-tax profit reached VND144 billion ($6.26 million), equal to 400 per cent of the yearly plan and 424 per cent of the figure from 2019. This was also the highest profit that it had achieved since its establishment.

Meanwhile, Saigon Securities Corporation, Vietnam’s largest brokerage in terms of market share, reported 43.4 per cent higher revenue growth in 2020 than the year before. Its pre-tax profit also rallied by 54.4 per cent, reaching VND1.565 trillion ($68.04 million)

After several COVID-19 vaccines proved effective in recent months, almost the entire stock market started showing signs that an economic recovery is on the way.

As the State Bank of Vietnam remains firm on keeping a low interest rate to help the economy weather the storm, investors vigorously seek for higher returns from riskier assets, such as stocks or corporate bonds. In addition, both Vietnamese and foreign brokerages have provided customers with attractive margin lending rates, as well as low or zero commission fees.

Vu Nam Huong, CFO of VNDIRECT Securities, said the company has achieved positive results for its core revenue segments like transaction fee collection, margin lending, proprietary trading, and derivative securities. In the fourth quarter of 2020, VNDIRECT generated revenues of VND721.6 billion ($31.37 million), up 96 per cent against the corresponding period in the previous year. Its after-tax profit reached VND242.9 billion ($10.56 million), an increase of 73 per cent on-year.

Elsewhere, VPS Securities JSC achieved revenues of VND1.22 trillion ($53 million) and after-tax profit of VND133.5 billion ($5.8 million) in the fourth quarter of 2020 alone, slight increases of 0.62 and 15.03 per cent on-year, respectively. This has led to VPS recording stable income from securities brokerage in the quarter, especially in derivative securities.

Saigon-Hanoi Securities JSC also posted positive performance. According to its fourth-quarter financial statement, the company achieved operating revenues in 2020 of VND683.8 billion ($29.73 million), more than three times the figure of 2019. Meanwhile, its after-tax profit reached VND348.6 billion ($15.16 million), more than 9.6 times than a year earlier.

Ho Chi Minh City Securities Corporation recorded a net revenue of VND514 billion ($22.35 million) and after-tax profit of VND137 billion ($5.96 million) in the fourth quarter, up 54 and 8 per cent, respectively. In 2020, the firm achieved VND1.59 trillion ($69.13 million) in revenues, an increase of 26 per cent compared to the whole of 2019.

Agribank Securities JSC (AGR) also achieved more than VND120 billion ($5.2 million) of profit, equalling 140 per cent of its initial forecast. Along with that, AGR shares also surged by more than 300 per cent since the furious fall into a bear market in March, making it one of the five stocks with the strongest increase during the year.

VietinBank Securities JSC meanwhile recorded a profit of VND128.18 billion ($5.57 million) for the whole year thanks to a sudden bump in the final quarter.

Elsewhere, an influx of foreign-invested brokerages, especially from South Korea and Taiwan, has also pushed the expansion of international know-how and standards as demand increased dramatically. For instance, Mirae Asset Securities Vietnam is currently the largest margin-trading brokerage, the second-largest firm in terms of charter capital and total assets, and among the top 7 in terms of market share. Its profit in 2020 reached VND500 billion ($21.7 million), from VND376 billion ($16.3 million) in 2019.

KB Securities Vietnam – a subsidiary of South Korean financial behemoth KB Group – reported its profit in 2020 reaching VND168 billion ($7.3 million), up around 60 per cent on-year.

Meanwhile, KIS Securities from South Korea also achieved VND207 billion ($9 million) in profit last year, equivalent to a nearly 63-per-cent-increase compared to 2019.

Kwangju Bank also plans to raise JB Securities Vietnam’s charter capital to VND 600 billion ($26.1 million). In 2019, the South Korean lender Kwangju Bank purchased Morgan Stanley’s Vietnam-based subsidiary Morgan Stanley Gateway Securities JSC for VND382.4 billion ($16.63 million).

After acquiring An Nam Securities, Shinhan Vietnam Securities also boosted its activities with a capital hike to VND812.6 billion ($35.3 million). Shinhan is now planning to raise more funds to capitalise on the Vietnamese market. Experts said ultra-low interest rates in South Korea have pushed brokerages to find another promising land.

Public investment a strong pillar for economic growth

Amid the health crisis hurting the domestic economy where private investment remains difficult to attract, Vietnam will continue beefing up public investment in a bid to hit its economic growth goal for this year.

Earlier, in June 2020, the National Assembly Standing Committee also converted the construction of three out of eight expressway projects, which are also parts of the eastern cluster of the North-South Expressway project, from PPP into public investment. These three projects, whose construction has been expedited, are Mai Son-National Highway No.45 (63.4km), Vinh Hao-Phan Thiet (106km), and Phan Thiet-Dau Giay (98km).

According to the Project Management Unit No.6 under the Ministry of Transport, the shift from PPP into public investment for these projects will help boost the disbursement of public investment, lure private investment, and spur on local production, as well as generate employment for local labourers. This will also help expand economic growth rate, which the government is targeted at 6.5% for this year.

Last November, the National Assembly passed a plan for boosting public investment for 2021. Accordingly, total capital from the state budget for 2021 will be VND477.3 trillion (US$20.75 billion), up 1.4% against the similar plan for 2020. In which, money from the central budget will increase 0.9% year-on-year, and money from the local coffers will climb 1.9% year-on-year.

The VND477.3 trillion (US$20.75 billion) public investment capital will be used for many types of projects. For instance, as much as VND16 trillion (US$695.65 million) will be earmarked for national target programmes, some VND15.038 trillion (US$653.82 million) will go to the project on constructing the North-South Expressway; VND4.66 trillion (US$202.6 million) will be used for the project on land compensation and resettlement for the Long Thanh International Airport; about VND2.8 trillion (US$121.74 million) will be for developing coastal roads; and around 4.7 trillion (US$204.34 million) for supporting localities in deploying a number of key new infrastructure projects.

According to the Ministry of Planning and Investment (MPI), in 2021, these new investment capital sums, in addition to capital attracted from private investors, will help to complete the construction of the eastern cluster of the North-South Expressway project, the national coastal road line, connection road lines, airports, and seaports.

An MPI leader stated that in the context of numerous difficulties induced by the health crisis, expanding public investment “will be among the most feasible measures to develop the economy and facilitate it to reach the economic growth in 2021.”

“Normally it would take several years to complete procedures for a PPP project, so public investment is now a more feasible solution,” he said.

According to the Asian Development Bank, the government should accelerate public investment as one of the key pillars for economic growth in this year and beyond.

Figures from the Ministry of Finance showed that by late 2020, close to VND390 trillion (US$16.95 billion), tantamount to 82.8% of the plan allocated, was disbursed. This has been the highest disbursement rate in the 2016-2020 period – with 80.3% in 2016, 73.3% in 2017, 66.87% in 2018, and 67.46% in 2019.

Reality has shown that since early 2020, a slew of state-funded projects, mostly infrastructure ones, have come into operation, facilitating national socio-economic development.

For example, in early January 2021, the first-phase construction for the Long Thanh International Airport project in Dong Nai province was kicked off. The port is estimated to cost VND336.63 trillion (US$14.64 billion), with over VND109 trillion (US$4.74 billion) to be needed for the first phase.

In another case, in October 2020 the 5.37 km Mai Dich-South Thang Long flyover at Pham Van Dong street in Hanoi was opened to traffic, helping reduce heavy traffic jams in the area.

Another project of the type was inaugurated in August 2020, costing about VND560 billion (US$24.3 million), crossing Hoang Quoc Viet and Nguyen Van Huyen streets in the capital city.

At the recent 13th National Party Congress in Hanoi, the Central Party Committee passed a hallmark report on assessing the results of the implementation of socio-economic development tasks for the 2016-2020 period and socio-economic development orientations and tasks for the 2021-2025 period. The report stated that public investment will be “effectively restructured and reduced in the total development capital structure.”

“Public investment will be concentrated into key sectors of the economy, key works and projects which have spillover effects and can create socio-economic development momentum, and create breakthroughs in wooing investment capital from local and foreign private sources under the PPP form,” the report stated.

According to the World Bank, Vietnam’s main instrument for macromonitoring has been the speedier implementation of the public investment programme, which has been plagued by slow disbursement in the last few years. As a result, total public investment disbursements increased from VND192 trillion (US$8.34 billion) in the first three quarters of 2019 to VND269 trillion (US$11.7 billion) during the same period in 2020 – a rise of 40%.

“Such effort, principally from the central government, has translated into an increase of investment expenditures from 4.8% of GDP to 6.5 of GDP between the first nine months of 2019 and 2020, supporting aggregate demand through the multiplier effects on suppliers and jobs over time,” stated a World Bank report on Vietnam’s economy 2020. “With any stimulus programme, the role of public investment is not just to directly stimulate the economy, but also to crowd in private investment.”

Vietnam’s economic growth hit 2.91% last year, significantly fueled by an expansion in public investment, which has helped create massive employment and consumed a great volume of materials and inputs in the economy, such as electricity, steel, and cement.

For example, figures from Electricity of Vietnam (EVN) showed that the group’s produced and imported electricity output in 2020 was 247.08 billion kWh, and its commercial electricity output reached 216.95 billion kWh, up 2.9 and 3.42%, respectively, as compared to 2019.

In the first 11 months of 2020, its public investment disbursement reached VND521.2 billion (US$22.66 million), hitting 73.6% against the initial plan allocated by the government.

According to the MPI, in such a number of big projects as the eastern cluster of the North-South Expressway project, the disbursed capital as of late December 2020 totalled VND9.96 trillion (US$433 million) out of VND10.8 trillion (US$470 million) for 11 sub-projects in last year, equal to 92.21%.

Some sub-projects (Cao Bo-Mai Son, Cam Lo-La Son, My Thuan 2 Bridge, and two leading roads) in public investment form expensed VND2.64 trillion (US$115 million) out of VND2.81 trillion (US$122 million) in 2020’s capital plan, tantamount to 94.18%.

HoSE’s raising of standard trading lot to 1,000 could bar small investors

If the Hochiminh Stock Exchange (HoSE) proceeds with its plan to raise the minimum volume of shares that can be traded in an order from 100 to 1,000 to address its trading system overload, it could leave huge negative impacts on small investors and prompt many of them to leave the bourse, according to experts and investors in the field.

Thao, the owner of an eatery in HCMC’s Thu Duc City, told VnExpress that she has topped-up VND20 million to her online trading account, which she opened just a couple of days ago and she planned to start trading on the southern bourse today, March 3.

However, last night, she learned that HoSE is weighing extending the size of the standard lot.

She originally wanted to purchase the stocks of four major businesses, namely Vinamilk, The Gioi Di Dong, Vingroup and Novaland. But if HoSE effects the change, she as an inexperienced investor could only buy stocks priced below VND20,000 with the amount of money, or has to have at least VND78 million to buy shares of the real estate developer Novaland or even over VND100 million for each of the other big stocks.

“Such amounts are too huge for new investors like me,” she told the paper.

Commenting on the issue, Dr. Tran Xuan Nam, chairman of Saonam Consulting Company, said that HoSE’s plan was going against a common trend under which the stock market is set to become a platform channeling long- and medium-term capital from the widespread public into the economy.

Nam added that the local stock market could experience a strong sell-off before the plan is executed. Further, the stock market operators would need a long time to regain the trust of and entice investors to rejoin the market.

Earlier, Le Hai Tra, general director of HoSE, shared the plan with the local media, saying that once the plan takes effect, small investors would receive better protection by investing in exchanged traded funds. Also, this would promote the growth of the fund management sector and increase the number of professional investors in line with the Government’s goal.

Further, the change in the standard trading lot could reduce some 50% in the number of trading orders, paving the way for the market turnover to reach higher levels, Tra said.

Expert suggests developing second airport for Hanoi area

The annual capacity of the Noi Bai International Airport in Hanoi should be doubled to 50 million passengers as originally planned, and a second airport needs to be built in the southern part of the Hanoi City area, instead of doing research over a second airport in 2040, said an expert.

Architect Tran Ngoc Chinh, chairman of the Vietnam Urban Planning and Development Association, put forward this proposal at a conference held on March 3 on the national airport development plan in the 2021-2030 period, with a vision to 2050, reported Tuoi Tre Online.

Chinh said that if the Noi Bai airport’s capacity is raised to 100 million passengers per year, it is a must to build a metro line linking to the airport, develop two more ring roads and an elevated road above Vo Nguyen Giap street and other infrastucture facilities, which could spoil the capital city’s urban planning and lead to extremely dense traffic facing the north of the Red River.

Accordingly, he proposed developing the second airport in the southern part of Hanoi to promote the growth of this area.

Some locations such as Ung Hoa in Hanoi, Thanh Mien in Hai Duong Province and Phu Ly in Ha Nam Province could be considered to build the airport, Chinh suggested.

In response, Nguyen Bach Tung, deputy head of the Transport Engineering Construction and Quality Management Bureau, under the Transport Ministry, agreed with the suggestion to research an appropriate location to build the second airport in the Hanoi area.

HCMC implements seaport fee collection plan

The government of HCMC has executed a resolution on introducing levels of fees for using infrastructure facilities and public services at seaport terminals in the city, reported Phap Luat Online.

The municipal government asked the relevant agencies to implement the resolution effectively within their authority.

Earlier, the HCMC People’s Council passed a plan of the HCMC People’s Committee on collecting infrastructure fees at seaports, starting from July 1 this year.

According to the plan, the lowest fee is VND15,000 per ton and the highest is VND4.4 million for a 40-foot container.

Revenue from the seaport infrastructure fees will be contributed to the State budget. Fee collectors will take a maximum 1.5% of the total revenue.

The seaport fee collection is aimed at creating a budget to develop the road system near seaports, to ease traffic congestion and to enhance the goods transport capacity, contributing to the city’s development.

‘Workation’: The rise of a hybrid travel trend after the pandemic

According to the survey, 52% of Vietnamese travelers have already considered booking somewhere to stay in order to work from a different destination, while 57% would be willing to quarantine if they could work remotely.

A recently survey conducted by Booking.com showed that workcation looks set to form a key part of people future travels, at least for the next couple of years.

‘Workation’, as the word suggests, is ‘Work’ + ‘Vacation’ and involves working away from office, blending leisure with business. While not a completely new concept, it seems to garner the attention of travelers worldwide since the outbreak of Covid-19 last year that meant working from home was the new normal.

According to the survey, 52% of Vietnamese travelers have already considered booking somewhere to stay in order to work from a different destination, while 57% would be willing to quarantine if they could work remotely.

“Remote working is becoming a likely long-term reality as health and safety is a top priority in the current environment,” Anthony Lu, Regional Director, Vietnam at Booking.com said.

He also predicts that instead of hotel, more work-friendly  accommodation alternatives, like homes and apartments will be on high demand by for both business and leisure travelers who are looking to work remotely.

In addition, more and more travelers think that having relaxing  while during a business trip is an essential, especially on the “new normal” of working  after Covid-19 pandemic.

Accordingly, 58% of Vietnamese travelers on the survey said they would take the opportunity to extend any business trip so that they could schedule some leisure time. Many are also likely to add a week or two to their holiday in order to work remotely.

Although working from one’s own home has its perks in the coming time, people still want to book somewhere to stay for a welcome change of scenery.

Laptops become the newest travel necessity of 2021, with 61% agreeing that due to the increase in working from home and reliance on technology, business travel will be considered less essential than before. Instead, “workation” may become more prevalent and preferable.

These travelers are mostly looking for accommodation that has home office facilities, fast WiFi and most importantly, a spectacular view or cozy area to help make the workday fly by. Good health and safety precautions at each destination is again a top priority. It is tough to focus on work if our mind is caught up with safety or security concerns around the property.

“There is always a way to jazz up work and yet achieve your travel passion, now more than ever. Travelers could now set themselves free from the long-working time of nine hours for five consecutive days at the office because they can work from anywhere,” experts from Booking.com said.

Vietnam holds potential to become new destination for global investors

Vietnam is currently home to 100 Swiss firms with a combined investment capital of nearly US$2 billion, including major names such as Nestle, Novatis, Roche, Holcim, and ABB.

Given the country’s positive progress in global economic integration, Vietnam holds potential to become new destination for global investors.

Vietnamese Ambassador to Switzerland Le Linh Lan made the statement in an online conference discussing Vietnam’s market economy on March 2 to mark the 50th anniversary of Vietnam-Switzerland diplomatic relation (1971-2021).

“While the global economy fell into a recession, Vietnam’s effective measures against the Covid-19 pandemic has helped the local economy maintained a positive growth of 2.9% in 2020,” noted Lan.

“The country’s strong efforts in digitalizing its economy and the technology competent workforce are plus points,” she continued.

Echoing Lan’s view, Trade Counsellor of Vietnam Nguyen Duc Thuong noted Vietnam has a huge network of industrial parks nationwide and extensive economic partnership with over 50 economies around the world, making the country an attractive investment destination.

According to Thuong, Switzerland is one of Vietnam’s major trading partners and its sixth largest European investor, for which 100 Swiss firms are currently operating in the country with a combined investment capital of nearly US$2 billion, focusing on manufacturing and processing, electricity.

International Business Advisor of consulting firm Dezan Shira & Associates Filippo Bortoletti said 112 countries and territories are having investment projects in Vietnam, while opportunities continue to arise given the country opening up for more business fields from electronic technology, chemicals to material production.

Marketing Manager of Vietnam-Singapore Industrial Park (VSIP) Nguyen Chi Toan attributed the country’s political stability, a large market and high-skilled labor force as factors to help attract FDI.

“There has been a shift in customer behavior towards online platform, which contributes to the digital transformation process,” he suggested.

Giving a more detail look on the operation of Swiss companies in Vietnam, Supply Chain Director of Nestle Vietnam Will Mackereth said the company is employing nearly 4,000 workers and remains among top three most efficient branches of the corporation worldwide.

According to Mackereth, Vietnam is one of Asian hubs for production and trade.

Two co-founders of The Happy Turtle Straw of Axel Armellin-Nguyen and Nhat Vuong said more local customers are turning to green products, which create room for the company to expand other green product lines of shoes and face masks made from coffee slurry, or straw, knives and forks from bamboo.

Slow digital transformation might mean bankruptcy for small-scaled businesses

The digital transformation process normally takes place under the two forms of implementing digital technologies into the existing business model or completely reforming the operation model and business structure.

Dr. Trung shared that even though digital transformation has appeared in the world for over 10 years, most companies choose the form as a situational solution only.

A recent research co-conducted by RMIT University experts and KPMG Audit Co. reveals that foreign-invested enterprises and large private corporations in Vietnam are going through this process smoothly. Sadly, state businesses and small- and middle-scaled enterprises are just at the beginning stage.

Adding to this tardiness are the adverse effects of Covid-19 pandemic on business activities, creating several challenges in administration performance.

Finally, among small- and middle-scaled enterprises, there are always obstacles from weak competitiveness ability, low creativity, difficulties in approaching capital sources, and high overhead cost.

“These issues might lead to even more trouble if each business and the Government do not apply suitable policies to tackle”, said Dr. Trung.

He firmly stated that implementing digital technologies is unavoidable if enterprises want to maintain their operation in this Industry 4.0, and this should be done as soon as possible.

Even in this harsh time, there are more and more novel business models related to digital technologies appearing worldwide. Admittedly, various kinds of trouble are preventing many companies from carrying out the digital transformation process. However, worse than the pandemic itself, slowness in applying these new models would no doubt lead many small businesses to bankruptcy.

Insiders make suggestions to maintain sustainable export growth

Vietnamese enterprises should take advantage of online marketing channels, re-arrange production and business orientations and strategies, and bring into full play advantages brought by free trade agreements if they want to achieve sustainable export growth, according to insiders.

Statistics of the Ministry of Industry and Trade (MoIT) shows that Vietnam’s import-export value reached 95.8 billion USD in the first two months of 2021, up 24.5 percent year-on-year. Of the total, exports were valued at 48.55 billion USD, up 23.2 percent, and imports 47.26 billion USD, up 25.9 percent.

During January-February, Vietnam enjoyed a trade surplus of 1.29 billion USD, down from the 1.8 billion USD seen in the same period last year. The domestic sector posted a trade deficit of 4.14 billion USD, while the FDI sector, including crude oil, saw a trade surplus of 5.43 billion USD.

At the Government’s February regular meeting, MoIT Minister Tran Tuan Anh set a target of 4-5 percent in export growth in 2021.

To that end, MoIT Deputy Minister Cao Quoc Hung said that the ministry is considering a new strategy on import-export activities in the coming time to be submitted to the Prime Minister for issuance.

In addition, the ministry will continue engaging in negotiations and perfecting relevant institutions on free trade agreements (FTAs), including issues related to the rule of origins so as to help business better optimize advantages of the agreements.

It will also consolidate and expand export markets, bring into full play opportunities brought about by existing FTAs, diversify import and export markets, diversify exported products, increase the competitiveness of exported products, and develop brands so as to achieve sustainable export development, Hung added./.

Hanoi licenses 22 new FDI projects in February

A total of 22 foreign investment projects were granted new licenses in Hanoi during February, with a combined registered capital of U$12.1 million, according to information released at a recent press conference held by the municipal People’s Committee.

The opening two months of the year witnessed the total registered capital of newly established FDI projects and additionally increased capital projects reach a sum of US$58.9 million.

Furthermore, the capital has allowed two domestic investment projects to make use of non-budget capital, with newly registered capital and increased capital reaching VND2.879 billion.

Most notably, the reviewed period saw roughly 3,415 enterprises being established, with registered capital reaching VND36.6 billion, a decline of 8% in terms of the number of enterprises and a 54% fall in registered capital compared to the same period from last year.

Despite being affected by the novel coronavirus (COVID-19) pandemic, the economic situation in the capital has yielded a number of positive results, including many outstanding indexes being recorded throughout the two-month period.

The total state budget revenue in the capital by the end of February stood at VND50.839 billion, accounting for 20.2% of the estimate.

Moreover, both January and February witnessed the strong recovery of export and import activities, with export turnover in February posting a year-on-year rise of 10.7%.

Banks plan to attract foreign capital

A number of banks continue planning to raise capital this year to improve their financial capacity and many have already deployed plans to attract more foreign capital.

The shareholders of Viet Capital Bank have approved the plan to issue additional shares of up to a maximum of VND1 trillion ($43.5 million) in the first quarter.

At the same time, the bank has just closed the list of shareholders whose written opinions will be requested on the plan to set the maximum foreign ownership limit at 30 per cent to attract additional foreign capital while improving financial capacity and competitiveness.

Nam A Bank is implementing a plan to increase its charter capital to VND7 trillion ($304.35 million), including a plan to issue 57 million shares, equivalent to VND570 billion ($24.8 million), to pay dividends at the rate of 12.4878 per cent and offer for sale 143 million individual shares, equivalent to VND1.43 trillion ($62.17 million).

In addition, the bank is also completing the application to list shares on the Ho Chi Minh City Stock Exchange (HSX), instead of trading on the UpCom where it is traded at around VND14,200 (62 US cents).

Orient Commercial Bank (OCB) said that the bank plans to sell another 10 per cent of its shares to foreign investors after completing the deal to sell a 15 per cent to Aozora Bank from Japan in June 2020.

Sacombank (SCB) also said that they continue to improve their financial capacity and competitiveness. Accordingly, the bank has submitted to an extraordinary general meeting a plan to increase charter capital by VND5 trillion ($217.4 million) at the end of 2020. The move has increased its charter capital from VND15.23 trillion to VND20.23 trillion ($662.17-879.57 million).

Previously, Sacombank also announced that it was negotiating with foreign strategic partners to sell part of its capital in order to improve its financial potential after completing the restructuring and listing on the stock exchange.

According to the provisions of Decree No.01/2014/ND-CP, the ownership ratio of a foreign strategic investor must not exceed 20 per cent of the charter capital of a Vietnamese credit institution, and the total share ownership ratio of foreign investors in a domestic credit institution must not exceed 30 per cent of capital.

Currently, many Vietnamese banks are looking to fill up their foreign ownership rooms. At restructuring banks or the three zero-dong banks, foreign partners can buy 100 per cent of the capital with the consent of the government.

On the other hand, according to the EU-Vietnam Free Trade Agreement (EVFTA), European banks will be able to increase their shareholding rate in two Vietnamese banks to up to 49 per cent without waiting for a decision to increase the foreign ownership limit. This commitment does not apply to the four state-run banks of BIDV, VietinBank, Vietcombank, and Agribank.

Ho Chi Minh City urges on 32 long-delayed real estate projects

At a recent meeting between Ho Chi Minh City People’s Committee and real estate developers, 32 long-delayed projects by 21 developers were discussed to bring about breakthroughs in development.

Novaland had the largest number of projects under discussion by the central and local authorities, with 10 of the 32 projects bearing their logo. These projects include Co Giang apartment building in District 1, the officetel and apartment building at 151 Ben Van Don Street in District 4, a 30 hectare project in Binh Khanh commune of District 2, and seven other projects in Phu Nhuan district.

The Co Giang apartment building in District 1 was handed over land by Ho Chi Minh City People’s Committee and the local Department of Construction has granted a construction licence for the project.

The officetel and apartment building at 151 Ben Van Don Street in District 4 has already been approved for land use right taxation.

In the 30ha project in Binh Khanh commune of District 2, legal procedures are being reviewed together with the larger project of Thu Thiem New Urban Area (where this project is located). At the same time, the local authorities are looking for solutions to help achieve a breakthrough at the project.

Seven other projects are being reviewed by local authorities.

Him Lam Land’s Him Lam residential project in District 9 (Thu Duc City) and Saigonres’ two projects were also on the agenda for having legal difficulties. Le Thanh Construction-Trading Co., Ltd. and Phu Long Real Estate Corporation have two projects each.

According to Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, the key problems of those projects are mainly related to the slow process of calculating land use rights. Because of this, developers cannot pay tax and be approved for construction and granting red books to buyers.

Representing the developers, Chau suggested Ho Chi Minh City People’s Committee to issue guidelines to pave the way for projects which include public land. These projects have been delayed for a long time as they consist of small land plots under the management of the state and they cannot get the whole project cleared for construction.

“Local authorities should consider these projects case by case and submit their proposals to the committee to collect the public land plots and hand them over to developers,” Chau said.

Other solutions proposed included removing administrative procedures, setting out a priority list to grant red books to end-users as soon as possible.

He also suggested the committee to set up City Architect Consultant Bureau which can help solve prolonged delays.

The committee’s chairman Nguyen Thanh Phong assigned local authorities to submit a report on each project, talking with developers to ensure their projects can recommence at the soonest.

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