Deputy Prime Minister Le Minh Khai has just signed Resolution No.163/NQ-CP on promoting the synchronous implementation of key tasks and solutions to enhance competitiveness and boost the logistics industry in the country.

The Government will direct Ministers, heads of ministerial-level agencies, governmental agencies, and Chairmen of People's Committees of provinces and centrally-run cities to focus on the synchronous implementation of solutions to improve the competitiveness and develop Vietnam's logistics services. 

The Government's viewpoint is to develop logistics services into an industry with high added value, linking them with the development of goods production, import-export and domestic trade, the development of transportation infrastructure and information technology. The Government aims to develop the logistics service market, focusing on improving the competitiveness of logistics service enterprises. It would also focus on making the most of the country's geographical advantages and strengthening connectivity to make Vietnam an important logistics hub in the region, and developing logistics in association with sustainable supply chains. Attention will also be paid to improving the quality of human resources, and promoting digital transformation and technology application.

Accordingly, ministers, heads of ministerial-level agencies, Governmental agencies and Chairpersons of People's Committees of provinces and centrally-run cities are required to focus resources on and urgently implement the tasks assigned in Decision No. 221/ QD-TTg. They should proactively handle arising problems according to their competence or report them to competent authorities as prescribed, take full responsibility before the Government and the Prime Minister for ensuring the progress and quality according to the set requirements. 

The Ministries of Industry and Trade, Transport, Finance, and related agencies should closely monitor the international and regional situation and promptly analyze and assess the impacts affecting the country's economy. On that basis, they should proactively build scenarios and response plans, direct and operate logistics activities to well serve production, domestic goods circulation, and import and export activities. 

Ministries, sectors, and localities are responsible for firmly grasping the situation, promptly detecting and immediately handling problems arising in logistics activities that could adversely affect the socio-economic situation within the scope and field of state management.

The Ministry of Transport will take charge of and coordinate with ministries, branches, and localities in implementing transport components in national and regional master plans and provincial plans, so as to ensure the synchronization of transport infrastructure and logistics development goals, including logistics centres, inland depots, and bonded warehouses. 

The resolution also looks to strengthen connectivity among different modes of transport, and maximize multimodal and cross-border transport to reduce costs and improve the quality of transport services. Goods trading floor will be developed in association with e-commerce toward green logistics development.

The Ministry of Finance is required to continue to review and remove obstacles in terms of tax policies, fees and service costs to facilitate the provision of logistics services. The ministry is tasked with coordinating with other ministries and branches in promoting trade facilitation activities, reforming customs procedures, reducing and simplifying specialized inspection procedures, standardizing dossiers, and implementing commitments in the WTO Trade Facilitation Agreement.

Half a billion dollars committed to HCMC’s industrial zones in 2022

HCMC’s export processing and industrial zones attracted new investments totaling nearly US$550 million last year, over 9% higher than expected, according to the HCMC Export Processing Zone and Industrial Park Authority (HEPZA).

New foreign investment approvals amounted to US$196.6 million while domestic investments reached over US$352.4 million, or over VND8.1 trillion.

This positive result came after the city reopened to international travelers in mid-March 2022 and created favorable conditions for investors to visit industrial and processing zone projects in Vietnam, according to Hua Quoc Hung, head of HEPZA.

However, many operational industrial parks have filled the allotted land areas or found it difficult to determine land rents, hindering HCMC’s ability to attract investment.

Therefore, multi-story factories will be developed to solve the problem of limited land funds in the future.

The city will focus on expanding land funds to attract more investment and support enterprises to stabilize their production and protect the environment.

Moreover, HEPZA will help promote investment in high-tech sectors and the digital economy, especially automation in the mechanical industry and artificial intelligence applications in the information technology industry.

Pepper export value hits US$963 million last year

Despite enduring numerous difficulties including global high inflation, weak consumption demand, and China's 'Zero-COVID' policy, Vietnamese pepper exports last year edged up 2.7% to reach US$963 million in value compared to 2021, according to industry insiders.

The average export price of local peppers in 2022 stood at an estimated US$4,257 per tonne, up 18.5% compared to 2021’s figure.

However, Hoang Thi Lien, president of the Vietnam Pepper Association (VPA), said Vietnamese pepper exports will continue to face challenges ahead in 2023 due to an abundance of supply sources, reduced consumption demand occurring globally, and an ongoing energy crisis in the EU.

According to the Import-Export Department, pepper imports by the German, British, and French markets in the short term will remain low and will only bounce back once the energy crisis and inflation-related issues are resolved.

China’s import demand for peppers has yet to make any breakthroughs though it is easing its COVID-19 measures. The purchasing power in this huge market is expected to rebound by the beginning of the second quarter of the year.

Industry insiders therefore recommended that the local pepper industry strive to increase its standardisation capacity in line with international standards with regard to chemical residues and sustainable production criteria.  

Furthermore, the industry is required to promote deep processing and create new products in a bid to enhance its overall competitiveness in the global market, while developing cultivation areas in line with international farming practices in the time ahead.

Most notably, local businesses are advised to make full use of tax incentives under the EU-Vietnam Free Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement(UKVFTA) in order to increase exports to demanding markets in future.

Vietnam’s manufacturing PMI falls in December 2022

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) dropped to 46.4 in December 2022 from 47.4 in November, indicating the continued deterioration of business conditions in manufacturing.

This is the second straight month of contraction in the manufacturing sector and the steepest pace since September 2021, according to S&P Global Market Intelligence that collects the survey results of the PMI.

In the last month of 2022, Vietnam’s manufacturing sector declined more sharply as demand both at home and abroad fell. In such context, companies reduced employment and purchasing activity, while business confidence remained low.

The number of new orders fell sharply in December due to weak demand in Vietnam’s some key export markets including China, the European Union and the United States.

At the same time, employment declined at a marked pace, and one that was the sharpest in 14 months. Meanwhile, suppliers' delivery times lengthened for the second month running, but only marginally.

On the price front, input cost inflation accelerated to the fastest in five months due to higher costs for raw materials, gas, and shipping. Meanwhile, selling prices fell for a second successive month as part of attempts to boost costumer demand. Finally, business sentiment remained muted amid concerns over weak demand conditions.

Some survey team members were concerned that market difficulties would persist into 2023, while some others expressed optimism that demand would recover that could help fuel new orders and output.

Starbucks plans to open 100th store in Vietnam this year

After a decade of establishing a presence in Vietnam, Starbucks, a popular US coffee brand, has recently announced plans to open its 100th store in the country this year.

According to Patricia Marques, CEO of Starbucks Vietnam, the US coffee chain has been enjoying strong development in the country and will hold a ceremony to mark the opening of its 100th local store. She also revealed the company will move forward with plans to open more sites in Vietnam in the future.

Starbucks initially joined the Vietnamese market by opening its first shop in Ho Chi Minh City in February, 2013, through a franchise contract signed between Starbucks and Y Tuong Viet Food and Drink Company, a subsidiary of Maxim’s Group of Hong Kong (China).

Currently, Starbucks has 87 outlets spread across seven cities and provinces nationwide, with 800 staff and more than 200 coffee masters employed by the company.

According to the CEO, Starbucks will strive to boost the localisation of stores as part of its business strategy in Vietnam as a means of turning Starbucks stores into the third destination for local people, behind only their home and their place of work.

Boom in import-export between Vietnam- China

Economic experts said that the reopening of China after two years of implementing strict regulations will definitely create a boom in import and export activities between Vietnam- China.

According to Ms. Le Hang, Communications Director of the Vietnam Association of Seafood Exporters and Producers (VASEP), the number of seafood orders to China will increase sharply after opening due to the removal of regulations for frozen goods in China. Mr. Le Ba Anh from the General Directorate of Fisheries said that China is a market with great demand for Vietnamese seafood.

After China opened the border, seafood products will be more favorable for export, especially fresh seafood such as lobster, white shrimp, and crab because restaurants in China will consume a large amount of fresh seafood, said Mr. Ba Anh.

According to a representative of the General Directorate of Fisheries, China has now recognized 802 Vietnamese seafood export enterprises that are eligible for official export to this country. At the same time, Vietnam also approved 780 Chinese seafood enterprises to enter Vietnam. Since 2004, Vietnam has signed a seafood export cooperation agreement with China.

For fruit products, Mr. Huynh Tan Dat, Deputy Director of the Plant Protection Department under the Ministry of Agriculture and Rural Development, said that the department has directed the units to quarantine and control food safety at the border gate as well as arrange personnel to support enterprises in carrying out export procedures as quickly as possible.

Recently, Vietnam and China have signed a series of protocols on the export of many fruits and agricultural products through official channels such as sweet potatoes, durians, dragon fruit, bananas, and passion fruit.

For key agricultural products, the Plant Protection Department has built a database of growing areas and packing facilities, crops, and productivity to regulate material areas with the aim to avoid congestion at border gates.

Statistics show that in the first half of 2022, Vietnam's fruit and vegetable exports to China only reached US$1.4 billion, down 21.7 percent compared to the same period in 2021. But in the last months of the year, when the strict control measures at border gates were gradually loosened, fruit and vegetable exports to China increased by more than 40 percent over the same period last year, bringing the total export turnover of Vietnam's vegetables and fruits in 2022 to nearly $3.4 billion.

A representative of the Plant Protection Department predicted that fruit and vegetable exports to China will boom again in 2023.

First batch of Cao Phong orange shipped to UK

The People’s Committee of Cao Phong district in the northern province of Hoa Binh, the provincial Department of Agriculture and Rural Development, RYB Joint Stock Company and Cao Phong One Member Ltd, Co., on January 5 held a ceremony to mark the first shipment of seven tonnes of Cao Phong orange to the UK.

Cao Phong district now has 1,744 ha of citrus trees, including 1,358 ha of orange and tangerine with a yearly output of over 20,000 tonnes.

The district has seven products, including fresh orange and processed orange, recognised as 3-and-4-star OCOP (One Commune One Product) products.

More than 3.3 million motorbikes manufactured in Vietnam in 2022

Vietnamese domestic motorcycle production is estimated at more than 3.32 million units in 2022, with a year-on-year growth of 9.9%.

Data released by the General Statistics Office recently showed that the number of motorcycles manufactured in Vietnam was estimated at 351,100 units in December, a slight decrease of 0.8% compared to November but an increase of 4.4% year-on-year.

The number of newly-produced motorcycles in the fourth quarter was estimated at 1,024 million units, a sharp growth of 33.3% compared to the third quarter and 19.8% over the same period last year.

Vietnam Association of Motorcycle Manufacturers (VAMM) reported that the total sales of its member units reached 762,152 vehicles in the third quarter, up 16.3% compared to the previous quarter.

In the report, VAMM also noted that the above-mentioned cumulative sales only recorded the total sales of five VAMM members in the Vietnamese market, which are not the production number and do not include the export volume.

RoK – Vietnam’s largest foreign tourist source

Vietnam saw 3.66 million foreign tourist arrivals last year, and those from the Republic of Korea (RoK) accounted for the largest proportion with over 965,000, or 26.4%.

In December alone, the RoK was also among Vietnam’s tourist markets reporting impressive growth with 39.7%, along with Singapore, Malaysia and Thailand.

The results are attributed to Vietnam’s efforts to organise a wide range of promotion activities and events in the East Asian nation, right after Vietnam fully reopened its door in March 2022, including the Vietnam Culture-Tourism Festivals in Seoul and Gwangju cities.

Last month, the Vietnam National Administration of Tourism (VNAT) and the Korea Tourism Organisation signed a Memorandum of Understanding on promoting tourism cooperation between the two countries.

For this year, the Vietnamese tourism sector has set targets of serving 110 million tourists, including around 8 million foreigners, and earning 650 trillion VND (27.69 billion USD).

New FDI approvals in Binh Duong put at over US$3 billion

The southern province of Binh Duong attracted US$3.13 billion in new foreign direct investments (FDI) in 2022, particularly in the processing and manufacturing industry, according to the provincial Planning and Investment Department.

Binh Duong approved some 70 new projects worth a total of US$1.9 billion of foreign investors last year. The total amount poured into 23 operational FDI projects in the province was roughly US$59.4 million.

Some US$1.1 billion came from mergers and acquisitions deals.

New foreign capital was injected primarily into the processing and manufacturing sector, with an investment of US$1.98 billion, or 63.3% of the total pledge.

The real estate sector came in second with 35.8% of total capital, followed by wholesale and retail, automobile repair and service, and logistics.

Danish toy maker LEGO’s US$1.3 billion project in Binh Duong was its sixth in the world and its second in Asia.

In terms of FDI projects, the province came in second in the country, just behind HCMC, with total pledged capital of US$39.7 billion, or 9% of the nation’s total.

Vietnam has huge trade deficit with South Korea

Vietnam had a trade deficit of US$34.26 billion with South Korea last year, the highest trade deficit with a foreign trade partner in the year.

In 2022, Vietnam exported around US$26.72 billion worth of goods to South Korea and spent nearly US$61 billion on imports from South Korea, according to the South Korean Ministry of Trade, Industry and Energy (MOTIE).

A MOTIE official said Vietnam has emerged as a manufacturing powerhouse of multinational companies among the ASEAN nations.

South Korea is the third largest trade partner of Vietnam, after the U.S. and China, according to data from the Vietnamese Ministry of Industry and Trade in early December 2022.

Between January and October, Vietnam’s major exports to South Korea were phones and phone parts, textiles and garments, and computer and electrical components. Each generated over US$1 billion in the country’s export revenue.

Conversely, there were 10 groups of items that Vietnam purchased from South Korea costing more than US$1 billion each, including computers, cameras and petroleum products.

Major coconut processing factory opened in Ben Tre

The Ben Tre Coconut Investment Joint Stock Company (Beinco) has launched a coconut processing factory with a total investment of VND480 billion in the Mekong Delta province of Ben Tre.

The facility took five years to construct with two workshops and eight production lines, covering three hectares and creating employment for 400 locals.

BEINCO offers many coconut-related items, including desiccated coconut, coconut milk and cream, virgin coconut oil and other organic coconut products.

Beinco’s products have been shipped to 43 foreign markets. On the home market, the firm has distribution facilities across the country.

Over 1,300 social homes to be put up for sale in Danang

The Danang Department of Construction has announced that it will put up for sale more than 1,300 social homes of two social housing projects not funded by the State budget.

The social apartment building in Hoa Khanh Bac Ward in Lien Chieu District will have 13 units on sale, while two social apartment buildings at the Bau Tram Lakeside green urban area in Hoa Hiep Nam Ward will offer 1,376 units for sale.

The department asked the relevant agencies and units to publicize information about the sale to households and locals. Workers at industrial parks, poor people and low-income earners will be prioritized for getting one, the local media reported.

Kien Giang set to woo VND4.3t of investment in six projects

The Mekong Delta province of Kien Giang looks to attract investment in six projects worth some VND4.3 trillion this year, according to the provincial Department of Planning and Investment.

The province also targets the disbursement of roughly VND24 trillion to carry out projects this year, the Vietnam News Agency reported.

Chairman of the provincial People’s Committee Lam Minh Thanh said the province will make efforts to complete its zoning plan for the 2021-2030 period, with a vision toward 2050, to submit it to the Government for approval.

The province also reviewed and updated its investment portfolio in the 2021-2025 period to call for investment and grant investment certificates to new projects. In addition, it introduced investment incentives to woo more investors and take measures to remove obstacles facing projects, the chairman added.

Local authorities accelerated efforts to review projects funded by private capital and urged investors to start work on projects with completed investment procedures.

Tolls adjusted up on four expressways as VAT back to 10%

Tolls on four expressways in the country have increased slightly since January 1, 2023, as the value-added tax (VAT) was adjusted up from 8% to 10%, according to the Vietnam Expressway Corporation (VEC).

The four expressways are Noi Bai-Lao Cao, Cau Gie-Ninh Binh, Danang-Quang Ngai and HCMC-Long Thanh-Dau Giay.

The fee for passenger vehicles on the entire route of the Phap Van-Ninh Binh Expressway increases from VND103,000 to VND110,000.

Passenger vehicles are charged VND102,000 on the HCMC-Long Thanh-Dau Giay Expressway, instead of VND98,000 before January 1.

The Government cut the value-added tax on expressway services from 10% to 8% from February 1 to December 31, 2022, in accordance with the National Assembly’s resolution intended to support businesses and households in the post-pandemic economic recovery effort.

SeABank has new CEO

Southeast Asia Commercial Joint Stock Bank, or SeABank, whose shares are traded on the HCMC Stock Exchange under the code SSB, has named Loic Faussier, a French national, as CEO of the bank.

He began his two-year tenure on January 3, the local media reported.

Loic has 25 years’ experience in working for major banks and financial institutions in France, Hong Kong and Japan.

In Vietnam, he used to serve as deputy general director at VIB. Before being picked as CEO at SeABank, Loic had worked as deputy general director for the bank’s business operations since July 2022.

Loic is holding 200,000 SSB shares worth VND6.6 billion.

Between January and September last year, SeABank obtained over VND4 trillion in pre-tax profit, up 58.7% year-on-year.

Sa Dec reports high flower sales revenue in 2022

Dong Thap Province’s Sa Dec City reported total revenue of VND3,350 billion from flower and ornamental plant sales in 2022.

Vo Thi Binh, vice chairman of Sa Dec City, said the city now has over 2,300 households growing flowers on a total area of 946.5 hectares, mainly in Tan Quy Dong and An Hoa Wards and Tan Khanh Dong and Tan Quy Tay villages.

The province had 100 hectares under Tet flower farming, a 50% increase over last year. Daisies (asteraceae) such as chrysanthemum morifolium and yellow daisies (chrysanthemum indicum), kumquat plants and marigolds made up the majority.

Sa Dec’s flowers and ornamental plants were sold to most cities and provinces nationwide.

Dong Thap has recently established a flower and ornamental plant trading center which functions as a facility for transiting, trading and exporting flowers.

HCMC to strictly cope with low-quality roadworks

The HCMC Department of Transport said that it would get tough on sloppy roadworks in the city this year.

Asphalt patches on multiple streets in HCMC make the road surfaces uneven after roadworks, damaging the urban beauty and putting road users in danger.

To prevent the situation from continuing, construction firms that are negligent in carrying out road repair work would have their construction permits revoked, said Tran Quang Lam, director of the department.

In December, the department revoked the construction permit of the anti-flood project on Vo Van Ngan Street in Thu Duc City for two months due to its failure to meet construction standards.

“The department will issue a violation record to poorly constructed sites. The developers will have their licenses revoked if they fail to fix the low-quality roadworks within the time limit,” Lam said.

Occupancy on domestic flights reaches 90% before Tet

Many domestic air routes have seen a surge in occupancy to over 90% right before the Lunar New Year 2023, so passengers need to quickly book air tickets to get reasonable prices.

Statistics from the Civil Aviation Authority of Vietnam showed that domestic routes from the Tan Son Nhat International Airport to the central and northern regions would handle a large number of passengers from January 14 to 19, 2023, just a week before the Lunar New Year holiday that starts on January 22.

The seat occupancy rates are 66-79% on HCMC-Danang, 66-90% on HCMC-Haiphong, 61-91% on HCMC-Hue, 87-93% on HCMC-Thanh Hoa, 91-92% on HCMC-Binh Dinh, 65-94% on HCMC-Chu Lai, 81-89% on HCMC-Dong Hoi, and 81-92% on the HCMC-Vinh route.

The routes from other regions to HCMC also see high seat occupancy after the Lunar New Year, from January 26 to 30, 2023, such as Danang-HCMC (71-86%), Hanoi-HCMC (48-87%), Haiphong-HCMC (84-92%), Hue-HCMC (75-91%), Thanh Hoa-HCMC (81-92%), Binh Dinh-HCMC (91-92%), Chu Lai-HCMC (63-70%), Dong Hoi-HCMC (55-89%) and Vinh-HCMC (69-90%).

After the Civil Aviation Authority of Vietnam confirmed more airport slots at the Tan Son Nhat International Airport in the daytime and nighttime frames, Vietnamese carriers have significantly increased seats on routes from HCMC to other regions before and after the Lunar New Year.

Binh Phuoc scraps 6,317-hectare Dong Phu project

The government of Binh Phuoc Province decided yesterday, January 3, to scrap the Dong Phu Industrial and Residential Park project with an area of 6,317 hectares, according to the local media.

The local authority requested relevant departments and agencies to stop their project planning and revoke official documents and decisions related to the implementation of the Dong Phu Industrial Park.

The Management Board of Economic Zones has been assigned to work with Becamex Binh Phuoc Infrastructure Development JSC and Hoang An Urban Planning and Infrastructure System Consultant JSC to conclude the contract for the general project planning.

As per the decision, Tran Tue Hien, chairman of the Binh Phuoc People’s Committee, approved implementing the general planning of industrial parks with a scale of 4,200 hectares, as well as requested adjustments on the resettlement and traffic infrastructure plans.

In December 2019, the Binh Phuoc People’s Committee and Becamex IDC Corporation signed a deal to plan the Dong Phu Industrial and Residental Park project with a scale of 6,317 hectares.

This industrial and residential area was expected to create jobs for thousands of workers and promote industrial development in Binh Phuoc. However, this project was officially removed from the provincial general planning after three years.

Binh Phuoc is currently home to 13 industrial zones covering a combined 4,686 hectares and nine industrial clusters with a total area of over 453 hectares.

US$1.35 billion spent on meat imports

Vietnam spent around US$1.35 billion importing 615,000 tons of meat and meat products in January-November of 2022, up 4.8% in value year-on-year, according to the Agency of Foreign Trade under the Ministry of Industry and Trade.

There were 55 meat suppliers for Vietnam, with the U.S., India, Brazil, South Korea and Russia being the biggest.

India ranked first in supplying meat and poultry products for Vietnam in 2022, with over 141,000 tons worth US$455 million, up 48.4% in volume and 48.7% in value year-on-year.

However, pork imports continuously decreased due to low domestic demand.

Around US$214.85 million was spent importing around 100,520 tons of pork in the first 11 months of 2022, down 32.4% in volume and 37.4% in value over the same period in 2021.

The country imported pork from 31 foreign markets. Brazil, Russia, Germany, Canada, and the Netherlands were the five largest markets supplying pork to Vietnam. Pork imports from these markets all plunged compared to the same period in 2021, except for Brazil.

During the January-November period, Brazil was the largest pork supplier to Vietnam, with over 37,610 tons, worth US$82.57 million, up 26% in volume and 15.7% in value year-on-year.

Measures to help businesses overcome challenges in 2023
     
The HCM City Union of Business Associations has a number of measures in place to help the business community overcome challenges this year.

Nguyen Ngoc Hoa, its chairman, told a meeting held on Friday (January 6) to review last year’s performance that it would also work with the city administration to improve the investment environment, promote economic development and ensure social security.

This year HUBA would focus on organising programmes such as the 2023 HCM City Economic Forum for voting for the city’s ‘Typical Products and Services’ and the Green Business Awards.

It would also continue with its regular activities such as ‘Business Cafe’, trade promotions in both the domestic and overseas markets, trade fairs to showcase Vietnamese goods, and attracting membership and increase their connectivity.

Due to the uncertain global social-economic situation, businesses were expected to face difficulties this year, and HUBA would continue to work with the city to advocate sound policies and act as a bridge between the administration and businesses to resolve difficulties faced by the latter.

It also planned to co-ordinate with partners to organise training in digital transformation and others for its members and help them expand trade with other countries.

It wanted the State Bank of Vietnam to continue rescheduling of medium- and long-term loans, and bring down bank loan interest rates to support businesses.

The Government needed to keep the VAT rate at 8 per cent for all sectors, not just a few as at present, until the end of 2024, and ensure tax refunds to businesses in a timely manner.

It needed to roll out policies to promote the development of the bond and real estate markets, and speed up public spending to enable enterprises to maintain operations and create jobs.

Nguyen Phuoc Hung, the association’s deputy chairman, said last year HUBA took many measures post-pandemic to help business revival and co-operation, and acted as a bridge in connecting the Government and businesses.

Bui Ta Hoang Vu, director of the city Department of Industry and Trade, appreciated HUBA’s contributions to the business community and completion of all the tasks assigned by the city.

Considering the challenges this year, it is again expected to make a significant contribution to the economy and businesses, he added. 

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