Vietnamese economy

Taiwan has mainly imported from Việt Nam frozen/fresh tiger and white-leg shrimp and frozen pangasius fillet. Photo baodansinh.vn

HÀ NỘI — The Taiwan Food and Drug Administration (TFDA) has announced a list of 697 Vietnamese seafood enterprises permitted to export their products to Taiwan, reported the Việt Nam Association of Seafood Processors and Exporters (VASEP).

This list of eligible Vietnamese seafood enterprises is valid from February 23, 2021, according to the TFDA’s announcement sent to the Việt Nam Economic and Cultural Office in Taipei, the association said.

The VASEP said Taiwan is not among the top 10 seafood export markets of Việt Nam. But this market also has a relatively stable seafood import value from Việt Nam with more than US$100 million per year, accounting for 1.3 to 1.8 per cent of national total seafood exports in recent years.

This market mainly imports frozen/fresh tiger and white-leg shrimp, frozen pangasius fillet, processed shrimp, surimi, squid and octopus from Việt Nam.

However, due to the COVID-19 pandemic, seafood export turnover to this market in the first half of 2020 decreased by 14 per cent compared to the same period the year before, reaching $50.5 million. Of which, the export value fell by 18 per cent for shrimp to $27 million, 27 per cent for pangasius to nearly $10 million and 4 per cent for other seafood products to $22 million.

According to the General Department of Customs, in 2020, Việt Nam’s seafood export value to Taiwan was $120 million.

Before the pandemic, Nam Việt Joint Stock Company gained an export value of between $5-6 million each year from exporting pangasius to Taiwan.

However, since due to the worldwide COVID-19 outbreak, the company’s seafood exports to Taiwan have declined. Therefore, it has focused on key markets such as the US and the EU or potential markets in Asia like Thailand and Malaysia that have similar value exports and are also members of the CPTPP agreement, Đỗ Thị Thu Thủy, Nam Việt’s business manager, said.

The Thuận Phước Fishery and Trading Joint Stock Company has also faced a reduction in seafood exports to Taiwan due to lower purchasing during the pandemic.

The company will focus on larger markets and ignore this Asian market, said Trần Văn Linh, Thuận Phước JSC chairman.

According to experts, it is completely reasonable for local seafood enterprises to focus on major markets. The attraction from the EVFTA makes more and more businesses in the seafood industry concentrate on exploiting the European market.

However, although the export value of seafood to Taiwan is not high, the demand for seafood in this market is increasing. This is an opportunity for Vietnamese businesses.

The VASEP also noted that to export to Taiwan, the businesses’ products need small packaging, nice design and full instructions for use. In addition, when entering the Taiwanese market, they need to pay attention to advertising.

The experts say that besides the large markets, local enterprises should still maintain smaller markets. Diversifying markets will help them to achieve the long-term goal of sustainable development. — VNS

The 2021 economic census would apply information technology in implementation to increase accuracy and reduce costs. — VNA/VNS Photo Mai Phương

HÀ NỘI — The General Statistics Office (GSO) officially kicked off the 2021 economic census on Monay to have a comprehensive evaluation of the Vietnamese economy.

Carried out under the Prime Minister’s Decision No 307/QĐ-TTg dated February 27, the economic census aimed to assess the development in the number, size and labour of economic entities, production and business results, the level of information technology application, structure of economic establishments labours by localities, economic sectors and ownership forms to serve the State management.

The census also aimed to review official statistical indicators, such as gross domestic product (GDP) and gross regional domestic product (GRDP) and to develop economic database.

The 2021 census would be conducted via Web-form and computer-assisted personal interviews (CAPI).

To May 30, the survey would be conducted on business establishments, branches and representative offices of foreign enterprises, associations, organisations and licensed non-Government organisations.

From July 1 to July 30, the information would be collected for individual non-agricultural, forestry and fishery establishments as well as religious establishments.

The preliminary results would be announced in December and the official results would be announced in the second quarter of 2022.

GSO said that the economic census was a very important survey which would help provide data of all economic sectors and understand thes structure of GDP to be the premise for the calculation of GDP and GRDP with the highest accuracy.

It would reflect the situtation of the economy and of every economic sector and every locality.

GSO said that the application of information and technology in conducting the census was expected to ensure the quality of the collected data and to reduce implementation costs. — VNS

Clam processing at Lenger Seafoods Vietnam Co. Việt Nam and the UK saw impressive growth in their two-way trade though exports faced formidable challenges caused by the COVID-19 pandemic. VNA/VNS Photo

HÀ NỘI — After the UK-Việt Nam Free Trade Agreement (UKVFTA) took effect on December 31, 2020, both sides saw impressive growth in their two-way trade though exports faced formidable challenges caused by the COVID-19 pandemic.

Statistics from the General Department of Việt Nam Customs showed that total trade in goods between the two nations topped US$657.35 million in January, a year-on-year hike of 78.57 per cent. The Ministry of Industry and Trade described it as an impressive growth, particularly in the context of COVID-19.

Notably, Việt Nam’s shipments to the European country hit $598.07 million, or 84.61 per cent higher than the same time last year, and 56.51 per cent higher than December 2020. Exports of agricultural products maintained stable growth in the month, with export revenue of seafood surging 18.1 per cent to $19.72 million, and fruits and vegetables rising 148.6 per cent to $1.04 million.

Under the UK trade deal, tariffs levied on Vietnamese shrimp materials is reduced from 10-20 per cent to zero per cent, while more than 94 per cent of 547 tariff lines on Vietnamese fruits and vegetables will be cut to zero per cent.

Experts said a wide range of Vietnamese fruits like lychee, longan, dragon fruit, pineapple and rambutan will hold more advantages to access the UK market over those from Brazil, Thailand and Malaysia who have not clinched an FTA with the European country.

Việt Nam also saw strong increase in its shipments of telephone and parts (up 371.6 per cent to $252.59 million); machines, equipment and parts (up 109.9 per cent to US$74.58 million); computers and parts (up 91 per cent to $31.82 million), among others.

Meanwhile, Việt Nam spent $59.297 million on imports from the UK, up 34.3 per cent year-on-year.

Last year, total trade value between the two nations reached $5.64 billion, with Việt Nam posting positive trade balance of $4.27 billion. The UK continued to be the 3rd largest trade partner of Việt Nam in Europe, following Germany and the Netherlands.

As of December 2020, the UK registered $3.84 billion in 411 projects in Việt Nam, becoming the 15th biggest investor among 139 countries and territories landing investment in the nation. Most of the UK’s projects were in finance, banking, oil and renewable energy.

The Ministry of Industry and Trade affirmed that the trade pact will boost trade growth between the two nations in the future thanks to its commitment to erasing 65 per cent of the total tariffs immediately after the pact took effect, and 99 per cent of the tariffs in six or seven years. — VNS

A seven-seat car collided with an ambulance in Mekong Delta Tiền Giang Province on February 13, injuring four people. — VNA/VNS Photo

Khuất Việt Hùng, Vice President of the National Committee on Traffic Safety, talks to the Voice of Việt Nam about the number of traffic accidents in Việt Nam

What are the main factors leading to a reduction in traffic accidents in the country in 2020?

According to statistics from the Ministry of Public Security, the traffic accident rate in the five-year period from 2016-2020 compared to the previous five years has seen a 43 per cent drop in accidents, a 19.01 per cent reduction in fatalities and the injured rate also dropped by 53.91 per cent.

Last year was the first year that our national Law on Preventing and Combating the Harmful Effects of Liquor and Beer and the Decree No.100/2019/ND-CP came into effect calling on all drivers not to drink and drive.

Because of the COVID-19 pandemic, transportation nationwide dropped considerably, yet the police forces still applied many measures to ensure traffic safety.

The Ministry of Transport has regularly instructed the Directorate for Roads of Việt Nam and concerned agencies nationwide have applied many specific measures to fight back against the COVID-19 while calling on all road users to practise traffic safety. As a result, in the last 10 years, traffic accidents nationwide reduced by 17.66 per cent while the injured cases reduced by 20.7 per cent and the fatality rate by 12.2 per cent (the fatality rate dropped to under 7,000 people).

What measures have the Ministry of Transport and the National Steering Committee on Traffic Safety adopted?

From 2016, all Vietnamese agencies nationwide have strictly implemented Instruction No.18 of the Party Secretariat and the Resolution 88 of the Government on road traffic safety, railways, waterways and other means of transport.

In addition, Việt Nam’s traffic infrastructure has been improved and expanded. Non-stop toll-fee stations were erected nationwide while a mass communication campaign was launched to encourage all motorbike riders wear helmets. As a result,80 per cent of motor riders wear helmets compared to 38 per cent rate in 2017.

Has the Government Decree 100 helped cut down the country’s traffic accidents significantly?

In 2019, the Law on Preventing and Combating the Harmful Effects of Liquor and Beer was promulgated and came into force on January 2020 and the Decree 100 giving sanctions on people who are drinking and driving.

The Decree 100 is a spotlight action of the Government in its current tenure.

Last year, the Public Security forces, particularly the transport police, played a pivotal role in putting the Government’s Decree 100 into life and since then the Decree has become a driving force for people nationwide to abide by traffic laws – a key factor in the reduction of traffic accidents.

How do you respond to a report saying that some statistics about the traffic safety is not really reliable?

Under the country’s Statistic Law, the Ministry of Public Security is the agency that will gather all information on transport accidents and make it available to the public. The National Steering Committee on Traffic Safety will then use the information from the Ministry of Public Security to write their reports and make those available to the public as well.

Under the Statistic Law, the Ministry of Health has the responsibility to make a report on the total injury number nationwide. However, due to different methods used in injury calculation, it leads to some disparity in the figures announced by the Ministry of Health and the Ministry of Public Security.

Adding to that the number of traffic fatalities made public by the Vietnamese Government and the WHO is somehow slightly different. The main factor is that the definition of road fatality in Việt Nam is slightly different from that of the WHO. Under the Vietnamese Law, only people who are killed at the scene of the accidents are considered as accident fatality. Meanwhile, the WHO calculated the accident fatality case within 30 days from the day the accident happened.

It is reported that the Ministry of Public Security will soon make public a new regulation on road traffic accident calculation to make in line with the international law and practice. VNS

Võ Trí Thành

*Võ Trí Thành

Việt Nam has outlined its next-decade of socio-development strategy, setting its sights on becoming a developed and upper-middle-income country with modern industry by 2030. However, as success in the past cannot guarantee future triumphs, what are the keys to Việt Nam’s success in the next period?

We have talked about Việt Nam’s aspirations to become the next Asian economic dragon and the country has made great strides towards its goals. Amid a volatile world and unprecedented challenges arising from the pandemic, Việt Nam’s success in response to COVID-19 has been praised by international media. To ensure long-term growth, the country is also seeking solutions to key issues such as structural reforms, sustainable and inclusive development and innovation.

After many phases of reforms, Việt Nam has basically achieved its goals such as ensuring macroeconomic stabilisation, expanding more opportunities for all economic subjects to develop through institutional reforms, building a socialist market-oriented economy and promoting international integration.

Along with that, national capacity has been significantly improved which has been seen in strengthened institutional capacity, reflected in the more efficient State apparatus, enhanced capacity of enterprises through their greater competitiveness and sustainable development strategy and lastly the better-quality human resources.

Despite the fast-changing world, lessons and experiences from past reforms have significant value for further success which can be seen in many Vietnamese success stories.

When talking about the building of a socialist market-oriented economy, from a centrally planned economy in the early 1980s with little knowledge about the market economy, this has become the red thread throughout the country’s reform process.

Việt Nam has learnt and built regulations and good practices for the market through working experience and co-operation with well-known international institutions such as the United Nations, World Bank, International Monetary Fund and Asia Development Bank, collaboration with foreign experts, study exchanges and capacity building support from Asian and European countries.

Along with the country’s development progress, Việt Nam is perfecting its legal framework and improving the business investment environment to facilitate economic development activities. Building a modern and integrated economy, transparent and capable State apparatus is a must for sustainable development.

From the global integration lessons, Việt Nam joined the Association of Southeast Asian Nations (ASEAN) in 1995, since then, it has signed dozens of free trade agreements (FTAs) with many countries, including high-quality trade pacts such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Việt Nam Free Trade Agreement (EVFTA).

Partnering with developed countries with advanced institutional development has helped Việt Nam recognise the importance of expanding the development space in association with domestic reforms, developing the capacity and competitiveness and confidence of homegrown enterprises.

Vietnamese enterprises have taken long strides from fearing to compete with foreign competitors to understanding the game and starting to build their competitiveness. Some have even reached out to the world and initially established brands in global markets such as Vinfast, Viettel, FPT Corporation, Vinamilk and Trường Hải Auto Corporation. We all hope they will succeed in the future.

From past lessons, Việt Nam can identify important factors that will determine its future success. First, we need to dare and know how to play with bigger and better-performing players. With this strategy, the country has learned and grown at all important dimensions including levelling up the national, corporate and human ranks; better understanding our own values, knowing our advantages to sharpen our competitive advantage.

Besides, playing with big countries will create pressure and push to go further more aggressively and with time, the country can build greater confidence, which is very important for global integration and success.

From Việt Nam’s success in controlling the pandemic and maintaining economic growth, besides learning from other countries, the nation has prepared for fighting against the disease and even come up with Vietnamese-style solutions. Vietnamese creativity is also shown in many other key issues such as digital transformation and policy planning.

Actively learning, building confidence and promoting creativity and innovation will help Việt Nam build its image, enhance its position and expand its influence outside, attaining its development goals.

*Võ Trí Thành is a senior economist at the Central Institute for Economic Management (CIEM) and a member of the National Financial and Monetary Policy Advisory Council. The holder of a doctorate in economics from the Australian National University, Thanh mainly undertakes research and provides consultation on issues related to macroeconomic policies, trade liberalisation and international economic integration. Other areas of interest include institutional reforms and financial systems.

Foreign visitors walk in Điện Biên Phủ Street, Hà Nội. Việt Nam was the only country among 10 member states of the ASEAN to see improvement in Brand Finance’s Global Soft Power Index Report 2021. — VNA/VNS Photo Lâm Khánh

HÀ NỘI – Việt Nam has climbed three spots to rank 47th out of 105 countries in Brand Finance’s Global Soft Power Index Report 2021.

Việt Nam was the only country among the 10 member states of the Association of Southeast Asian Nations (ASEAN) to improve its ranking this year.

Its overall score was 33.8 out of 100 points, 2.5 points higher than last year, putting it ahead of the Philippines (53rd), Cambodia (89th) and Myanmar (90th).

Among other ASEAN countries, Singapore was 20th, Thailand 33rd, Malaysia 39th, and Indonesia 45th.

According to Brand Finance, the improvement was largely due to the fact that Việt Nam has managed the COVID-19 pandemic extremely well.

“Việt Nam was spared a year of lockdowns and besieged hospitals, and has one of the lowest COVID-19 infection and death rates in the world,” the report said. “Not only is the response to the pandemic impressive – given its shared border with China – but Việt Nam also experienced one of the highest economic growth rates globally in 2020 – one of a handful of countries with positive growth in 2020.”

Prime Minister Nguyễn Xuân Phúc has approved the Việt Nam National Brand Programme from 2020 to 2030, which aims to increase the value and ranking of the national brand while targeting more than 1,000 products to become strong national brands.

The brands from the country are managed through efforts and initiatives undertaken by the Ministry of Industry and Trade (MoIT)’s Department of Trade Promotion (Vietrade), under their ‘Việt Nam Value’ programme.

At a national level, Việt Nam has established diplomatic relations with 187 out of 193 member states of the United Nations and completed the process of negotiating and signing new-generation free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Việt Nam Free Trade Agreement (EVFTA), making the country an important factor in regional and intraregional economic links.

At the same time, Vietrade and the MoIT have supported Vietnamese enterprises to improve their capacity through consulting business development, establishing information systems and updating branding knowledge.

All these initiatives and efforts have helped increase the awareness of the public, international consumers, and customers about the programme and Việt Nam Value products through various domestic and international media channels.

The MoIT also focuses on promoting geographical indications and collective marks of Việt Nam in foreign markets and helping improve the competitiveness of businesses based on quality reputation, environment-friendly production, and professionalism.

The Brand Finance Global Soft Power Index is a research study on the perceptions of 100 nation brands from around the world. It surveys the public as well as specialist audiences, with responses gathered from more than 75,000 people across some 100 countries. — VNS