People and export goods going through border gates in Mong Cai city, the northern province of Quang Ninh, will no longer have to undergo COVID-19 RT-PCR testing from January 8, according to the city’s administration.

The move came after authorities of Mong Cai and China’s Dongxing city held talks to reach an agreement on the matter on December 21 last year.

Despite easing COVID-19 prevention measures at the border gate area, Mong Cai city still requires people entering the area to wear masks, disinfect their hands, and not gather in crowds. Drivers of transit trucks still have to wear protective clothing, masks, gloves, shoe covers and glasses.

Relevant forces as well as businesses and labourers working at border gates are asked to strictly follow pandemic prevention and control measures.

According to Hoang Ba Nam, Secretary of Mong Cai city Party Committee, the easing of pandemic prevention measures will create favourable conditions and reduce costs for businesses when exporting goods through the city’s border gates.

Vietnam becomes largest importer of RoK

The Republic of Korea (RoK) posted a trade surplus of 34.26 billion USD with Vietnam in 2022, according to the country's Ministry of Trade, Industry and Energy (MOTIE). 

This is the first time Vietnam has become the largest trade partner of the RoK.

The ministry reported that the RoK’s export turnover to Vietnam last year totaled 60.98 billion USD, while it spent 26.72 billion USD on importing goods from the Southeast Asian nation.

An official from the ministry said that among the ASEAN countries, Vietnam is emerging as a production base for global companies, adding that Korean businesses are constantly making inroads into the Vietnamese market.

After Vietnam, the countries and territories that the RoK had large trade surplus included the US with 28.04 billion USD, Hong Kong (China) 25.79 billion USD, India 9.98 billion USD, and Singapore 9.86 billion USD. 

Last year, the RoK’s export turnover hit a high record of 683.9 billion USD, leaping to the sixth position in the world. However, it also recorded a record high trade deficit of 47.2 billion USD as its imports soared amid rising energy prices.

Good start for HCM City's tourism sector

The Ho Chi Minh City Department of Tourism on January 3 announced that the locality welcomed roughly 35,000 foreign arrivals and 1.6 million vacationers during the recent 3-day New Year holiday, earning more than 5.9 trillion VND (251 million USD).

As the Lunar New Year - the longest and most important annual festival for Vietnamese - is just around the corner, the sector will continue to launch assorted programmes and events to attract more visitors to the locality.

The city will strengthen support activities for tourists via Information Portal 1022 hotline which helps intensify collaboration among provinces, cities and travel agents, meeting visitors' information demands, creating a professional and friendly tourism atmosphere for holiday-makers coming to the city.

The city aims to greet 5 million international arrivals and 35 million domestic visitors in 2023.

UOB maintains Vietnam’s GDP growth forecast at 6.6%

The Singapore-based United Overseas Bank (UOB) has kept its forecast for Vietnam's GDP growth in 2023 unchanged at 6.6% in line with the official forecast of 6.5%, although growth momentum is likely to be weaker.

In its report on Vietnam's economic growth in the last quarter of 2022 and prospects for 2023, the bank said Vietnam's real GDP growth in the fourth quarter of 2022 returned to normal at 5.92% year on year, due to signs of a decline in external demand. There was a sharp increase of 13.67% in the third quarter.

The General Statistics Office (GSO) reported that the country's GDP expanded by 8.02% in 2022 from the growth of just 2.58% in 2021. This is the fastest pace annually since 1997.

UOB experts said that the strong growth thanks to its manufacturing and service industries in 2022 shows Vietnam's resilience after the impact of the COVID-19 pandemic.

The bank said the inflation rate is likely to remain stable, especially in the first half of 2023 thanks to the flexible management of monetary policy by the State Bank of Vietnam.

At the end of December 2022, the State Bank of Vietnam said that it will operate monetary policy "flexibly" to keep the inflation rate at 4.5% in 2023, aiming to stabilise the currency and foreign exchange markets.

Regarding the foreign exchange strategy, UOB forecast a upward momentum of VND/USD exchange rate with a forecast of 25,200 VND, 25,400 VND, 25,600 VND, and 25,800 VND in the four quarters of 2023.

HCM City gold export revenue reaches $20-30 million per year
     
The export turnover of gold jewellery reached about US$20-30 million per year to Asian and European markets, reported the Saigon Jewelry Association (SJA).

Summarising incomplete data from many sources, SJA said that the whole country imported an estimated 1,000 tonnes of raw gold, kilogramme gold bars and gold beads in the 21 years from 1991 to 2012.

HCM City consumed about 80 per cent of the amount of gold imported into the country, estimated at 800 tonnes, to serve the production and business of enterprises.

For fine art gold jewellery, production and consumption is growing every year. The whole country produces and consumes an estimated 50 tonnes of fine gold jewelry each year from 1991 to 2021.

HCM City alone consumes more than 80 per cent, or around 40 tonnes of gold jewelry.

The production capacity of enterprises in HCM City is about 11 million products per year, accounting for nearly 40 tonnes of gold per year.

Goods that meet export standards to the European market are about 2.4 million products per year, concentrating on units with investment in technological equipment, skilled workforce, and financial capacity.

However, SJA said that after Decree 24 of the Government and Circular No 16 of the State Bank of Viet Nam on the management of gold business took effect, the import of raw gold by gold jewelry manufacturing enterprises has not been allowed and partly caused difficulties for businesses up to now.

In particular, the domestic gold and silver market prices hardly kept pace with the world market, out of the predictions of investors, gold production and trading enterprises.

Rice exports set for major breakthroughs in 2023

Vietnamese rice exports are forecast to see major breakthroughs this year thanks to high export price recorded in 2022 coupled with China's reopening.

According to data compiled by the General Department of Vietnam Customs, as of December 15, the country's rice exports reached over 6.8 million tonnes, raking in more than US$3.3 billion, up 15.2% in volume and 6.5% in value compared to the same period from last year.

With these positive figures, the Ministry of Agriculture and Rural Development anticipates that the country will fetch between US$3.5 billion and US$3.6 billion from exporting over seven million tonnes of rice this year.

Most notably, the export price of rice has continued to edge up over recent days with the price of local 5% broken rice for export and 25% broken rice standing at US$453 and US$438 per tonne, representing a rise of US$10 and US$5 per tonne, respectively.

This comes as the price of 5% broken rice in November also surpassed that of Thailand to be traded at US$447 per tonne, while Thailand's 5% broken rice was sold at only US$440 per tonne.

With regard to the rice industry’s achievements last year, Do Ha Nam, vice president of the Vietnam Food Association, emphasized that despite fluctuations occurring in the global market, rice exports to major markets such as the Philippines recorded strong growth of nearly 30%.

Furthermore, 2022 also marked a successful year as Vietnamese rice made inroads into the Middle East and European markets, with a high price of over US$1,000 per tonne. The European market saw ST24 and ST25 fragrant rice branded Trung An traded at over US$1,000 per tonne.

More importantly, high export prices will also create favourable conditions to expand the cultivation area and improve productivity moving forward.

Moreover, the rice sector is expected to enjoy bright prospects in markets such as the Philippines, China, Europe, and Bangladesh.

In particular, China's reopening is predicted to be a promising sign for rice exporters, particularly as the nation exported between 2.5 million to 3 million tonnes to the Chinese market over the previous years, Nam said, adding that the country is likely to export one million tonnes of rice to the northern neighbour thanks to their reopening.

Meanwhile, Bangladesh has recently agreed to extend its memorandum of understanding (MOU) on rice trade with the nation for an additional five years.

With the Philippines maintaining a rice import tax of 35%, there remains plenty of room to boost Vietnamese rice exports in the market as the Philippines may need to import at least three million tonnes of rice due to an ongoing shortage of rice production.

Unusually, beer and soft drink prices fall before Tet

Beer and soft drink companies, which traditionally used to increase prices ahead of Tết (the Lunar New Year), are instead offering promotions this year as the sluggish post-COVID economy has hit demand.

With their incomes decreasing, people are not willing to spend much on beverages for Tết this time, experts said.

Bách Hóa Xanh stores in HCM City have cut the prices of a 12-can carton of Tiger Beer (500ml) from VNĐ275,000 to VNĐ255,000 (US$11.7-10.85) and Việt beer (330 ml) from VNĐ135,000 to VNĐ123,000(US$5.74-5.23).

They are offering a ‘buy 4 get 1 free’ promotion for Strongbow beer.

Co.opmart supermarkets have cut the prices of 330ml Tiger beer cartons (24 cans) from VNĐ374,500 to VNĐ366,000 and Larue beer from VNĐ262,600 to VNĐ199,000.

Other supermarkets such as MM Mega Market and Emart are offering discounts of 3-8 per cent on many beers.

Coca-Cola cartons are seeing their prices reduced by VNĐ10,000-24,000 at many supermarkets, which are also offering gifts to buyers.

On e-commerce websites like Shopee and Lazada too, there are discounts of 10 - 30 per cent, even 50 per cent, on beverages such as Mirinda, Coca-Cola, Vĩnh Hảo, and Bidrico.

With supply being high and demand 20-25 per cent below normal, beer and soft drink prices seem set to fall further. 

Vietnam is one of potential markets for branded residences

Vietnam is among the four markets with potential growth in branded residences segment, according to a global Savills' report.

Branded residences, as a property sector, have proved to be incredibly resilient in the face of global uncertainty and change. The sector has not only survived the disturbance but continues to thrive. Over the past 10 years, it has grown by over 150 per cent, Savills reported. 

Savills Branded Residences shows that Dubai, South Florida, and New York are the top three locations for branded residences globally this year, based on their supply of completed and pipeline schemes. 

By volume of pipeline, the United States, United Arab Emirates, Việt Nam, and Mexico are forecast to add the largest number of schemes – more than 30 in each country, in the future.

VN is leisure and business destination, and both tap into a wide range of international demand. The high net-worth individual (HNWI) population in Việt Nam has expanded by 86 per cent in the last five years. The burgeoning middle- and upper-classes in the country also present further potential for branded residences.

Mathew Powell, Director of Savills Hanoi said: “During the economic turmoil, buyers will look for the property with long-term investment potential, this is also an advantage of branded residences.

He also stressed the associated risks of poorly planned projects. The failure to hand over projects on time or with the expected financial commitments has impacted the appetite for the second home market.

According to Oxford Economics forecasts, the highest growth in terms of number of high-income households over the next five years is projected in the Americas, Asia Pacific, the Middle East and European regions. These locations expect some of the new high-net-worth buyers to be looking for primary residences and second homes in branded schemes. According to Savills, the future hotspots include some of the cities that are going to see a strong rise in wealth, such as Jakarta, HCM City, Beijing and Shanghai.

Domestic demand for luxury branded residences is likely to grow faster in emerging markets (where the base point is low), such as HCM City, where the quality of the existing stock is unlikely to meet the requirements for high-quality fit-out and services by new HNWI. In these markets there will be opportunities for urban upscale products as well as luxury products for brand-loyal, well-travelled customers. 

Hanoi attracts nearly 1.7 billion USD in FDI in 2022

Hanoi attracted 1.69 billion USD in foreign direct investment (FDI) last year, still among the localities leading the nation in this field.

The figure represents a year-on-year rise of 10.3%, according to the city’s Statistics Office.

In the year, there were 365 newly-registered projects totaling 233 million USD, and 202 projects that had their capital adjusted with a combined investment of 834 million USD. Foreign investors also spent 625 million USD on contributing capital to and purchasing shares of existing ones.

Foreign capital was mainly poured into import-export activities, goods distribution, construction, information technology, telecommunications, processing, and manufacturing.

According to the Hanoi Promotion Agency (HPA), after more than two years of disruptions caused by the COVID-19 pandemic, in 2022, the city implemented a lot of trade promotion activities both inside and outside the country, with priority given to such key markets as Japan, the Republic of Korea, Singapore, Taiwan (China), China, the US and the European Union.

Most recently, a working delegation led by Vice Chairman of the municipal People’s Committee Nguyen Manh Quyen paid visits to the US and Belgium to step up trade promotion with traditional partners and seek new ones.

For the 2021-2025 period, Hanoi has set a target of attracting 30-40 billion USD in foreign investment, and disbursing from 20 to 30 billion USD.

The city is giving priority to projects in urban infrastructure, smart city building, supporting industry, information technology, tourism, finance-banking, human resources training, and hi-tech agriculture.

Nearly 4,000 tonnes of cargo cleared through Mong Cai border gate

Nearly 4,000 tonnes of cargo were customs-cleared in Hai Yen ward, Mong Cai city, in the northern province of Quang Ninh in the first two days of 2023, according to the management board of Mong Cai International Border Gate.

Of the total, 3,316 tonnes of goods, mostly agricultural and aquatic products, were exported to the Chinese side. Meanwhile, 527 tonnes of goods were imported.

On January 3, Bac Luan 2 Bridge will open for vehicles. Local authorities have prepared COVID-19 prevention and control measures to ensure safety.

Earlier, on December 31, the border bridge in Hai Yen handled 187 vehicles transporting 2,108 tonnes of goods to China and 94 others carrying 298 tonnes of goods to Vietnam.

PM directive to ensure payment demands during Tet

The State Bank of Vietnam (SBV) must direct commercial banks to meet all payment and cash demands of individuals and firms during Tet (Lunar New Year).

It was under Directive No. 22/CT-TTg issued last week by Prime Minister Pham Minh Chinh with an aim to prepare for the country’s largest festival Tet, which falls on January 22, 2023.

Under the directive, the Prime Minister requested the SBV to proactively monitor the global and domestic economic developments in order to manage the monetary policy cautiously and flexibly.

Interest rates and exchange rates must be managed reasonably and in line with the market situation to ensure the stability of the monetary and foreign exchange markets, the Prime Minister noted.

The monetary policy must be closely coordinate with fiscal policy and other macroeconomic policies in order to contribute to controlling inflation, stabilising the macro-economy and ensuring the great balance of the economy, according to the directive.

The Prime Minister also required the SBV to strengthen inspection and supervision of operation of credit institutions and foreign bank branches, ensuring the safety of the entire banking system.

The SBV must also direct commercial banks to proactively develop and implement specific plans for ATM operations at the end of this year and the upcoming Lunar New Year, including cash plans for ATM, ATM funds, staff and maintenance for ATMs.

Commercial banks are directed to closely monitor to detect and refill ATMs that run out of money; take measures to promptly handle and respond to incidents and situations to ensure safe and smooth operation of the ATM system; promptly support and solve customers' problems during ATM transactions, prioritise quick handling of cases where ATMs swallow cards.

According to the current legal regulations, commercial banks will be fined 15 million VND for ATM machines that run out of cash. A fine of 10-15 million VND will be imposed on banks that suspend ATM operations without a 24-hour notice.

Hanoi targets to attract US$400 million in industrial parks

Hanoi targets to attract around US$400 million in foreign direct investment (FDI) into industrial parks and production zones in the city in 2023, representing an increase of 20% against this year.

Hanoi Export Processing and Industrial Zones Authority (HIZA) Director Le Quang Long gave the information at an investment promotion conference in the city's industrial and production zones held on Dec. 28.

Other objectives include a 10% increase in industrial company revenues and a 13% increase in export growth year-on-year.

Hanoi is set to complete the preparation process for the construction of two to three new industrial parks and map out a complete development plan for a network of industrial parks in the city during the 2021-2030 period, with a vision for 2050.

At the conference, Vice Chairman of the Hanoi People’s Committee Nguyen Manh Quyen said that Hanoi’s economy has achieved strong results by completing all 22 socio-economic objectives set for 2022.

Among the key objectives were a GRDP growth of 8.89% - the city’s highest economic growth in the past 10 years, and state budget revenue expansion of 6.8%, exceeding  the year’s estimate.

For next year, Quyen expected Hanoi to continue speeding up the decentralization of powers among state agencies, focusing on the simplification of administrative procedures and greater support for businesses.

In 2022, HIZA attracted $360 million in investment capital into industrial parks, up 20% from the previous year, including 10 new projects worth $35 million, while investors injected an additional 324 million into 18 ongoing projects.

Among investors with large projects in the city included Meiko Vietnam Electronics with additional capital of $150 million, Shunyun Hanoi Vietnam ($90.5 million), Nidec Sankyo ($32.5 million), TMC Vietnam Medical Equipment ($16.7 million); and HTMP ($6.7 million).

Hanoi currently has 10 industrial parks covering a total area of 1,300 hectares, nine of which have been put into operation with an occupancy rate of nearly 100% while the remaining one is the Hanoi South Supporting Industrial Park  which is  under construction. Companies in 10 industrial parks in Hanoi generated revenue of $8.1 billion in 2022, up 4.1% year on year.

Vietnam eyes policies to attract FDI in chip production

Vietnam plans to encourage foreign direct investment (FDI) in chip production through various mechanisms and policies next year.

The Ministry of Planning and Investment has been assigned to draft these mechanisms and policies, which will be submitted to the Government for approval in the first quarter of 2023.

This move, which responded to a request by Prime Minister Pham Minh Chinh, aims to encourage existing high-tech FDI projects to expand investment in the Southeast Asian country, one of the manufacturing bases of Samsung, the world’s largest chipmaker.

The South Korean giant plans to open the first semiconductor component fab with an investment capital of $920 million in the northern province of Thai Nguyen in the second quarter of 2023.

Attending the opening ceremony for its research and development center this month, the Prime Minister is confident the South Korean investor will conduct chip production in Vietnam next year.

Another South Korean, Amkor Technology, will build a $1.6 billion plant to manufacture, assemble and test semiconductor products in the Yen Phong II-C Industrial Park in the northern province of Bac Ninh until 2035.

Meanwhile, Japan's Kyocera Corporation announced this month that it would double its three-year investment in semiconductor manufacturing and other industries in Vietnam and other countries.

Earlier, Vietnam successfully attracted US-based Intel Corporation's investment in a large chip assembly and testing fab.

With the advantages of investment policies, a talented workforce, and a stable environment, the country has gradually developed into a semiconductor manufacturing hub with a view to setting foot in the chip manufacturing sector.

According to Fitch Solutions, Vietnamese industrial parks continue to attract considerable foreign investment amid the resurgence of Covid-19 outbreaks, especially in the electronics industry. 

The country’s semiconductor industry is projected to grow by $6.16 billion, progressing at a nearly 19% compound annual growth rate (CAGR) in the 2020-2024 period, according to the market research firm Technavio. 

Nguyen Le Huy from the School of Science, Engineering & Technology said that joining the global R&D, the design, production, and distribution of semiconductor chips will bring enormous economic advantages to Vietnam. Given the country’s position and capabilities, medium- and long-term strategies are needed to develop the semiconductor industry.

He suggested that, in the medium term, Vietnam needs to engage in R&D phases that rely heavily on the human factor. The Government needs to continue to invest and offer preferential policies to attract large companies such as Samsung, Intel, Synopsys, and Cadence to establish or expand their semiconductor R&D centers in Vietnam.

Da Nang ranks third in economic growth in 2022

The central city of Da Nang ranked third in terms of economic growth and 17th in economic scale nationwide in 2022, the municipal Department of Statistics reported at a press conference on December 30. 

Data of the agency show that Da Nang leads the five cities in the central key economic zone both in economic growth and size. 

According to General Director of the Department of Statistics Tran Van Vu, thanks to great efforts from the municipal Party Committee, authorities, businesses and people, Da Nang’s socio-economic development has been flourishing, and many key economic sectors have recovered quickly and produced breakthroughs. 

Solutions to support businesses and social security policies have been implemented effectively, he added. 

The city’s GDRP rose by 14.05% year-on-year, and 6.34% compared to 2019. 

The locality’s economic size totaled 125.2 trillion VND (over 5.29 billion USD), increasing over 17.38 trillion VND compared to 2021.

The service area holds the key position in the city’s economy with an estimated yearly growth of 17.85%, contributing 13.31 percentage points to the increase in the total value added (VA).

HCM City promotes application of AI technology across areas

Many sectors and units in Ho Chi Minh City have strengthened the application of Artificial Intelligence (AI) technology in various fields, aiming to enhancing the efficiency of production, promoting administrative reform and improving investment environment.

Since August last year, the city has piloted AI technology in supervising and handling complaints and suggestions of the people in real time.

According to Colonel Nguyen Toan Thang, director of Police of Thu Duc city, his office is using 20 smart cameras with AI integration, which helped discover six cases of drug crimes and social evils.

Director of the municipal Department of Information and Communications Lam Dinh Thang said his agency will coordinate with relevant parties to apply AI technology to support the planning work and deal with overlaps in business inspection activities.

Nguyen Thien Nhan, former Secretary of the municipal Party Committee, said AI technology can help compare and review documents, and look up legal documents more easily.

The city will also pilot AI technology for the urban railway supervision system, forecasting passengers’s demand for using metro, setting up traffic forecasting models and analysing traffic behavior, and forecasting the possibility of disease transmission and epidemiological factors on GIS data sources.

Vice Chairman of the municipal People’s Committee Duong Anh Duc said the city will focus on training human resources, investing more in infrastructure development and building coordination mechanisms between State management agencies with researchers and businesses, aiming to further promote AI research and development.

More financial sources will be approved to foster AI application in the fields that the city is in need of, he said.

Number of newly-registered, reoperating firms up over 30% in 2022

There are 208,300 enterprises entering the Vietnamese market or resuming their operation in 2022, up 30.3% year-on-year, according to head of the General Statistics Office (GSO) Nguyen Thi Huong.

Specifically, this year, 148,500 registered to be set up, with a combined capital of 1.59 quadrillion VND (67.4 billion USD) and 981,300 labourers, up 27.1% in the number of firms, and 14.9% in the number of workers, and down 1.3% in capital year-on-year.

Meanwhile, 59,800 enterprises re-operated, up 38.8% year-on-year.

Also in this year, 73,800 firms suspended their operation, up 34.3% year-on-year; while nearly 50,800 ones stopped operating and waited for dissolution procedures, up 5.5%; and 18,600 completed dissolution procedures, up 11.2%.

A survey on business results of processing and manufacturing firms in the fourth quarter shows that 32.6% of the respondents said they saw better performances compared to the third quarter, while 33.7% saw their production and business stable, and the same proportion said they faced difficulties.

To support businesses, Huong proposed ministries and sectors ensure the supply of materials and energy to meet requirements of production and business recovery and socio-economic development; help solve difficulties facing important industrial projects; and provide maximum support for factories to maintain and restore production.

Strong growth recorded in tra fish exports to ASEAN markets

A surge of 87% was seen in tra fish exports to ASEAN markets in the first 11 months of this year to 183 million USD, accounting for about 8% of total export revenue of the product in the period.

The Vietnam Association of Seafood Exporters and Producers (VASEP) reported that more than 45% of ASEAN's total tra fish imports came from the Thai market, with nearly 83 million USD.

Thailand was followed by Singapore, Malaysia and the Philippines with a rise of 50-93% year on year.

According to VASEP, compared to other regions, the ASEAN has seen a stronger growth with less impact from inflation in 2022.

Experts held that the ASEAN will continue to be an attractive market for Vietnamese tra fish thanks to advantages in close geographical distance, fewer logistics risks, and preferential tariffs under free trade agreements that Vietnam has signed with members of the group.

According to the Ministry of Agriculture and Rural Development, fishery exports reeled in 10.14 billion USD as of November this year, up 27% annually. Of the sum, tra fish and shrimp contributed 2.2 billion USD and 4.1 billion USD, up nearly 62% and 14.6% year-on-year, respectively.

Domestic firms in Dong Nai set new record in export turnover

Domestic private enterprises in the southern province of Dong Nai earned nearly 5.8 billion USD from export activities in 2022, a record so far, according to the provincial Department of Industry and Trade.

The department said that the figure represents an increase of nearly 35% over 2021, showing that products made by domestic companies are becoming more popular in the world.

Major markets of the firms include European countries, the US and Japan, while major exports include garments, coffee, peppercorn, and home appliances.

The department reported that in 2022, Dong Nai’s export revenue reached nearly 24.6 billion USD, while imports were nearly 19 billion USD., resulting in a trade surplus of 5.6 billion USD.

Foreign-invested enterprises still played the core role in the overall export revenue of the province, with contribution of over 18 billion USD.

However, experts held that local private enterprises will rise stronger in following years with higher competitiveness, especially in the areas of agriculture and garment and textile.

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