Introducing a new cat

Specifically, beating or torturing domesticated animals, including four-legged mammals like dogs and cats and two-legged avian species like chickens and ducks, could result in fines between VND1 million and VND3 million, while abattoirs could be fined between VND3 million and VND5 million should they either beat animals prior to slaughtering them or not inducing unconsciousness prior to death.

The fines would be doubled for organizations committing similar violations, at up to VND6 million.

The new decree also increased fines for introducing foreign substances into animals prior to slaughtering to up to VND50 million from the current VND30 million at maximum.

A representative for the department of livestock production under the Ministry of Agriculture and Rural Development said the concept of humane treatment towards animals is still new to the population, so fines would not be too severe, only aiming to raise awareness towards the issue.

Animal torture in the decree is defined as using force to beat, bind and confine them, or leaving them to starve and not caring for them.

By Hoang Oanh

Many firms in Binh Duong Province are facing difficulties in finding workers after the Tet Holiday.

Recruitment advertising

It’s estimated that 611 firms in Binh Duong need nearly 71,300 employees, 20,000 more than last year. Over 85% of the firms with trade unions have resumed work and 716,000 out of 774,000 employees have returned to work.

Firms at VSIP Industrial Park want to recruit 20,000 new employees and firms at Ben Cat Industrial Park are in need of 10,000 employees. Dozens of firms have contacted the Labour Confederation of Binh Duong and communal authorities to ask for help.

Firms in major cities like Di An, Thuan An and Thu Dau Mot cities can find new employees more easily while it’s a struggle for firms in remote areas like Bac Tan Uyen or Bau Bang districts. Firms in Binh Duong also face tough competition with firms in nearby cities and provinces. The average wages and bonuses in Binh Duong are considered lower than in HCM City and Dong Nai Province. Moreover, many people still don’t want to go to work yet due to the ongoing outbreak.

Nguyen Hai Dinh from Son La Province said, “I have done some research and realised that the minimum wages are basically the same in all companies so the question is which one has better treatment and bonuses. This is the first time I go to Binh Duong to work so I’m in the dark.”

Binh Duong Department of Labour, Invalids and Social Affairs has asked the Employment Service Centre to provide more information both offline and online, contact provinces with a labour source and consult firms about better wages and bonuses to attract employees.

Vocational schools, colleges and universities were asked to help with job introduction. Meanwhile, firms were asked to send HR employees to go find new employees in other regions with the trade unions or ask their own employees to introduce new people.

MPI proposes a draft decree on procurement bidding under CPTTP

The Ministry of Planning and Investment (MPI) has summited to the Government a draft decree on amending Decree 95/2020/ND-CP providing guidelines on procurement bidding under the Comprehensive and Progressive Trans-pacific Partnership Agreement (CPTTP).

According to the MPI, the draft decree will amend and supplement some articles of Decree No 95. It aims to guide State companies to execute bidding packages under the CPTTP agreement and EU-Việt Nam Free Trade Agreement (EVFTA).

However, per the Government’s Resolution No 190/NQ-CP on the provisional application of the UK-Việt Nam FTA (UKVFTA), Việt Nam agreed to temporarily apply the UKVFTA from January 1, 2021.

The agreement was negotiated based on the principle of inheriting commitments in the EVFTA with necessary adjustments to ensure compliance with the bilateral trade framework between Việt Nam and UK. By doing so, the draft decree will avoid amending Decree 95/2020/NĐ-CP many times.

The MPI has asked the Government to revise Decree No 95 as follows.

The first option aims to implement international treaties on bidding and the second option is to execute the bid for public procurement of goods under the CPTTP, EVFTA and UKVFTA.

To boost competitiveness in bidding, the draft decree has stipulated the implementation of bidding related to consultancy services, non-consultancy services and construction services.

In the draft decree, bidding packages specified in Appendix II of the Decree No 95 show State companies will decide to allow intra-regional contractors or contractors from member countries of CPTTP to attend only.

For bidding packages specified in Appendix III of Decree No 95, State companies can allow intra-regional contractors or contractors from member states of the EU and UK to bid.

Regarding the intra-regional procurement bidding for the supply of goods specified in (Appendix II), State companies will decide to allow intra-regional contractors to offer goods originated from member countries of the CPTTP, the UK and EU to attend or allow member countries of CPTTP to offer goods originated from these countries only.

For supply of goods specified in (Appendix III), State companies will decide to allow intra-regional contractors to offer goods originated from member states of the CPTTP, the EU and UK or only allow contractors from the EU and UK to offer goods originated from these countries.

Enhancing added value for rice industry

The Ministry of Agriculture and Rural Development has just approved a project on restructuring the Vietnam’s rice industry until 2025 with a vision to 2030.

Accordingly, Vietnam will continue to restructure the rice industry in the direction of improving efficiency and sustainable development towards the objectives of fully meeting domestic consumption demand, being the core in ensuring national food security, and enhancing the efficiency of the rice value chain.

Under the project, Vietnam also expects to adapt to climate change and mitigate the impacts of climate change, make efficient use of natural resources and protect the ecological environment, and increase income for farmers and benefits for consumers, in addition to exporting high quality and high value rice.

The country also plans to keep its rice area at 3.6 to 3.7 million hectares by 2025, with rice production of 40 to 41 million tonnes per year.

The rice industry also aims at exporting 5 million tonnes of rice each year by 2025, including 40% fragrant rice, specialty rice and japonica rice, 20% sticky rice, 20% high quality rice, 15% medium and low-grade rice, and 5% products processed from rice. The percentage of branded rice exports is over 20%.

The country sets the target of exporting 4 million tonnes of rice by 2030, including 45% fragrant rice, specialty rice and japonica rice, 20% sticky rice, 15% high quality rice, 10% medium and low-grade rice, and 10% products processed from rice, with over 40% branded rice exports.

A notable aspect of the project is that the rice export volume has decreased gradually in each period, but the criteria for specialty rice, high quality rice, processed products from rice, and percentage of branded rice exports sees increases year by year.

This shows that the future direction of the rice industry is to reduce the area and output for export towards a focus on improving rice quality and selling prices.

This is the right target which is suitable to the current situation of rice production and export, particularly in the context that Vietnam has signed many free trade agreements (FTAs) with international partners, such as the EU-Vietnam Free Trade Agreement (EVFTA), the Regional Comprehensive Economic Partnership (RCEP), and the UK-Vietnam Free Trade Agreement (UKVFTA).

To make the best use of the advantages from FTAs, the rice industry has to constantly improve product quality to meet the increasingly strict requirements of importing countries.

Rice is a strategic commodity of our country, not only contributing to the economic development but also playing an important role in ensuring national food security. Therefore, promoting the restructuring of this industry is essential to better boost the achieved results while igniting untapped potential.

The solution for the coming time is to develop concentrated rice production areas with identified varieties and the links between production, consumption and export. It is also important to strictly control the production process, obey the limit of pesticide residue, and ensure traceability.

The rice industry also needs to apply advanced technology in terms of post-harvest preservation and processing to reduce losses, ensure uniform quality of rice products, and fully satisfy food hygiene and safety regulations.

Danang focuses on production and export to restore economy

Even as the tourism and services sectors continue to be impacted by the Covid-19 outbreak, manufacturing and export are expected to help the central city of Danang restore its economy, with several projects gearing up for acceleration.

Stealing the limelight is the Danang City Software Park No. 2 project (first phase), which will have an investment capital of more than VND1,300 billion after the investor pumps more than VND500 billion into the project.

This information was revealed in a report made by the Danang industrial and civil construction projects management board, the project’s investor, which was unveiled at a function held on February 19 at the project’s construction site in Danang City.

As planned, work on the project commenced on October 10, 2020, and it will be completed by August 31, 2022, inclusive of three main buildings ICT, ICT1 and ICT2.

However, Nguyen Huu Ninh, the board’s director, said part of the project will be accelerated and targeted to be completed at least eight months ahead of schedule, to meet demands from businesses.

Specifically, the Danang City Investment Promotion Agency had asked the project’s investor to consider requests by LG, one of the customers at the park, about putting the ICT1 block into operation soon. After a discussion, the investor agreed to hand over the site to the tenant on December 31, 2021, instead of August 2022.

In addition, a representative of the Danang Hi-tech Park said the supporting industry zone located at the park will be put into operation in June 30 this year, paving the way for potential investors to step in.

In addition to boosting projects in the information technology sector, Danang also expects the operational production projects of domestic and foreign investors to be the driving force to restore the city’s economy as well as to contribute to exports.

Tokyo Keiki Precision Technology Co., Ltd. specializes in manufacturing hydraulic equipment components and products (solenoid valves and pumps) at the Danang Hi-tech Park. It targets to earn 678 million yen (almost US$6.5 million) in the fiscal year of 2021, up 10% against 2020.

According to Tokyo Keiki, after gaining sustainability from some overseas markets, including China, the company plans to make products for the Japanese market in the near future.

In the fiscal year of 2020, the company earned 618 million yen. Due to the Covid-19 outbreak, the company had a large number of inventories. However, everything began improving since December 2020.

Meanwhile, Thuan Phuoc Fisheries and Trading Joint Stock Company obtained total revenue in 2020 of VND2,315 billion, up 10% against 2020. Nguyen Thi Phi Anh, general director of Thuan Phuoc, said the company is constructing a new frozen seafood processing plant in the Mekong Delta province of Tien Giang with a capacity of 4,950 tons a year. The plant will be put into operation in the second quarter of 2021.

As production is being restored, the central city expects exports to accelerate.

Reportedly, in 2021, Danang Port JSC will see the throughput (mainly via its Tien Sa seaport) increase by 5% against 2020, while the profit growth will increase at least by 8% compared to 2020.

In 2020, the total volume of goods through ports in Danang reached 11.4 million tons. It earned a profit of VND260 billion.

Danang port regularly welcomes ships from 18 firms around the world.

HCMC: Development of industry, trade attaches with regional economy, innovation

Vice Chairwoman of the People’s Committee of Ho Chi Minh City Phan Thi Thang chaired the meeting for the approval of the implementation plan for the year 2021 of the Department of Industry and Trade with the attendance of representatives of departments and industries of the city.

Reporting at the meeting, Mr. Bui Ta Hoang Vu, Director of the Department of Industry and Trade of HCMC, said that the industry and trade of the city would strive to meet the basic targets this year.

Specifically, the index of industrial production would increase by 5 percent, with four major industries surging from 6.7 percent upwards compared to last year. Total retail sales and service revenue in the city would exceed VND835.68 trillion, up 10 percent.

Export turnover through border gates across the country would reach US$48.19 billion, up 10 percent. Import turnover would hit $56.47 billion, up 11 percent compared to the estimate of 2020.

The city’s industry and trade would upgrade 100 percent of administrative procedures to level 4, supporting people and enterprises in settling administrative procedures, especially in the process of arranging administrative units at district and commune levels and establishing Thu Duc City under the HCMC.

To achieve the above targets, the department will synchronously carry out solutions to contribute to the general goal of industrial and trade development with a fair growth rate, supporting the recovery of economic growth in the city, at the same time, creating strong changes in economic restructuring towards services – industry – agriculture, in which the service sector’s proportion in the gross regional domestic product (GRDP) will be maintained at above 60 percent.

It will also build and take some measures to develop the industry and trade that foresee the development trend, helping the city to maintain its role as an economic locomotive and the pioneer in innovation nationwide.

The development of the industry and trade will attach with the regional economy, the application of science, technology, innovation, and the in-depth development based on three foundations, comprising developing four key industries, supporting industries, and key industrial products and potential industrial products of the city. The department will develop e-commerce and focus on turning some advantageous products of the city into key export products in the coming time.

As for administrative reform, the department will take the enterprise as the center, and the satisfaction of the people, organizations, and enterprises as a measure of its effectiveness; promote the application of information technology in management and administration activities of the department this year, in which it will research and deploy digitization and paperless meetings.

Vice Chairwoman of HCMC People’s Committee Phan Thi Thang highly appreciated the position and role of the city’s industry and trade in deploying and implementing key programs of the city, making an important contribution to the implementation of the “dual goals” of both preventing the Covid-19 pandemic and realizing the city’s socio-economic development goals in 2020.

As for the plan for 2021, Ms. Phan Thi Thang agreed on the targets, operational directions, and groups of solutions of the Department of Industry and Trade.

The year 2021 is the first year to implement the city’s socio-economic development plan in the 2021-2025 period, and important projects approved by the municipal People’s Committee, such as the development project of e-commerce in the city to 2025-2030, logistics development project to 2025-2030, export development project to 2025-2030, programs to support the development of key industrial products and potential industrial products, and continue to restructure the city in the 2021-2025 period.

Therefore, the work program needs to clearly state the contents of the work to implement the goals and tasks in 2021, clearly assign the responsibilities of each position and prove by actual results and completion time. There should be a strong breakthrough in the administrative sector to raise the level of people’s satisfaction in the implementation process.

Regarding the recommendations of the industry and trade, Ms. Thang approved the policy and assigned the industry and trade to implement two concentrated promotions in 2021 so as to create a boost in attracting domestic and foreign tourists to visit and contribute to building HCMC into a major shopping center of the region and the country.

For recommendations related to administrative procedures, the city will prioritize helping enterprises to develop production and business. As for other recommendations, the HCMC People’s Committee will organize working sessions to collect opinions of competent departments and give specific feedback to the department.

The municipal People’s Committee will soon consider and assign personnel to strengthen the leadership apparatus to create conditions for the Department of Industry and Trade to focus on completing the assigned tasks.

RCEP offers opportunity to expand Vietnamese agricultural exports

The Regional Comprehensive Economic Partnership, the world’s largest trade pact, offers Vietnamese agricultural exporters an excellent opportunity to increase their participation in global value chains, experts said.

Le Duy Minh, chairman of the Viet Nam Farms and Agricultural Enterprises Association, said the RCEP provides the country’s farm produce with access to a larger market and opportunity to improve their competitiveness.

The trade deal brings together the 10 ASEAN member countries, Australia, China, Japan, New Zealand, and South Korea, which account for 29 per cent of the world’s GDP and have a population of 2.2 billion.

The trade pact promises to help increase Viet Nam’s exports since many of the other members have huge demand for its farm produce and processed foods.

Thanks to the harmonisation of rules of origin between the members, Viet Nam’s exports could meet all the requirements to benefit from preferential tariffs in countries like Japan, South Korea, Australia, and New Zealand, Minh said.

These countries also have relatively similar import standards and consumer tastes, not to mention the lower transportation and logistics costs they offer thanks to their proximity.

It also opens new opportunities for trade with China in new categories such as communications, financial services, logistics, and e-commerce.

Nguyen Phuc Nguyen, general secretary of the Viet Nam Fruit and Vegetable Association, said the trade deal would further increase the country’s agricultural exports to China, already a major market.

The RCEP removes tariffs on at least 64 per cent of tariff lines.

In 15-20 years Viet Nam will abolish 89.6 per cent of tariff lines while its partner countries will remove 92 per cent of its tariffs.

Other ASEAN members will remove 85.9 per cent of all tariffs for Viet Nam.

Nguyen Dinh Tung, the general director of Vina T&T Company, said the RCEP was enabling talks on opening up export markets to more of the country’s agricultural products.

Commitments and trade facilitation measures under the deal are also expected to promote the growth of new supply chains, thus boosting international standard agricultural production in ASEAN.

However, experts also pointed to a host of challenges such as satisfying rules of origin and quality standards and competition from foreign rivals in both the domestic and foreign markets.

Tung said businesses should view free trade deals, including the RCEP, as a chance to improve their product quality, bolster supply chain management and promote competitiveness.

Vietnamese airlines’ on-time performance hits 94.6 percent

Vietnamese airlines’ on-time performance (OTP) from January 19 to February reached 94.6 percent, according to the Civil Aviation Authority of Vietnam (CAAV).

Bamboo Airways recorded the highest rate of 96.7 percent, followed by Pacific Airlines (96.5 percent), Vietnam Airlines (96.3 percent), Vietravel Airlines (93.6 percent), Vasco (93.4 percent), and Viejet Air (91.7 percent).

Experts said the figures demonstrate the great efforts by the domestic airlines given the impact of new infections in the northern provinces of Hai Duong and Quang Ninh ahead of the Lunar New Year (Tet) festival.

During the period, the domestic airlines operated 20,944 flights, representing a month-on-month increase of 7.4 percent.

Vietjet Air conducted the highest number of flights among domestic carriers, with 7,881. It was followed by national flag carrier Vietnam Airlines (6,725), Bamboo Airways (4,008), Jetstar Pacific (1,640), Vasco (518), and Vietravel Air (172).

Despite the impact of COVID-19, the Hanoi-HCM City route remained one of the world’s busiest domestic routes.

It is ranked second globally, with 1.085 million passengers in February, just behind the Jeju-Seoul Gimpo route in the Republic of Korea, according to a report released in February by OAG, a global travel data provider headquartered in the UK.

Ensuring the safety of flights, passengers, airport staff, and crew members remains the top priority of the airlines./.

Long An needs around 1.3 billion USD for transport infrastructure development

The Mekong Delta province of Long An will mobilise some 30 trillion VND (1.3 billion USD) to develop local transport infrastructure during 2021-2025, according to the provincial Department of Transport.

In the next five years, capital will be prioritised for three key transport projects and eight breakthrough projects under the Resolution adopted at the province’s 11th Party Congress. Of the total, over 18 trillion VND will be sourced from the central and local State budget, and nearly 12 trillion VND will be raised from other legal sources.

According to Deputy Director of the provincial Department of Transport Nguyen Hoai Trung, along with pushing construction of the belt road in Tan An city and DT830 road, the sector is sharpening focus on completing procedures for the building of several important transport projects such as DT 827E road worth 16.5 trillion VND, and DT 830E road worth over 3.3 trillion VND.

Upon completion, the projects are expected to connect local industrial parks and clusters in key economic zones with Long An International Port, Ho Chi Minh City and localities in vicinity, helping facilitate travel and transportation of goods of local people and enterprises./.

Vietnam lures 5.46 billion USD in foreign investment

As much as 5.46 billion USD worth of foreign direct investment (FDI) was injected into Vietnam as of February 20, equivalent to 84.4 percent of the figure recorded in the same time last year, according to the Ministry of Planning and Investment.

As many as 126 foreign projects were granted investment licences with total registered capital of 3.31 billion USD, a year-on-year fall of 33.9 percent.

Meanwhile, 115 existing projects adjusted their investment capital with a total additional sum of 1.61 billion USD, or 2.5 times higher than the same time last year.

Capital contributions and shares purchases by foreign investors stood at 543.1 million USD, down 34.4 percent.

Foreign investors pumped capital in 17 sectors, with processing and manufacturing holding the lead with over 3 billion USD or 55.7 percent, followed by power production and distribution with 1.44 billion USD (26.5 percent), real estate 485 million USD, and science-technology nearly 153 million USD.

Japan topped the list of 46 countries and territories landing investment in Vietnam, with 1.64 billion USD, equivalent to nearly 30 percent of the total. Singapore came second with 1.07 billion USD (19.6 percent), and the Republic of Korea third with 1.05 billion USD (19.3 percent).

The ministry said the southern province of Can Tho lured the lion’s share of FDI with 1.31 billion USD, accounting for 24.2 percent of the total. Hai Phong city was the runner-up since it attracted nearly 918 million USD, or 16.8 percent. Bac Giang came third with nearly 573 million USD (10.5 percent).

So far this year, the foreign-invested sector has earned 38.07 billion USD from exports, up 34 percent year-on-year, and making up 76.1 percent of the nation’s total export turnover. At the same time, it spent 31.6 billion USD on imports, up 31.2 percent year-on-year, and accounting for 66.6 percent of the country’s total import value. That resulted in a trade surplus of nearly 6.5 billion USD./.

Denmark prioritises supporting Vietnam in green energy development

Denmark prioritises helping Vietnam’s energy sector with green development and transformation, Danish Ambassador to Vietnam Kim Højlund Christensen affirmed on February 24.

He was speaking at an online signing ceremony of Memoranda of Understanding on cooperation in the supply of pile foundations and logistics ports for the La Gan offshore wind power project in the south central province of Binh Thuan.

Collaboration in projects like La Gan will contribute to expanding and enhancing cooperation between the two countries in sharing information, and improving the capacity of experts and employees, especially in the offshore wind power supply chain, the ambassador said.

The La Gan wind power project, with an estimated capacity of nearly 3.5 GW, is being developed by Copenhagen Infrastructure Partners (CIP), Asiapetro and Novasia.

It is expected to generate electricity for over 7 million households each year.

According to the BVG Associates, the project will create over 45,000 full-time equivalent (FTE) jobs and contribute over 4.4 billion USD to the economy during the course of the project.

The total rate of locally-made components will account for about 45 percent of the supply chain of the project.

As the project will be carried out for many years, more opportunities will be given to Vietnamese contractors to join the supply chain.

Since the signing of a memorandum of understanding with the provincial People’s Committee in July 2020, the project has achieved significant progress, including preparing for a field survey and approving survey license.

With a total investment of 10 billion USD, it is also one of the first large-scale offshore wind power projects in Vietnam./.

Vietnam Airlines plans to spend big on Long Thanh International Airport

The Vietnam Airlines Corporation has said it is planning to invest nearly 10 trillion VND (434.78 million USD) in Long Thanh International Airport, which is now under construction in the southern province of Dong Nai.

Vietnam Airlines Chairman Dang Ngoc Hoa said that, in its development strategy for 2021-2030, the corporation and its member units will set aside resources to participate in the building and operation of infrastructure at the Long Thanh airport, providing full services in air transport for itself and other carriers.

Services include providing aviation fuel, ground technical services, meals, cargo terminal services, aviation logistics, waiting room services, and duty-free sales, which it has already been providing at many major airports via subsidiaries or affiliates.

Hoa said that 30 percent of the total investment in these services at the Long Thanh airport will come from Vietnam Airlines, with the remainder from loans.

The corporation and its members will directly invest in infrastructure construction or cooperate with the Airports Corporation of Vietnam (ACV) to set up joint stock or limited liability companies to carry out the work.

Director of the Civil Aviation Authority of Vietnam (CAAV) Dinh Viet Thang said the proposal is reasonable since the services suggested are associated with transport services.

He noted, however, that the corporation will have to participate in the tender process.

The first phase of the Long Thanh International Airport, from 2020 to 2025, will receive over 109 trillion VND (4.66 billion USD) in investment and will feature one runway, one passenger terminal, and associated facilities capable of catering to 25 million passengers and handling 1.2 million tonnes of cargo annually./.

Japanese energy firm to hold 11 percent stake of Petrolimex

Japan’s ENEOS Corporation said it has registered to buy 25 million treasury stocks of the Vietnam National Petroleum Group (Petrolimex).

The purchase will be made from March 1-30 in the form of order matching on the stock market.

It previously acquired 13 million treasury shares of Petrolimex, or a stake of 1 percent, from August 27 to September 14, 2020.

A representative said the JX Nippon Oil and Energy Vietnam Co. Ltd., an affiliate of the ENEOS Corporation, currently holds more than 103.5 million Petrolimex shares, equivalent to an 8 percent stake.

Once this latest purchase is completed, the corporation will hold about 11 percent of Petrolimex. Meanwhile, Petrolimex still has 50 million treasury shares.

Earlier, Petrolimex announced it would divest the State holding to 51 percent during 2020 and 2021.

Petrolimex earned consolidated revenue of 123 trillion VND (5.34 billion USD) last year, surpassing the plan by 1 percent. After-tax profit stood at 1.23 trillion VND, down 74 percent year-on-year.

It was honoured by Forbes Vietnam last year as the biggest earner for the fourth consecutive year, one of the top 50 listed companies, and one of the 50 leading brands in Vietnam./.

Q1 GDP growth likely lower than target

Vietnam’s GDP growth in the first quarter of 2021 is forecast to come in at 4.46 percent; 0.66 percentage points below the target set in the Government’s Resolution No 01 in a scenario where the COVID-19 pandemic is controlled during the quarter.

Resolution No 01/NQ-CP on key measures to carry out the 2021 socio-economic development plan and State budget estimates outlines growth scenarios for each quarter and for each sector throughout the year.

The Government set a goal of posting growth of 6.5 percent and increasing workplace productivity by nearly 4.8 percent and health insurance participation to around 91 percent. The rate of multi-dimensionally poor households is expected to fall by 1-1.5 percent.

With the results in the first quarter, if the growth targets in the Resolution for subsequent quarters are reached, 2021’s GDP growth is estimated to come in at 6.37 percent; exceeding the 6 percent target set by the National Assembly but still lower than the target set in the Resolution.

Minister of Planning and Investment Nguyen Chi Dung said it is necessary to urgently implement the Resolution to achieve objectives in the socio-economic development plan in the 2021-2030 and 2021-2025 periods.

In a report submitted to the Government in January, the Ministry of Planning and Investment (MPI) proposed that priority be given to disease prevention and control in order to ensure the health of the citizenry and minimise the impact of the pandemic on the national economy.

It also proposed measures to promote economic growth through the “three-horse carriage” of investment, exports, and consumption.

The banking and finance sector continues to implement sensible fiscal and monetary policies to ensure macro-economic stability and stimulate economic growth, cut unnecessary expenses, especially regular spending, maintain a reasonable interest rate level and improve credit quality for priority areas, and strictly control credit in areas of potential risk.

Monetary and fiscal policies need to be assessed carefully towards developing support policies for those affected by COVID-19, especially services, tourism, and transport.

The Ministry of Industry and Trade (MoIT) is responsible for urgently building and implementing policies to stimulate domestic consumption, improve links between production and consumption in the supply chain, and promote the development of distribution networks associated with the “Vietnamese give priority to Vietnamese goods” campaign, to boost sustainable consumption demand.

It is also working to improve institutions and create favourable conditions for the development of e-commerce and e-payments as well as supporting export enterprises to expand markets through cross-border e-commerce.

Meanwhile, the MPI also proposed continued improvements to the quality of institutions, thus creating an open and favourable business and investment environment for enterprises.

Regarding the management, disbursement, and use of overseas development assistance (ODA), ministries, sectors, and localities must determine project priorities in association with ensuring reciprocal capital, and promote investment projects in the form of public-private partnerships, to attract investment capital from the private sector, especially for transport infrastructure projects.

Localities have been urged to focus on promoting international cooperation, diversifying import and export markets, taking full advantage of free trade agreements (FTA) Vietnam has signed, strengthening defence measures, and building early warning systems to protect domestic production and support businesses responding to trade defence lawsuits./.

Dong Thap develops close to 100 community-based tourism sites

Dong Thap province has developed nearly 100 community-based tourism sites to date and become the third-most attractive locality in Vietnam’s Mekong Delta region.

Ngo Quang Tuyen, deputy director of the provincial Department of Culture, Sports and Tourism, said local people have built effective community-based tourism models that have caught the attention of tour operators and helped diversify local tourism products.

Such models have also contributed to increasing the added value of farm produce and creating jobs with stable incomes, he added.

Most of these 100 sites are located in the districts of Lai Vung, Tam Nong, and Thap Muoi, as well as in Cao Lanh and Sa Dec cities.

Deemed “The land of lotuses”, visitors to Dong Thap should not miss a visit to the lotus field eco-tourism site in Thap Muoi district. There were previously only five families providing tourism services at the site, but their number now counts in the dozens and an average of 10,000 visitors come to admire the fields every month. During peak tourism times, the number of visitors can exceed a thousand a day.

Meanwhile, Tam Nong district, which is famous for its Tram Chim National Park – a Ramsar wetlands site of international importance – is home to about 30 lodging facilities and two eco-tourism sites and welcomes approximately 100,000 holidaymakers annually.

The rich and diverse agriculture for which Dong Thap is known gives it advantages in terms of community-based tourism.

Local agro-tourism sites cover between 5,000 and 10,000 sq m on average and cater to up to 1,000 visitors a day. Total revenue in the 2016-2020 period stood at more than 43 billion VND (1.86 million USD)./.

Disbursement of FDI projects increases by 2% over two-month period

The disbursement of foreign direct investment (FDI) witnessed a positive annual increase of 2% to approximately US$2.5 billion during the first two months of the year, according to figures released by the Ministry of Planning and Investment.

As of February 20, the total newly registered and adjusted capital and the value of capital contributions, and shares purchases made by foreign financiers reached US$5.46 billion, equivalent to 84.4% in comparison to the same period from last year.

February saw the country grant investment licenses to 126 new projects worth US$3.31 billion, a decline of 33.9% from the same period last year.

Most notably, a total of 115 existing projects registered to adjust their capital, marking a 2.5-fold increase compared to the corresponding period from last year, with total additional registered capital reaching US$1.61 billion.

Furthermore, the value of capital contributions and shares purchases by foreign investors dropped to US$543.1 million, a drop of 34.4 % compared to last year’s corresponding period.

Foreign financiers have invested in 17 local industries, of which the processing and manufacturing sectors took the lead with total investment capital reaching more than US$3billion, accounting for 55.7% of overall registered investment capital.

Moreover, electricity generation and distribution ranked second with total investment capital of US$1.44 billion, making up 26.5% of total registered investment capital, followed by real estate, along with science and technology.

Japan tops the list of the 46 countries and territories currently investing in the nation with total investment capital of US$1.64 billion, holding approximately 30% of the country’s FDI, trailed by Singapore, the Republic of Korea, China, Hong Kong (China), and the United States.

Can Tho represents the most attractive location among 43 provinces and cities after receiving US$1.31 billion in FDI, constituting for 24.1% of the overall, followed by Hai Phong, Bac Giang, Binh Duong, Tay Ninh, and Ho Chi Minh City.

Coffee industry seeks to weather COVID-19 crisis

In the face of the COVID-19 pandemic, local coffee firms have devised a long-term strategic vision, changed their business mindset, and invested in processing technology in an effort to increase the added value of coffee beans.

Since Vietnam joined the International Coffee Organization (ICO), the coffee industry has experienced three crises, with the first occurring in 1991 when the ICO removed the quota system, causing the price of Arabica coffee to drop from US$4,000 per tonne to US$3,000 per tonne.

The second happened in 2000 when the price of Robusta coffee dropped to US$400 per tonne, and the third took place last year when the price fell by between US$1,300 and US$1,400.

Addressing this thorny issue, almost all coffee businesses have participated in e-commerce trading platforms, marketing the products in London and New York. Private firms have also moved to swiftly set up websites in order to sell their coffee products online, with on-demand home delivery services witnessing rapid growth.

Aside from serving customers at coffee shops, take-away services have also been added to allow customers to increase the efficiency of doing business whilst simultaneously ensuring COVID-19 preventive measures are in place.

Several businesses have also invested in processing roasted, ground, and instant coffee as a means of catering to consumers’ diverse tastes. They have taken advantage of opportunities in exporting coffee beans to markets that the country has signed free trade agreements with.

Besides foreign firms such as Nestle, Olam, Ca phe Ngon, and Tata, several Vietnamese enterprises including Tin Nghia Corporation, Intimex Group, An Thai Company, and Viet My Company have poured capital into intensive processing by building instant coffee factories with popular names.

Most notably, small roasting facilities that specialise in processing specialty coffee for a chain of between 10 and 20 coffee shops by using coffee machines have also witnessed rapid growth.

Furthermore, Trung Nguyen Legend has recently launched its official brand store on Amazon, marking an important step toward bringing local coffee to the world via e-commerce platforms.

With regards to this strategic move, a representative of Trung Nguyen Legend says despite initial encouraging results, there remains a long journey ahead for the group as it attempts to popularize its brand globally, adding that e-commerce channels will develop further in line with consumer trends.

Despite an array of challenges facing the global economy caused by COVID-19, the coffee industry aims to expand markets, participate in supermarket chains in foreign countries to distribute processed coffee, and accelerate the sale of coffee through the e-commerce system.

The industry will boost consumption of coffee products within the domestic market and maintain its position as the world’s second largest coffee producer and exporter, whilst increasing the added value of coffee beans and stabilising the lives of 640,000 coffee growing households nationwide.

Binh Duong firms face recruitment difficulties

Many firms in Binh Duong Province are facing difficulties in finding workers after the Tet Holiday.

It’s estimated that 611 firms in Binh Duong need nearly 71,300 employees, 20,000 more than last year. Over 85% of the firms with trade unions have resumed work and 716,000 out of 774,000 employees have returned to work.

Firms at VSIP Industrial Park want to recruit 20,000 new employees and firms at Ben Cat Industrial Park are in need of 10,000 employees. Dozens of firms have contacted the Labour Confederation of Binh Duong and communal authorities to ask for help.

Firms in major cities like Di An, Thuan An and Thu Dau Mot cities can find new employees more easily while it’s a struggle for firms in remote areas like Bac Tan Uyen or Bau Bang districts. Firms in Binh Duong also face tough competition with firms in nearby cities and provinces. The average wages and bonuses in Binh Duong are considered lower than in HCM City and Dong Nai Province. Moreover, many people still don’t want to go to work yet due to the ongoing outbreak.

Nguyen Hai Dinh from Son La Province said, “I have done some research and realised that the minimum wages are basically the same in all companies so the question is which one has better treatment and bonuses. This is the first time I go to Binh Duong to work so I’m in the dark.”

Binh Duong Department of Labour, Invalids and Social Affairs has asked the Employment Service Centre to provide more information both offline and online, contact provinces with a labour source and consult firms about better wages and bonuses to attract employees.

Vocational schools, colleges and universities were asked to help with job introduction. Meanwhile, firms were asked to send HR employees to go find new employees in other regions with the trade unions or ask their own employees to introduce new people.

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

Party Central Committee plenum completes preparations for 13th Congress

The 15th plenum of the Party Central Committee took place on January 16-17 with the completion of all the contents of its agenda.

At the plenum, the last of the 12th tenure, the Committee discussed and passed the lists of first-time nominees and the special cases to the Committee of the coming 13th tenure, as well as that of the nominees to the key leading positions of the Party and the State, among others.

The Committee also adopted reports from the Politburo on the nominees to the presidium, the secretariat and the eligibility verification board on the delegates of the coming 13th Congress, which is scheduled to start on January 25.

Top leader holds phone talks with new Secretary General of Lao People’s Revolutionary Party

Party General Secretary and State President Nguyen Phu Trong (Photo: VNA)

Party General Secretary and State President Nguyen Phu Trong held phone talks with newly-elected General Secretary of the Lao People’s Revolutionary Party (LPRP) Central Committee Thongloun Sisoulith.

During the talks, Party leader Trong congratulated the LPRP on the successful organisation of the 11th National Congress and Sisoulith on his election to the Party General Secretary post.

He expressed his hope that under the leadership of the LPRP and General Secretary Sisoulith, the Lao people will gain greater achievements in the national building and defence and renewal cause.

Sisoulith, in turn, thanked Vietnamese leaders for sending congratulatory messages to the LPRP and him, and briefed Trong on the outcomes of the just-ended 11th National Party Congress of Laos.

Programme calls for help to the poor

A programme was held in Hanoi by the Vietnam Red Cross (VRC) calling for help for the poor and the victims of Agent Orange as the Lunar New Year, the most important annual festival for Vietnamese, approaches.

At the event, National Assembly Chairwoman Nguyen Thi Kim Ngan has called on the community to continue upholding and expanding the fine tradition of mutual support among the Vietnamese community so as to ease the difficulties facing the poor and victims of calamities.

Winners of National Press Awards on Party building honoured

PM Nguyen Xuan Phuc (right most) and Chairwoman of National Assembly Nguyen Thi Kim Ngan (second from left) present special prize to the authors of the documentary series “Vietnam in the Ho Chi Minh Era – A Televisual Annals”. (Photo: NDO)

The 90-epidesode documentary series “Vietnam in the Ho Chi Minh Era – A Televisual Annals”, developed by Nhan Dan (People) Newspaper, won the special prize of the fifth National Press Awards on Party building, called “Bua Liem Vang” (Golden Hammer & Sickle).

The jury also presented five A prizes, 10 B prizes, 16 C prizes and 27 consolidation prizes.

The organising board received 1,710 entries in various genres that reflected issues of public concern last year, such as preparations for and the organisation of all-level Party congresses in the run up to the 13th National Party Congress.

CIEM issues two scenarios for economic growth for 2021

The Central Institute for Economic Management (CIEM) introduced two scenarios for Vietnam’s economic growth in 2021 during a seminar held by the CIEM and the Australia Supports Economic Reform in Vietnam (Aus4Reform) in Hanoi.

Accordingly, Vietnam could achieve a growth rate of 5.98 percent in the first scenario and 6.46 percent in the second scenario. The average inflation was estimated at 3.51 percent and 3.78 percent, respectively.

Winners of 2020 Golden Apricot Blossom Awards honoured

Winners of 2020 Golden Apricot Blossom Awards honoured

Winners of the 2020 Golden Apricot Blossom Awards were honoured at a ceremony held by Nguoi Lao Dong (Labourer) Newspaper at Ho Chi Minh City Opera House.

Trinh Tran Phuong Tuan, commonly known by his stage name Jack, and Vu Cat Tuong were named the Favourite Male and Female Singers, respectively, while Phuong Anh was awarded the ‘Favourite Country Singer’ title. The ‘Favourite Band’ prize went to Da LAB.

The organising board also presented many other awards including ‘Favourite Male Stage Artist’, ‘Favourite Female Stage Artist’, ‘Best Comedy Actor’, ‘Favourite Actor and Actress’, ‘Favourite Master of Ceremonies’, ‘For the Sake of Community’, ‘Favourite Stage Play’, ‘Favourite Movie’, and ‘Favourite TV programme’.

National Travel Forum opens

The National Travel Forum officially opened at Flamingo Cat Ba Beach Resort, Cat Ba Island, Cat Hai District, Hai Phong Province.

At the forum, delegates attended two discussion sessions on the topics of “Vietnam Travel – Solution 2021” and “Vietnam Travel towards the Future”.

At the event, many cooperation agreements between the Vietnam Tourism Association and the People’s Committee of Cat Hai District, between the Ho Chi Minh City Tourism Association and the Da Nang Tourism Association, and between the tourism demand stimulus alliance and Flamingo Holdings, as well as between MICE Vietnam Travel Club and Flamingo Holdings.

During the period, total import-export revenue through border gates in Lao Cai reached over 11 million USD, including 2.4 million USD worth of imports, mainly fertilisers and farm produce, and 8.8 million USD worth of exports, mostly agricultural products.

In 2020, despite the impact of COVID-19, the Border Gate Customs Sub-Department under the Lao Cai Department of Customs completed its “twin targets” by processing customs clearance declarations for 516 businesses with import-export value of over 1 billion USD and ensuring safety from the pandemic.

In 2021, it will closely coordinate with other sectors to speed up administrative reform while exhibiting better performance in e-customs clearance activities to save time and cost, ensuring economic development and COVID-19 prevention and control at the same time./.

Local automobile group exports over 200 units, parts

Automobile producer THACO recently shipped more than 200 Kia vehicles and auto parts to Thailand, Myanmar, Japan, and the Republic of Korea (RoK).

The conglomerate’s largest export consignment to date, made on February 17, comprised of cars, buses and semi-trailers manufactured at its factories at the THACO-Chu Lai Industrial Park in central Quang Nam province.

The exports included 80 Grand Carnival cars to Thailand, the company’s seventh consignment to its partner, Yontrakit, since December 2019.

One hundred and twenty Kia Soluto cars were shipped to Myanmar, the sixth batch to this market.

Kia cars manufactured by THACO are increasingly appreciated by customers in ASEAN countries since their quality is equivalent to those made in the RoK and meets global Kia standards, while their prices are very competitive.

In 2021, THACO plans to export 1,480 automobiles to Thailand and Myanmar, expand exports to other markets, and gradually achieve its goal of becoming a production and export base for Kia Motors cars and spare parts in the ASEAN region.

This is THACO’s first export of semi-trailers to Japan, one of the most challenging markets in the world with stringent quality requirements.

It exported through its Nippon Trex, a leading manufacturer and exporter of semi-trailers in Japan.

Nippon Trex carried out extensive research on and technical discussions about semi-trailer product development in the Japan before appreciating THACO’s capacity and collaborating with it to manufacture and export semi-trailers to the market.

This time THACO also exported buses to Thailand via VOLVO Group’s VOLVO Buses Corporation, one of the world’s biggest manufacturers of large buses.

THACO buses were selected by VOLVO Buses for shipping and distributing in Thailand since they met all requirements in terms of technology, quality, safety, and competitive prices and Thailand’s standards and certification requirements (with respect to design, size, ECE certificates, and others). The company uses over 60 per cent locally made parts.

The shipment kicked off THACO’s plans to export 66 buses to Thailand and South Korea this year.

In addition to cars and semi-trailers, auto parts too were exported to the RoK, including seat covers, gearshift covers, air-conditioning radiators, and specialised vehicle components for Hyundai Santafe. The consignment was worth 200,000 USD.

With the import tax on CBU cars within the ASEAN bloc scrapped since the beginning of 2018, many car assemblers in Vietnam have switched to importing and distributing cars, whereas THACO has been expanding production and increasing the use of local parts to serve its strategy of exporting to Southeast Asia.

This year THACO will continue to export to existing markets Thailand, Myanmar, the Philippines, the US, and Japan and expand to other ASEAN countries, with a total of 2,500 vehicles. It expects to earn 30 million USD from exports of auto parts and other mechanical products.

Exports of large numbers of cars since last year have attested to the fact that cars made in Vietnam can compete in foreign markets, which is gradually helping raise the country’s profile in the global market.

THACO plans to increase exports to ASEAN and enter new markets in Africa, West Asia, South Asia, Australia, and elsewhere./.

Dinh An Economic Zone – driving force for Mekong Delta region

The Dinh An Economic Zone in the Mekong Delta province of Tra Vinh is one of eight coastal key economic zones in Vietnam. With an orientation to develop a multi-sector economic zone associated with sustainable marine economic development, Dinh An has focused on investment to become an economic driving force of the province and the Delta.

Dinh An has attracted nearly 50 projects to date with total investment capital of about 6.7 million USD. It is expected that by 2030 it will contribute up to 80 percent of the provincial budget.

Dinh An also has a strategic position in economic development associated with security and defence. Despite its huge potential, however, investment attraction in the zone is still lower than its potential.

Existing bottlenecks are hindering the Dinh An Economic Zone from becoming a driving force for economic development in Tra Vinh and the Mekong Delta as a whole./.

Conference discusses role of Vietnam in Asia-Europe partnership

A conference has been held in Moscow to discuss the outlook of the Eurasian Economic Union (EAEU) and the role of Vietnam and Belarus in the expansion of the Asia-Europe development space.

Addressing the event, President of the “Asia-Europe House” Association Alexander Makhlaev highlighted the role of Vietnam’s traditional values in the country’s development.

He held that the political stability has paved the way for Vietnam’s economic development.

Meanwhile, Natalya Ivanova, an expert from AV Group, underlined the significance of international business environment in the integration process of each country.

She asserted that the EAEU is creating a new motivation, especially for the strengthening of cooperation among member countries as well as with partners, including Vietnam.

According to Chairman of the Council of Experts of the Eurasian Research Fund Grigory Trofimchuk, Vietnam, a dynamic developing country and a member of many integration mechanisms and international organisations, is working hard to speed up integration process.

Vietnam is the first partner to sign a free trade agreement with the EAEU in 2015, he noted, adding that the union should focus more on partnership with Vietnam as the country is a door to the world.

The official highlighted the dynamism of Vietnamese firms in Russia as well as other countries in the world. However, he said that Vietnam and the EAEU have yet to optimise each other’s advantages and potential, while a number of trade barriers between the two sides are still existing.

He held that both sides should discuss the maintaining of trade defence measures to increase trade in the future, adding the EAEU should show its advantage in the current period when the COVID-19 pandemic is developing complicatedly in the world.

Within the conference’s framework, Trofimchuk introduced his book entitled “Vietnam wings up”, expressing his hope that the book will help Vietnam and Russia become closer together in economy, trade and humanity./.

Investment booms as Soc Trang improves business climate

Soc Trang province’s efforts to improve its business climate is paying off with more and more investors, both domestic and foreign, coming since 2016.

The Mekong Delta province has worked with hundreds of potential investors seeking to invest in areas where the province has strengths like hi-tech agriculture, tourism and wind and solar power.

It approved 116 projects with a total investment of 27.3 trillion VND (1.18 billion USD) in 2016-20, 5.5 times the amount in the previous five years.

Nine of them are FDI projects.

Soc Trang authorities have been making efforts to improve the investment climate and provincial competitiveness by focusing on infrastructure and providing lands for projects.

They are keen on projects that are sustainable and environment-friendly.

Nguyen Thi Thuy Nhi, deputy director of the province’s Department of Natural Resources and the Environment, said her department had been reforming administrative procedures, boosting the province’s competitiveness in terms of attracting investment and business climate.

One key infrastructure project is the upgrade of Tran De deep-water port, which will reduce logistics costs for exports from the Mekong Delta.

The recently approved Chau Doc – Can Tho – Soc Trang highway will connect to the port, aiding goods transportation and improving links with the rest of the country.

The province is also creating a start-up eco-system with development assistance, incubation programmes and sponsorship for creative small and medium-sized businesses.

In the last five years 1,900 new businesses were set up, a 47.2 percent increase from 2011 – 15. Many companies have invested in manufacturing in the An Nghiep Industrial Park, creating tens of thousands of jobs.

In 2021 – 25 Soc Trang seeks to further improve its business climate and competitiveness, focusing on business assistance services, labour training and helping investors start projects smoothly.

There are 3,300 registered businesses in the province with a total charter capital of 33 trillion VND.

Soc Trang’s economy grew by 6.75 percent in 2020./.

Legal move supports realty market development in 2021

According to Ha Quang Hung, deputy head of the Housing and Real Estate Market Management Department under the Ministry of Construction, many policies regulating housing and real estate market growth have been improved and aligned with the current regulatory system on investment, construction, and doing business.

Significantly, the Law on Construction 2020 has been united with the Law on Housing, Law on Real Estate Business, and the Law on Environmental Protection regarding investment proposal approval, investor approval, or developer recognition, creating a healthier and more transparent investment environment while mitigating speculation and price manipulation activities.

“In 2020, despite the impacts of COVID-19, the real estate market still managed fair growth of about 8-11%, if indirect factors like capital, land, and building materials were taken into account,” said Hung.

Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association opined that several revised laws (Law on Investment, Law on Securities Business, and Law on Enterprises) coming into force from January 2021 have bolstered market growth.

“The realty market has undergone the most difficult period and will gradually rebound. Positive legal changes would motivate firms to join the affordable housing and mid-level segments more robustly,” he said.

From another angle, Su Ngoc Khuong, senior director at Savills Vietnam, a leading real estate consultancy firm, noted that the success of the 13th National Party Congress would bring vitality to the whole economy, particularly the real estate, especially in Ho Chi Minh City and Hanoi – Vietnam’s two growth engines.

The new “city in city” urban form of in Ho Chi Minh City is deemed an inspiring breakthrough, whereas in Hanoi transport infrastructure has witnessed noteworthy improvements.

In addition, experts assumed that fiscal and monetary policies in the past decade have proven successful, with well-controlled interest rates.

Nguyen Van Dinh, deputy general secretary of the Vietnam Real Estate Association (VNREA), outlined two scenarios for market development in 2021.

In the first scenario, with the mindset “cash is king” lingering in the first and second quarter of 2021, the market will be full of challenges due to low transaction volumes. COVID-19 will only be contained by the middle or the end of the first quarter with no new infections reported, allowing the market to gradually rebound.

In the second scenario, the pandemic would drag on to be contained no sooner than June. In this scenario difficulties would continue mounting. Accordingly, housing prices in the primary market are expected to shed an average 5% compared to last year, with sales volumes taking a plunge.

For commercial real estate, the lingering pandemic would lower operation efficiency as well as occupancy rates, while resort real estate would remain in “hibernation” the way it was in early 2021.

The latest report by Colliers International Vietnam forecast that more than 4,000 shop houses would be released in the Ho Chi Minh City market in 2021. The birth of Thu Duc City would fuel the development in the city’s northeast. Colliers data also show that products from six projects in Thu Duc, Binh Chanh, and Nha Be districts will enrich supply in the upcoming time.

Businesses urged to capitalise on opportunities to increase exports

Local businesses have been advised to diversify their markets to intensify import and export activities this year, alongside maximising the benefits of free trade agreements (FTAs), restructuring export products, developing stronger brands, whilst grasping market information and changes in the policies of importers, according to insiders.

With an impressive trade surplus of over US$19 billion last year, the industry and trade sector aims to increase the total export turnover for this year by between 4% and 5%, with the country’s trade surplus anticipated to maintain its momentum.

Despite this, Vietnamese exports this year are largely dependent on the prospects of the global economy, particularly if the novel coronavirus (COVID-19) pandemic can be brought under control.

With regard to the export situation in the year ahead, Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), said textile and garment exports this year will continue to face numerous difficulties ahead in the post-pandemic period. In line with this, Vietnam is likely to export goods worth between US$37 billion and US$38 billion providing that the pandemic is brought under control globally.

Giang pointed out that over the long-run, the Vietnamese garment and textile sector will continue to encounter challenges over the subsequent three years, noting that exports to major markets gradually return to a normal state once the pandemic is successfully curbed by the end of the third quarter of 2023.

He emphasised that new-generation FTAs, especially the EU-Vietnam Free Trade Agreement (EVFTA), the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) can be expected to boost exports moving forward.

Experts have therefore attributed these difficulties to the current low level of market diversification among some agricultural and aquatic products, pointing out that although several products enjoy a tariff reduction of 0%, a number of domestic agricultural products have been not been allowed to gain entry into some markets.

Furthermore, despite the proportion of the FDI sector’s export value decreasing in recent years, it accounts for over 64% of the country’s total export value. This is due to the sector’s production and export activities being largely dependent on regional and global supply chains.

Moreover, the impact of the rising trend of protectionism, trade conflicts, and complicated developments of the COVID-19 pandemic globally have changed the structure of global supply chains, with several countries, especially the United States and western nations, strengthening trade protectionism measures.

Phan Thi Thanh Xuan, vice president and General Secretary of the Vietnam Leather, Footwear and Handbag Association, revealed that the leather and footwear sector has made the best use of the EVFTA, adding that the industry’s exports are poised to grow by between 15% and 20% this year if the COVID-19 epidemic is successfully contained.

Xuan underlined the need to devise stronger policies aimed at accelerating the development of the local supporting industry so it can independently produce raw materials and avoid a heavy reliance on imports.

In an effort to maintain the export growth in the year ahead, the Ministry of Industry and Trade is expected to help businesses take full advantage of opportunities from FTAs by removing barriers for market expansion and keeping a close watch on the developments of the COVID-19 pandemic in order to take timely response measures.

She pointed out that new generation FTAs ​​such as the CPTPP and the EVFTA are expected to provide fresh impetus to export growth over the coming year thanks to tariff incentives, adding that the shift in FDI investment flow from regional countries to the nation, along with the restructuring of supply chains, will also contribute to boosting exports this year.

Key solutions that can promote import and export activities moving forward will largely focus on diversifying markets, maximising the benefits from relevant FTAs​, restructuring export products, developing brands, whilst grasping market information and changes in policies of importers, Xuan noted.

Deputy Minister of Foreign Affairs Le Hoai Trung also underscored the importance of opportunities brought about by FTAs while urging the local ecnonomy to improve its autonomy to prepare for any worse-case scenarios and utilising the system of commercial counselors to perform tasks in line with these changes.

Minister of Industry and Trade and deputy head of the Party Central Committee’s Economic Commission Tran Tuan Anh, said there will be a positive outlook for the country in the years ahead thanks to favourable conditions from integration strategies and the enforcement of FTAs.

In addition, the Government’s schemes on economic restructuring, social security, reforms, open-door policies, and efforts to fine tune the legal system will also be beneficial.

Domestic food and beverage industry has development potential

The domestic food and beverage market has great potential for development despite the difficulties caused by the COVID-19 pandemic, according to experts.

Hanoi – The domestic food and beverage market has great potential for development despite the difficulties caused by the COVID-19 pandemic, according to experts.

Food and beverages are in the fast-moving consumer goods (FMCG) category. For many years, this has always been one of the important economic sectors with great potential for development, according to the Vietnam Report 2020.

The food and beverage market’s growth rate is forecasted to reach from 5-6 percent annually in 2020-2025.

Despite suffering negative impacts from the COVID-19 pandemic, the food and beverage industry in Vietnam also has many strong growth opportunities. At present, more and more consumers pay attention to nutritional foods of plant origin, organic foods or food with healthy ingredients.

A survey conducted by Vietnam Report at the end of 2020 showed due to COVID-19, half of customers have spent more on foods boosting their immune system and clean foods. Meanwhile, 63.7 percent of customers have cut spending on alcohol and beer. Therefore, businesses in this industry must adjust their production to suit demand.

Food businesses have to increase their production capacity by about 30 percent, while beverage businesses must reduce their production to lower than 80 percent compared to before the pandemic.

Besides that, Vu Dang Vinh, general director of the Vietnam Assessment Report Joint Stock Company, said COVID-19 has forced nearly 70 percent of food and beverage businesses to focus on the digital transformation for survival and development, reported the Vietnam News Agency.

Many businesses have built modern technology processes in production and management. Food and beverage companies have also sped up investment activities to renovate the distribution system and adjust the proportion between traditional and modern trading channels. They develop applications to enhance the customer experience when shopping and innovate packaging design, eco-branding and product line development.

Nguyen Dang Quang, chairman of Masan Group, said the COVID-19 pandemic is a good opportunity to promote e-commerce.

The group is building plans to attract more and more people to online shopping, he said.

Vinh said food and beverage businesses need to focus on strategies such as revenue growth, market development, promotion of research and improving product quality. They should also diversify supply sources with priority for domestic suppliers and develop online distribution channels on e-commerce platforms.

According to experts in the food and beverage industry, the stable macroeconomy and commitments in free trade agreements signed between Vietnam and its partners such as the European Union-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) would bring export opportunities and more foreign investment. They would promote the transfer of technology and technological advancement in the industry.

Along with that, the food and beverage companies need to improve their competitiveness and increase investment in infrastructure systems and modernisation of production processes and corporate governance.

Foreign investors divest Ninh Van Bay due to bleak performance

Two foreign investors, namely Recapital Investments Pte., Ltd and Belton Investments Ltd., decided to divest Ninh Van Bay Travel Real Estate JSC, the developer of Six Senses Ninh Van Bay Resort in Nha Trang.

Notably, Recapital Investments Pte., Ltd. issued an announcement to sell 10.7 million shares at Ninh Van Bay Travel Real Estate to decrease its ownership from 11.9 per cent to zero. Recapital Investments is an investment fund owned by Rosan P. Roeslani, the former president of Inter Milan football club.

Besides, Belton Investments Ltd. has also registered to sell its entire 6.4 million shares, equaling 7.07 per cent of the stake, in this company. The sale is expected to be completed between February 5 and March 1.

Previously, in 2013 Recapital Investments bought 30 million shares at the price of VND7,500 (32.61 US cents) apiece. Belton Investments has been a large shareholder since 2012. However, since 2019, both investors started to decrease their ownership in Ninh Van Bay Travel Real Estate.

The reason for the divestment may be the bleak business results of Ninh Van Bay.

Notably, the company listed its stake on the Ho Chi Minh City Stock Exchange in 2010 with the initial price of VND30,000 ($1.30) apiece, however, the stocks plunged to VND1,000 (4.35 US cents) apiece in 2017. Besides, the company suffered a loss of VND479 billion ($20.83 million).

After two years of restructuring, the company reported a profit of VND27 billion ($1.17 million) in 2019, more than 13 times the figure of VND2 billion ($86,960) in 2018. In 2020, the company acquired VND211 billion ($9.17 million) in net revenue, down 24 per cent on-year. The main reason for this bleak business result came from the impact of the COVID-19 pandemic.

At present, Ninh Van Bay stocks are traded at VND5,680 (24.70 US cents), rising 22 per cent over the past three months.

Upbeat export-import picture in early 2021

Many of Vietnam’s growth engines have posted impressive export-import performance, with Ho Chi Minh City, Bac Ninh, and Binh Duong being the top performers.

The latest statistics from the Vietnam General Department of Customs show that the country raked in $55 billion in total export-import turnover in the first month of 2021, a 48 per cent jump on-year.

Many localities have posted fairly impressive growth in their export import value compared to the corresponding period in 2020 despite the impacts of the recent COVID-19 reemergence.

Leading the list is Ho Chi Minh City which counted $8.9 billion in total export-import value, followed by Bac Ninh with $7.7 billion, Binh Duong with $5 billion, Thai Nguyen with $4.4 billion, and Hanoi with $3.8 billion.

Many localities have posted fairly impressive growth in their export import value compared to the corresponding period in 2020 despite the impacts of the recent COVID-19 reemergence.

This is an impressive performance as Hai Duong needs to ramp up efforts to carry out the dual target of preventing and curing COVID-19, while still ensuring socio-economic development.

Last year, the province attracted nearly $7.76 billion in total export value and more than $6 billion in total import value, and carved out a place among the localities with biggest export-import value in the northern region.

Quang Ninh, Lao Cai, and Lang Son (the major export players) have increased business even during the Lunar New Year holiday. For instance, on the first three days of the new year, the Lao Cai International Border Gate’s Customs Bureau had completed customs clearance for 4,000 tonnes of export-import goods valued at more than $2 million.

In Ho Chi Minh City, right on the eve of the Lunar New Year, Saigon New Port Corporation conducted a ceremony to receive goods marking the New Year of the Ox.

In 2020, the cargo volume calling on Ho Chi Minh City’s Cat Lai port rose 8.2 per cent, making it one of the top performers worldwide in cargo throughput volume. This year, the cargo volume through Cat Lai port is expected to surge 5 per cent.

More than 7,000 tonnes of goods passed through each day Mong Cai International Border Gate Customs Bureau under Quang Ninh Customs Department during the Lunar New Year holiday.

The Ministry of Industry and Trade forecast that export business would maintain its growth momentum in February, especially in localities hosting the manufacturing complexes of South Korean tech giant Samsung Group, leveraging the proliferation from January 2021. The exports of handsets and accessories could lift up, capitalising on Samsung’s fresh roll-out of new items such as Samsung Galaxy S21, Samsung Galaxy S21 Plus, and Samsung Galaxy S21 Ultra.

Larger frame of mind for logistics

Throughout more than three decades of economic reform, Vietnamese companies from many sectors have been venturing abroad and become role models. Yet, the logistics sector remains too focused on the domestic market. Tran Thanh Hai, deputy director of the Ministry of Industry and Trade’s Agency of Foreign Trade, emphasised that local players should follow regional examples and take their business to international arena.

In this context, logistics activities were affected significantly, with railways, roads, and air transport being the most heavily affected, while waterways and warehouses remained largely unscathed and even saw growing business due to rising inventory.

Different from five years ago, logistics have been given due attention by all state levels, as shown in the directive documents of the government, ministries, and branches, that all considered logistics a crucial aspect of the economy. From there, policy changes and significant investments in infrastructure could be accomplished, along with the easing of administrative procedures for businesses in this sector.

However, one of the current challenges is the lack of large-scale Vietnamese enterprises with influence in the logistics industry, while large foreign-invested enterprises (FIEs) such as FedEx, UPS, and DHL from the United States and Europe dominating the country’s logistics sector.

In Vietnam, telecom, real estate, and manufacturing enterprises have built outstanding businesses that drive their respective industries. Within the logistics sphere, however, there is no such role model.

Companies like Saigon Newport, Gemadept JSC, Transimex JSC, and Sotrans Co., Ltd. are contributing their share but can hardly be called outstanding yet. The general picture of today’s businesses is stiffening, with competing FIEs operating in Vietnam, while those from other countries are integrating into global markets.

Additionally, the domestic logistics sector remains rather small with limited international operations, while this industry is really about going global and partaking in imports and exports. So far, the number of Vietnamese enterprises operating in foreign markets is also small, with even the bigger names not providing services to foreign markets. In the era of global integration, we must go to the world to develop, and thus this remains the Achilles heel of the domestic industry. Moreover, weak links with other service providers elsewhere have not been established and utilised sufficiently. Although Vietnamese manufacturers have been able to export goods to Europe in large volumes, there is no logistical presence of local companies.

As such, logistics groups stop all operations at Vietnam’s gates, after selling and delivering goods to customers, resulting in low added value and a lack of competitiveness against foreign counterparts.

Against this backdrop, the largest difficulties relate not to capital but to the awareness of Vietnamese entrepreneurs, who are typically shy in new environments, especially when confronting foreigners. Many businesses dare to run their operations but mostly focus on the domestic market as they feel that doing business in their own country is easier. Problems here can be handled the familiar Vietnamese way, while they would have to follow foreign rules outside and establish new personal networks and relations. Within the current logistics community, FIEs and state-owned enterprises are relatively stable, but the private sector consists mainly of small-scale businesses, with some newly established or separated from others.

In Vietnam, the number of FIEs is increasing constantly, with nearly 40 multinational corporations and many smaller ones present in the market. However, companies from Japan and South Korea are very ethnocentric and prefer to use the services of their country’s enterprises, which support and protect each other. Meanwhile, European and American businesses are somewhat more open-minded. They use traditional services but do not pay much attention to their partners’ country of origin. Multinationals have financial advantages, so it is easier for them to establish a foundation and attract high-quality human resources than it is for domestic ones. They also make great use of experienced CEOs.

The great advantage of FIEs is their cooperative relationship with partners worldwide. From these relationships, they provide most of the services requested by manufacturers at competitive prices. The service quality of these enterprises is often at a higher level than that of domestic ones, reflected in their professionalism, the assurance of standardised service quality, and strict rules and norms, which provide credibility for these businesses.

Those businesses also pay special attention to customer care and focus on the long-term benefits, instead of immediate returns. Therefore, at some stages, they even accept losses to win customers’ sympathy and build a reputation. Meanwhile, some Vietnamese businesses follow a fast-paced approach that aims for quick profits rather than long-term relationships and market presence. Such a mentality will also not pay attention to quality.

Models to follow

With a growth rate of 12-14 per cent per year, Vietnam’s logistics sector is growing, albeit merely gradually. It may take another 5-10 years to see strong differences today. As this speed remains slow, Vietnam’s logistics needs to go faster to avoid lagging behind other countries.

Up to now, Vietnam’s logistics growth has mainly relied on the scale of commodity production, consumption, and import-export, which are natural factors for growth advantages. However, these are not intrinsic factors of the logistics sector, they are just objective ones.

If one of these factors changes – such as COVID-19, natural disasters, and the declining domestic demand – the sector’s growth will suffer if it is not well established in foreign markets.

Thus, Vietnamese groups need to step out of their comfort zone, adapt quickly, and avoid thinking of themselves as small and inferior. Small does not mean weak.

At present, Vietnamese enterprises focus only on the domestic market, and give little thought to venturing abroad. Meanwhile, I am confident that Vietnam’s logistics can provide decent services to the regional market, such as Laos, Cambodia, and Thailand – all of which are close by and of similar development levels. Vietnam already has top enterprises in leather, footwear, steel, and automobiles. Thus, the logistics sector can build on their experience and develop leading groups from those sectors.

Singapore can also be a good example for Vietnam. Its government was determined to put all its advantages into developing the logistics sector and to turn Singapore into the largest transshipment port in the world. To do that, Singapore has largely sacrificed marine tourism. Nowadays, the island nation is housing some of the leading enterprises in logistics fields. It boasts PSA Co., Ltd., the world’s largest port operator, which also has a joint venture in Vietnam’s Cai Mep port complex in the south.

In the aviation industry, it has Singapore Airlines – a 5-star airline which for many years maintained its position as the world’s leading airline. Before the pandemic hit, Changi Airport was consistently one of the busiest airports in the world.

Another model is Taiwan, which has strong logistics development. Of course, there are also more developed economies like Japan or Germany whose level of development is already at a much higher level. The country needs it, the government needs it, and the businesses that want to grow strong also need to be bold and venture abroad with an outward-looking spirit. Vietnam opened its doors to global integration 35 years ago, but it is now up to businesses to step out or not. The government alone cannot do this.

Vietnam’s mobile devices reached the export value of $51 billion last year

Mobile devices and components produced in Vietnam last year were exported to 50 markets and reached the export value of more than $51.18 billion, according to the latest data published by the General Department of Vietnam Customs.

In comparison with 2019, export value was slightly down 0.4 per cent. Nevertheless, it is still one of the Vietnamese economy’s main sectors by occupying nearly one-fifth (18 per cent) of the export value.

China remained the largest consumption market for the goods category with $12.34 billion, making up 24 per cent of Vietnam’s export turnover from mobile phones, and up 48.8 per cent on-year. Europe was the second-largest export market with a turnover of $9.9 billion, up 18.9 per cent on-year.

The runners-up were the US, South Korea, and the United Arab Emirates with $8.79 billion, $4.58 billion, and $2.53 billion. In addition to China, other markets like Hong Kong, Canada, and Japan last year increased their purchasing of mobile devices and components from Vietnam by 44.14 per cent to $1.73 billion, 34.3 per cent to $826.23 million, and 16.5 per cent to $937.75 million, respectively.

2020 is the first year Vietnam has seen a plunge in the export turnover of mobile devices and components. Over the previous 10 years, the sector has been going from record to record, even recording triple-digit growth in a few years like in 2011 when it hit 178.3 per cent.

Thanks to that, mobile devices and components exceeded garment and footwear production to become the sector with the largest export value for Vietnam, mainly driven by foreign-invested enterprises, lead by Samsung. To date, about 60 per cent of the South Korean giant’s items are produced in Vietnam.

Impetus for rubber suppliers to bounce back even higher

Although expectations for an increase in rubber prices remain low, the recent spikes have left rubber growers in Vietnam less worried. Nevertheless, to cash in on the recovering carmakers and other industries after the pandemic, as well as compete with regional rivals, local latex gatherers may need to step up their game and apply for official certificates.

More than an hour’s drive from Pleiku, the capital of the Central Highlands province of Gia Lai, small roads are running through immense rubber forests. The town of Ia Kha is crowded with more than 8,000 people, but unlike in the past, these people are less occupied with farming than before.

Ro Mah Kiu, a worker in the 15 Corporation at 74 Company, often wakes up at 3am to scrape latex. When he was still farming, he lacked the necessary skills, often left behind a wasteland, and struggled all year round. As his life remained difficult, Kiu became worried about his future.

Eventually, he joined 74 Company’s local farmer support group to focus on latex extraction. But it was not easy to become a latex farmer. Proper care for mature rubber trees is tricky and learning the right technique for extracting the latex from the tree even more so.

The pandemic caused a scarcity in labourers and made it difficult to gather and process latex. Colonel Hoang Van Sy, commander of the 15 Corporation, told VIR, “The recruitment of new workers is cumbersome. Workers lost their jobs in other industries and returned to their localities in huge numbers, but after being recruited for latex exploitation, it always takes a lot of time training for them to become skilled enough for the job.”

In addition, between 2018 and 2019, the corps saw nearly 3,000 workers reaching retirement age, leaving a hole in the corps’ workforce that has yet to be filled.

Unlike in many other sectors, workers in the rubber industry are not just dependent on markets but also the weather, which sometimes leads to heavy impacts on price calculation.

“We are forced to cut input costs to a minimum, from over VND50 million ($2,175) per tonne of latex to VND32 million ($1,400) to reduce the pressure on prices,” Sy said.

The long chain of declining prices in the rubber sector had lasted for nearly 10 years, with few people thinking they would ever bounce back. However, in the last months of 2020, rubber prices at the Osaka exchange – the reference for the natural rubber market in Europe and Asia – experienced nine consecutive gains. On October 28, the most-traded April 2020 futures contract increased by ¥20 (19 US cents, equalling 7.9 per cent) to ¥274.3 ($2.65) per kilogramme, the highest closing price since March 2017. The increase in this session was also the highest since the end of 2008.

Reversing prices for rubber can be easily envisioned in a period of economic development, but with 2020, a year of stagnation and economic decline amid the pandemic, market interference from the Chinese market becomes more apparent. Statistics of the Chinese Customs Department said that in the first 11 months of 2020, China’s rubber imports reached $9.76 billion, up 4.5 per cent compared to the same period in 2019.

The staggering market recovery can also be explained by the fact that rubber production in China last year dropped by 30 per cent on-year, due to massive storms on Hainan Island and droughts in Yunnan province.

China has seen a significant increase in imports with only a gradual decrease in consumption. The 11-month data of Vietnam’s Ministry of Industry and Trade shows that China spent $4.34 billion, up 35.2 per cent over the same period in 2019, for the import of a popular mixture of natural and synthetic rubber.

Meanwhile, the Chinese auto industry – one of the key sectors for rubber consumption – remained on a downturn due to the global health crisis. Although the situation is slowly improving, the China Association of Automobile Manufacturers estimates that sales in 2020 dropped by 10 per cent, much lower than forecast.

The ability for rubber prices to recover globally stands in stark contrast to the decrease in supply. The Association of Natural Rubber Producing Countries (ANRPC) predicts that in 2021, global rubber production could recover to around 13.7 million tonnes, an increase of 8.6 per cent compared to last year. However, even with this increase, 2021’s production would still be lower than that of 2019 and 2018, with about 13.8 million tonnes.

Rubber production across Southeast Asia, which accounts for two-thirds of global natural rubber supply, has been severely affected by labour shortages due to the pandemic, natural disasters, and other disadvantages. The demand-supply gap is widening, while rubber traders fear the supply shortage will be further exacerbated by the continuing political instability in Thailand and the uncontrolled pandemic.

According to the ANRPC, 2020’s production decreased by about 6.8 per cent compared to 2019, to 12.9 million tonnes, mainly due to the decline in Thailand and India, of which Thailand’s output decreased by about 332,000 tonnes. This corresponds to the forecast of the Rubber Authority of Thailand on last year’s production, which was already estimated to be about 10 per cent lower due to the constant rains in the south of the country.

In Vietnam, the trend of decreasing latex plantation areas is also apparent at some large suppliers.

Dong Nai Rubber Co., Ltd., which had specialised in natural rubber supply, has started its plan to reduce 40-50 per cent of its exploitation and preliminary processing by 2025 to switch into fields with higher margins. According to Do Minh Tuan, general director of Dong Nai Rubber, latex exploitation so far contributed around 70-75 per cent of the company’s revenue. Last year, the firm even recruited 250 more locals as workers but remained unable to make up for the shortage to meet production goals.

Less worried farmers

Although some multilateral deals like the EU-Vietnam Free Trade Agreement have opened a door for exports to grow, Vietnam’s rubber sector has yet to make real use of these opportunities. The EU market has a large demand for high-end rubber, for which Vietnamese producers could provide the input materials. According to statistics from the General Department of Customs, the European market accounted for merely 5.1 per cent of the total export volume of 1.1 million tonnes of rubber within the first nine months of 2020.

Meanwhile, Huynh Tan Sieu, head of technology and environment at the Vietnam Rubber Industry Group, pointed out that local businesses also miss out on the opportunity to further the competitiveness of Vietnamese rubber in the global market by not applying for the FSC forest management certification, which confirms social and environmental characteristics of a company’s operations.

John Heath, commercial director at London-based natural rubber company Corrie MacColl Ltd., said in January that the European market is currently paying much attention to FSC-certified rubber. His company is distributing about 500 tonnes of certified latex to the European market each month, “a very small fraction of the growing demand for FSC-certified rubber in this market,” Heath explained.

In response to growing pressure from civil organisations and consumers, companies take more responsibility for supply chains, and Heath said that Corrie MacColl aims to “do the right thing, so it will not buy rubber from customers who cut primary tropical forests to plant rubber.”

Good products and official forest certifications have enabled 15 Corporation to access markets outside of China, led by the desire to reduce the focus on a single export market. As such, customers from Russia, Sweden, India, and Japan are considering buying the company’s latex and rubber.

However, since costs are currently higher for sourcing from the Central Highlands, “sustainable solutions with mutual benefits have to be agreed on,” said Sy of the 15 Corporation.

He hopes that the output of the 40,000ha will suffice this year to reach the targeted 10-15 per cent increase in revenue and secure the jobs of more than 10,000 workers. In 2020, the corporation banked a gross revenue of over VND1.5 billion ($65.2 million).

Vietnam leading car dealers struggle with Covid-19 impacts

While car prices in 2020 were significantly lower compared to the pre-Covid-19 period, customers had become more cautious in spending, leading to an 8% year-on-year drop in car sales to 296,634 units.

Major car dealers in Vietnam, including Savico, Haxaco and City Auto, posted modest return on sales (ROS) of 1-2% in 2020, mainly due to customers tightening their belt amid a difficult Covid-19 year.

“The pandemic had led to fierce competition in car prices, causing a downturn in the company’s business performance,” stated Savico in its financial statement.

Savico, a distributor of major car brands of Toyota, Volvo, Honda, Mitsubishi, recorded the highest revenue among the three with VND16.13 trillion (US$700.2 million), down 12% year-on-year, and profit of VND224 billion (US$9.72 million), or ROS of 1.38%.

While car prices in 2020 were significantly lower compared to pre-Covid-19 period, customers had become more cautious in spending, leading to an 8% year-on-year drop in car sales to 296,634 units, data from the Vietnam Automobile Manufacturers’ Association (VAMA) noted.

City Auto, a major distributor of Ford and Huyndai, suffered a same fate with a decline of 11% year-on-year in revenue to VND5.67 trillion (US$246.1 million) and net loss of over VND4 billion (US$173,800).

Last year, City Auto predicted a challenging year of 2021 for the automobile industry following a sharp drop in market demand.

In a letter to the Ho Chi Minh City Stock Exchange, City Auto attributed its negative business performance to lower car sales volume.

In contrast, Haxaco, a leading Mercedes-Benz car dealer in Vietnam, recorded a rise of 8% year-on-year in revenue to VND5.57 trillion (US$241.8 million) and after-tax profit of VND125 billion (US$5.42 million), up 150% year-on-year.

A senior official at Haxaco said the firm took advantage of the government’s policy of reducing 50% of the registration fee for domestically-produced cars to boost sales revenue. However, Haxaco’s ROS remained at a modest rate of 2.24%.

A study from SSI Securities Corporation suggested 2021 could start the upward trend of Vietnam’s automobile industry with a 16.3% year-on-year growth rate in terms of car sales number, citing high demand from the domestic market for cars.

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