Socio economic variables

Hoang Van Tam from Hanoi frequently flies to Da Nang on weekends to seek investment opportunities there. His business as a medical equipment trader provides a stable financial source and he wants to set up a branch in Da Nang.

After a period of seeking land for his office, Tam has a better understanding about the local real estate market. Realizing that prices are relatively good, Tam decided to buy two land plots valued at VND3 billion.

According to Tam, Da Nang’s land is inexpensive at this time. That is why many investors are flocking to buy land as they believe the possibility for recovery in Da Nang after Covid-19 is very high.

“It is now the time for investors to come back to the market. But they need a medium-term vision,” he said.

“However, the game just fits those who have powerful financial capability and don’t have to use borrowed money,” he said.

Do Manh Cuong, another investor from Hanoi, is also seeking to buy land in Da Nang. He said when the market cools and the prices go down, it is time to buy land in anticipation of a new resurgence.

The sharp land price fall has helped eliminate the groups of speculators who focus on surfing investments, causing a real estate bubble. The price fall has also helped people more easily access land and houses at more reasonable prices. This was impossible in a booming market.

According to Cuong, the land hunt at this moment is understandable. But the land will be more expensive in the future when the tourism market recovers.

Many real estate trading floors in Da Nang have resumed operation after Tet holiday. On real estate forums, the average land lot offered is VND100 million more than in the pre-Tet period. The demand for land in Da Nang has begun to rise.

Many real estate trading floors in Da Nang have resumed operation after Tet holiday. On real estate forums, the average land lot offered is VND100 million more than in the pre-Tet period. The demand for land in Da Nang has begun to rise.

Nguyen Van Dinh, deputy chair of the Vietnam Real Estate Brokerage Association, said land is investors’ main interest because its value is lower than townhouses, while those who have demand for accommodation are interested in affordable apartments. Market demand may bounce back anytime.

He went on to say that Covid-19 has been controlled well in Vietnam, so the Da Nang real estate market has recovered gradually in some segments, including land and affordable apartments.

Seeking new way

Rapid-fire good news is supporting the Da Nang’s real estate market. The city has attracted a lot of large investment projects and is expected to become a special city of Vietnam. When the pandemic ends and tourism is stable, Da Nang’s land prices are expected to rise.

The success in controlling Covid-19 has helped turn Da Nang into a safe and attractive destination for the international community, thus paving way for FDI capital to flow into Da Nang.

According to Da Nang Planning and Investment, municipal authorities in 2020 licensed 87 foreign invested projects with total registered capital of $129.177 million. Meanwhile, 20 projects registered to expand investment with additional capital of $80.057 million, and 105 foreign investors bought into Vietnam’s businesses, at $3.63 million.

The Da Nang People’s Committee has released a decision on adjusting the list of key projects that need investment in 2020-2025. The 57 projects include transport infrastructure with capital of tens of trillions of dong.

The Government Office has issued a document showing Prime Minister Nguyen Xuan Phuc’s opinion on the proposal to build Da Nang into a financial center in the region.

The Prime Minister has approved the amendment of Da Nang’s overall planning to 2030. Da Nang will be built into a large socio-economic center of Vietnam and Southeast Asia as a hub for startups, innovation, tourism trade, finance, logistics, high technologies, IT and supporting industries.

Da Nang is also developing a night-time economy and tourism development projects.

It is implementing a plan on restoring tourism and demand stimulus activities in 2021, focusing on attracting domestic travelers and preparing to receive international travelers after it is allowed by the government.

Nguyen Duc Lap, head of the Real Estate Research and Training Institute, said the current real estate prices are close to the bottom levels that were seen in previous cycles. Though Covid-19 is an unpredictable variable, the recovery of Da Nang land prices is expected.

Nam Hai

A fruit processing line at An Giang Fruits-Vegetables and Foodstuff Joint Stock Company.

Dang Phuc Nguyen, general secretary of the Viet Nam Vegetables Association, said that new-generation free trade agreements (FTAs) such as the EU-Viet Nam Free Trade Agreement (EVFTA); the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); or Regional Comprehensive Economic Partnership (RCEP) were helping pave the way for Vietnamese businesses to increase fruit and vegetable export turnover this year.

Regarding the market, vegetables and fruit exported mainly to the Chinese market in the first two months of this year, reached $352.83 million, up 17.5 per cent over the same period last year, accounting for 62.5 per cent of the total export value of vegetables and fruit of Viet Nam.

The increase in exports to the Chinese market is due to a sharp growth in consumption demand during the Lunar New Year. Besides China, some other major markets for Vietnamese fruits and vegetables are the US, Thailand, Japan, and South Korea.

Notably, the export value of vegetables and fruits to Taiwan, Australia and Malaysia rose significantly. Export value to the Taiwanese market reached $12.87 million, up 43.1 per cent; Australian market reached $11.9 million, up 30.6 per cent; and the Malaysian market reached $9.2 million, up 32.5 per cent over the same period last year.

In addition to familiar markets, Viet Nam’s fruit and vegetable industry has also been promoted for export to many other large potential markets, such as Egypt, Kuwait, Ukraine, and Senegal.

The UK – Viet Nam Free Trade Agreement (UKFTA) promises to create a new driving force for economic co-operation in the future, said Nguyen.

When the agreement takes effect, more than 94 per cent of the total 547 tax lines for vegetables and fruit will have a tax rate of 0 per cent.

Many key products such as litchi, longan, rambutan, dragon fruit and pineapple will have additional market access advantages as tropical fruits originating from competing countries such as Brazil, Thailand and Malaysia do not have FTAs with the UK.

To take advantage of market opportunities and boost exports, businesses need to improve the quality of fruit and vegetable products and meet the standards required by the importing market, said experts.

Recently, the Prime Minister has approved a project to develop the fruit and vegetable processing industry in the 2021-2030 period with the goal that export turnover of fruits and vegetables will reach $8-10 billion by 2030.

Of which, the proportion of export turnover of processed fruit and vegetable products will reach 30 per cent or more; fruit and vegetable processing capacity will reach two million tonnes per year, nearly double that of last year.

On the other hand, the project also aims to attract investment for 50-60 new large and medium-sized fruit and vegetable processing establishments by 2030; to build and successfully develop a number of modern fruit and vegetable processing groups and enterprises at regional and international level.

To achieve these goals, the agricultural sector will boost investment in improving the capacity of fruit and vegetable processing in the future; develop establishments for preliminary processing and preservation of fresh fruits and vegetables as well as promoting key fruit and vegetable products and high value-added products.

In addition, the agricultural sector will promote deep processing, diversify products from raw vegetables and fruits and from post-processing by-products. The industry will also strive for value-added growth of 10 per cent per year on average in the 2021-2030 period.

The sector will also build and form specialised areas in vegetable and fruit production to ensure the supplied materials to have quality and food safety for processing activities.

Vietnam Airlines proposes raising airfare caps

Vietnam Airlines has proposed that the Civil Aviation Authority of Vietnam raise airfare caps by VND50,000-250,000 per passenger, the local media reported.

The national flag carrier proposed raising the airfare caps to VND2.25 million per ticket from VND2.2 million per ticket for air routes with a distance between 500 and 850 kilometers and to VND2.89 million per ticket from VND2.79 million per ticket for air routes between 850 and 1,000 kilometers.

Besides this, Vietnam Airlines proposed setting the floor prices of air tickets, which would be equivalent to 35% of the airfare caps or of the average variable cost per seat of low-cost air carriers.

As such, the floor prices of air tickets would be VND570,000-787,500 per ticket for air routes with a distance between 500 and 850 kilometers and VND755,000-1,000,000 per ticket for air routes between 850 and 1,000 kilometers. The current floor price of air tickets is zero dong.

A representative of Vietnam Airlines said raising airfare caps and setting floor prices will help prevent local airlines from dumping air tickets and reduce the competitiveness in the local aviation market. This will also help local airlines recover from the Covid-19 pandemic.

However, an aviation expert said if Vietnam Airlines’ proposal is approved, there will no longer be zero-dong and VND79,000 air tickets. Raising airfare caps and setting floor prices will reduce competitiveness in the local aviation market, affecting travel companies and consumers, he said.

Agricultural production in Mekong Delta amid age of digital transformation

Mekong Delta farmers have been adopting many advanced models in agricultural production, such as growing melons in net houses and hi-tech shrimp farming. Accordingly, pesticide spraying drones, seed sowing machines, and rice transplanters have appeared in some places. Digital transformation is an inevitable trend in the modernization of the agricultural sector because technology helps to enhance productivity and value through effective scaling farming and management systems.

Five years ago, Dr. Nguyen Thanh My, Chairman of My Lan Group in Tra Vinh Province, introduced many impressive production models applying high technologies to adapt to climate change. The most prominent was the model of rice production using smart fertilizers. This model was first implemented in Tra Vinh Province, then being adopted by farmers in Dong Thap and Hau Giang provinces. The evaluation from the production of hundreds of hectares of rice shows that the production cost of one kilogram of rice under this model is lower than that of the reference model from VND165-VND224 per kilogram; the rice yield is equal and higher; the profit is higher than that of the reference field by about VND1.9 million-VND2.1 million per hectare. The beauty of this model is that the water management following the applications of agriculture 4.0, such as installing solar-powered water level monitoring systems and automatic irrigation devices, creates convenience.

In Binh Thanh Commune, Phung Hiep District of Hau Giang Province, Mr. Vo Van Trung was the first person to grow melons in a net house. With 3,000 square meters, for nearly five years, by adopting high technology in melon farming, he has had an annual income of over VND500 million. From the efficiency of the melon production model of Mr. Trung, 12 local farmers have participated in the establishment of the Thuan Phat melon cooperative, with a total growing area of 9,000 square meters and an annual income of nearly VND2 billion for four crops per year.

Hau Giang Province is also replicating the model of growing Japanese and Israeli melon varieties in net houses. Accordingly, farmers have installed smart automated irrigation systems, which irrigate melons following the water consumption demand of the plant by smartphones, and fertilizer management systems for melons by smartphones, such as sensors, temperature, pH, and soil moisture. At the same time, they control the microclimate temperature and humidity of the environment by smartphones via the indoor air sensor, following the ambient temperature and humidity, as well as the temperature and moisture needs of melon.

Currently, agricultural production has been facing increasing labor scarcity, and labor prices have also climbed sharply. In some places, there is a shortage of workers in agricultural production, especially in the stage of pesticide spraying. Amid the above situation, the agricultural sector of Hau Giang Province has set up a team providing pesticide spraying service by drones following the needs of farmers. Currently, the provincial agricultural sector has put into use 10 pesticide spraying drones with about 10 remote pilots, proficient in flying spraying drones. Up to now, the team has demonstrated and provided services on 1,000 hectares. Mr. Tran Chi Hung, Director of the Department of Agriculture and Rural Development of Hau Giang Province, said that spraying plant protection drugs on rice plants by drones is a solution that saves time, effort, and cost, as well as protects the health of farmers and brings high efficiency. According to the forecast of experts, in the coming time, agricultural production will inevitably use the same devices to increase agricultural productivity and output. According to Mr. Tran Chi Hung, the agricultural sector has put into operation the trading floor and traceability of Hau Giang agricultural products for over the past two years, thereby, helping nearly 2,000 organizations and farmers to have favorable conditions to apply blockchain technology in the traceability of agricultural products. Farmers have mastered recording electronic diaries in operations and production, creating traceability codes of their agricultural products through QR Codes, and putting products on the trading floor for advertising.

In fact, many hi-tech agricultural production models have brought efficiency to farmers. However, it raises the question that why these models have not been replicated in the Mekong Delta? Mr. Nguyen Phuong Lam, Director of VCCI Can Tho, commented that digital transformation is an inevitable trend in the modernization of the agricultural sector because technology helps to enhance productivity and value through effective scaling farming and management systems. The Government has shaped the policy for modernization of the agricultural sector, but the implementation process is still asynchronous.

According to Mr. Nguyen Phuong Lam, thinking and synchronization are necessary to digitize effectively. It is difficult when a part of the agricultural sector applies digitalization whereas the others do not. At that time, the agriculture sector could not be synchronously connected. To digitize, farmers must have qualifications and agricultural certificates. For a broader view, first of all, there must be an appropriate and standardized agricultural planning, then synchronous application. Currently, the stage of state management has step by step digitized, located the farming areas, measured and stores data, and monitored developments. However, what they recorded is only in some fields and has not been applied on a large scale. Some enterprises boldly invest in monitoring water quality, seeds, diseases, and traceability but digital transformation still merely focuses on large-scale enterprises. For farming households, the digitalization picture remains vague, or in other words, it is not accessible due to resources and qualifications, said Mr. Lam.

For a long time, smart devices for agriculture have become the “national development strategy” in Japan, the Netherlands, and especially Israel. According to scientists, to achieve such results, investment in agricultural science research must have a stronger breakthrough, especially in the context of climate change, agriculture in the Mekong Delta is one of the most sensitive and vulnerable sectors. Prof.-Dr. Bui Chi Buu, former Director of the Institute of Agricultural Science for Southern Vietnam, said that connecting technology 4.0 with agriculture with a high level of mechanization, synchronization, and the large-scale land area will promote rapidly in quantity in the initial stage, instead of combining with high-tech agriculture because the investment capital is too large compared to the current economic capacity of Vietnam. The specialized farming area must be attached to the agricultural product processing factory. Vietnam can carry out high-tech agriculture and mass agriculture 2.0 and 3.0 at the same time to bring into play the most positive results. After all, the market will be the factor that decides the consumption of agricultural products and meets the goal of enriching farmers.

“We need a synchronous digitalization program. And before digital transformation, the necessary condition is large-scale agricultural production, i.e. large production is required for digitalization to be effective. To do this, enterprises must go first, and the cooperative model must reach a certain scale in terms of area and resources,” Mr. Nguyen Phuong Lam proposed.

Shrimp exports to European market climb robustly

According to the departments of Industry and Trade of provinces in the Mekong Delta, shrimp exports have improved and posted robust growth in the European market.

Accordingly, Ca Mau was the leading province in shrimp exports. The provincial Department of Industry and Trade said that the export turnover of aquatic products, mainly shrimps, in the province in the first quarter of this year hit US$163 million, accounting for 15 percent of the plan, up 6 percent year-on-year. In Bac Lieu Province, the total seafood exports in Q1 were estimated at $163 million, achieving 18 percent of the plan, up 8 percent year-on-year. Of which, frozen shrimps reached $160 million, an increase of 8 percent compared to the same period last year. Similarly, some key shrimp-exporting provinces in the Mekong Delta, namely Soc Trang and Kien Giang, also saw positive growth.

The departments of Industry and Trade of Mekong Delta provinces said that export turnover in Q1 increased compared to the same period last year, thanks to impacts of the advantages of free trade agreements that Vietnam has signed with other countries in the world. Therefore, shrimp exports to these markets rose sharply. Especially, shrimp export turnover of Ca Mau into the European market jumped by 154 percent; that into Canada edged up by nearly 15 percent; that into Australia surged by nearly 41 percent; that into Switzerland rocketed by 568 percent.

Besides the improved shrimp exports, the prices of raw shrimps have also been at fairly high levels so farmers are extremely excited. According to statistics of Ca Mau Province, tiger shrimps sized 12 pcs per kilogram fetched VND210,000-VND220,000 per kilogram; white-leg shrimps sized 100 pcs per kilogram raised in plastic-lined ponds were sold at VND103,000-VND113,000 per kilogram while those raised in conventional ponds were sold at VND101,000-VND111,000 per kilogram.

Long An raises investment capital for construction of bridges

The Government of the Mekong Delta province of Long An has decided to increase the investment capital for the construction project of three bridges on a key road connecting HCMC and Long An and Tien Giang provinces from VND2,295 billion (US$99.55 million) to VND3,600 billion (US$156.15 million).

Of which, VND3,000 billion (US$129.86) will come from the Central State budget while the remaining money will be collected from other resources.

The designs of bridges have been adjusted, widening from three to four lanes. The project will be kicked off in this year and is expected to complete in five years.

Deputy Director of the Department of Transport of Long An Province, Nguyen Hoai Trung said that the project saw the adjustment of design and structure of material, including of a steel-reinforced concrete bridge crossing Can Giuoc River changed into an arch bridge with the length of 2.7 kilometers and width of over 14 meters; the Vam Co Dong steel-reinforced concrete bridge turned into cable-stayed bridge; and Vam Co Tay bridge to be a blend between the steel-reinforced concrete bridge and cable-stayed bridge. The Vam Co Dong and Vam Co Tay bridges have the length of 6 kilometers and the width of 13 meters of each.

According to the Provincial Department of Transport, a network of 23 roads linking HCMC and Long An needs expansion to meet increasing public’s travelling demand with a total capital of about VND24,000 billion (US$1 billion).

The National Highway 50 running through HCMC’s Binh Chanh District and Long An Province’s Can Giuoc District; the linking construction of Long Hau Road from HCMC’s Nha Be District and DT826E in Long An Province’s Can Giuoc District; and Le Van Luong Road from HCMC’s Nha Be District to the provincial road DT826C in Long An Province’s Can Giuoc District will be invested at costs of VND1,500 billion (US$65 million) , VND5,100 billion (US$221.35 million) and VND1,000 billion (US$43.36 million) respectively.

The two localities also came to an agreement on building a 8.6km-long road running parallel to the National Highway 50, starting from HCMC’s Binh Chanh District to the key road, DT827E in Long An Province’s Can Giuoc District with a total investment capital of VND4,300  billion (US$186.45 million).

Fitch Ratings revises Vietnam’s outlook to positive

Fitch Ratings has revised Vietnam’s outlook to positive from stable and affirmed its long-term Foreign-Currency Issuer Default Rating (IDR) at “BB”.

Vietnam was among the few economies in the Asia-Pacific region and the “BB” rating category to maintain positive growth in 2020, at 2.9 per cent. The relative strength of Vietnam’s performance was largely due to its success in bringing the coronavirus outbreak swiftly under control, despite the pandemic’s impact on domestic economic activity and tourism inflows, alongside strong policy support and export demand.

The rollout of Vietnam’s vaccination programme is off to a slow start, but the ratings agency nevertheless expects GDP growth to reach about 7 per cent in 2021 and 2022, in line with a broader global economic recovery sustaining export growth and a gradual normalisation of domestic economic activity based on its expectation of continued success by the authorities in containing domestic coronavirus infections.

Vietnam’s external finances have strengthened further despite the pandemic. Exports rose by about 7 per cent in 2020 in US dollar terms, and the current account recorded a surplus of about 3.6 per cent of GDP. Strong export performance reflects a surge in demand for high-tech components associated with strong sales of IT equipment in the US and other advanced economies as well as continued benefits of trade diversion, associated with rising costs in China and the US-China trade war.

The bulk of the strong foreign direct investment (FDI) inflows in 2020 went into the manufacturing sector. Net FDI in 2020 was $15.4 billion (about 4 per cent of GDP), close to the previous year’s level. We expect FDI inflows to stay healthy as Vietnam is likely to benefit from the ongoing trade diversion and also its entry into trade agreements such as the EU-Vietnam Free Trade Agreement and the Regional Comprehensive Economic Partnership.

Vietnam’s economic prospects will remain susceptible to shifts in external demand due to the economy’s high degree of openness.

In terms of macroeconomic policy and performance, the country has sustained high growth that reduces the GDP per capita gap vis-à-vis its peers while maintaining macroeconomic stability. With regards to  public finances, Vietnam witnessed further improvement in public finances, for example, through sustainable fiscal consolidation and debt stabilisation over the medium term, as well as a higher revenue base or a reduction in the risk of contingent liabilities.

Businesses from Vietnam, Algeria, Senegal seek partnership opportunities

More than 200 businesses from Algeria, Senegal and Vietnam operating in various sectors joined an online trade exchange among the three countries on April 5 and 6.

Addressing the event, Vu Ba Phu, Director of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, said that in the context that countries have still closed their borders to prevent the spread of the COVID-19 pandemic, the event is an important activity to foster connections among enterprises of the three countries.

Phu said he hoped participants would optimise this opportunity to explore each other’s potential and demand to set up partnership, thus supporting each other to overcome difficulties for common development.

Vietrade is willing to coordinate with and create favourable conditions for businesses from Vietnam, Algeria and Senegal to cooperate in an effective, stable and long-term manner, said Phu.

For his part, Vietnamese Ambassador to Algeria and Senegal Nguyen Thanh Vinh said that this is the second trade exchange that has been held since the pandemic broke out after the first one in November last year, aiming to give a chance for enterprises of the three countries to meet and exchange.

He affirmed that the embassy will accompany businesses of the three countries in exploring each other’s markets and seek cooperation opportunities.

Representatives from Algeria and Senegal introduced the potential and cooperation demand of the two countries with Vietnam, while proposing measures to further promote mutual understanding among the firms and set up partnerships.

President of Algeria’s Organisation of National Economic Development Roubai Nasreddine Mounir said that the potential market of Algeria is an important gateway for Vietnamese enterprise to strengthen investment and trade ties with Algeria in particular and Africa in general.

Vietnamese Trade Councilor in Algeria Hoang Duc Nhuan, who is also in charge of Senegal, Mali, Nigeria, Gambia and Tunisia, introduced the potential of import-export activities between Vietnam and Algeria and Senegal, as well as relevant regulations, payment methods and tax policies in the three markets.

He also called on businesses from Algeria and Senegal to attend upcoming trade events in Vietnam such as Vietnam Expo 2021 from April 14-17, and Vietnam AutoExpo 2021 from May 20-23.

Vietnam’s customs statistics showed that trade between Vietnam and Algeria was 150 million USD in 2020, a 20 percent decrease from 190 million USD in 2019 due to the COVID-19 pandemic.

Vietnam mostly export coffee, rice, peppercorn, seafood, steel, computers, electronics and spare parts, and equipment to Algeria, while importing pharmaceuticals, minerals, and animal feed from the country.

Noting that the results have yet to meet cooperation potential between the two sides, he called on Algerian investors to increase investment in Vietnam, a gateway to the Asian market and especially a 650-million-strong ASEAN market.

Meanwhile, trade between Vietnam and Senegal was only 95 million USD in 2019./.

Cashew nut exports enjoy surge in volume throughout Q1

Vietnam exported 108,000 tonnes of cashew nuts worth a total of US$634 million during the first quarter of the year, representing an increase of 13.2% in volume and a decline of 5.8% in value compared to the same period from the previous year, according to the General Department of Vietnam Customs.

March alone witnessed the country ship 41,000 tonnes of cashew nuts worth US$240 million abroad, up 86.5% in volume and up 88.2% in value compared to February.

The average export price of cashew nuts in March recorded an increase of 0.9% to US$5,854 per tonne compared to February, a drop of 16.9% compared to March 2020.

During the three-month period, the average export price of cashew nuts suffered a decrease of 16.8% to US$5,862 per tonne, an annual fall of 16.8% against the same period from last year.

Local cashew nut exports to the United States, China, the Netherlands, Canada, and Germany all witnessed a upward trajectory, according to the General Department of Vietnam Custom.

The Import and Export Department says the global demand for cashew nuts reached a figure of US$9.94 billion in 2018 and is expected to reach US$13.48 billion by 2024, with the average growth rate hitting 5.2% annually between 2018 and 2024.

Oil and gas companies expect good performance in Q1 on higher crude price

Many Vietnamese companies in the oil and gas field might post positive results in the first quarter of 2021 thanks to the strong rally of crude oil in the international market.

As of March 31, crude prices rose more than 23.6 per cent. It even broke over US$70 a barrel in March.

The gain received support from lower global oil stocks. The Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, agreed to extend production curbs, and supply from the US was estimated to fall 4 million barrel a day.

The bullish oil price might have positive effects on business activities of oil and gas companies in this year’s first quarter. In early April, PetroVietnam Gas JSC (GAS) reported revenue of over VND17.8 trillion in the first quarter, equivalent to 102 per cent of its quarterly target.

Its profit after tax was more than VND2.23 trillion, equivalent to 127 per cent of its plan, GAS said in a statement on its official website.

The company said that despite unstable demand from customers, lower than GAS’ estimation and that of the same period last year, and some transportation issues to transfer oil and gas to the mainland from offshore basin, GAS still achieved business targets on higher oil prices.

GAS’ price policy is normally 46 per cent of furnace oil (FO) price. Once oil prices rise, GAS will directly benefit from the higher sale price of gas and liquefied petroleum gas (LPG). It is holding a 100 per cent market share in natural gas and is accounting for the largest part in wholesale LPG.

Binh Son Refining and Petrochemical Company Limited (BSR) also expected good results in the first quarter. In an announcement, BSR estimated that it gained nearly VND21 trillion in revenue in the first quarter, with a profit of over VND1.8 trillion.

The company stated that the strong rally in the international oil price is the main reason for the good results.

Meanwhile, fuel demand is also expected to improve as the pandemic has been contained.

PetroVietnam Oil Corporation (OIL) said that the increase in oil prices might help it revert the provision for devaluation of inventories in the first quarter of 2021, as well as to improve domestic fuel output, especially aviation fuel when international routes are reopened.

The group of oil and gas companies providing services and products such as PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling & Well Services Corporation (PVD), Petrovietnam Transportation Corporation (PVT) and PetroVietNam Chemical and Services JSC (PVC) also witnessed positive signs on stable operations and development of new projects.

Shares of these companies were also boosted by the higher oil prices and good business result outlooks.

In the first quarter, BSR shares increased sharply by 73.5 per cent compared to the beginning of the year, followed by PVD (30.6 per cent), PVT (17.2 per cent), PVS (22.3 per cent), OIL (17.2 per cent) and GAS (1.8 per cent).

Agriculture export value up 20 percent in Q1

Vietnam exported 10.61 billion USD worth of agricultural, forestry and fishery products in the first quarter of 2021, up 19.7 percent compared to the same period last year.

According to the Ministry of Agriculture and Rural Development (MARD), in March alone, exports reached 4.12 billion USD, up 20 percent from the same month in 2020 and 57.4 percent against the previous month.

In the first quarter, the export revenue of the main agricultural goods reached 4.59 billion USD and key forestry products 3.94 billion USD, while fishery exports were estimated at 1.69 billion USD.

Meanwhile, imports of agricultural, forestry and fishery products in the first quarter hit 7.74 billion USD, up 44.7 percent.

However, the agriculture sector saw a year-on-year reduction of 18.2 percent in trade surplus to 2.87 billion USD in the first three months of this year.

Several exports with revenue during January-March that were higher than in the same period last year included rubber, tea, fruit and vegetables, cassava, shrimps and timber, according to the ministry.

Revenue surged by 116 percent to 721 million USD for rubber, 41.5 percent to 3.7 billion USD for timber and wooden products, and 49.2 percent to 199 million USD for rattan, bamboo and sedge products.

There were some products that saw a decrease in export value, such as coffee (down 11.3 percent to 771 million USD), rice (17.4 percent to 606 million USD), cashew (5.8 percent to 634 million USD) and tra fish (pangasius) (2.6 percent to 373 million USD).

In terms of export markets, Asia accounted for 54.4 percent of total exports, followed by America at 32.2 percent and Europe at 11.8 percent.

Exports to Vietnam’s four main markets, namely the US, China, Japan and the Republic of Korea, recorded growth rates of 45.8 percent, 39.5 percent, 3.4 percent and 9.5 percent, respectively.

The ministry said to increase the exports, it will promote international trade promotion activities. At the same time, it will help export firms implement market regulations and overcome technical barriers in agricultural trade in key export markets.

It will also update notices and warnings from trading partners and the World Trade Organisation (WTO) member countries.

For the domestic market, the ministry will collect information about prices, production and supply of agricultural products in localities nationwide, especially localities directly affected by the COVID-19 pandemic./.

Thailand’s leading industrial group considers Vietnam top priority market

Siam Cement Group (SCG), one of Thailand’s leading industrial companies, has earmarked Vietnam as its top priority market in the coming years.

“I think, at this point, Vietnam. Maybe secondly would be Indonesia,” SCG CEO Roongrote Rangsiyopash said in an interview with the Asia Nikkei Review when asked about the group’s priority markets.

Once a petrochemicals plant comes online in southern Vietnam, the company anticipates revenue from Southeast Asia excluding Thailand would rise to 35 percent of the total from the current 26 percent, he said.

“We have several projects ongoing, some big ones like a chemicals complex in north Vietnam. That one, fortunately, has had no impact from the pandemic,” added Roongrote.

SCG is the largest cement group of Thailand. In 2011, the US’s Forbes Magazine listed SCG as Thailand’s second biggest company and at the world’s 620th position.

At a reception for Roongrote in December 2020, the then Prime Minister Nguyen Xuan Phuc said that projects such as SCG’s Long Son Petrochemicals – LSP in the southern province of Ba Ria-Vung Tau are significant to Vietnam’s socio-economic development, and appreciated the group’s effective operation in Vietnam.

He suggested the Thai group pour more investments in intensive processing, especially post-petrochemical products, and pay more attention to the Vietnamese consumption market in the context of Vietnam joining three new-generation free trade agreements, namely the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP).

The Vietnamese government will create the best possible conditions for foreign investors to operate effectively and successfully in the country, especially big groups like SCG, he promised./.

Local market sees new wave of M&A deals

Despite the difficulties caused by the coronavirus pandemic, many investors are still opting to invest in the Vietnamese hotel market, spurring a new wave of mergers and acquisitions (M&A).

Some entrepreneurs active in the hotel industry said there was a firm seeking to buy multiple three- to five-star hotels in Vietnam for up to VND7 trillion.

“The firm is a new business, but has much capital and has announced its cooperation with a foreign real estate investment fund,” said an entrepreneur.

Tran Thi Thanh Tam, director of Chez Mimosa Hotel Management and Consulting Company, said that the M&A deals were done in the local market. In fact, many investors have acquired some hotels during the Covid-19 pandemic, mainly ones in provinces and cities with high tourism potential such as Dalat and Phu Quoc.

There have been more requests for finding and purchasing hotels, she said.

“We have received six requests for the purchase of hotels from two groups from Dubai and India and other local investment funds and individuals,” said Tam.

“Data from online hotel room booking channels indicated that some 2,000 small hotels in Vietnam had shut down due to the pandemic,” Tam said, adding that despite multiple difficulties, the hotel market still had potential, urging M&A deals.

A number of domestic and foreign investors are seeking to purchase hotels. Besides, foreign investors want to buy four- or five-star hotels or land lots to develop hotels in Vietnam’s major cities such as Danang, Hanoi and HCMC, said real estate advisor Savills Vietnam.

“The demand from international investors to acquire hotels in Hanoi and HCMC is great,” said Su Ngoc Khuong, investment director at Savills Vietnam.

However, even though foreign investors are eyeing four- or five-star hotels as Vietnam could soon reopen its door to international tourists, hotel owners are still doubtful about selling so soon.

“Many hotels have had to close down for three or four months due to few guests, but hotel owners did not sell their properties as they are expecting property prices to surge once the hotel market resumes,” Khuong said.

Travel firms need to change business mindset due to COVID-19

Travel firms that have been crippled by coronavirus outbreaks for more than a year are required to change their business strategy to adapt to the new normal if they want to survive and get back on track once the COVID-19 pandemic is completely brought under control, according to industry insiders.

Coronavirus outbreaks have exerted a profound impact on the development of the tourism industry and they are considered a big test for local travel firms. With the preferences of domestic tourists undergoing rapid changes, the firms have no choice but to constantly update information, interact with customers in an effort to capture trends, and adjust their business strategy.

Hoang Nhan Chinh, head of the Tourism Advisory Council (TAB) Secretariat, says the TAB’s statistics indicate that 83% of surveyed people are willing to travel within the next seven months, mostly summer months. Indeed, visitors are more interested in a flexible policy regarding tour cancellations rather than discounts and new products.

These survey results prompts Chinh to advise local tourism businesses to devise a flexible policy on tour cancellations in an effort to suit small groups and families, while promotional and stimulus schemes should be long-term with a specific focus on providing tourists with exciting experiences.

Since the initial outbreak of the pandemic, consumers have been increasingly taking to digital platforms to book travel services. In 2018 online bookings accounted for 19% of the total tours and market size, although the COVID-19 epidemic has made the use of mobile devices and digital tools even more essential. The TAB’s latest survey also indicates that the demand of tourists for online services is now higher than for direct bookings.

Local firms should be also flexible and highly adaptable by converting forms of marketing, consultation, sales, and customer care services through online and digital platforms so as to attract a greater number of customers, Chinh suggests.

A recent report produced by consulting firm McKinsey & Company reveals that, providing online travel agencies offer booking services via text or social media platforms, it will present an opportunity for them to increase their overall market penetration.

Nguyen Van Tai, director of Vietsense Travel Company, says the deployment of digital marketing solutions has enabled the firm to reach more customers, shorten processing time, and reduce costs. Additionally, he notes, social networks help travel agencies to connect customers better and provide swift and accurate consultations.

Nguyen Tuan Anh, vice chairman of UNESCO Travel Club, underscores the importance of strengthening connectivity among enterprises, associations, and localities as a way in which to help them overcome the current challenging period.

Thai retailer to invest additional US$1.1 billion into Vietnam market

With a target to further expand its footprint in Vietnam as a high-potential market, Thailand’s Central Retail Corporation Public Company Limited (CRC) has come up with a five-year plan with an investment value of approximately THB35 billion (about US$1.1 billion) to cover 55 provinces nationwide.

Yol Phokasub, Chief Executive Officer of CRC, revealed in a statement on April 2 that “CRC is forging on with a business expansion in Vietnam.

“Thanks to a strong collaboration from all sectors, Vietnam has emerged from the COVID-19 pandemic with a GDP (growth rate) of 2.91%, the lowest growth for the market but still a positive growth compared to other countries where the economy was hit hard globally with an average GDP reported at -4.4%. It is predicted that Vietnam’s economy is set to bounce back to 6.8% in 2021.”

According to the company, Vietnam’s service sector posted a 2.34% growth, led by wholesale and retail trade with a 7% YoY growth in Q4/20, contributing 33.5% to the economy. It is also expected that the service sector will continue to grow steadily in 2021. This makes Vietnam one of the fastest growing and most lucrative markets in the world.

“Throughout CRC’s nine-year operation in Vietnam, food remains a significant category, contributing to approximately 70% of the total revenue. The company aims to elevate Vietnam’s retail sector while developing the ecosystem to serve as a ‘Central Retail Lifestyle & Food Platform’, solidifying the non-food category and enhancing the omnichannel platform. At the same time, CRC will continue our sensible and resilient way of doing business to create sustainable growth and carry on the vision of contributing to the country’s prosperity while improving people’s quality of life,” Phokasub added.

Apart from expanding businesses across Vietnam, CRC also aims to enhance the customer experience through the development of its omnichannel platform including online sales channels such as Nguyenkim.com and Supersports.com.vn; e-commerce platforms such as Lazada, Shopee and TIKI; quick commerce such as Grab, Chopp, Now.vn. and Baemin; social commerce (Chat & Shop) such as Zalo; as well as “Hotline” and “Click and Drive” services.

In 2020, Big C developed omnichannel services in response to the COVID-19 crisis with a 5% sales contribution at the end of 2020 from 0% at the beginning of the year, while Nguyen Kim experienced a 8% proportion.

Currently, the company welcomes an average of 175,000 customers per day at 37 malls and over 230 stores across 39 provinces nationwide.

Philippe Broianigo, Chief Executive Officer, Central Retail Vietnam, said, “CRC has set up a five-year roadmap with key focuses to expand multi-concept penetration in all clusters across city centers, sub-urban and rural areas; revamp brands in the food category for better synergy and an enhanced customer experience; build brands for the non-food category and develop the omnichannel platform.”

In 2016, Central Group became the new owner of Groupe Casino’s Big C Vietnam chain after forking out US$1.14 billion. This was one of the mergers and acquisitions mega-deals that shaped Vietnam’s retail space at the time.

In 2020, CRC opened four GO! Malls in Tra Vinh, Quang Ngai, Buon Ma Thuot, and Ben Tre, rebranded Big C to GO! adding five more branches, while opening the first branch of GO! Supermarket in Tam Ky in Quang Nam Province to target rural customers.

In 2021, CRC continues its business expansion with an investment value of approximately THB6 billion. Under the property category, the company will open four GO! Malls in Thai Nguyen, Ba Ria, Thai Binh and Lao Cai. Under the food category, it will open four GO! Hypermarkets, one mini GO!, and rebrand Big C to eight GO! Hypermarkets and seven Tops Markets.

The company’s long-term plan is to expand the businesses covering 55 provinces nationwide within five years.

VND111.5 trillion needed for key projects in Khanh Hoa for next five years

The central coastal province of Khanh Hoa will need over VND111.5 trillion to develop key projects in the next five years to attract more investors and improve the quality of life of residents.

The investment in the key projects will contribute to developing Khanh Hoa Province into a centrally-governed city in line with the national urban classification plan for the 2021-2030 period approved by the prime minister on February 24, the provincial Department of Construction said in its plan for urban development in the 2021-2025 period.

Tran Nam Binh, director of the provincial department, said that of the proposed total capital, VND48.2 trillion sourced from the public investment plan will be allocated to its parts, with Nha Trang City set to receive some VND15 trillion. Cam Ranh City might be allocated over VND2.1 trillion, while Ninh Hoa Town will have over VND530 billion for its projects.

The remainder totaling more than VND63 trillion will be raised from foreign and local private sources, the local media reported.

The Khanh Hoa government will offer multiple preferential policies in the coming months to attract more investors, said Binh.

Some key projects prioritized for development in the coming years comprise three hospitals with a total cost of VND1.1 trillion, a provincial museum, infrastructure systems aimed at disaster risk management requiring a cost of VND4.6 trillion and an anti-saline intrusion dam in the Cai River.

Director of the Khanh Hoa Department of Transport Nguyen Van Dan said that it was necessary to rebuild and expand several streets and upgrade light systems in some parts of the province to meet the demand from residents due to the rapid population growth in the next five years.

Khanh Hoa Province covers over 5,100 square kilometers of land and has some 1.2 million people. The province boasts potential for tourism growth and is the south-central region’s culture-economic center.

The province has set a target to welcome over five million tourists and make VND17.5 trillion in revenue from tourism this year.US$28.6 million proposed for railway investment to improve logistics

The Commission for the Management of State Capital at Enterprises has announced that it has petitioned the Ministry of Transport to allocate VND665 trillion (US$28.6 million) for railway investment in the period of 2021-2030.

Specifically, in a document to voice its opinion about the draft plan on the railway network in the period, the Commission has proposed the railway sector to carefully assess the railway infrastructure especially terminals, warehouses, and approach roads.

The Commission estimated that the railway sector needs more than VND665 trillion, 17 times higher than that in the period of 2011-2020, for the upgrade of infrastructure, warehouses and connection paths.

Imports of automobiles accelerate in March

The import of automobiles increased dramatically in March, according to figures released by the General Department of Customs (GDC).

But although more and more cars are coming into Vietnam, purchasing of vehicles tends to slow at the beginning of the year.

Statistics shows that last month more than 347 million USD worth of CBU (Completely Built-up Units) were brought into the country.

This was an increase of 69.3 percent in volume and 66 percent in value compared to the previous month and almost matching the figures for the first two months combined.

In the first quarter of 2021, 35,367 cars worth 770 million USD were imported, up 31.1 percent in volume and 35 percent in value against the same period last year.

Industry insiders attributed the surge to the increasing demand of transport businesses and private use after the economy stalled due to COVID-19.

While car dealers remained cautious about the prospect of car market, many expected more positive sale figures for the second quarter given the launch of many new models.

Automobile sales has continuously declined in the first two months of the year.

The Vietnam Automobile Manufacturers Association (VAMA) reported that car sales in February 2020 stood at only 13,585 units, down 48.6 percent compared to the first month of the year.

Car purchasing power in the first month of 2021 also suffered a decline of 45 percent compared to the previous month./.

Vietcombank posts record credit growth in Q1

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) posted credit growth of nearly 3.7 percent in the opening quarter of 2021, a record high for many years, Chairman of the Board of Directors Nghiem Xuan Thanh has said.

The State Bank of Vietnam has assigned Vietcombank a credit growth target of 10.5 percent for the year as a whole.

Thanh said the expectations of businesses and economic expansion contributed to the better operations of the banking sector, as it posted credit growth of over 2 percent in the first three months.

The figure usually inches up in the opening months of the year and increases afterwards, especially in the fourth quarter, he said, projecting that after the good increase seen in the first quarter, credit growth will likely surpass the 10 percent mark this year.

Vietcombank’s bad debt ratio stood at 0.7 percent as of the end of Q1 – the lowest in the banking sector but up compared to the ratio of 0.65 percent at the end of 2020.

The State-owned bank earned a profit of about 7 trillion VND (303.59 million USD) in Q1, equal to 28 percent of its annual plan and a year-on-year surge of roughly 34 percent, while provisions for bad debts remained at 380 percent.

It posted a consolidated profit of nearly 23.07 trillion VND last year, and credit growth of 13.95 percent – the highest among Vietnamese banks./.

Vinacomin completes 26 percent of annual production plan in Q1

The Vietnam National Coal and Mineral Industries Group (Vinacomin) had fulfilled 24-26 percent of its annual production plan as of the end of the first quarter despite the adverse impact of COVID-19.

It produced 9.78 million tonnes of coal during the quarter, with 10.3 million tonnes sold.

The group’s aluminum production topped 355,751 tonnes, while electricity output totalled 2.47 billion kWh in the period.

Revenue in the first quarter was estimated at more than 28.5 trillion VND (1.23 billion USD), with 4.8 trillion VND contributed to the State Budget.

Despite the formidable challenges posed by COVID-19, the group ensured stable employment for over 96,000 workers, each of whom earned an average of 12.2 million VND per month.

Regarding upcoming missions, Vinacomin General Director Dang Thanh Hai ordered member units to strictly follow the Government and ministries’ COVID-19 measures and promote business and production activities in the new normal.

They should keep a close watch on thermal power plant demand for coal to outline coal production plans, and pay due regard to processing high-quality lump coal and coal dust to increase market share.

Hai also asked Vinacomin’s members to ensure workplace safety and social order.

In April, Vinacomin targets producing 3.5 million tonnes of coal, 112,000 tonnes of aluminium, and 970 million kWh of electricity./.

Vinhomes withdraws from series of large-scale projects

Haiphong People’s Committee announced the withdrawal of Vinhomes from a new urban project located in the North Cam River area in Haiphong city, following others in Quang Ninh and Long An.

In December 2019, Haiphong provided in-principle approval for Vinhomes to study the development of the infrastructure component of the new urban project in Thuy Nguyen district.

The prime minister approved the investment planning of the technical infrastructure project of the urban area in June 2016. The project would be complemented by Hoang Van Thu Bridge and the transport and technical infrastructure system covering numerous communes in Thuy Nguyen, Hong Bang, and Ngo Quyen districts.

The infrastructure project has a total investment capital of VND4.7 trillion ($204.35 million).

Previously, in December 2020, Quang Ngai People’s Committee issued an announcement withdrawing its permission for investors to research, survey, and prepare investment proposals for 296 projects in the area, one of which is the Binh Chau tourism and resort complex of Vingroup.

Besides, in August 2020, Quang Ninh People’s Committee also withdrew the plot allocated to a complex of golf course, tourism,  and amusement facilities and five-star hotels and resort at Khe Che Lake, An Sinh commune. The decision was also based on the proposal of the investor, Vingroup.

In addition, in July 2020, Vingroup proposed Long An People’s Committee stopped studies to build the planning of a new urban project in the province.

Quang Ninh licenses giant photovoltaic cell factory project

The government of the northern province of Quang Ninh has granted the investment certificate for a solar photovoltaic cell factory project by Jinko Solar Hong Kong Company worth US$500 million.

Work on the project, which will be developed in the Song Khoai Economic Zone in Quang Yen District, will start late this month for completion in October, Thanh Nien Online reported.

The project is the first to be approved in the economic zone since it was established on September 24 last year. The project is in line with the goal to develop Quang Ninh into a modern industry and service province and a center that will develop actively and comprehensively in the northern region.

According to the Quang Ninh government, Jinko Solar Hong Kong is one of the largest and most modern producers of solar panels in the world. In 2019, it held a 12.6% share of the global market.

The company received the investment certificate for its Jinko Solar PV Vietnam project within six days, 12 days shorter than the regulated period. The Quang Ninh government approved the project within just one day.

The factory will use new imported production lines, machinery and equipment. The project is expected to generate annual revenue of nearly US$1.3 billion on average and create jobs for more than 2,000 laborers.

Quang Ninh Chairman Nguyen Tuong Van said the province had boosted the investment attraction to increase its budget revenue and gross regional domestic product.

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

A person arranges stacks of Vietnamese banknotes. Capital has been poured into other sectors rather than banks due to their low deposit rates

According to the Department of Credit for Economic Sectors under the State Bank of Vietnam, in the first quarter of this year, the deposit growth reached only 0.54%, well below the credit growth of 2.93% and the average deposit growth of 2.28% in the first quarter of the past seven years, Lao Dong newspaper reported.

At present, the rate for savings of less than six months is 3%-4%. Meanwhile, tenors of six to less than 12 months and over 12 months enjoy a rate of 3.5%-5.5% and 4.6%-6%, respectively.

Although some banks have revised up their deposit rates by 0.1-0.4 percentage points, the banks’ average deposit rate in the first quarter remained some 2 percentage points lower than that in the same period last year.

If the trend continues, the banking system’s liquidity will no longer be ample this year, according to Bao Viet Securities Company.

Meanwhile, the General Statistics Office stated that capital had been injected into other sectors, with life insurance premium soaring 11%. Meanwhile, the securities market mobilized nearly VND55.6 trillion, surging 42% over the same period last year.

Pham Lam, vice chairman of the Vietnam Association of Realtors, attributed land fevers over the past few months partly to residents’ idle money and their expectations of higher prices of real estate products.

According to Dao Minh Tu, deputy governor of the central bank, as of mid-March, banks’ outstanding loans for the property sector grew 2.13%, higher than the current credit growth of 2.04%, despite the central bank’s close control over credit for the sector.

Market rebounds, VN-Index returns to 1,250 point-level

Shares settled higher on Wednesday, reversing their morning course on recoveries of materials and banking stocks.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) closed Wednesday’s trade at 1,255.87 points, up 7.54 points, or 0.6 per cent. The index fell 0.37 per cent in the morning trade after losing 0.33 per cent on Tuesday.

The market’s liquidity remained high as nearly 862 million shares were traded on the southern bourse, worth over VND19.3 trillion.

The index might continue to be weighed by correction pressure in the next few sessions before returning to its short-term rally, Bao Viet Securities Company’s stock analyst Tran Xuan Bach said.

“In general, the index is still expected to gain points, heading to resistance territory of 1,275 – 1,300 points in the near term,” Bach said, adding that local cash flows remain the key momentum to support the market.

The rally returned on gains of large-cap stocks in banking and materials sectors.

The VN30-Index, tracking 30 large-cap stocks on HoSE, climbed 1.05 per cent to 1,290.77 points. Twenty of the 30 biggest stocks in VN30 basket rose while nine stocks declined and one ended flat.

Hoa Phat Group (HPG) contributed the most to the market, up 5.79 per cent. Followed by Masan Group Corporation (MSN) with shares hitting the maximum daily gain of 7 per cent to VND100,700.

Other stocks listed in top five influencing the market’s rally were Vietcombank (VCB), real estate developer No Va Land Investment Group Corporation (NVL) and Vietinbank (CTG).

PetroVietnam Gas JSC (GAS), Mobile World Investment Corporation (MWG), FPT Corporation (FPT) and Vietjet Aviation JSC (VJC) also posted positive performance.

Meanwhile, losses in Vinhomes JSC (VHM), Vingroup JSC (VIC), Viet Nam Dairy Products JSC (Vinamilk, VNM) and Viet Nam Rubber Group JSC (GVR) capped the market’s gain.

VHM shares posted the biggest losses in market capitalisation, down 1.95 per cent.

Bach recommended investors keep stock proportion in their portfolio at 65 – 80 per cent. Investors with high cash ratio might consider opening long positions to increase stock proportion in correcting sessions.

On the Ha Noi Stock Exchange (HNX), the HNX-Index also edged higher on Wednesday, up nearly 0.9 per cent to 294.83 points. The HNX30-Index increased 1.13 per cent to 446.69 points.

During the session, domestic investors poured nearly VND2.7 trillion into the northern market, equivalent to a trading value of over 167 million shares.

However, foreign investors returned to net sell on both exchanges with a value of over VND1 trillion on HoSE and a net value of VND15.26 billion on HNX.

Transportation companies increase services for upcoming holiday

Transportation companies plan to increase their services to meet the greater demand during the April 30 and May Day holiday.

More trains will run on the Hanoi – Thanh Hoa, Hanoi – Vinh, and Hanoi – Dong Hoi routes on April 29 and 30.

Meanwhile, local airlines have increased flights to popular destinations to meet travel demand during the upcoming national holiday season.

Vietnam Airlines Group, including Vietnam Airlines, Pacific Airlines and Vasco, is offering 500,000 seats, equivalent to about 2,600 flights to and from Hanoi, Ho Chi Minh City, Da Nang, Quy Nhon, Da Lat and Phu Quoc, among other localities, between April 4 and May 3.

The number represents an increase of 100,000 seats compared to off-peak periods.

Bamboo Airways has plans to add about 110 to 150 flights per week, which is equivalent to 22,000 to 30,000 seats, with many routes operating at a frequency of up to four to five flights per day.

Popular routes are Hanoi/HCM City to Phu Quoc, Nha Trang, Quy Nhon or Vinh, Thanh Hoa and Hai Phong.

Low-cost tickets are mostly sold out.

Director of the Hanoi Transport Station JSC Nguyen Anh Toan said that as passenger numbers are expected to increase from the evening of April 24 to April 30, the company plans to run 500 more buses and conduct 1,050 trips a day from Giap Bat and My Dinh stations in Hanoi, an increase of around 130 percent compared to normal days, and 700 others at Gia Lam station./.

Over 8,700 retailers, auto and bike repairers leave market in Q1

Due to the Covid-19 pandemic and the strong development of e-commerce, more than 8,700 enterprises in the wholesale-retail, automobile and bike repairing sectors withdrew from the market in the first quarter of this year, up 24.5% year-on-year, according to the Business Registration Department under the Ministry of Planning and Investment.

The number was much higher than the number of suspended enterprises in other sectors.

Going online has become a trend among many retailers in HCMC and other localities over the past two to three years. The trend has grown further since Covid-19 broke out in early 2020.

Last year, more than 101,700 enterprises withdrew from the market, up 13.9% over 2019, including nearly 46,600 companies signing up to temporarily suspend operations, nearly 37,700 halting operations to complete dissolution procedures and some 17,500 being dissolved.

Among the firms that signed up to temporarily suspend operations, 17,360 were wholesale-retail, automobile and bike repairing businesses, surging 56.2% versus 2019.

The representative of a company selling paintings and souvenirs to international tourists in HCMC said his company has suspended its operations for a year to reduce losses and operation costs.

He has plans to resume the company’s operations in May or June when foreign tourists are expected to return to Vietnam. However, the pandemic remains complicated across the world, so he was unsure about his resumption plans.

In addition to Covid-19, the online business trend has caused multiple difficulties for owners of retail spaces in HCMC and other large cities to look for lessees.

Surveys of real estate companies showed that retailers in the food-beverage and fashion sectors tend to lease small retail spaces or return retail spaces.

The pandemic has forced consumers to cut their spending. As a result, multiple retail spaces in busy streets in HCMC and Hanoi have yet to find lessees.

However, wholesale and retail enterprises are those that can easily enter and withdraw from the market. They have faced many difficulties due to the pandemic which has changed consumers’ shopping habits and affected supply chains.

In the first three months of the year, more than 5,200 wholesale-retail, automobile and bike repairing businesses resumed their operations, accounting for 35.4% of the total firms returning to the market and falling 3.4% over the figure in the same period last year.

Kumho to invest over US$300 million in its Vietnam plant

South Korean tiremaker Kumho Tires has announced that it will invest an additional US$305 million to expand its manufacturing plant in Vietnam, enabling the tiremaker to double the facility’s production capacity.

The expansion project will be implemented in two years, starting from the third quarter of this year to the first quarter of 2023.

The plant, which is located in My Phuoc 3 Industrial Park in Binh Duong Province and has been operational for a decade, will be expanded by building more facilities on the vacant lot inside the plant’s compound.

Once complete, the expanded plant is expected to churn out at least 9.3 million tires per year.

Over the past years, Kumko Tire products manufactured in Binh Duong have been shipped to many parts of the world.

Kumho Tires is currently operating a number of tire manufacturing plants globally, but Vietnam is the only Southeast Asian country where the tiremaker has its facility. Aside from its plants in South Korea, Kumho Tires has also set up plants in China and the United States.

With an abundant amount of natural rubber, the surging demand for vehicles, low-cost labor, stable investment environment and other factors, Vietnam has been attracting major tiremakers to set up and expand their businesses.

Early this year, according to the Ministry of Planning and Investment’s Foreign Investment Agency, a Chinese-invested tire factory project in Tay Ninh Province had its investment adjusted upward by over US$312 million. Other large tire manufacturers such as Bridgestone, Yokohama Tyre, Maxxis and Sailun had entered the Vietnamese market, investing in large-scale projects.

Cai Mep – Thi Vai port receives vessel destined for West Coast of US

Deep-sea port SP-SSA International Terminal (SSIT) in the Cai Mep-Thi Vai port cluster in the southern province of Ba Ria-Vung Tau berthed MP The Belichick – a container vessel operated by Swiss logistics firm Mediterranean Shipping Company (MSC) on April 13.

The ship is destined for the US’s West Coast under a newly launched container service called Sentosa.

It embarked from Singapore and travels through Thailand’s Laem Chabang City and Ba Ria-Vung Tau to Long Beach City in the US’s Pacific Southwest, and will return to Singapore through China’s Shanghai, Ningbo and Xiamen cities.

The route aims to connect Southeast Asia with markets in southwestern Pacific, thus further promoting trade activities between the two regions.

Despite severe impacts posed by the COVID-19 pandemic on the global economy, Vietnam’s exports still recorded positive results, even breakthroughs.

As the demand for export to the US has risen sharply, MSC has put the above-mentioned service into operation to satisfy the demand.

According to the General Statistics Office, the US remained the largest importer of Vietnamese goods in the first quarter of 2021, with turnover of 21.2 billion USD, up 32.8 percent year-on-year./.

Technology ushers in more online borrowers

Statistics indicated that the number of consumer loans at commercial banks, financial firms and fintech companies still increased steadfastly during the Covid-19 pandemic.

Middle-income customers’ demand for consumer loans has increased stably. A representative of ATM Online, a fintech company active in online lending, said that the firm received an average of 4,000 requests for borrowing each day.

Data from the fintech company showed that as of end-March, among 400,000 customers using financial services at ATM Online, over 50% of them had got two loans or more. The data also indicated that 30% and 10% of the total had got three and five loans or more, respectively.

“The number of return customers is high, proving that customers knew how to take advantages of convenient services provided by fintech firms,” said Do Minh Hai, director of ATM Online.

However, to help customers manage their money, fintech firms and their partners only offer one loan at a time. Customers only get another when their existing loans have been settled, according to the leader of ATM Online.

One main reason behind the increasing number of consumption loans is loan disbursement technology. On ATM Online’s platform, return customers’ requests for loans are handled within two minutes each, while a request from new customer is handled within 7-15 minutes.

These loans will be disbursed automatically and quickly if customers provide correct information and cooperate with the platform during the appraisal process, said the ATM Online representative.

Apart from automatic disbursement, customers can repay loans easily. ATM Online has also cooperated with some partners that offer e-payment gateways to make it easier for customers to make payments. Accordingly, ATM Online deploys a payment method based on personal accounts, so each customer will be provided with one bank account by its partner bank. With these accounts, customers can make monthly payments via their smartphones or laptops/computers. Transactions will be conducted immediately on the system.

Last year, management agencies repeatedly warned residents of scams through financial products. Besides, hackers also targeted online loans. Many scammers used fake identification cards to get loans.

To prevent frauds and scams, ATM Online and its partners have invested in electronic identity verification, face recognition, optical character recognition and voice recognition solutions.

With data from browser queries, ATM Online records customers’ interactions when using computers or smartphones to send a request for loans. These data, which are encrypted and analyzed, coupled with personal information, help determine whether customers are the authentic subjects or not.

“ATM Online’s scoring system, with 15 variables from the beginning, has seen credit score synthesized from over 300 variables with high accuracy after three years of operation, driven by thick customer data,” Hai said.

Aside from convenience and “anti-risk hedge” made possible by technology, improving service quality and helping customers know online lending products contribute to retaining customers. In 2020, ATM Online focused on upgrading experience and updating knowledge for customers on its services via the 14-day cooling-off period program applied to new customers.

Specifically, borrowers had 14 days to consider the loan that they registered and applied for. They could return the sum of money that was disbursed if they did not want to borrow any more. They would be exempt from interest rate, consulting and service fees during the 14-day period.

Last year, in addition to offering loans valued at VND3-12 million, ATM Online provided customers with a super-small loan worth as low as VND900,000. “The fintech lending firm expected the specially-designed loans to help customers get to know online lending products and experience services at ATM Online more proactively,” Hai said.

Major projects drive recovery of FDI inflow

In the first quarter of 2021, foreign direct investment (FDI) pledges to Vietnam recorded positive growth for the first time since the flare-up of the Covid-19 pandemic.

This is the result of Vietnam’s success in containing the pandemic and reflects foreign investors’ confidence and high expectations about Vietnam’s economic prospects.

On the final day of the first quarter, the Quang Ninh government granted investment licence to a US$500 million photovoltaic cell project by Jinko Solar from Hong Kong (China), one of the largest manufacturers of solar panels in the world with 12% of the global market. The company made two inspection tours in Vietnam and finally decided to choose Song Khoai Industrial Park for its manufacturing facility.

The first three months of 2021 also saw other enormous projects, including the Long An LNG I and II power plants by Singaporean investors with a total investment of US$3.1 billion, and the O Mon II thermal power plant by a Japanese investor with a total capital of US$1.31 billion.

In the manufacturing sector, an additional US$750 million was invested in the LG Display project in Hai Phong while Bac Giang Province saw US$293 million poured into a project by Fukang Technology to produce tablets and laptops.

According to the Ministry of Planning and Investment (MPI), FDI disbursement during the January-March period increased by 6.5%. For foreign investors in Vietnam, the recovery is clearly seen in their contributions to Vietnam’s total exports. Specifically, the foreign sector posted a trade surplus of US$8.8 billion, offsetting the trade deficit of US$6.7 billion by domestic enterprises to help Vietnam register a trade surplus of over US$2 billion.

Data by the General Statistics Office show that manufacturing accounts for the largest share of FDI into Vietnam, at 58.5%, and is the main driver of economic growth. In the first quarter of 2021, total FDI pledges to Vietnam rose by 18.5% after two consecutive months of decline.

According to the MPI’s Department of Foreign Investment, the transition from the 2014 Law on Investment to the 2020 Law on Investment, which took effect on January 1, 2021, has affected foreign investment in Vietnam.

In addition, the return of Covid-19 in many countries and in Vietnam also affected investors’ travel along with their decisions on new investments. Therefore, the number of new projects, capital adjustments and share purchases continues to fall compared with the same period but the decrease has improved.

A positive point is the wave of high-tech companies with a series of projects by Samsung, Foxconn, Luxshare and Intel having been put into operation, in addition to moves by many major technology companies to learn about the investment opportunities in Vietnam.

Besides establishing a working group to welcome large companies, the Prime Minister recently issued a decision on the criteria of a high-tech company, replacing those already in place since 2015. The most significant change is that a company is to be classified as high-tech if its revenue from high-tech products accounts for at least 70% of its annual revenue. The decision also stipulates the portion of spending on research and investment depending on the company size, which provides much more favourable conditions for enterprises.

In order to realise the Politburo’s resolution on fine-tuning institutions and policies to enhance the quality of foreign investment until 2030, the MPI is soliciting opinions from the relevant ministries and agencies on special incentive policies, which are expected to cover innovation centres, research and development projects, projects larger than VND30 trillion (US$1.3 billion) and those with disbursement of VND10 trillion (over US$400 million) in three years.

High logistic costs hinder Delta agriculture exports

Agriculture exports from the Mekong Delta are facing logistical challenges, affecting their competitiveness overseas.

Dong Van Thanh, Chairman of the Hau Giang provincial People’s Committee, said the Mekong Delta exports millions of tonnes of agriculture products every year but the region is facing many logistical choke-points.

The region is lacking key logistics hubs and storage areas for empty containers and products at ports. Goods have to be transported through many areas before reaching HCM City for export, which increases the cost.

Ngo Tuong Vy, Deputy Director of the Chanh Thu Fruit Export and Import Co. Ltd in Ben Tre province, said that the cost of air transport of fresh fruits to the US and European markets have increased greatly over the years.

For example, the cost for air shipping fresh fruits to the US used to be around 3.5 USD per kilo a few years ago, but now has risen to 6 USD per kilo.

This is affecting their competitiveness overseas and reducing the amount of fruit shipped there.

However, since preservation technology for many fruit products is not good enough, they have to rely on air transport.

The cost of ocean transport of fruit is 15 times cheaper than air, so better preservation technology to maintain quality on longer container trips is important, she said.

Pham Tien Hoai, General Director of the Hanh Nguyen Logistics, said that the logistics costs of Vietnam’s agricultural products are high, usually accounting for around 30 per cent of their final prices, so they struggle to compete with goods from other suppliers such as China, Thailand and Indonesia.

Vo Thanh Phong, general director of Hau Giang Maritime Service Co. Ltd, said the Government needs to continue its effort to improve and enlarge waterways in the Mekong Delta so that large vessels can easily travel through different regions, reducing transport time and costs.

Le Tien Chau, provincial party secretary of Hau Giang, said that for 2021 – 2026 the province will invest around 18 trillion VND (777.99 million USD) to improve traffic infrastructure and region connectivity.

Every year the Mekong Delta accounts for 90 percent of the country’s rice exports, and 70 percent of fruit exports./.

Transport Ministry proposes extending support policy for transport firms

The Ministry of Transport has proposed the Government extend support policies for transport firms until the end of the year and offer more support solutions to those facing difficulties caused by Covid-19.

As for road transport, the ministry proposed the Government extend its support for road maintenance fees that have been reduced by 30% on passenger coaches and 10% on trucks until the end of 2021.

It is necessary to offer more support solutions for road transport firms to help them recover after the coronavirus pandemic, including reducing value-added tax to zero and corporate income tax by half and extending debt payment deadlines, according to the ministry’s proposal.

Other support solutions proposed by the ministry included a 50% reduction on services at coach stations, a 50% cut in registration fees for vehicles used for transport operations and exemption from parking fees at train stations, seaports and airports. These cuts should be valid until the end of the year.

Regarding aviation transport, the Ministry of Transport proposed the Government allow extending the policies of slashing the fees of take-off and landing services by 50% and applying the lowest price at VND0 for some aviation services until the end of 2021.

In addition, the State Bank of Vietnam should consider offering support solutions related to credit, interest rates and payment deadlines, the local media reported.

Apart from this, the ministry proposed prioritizing Covid-19 vaccination for Vietnamese sailors, navigators and those who work directly with ships and putting Vietnamese sailors whose work contracts expired and who were stuck in foreign countries on the priority list for repatriation flights.

Japan’s Enshu Railway to build software development unit in Vietnam

Japan-based Enshu Railway Co., Ltd. will invest in the establishment of a subsidiary focusing on software development in Vietnam in July.

As reported by Kyodo News, the Hanoi-based unit, Entetsu Vietnam Co., will be capitalised at 30 million yen (US$274,000) and become operational in August.

The subsidiary will be engaged in developing web-based information technology systems and smartphone apps and creating websites in order for its parent to upgrade its services.

Enshu Railway, which has a track record of hiring foreign students as full- and part-time employees in IT-related departments at its head office in Hamamatsu, plans to employ local engineers for the subsidiary.

With its launch, the company will close its representative office in Hanoi, which was opened in March last year.

The Japanese firm also runs bus and other transportation services mainly in the Hamamatsu area in Shizuoka prefecture.

Under its three-year business plan through last March, Enshu Railway pursued diverse lifestyle and daily living services that also involved the real estate, insurance, nursing care, retailing and leisure sectors while promoting in-house digital transformation. But its business, particularly in the mainstay transportation sector, has been hit by the COVID-19 pandemic.

Majority of family businesses in Vietnam lack digital capabilities

The lack of the digital tools and capabilities that are needed for a rapidly changing world will present significant challenges to family businesses in protecting their legacy.

Only 30% of Vietnamese family businesses said they have strong digital capabilities, as compared to 38% globally, while a mere 9% say that their digital journey is complete.

The information was revealed in the 10th PwC Global Family Business Survey conducted from October 5 to December 11, 2020, of which the key decision-makers of 33 family businesses in Vietnam participated in an online interview.

This slow progress could be tied to the reportedly high levels of resistance to embracing change within the company, as revealed by 67% of respondents, added the report, saying this is significantly higher than the perceived sentiment of regional peers, at 29%, and global peers, at 33%.

“The lack of the digital tools and capabilities that are needed for a rapidly changing world will present significant challenges to family businesses in protecting their legacy,” said Johnathan Ooi, private business services leader at PwC Vietnam.

“Moving faster along the digital journey will require more than just bridging the technology gap. Transformation must be a part of a cultural shift that is supported by highly engaged leaders, as well as a commitment to upskilling the workforce,” he added.

Meanwhile, the report also revealed 65% of the surveyed Vietnamese family business predict growth in 2021.

The view for 2022 is more positive, with three out of four respondents saying that they are optimistic about growth, and 33% anticipating that the growth will be “quick” and “aggressive” – higher than the regional and global responses, which stand at 28% and 21%, respectively.

In keeping with such growth aspirations, the findings also reveal that business expansion and technology adoption are the key priorities. 55% of the respondents confirmed a focus on bringing new products and services to the market, with 52% on the increasing use of new technology. Given that the global pandemic is marking permanent changes, the rethinking or adaptation of new business models is also top of mind for 52% of respondents.

There are also apparent shifts towards business diversification and more externally managed structures for family businesses. Within five years, 45% of Vietnamese family businesses are aiming to become more diversified, highlighting the need for sustainable revenue streams for future disruptions.

The current operating model – which centres on businesses that are owner-managed and family-managed – is expected to shift towards a “family-owned / externally-managed” or “externally-run” model, increasing from 12% to 60% over the next five years.

Over half (52%) of Vietnamese family businesses expect that the next generation will become majority shareholders within five years’ time. However, only 36% of respondents claim to have a formal succession plan in place.

“Family businesses are having to navigate a faster pace of change than ever before. An equal focus should be placed on strategic planning and succession planning. Making a head start in this area will therefore be helpful for the next generation. They will be equipped with the necessary tools to drive the business forward and in the right direction,” noted Ooi.

The report also shed light on the growing need for Vietnamese family businesses to factor ESG (Environmental, Social, and Corporate Governance) credentials into their plans for securing their legacy.

In a year in which businesses have had to transform the ways they meet the needs of society and the environment, falling behind in terms of addressing sustainability and wider EGS issues could create a potential business risk, noted the report.

While the majority of Vietnamese family businesses (85%) are reportedly engaged in some form of social responsibility activities, issues relating to sustainability are currently far down the list of priorities. Only 21% of the surveyed family businesses feel that there is a responsibility to fight climate change, versus 50% in both Asia Pacific and globally.

“The world is changing, and so is the formula for lasting family business success. Tomorrow’s family businesses require a new approach to enhancing their legacy – one that is based on keeping ahead of digital transformation, with a greater focus on sustainability goals, and professional family governance,” Ooi commented.

Quang Ngai prioritises investment promotion for supporting industries

Supporting industries will be a focus of an investment promotion plan released by central Quang Ngai province for 2021.

It has earmarked close to 2.2 billion VND (95,500 USD) to implement activities to attract investment to local projects in supporting industries, petrochemicals, high-technology, seaports, logistics, clean technology, hi-tech agriculture, urban infrastructure, and tourism and services.

The province also wants to lure more investment this year into housing, services, and utility development projects for workers at the Dung Quat Economic Zone and local industrial parks.

According to the Dung Quat Economic Zone and Quang Ngai Industrial Parks Authority (DEZA), it will invite new investors to set up business in the province this year via existing investors and provide support in regard to site clearance and public administration services.

It will also help enterprises tackle the challenges and speed up the progress of licensed projects while offering all possible conditions for luring new capital, it said.

The province plans to hasten the progress of a number of projects, including an industrial, urban, and service complex at the Vietnam-Singapore Industrial Park (VSIP) Quang Ngai, the Dung Quat Refinery expansion, the Hoa Phat Dung Quat Iron and Steel Integrated Complex, and gas-fuelled power projects at the Binh Hoa – Binh Phuoc Industrial Park.

It will review delayed and inefficient projects to identify supportive measures or revoke licenses if required, while action will be taken to further better the business climate, accelerate public administration reform, and bring in medium- and large-scale investment projects, especially those in supporting industries that use high-technology and are environmentally friendly.

A number of investment promotion and business-matching events are also in the pipeline.

As of the end of February, Quang Ngai was home to 61 valid FDI projects with combined investment of nearly 1.97 billion USD, and 668 domestic projects, excluding those in real estate, worth close to 295 trillion VND./.

Foreign merchants register to purchase lychees in Vietnam

Luc Ngan District estimates that the total lychees harvested this year would reach 120,000 tons, a year-on-year increase of 41 percent.

Meanwhile, many foreign traders have registered to enter Vietnam to buy lychees from Hai Duong province.

Hai Duong is expected to harvest around 45,000-52,000 tons of lychees this season.

Hai Duong Province’s total area for lychee cultivation is 10,000 hectares, of which 3,300 hectares are in Thanh Ha District, 3,600 in Chi Linh Province, and the rest in other localities.

Vietnam Furniture Matching Week kicks off in HCM City

The Vietnam Furniture Matching Week, held by the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), kicked off in the southern city on April 14.

Various online and offline events will be arranged until April 19 to foster trade opportunities between Vietnamese manufacturers and foreign buyers.

More than 10,000 products are being showcased at a virtual exhibition at hopefairs.com. The platform also hosts numerous webinars and broadcasts by HAWA and foreign partners.

HAWA President Nguyen Quoc Khanh said the Vietnam Furniture Matching Week is hoped to address bottlenecks in trade activities in the world’s furniture market, which has been hindered by COVID-19.

A highlight of the trade show is the “Furniture Sourcing Day” on April 14, with the participation of over 400 representatives of foreign buyers, producers, and businesses in the handicraft and wood industry.

Furthermore, two major symposiums focusing on the building of firm management systems to meet sustainable purchasing demand, and export opportunities for wooden products and handicrafts via Amazon will be held to pass on information to local firms./.

SBV Governor calls for credit growth, quality

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has requested that credit growth be achieved in tandem with improving credit quality, with a focus on manufacturing and priority areas.

During a teleconference in Hanoi on April 14, Director of the SBV’s Credit Department for Economic Sectors Nguyen Tuan Anh said that as of March 31, the economy’s outstanding debts had surpassed 9.46 quadrillion VND, up 2.93 percent from late 2020.

Credit growth in agro-forestry-fisheries reached 2.42 percent, industry 3.04 percent, and real estate 3 percent. Meanwhile, credit in securities hit 45.3 trillion VND (1.96 billion USD), down 1 percent from late 2020.

Hong said the SBV has set credit growth at nearly 12 percent this year, with credit in areas of risk to be brought under control.

Violations of banking activities have been mostly found in credit activities. At present, total outstanding debts are equivalent to 140 percent of the country’s GDP.

As of late March, banks had restructured debt repayments for nearly 263,000 customers with outstanding debts of more than 353 trillion VND, and exempt or cut interest rates for over 660,000 customers with more than 1.27 quadrillion VND. Credit organisations have lent over 3 quadrillion VND to more than 452,000 clients since January 23.

In the near future, Anh said the SBV will realign monetary policy with macro-economic and monetary developments as well as the pandemic situation at home and abroad.

At the same time, it will closely control credit in areas of risk, such as securities, real estate, and build-operate-transfer (BOT) and build-transfer (BT) transport projects, while managing risks in lending.

The SBV will prioritise the provision of higher credit quotas for credit organisations that actively reduce lending rates and also encourage financial companies to cut lending rates.

The sector will tackle the difficulties faced by customers who were hit by COVID-19 and natural disasters.

Credit institutions were asked to continue creating favourable conditions for individuals and businesses to access credit, and to work with localities to step up a programme connecting banks with companies./.

Vietnam Airlines to open six new routes in peak season

Vietnam Airlines is set to expand its domestic flight network between April 24 and August 31 to meet the higher demand during the summer’s peak travel season.

The national flag carrier will open six new routes: Da Nang – Vinh, Phu Quoc – Can Tho, Phu Quoc – Nha Trang, Phu Quoc – Buon Me Thuot, Phu Quoc – Hue, and Phu Quoc – Thanh Hoa.

Da Nang – Thanh Hoa and Can Tho – Buon Me Thuot flights will be resumed.

The Da Nang – Thanh Hoa, Phu Quoc – Can Tho, Phu Quoc – Nha Trang, and Phu Quoc – Hue routes will have four round-trip flights a week, on Monday, Wednesday, Friday, and Sunday.

Three round-trip flights a week will be conducted on Tuesday, Thursday, and Saturday on the Da Nang – Vinh, Can Tho – Buon Me Thuot, Phu Quoc – Buon Me Thuot, and Phu Quoc – Thanh Hoa routes.

Since May, the carrier has opened 28 new routes, most of which fly to famous tourist destinations, raising its domestic flight network to 67 routes. The move aims to stimulate domestic travel after the recent resurgence of COVID-19 was brought under control./.

Can Tho city hosts third VietShrimp fair

The third VietShrimp Aquaculture International Fair, focusing on technology in Vietnam’s shrimp industry, opened in the Mekong Delta city of Can Tho on April 14.

With the theme “Sustainable Destination”, the three-day fair features close to 200 pavilions from some 150 domestic and foreign firms involved in aquaculture.

A number of symposiums will also be held to introduce effective production models and orientations and solutions to sustainable shrimp farming.

President of the Vietnam Fisheries Society (Vinafish) and head of the organising board Nguyen Viet Thang said the fair aims to promote the achievements of the sector over the years, as well as help companies cooperate, expand markets, and introduce new farming technologies, in the hope of ensuring the efficient and sustainable development of Vietnam’s shrimp sector.

According to the Ministry of Agriculture and Rural Development, Vietnam has more than 200,000 ha of hi-tech shrimp farming areas, primarily in the two Mekong Delta provinces of Bac Lieu and Soc Trang.

The sector targets producing 930,000 tonnes of brackish water shrimp this year, raking in 4 billion USD from exports.

With average growth of 7 percent in the global shrimp sector, the world’s total shrimp output is expected to hit 15 million tonnes by 2045. Vietnam may take the lead in shrimp production and processing by that time, accounting for a quarter of the global share with an output of nearly 4 million worth 20 billion USD./.

Hoa Phat becomes Vietnam’s biggest steelmaker

The Hoa Phat Group has surpassed Hung Nghiep Formosa Ha Tinh to become Vietnam’s largest steel producer after it produced 2 million tonnes of crude steel in the first quarter of this year, a 60 percent increase year-on-year.

Hung Nghiep Formosa Ha Tinh took the second spot with output of 1.62 million tonnes, 20 percent lower than Hoa Phat.

In March alone, Hoa Phat produced 700,000 tonnes of crude steel, up 56 percent year-on-year and its highest-ever output for a month. It continued to take the leading position in terms of construction steel and steel pipe, with market shares of 33.8 percent and 30.19 percent, respectively.

The group’s crude steel production has reached over 8 million tonnes a year, including over 5 million tonnes of construction steel and 3 million tonnes of hot rolled coil (HRC). Of the total, the Hoa Phat Dung Quat Steel Integrated Complex is the largest producer, with annual production of 5.2 million tonnes, followed by the Hoa Phat Hai Duong Steel Integrated Complex with 2.5 million tonnes a year.

Its steel mill complex in Hung Yen province has a capacity of 400,000 tonnes a year. When the Hoa Phat Dung Quat 2 project comes into operation, the group’s crude steel output is expected to reach 14 million tonnes a year.

Hoa Phat is currently among the 50 largest steel companies in the world and the largest in Southeast Asia./.

Dong Nai aims to attract 700 million USD in FDI to IPs this year

The southern province of Dong Nai plans to attract some 700 million USD in FDI to its industrial parks (IPs) this year.

Despite the negative impact of the COVID-19 pandemic, IPs in the province attracted 10 FDI projects in the first quarter of this year, while 19 others added a combined 320 million USD, hitting 46 percent of the annual plan.

Major projects include the second phase of the Hansol Electronics Vietnam project at the Ho Nai IP, with registered capital of 100 million USD; the 60 million USD factory of the Ojitex Vietnam Co. at the Loc An – Binh Son IP; and Platel Vina’s plant at the Amata IP, with 30 million USD.

Average capital stood at 19 million USD per project in Q1; higher than the 11 million USD posted in the same period last year.

Thirty-two IPs in Dong Nai are home some 1,900 projects invested by domestic businesses and companies from 41 countries and territories, of which 1,362 are FDI projects totalling 26.96 billion USD.

FDI projects in the province are mainly in machinery-devices, electronic components, garment-textiles, footwear, and plastics./.

2021 Vietnam Expo opens in Hanoi

The 2021 Vietnam International Trade Fair (Vietnam Expo), the 30th edition of its kind, opened at the Hanoi International Exhibition Centre at 91 Tran Hung Dao Street in downtown Hanoi on April 14.

Addressing the opening ceremony, Deputy Minister of Industry and Trade Do Thang Hai said since 1991, the annual event has become one of the largest trade promotion events in Vietnam’s industry and trade sector, offering chances for firms to bolster exports as well as develop the domestic market.

This year, the event attracts 320 businesses of Vietnam and five other countries and territories, who showcase their products at 300 booths.

To enhance efficiency for firms amid the adverse impact of COVID-19, activities will be held both on-site and online via e-commerce platforms. An online version of the event will run until May 14 at www.online.vietnamexpo.com.vn.

The organisers said they chose the fair’s theme spotlighting digital transformation to advocate the Government’s national programme in this direction, in the hope of creating a platform to connect the business circle to relevant solutions and applications, thus enhancing their competitive edge in production and business.

The expo also features a national space of the Republic of Korea (RoK) run by the Korea Trade Investment Promotion Agency (KOTRA) in Hanoi for the 22nd consecutive year./.

Japan’s Ube Construction Materials forms sales unit in Vietnam

Japan’s Ube Construction Materials Co. has set up a subsidiary in Ho Chi Minh City to sell waterproof agents and other construction materials in Vietnam and other Southeast Asian countries.

Ube Construction Materials, a Tokyo-based wholly owned unit of chemical giant Ube Industries Ltd., said it owns a 51 percent stake in the new local arm, Ube CT Construction Materials Vietnam Co., which has an initial capital of 753,100 USD.

The rest of the stake is held by two other Japanese companies – 37.5 percent by T. Chatani & Co., a subsidiary of chemical goods trading house OG Corp., and 11.5 percent by Koatsu Gas Kogyo Co., a manufacturer of high-pressure gas.

The waterproof materials market in Vietnam is expected to expand in line with the country’s economic growth, an Ube Industries spokesman told NNA, commenting on the establishment of the new local unit as the Ube group’s first business base in Vietnam.

Ube Construction Materials was founded in 2015 and plays a central role in the group’s construction materials business./.

Teleconference boosts Belgian investment in Binh Duong

A teleconference was held on April 14 to promote Belgian investment in the southern province of Binh Duong.

The event was co-hosted by the Becamex IDC Corp and the provincial People’s Committee.

In his opening speech, Vice Chairman of the provincial People’s Committee Nguyen Thanh Truc said as of the end of March, Binh Duong had drawn nearly 4,000 foreign-invested projects worth nearly 37.9 billion USD, ranking third nationwide in terms of foreign direct investment (FDI) attraction, only behind Ho Chi Minh City and Hanoi.

The province is now home to five Belgian projects worth over 39 million USD, ranking 37th out of 65 countries and territories investing in the locality, mostly pharmaceuticals, apparel, additives, beer and malt, and goods storage.

Vietnamese Ambassador to Belgium and Luxembourg Vu Anh Quang said amid uncertain developments caused by COVID-19 pandemic in the world, Belgium and Vietnam continue to be important trade-investment partners of each other because they serve as regional trade hubs and gateways to the European Union and ASEAN.

The two nations’ enterprises hold the potential of deeper collaboration within the framework of the EU-Vietnam Free Trade Agreement (EVFTA) and the Vietnam – Belgium strategic partnership in agriculture, he added.

The Vietnamese Government attaches special importance to the implementation of major FTAs such as the EVFTA, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP), he said, adding that FDI continues to serve as an important resource for Vietnam’s economic growth and contribute to the implementation of the 2021-2030 socio-economic development strategy with a vision to 2045 which was adopted by the 13th National Party Congress.

Belgian delegates hailed Vietnam as a significant gateway linking ASEAN with the world via roads, waterway and airway. With a widespread system of deep-water seaports capable of receiving big vessels, political stability and the Government’s business incentives, Vietnam is well-positioned to attract foreign investors.

Belgium now invests in 78 projects valued at 1.1 billion USD in Vietnam, placing 23rd out of 131 countries and territories investing in the country, predominantly in seaports, infrastructure, logistics, real estate, water supply and drainage, waste treatment, manufacturing and processing, electricity production and distribution, agro-forestry-fisheries, which are strength of Binh Duong.

The European nation is also Vietnam’s fifth largest importer in the EU, behind Germany, the Netherlands, France and Italy while Vietnam is Belgium’s second largest trade partner in ASEAN, behind Singapore. Two-way trade reached 2.83 billion EUR last year, 633 million EUR of which was Belgium’s exports./.

Shrimp sector sets sights on US$4 bln export target in 2021

The Vietnamese shrimp sector is aiming to boast a brackish water shrimp farming area of approximately 740,000 hectares with a total output of 930,000 tonnes and an export turnover of US$4 billion during the course of this year.

The event offers an ideal venue for managers, scientists, traders, and farmers to share and introduce various new technology products and advanced models, strengthen connectivity between producers and consumers, while elevating the image of Vietnamese shrimp in the global market.

Nguyen Viet Thang, chairman of the Vietnam Fisheries Association, said despite the impact of the novel coronavirus (COVID-19) pandemic, local shrimp export turnover reached over US$3.7 billion last year.

Currently, Vietnam is home to roughly 200,000 hectares of hi-tech shrimp farming, the majority of which is in the two provinces of Bac Lieu and Soc Trang in southern Vietnam.

Statistics show with the global shrimp industry averaging an annual growth rate of some 7%, total global shrimp production is anticipated to reach 15 million tonnes by 2045.

Many industry experts said Vietnam could become the world’s leading shrimp producer and account for about 25% of the global shrimp market share with an output of four million tonnes of raw shrimp worth US$20 billion by 2045.

This prediction can come true if they said proper strategies are implemented in order to develop the domestic shrimp industry in a sustainable manner, whilst also adapting to issues relating to climate change and making efforts to protect the environment.

Tran Dinh Luan, director general of the Directorate of Fisheries in Vietnam, noted recent years has seen several effective shrimp production models implemented, attracting a host of groups and companies to get involved in the value chains of the local shrimp industry.

Luan also pointed out that with proper strategies, the shrimp sector is expected to gross an export turnover of between US$3 billion and US$ 4 billion, or even as high as US$6 billion, in the near future.

The international fair will offer an opportunity for managers, businesses, and localities to gain greater access to the latest technologies in order to develop the shrimp industry in a sustainable manner, Luan said.

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