VIETNAM BUSINESS NEWS SEPTEMBER 20

The signing of the MoU is a part of a cooperation plan with Vietnam within the vitality sector which was put into place in 2016.

China set to extend agricultural imports from Vietnamese market

China will transfer to extend imports of agricultural merchandise from Vietnam and guarantee easy customs clearances happens at border gates, Chinese language media quoted Premier Li Keqiang as saying in a current cellphone discuss together with his Vietnamese counterpart Pham Minh Chinh.

In a current cellphone discuss with Vietnamese Prime Minister Pham Minh Chinh, Chinese language Premier Li Keqiang famous that the northern neighbour is keen to develop financial and commerce co-operation with the nation and also will enhance direct flights between either side as a way of facilitating individuals’s journey.  

China represents a big market with robust buying energy, with Chinese language customers particularly eager on agricultural merchandise, whereas Vietnamese agricultural exports take pleasure in loads of benefits when it comes to style in comparison with these of China.

For a few years, China had been the most important shopper of Vietnamese fruit and veggies, which accounted for practically 65% ​​of the northern neighbour’s fruit exports all through the primary 4 months of final yr, based on knowledge compiled by the Ministry of Agriculture and Rural Growth.

Dang Phuc Nguyen, normal secretary of the Vietnam Fruit and Vegetable Affiliation, mentioned China stays the main shopper of Vietnamese dragon fruit, accounting for 80% of whole exports, including that dragon fruit made up a 3rd of Vietnamese fruit and vegetable exports price US$3.27 billion final yr.

Regardless of these robust figures, the Chinese language market has not too long ago recorded a number of modifications when it comes to its import coverage, with the applying of stricter laws regarding product high quality, meals security, and traceability.

Final yr noticed whole bilateral commerce between the 2 sides attain US$234 billion, accounting for over 26% of China’s commerce with ASEAN.

Da Nang launches help programme to draw worldwide MICE vacationers

Da Nang’s Folks’s Committee has issued a help scheme which goals to draw worldwide MICE (Conferences, Incentives, Conferences, Exhibitions) guests within the close to future.

The aim of the programme is to supply help when it comes to reception, communication, consulting actions for the organisation of MICE occasions, in addition to ceremonies aimed toward honouring journey companies that deliver guests to the central metropolis.

Instantly after launching the help programme, the Da Nang Division of Tourism welcomed the primary two worldwide MICE delegations, together with 558 vacationers from Indonesia and 138 from Malaysia.

Between February 21 and August 1 Da Nang has launched plenty of incentive insurance policies aimed toward supporting home MICE vacationers and has welcomed 31 delegations with practically 15,600 vacationers heading to Da Nang.

Vietnam, Italy look to optimise enterprise alternatives

Practically 100 delegates representing Vietnamese and Italian organisations and companies attended the Vietnam-Italy commerce promotion discussion board in Rome on September 19.

Vietnamese Ambassador to Italy Duong Hai Hung pointed to the 4 components that guarantee the long run growth of the ties, specifically the sound conventional friendship and political willpower of either side, the soundness and attractiveness of the Vietnamese economic system, the authorized framework selling import-export and funding actions, and Vietnam’s benefits from free commerce agreements.

President of the Italian Commerce Company Carlo Ferro mentioned that Vietnam and Italy can nonetheless do extra to advertise financial and commerce relations, constructing on earlier successes in enabling companies to fulfill and enhance the change of products, not solely agricultural merchandise and style but additionally many others reminiscent of industrial equipment and 4.0 know-how.

Vietnam is presently the most important commerce accomplice of Italy among the many ASEAN international locations, with two-way commerce reaching 4.25 billion USD within the first eight months of 2022, up 13.9% yr on yr. About 6,000 Italian companies are investing in Vietnam.

Notably, the EU-Vietnam Free Commerce Settlement (EVFTA), which eliminates import taxes for 99% of tariff traces, has particular that means to bilateral ties when Italy and Vietnam have opened their economies and relied closely on exports.

Vietnam continues to be a gateway for Italy to enter the 600-million-strong ASEAN market.

Elevated demand for automobile possession drives up manufacturing in Vietnam
     
Demand for vehicles is forecast to extend strongly within the medium and long run as a result of low automobile possession fee in Viet Nam and rising common revenue, based on automotive specialists.

They mentioned the third quarter is commonly the off-season for native automobile gross sales. Nonetheless, the speedy enhance in demand and restricted provide as a result of international chip scarcity will assist auto gross sales stabilise within the the rest of the third quarter earlier than getting into a peak season within the fourth quarter of this yr. As well as, they famous that native demand for vehicles stays robust within the medium and long run as a result of present low automobile possession ratio in Viet Nam and other people’s increased revenue.

Bao Viet Securities Firm reported that automobile gross sales quantity within the third quarter would develop strongly. In accordance with Vietnam Vehicle Producers Affiliation (VAMA), gross sales quantity in July 2022 rose by 10.8 per cent towards June to 24,461 items or a 69.2 per cent year-on-year enhance. Gross sales quantity within the third quarter of 2021 was severely disrupted resulting from widespread social distancing measures amid the COVID-19 pandemic. Within the first seven months of this yr, auto gross sales rose by 39.3 per cent towards the identical body final yr to 209.928 items.

The corporate mentioned due to restricted provide and excessive demand, consumers are keen to position orders and look forward to months to obtain vehicles. That’s the reason BVSC believes that automobile gross sales within the third quarter this yr will develop strongly towards the identical interval final yr.

As well as, laws on the car localisation ratio shall be abolished after being in drive for nearly 20 years. In mid-August, the Ministry of Science and Know-how simply enacted a round to rescind present laws on strategies to calculate the car localisation ratio in Viet Nam. The brand new round will take impact from October 1 this yr.

Beneath the present laws, Viet Nam calculates the car localisation ratio by clusters of elements produced within the nation. In the meantime, different international locations calculate this as a proportion of home manufacturing worth.

Viet Nam’s vehicle business stays fledgling after greater than 30 years because the nation opened its door to international funding.

The present common localisation ratio of passenger vehicles with as much as 9 seats is as little as 7-10 per cent. Consequently, it failed to fulfill the Authorities’s goal of 30-40 per cent by 2020, 40-45 per cent by 2025 and 50-55 per cent by 2030.

Vietnam to encourage eco-industrial parks with worldwide help

Vietnam will proceed to encourage buyers to each develop eco-industrial parks and transition conventional to ecological ones.

Deputy Minister of Planning and Funding Nguyen Thi Bich Ngoc mentioned eco-IPs play an vital position within the nationwide sustainable growth technique. Nonetheless, in an effort to take this mannequin to train its position, it must be multiplied nationwide, with help from coverage, know-how, finance, info, and a detailed connection mechanism between home businesses and worldwide organisations.

Within the 2020-2023 interval, the Swiss authorities is constant to assist three IPs in 5 cities and province of Ho Chi Minh Metropolis, Haiphong, Dong Nai, Can Tho, and Danang convert into eco-IPs in accordance with a global framework.

The help comes from a mission that goals to deploy eco-IPs in Vietnam beneath the method of the International Ecological Industrial Park Programme, which can function a premise to multiply the mannequin throughout the nation.

The mission’s funds are at $1.8 million, which is predicted to enhance the financial, environmental, and social effectivity of the business and embrace laws on eco-IP growth in related mechanisms and insurance policies.

Werner Bardill, consul normal on the Embassy of Switzerland mentioned, “We see that many enterprises pioneer in implementing options to avoid wasting vitality and use pure assets successfully in the course of the operation course of. We hope that increasingly actual property builders will be a part of the altering course of from conventional IPs to eco-IPs.”

Between 2015 and 2019, the MPI, UNIDO, SECO, and different sponsors labored collectively to pilot fashions of eco-IPs in Ninh Binh, Danang, and Can Tho. Consequently, 72 companies have carried out greater than 900 energy-saving and cleaner manufacturing options, which helps them to avoid wasting $3.3 million and concurrently minimize 32 kilotonnes of CO2 yearly.

Myanmar Airways Worldwide launches first flight to Noi Bai

Myanmar Airways Worldwide (MAI) started working the primary flight from Yangon, Myanmar, to Hanoi-based Noi Bai Worldwide Airport on September 19.

Accordingly, the Myanmar airline will run two return flights on Mondays and Fridays with a flight time of two hours.

From September 22, MAI will proceed tapping Yangon-Ho Chi Minh Metropolis route with one return flight each Thursday, principally utilizing Airbus A320.

With the presence of MAI, the Noi Bai Worldwide Airport now hosts 57 worldwide and home airways carrying passengers and cargo, linking Hanoi with 60 international and 17 home locations.

It is usually negotiating with airways from Asia and Europe to develop air transport markets this winter and subsequent spring.

Vietnam targets two million enterprises in 2030

Vietnam goals to have not less than two million enterprises by 2030, Tran Tuan Anh, head of the Get together Central Committee’s Financial Fee, instructed a gathering held by the Vietnam Chamber of Commerce and Business (VCCI) on September 15.

The non-public financial sector is predicted to make up 60%-65% of the nation’s gross home product, based on the nation’s 2021-2030 socio-economic growth technique.

Anh mentioned that companies and entrepreneurs play an important position in boosting the nation’s socio-economic development, so it’s essential to widen the enterprise group and enhance the standard of the non-public sector within the subsequent 10 years.

The nation can also be encouraging companies to type and become main teams to compete in international markets, mentioned Anh.

VCCI Chairman Pham Tan Cong mentioned that over the previous 10 years, the variety of companies has elevated three-fold. Consequently, over 860,000 enterprises are lively in Vietnam, creating jobs for 14.7 million staff.

Nonetheless, the nation failed to meet its goal of getting a million enterprises in 2020, he added.

Cong proposed persevering with to construct and full a authorized hall to guard and honor enterprises for his or her contribution to the nation’s financial development and forestall unlawful enterprise operations to strengthen the enterprise community.

Echoing the view, Tran Viet Anh, vice chairman of the HCMC Union of Enterprise Affiliation, mentioned that incentives are wanted to encourage companies to thrive, the native media reported.

The pinnacle of the financial fee affirmed that the fee would suggest constructing an in depth authorized framework and mechanism to profit enterprises.

Hoa Binh to spend practically VND10 trillion on 32.5km expy

The Folks’s Council of Hoa Binh Province has handed a plan to develop a 32.5-kilometer-long expressway connecting with neighboring Son La Province, at a complete price of over VND9.7 trillion.

The highway, a part of the Hoa Binh-Moc Chau expressway mission, is about to run from Da Bac City in Hoa Binh Province to Chieng Yen Commune in Son La Province’s Van Ho District, the native media reported.

The mission shall be executed in two phases between 2022 and 2025. Within the first part, the expressway will permit a most velocity of 80 kilometers per hour. The highway will comprise a four-lane bridge, some two-lane bridges and a two-lane tunnel.

The Hoa Binh-Moc Chau expressway mission can have a complete size of 85 kilometers, spanning 49 kilometers in Hoa Binh Province and 36 kilometers in Son La Province’s Van Ho and Moc Chau districts.

4 provinces promote Mekong Delta tourism

Quang Ninh, Ninh Binh and Binh Dinh provinces are becoming a member of fingers with the Mekong Delta metropolis of Can Tho to advertise tourism within the delta.

Pham Ngoc Thuy, director of the Quang Ninh Tourism Division, mentioned this cooperation in tourism promotion would assist absolutely faucet the tourism potential of every locality and develop tourism right into a driving drive for financial development.

The Mekong Delta is taken into account a possible and strategic tourism marketplace for Quang Ninh, Ninh Binh and Binh Dinh. These three provinces are additionally residence to particular cultural and pure values, along with different components that make them acceptable to develop heritage, resort, culture-festival and island tourism merchandise.

In accordance with Nguyen Thuc Hien, vice chairman of the Can Tho Folks’s Committee, the provinces within the delta attracted round 30 million guests within the first eight months of the yr and made greater than VND21 trillion in tourism income.

As well as, tourism cooperation applications between the delta and different elements of the nation lately have created a dramatic change in constructing the Mekong Delta tourism model related to eco-, spiritual- and MICE tourism.

Ha Van Sieu, deputy head of the Vietnam Nationwide Administration of Tourism, affirmed that the convention created a possibility for the localities talked about above, buyers and tourism service suppliers to share expertise in eradicating obstacles and growing insurance policies to spice up tourism development.

Mekong Delta province’s industrial parks show irresistible to buyers

Industrial parks and clusters within the Cuu Lengthy (Mekong) Delta province of Tien Giang attracted greater than VND834 billion (US$35.4 million) within the first eight months of this yr, based on the province Folks’s Committee.

This represents a four-fold enhance year-on-year.

Industrial parks home 81 international and 29 home tasks price $2.25 billion and VND2.37 trillion, which supply greater than 93,000 jobs.

Practically 92 per cent of their whole space has been leased.

Industrial clusters have attracted seven international and 73 home tasks price $153 million and VND2.41 trillion, and provide greater than 17,000 jobs.

Tien Giang has three industrial parks, My Tho, Tan Huong and Lengthy Giang, and 5 industrial clusters, Trung An, Tan My Chanh, Track Thuan, An Thanh No.1, and Gia Thuan No.1.

It plans to construct three extra, Tan Phuoc Nos 1 and a couple of and Binh Dong, moreover 15 industrial clusters to fulfill demand.

South Korean startups eye Vietnam takeover

Many South Korean startups and buyers gathered on August 30 on the Vietnam Korea Startup Entrepreneur Community Meet-Up hosted by The Invention Lab in Hanoi to debate how one can make success within the native market and their future plans right here.

David Kim, CEO of The Invention Lab mentioned, “Vietnam is a large marketplace for startups, particularly worldwide ones, together with these from South Korea. That market has change into tiny with stiffening competitors. Subsequently, South Korean firms search big potential markets.”

The corporate invests in South Korean startups that need to step into the Vietnamese market and it has invested in 15 firms already. “We welcomed 10 at this occasion and the others will meet by the tip of October to indicate their programmes in Vietnam,” Kim added.

Not solely The Invention Lab, Yaho Lab, an internet platform matching kids with reliable play tutors, can also be planning to swell its area of interest in Vietnam.

Reviewty, in the meantime, is a startup operating a cosmetics group and commerce platform concentrating on feminine customers. “Our mission is to enhance Vietnamese’s consciousness about magnificence and healthcare and to change into a wholesome group the place customers can share their experiences and issues,” mentioned Reviewty CEO Jin Kam Park.

Vietnam has emerged as a promising marketplace for the startup ecosystem. Final yr, funding in startups and improvements in Vietnam reached an all-year file excessive, hitting over $1.3 billion.

As well as, different South Korean startups have been making waves for a number of years now.

Motorcycle gross sales platform OKXE Vietnam was launched in 2018 to assist join consumers and sellers of used motorbikes by way of a smartphone app and an internet site. In accordance with a consultant of OKXE Vietnam, it’s now the nation’s prime second-hand motorbike buying and selling platform with seven million app customers as of June.

Its transaction amount additionally noticed robust development from 60 in 2019 to 400 in 2020 and 9,000 final yr. For 2022, OKXE Vietnam is aiming for 10 million app downloads and 40,000 whole transactions.

Equally, on-line gross sales platform GoMi, which was established in Vietnam in 2019 promoting South Korean merchandise, has signed a number of unique gross sales contracts with South Korean manufacturers to enterprise afield into Vietnam after which Thailand and India.

Gomi is now Vietnam’s prime e-commerce market for South Korean shopper product items with a median month-to-month turnover exceeding $371,000.

In 2021, Vietnam ranked forty fourth out of 132 international locations and territories within the International Innovation Index as introduced by the UN’s World Mental Property Organisation. Vietnam’s startup ecosystem ranked 59 out of 100 international locations, and ranked third by worldwide organisations among the many three most dynamic startup ecosystems in Southeast Asia, simply behind Indonesia and Singapore.

Know-how the important thing to superior manufacturing sector
     
The manufacturing sector is a driving drive behind financial development, however producers are nonetheless outcompeted by international rivals on the subject of core applied sciences, based on insiders.

Pham Tuan Anh, Deputy Director Basic of the Business Company, Ministry of Business and Commerce (MoIT), attributed the technological inferiority to home companies’ restricted assets and an insufficient labour drive.

He mentioned the manufacturing sector has been growing asymmetrically with an overdependence on FDI companies. The financial over-representation of the companies could be noticed visibly within the heavy industrial subsector.

The sector’s reliance on imported supplies compounds the state of affairs, leading to low value-added home merchandise. Industrial transition over the previous few years, undoubtedly, has been fueled largely by FDI companies quite than home ones.

The deputy director normal referred to as for beneficial insurance policies to maintain companies well-informed about superior applied sciences and facilitate the emergence of massive companies, which act as a catalyst for an industrial leap ahead.

He additionally mentioned not solely ought to the manufacturing sector be closely invested however so ought to supporting industries, which provide the previous with fuels, elements and supplies.

Nguyen Huu Tu, member of the Viet Nam Chemical Company’s Board of Administrators, revealed that the chemical business is as much as home demand when it comes to primary merchandise, however it’s not the case for high-tech ones.

He took technical rubbers for instance, which home companies have a restricted functionality for mass-production. Imported rubbers, accordingly, have to come back in to fill the demand hole.

The board member referred to as for governmental Determination 726 to be carried out to speed up the expansion of the chemical business. He additionally steered a revision to tax insurance policies to degree the enjoying discipline for each home and imported fertilisers.

Lastly, he referred to as for beneficial insurance policies on land rental in industrial parks and preferential loans for chemical producers to enhance their aggressive positions.

Dinh Quoc Thai, Secretary Basic of the Viet Nam Metal Affiliation, revealed that the metal business produces as much as 30 million tonnes of metal per yr. Nonetheless, 90 per cent of the metal caters for constructing works, whereas simply 10 per cent goes to different industries.

The disproportion could be attributed to the truth that some industries cannot discover sure varieties of high-quality metal close to residence. They should depend on imported metal to feed their manufacturing.

The secretary normal urged MoIT to attract up the Technique for the Growth of the Metal Business till 2030 with a imaginative and prescient to 2050, which is predicted to nurture the sustainable development of home metal.

He additionally referred to as for beneficial insurance policies to spice up steel-consuming industries reminiscent of automobile part making, thereby elevating the demand for the domestically-produced steel. 

Hospitals search for method out over price traps in tender guidelines

Hospitals and medical gear suppliers wish to get again heading in the right direction with the Ministry of Well being hoping to resolve worth points on the subject of tender guidelines of medical provides.

In accordance with a supply from the Ministry of Well being (MoH), the ministry is engaged on amendments to Round No.14/2020/TT-BYT dated July 2020, which regulates the bidding technique of medical units for public well being institutions, and different associated laws to facilitate future tenders.

Appearing Minister of Well being Dao Hong Lan mentioned, “It’s heart-rending to know that some sufferers are having to purchase medical provides themselves for his or her remedy. I’ve by no means seen this within the historical past of the sector. We urge feedback and concepts from hospitals about potential modifications in present laws after which submit them to the federal government.”

Together with submitting a decision to the federal government, the MoH can also be discussing with related ministries and businesses amending plenty of laws, Lan added.

At current, hospitals and medical suppliers are complaining about issues with time-consuming bidding laws, whereas medical provides and medicines from tenders are failing to fulfill their remedy necessities.

Round 14 regulates that when estimating the contract worth, the well being facility shall study the profitable bids inside 12 months – a regulation that’s deemed inappropriate with market worth guidelines.

Furthermore, beneath Round No.58/2016/TT-BTC from the Ministry of Finance in 2016, the citation of the products that have to be bought needs to be offered by not less than three native suppliers in an effort to use as the idea for figuring out the procurement worth. Whether it is unable to get the citation from three native suppliers, the citation offered by suppliers in different areas could also be referred to acquire not less than three quotations for figuring out the procurement worth. Nonetheless, some medical provides and prescribed drugs have just one producer.

Disbursement of mortgage curiosity support bundle for companies to be sped up

Many actions have been taken, together with an modification to the lending procedures and insurance policies, to take away difficulties in mortgage disbursement from the monetary support bundle with an rate of interest low cost of two proportion factors.

The Nationwide Meeting Financial Committee held the Vietnam Socio-Financial Discussion board 2022 on September 18, confirming the VND40-trillion financial restoration stimulus bundle as the important thing aim of the banking system in 2022 and discussing how one can take away the bottlenecks and velocity up the mortgage disbursement.

The State Financial institution of Vietnam (SBV), the central financial institution, has written to the Authorities proposing the promulgation of Decree 31/2022 and Round 03/2022, guiding industrial banks to disburse loans to debtors.

It has collected registration info from industrial banks and steered the related ministries and departments allocate a finances of VND40 trillion inside two years.

It’s anticipated to allocate round VND16 trillion in 2022 and VND24 trillion in 2023.

After allocating the finances, the SBV will problem tips for industrial banks to resolve over 20 issues probably arising within the implementation course of, reminiscent of selecting beneficiaries, registering, making preliminary estimates and disbursing loans.

Work on Cat Bi Airport’s Terminal T2 to start out in mid-2023

Building of Terminal T2 on the Cat Bi Worldwide Airport in Haiphong Metropolis is predicted to start in the midst of subsequent yr, based on the Airports Company of Vietnam (ACV).

Deputy normal director of ACV Tran Anh Vu has written to the Ministry of Transport that Terminal T2 on the Cat Bi Airport shall be constructed between Might 2022 and November 2024 after the completion of web site clearance.

The entire price of the mission is over VND2.4 trillion.

The company has been assigned to finish the pre-feasibility research earlier than September 30 and to hunt approval for the environmental impression evaluation from the Ministry of Pure Assets and Surroundings from October to November this yr.

The Passenger Terminal T2 mission on the Cat Bi Worldwide Airport was authorised by the Authorities in July this yr.

Upon completion, the terminal will be capable of deal with 5 million passengers per yr, based on the ACV.

My Thuan-Can Tho expy may be opened to site visitors subsequent April

The Ministry of Transport has instructed the My Thuan Venture Administration Board to hurry up work on the My Thuan-Can Tho expressway mission in order that the highway could be put into operation earlier than the tip of April subsequent yr.

The ministry requested the board to induce contractors and staff to finish all bridge tasks on the expressway this month, the native media reported.

As for the floor of the highway, the tender floor have to be dealt with by late 2022, whereas work on the macadam basis and asphalt concrete floor have to be accomplished earlier than April 30 subsequent yr, based on the ministry.

The three set up and building packages of the mission are solely 48.5% full and barely delayed. The ministry blamed the contractors for the delay resulting from their illogical building operations.

Because the mission is dealing with obstacles over web site clearance, the ministry requested the administration board to work with the native authorities and related items handy over the cleared web site this month.

The 23-kilometer-long My Thuan-Can Tho expressway mission, which bought off the bottom in early 2021, will run by the 2 Mekong Delta provinces of Dong Thap and Vinh Lengthy.

The expressway requires an funding of over VND4.8 trillion and can have six lanes and permit a most velocity of 100 kilometers per hour.

Supply: VNA/SGT/VNS/VOV/Dtinews/SGGP/VGP/Hanoitimes

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