Hanoi aims to ensure greater efficiency in public investment this year, expecting a minimum disbursement rate of 95%.

The goal was mentioned in the city’s public investment plan in 2024, aiming to enhance and expedite the implementation progress and disbursement of public investment at the municipal and district levels.

The focus is on key projects and works in the city, as well as large projects allocated in the 2024 capital plan, it noted.

Particularly, it emphasizes the achievement of 100% of the public investment capital plan for 2023 extended to 2024 and strives to complete disbursement following the provisions of the Public Investment Law. Simultaneously, it ensures the progress, quality, and effective use of funds according to the law.

The Municipal People's Committee urges the heads of departments, boards, sectors, and the People's Committees of districts and towns to take full responsibility for the implementation and disbursement of public investment capital according to their assigned functions and duties.

Discipline and rigor in public investment are highlighted, with increased inspections and supervision of the performance of duties by relevant individuals, and units, personalizing the responsibilities of those in charge in cases of slow disbursement.

“The evaluation of individual and organization task performance will be closely linked to the disbursement progress of their respective agencies,” stated the plan.

In 2023, with the resolute involvement of the entire political system in Hanoi, the disbursement results showed positive changes, reaching the highest cumulative disbursement value to date. As of January 15, 2024, the total disbursement for the entire city was VND50.69 trillion ($2.1 billion), achieving 88.5% of the city's plan and 108% of the plan assigned by the Prime Minister at the beginning of the year.

This disbursement value is 11.9%, above the national average by the end of December, which is 81.9% of the plan assigned by the Prime Minister.

For 2024, the Prime Minister has allocated a public investment plan for the city of VND81 trillion ($3.32 billion) (1.72 times higher than the beginning of 2023), including an investment from land use fees of VND36.1 trillion (2.24 times higher than the plan allocated at the beginning of 2023).

Hanoi is planning to commence the construction of five key transportation projects in 2024. These projects include the Thuong Cat Bridge, Van Phuc Bridge, the road from My Dinh (Hanoi) to Bai Đinh (Ninh Binh), the eastern section of the Phap Van - Cau Gie expressway, and the construction of a section of the Ring Road 3.5 from Thuong Cat Bridge to National Highway 32.

Vietnam's 19 largest State-owned enterprises post profit of US$2.17 billion

The total equity of 19 SOEs was estimated at VND904 trillion (US$37 billion), with total assets of VND1,616 trillion ($66.2 billion).
 Vietnam’s 19 major state-run corporations, excluding Vietnam Electricity (EVN), made a pre-tax profit of VND53.2 trillion (US$2.17 billion) last year.

The figures were revealed on February 5 during a meeting between Prime Minister Pham Minh Chinh and representatives of 19 leading state-owned corporations under the Committee for State Capital Management (CSCM), including the state investment arm State Capital Investment Corporation (SCIC), Electricity of Vietnam (EVN), and Vietnam Oil and Gas Group (PetroVietnam).

In his opening statement, Prime Minister Pham Minh Chinh emphasized the purpose of the meeting, which was to assess achievements and shortcomings, analyze causes, and draw lessons to enhance performance in the coming period.

Acknowledging positive outcomes across various key sectors, Chinh highlighted the pivotal role played by state-owned enterprises in socio-economic development.

With bigger and more challenging tasks ahead in 2024, the Prime Minister called for better performance from each enterprise whose assets total over VND4,000 trillion ($164 billion).

“Although the 19 SOEs constitute a small proportion of the total 820, they wield significant capital and make crucial contributions to economic development and ensuring societal progress and fairness,” said Chinh.

The Government leader also expressed his expectation that state-owned enterprises would be more active in driving economic development this year, especially in investment.

According to the report from the CSCM, by the end of 2023, the total equity of 19 state-owned conglomerates and enterprises was estimated at VND904 trillion ($37 billion), with total assets reaching VND1,616 trillion ($66.2 billion).

SOEs achieved a total revenue of VND1,136 trillion ($46.6 billion), equivalent to 105.15% of the plan and 96.57% of the same period in 2022. Pre-tax profit reached VND53.2 trillion ($2.17 billion), surpassing the plan by 166.09% and exceeding the same period in 2022 by 110.92%.

Tax contributions to the State budget amounted to VND79 trillion ($3.2 billion), surpassing the plan by 199.96% and exceeding the same period in 2022 by 120.22%. Disbursed investment capital reached VND161 trillion ($6.6 billion) out of the planned total of VND208.3 trillion ($8.54 billion), equivalent to nearly 80% of the annual plan.

Ho Sy Hung, Vice Chairman of the CSCM, stated that many major infrastructure, energy, and transportation projects were completed by SOEs last year, such as the Ben Luc - Long Thanh expressway, the Thi Vai LNG port with a capacity of 1 million tons, and Phase 1 of the Long Thanh airport project. Some enterprises, after years of losses, returned to profitability, such as the Vietnam Railways Corporation and Vietnam Airlines, which reduced losses compared to their plans.

Meanwhile, the Prime Minister also pointed out existing limitations that need to be addressed. He mentioned that the contributions of conglomerates to GDP growth are not proportionate to the resources they hold, and the efficiency of their business investments is not sufficiently high.

"The State-owned conglomerates and enterprises need to restructure for development, to operate profitably in 2024, and to contribute more to growth and the budget," stated Chinh.

He requested the CSCM to review and propose changes to regulations within its jurisdiction to address legal issues facing enterprises in areas such as pricing, environment, and land.

Chinh emphasized the need for a cooperative spirit without pushing or avoiding issues, minimizing disruption, adopting a decentralized and delegated approach, reducing administrative procedures, and working alongside businesses to overcome difficulties.

At the conference, Chinh also called for any decision to adjust the electricity prices to be "in line with the market, avoiding abrupt changes and hasty decisions."

In late January, the Ministry of Industry and Trade (MoIT) proposed an increase in electricity prices this year to alleviate difficulties of EVN, which reported a loss of VND17 trillion ($697.2 million) last year and faced fluctuations in input costs for power production (coal, oil, gas).

The retail electricity pricing mechanism is based on Decision 24/2017, which provides for a six-month between two price adjustments if input costs increase by 3% or more in production costs. Last year, electricity prices increased by a total of 7.5%, following adjustments in May and November.

Under the MoIT’s proposal, if approved by the relevant authorities, the next price hike could take place in May this year. According to the ministry, this would reflect the fluctuations in input costs and help EVN generate funds to pay investors in power plants.

Alongside price adjustments, the Prime Minister also reiterated the requirement for the MoIT and the EVN to ensure power supply in the coming time. He instructed the PVN and the Vietnam National Coal-Mineral Industries Holding Corporation Limited to ensure sufficient oil, gas, and coal for power generation according to the plan.

In addition to securing energy sources, the expedited construction and operation of the 500 kV Quang Trach - Pho Noi transmission line segment 3 by June this year is expected to ensure sufficient electricity in 2024. It is estimated that this transmission line, when operational, will increase the supply to the northern region by approximately 2,000 MW.

Vietnamese fruits promoted in Berlin exhibition

Vietnamese fruits have been introduced at the Fruit Logistica, the world's largest fruit and vegetable exhibition in the world, which is underway in Berlin from February 7-9.

Seven Vietnamese companies brought their products to the event. This is the third year that Vietnam has joined the exhibition.

Tran Van Cong, Agricultural Counsellor at the Vietnamese delegation to the EU, said that the European market spends up to 300 billion USD to import agricultural products, including about 60 billion USD for the fruit and vegetable group alone. So, there is huge potential for Vietnam's exports.

In the coming time, Vietnam's Ministry of Agriculture and Rural Development will carry out an action programme to promote the export of agricultural products to the European market as well as strengthen coordination with relevant agencies and guide localities and businesses to assist farmers in producing products that are qualified to enter the EU.

More promotional work will be done so that Vietnamese goods can penetrate deeply and widely into the European market, he said.

According to the General Department of Vietnam Customs, Vietnam's fruit and vegetable export turnover to the German market surpassed 36 million USD in 2023, an increase of 45.6% from the previous year.

Fruit Logistica is the world's most important trade fair for the fresh fruit and vegetable industry, aiming to increase businesses' direct access to global markets. This year, it focuses on fresh vegetables, fruits, organic products, and innovative solutions in agricultural processing equipment and machinery. The exhibition attracted 2,770 businesses from 94 countries around the world this year.

Vietnamese products promoted in France

A week-long event to honour Vietnamese products was launched at the Carrefour hypermarket in the Westfield Carré Sénart shopping centre in Seine-et-Marne province, Île-de-France, on February 7.

A booth for Vietnamese products, particularly popular ones for the Lunar New Year (Tet) festival, is at the main entrance of the hypermarket, in front of booths selling products from other Asian countries. Red "Happy New Year" banners in Vietnamese, a five-fruit tray, and “Chung” cakes – typical food in Tet celebration in Vietnam - draw attention from Asian and French customers.

This is the third year such an event has been held in the Carrefour hypermarket system - a leading retail group in France.

Many types of fruits and processed foods such as fried spring rolls, noodles, vermicelli, coffee, and industrial products are sold at this year's Tet booth.

Vu Anh Son, head of the Vietnam Trade Office in France, said the event shows efforts from all sides - Vietnamese representative agencies in France, distributors, and import partners, to promote agricultural products and the image of Vietnam to French consumers.

CEO of Carrefour France Franck Kenner said that the hypermarket system always pays attention to the diversity of products provided for French and Vietnamese consumers.

Many Vietnamese products with exquisite cuisine and health benefits are welcomed by French consumers.

He said Carrefour is interested in diversifying products and hopes to have more Vietnamese cuisine and agricultural products in its system to bring experience and service to French consumers.

Petrol prices drop by up to 900 VND per litre

Petrol prices were slashed by up to 900 VND per litre by the Ministry of Industry and Trade and the Ministry of Finance from 3pm on February 8.

Accordingly, the price of the popular type of RON 95 fell 900 VND to 23,260 VND (0.95 USD) per litre. Meanwhile, the price of E5 was decreased by 790 VND to 22,120 VND per litre.

Diesel oil is now priced at 20,700 VND per litre, down 290 VND.

In the latest fuel price adjustment, the two ministries decided to use the petrol price stabilisation fund for mazut oil only.

Businesses revised their petrol prices basing on this adjustment by the two ministries.

Localities, travel companies offer products, services to attract tourists during Tet

Localities and tourism businesses have prepared many products and services to attract tourists during the Lunar New Year (Tet) holiday.
According to research and surveys by the Outbox Company, domestic tourism will still be a priority for tourists during Tet 2024.

One of the world's leading online travel platforms, Booking.com announced a list of the ten most popular domestic destinations on this occasion based on searches and bookings from February 8-14 (the 29th day of the 12th lunar month to the 5th day of the first lunar month). Beach tourism remains the top choice with six out of ten most-searched destinations having beautiful beaches, such ascNha Trang, Da Nang, Vung Tau, Phu Quoc, Mui Ne, and Hoi An.

To attract visitors during Tet, cities and provinces have planned various activities.

Hanoi has just launched a nighttime tourism programme "Ngoc Son temple - Mysterious Night". Organised on evenings of the first four days of the week starting February, each tour under the experimental programme lasts for 60 minutes and serves between 60 and 70 visitors.

At other tourist attractions in the city like the Temple of Literature, Vietnam Museum of Ethnology, Thang Long Imperial Citadel, and pedestrian zone around Hoan Kiem Lake, many activities will be held during Tet.

Meanwhile, in Ho Chi Minh City, visitors can visit the flower festival "Spring of Love - Tet Reunion", Nguyen Hue flower street,  Vietnamese Tet Festival 2024.

In Da Nang city, there will be a spring festival, the "Han River Dance" festival, street music events, and the Quang Da Tet culinary culture festival.

According to the Da Nang municipal Department of Tourism, it expects to serve nearly 362,000 tourists, including 172,000 foreigners, during Tet, an increase of 23% from the same period in 2023. More than 890 flights are expected to arrive in Da Nang during the period, an increase of 16% over the same period last year.

According to travel companies, this year, tourists tend to tighten their spending but still prioritise choosing high-quality tours at reasonable prices. Holidaymakers ask for product information and book tours earlier to get good service prices and suitable departure schedules.

Deputy Director of the Domestic Tourism Division at Saigontourist Travel Services Co., Ltd Vu Hai Sam said that from the 23th day of 12th lunar month to the 10th day of first lunar month, the company plans to serve more than 28,000 domestic and international tourists, a year-on-year increase of 20%.

He said that tours to northern localities, ranging from 9-15 million VND (366-610 USD), have been attractive to visitors.

Saigontourist also recorded optimistic signals from the international tourist market as cruise ship Celebrity Solstice carrying about 2,300 passengers and crew will arrive in Ho Chi Minh City on the 5th day of the lunar new year, and it will cruise to Nha Trang and Hue and then to Ha Long on the 9th day.

Paradise Vietnam's cruise ships will organise many attractive activities for tourists during Tet. Participating in journeys of discovery, tourists can enjoy traditional Vietnamese dishes, attend New Year's Eve parties, receive lucky money, try King Bao Dai's dress, and enjoy entertainment and art programmes.

With a one-day cruise tour in Ha Long Bay, tourists can enjoy a meal while watching the art show "Dance of the Sea" on the Paradise Delight restaurant cruise ship.

"Dance of the Sea" which officially serves tourists from April 2023 is an art performance programme imbued with Vietnamese culture, designed specifically for yachts on the bay.

Local consumption to regain spotlight: bank

While Government expenditure was the main driver for the economy in 2023, local consumption will regain the spotlight in 2024, experts predicted.

In a strategy report for 2024, Maybank Investment Bank forecasts steady economic recovery throughout 2024 with consumption regaining the spotlight thanks to a re-strengthening of exports, healthier household balance sheets and gradual revival of the real estate sector.

"Unlike the bumpy road in 2023, we forecast steadier economic growth in 2024. We forecast Vietnam’s GDP growth to accelerate to 5.8% year-on-year in 2024 from 5.05% in 2023,” Maybank said.

For the stock market, Maybank laid out two scenarios for the VN-Index with 11% or 26% upside potential based on 19.8% year-on-year earnings growth and the potential upgrade of Vietnam to emerging market status as the key transition to a bull scenario.

In both cases, the bank projects the market will see notable volatility in the first half of 2024 amid mixed views in the market about the pace of recovery and worries about the banking and property sectors. The market should then speed up in the second half, fueled by higher confidence of a recovery.

“We like cyclical sectors, especially consumption related, and upgrade our real estate sector view from negative to neutral,” it said.

The bank’s stock picks for its base case in 2024 are MWG, PNJ, VEA, FPT, MBB, STB, PVD, VNM and NLG.

According to Maybank, a corporate earnings recovery will drive market returns with a potential liquidity boost from a market upgrade.

“We forecast corporate earnings to grow 19.8% year-on-year in fiscal year 2024 from a 3.4% year-on-year drop in fiscal year 2023. Thanks to a low base and steadier economic recovery in 2024, we expect corporate earnings to grow smoothly throughout FY24E, driven by retail, steel, IT and banks,” said Maybank.

The bank forecasts that market liquidity is likely to remain good thanks to the accommodative stance of the central bank, while a potential upgrade of Vietnam’s market status by FTSE would be a game changer that supports a significant re-rating.

Given recovery in the economy and the broader stock market, Maybank is bullish on cyclical sectors, especially consumption-related ones.

“Under our base-case scenario, we like companies that can deliver solid and/or outstanding earnings growth. We also select more defensive stocks that have net cash positions and a track record of regular dividend payments. In the bull case, we like more large caps and high-beta stocks, especially those that still have room for foreigners,” it said.

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