VIETNAM BUSINESS NEWS FEB. 20
Coal companies report rises in revenues but declining profits
As mining activities are seasonal and affected by the weather, revenue and profit of coal mining businesses have fluctuated continuously over the past 10 years.
Vinacomin - Northern Coal Trading Joint Stock Company (TMB) saw an average growth rate of 9 per cent in revenue every year during the 2010-2020 period.
Vinacomin - Coal Import Export Joint Stock Company (CLM) has reported a 17 per cent rise in revenue during the past 10 years, from VNĐ1.6 trillion (US$69.4 million) to VNĐ7.5 trillion.
Hà Lầm Coal (HLC), Vàng Danh Coal (TVD), Hà Tu Coal (THT) and Mông Dương Coal (MDC) witnessed the same average revenue growth in the 2010-2020 period of 6-7 per cent.
Despite earning trillions of đồng in revenue, coal companies only achieved tens of billions of đồng a year in profit, with some even suffering losses.
Compared to 2010, the profits of coal companies were almost unchanged.
Mông Dương Coal (MDC) had a profit of VNĐ79 billion in 2010 – the highest in the group mentioned above. But by the end of 2020, this enterprise only reported VNĐ27.8 billion in profit.
Cọc Sáu Coal (TC6) witnessed profit fall from VNĐ67 billion in 2010 to only VNĐ5.6 billion in 2020, the lowest level among the group, although its yearly average revenue is much higher than many other businesses in the industry.
The merger between Cao Sơn Coal (TCS) and Tây Nam Đá Mài Coal (TND) also did not help Cao Sơn Coal improve its profit in 2020, hovering at more than VNĐ54 billion.
Việt Bắc Mining (MVB), which started the equitisation process in 2015, made a breakthrough in profit growth with VNĐ55 billion in 2015, soaring to VNĐ270 billion in 2020, a jump of 37 per cent.
Businesses in the coal mining industry have to confront specific risks such as the reserve of open-pit mines gradually drying up.
Most mines are exploited deep underground, with some at even 300m below sea level. Underground coal mines have higher soil removal costs compared to open-pit mines, which leads to less competitive coal prices.
Mining activities are seasonal and affected heavily by the weather. Due to the negative impact on the environment, taxes and fees for the coal industry are always high and tend to increase.
However, if comparing coal stocks, it can be seen that there are still good stocks with low price-to-earnings (P/E) rates and high dividend payout ratios.
Leaders of Việt Nam National Coal and Minerals Group (Vinacomin or TKV) said that the coal industry was facing many difficulties due to the impact of the COVID-19 pandemic, which has caused millions of tonnes of coal residuals at the yards and warehouses of TKV.
They said the coal demand for the economy in 2021 will not grow much, staying at the same level as in 2020. In addition, the mining conditions are increasingly difficult due to the rising depth underground, hampering the transportation process.
Bad debts of 20 banks up 4.5% in 2020
The non-performing loans (NPLs) of 20 local banks at the end of 2020 rose by 4.5 per cent year-on-year to VND83.4 trillion (US$3.58 billion), according to the banks’ latest financial statements.
Fifteen of the banks reported a decrease in bad debt ratio last year, with some successfully controlling the ratio at below 1 per cent.
As of December 31, 2020, the bad debt ratio of Vietnam Technological and Commercial Joint Stock Bank (Techcombank) was 0.5 per cent, lower than the 1.3 per cent recorded as of December 31, 2019. The bank currently has the lowest bad debt ratio in the sector.
For Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), the bad debts at the end of 2020 were VND5.22 trillion, down by more than 50 per cent. The bad debt ratio of the bank sharply dropped from 1.01 per cent at the end of the third quarter of 2020 to 0.62 per cent at the end of 2020, also the lowest level in the bank’s history.
At Asia Commercial Joint Stock Bank (ACB), the ratio of bad debts on outstanding credit inched up from 0.54 per cent to 0.6 per cent. However, the rate was among the lowest levels in the system.
Similarly, the bad debt ratio of Bac A Commercial Joint Stock Bank (BacABank) slightly increased but was still controlled below 1 per cent. The bank’s ratio of bad debts on outstanding credit rose from 0.69 per cent as of late 2019 to 0.79 per cent.
The fifth bank with bad debt ratio of less than 1 per cent was Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank). According to the bank’s financial statement, the ratio of bad debts as of December 31, 2020 was 0.94 per cent, down compared to the 1.16 per cent at the end of 2019. This was also the lowest bad debt ratio in the 2016-20 period of VietinBank.
Nam A Commercial Joint Stock Bank (NamABank)’s bad debt ratio was also below 1 per cent. The bank’s total bad debts decreased by nearly half from the previous year to VND744 billion, helping the bad debt ratio to fall from 1.97 per cent to 0.83 per cent.
The year saw KienLongBank as the bank with the highest growth in bad debt ratio. The bank’s NPLs jumped 5.5 times to VND1.88 trillion.
However, the NPLs of the banks would be higher if including debts that were restructured to aid COVID-19 affected borrowers according to the Government’s incentive policy.
The State Bank of Viet Nam reported commercial banks restructured loans worth about VND350 trillion for COVID-19 affected borrowers by the end of 2020.
Banking expert Can Van Luc said if half of the loans became bad loans, the bad debt ratio would increase to more than 3 per cent by the end of 2021.
To control the risk of bad loans, banking expert Nguyen Tri Hieu recommended as well as recovering bad loans, banks must set aside provisions for bad loans and risky loans.
Some banks have already increased provisions. VietinBank, for example, increased its provisions from 120 per cent to 130 per cent.https://vov.vn/en/multimedia/photos/vietnamese-footballers-born-in-the-year-of-the-buffalo-837344.vov
Vietnamese electronic exports enjoy boom according to HSBC
The nation’s electronics exports have been booming following a period of consistent foreign investment into the sector, HSBC have stated in a recent report.
This comes after the country’s exports witnessed an annual surge of 50.5% in January, with the primary driver behind this growth being Samsung’s newly-released Galaxy S21 smartphone.
Most notably, electronics exports last year reached a record high of US$96 billion, representing a third of total Vietnamese exports.
HSBC largely attribute this rapid rise to Samsung’s investments in the country since 2008, with the South Korean company now operating six plants nationwide.
Furthermore, the country has also emerged as a growing supplier of chips, with over 11% of the global market share in 2019 after surging by 300% that year.
This increase in the production of computers also supports chip production.
Intel of the United States also established a chip assembly and testing facility in 2006 at a cost of US$1 billion, whilst reportedly injecting a further US$475 million in January in order to manufacture 5G products and core processors.
Moreover, tech giant Apple has been producing Airpods locally since May, 2020, and is likely to start producing iPads as early as the middle of this year.
Foxconn, a key supplier of Apple, also received a license in January to build a plant at a cost of $270 million in the northern province of Bac Giang. The Taiwanese contract manufacturer has so far invested a sum of US$1.5 billion in the country.
Moving forward, the nation’s competitive policies will continue to attract quality FDI, a factor which HSBC note as being crucial in helping the country move up the value chain.
Indeed, the nation must improve labour productivity through better education and vocational training, with the other priority being to improve infrastructure, according to the report.
Tea exports witness sharp increase in January
The nation exported 10,000 tonnes of tea worth US$16 million in January, representing a surge of 25.8% in volume and 30.5% in value in comparison to the same period from last year, according to the Ministry of Industry and Trade.
Most notably, the average export price in January soared by 3.7% to US$1,600 per tonne against last year’s corresponding period. This sharp increase in the export price can be largely attributed to disruption in export activities during the course of the traditional Lunar New Year, known locally as Tet.
Last year saw black and green tea exports make up the highest proportion, with turnover for black tea reaching US$76.19 million, a decline of 0.6% in volume and 2.3% in value compared to 2019.
Furthermore, the average export price of black tea also decreased by 6.2% to US$1,613 per tonne compared to 2019’s figures, with major export markets including Russia, Indonesia, Taiwan (China), and Pakistan, while the price of green tea also fell by 10.7% to US$1,805 per tonne, with the main export market being Pakistan. Elsewhere, tea marinated with flowers and olong tea exports make up only a low proportion of the total.
According to the United States International Trade Commission, the US imported tea from three main markets last year, including Argentina, India, and China. In addition, US tea imports last year reached 107,360 tonnes worth US$460.49 million, a drop of 10.5% in volume and 3.4% in value compared to 2019.
Moreover, the country became the fifth largest tea supplier to the US market, with the export volume accounting for only 4.7%, a rise of 0.2% compared to 2019, with the tea import volume of the US and the value from Vietnam also experiencing a downward trajectory.
Garment and textile exports increase market share in US
Despite the global fashion industry suffering from a range of challenges caused by the novel coronavirus (COVID-19) pandemic, the Vietnamese garment and textile industry has recorded positive growth in market shares to major locations such as the United States and Europe.
According to a report published late last year by McKinsey, the global fashion industry's profits endured a fall of 93%, with more than 10 major fashion brands going bankrupt and roughly 200,000 workers in the fashion supply chains in the US losing their jobs.
Furthermore, the Vietnamese market share of garments and textiles enjoyed growth last year due to uninterrupted production activities, achieving 20% in the US market for the first time and taking the lead in terms of market share for several months.
January alone saw the export turnover of the local textile and garment industry rise by 3.3% on-year to approximately US$2.6 billion, of which some products enjoyed a high growth rate of between 9% and 36%.
This year marks the first time in 25 years that Vietnamese textile exports have recorded a negative growth rate of 10.5%, only reaching US$35 billion in comparison to US$39 billion in 2019.
Despite this, amid a global aggregate reduction of over 22%, the results of the local textile and apparel industry can be considered to be relatively positive.
Le Tien Truong, general director of the Vietnam Textile and Garment Group (Vinatex), states that the global textile market is anticipated to bounce back during the second quarter of 2022, adding that there are numerous challenges ahead for the sector due to the complicated nature of developments caused by the COVID-19 pandemic.
In line with this, the domestic textile and garment industry is anticipated to achieve an export turnover of some US$39 billion this year, with local businesses expected to boost market expansion and maximise benefits from free trade agreements (FTAs) such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to bolster exports.
Rice export price exceeds US$550 million per tonne
The nation’s rice export price in January stood at US$551.7 per tonne, representing a year-on-year rise of 15.4%, according to the General Department of Vietnam Customs.
Most notably, the country exported 348,000 tonnes of rice worth US$192 million in January, a decline of 15.4% in volume and 2.4% in turnover compared to last year’s corresponding period.
The Philippines remained the leading consumer of Vietnamese rice with 170,000 tonnes worth US$91.38 million, therefore accounting for 48% of the nation’s total volume and total turnover.
Despite these figures, there was a sharp decline of 38% in terms of volume and 38% in turnover compared with December, 2020. Indeed, the rice export price to the Philippines increased slightly by 2%, reaching an average of US$537.9 per tonne.
China ranked second for importing Vietnamese rice, followed by Ghana, the Ivory Coast, and India, with the export prices in these markets reaching US$520.9, US$589.6, and US$523 per tonne, respectively.
According to figures compiled by the Vietnam Food Association (VFA), rice exports in the year ahead are anticipated to enjoy a positive outlook in both volume output and price.
Currently, Vietnam's main export markets such as the Philippines and Africa are continuing to sign contracts in order to purchase rice from the country at high prices.
Imports and exports of FDI sector enjoy sharp increase in January
The total import and export value of foreign direct investment (FDI) enterprises in January saw a surge of 60.1% to US$39.16 billion, equivalent to an increase of US$14.69 billion, according to figures compiled by the General Department of Vietnam Customs.
The country’s import and export value throughout January soared by 48.2% to US$55 billion, equal to an annual rise of US$17.88 billion.
In relation to the figure, total Vietnamese exports increased sharply to US$28.55 billion, while imports also soared by 41.3% to US$26.46 billion against the same period from last year, with the country recording a trade surplus of US$2.09 billion.
Most notably, the total import and export value of the local FDI sector rose by 60.1% to US$39.16 billion, while the domestic sector’s imports and exports increased by 25.2% to US$15.85 billion on-year.
The export value of FDI enterprises also skyrocketed by 70% to US$21.57 billion compared to the previous year, therefore accounting for 75.5% of the country’s total export value. In addition, its import value rose by 49.4% to US$17.59 billion, making up 66.5% of the country’s total import value.
Netherlands keen on Vietnamese agricultural products
Thursday, 11:17, 18/02/2021
VOV.VN - With the EU-Vietnam Free Trade Agreement (EVFTA) coming into effect, several Vietnamese agricultural products exported to the Netherlands have witnessed a sharp increase, according to figures released by the General Department of Vietnam Customs.
The department revealed that two-way trade turnover between Vietnam and the Netherlands during the opening 11 months of last year declined by 0.14% to US$6.85 billion against the same period from 2019. Of the total, Vietnamese exports rose by 0.3% to US$6.27 billion.
Notably, the export of agricultural products, including seafood, pepper, rubber, and rice to the Dutch market enjoyed significant increases of 20.2%, 20.9%, 11.9%, and 83.7%, respectively.
Vu Ba Phu, director general of the Vietnam Trade Promotion Agency (Vietrade), said there remains bright prospects ahead for fruit and vegetable exports to the demanding market which is considered a gateway to the EU market.
Moreover, the EVFTA is anticipated to create a wealth of opportunities for both Vietnamese and Dutch businesses to foster cooperation.
Nguyen Hai Tinh, Vietnamese trade counselor to the Netherlands, noted that the European nation makes up the largest consumer of Vietnamese fruit and vegetables in the EU. Currently, more than 20% of fresh fruit and vegetables are imported from developing countries into the EU through the Dutch gateway.
Experts have therefore underscored the importance of strengthening links between production stages and phases in the supply chain, such as in post-harvest and logistics, in an effort to bolster the export of agricultural products.
To promote the export of agricultural products to the EU market in general and the Dutch market specifically, experts have advised local firms to grasp information relating to market demand and local consumer tastes. These efforts should be made along with attending international trade fairs to seek partners and expand markets, in addition to raising awareness about tightening management over food safety and hazards throughout the production chain.
Alongside optimising opportunities from the EVFTA, participation in the online trade exchanges between both countries is expected to create opportunities for businesses to make inroads into the demanding market, therefore increasing the export turnover of agricultural products to the Netherlands.
Domestic food and beverage industry has development potential
The domestic food and beverage market has great potential for development despite the difficulties caused by the COVID-19 pandemic, according to experts.
Food and beverages are in the fast-moving consumer goods (FMCG) category. For many years, this has always been one of the important economic sectors with great potential for development, according to the Vietnam Report 2020.
The food and beverage market’s growth rate is forecasted to reach from 5-6 per cent annually in 2020-2025.
Despite suffering negative impacts from the COVID-19 pandemic, the food and beverage industry in Viet Nam also has many strong growth opportunities. At present, more and more consumers pay attention to nutritional foods of plant origin, organic foods or food with healthy ingredients.
A survey conducted by Vietnam Report at the end of 2020 showed due to COVID-19, half of customers have spent more on foods boosting their immune system and clean foods. Meanwhile, 63.7 per cent of customers have cut spending on alcohol and beer. Therefore, businesses in this industry must adjust their production to suit demand.
Food businesses have to increase their production capacity by about 30 per cent, while beverage businesses must reduce their production to lower than 80 per cent compared to before the pandemic.
Besides that, Vu Dang Vinh, general director of the Vietnam Assessment Report Joint Stock Company, said COVID-19 has forced nearly 70 per cent of food and beverage businesses to focus on the digital transformation for survival and development, reported the Vietnam News Agency.
Many businesses have built modern technology processes in production and management. Food and beverage companies have also sped up investment activities to renovate the distribution system and adjust the proportion between traditional and modern trading channels. They develop applications to enhance the customer experience when shopping and innovate packaging design, eco-branding and product line development.
Nguyen Dang Quang, chairman of Masan Group, said the COVID-19 pandemic is a good opportunity to promote e-commerce.
The group is building plans to attract more and more people to online shopping, he said.
Vinh said food and beverage businesses need to focus on strategies such as revenue growth, market development, promotion of research and improving product quality. They should also diversify supply sources with priority for domestic suppliers and develop online distribution channels on e-commerce platforms.
According to experts in the food and beverage industry, the stable macroeconomy and commitments in free trade agreements signed between Viet Nam and its partners such as the European Union-Viet Nam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) would bring export opportunities and more foreign investment. They would promote the transfer of technology and technological advancement in the industry.
Along with that, the food and beverage companies needs to improve their competitiveness and increase investment in infrastructure systems and modernisation of production processes and corporate governance.
Over 14,000 tonnes of dragon fruit exported to China via Lao Cai border gates
More than 14,000 tonnes of dragon fruit were exported to China from February 10-17 (the seven-day Lunar New Year holiday) through border gates in the northern province of Lao Cai, according to the provincial Border Gate Customs Sub-Department.
Lao Cai authorities, including customs, border guards, and medical quarantine officials, maintained operations in the opening days of the lunar new year to ensure the quick and safe customs clearance of goods.
During the period, total import-export revenue through border gates in Lao Cai reached over 11 million USD, including 2.4 million USD worth of imports, mainly fertilisers and farm produce, and 8.8 million USD worth of exports, mostly agricultural products.
According to Major Dinh Quang Chinh, head of the Border Post at the Kim Thanh 2 International Border Gate, in order to create favourable conditions for exporters during the holiday, the unit mobilised all officers and soldiers on duty to closely control the passing of vehicles and people through the border gate and implement preventive measures against COVID-19.
Le Phuong, head of the Border Gate Customs Sub-Department under the Lao Cai Department of Customs, said that in 2020, despite the impact of COVID-19, the sub-department completed its “twin targets” by processing customs clearance declarations for 516 businesses with import-export value of over 1 billion USD and ensuring safety from the pandemic.
In 2021, it will closely coordinate with other sectors to speed up administrative reform while exhibiting better performance in e-customs clearance activities to save time and cost, ensuring economic development and COVID-19 prevention and control at the same time, he added./.
Over 123 million USD for building Thuan Thanh I Industrial Park
Prime Minister Nguyen Xuan Phuc has approved investment intention in a project on infrastructure development at the Thuan Thuan I Industrial Park in northern Bac Ninh province.
The project covers a total area of some 250 ha in Ninh Xa, Tram Lo and Nghia Dao communes of Thuan Thanh district, Bac Ninh province, with total investment of 2.84 trillion VND (over 123 million USD), of which 859.73 billion VND comes from its investor – Viglacera Corporation.
The construction is scheduled to last for 36 months since the land hand-over, and the project is set to operate within 50 years as from February 17, 2021.
The PM required the provincial People’s Committee to ensure the accuracy of information and data reported, and carry out land reclamation, site clearance, compensation and land lease in line with approved documents.
The construction must comply with the detailed planning scheme that has been approved, he said, stressing that the committee needs to instruct the management board of industrial parks in Bac Ninh and relevant agencies to supervise and assess the implementation of the project.
The PM also highlighted the building of houses, and social, cultural and sport facilities for labourers in the industrial park, as well as employment and vocational training support to local residents who have to relocate to make way for the project./.
Sea crab breeding - A new option for Tra Vinh farmers
Dozens of households in the Mekong Delta province of Tra Vinh have begun sea crab breeding this year, with 37 million baby crabs on a total area of 7,330 ha.
Nguyen Van Vung from Long Hoa commune, Chau Thanh district said local farmers have taken advantage of favourable water conditions this year to release baby sea crabs early, hoping for three harvests throughout the year.
The price of crab has remained stable over recent years, helping farmers earn 130-150 million VND (5,600-6,500 USD) per ha of water surface, with three harvests a year.
Tra Vinh’s sea crab area expanded to 23,000 ha last year, an increase of 5,000-7,000 ha compared to previous years, with total output standing at 71,000 tonnes.
The provincial agricultural sector has encouraged farmers to combine crab and shrimp breeding, as crab breeding requires less technology and capital, a local official said./.
Ca Mau moves to promote investment links with foreign countries
Authorities in the southernmost province of Ca Mau have exerted every effort to promote direct connections with trade and investment associations and organisations of countries investing strongly in Vietnam and the Mekong Delta region, according to Director of the Ca Mau Investment Promotion and Enterprise Support Centre (iPEC) Quach Van An.
Provincial authorities will work with organisations, business associations, and investors in a number of other localities nationwide and hold dialogues with foreign partners to enhance connections and investment promotion, An said.
iPEC was assigned to monitor and support 38 investment projects in the province and provide assistance and consultation to investors exploring business opportunities in the locality, he added.
Local authorities have created the most favourable conditions possible for domestic and foreign enterprises and investors to study and propose investment projects in Ca Mau, notably those with experience and large resources such as TTC Group, FLC, TNG Holdings, Central Group, B.Grimm Power, Mitsubishi, and the Japan External Trade Organisation.
He also mentioned the difficulties facing investment promotion activities in the locality, adding that site clearance remains slow and administrative procedures are complicated.
As of last December, Ca Mau was home to 10 foreign-invested projects with total registered capital of over 393 million USD, and 343 domestic projects with over 121.9 trillion VND (5.2 billion USD).
Of note, it has attracted 188 domestic projects in the last five years with registered capital of over 50.3 trillion VND, up 75 percent in project numbers and 21 percent in capital compared to the 2011-2015 period.
The locality is calling for investment in technical infrastructure development, especially in key projects, with the aim of creating momentum for its socio-economic development./.
Vietnam among top three leading nations in renewable energy shift in Asia Pacific
Vietnam is among top three nations leading the shift to renewable energy in Asia Pacific, according to the latest research from IHS Markit.
Reporting on the IHS Markit’s Renewable Additions Index, the site energyvoice.com said the renewable power development pipeline has soared across the region.
According to the index, Australia leads the index with 89 percent of capacity under construction being either wind, solar or biomass power, followed by Japan. The third place in the region is taken by Vietnam, which leads emerging markets, as the country promoted feed-in tariffs to attract investment in solar and wind power.
The index showed that around a third of the power projects being built — or about 80 gigawatts (GW) — are set to generate wind, solar, hydro and other types of renewable power across 16 key regional markets.
“Our ranking shows that income level is not the sole determinant in a country’s willingness to pursue clean energy. Renewable energy is no longer a rich nation luxury as its cost continues to decline,” said Xizhou Zhou, vice president global power and renewables at IHS Markit as quoted by the site./.
Online gold trading expected for God of Wealth Day
God of Wealth Day - on the 10th day of the lunar year, or February 21 this year - will still be celebrated but no one will be queuing up to buy gold, experts have said.
Given the latest outbreak of COVID-19, gold and jewellery firms, including major businesses like DOJI and PNI, have stepped up online sales, with various promotional programmes in place.
According to legend, the God of Wealth returned to heaven on the 10th day of the first lunar month, so people traditionally buy gold on that day to ensure good luck and prosperity throughout the year. In recent years, people have queued up from 3 or 4 am to buy their “lucky” gold.
Together with ordinary gold items, items for sale include charm bracelets made from 24k and 18k gold. Those in the shape of animals are popular.
The total number of COVID-19 cases in Vietnam stood at 2,347 as of the evening of February 18, including 1,448 community infections, the National Steering Committee for COVID-19 Prevention and Control reported.
A total 144,071 people who had close contact with COVID-19 patients or arrived from pandemic-hit areas are being quarantined nationwide.
Since January 27, when the pandemic broke out in northern localities, 755 new cases of community transmission have been detected./.
Socialist-oriented economy helps Vietnam go forward confidently: Russian expert
A socialist-oriented economy is the firm foundation for Vietnamese people to look to the future with confidence, Chairman of the Council of Experts of the Eurasian Research Fund Grigory Trofimchuk told Vietnam News Agency's correspondents in Russia.
The expert said the socialist democracy model has certain advantages and good development prospects, with social factors playing an important role and the human factor never forgotten, particularly in Vietnam.
He noted Vietnam has extensive international relations and participates in most of the major international organisations.
According to him, Vietnam has come up with approaches that can help the world respond better to a number of challenges, such as the COVID-19 pandemic. When participating in international organisations and economic forums, the Vietnamese Government has clearly introduced benefits of such memberships to the Vietnamese people, creating links between the sides and their consensus towards a common goal.
The expert praised the outcomes of the Communist Party of Vietnam’s 13th National Congress at a time when the country has an increasing role and importance regionally and internationally.
He said the congress has truly propelled the country forward as it addressed key issues of the nation and set out new tasks for the national development toward 2045.
He also took the occasion to express his belief in Vietnam’s future successes./.
State’s management must respect law of market to facilitate private sector: PM
Permanent members of the Government held a meeting under the chair of Prime Minister Nguyen Xuan Phuc on February 18 to discuss a draft plan on comprehensively reforming the State’s economic management.
The draft plan is intended to carry out the Party Central Committee’s Resolution No 10-NQ/TW on developing the private economic sector into an important driving force of the socialist-oriented market economy.
Providing a summary of the draft, Minister of Planning and Investment Nguyen Chi Dung said with five groups of solutions and 25 tasks, the plan targets that by 2030, the State’s management methods will be reformed in a fundamental and comprehensive manner and aligned with international principles and practices so as to create a favourable business climate for all economic sectors, thereby helping to achieve the targets relevant to the private economic sector stated in Resolution No 10-NQ/TW and the Government’s Resolution No 98/NQ-CP.
Besides, policies and laws on economic affairs will be made in a way that respects the law of market, ensures consistency and comprehensiveness, and treats businesses and organisations equally, regardless of which economic sectors they belong to.
Addressing the event, PM Phuc emphasised the importance of this plan, which has a “very large” scale and scope as it will greatly affect a number of sectors and areas, particularly in the country’s new development period after the 13th National Party Congress.
As the private sector has grown rapidly in the recent past with the emergence of many major firms, the draft needs to point out obstacles to this sector’s development and set forth solutions, he said.
The Government leader requested that the draft should take into account the country’s situation; the fast changing international situation; impacts of natural disasters, climate change, and the COVID-19 pandemic; along with the strong development of science-technology and the Fourth Industrial Revolution.
It should thoroughly grasp the 13th National Party Congress’s documents and resolution, which includes many new viewpoints and orientations for the State’s economic management.
Solutions to remove hindrances facing production and business activities, including those of the private sector, also need to be provided in this draft in order to facilitate private businesses’ operations in Vietnam, the PM noted.
The State’s management activities must respect the law of the market to promote the socialist-oriented development of the private economic sector, he said, adding that every potential and advantage should be fully optimised so as to foster the fast and sustainable development of this sector as in line with the 13th National Party Congress’s resolution.
Also on February 18, permanent Government members looked into a draft report on public borrowing and public debt repayment during 2016-2020 and a plan on this issue for 2021-2025 which will be submitted to the National Assembly./.
Da Nang posts auspicious early signs in FDI attraction
The central city of Da Nang has seen rosy signs regarding foreign direct investment (FDI) attraction at the beginning of the new year.
It recently granted a certificate of investment registration to a project worth 35 million USD from Japan’s Fujikin Incorporated to develop a research and development centre, according to the Da Nang Hi-Tech Park and Industrial Zones Authority.
The project aims to step up scientific research and technological development in the fields of robotics, drones, and nano devices, among others.
A company representative said it will promptly carry out investment procedures and construction is scheduled to begin in May.
Completion and opening are expected in July 2022 to mark the 20th year of Fujikin’s operations in Vietnam.
Head of the authority Pham Truong Son noted that this is the seventh Japanese-invested project in the Da Nang Hi-Tech Park and also the second-largest in terms of registered capital.
Project approval is a silver lining in the city’s FDI attraction against a backdrop of the ongoing pandemic, he said, adding that the city is working to attract more investment from Japan.
Meanwhile, Arevo Inc., a software company from the US, is considering pouring 135 million USD into a project on 3D printing services at the Da Nang Hi-Tech Park.
The project is expected to create an impact for the development of the Da Nang Hi-Tech Park and Industrial Zones in innovation, investment promotion, and human resources development, Son said.
Some 145 million USD in FDI has been gone to the Da Nang Hi-Tech Park and Industrial Zones in the first two months of the year, bringing the total amount to 536.1 million USD./.
90 percent of public investment plan to be disbursed by Q4
Minister of Planning and Investment Nguyen Chi Dung has asked ministries, central agencies, and localities to continue applying measures to speed up the disbursement of public investment capital, with the aim of completing 90 percent of disbursement planned for 2021 by the fourth quarter of the year.
Dung requested that ministries, agencies, and localities build disbursement plans for each month and each quarter.
In the first quarter, the retrieval of capital paid in advance from the State budget investment plan for 2021 is expected to be completed, while in the second quarter the disbursement of capital for projects permitted to extend their investment from 2020 to 2021 is to be finished.
In the third quarter, 80 percent of State investment planned for 2021 will be disbursed to transitional projects scheduled for completion in 2021, along with the completion of procedures for other planned projects.
Based on the middle-term public investment plan for the 2021-2025 period, ministries, central agencies, and localities should select projects to be launched in the period and complete investment verification and investment policies and report to the Ministry of Planning and Investment (MPI) for submission to the Government and the first session of the 15th National Assembly for consideration and decision.
Meanwhile, the ministry will continue reviewing the legal corridor and frameworks related to investment and ODA in a synchronous and transparent manner, while speeding up public-private partnerships (PPPs).
According to MPI, by the end of January, 452.4 trillion VND (19.66 billion USD) in capital planned for 2020 had been disbursed, equivalent to 96.13 percent of the assigned targets, a record for many years.
Disbursement in January was estimated at 15 trillion VND, equal to 3.25 percent of the annual target./.
Farm produce exports to Netherlands soar
The export of Vietnamese farm produce such as aquatic products, pepper, rubber, and rice to the Netherlands has soared since the EU-Vietnam Free Trade Agreement (EVFTA) took effect, the Ministry of Industry and Trade (MoIT) has reported.
Specifically, the shipment of aquatic products rose by 20.2 percent, pepper 20.9 percent, rubber 11.9 percent, and rice 83.7 percent.
Director of the MoIT’s Trade Promotion Agency Vu Ba Phu said the EVFTA provides leverage for both Vietnamese and Dutch businesses.
According to the Vietnam Trade Office in the Netherlands, the country is now the largest importer of Vietnamese fruit and vegetables in the EU. Over 20 percent of fresh fruit and vegetables are being supplied by developing countries to the EU via the Netherlands.
However, links between production and other stages in the supply chain, including post-harvesting and logistics, in Vietnam remain weak.
Experts suggested Vietnamese exporters actively learn about market demand, join more expos to seek partners and expand markets as well as change their perceptions on food safety management.
To fully tap into the opportunities brought about by the EVFTA, they were also advised to join online trade conferences to access the EU and Dutch markets./.