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Hitler, Castro and Saddam Hussein meet in a bar. It may sound like the beginning of a joke, but in the Palestinian territories it is actually possible.

Palestinians often name their children after famous celebrities, national heroes or backers of their cause.

Hitler Abu Hamad is not proud to carry the name of a man responsible for the slaughter of millions.

“There is no relationship between my name and the actions of Adolf Hitler,” he told AFP at his home in the city of Hebron in the occupied West Bank. “I hate what he did.”

“I am against killing, violence and human rights abuses, but I got used to my name and it is part of my character.”

How the quiet, polite 41-year-old school teacher came to be named after the most hated man of the 20th century says a lot about Israel and the Palestinians.

Israel occupied the West Bank in 1967 in a move never recognised by the international community.

Jewish settlers moved into the territory and the occupation continues.

When Abu Hamad was born in 1976, his father wanted to send a message, though in perhaps the most offensive way possible: picking the name of the man who systematically murdered six million Jews in the Holocaust.

“My father gave me the name to provoke the occupation,” he said.

“He was not political. He was a simple man who made mistakes. He wanted to make the occupation think with my name.”

The father-of-two studied English literature and is a deputy head at a school near his home, while also teaching adults.

His name is “weird for the kids at school”, he said.

He says it also causes him endless problems at Israeli checkpoints in the West Bank.

When he was 15 and living in Hebron’s Old City, an army officer approached him and asked him his name.

When he told him, the soldier flew off the handle, he alleges.

“He said ‘you are a criminal’,” Abu Hamad said, alleging he was then beaten by soldiers, leaving him with a broken nose still bent out of shape.

Israel’s military did not respond to a request for comment.

He believes the name also stopped Israelis from giving him permits to study or work outside the Palestinian territories.

“We are not against the Jews,” he said.

“We are against the occupation and don’t respect it. It destroys our homes, confiscates our possessions and restricts our freedom.”

Saddam Hussein

Many Palestinians have named children after their longtime leader Yasser Arafat, while other names heard include Castro, Guevara and Chavez — after the Latin American figures who supported their cause.

In Hebron, there is a Carter Abu Isneyna, named after former US president Jimmy Carter, who tried to get Israel to end the occupation and led the Camp David peace talks between Israel and Egypt.

Qais Hussein Omar was born in 1976 under a different name — Saddam Hussein.

He alleges he was regularly harassed at checkpoints by Israeli soldiers angered by his name, and was once hospitalised by a particularly brutal beating.

“My name was the source of psychological and physical suffering,” he said.

In other countries, too, he faced issues and it all affected his health, so seven years ago he changed it.

He urges parents not to name their children after famous people as it “won’t fit the personality”

“His name could be Yasser Arafat and he wants to become a ballet dancer.”

Benjamin Netanyahu Nicola

In the city of Haifa in northern Israel, an Arab Israeli man is named after Jules Jammal, a Syrian military hero believed to have driven his boat into a French warship during the 1956 Suez crisis.

“I am happy with my name,” he told AFP .

Naji Obeid, a Christian Arab who tries to encourage members of his community to join the Israeli army, named his son after former Israeli prime minister Menachem Begin.

“I loved the leader Menachem Begin and he was my friend, so I called my son Begin Obeid, and he serves in the Israeli navy,” he told AFP.

Arab Israeli Christian Waheed Nicola named his son Benjamin Netanyahu after the right-wing Israeli leader won elections in 1996.

Delivery man Benjamin Netanyahu Nicola, 21, has said in previous interviews with Israeli media the name has caused him no end of problems when he delivers goods in Arab areas.

Israeli media reports have said he wanted to change his name but his father, who is a member of Netanyahu’s Likud party, refused.

He didn’t want to speak to AFP .

“My son is beautiful and kind and his name has caused him a lot of problems, especially after media interviews,” his mother said. “So we won’t do any more.”

Culture

An extraordinary lying embroiderer

By Do Quang Tuan Hoang

Thursday,  Feb 11, 2021,13:03 (GMT+7)

An extraordinary lying embroiderer By Do Quang Tuan Hoang Some products made by Sam Thi Giang – PHOTOS: DO QUANG TUAN HOANG Sam Thi Giang is an exceptional artisan of the community of Thai Do ethnic minorities in Quy Chau District, Nghe An Province. Although she is unable to move around normally due to a congenital disorder, Ms. Giang has proved to be an excellent embroiderer. Her personal disabilities and her family’s financial constraint forced Sam Thi Giang to quit schooling after she had finished primary education. However, she did not surrender. At home, she began to embroider to continue to cherish her hope and find happiness. Ms. Giang learned embroidery from her grandmother, her mother, and from other neighboring women. Initially, she was so disappointed as she was unable to hold the needle firmly enough due to her weak hands. However, her patience and persistence enabled her to surmount difficulties. It was the only way for her to make a living, Ms. Giang told herself. “Many asked me why I practiced embroidery day in day out, I didn’t dare to answer the question,” she says. “As I conceal my aspiration in embroidery, I have to do the job until I am totally exhausted.” Her determination and aptitude have gradually paid off. Ms. Giang has come to master all the complicated embroidery techniques of the Thai Do, or Red Tai, people, especially the reversing embroidery (embroidering using colorful threads on the reverse side of the product and the patterns will appear on the right side). All the patterns on Ms. Giang’s embroidered products are Red Tai people’s symbols such as the sun, dragons, tigers, two-headed scorpions, flowers and butterflies. She uses threads spun from cotton fiber or natural silk fiber and dyed with natural plant colors. To have a beautifully embroidered brocade fabric, says Sam Thi Giang, the first thing is to select the suitable colors, and the next is to pick the right patterns, each of which has its own meaning. For instance, the sun symbolizes human love. “Notably, a Thai people’s brocade is embroidered on the right side but it is worn with the reverse side out, as all the patterns are more beautiful on the reverse side,” Ms. Giang explains. Embroidery skills play an important role in making a robe or a pieu scarf, aside from the quality of threads and the use of colors. Such skills require embroiderers’ diligence and artistic creativity. This is why Thai mothers often teach embroidery to their daughters when they become 13 or 14, especially when they have finished farm chores or in the rainy season. Out of school Sam Thi Giang looks like a 10-year-old girl though she is 32 now. Her timidity makes others think that she is an introvert person. However, the tiny woman is actually fond of learning everything around her so that she can integrate into and contribute to the community. Ms. Giang loves reading very much, saying she learns the outside world through the books given by her relatives and friends. Internet has been available in her village since 2010 and this has opened a new horizon to her. Smartphones and social networks are now communication means that help her overcome her physical disability and connected with the outside world. Despite her tiny body and weak health, Ms. Giang’s parents were determined to let her go to school. She was able to go to school on her own in the first two school years, but her mom had to carry Ms. Giang on her back in the three school years that followed. Sam Thi Tinh, a cousin who lives next door to Sam Thi Giang’s house, still remembers that her cousin studied well in spite of her poor health. Ms. Giang was also friendly to her friends and neighbors. The secondary school was on the other bank of a stream in the commune and was three kilometers from Ms. Giang’s house. In the flooding season, crossing the stream was dangerous to all students, while her mother was busy to support the family and could not carry her daughter to school on her back every day. Therefore, she had to quit school. As she had to stay home while her friends continued going to school, Ms. Giang was sad. Yet she did not let her mother know it, fearing that she could make her mom sad. “I was very sorry not to be able to go to school,” she says. “I’m always fond of learning, and I always love to hear songs about school and teachers.” Joining hands Over the past 20 years, Sam Thi Giang has seldom gone out. Every day, she embroiders from 8 a.m. till 11 p.m., and only takes a rest for her meals and sleep. After years of training to bolster her job passionately, she is now able to make her embroidered products become more sophisticated and livelier. However, while her craftsmanship has been better, she has had to face new challenges. Her hearing and vision abilities have been weakened over the past three years. Her wounds will bleed when she sits for a long time, so she has to lie down when embroidering. This working position has affected her productivity: it takes her four months to finish embroidering a robe instead of just one month as she did previously. Given her current situation, she thinks that she can do the job a few more years before having to stop embroidering for good. Although all Ms. Giang’s embroidered products are beautiful, subtle and unique, they are hard to be sold because she has not had any marketing channels. If the output for her products is good, she can support herself and the local embroidery craft will not fall into oblivion. This has prompted a group of young people to lend her a helping hand. Do Quy Duong, a group member, says in June 2019, he and some of his friends started their project by making a video clip about Sam Thi Giang. They then wondered whether traditional weaving could secure a position in modern life, and whether a change in patterns and designs to suit the market would have any impact on the local culture. Mr. Duong found the answers for such questions at a seminar held at the National Museum of Singapore. Earlier, he learned about the “Entwine: Maybank Women Eco-Weavers Meet Southeast Asian Artists” project via Facebook. He made a trip to Singapore to see how Maybank Foundation could support this project. There he learned that Maybank Foundation would finance non-governmental organizations or cooperatives in Southeast Asian countries to train weaving for low-income women. The project had been implemented for two years, and this was the second time Maybank Foundation had introduced the project to the public and invited embroidery artists to perform their craftsmanship in Singapore. “Color Silk, a non-governmental organization from Cambodia, was invited to perform at the event,” Mr. Duong says. “I had a talk with Ngorn Vanntha, a representative of Color Silk, and the talk answered all my questions.” Ngorn Vanntha said Maybank Foundation funded Color Silk’s training courses for the women participating in the project in five months. Apart from training in weaving skills, her group also offered training in business affairs and craftsmanship. After such courses, Color Silk would grant startup capital for students to buy looms and materials for production. Color Silk would buy all their products for export to Europe or Japan upon request. Interested women participating in the project were low-income earners or disabled ones, who wanted to develop traditional weaving. From the Color Silk’s model, back to Vietnam, Mr. Duong’s group discussed with Sam Thi Giang and reached an agreement on the designs of tablecloths and embroidered paintings for wall mounting. All the patterns embroidered on these products are symbols in Thai people’s culture. Another member of the group, Sam Thi Tinh, who is an artisan in Thai brocade weaving and a cousin of Ms. Giang, carries out a long-term project to welcome and entertain tourists who want to learn about brocade weaving craft and Thai culture in the village. “I pursue embroidery not to aim at just raising my income,” Ms. Giang says. “I want my offspring to learn the embroidery handed down from our ancestors. I also hope that local and international visitors know about the traditional embroidery of our Thai people.”

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Leaders of Vietnam and US exchange congratulations on diplomatic ties

Party General Secretary and State President Nguyen Phu Trong (R) hosting a reception for US President Donald Trump in February 2019 (Photo: VNA)

Party General Secretary and State President Nguyen Phu Trong and Prime Minister Nguyen Xuan Phuc exchanged messages of congratulations with President Trump on the occasion of the 25th anniversary of diplomatic relations between the two countries (July 12).

In his message, Party Chief Trong expressed his belief that the Vietnam-US comprehensive partnership will be strengthened in an effective and sustainable manner, benefitting the peoples of both nations and contributing to security, peace and prosperity in the region and the world.

Chairwoman of the National Assembly Nguyen Thi Kim Ngan exchanged congratulations with President of the Senate Michael Pence and Speaker of the House of Representatives Nancy Pelosi.

Deputy Prime Minister and Foreign Minister Pham Binh Minh also cabled a congratulatory message to Secretary of State Michael Pompeo.

US CDC congratulates Cho Ray Hospital for successful treatment of Patient 91

Patient 91 on the day he was discharged from hospital (Photo: Cho Ray Hospital)

A representative from the US Centres for Disease Control and Prevention (CDC), Doctor Drew Posey, sent an email of congratulations to Cho Ray Hospital on the successful treatment of COVID-19 Patient 91, a 43-year-old British pilot, announced Cho Ray Hospital on July 12.

The doctor also included a link to an article titled “A Scottish pilot who became an emblem of Vietnam’s virus fight leaves hospital”. It was published in the New York Times on the day Patient 91 was discharged from the hospital.

Patient 91, the most critically ill COVID-19 patient so far in Vietnam, underwent a total of 115 days of treatment at the Ho Chi Minh City Hospital for Tropical Diseases and Cho Ray Hospital.

He was discharged from the Cho Ray Hospital on July 11 to return to the UK on a Vietnam Airlines flight the same day.

Consulting firm McKinsey assesses Vietnam’s economic recovery capacity

Vietnam could expect the strong growth of recent years to return next year, and will likely see its position as an offshoring location reinforced once the global economy begins to recover, as assessed by the McKinsey & Company, a global management consulting firm.

In a recent article titled “Emerging from the pandemic, Vietnam must position itself for recovery,” the author said. “Vietnam has fared better economically than many countries,” it wrote. GDP growth in the first quarter was at its lowest level since 2010, although it was still in positive territory at 3.8%.

“If Vietnam can continue its enviable record of keeping community transmission of COVID-19 at bay while also making the right structural shifts to drive growth over the next decade, it would not only recapture its pre-COVID-19 economic position but may also drive new economic growth,” the article said.

2019 Provincial Open Budget Index released

On July 8, the Vietnam Institute for Economic and Policy Research and the Centre for Development and Integration released the 2019 Provincial Open Budget Index (POBI), which assesses how transparently localities have spent their allocated public funds in the last year.

The average transparency score was 65.55 out of 100 points, up from 51 points in 2018 and 30.5 in 2017.

The southern-coastal and southern regions boasted the highest average POBI scores at 77.16 points and 73.81, respectively. The north-central region placed last among Vietnam’s seven regions with 52.62 points.

The Mekong Delta province of Vinh Long continued to have the most transparent administration in terms of budget spending, posting 90 points. Meanwhile, central Phu Yen Province and northern Thai Binh Province were ranked last, with just 10 points each.

Vietnam has third global geopark recognised by UNESCO

Dak Nong Geopark

On July 7, the Programme and External Relations Commission of the 209th UNESCO Executive Board approved the Global Geoparks Council’s proposal to recognise Vietnam’s Dak Nong Geopark as a Global Geopark, the third of its kind in the country.

Located on the M’Nong Plateau at average elevation of 600-700 m, with the highest point at Ta Dung at 1,982 m, Dak Nong Geopark covers an area of 4,760 km2 in the northern districts of Dak Nong Province in Vietnam’s Central Highlands, according to UNESCO.

Dak Nong Geopark is the third UNESCO-recognised Global Geopark in Vietnam after Dong Van Karst Plateau Geopark in Ha Giang Province and Non Nuoc Cao Bang Geopark in Cao Bang Province, both in northern Vietnam.

Ca Mau launches first sea route to Nam Du and Phu Quoc

Ca Mau launches first sea route to Nam Du and Phu Quoc

An express boat service connecting Ca Mau Province with Kien Giang Province’s Nam Du Archipelago and Phu Quoc Island was officially put into operation on July 7 in order to provide visitors to the province with an interesting experience.

The route is plied by two high-speed boats of the Phu Quoc Express Joint Stock Company. Each boat is 46.85-metre long and 12.2-metre wide with a capacity of 600 passengers at a maximum speed of 35 nautical miles per hour.

The trip takes about an hour and a half per leg with round-trip tickets priced at VND590,000 for adults, VND470,000 for the elderly and children, and VND980,000 for VIP tickets.

Nhan Dan Newspaper’s national table tennis championships on horizon

175 players from 18 teams nationwide will be competing in the 38th Nhan Dan (People) Newspaper National Table Tennis Championship 2020

A record number of 175 players from 18 teams nationwide will be competing in the 38th Nhan Dan (People) Newspaper National Table Tennis Championship 2020, which is scheduled to take place in Ho Chi Minh City from July 12 to 19, a press conference in Hanoi on July 6 heard.

The participants will compete in men’s and women’s singles and doubles, and mixed doubles tournaments. The championship will help decide the national team to play in international tournaments this year and at the 31st Southeast Asian Games 2021 in Vietnam.

The championships are co-hosted by the Nhan Dan newspaper, the Ministry of Culture, Sports and Tourism’s Vietnam Sports Administration, the Vietnam Table Tennis Federation, and the HCM City Department of Culture and Sports.

Q: The year 2020 has just passed with numerous difficulties and challenges, but the entire Party, people and army have not only overcome hardships but also obtained many important achievements, leaving good imprints in the hearts of people and international friends. Would you please share with readers of the Party’s Newspaper about what you have been most impressed by?

A: In the process of building, defending and developing the country, besides the advantages, we always have to face and resolve numerous difficulties. But it is true that in the past year, the international, regional and domestic situation has continuously witnessed new and complicated developments; the strategic competition among major countries has grown increasingly fierce; and the COVID-19 pandemic broke out and spread globally, seriously affecting all aspects of the socio-economic life of all countries around the world, including Vietnam. Along with those great impacts, domestic difficulties and challenges are not small. Natural disasters, storms and floods have occurred, negatively impacting production and people’s lives, especially for people in the central region.

In that context, we have proactively and flexibly responded effectively to all developments, including unexpected situations, promoting the spirit of solidarity, mutual care and affection of the entire Party, people, and army, striving to successfully implement the Resolution of the 12th National Party Congress. The Party Central Committee, the National Assembly and the Government have promptly issued many appropriate, drastic and realistic directions and policies; all levels, branches and localities joined in a synchronous manner; the whole people united in striving to both prevent and combat the pandemic, overcome consequences of natural disasters, and promptly complete the socio-economic development plan for 2020 and for the whole term, while at the same time successfully organising Party Congresses at all levels towards the 13th National Congress of the Communist Party of Vietnam. While the world economy has been in serious recession with negative growth of nearly 4%, the micro-economy of Vietnam has been still stable, inflation has been controlled, the growth quality has been enhanced, and the economy’s major balances have been improved. In 2020, Vietnam’s economic growth was estimated at nearly 3%. To date, the world has recorded more than 100 million people infected with COVID-19 with more than two million deaths. Vietnam is one of the very few countries to have effectively prevented and fought against this pandemic. Other areas of the political life and social security continued to be stable, many of them are flourishing. People’s confidence in the Party’s leadership and the socialist regime has been steadily strengthened, which is the highest and most accurate measure. I have often said, and received a high consensus, that never before has our country had the fortune, potential, and international position and prestige that it does today.

The achievements in 2020 and this 12th tenure, including the successful organisation of Party congresses at all levels, are the result of the striving efforts in the whole tenure and more profoundly that is the following of the achievements of the Doi Moi during the past 35 years.

Q: The work of Party building and rectification as well as the fight against corruption and negative activities has left a prominent and deep impression of the 12th tenure of the Party Central Committee. How was this achieved?

A: The work of Party building and rectification, especially the fight against corruption and negative activities, are always big, difficult, complicated and extremely sensitive problems, because that is the struggle within the Party, within the Government, within each person who has position, rights, and money. That is the fight against “internal invaders”! From the past until now, our Party focused on this work in previous tenures, but in fact, have never achieved such positive results as in recent years, as well as been acknowledged and supported by the people, creating a positive effect in all society. More than 110 officials, even including high-ranking officials under the Central management were disciplined. It hurts! But it must be done for the common cause of the Party, the people and the nation. And,in doing so, we can clean the organisation, the apparatus of the Party and the State, thus restoring the people’s trust. The motto is the synchronous and tight combination between “building” and “fighting”; continuing to develop and perfect guidelines and policies, create favourable conditions and opportunities for cadres to strive and dedicate their talents to the country, build a synchronous legal document system, and increase the control of power; while at the same time resolutely and strictly handling violations.

Those positive results were attributed to the high determination, the drastic direction, the correct and persistent methods of the Party Central Committee, the Politburo, the Secretariat and the Central Steering Committee for Anti-Corruption, the advisory and functional agencies, especially the Party Central Committee’s Inspection Commission, the Party Central Committee’s Commission for Internal Affairs, the Police, the Army, the Supreme People’s Procuracy, the Supreme People’s Court, the Government Inspectorate, the State Audit, etc. All have joined in a synchronous manner, from central to local levels. No one can stand outside and cannot stand outside, because the fight against corruption has really become a trend and a demand for itself in the Party building work, which is an urgent requirement of the people. The Party’s political determination has been shown in handling cases in a methodical, fair, objective and public manner, in the spirit of no “forbidden zones”, no exceptions, and no privileges. The handling is strict but also very humane, creating a high consensus in the Party and the society.

Party General Secretary and State President Nguyen Phu Trong with delegates attending the 70th founding anniversary of Nguyen Gia Thieu High School in Hanoi. (Photo: Duy Linh)

Q: Could you tell us what lessons have been learned from the success of the 12th tenure of the Party Central Committee?

A: The success of the 12th tenure gave us valuable experiences. The following are some of the main lessons.

First of all, it is necessary to regularly well implement the Party building and rectification work in all fields of politics, thought, organisation, ethics and personnel. This is the core issue, the cause of all causes. In any period, if there is no strong party organisation, no high spirit of solidarity, especially without a contingent of qualified and talented cadres, then no correct path and policy can be realised; the degradation in political ideology, ethics and lifestyle of a number of cadres will lose people’s trust. If we lose trust, we lose everything. Thanks to good implementation of the Party building and rectification work, previous shortcomings, especially in personnel work, have been gradually overcome. Therefore, people’s trust has been strengthened, creating a new driving force, new determination in promoting socio-economic development and overcoming all difficulties and challenges.

Secondly, there is the lesson of “taking people as the root”, considering the people as the centre and the subject of the Renewal cause. All the Party’s guidelines and policies must come from the legitimate rights and interests of the people; and consider serving people as the motivation and goal to strive, always trust, respect and strongly promote the people’s rights to mastery, realising the motto “People know, people discuss, people do, people monitor, people supervise, and people enjoy”.

Thirdly, regarding leadership, direction, administration, organisation, and implementation, there must be high determination, truly dynamic and creative to overcome the limitations and weaknesses pointed out by the Congress. It is necessary to maintain and strictly implement the principles and activities of the Party, especially the principle of democratic centralism, self-criticism and criticism. When new and difficult problems arise, these principles should be upheld in order to find a common voice to solve problems together. We should enhance the responsibility of setting the example of cadres and party members, especially leaders, and at the same time encourage the spirit of innovation, creativity, daring to think, to do, and to take responsibility; as well as strictly observe the discipline of Party, and the law of the State.

Fourthly, in the implementation of the tasks, due attention must be paid to the synchronisation and comprehensiveness, combining the realisation of long-term basic goals and tasks with solving urgent and immediate problems in a drastic manner in order to ensure the harmony between economic development and the handling of social problems, and between maintaining independence, sovereignty, territorial integrity, and self-reliance and achieving deeper international integration;while handling all situations wisely to maintain a peaceful and stable environment and cooperate for mutual development, etc.

The lessons mentioned above have been drawn over many tenures and have been deepened in the past five years, with long-term value in the process of leading and developing the country of our Party.

Q: Could you please tell us about some new points raised at the 13th National Party Congress and what is currently the most concerning issue?

A: The direction of this Congress has seen many innovations. Firstly, the direction of the Party Central Committee is very specific, close, regular, drastic, prudent, methodical and scientific; defining further vision, but also more clearly defining specific objectives, tasks and solutions. This is truly a profound and democratic political activity. The Party Central Committee soon issued documents to direct and thoroughly organise the National Cadres’ Conference to unify the implementation. On behalf of the Politburo, I shred three articles (this is also the first time in the process of organising the congress that the General Secretary has done this) to orient general and key issues,in order to thoroughly grasp and well implement Directive No.35 of the Politburo on the Congress’ organisation, on personnel work, and the drafting of documents of the 13th National Party Congress. I know that, together with the directive documents of the Party Central Committee, these three articles are considered as “manuals” for party committees and organisations at all levels to prepare and organise their congresses more smoothly. Another new point is, the Secretariat set up 12 working groups to directly inspect, urge and direct the timely removal of difficulties and problems. The Politburo and the Secretariat have been focused on directing and stabilising the situation in “problematic” places and strengthening the staff to prepare and organise the congress. After finishing the congress at each level, there is a summary to draw experience; the Politburo organised the National Cadres’ Conference to comprehensively evaluate the organisation of the Party Congresses at all levels, draw lessons from experience to promptly serve the preparation towards the 13th National Congress as well as the directing work for the next stage. The drafting of documents, especially the Political Report, have many new points, not only summarising the term but also looking back at 35 years of Doi Moi (Renewal); not only defining directions, goals, tasks and solutions for the next five years, but also striving for the year 2030 as the Party celebrates its 100th anniversary, as well as a vision to 2045 when the country will mark its 100th independence anniversary. The Democratic Republic of Vietnam (now the Socialist Republic of Vietnam). The drafting documents have done very carefully, absorbing the most comments of the people, and have been reviewed in many times, worthy of a document of the National Party Congress. An action plan is discussed at the Congress. Personnel work has been done step by step in a prudent, strict, thorough, scientific manner, with the coordination, inspection and supervision of the party committees, advisory agencies, and functional agencies. With such strict steps, processes, and regulations, negative phenomena have decreased, the quality of the party committees at all levels has been improved, the proportion of Party committee members who are women, young people and of ethnic minorities has increased compared to the previous tenure.

The documents have been carefully prepared, with good quality, truly crystallising the wisdom of the entire Party, people and army. The most concerned issue is the personnel work. This issue has been and is being done in a thorough manner, resolutely not to be included in the electoral list of ineligible and unqualified people. The delegates attending the Congress must be really sound, truly fair, objective, and put the interests of the Party, the nation, and the people first and foremost; absolutely not to be dominated by anyone, any power when holding the ballot, choosing the most deserving people to be elected to the Party Central Committee, the Politburo, the Secretariat, the Inspection Commission, and especially the General Secretary. The entire Party and people trust each delegate to decide this important job. It must be remembered that it is the responsibility and honour of each delegate to be part of this major national event.

Q: On the occasion of the Lunar New Year, what is your message to people across the country and overseas Vietnamese?

A: The results achieved in the 12th tenure of the Party Central Committee and especially the lessons from 2020 give us more confidence in the leadership of the Party, in the power of the great national unity bloc, creating a new spirit and a new driving force for the entire Party, people and army to steadily overcome all difficulties and challenges, bring the country into a new stage of development, as well as successfully implement the Resolution of the 13th National Party Congress. On behalf of the Party and State leaders and with my own affection, I cordially send New Year greetings to all citizens, comrades, and soldiers in every part of the country, and to all compatriots overseas. May the New Year bring peace, prosperity, happiness, and new victories.

Thank you very much!

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