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LG to use smartphone production line for home appliances

April 21, 2021 by e.vnexpress.net

The company has taken this decision after deciding to withdraw from the smartphone market and failing to find buyers for its production line in the northern port city.

The Yonhap news agency reported Tuesday that the company will complete the transformation within this year and reallocate affected workers. The factory employs more than 16,000 workers at present.

“Exiting smartphone production there is part of LG’s plan to restructure our core product portfolio,” said Jung Hai-jin, president of LG Electronics in Vietnam.

He also affirmed that the shutdown of LG’s smartphone business will not significantly impact LG’s production, business activities or employees in Hai Phong.

LG launched the production line in Hai Phong, around two hours east of Hanoi, in 2015. The plant has been producing home appliances, smartphones and in-vehicle infotainment components.

Earlier, a Business Korea report had said that the tech giant has decided to terminate its loss-making mobile phone production and sales business, but not been able to find buyers for its largest smartphone factory in Hai Phong.

The report mentioned that Vietnamese smartphone makers already have their own facilities and local firms can’t afford to pay the large sum it would take to buy LG’s factory.

However, at a meeting with the Foreign Investment Agency under the Ministry of Investment and Planning last week, LG leaders said the smartphone factory in Hai Phong was still operating normally. It is also building a new 4-hectare factory to produce refrigerators there, it said.

LG’s smartphone division has posted losses of around $4.5 billion over the last five years, according to Reuters . The group has said that dropping out of the fiercely competitive smartphone business would allow it to focus on growth areas such as electric vehicle components and connecting devices.

Five new imported Covid-19 cases raise Vietnam’s tally to 2,806

April 21, 2021 by english.thesaigontimes.vn

Five new imported Covid-19 cases raise Vietnam’s tally to 2,806

The Saigon Times

A returnee makes a health declaration. The Ministry of Health has confirmed five fresh imported Covid-19 cases – PHOTO: VNA

HCMC – The Ministry of Health has confirmed five fresh Covid-19 patients who were quarantined in Khanh Hoa and Danang after their arrival, taking the country’s tally to 2,806 as of tonight, April 21.

The latest cases in Khanh Hoa Province are two women. The residents of Thanh Hoa Province and Haiphong City flew back to Vietnam from Russia through Cam Ranh International Airport on April 18. They tested positive for Covid-19, the disease caused by the coronavirus, on April 20 and are being treated at the Khanh Hoa Hospital for Tropical Diseases.

Three other Covid-19 patients in Danang City reside in Quang Ninh, HCMC and Yen Bai. The three men arrived in Danang International Airport from Japan on April 7. Their positive test results came out on April 20.

Up to now, as many as 2,490 patients have made a full recovery from the disease, while 40 active patients have tested negative for the virus one to three times.

PAPI displays fruits of anti-corruption drive

April 21, 2021 by www.vir.com.vn

PAPI displays fruits of anti-corruption drive. Photo: VGP

At last week’s release of the 2020 Provincial Governance and Public Administration Performance Index (PAPI), Dr. Paul Schuler of the PAPI Research Team said that the 2016-2021 government term saw more improvements in provincial governance and public administration with the strongest improvement in the control of corruption seen in the public sector.

While each of the past five years saw corruption in the public sector better controlled, the past year saw the strongest improvement.

“The result is attributed to the country’s intensified crackdown on corruption since 2016. From the citizen perspective, the anti-corruption campaign driven by the Party seems to have permeated local-level officials,” he added.

Nationwide, the proportion of respondents claiming that bribes are necessary for state employment, public healthcare services, land use rights certificates, fair treatment by primary school teachers, and the granting of construction permits has been declining since 2016.

Regarding the importance of personal connections to gain government positions, the 2020 PAPI report shows a continued decline in this indicator, although it remains high. However, across a range of positions, the number of citizens suggesting that connections were important in hiring is at its lowest since the survey began in 2011.

As many as 18 provinces made significant progress in 2020 in controlling corruption in the public sector. As in previous years, Ben Tre performed well in this vertical, while six provinces experienced significant setbacks, with Ninh Thuan and Ninh Binh seeing the largest declines.

Nine out of the top 10 performers in controlling corruption were central and southern provinces. The top five performers in this indicator were Quang Ninh, Dong Thap, Ben Tre, Quang Tri, and Quang Nam. On the other hand, corruption was reported to be the most rampant in Lam Dong, Haiphong, Khanh Hoa, Ninh Binh, and Kon Tum.

Since 2016, personal relations have become less important in all provinces, implying that local governments have been paying more attention to the fair recruitment of state employees. However, personal relations remain important at the commune level, even among the top performers.

However, citizen feedback on bribery based on respondents’ actual experience of accessing specific public services paints a far less rosy picture. In 2020, more than 32 per cent of respondents said they paid a bribe to obtain a land use right certificate, compared to just over 22 per cent in 2019.

According to Paul Schuler, this divergence between perceptions of and the actual experience with bribes could be due to positive impressions among those who did not pay bribes, which can be ascribed as a result of anti-corruption campaigns. Alternatively, it is possible that the size of bribes has decreased, thereby improving perceptions.

Over the past years, corruption has been an issue of special concern in the business community and the public, and is often on the agenda of business conferences. Experts showed that successful anti-corruption will contribute to improving business confidence in Vietnam’s long-term sustainable development.

Australian Ambassador to Vietnam Robyn Mudie noted, “Findings from the 2020 PAPI report show that there is a correlation between good governance and effective pandemic responses. In other words, good governance matters. Looking ahead, improving governance will prove extremely useful in managing other unexpected emergency situations in Vietnam.”

Of the eight dimensions measured by the index, vertical accountability has also steadily improved during the 2016-2020 term. However, there have been declines in participation at local levels, as well as in public administrative procedures.

While general confidence levels rose, the greatest concerns of locals remained poverty and hunger, economic growth and employment, and health and health insurance.

As in each of the last five years, poverty and hunger remain the issues of greatest concern in 2020, with about 18 per cent of respondents indicating concerns. However, there has been a substantial decline in the percentage of respondents for whom this was a top concern, and this is the lowest number of respondents since 2015 to highlight these areas as their primary concerns.

On the other hand, short-term economic worries emerged, with economic growth and employment two of the top four concerns in 2020. Concerns around health and health insurance also soared, from around 2 per cent in 2019 to 17 per cent in 2020.

In PAPI 2020, 16 cities and provinces were named in the group of the “best”; 16 others were “above average”; 15 were “below average”; and 16 were dubbed the “worst”. The northern province of Quang Ninh gained the highest overall PAPI score while Danang continued to drop. Hanoi and Ho Chi Minh City both ranked at the bottom.

Caitlin Wiesen – Resident representative in Vietnam, UN Development Programme

Since its inception, PAPI has continued to grow and adapt new development priorities. It is now the largest citizen-centric and nationwide policy monitoring tool in Vietnam.

The overall aim of PAPI is to improve the quality of government functions, the responsiveness, transparency, and accountability of public institutions, as well as ensure access to information and quality services. These are aims that also mirror the mission of the UNDP.

2020 has been a turbulent year for the world and for Vietnam. However, after two waves of COVID-19, coupled with unprecedented natural disasters with historic floods in the central region last October, I am delighted to see that PAPI findings are increasingly being used and mentioned in government documents ranging from, the Politburo, ministries, agencies, the National Assembly, and socio-political organisations.

Matti Tervo – Development and Economic counsellor, Embassy of Finland

PAPI gives a good oversight of the governance within cities and provinces across Vietnam. It also shows Vietnam’s progress over the years.

The index shows great efforts to improve, especially the investment environment. Some cities and provinces are more concentrated on this, with some becoming one-stop shops for foreign direct investment (FDI). We can use this data as a baseline for any investment by the Finnish government.

We do not actually have that much FDI, we prefer making direct capital investments into Vietnamese companies. We hope that the market would open up a little more.

We still offer public investment loans to the Vietnamese government and hope the business environment will remain open and in line with international laws, especially now we have a free trade agreement.

By Tung Anh

Medley of factors spur property-buying spree

April 21, 2021 by dtinews.vn

The real estate frenzy across the nation has pushed land prices to record heights, while lenders are taking a vigilant approach. However, tightening real estate loans may not be the magic bullet to rein in buyers.

Commercial banks are more equipped than ever to deal with bubbles that occur in the real estate market, photo Le Toan

In this first quarter, land price rises were experienced across various provinces and cities, in the range of 30-50 per cent. Cities and provinces neighbouring Hanoi and Ho Chi Minh City have witnessed a significant increase, usually up to as much as 50 per cent.

“Low interest rates, an improving domestic economy, the rising popularity of urban lifestyle, and glittering appeal of industrial property as well as potential infrastructure projects have significantly spurred property buying across the nation in the past few years,” explained State Bank of Vietnam’s (SBV) Deputy Governor Dao Minh Tu.

The price hikes from north to south have attracted large amounts of cash flow. As of mid-March, real estate credit increased by 2.13 per cent, higher than the banking sector’s credit growth rate of the whole system (2.04 per cent). However, the SBV noted that real estate credit increased tremendously at a limited number of banks.

Both foreign-invested and local lenders are also trimming their interest rates to cash in on the increasing mortgage demand, illustrated in the cases of Shinhan Bank, UOB, and Standard Chartered. For instance, UOB reduced its rates from 8.7 to 6.49 per cent annually, while Shinhan Bank cut its annual rates from 6.7 to 6.3 per cent.

Some market watchdogs believed that, in the short term, the economic downturn has pushed investment capital flows out of manufacturing, tourism, and services sectors, which could find their way to the real estate industry. In the long run, real estate will be consistently placed high on the investment portfolio of individual and institutional investors, as its glitter of offering physical shelter and value stand the test of time.

Deputy Governor Tu of the SBV noted that the central bank has kept a firm hand on capital flows into the real estate sector due to their risky nature. Accordingly, credit pouring into the real estate sector has been gradually reduced during the last three years, especially in 2020 due to the pandemic. This ratio had grown by 11.89 per cent, compared to 26 and 28 per cent in 2018 and 2019, respectively.

In the first three months of this year, credit had grown by 3 per cent against the end of 2020, nearly equal to the normal ratio of 2.93 per cent in general.

“The figures show that the SBV is keeping a tight grip on the real estate loans, especially the flow into the high-end and hospitality segment,” Tu said.

Specifically, the central bank has set limits and safety ratios in banking operations to gradually reduce the ratio of short-term capital reserved for medium- and long-term loans and apply higher risk ratios for the loans of high value house buyers, aiming to direct credit flows into medium- and low-cost and social housing which are in major need of the end-users.

On the same note, commercial lenders are also taking a cautious approach to the real estate sector.

According to Nguyen Dinh Tung, general director of OCB Bank, when granting credit quotas to lenders, the SBV also guides the orientation of pouring capital into five priority areas. The portfolio of loans for securities and real estate, which are considered as risky sectors, has been strictly curbed accordingly.

Nguyen Hoang Linh, general director of MSB, said that by the end of the first quarter of 2021, the bank’s real estate loan proportion was only about 11 per cent of its total outstanding loans, much lower than 21 per cent in 2019.

Nguyen Thanh Do, vice chairman of HDBank’s board, stated that the real estate loans account for around 19 per cent of the total outstanding loans of the whole economy.

“Commercial banks are now becoming well-equipped to make it through the real estate bubble. Besides the SBV’s tightening regulations in this regard, each lender should implement its own legal corridor to set a loan ceiling ratio in this risky sector, which is in line with its financial health,” Do suggested.

Notwithstanding, the credit on the real estate market is not the main reason for the land price hike, and the stricter tightening of real estate credit cannot halt the increasing price, cited the SBV.

Even credit has increased slightly again, and not signalled any abnormal signs. Amid the turmoil of the real estate market in 2011-2012, credit for the real estate sector accounted for 40 per cent of the total outstanding loans of the whole system.

“Real estate-linked credit is not a major foundation for the land price hike. Real estate-related firms are hunting for more cash through various channels, such as corporate bonds, remittances, foreign direct investment, and mergers and acquisitions,” said Deputy Governor Tu.

Nguyen Tu Anh, general director of the Department of Economics Affairs at the Party Central Committee’s Economic Commission noted, “The main reason for the land price hike stems from the announcement of future plans for infrastructure, industrial parks, and new construction. Thus, tightening real estate credit would not be the magic pill to stop the feverish excitement in land.”

Navy’s chief receives Japanese Ambassador to Vietnam

April 21, 2021 by en.qdnd.vn

At the reception, the Japanese ambassador thanked Rear Admiral Nghiem for warmly welcoming the Japanese delegation, highlighting that Japan always considers Vietnam an important strategic partner, especially in recent years when the relationship between the two countries has been expanded in many fields.

He also affirmed that the two countries have enjoyed fruitful results of naval cooperation over the past time. The Vietnam People’s Navy created favorable conditions for port calls to Vietnam by Japanese naval ships. He hoped that the bilateral ties would be further expanded in the coming time.

For his part, Rear Admiral Nghiem recalled milestones in the friendship and cooperation between the two governments, militaries, and navies over the past time, which has contributed to building the Vietnam-Japan extensive strategic partnership.

Regarding naval cooperation, the two navies have exchanged delegations, sent ships to visit each other, and held training exercises at sea.

Rear Admiral Nghiem expressed his hope that in his new working position, Ambassador Yamada Takio would continue to make positive contributions to bringing the relationship between the two countries in general and the militaries and navies in particular to a new height.

Translated by Minh Anh

State President offers incense in commemoration of Hung Kings

April 21, 2021 by en.nhandan.org.vn

Attending the ceremony, State President Nguyen Xuan Phuc, Party and State officials, and leaders of Phu Tho province offered incense and flowers in tribute to the Hung Kings, praying for the nation’s peace and prosperity.

Chairman of the provincial People’s Committee Bui Van Quang spoke highly of the great contributions of the Hung Kings, the legendary founders of Van Lang – the first State in Vietnam, while praising their resilience in protecting the nation.

Following the incense offering ceremony, State President Nguyen Xuan Phuc and the delegates laid a wreath of flowers and offered incense at the tomb of the 6th Hung King, and paid tribute to late President Ho Chi Minh and martyrs at a relief featuring the late leader’s speech to soldiers from the Tien Phong Vanguard Division stationed at the relic site.

On the occasion of the death anniversary of the Hung Kings, many Vietnamese people from across the country and abroad have paid homage to the national founders at etemple complexes.

Vietnamese people pay homage to their ancestors. (Photo: NDO/Duy Linh)

This year, many activities being held on the occasion have been adjusted to suit the “new normal” situation, with COVID-19 prevention measures strictly in place. The worship of the Hung Kings popularises the UNESCO Intangible Cultural Heritage of Humanity among Vietnamese nationals and foreign friends.

Earlier this morning, President Phuc visited the Tu Xa new-style rural commune in Lam Thao district, where he visited several public works such as markets and stadia, and met with local residents.

The leader congratulated Tu Xa commune on its achievements in building new style rural areas in recent times, stressing a new style rural locality needs an advanced and quality education system, sound medical services, and good living conditions.

He asked the commune to speed up the application of science and technology, and develop its One Commune One Product (OCOP) products to better serve the market.