Many provinces and cities as well as the central region of Vietnam have recently emerged as an attractive destination for foreign investors, according to experts.

Doan Duy Hung, General Director of the Vietnam Industrial Real Estate Portal, said that besides the prominent northern localities in attracting foreign direct investment (FDI) such as Bac Ninh, Bac Giang and Thai Nguyen provinces, the Red River Delta province of Thai Binh has become a bright spot in terms of FDI attraction.

He attributed the success to the fact that there has been a strong improvement in Thai Binh's investment environment and the province locates near Lach Huyen deep water seaport cluster in Hai Phong city. The construction of a coastal highway connecting Hai Phong and Thai Binh is also a reason.

Other experts also believed that there is a shift of FDI investment from two major centres around Hanoi and Ho Chi Minh City to the central region due to the advantage of having many deep water ports and cheap rental prices which even only equal to one-third of that of the two cities, Tuoi Tre (Youth) newspaper reported.

According to Nguyen Van Toan, Vice Chairman of the Vietnam Association of Foreign Invested Enterprises, there will be a reallocation of the industry in the near future.

Once the investment environment is improved and infrastructure is upgraded, it is expected to fuel FDI attraction into the central region, he said.

Toan noted that there was a movement of labour from major economic centres such as HCM City, Binh Duong and Dong Nai provinces to central provinces during the COVID-19 pandemic. The fact that many workers have not returned has resulted in a shift in the FDI trend to limit the risks of labour shortages, he said.

Vietjet resumes 10 air routes from/to Can Tho city

President Nguyen Xuan Phuc attended a ceremony marking the resumption of 10 air routes of Vietjet from/to the Mekong Delta city of Can Tho on April 6.

Vietjet currently operates the most routes and flights to and from Can Tho, which is the capital of the southwestern region and also a gateway to the Mekong Delta.

During previous peak periods, it used to operate five flights per day linking various domestic and international destinations with this city.

To keep up with the expected tourism recovery this summer, Vietjet has reopened routes connecting Can Tho with Nha Trang, Da Lat, Vinh, Thanh Hoa, Hai Phong, Da Nang and Hanoi, along with Taipei (Taiwan, China), Seoul (the Republic of Korea), and Bangkok (Thailand).

Ministry seeks GWEC’s support for realisation of 2050 net zero target

The Ministry of Industry and Trade has asked for assistance from the Global Wind Energy Council (GWEC) to help Vietnam realise its net zero emissions target by 2050, especially regarding offshore wind power development, said Minister Nguyen Hong Dien at a working session with Mark Hutchinson, chair of GWEC’s Southeast Asia Task Force.

Lauding Vietnam’s efforts and commitments at COP26, Hutchinson affirmed that the GWEC is willing to cooperate with the ministry to organise renewable energy seminars, and share experience regarding the sustainable operation, management and development of renewable energy.

The GEWC will provide supply chain support as well as human resources training for Vietnam's offshore wind power industry, he noted.

Its working group will explore what Vietnam needs to do to attract domestic and foreign preferential financing and work with financial institutions and banks to remove the country’s problems with capital sources for offshore wind power development, said Hutchinson.

Vietnam’s renewable energy sources have reached about 20.7 GW, accounting for more than 27 percent of its total power capacity. In 2021, electricity output from renewable energy sources hit 30 billion kWh.

Long Thanh Airport must be opened by 2025: Deputy PM

Deputy Prime Minister Le Van Thanh has emphasised the target of opening Long Thanh International Airport in the southern province of Dong Nai by 2025, with quality given the top priority.

He asked the Airports Corporation of Vietnam (ACV), the project management board, and contractors to maintain three work shifts per day to accelerate the progress of construction.

Dong Nai province also needs to speed up site clearance to hand over the entire 1,810ha for the first phase and 722ha of land reserves before April 30, and the whole 5,000ha for the project by June this year.

Deputy Minister of Transport Le Anh Tuan said Dong Nai has handed over 1,589ha out of the 1,810ha of land for Phase 1 and 466.79ha of the 722ha land reserves.

Chairman of the provincial People’s Committee Cao Tien Dung pledged to complete all site clearance by June 2022.

Ways sought to reduce import-export costs

A seminar was held by Customs E-Magazine in Ho Chi Minh City on April 6 to discuss synchronous solutions to cut input and commercialisation costs, thus reducing import-export spending.

Vu Thi Anh Hong, Editor-in-Chief of Customs E-Magazine, said Vietnam currently has trade partnerships with over 200 countries and territories. Seventeen free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam FTA, have created opportunities to boost the nation’s import-export activities.

The COVID-19 pandemic, Russia-Ukraine tensions and oil price surges have caused a rise in transportation and logistics costs, leading to an increase in spending for import and export activities.

Increased costs have also reduced the competitiveness of Vietnamese goods.

To cut costs for businesses, Chairman of Imex Pan Pacific Group (IPPG) Johnathan Hanh Nguyen proposed simplifying customs procedures, and developing e-data sharing systems between enterprises, customs offices and relevant agencies.

A representative from the General Department of Vietnam Customs said the agency will continue stepping up administrative reform to reduce customs clearance times and redesign the sector’s IT system towards the development of e-customs and smart customs.

Vietnam looks to set up blue economy partnership group

The Ministry of Natural Resources and Environment has assigned the Vietnam Administration of Seas and Islands (VASI) to work on building a blue sea economy partnership group to carry out a sustainable development strategy for Vietnam’s maritime economy to 2030, with a vision to 2045.

VASI Deputy Director General Pham Thu Hang said the blue sea economy has developed rapidly in recent years, but there is a threat to the sustainability of marine ecosystems without effective management and cooperation between partners.

She underlined the need to further promote cooperation between parties in order to improve the efficiency of management in blue sea economy development in Vietnam.

The Vietnamese government and relevant partners have supported the establishment of a partnership in the form of an open and flexible framework, without legally commitments.

Binh Son refinery company reports 8-percent increase in after-tax profit in Q1

The Binh Son Refining and Petrochemical JSC (BSR) posted over 2 trillion VND (over 87.44 million USD) in after-tax profit in the first quarter of 2022, up 8 percent year-on-year, surpassing the yearly target by 45 percent.

According to the document of the firm’s annual shareholders' meeting in 2022, BSR sold nearly 1.6 million tonnes of products in Q1, equal to 25 percent of the target set for the year.

Total revenue hit over 35.47 trillion VND in the period, representing a surge of 69 percent compared to the same period last year.

It aims for 91.4 trillion VND in consolidated revenue and over 1.4 trillion VND in after-tax profit this year, down 10 percent and 79.3 percent year-on-year, respectively.

Retail sales of goods, services pick up 4.4 percent in Q1

Vietnam’s total revenue from retail sales of goods and services reached 1.3 quadrillion (56.9 billion USD) in the first three months of this year, a year-on-year increase of 4.4 percent, according to the General Statistical Office (GSO).

Trade and service activities are gradually recovering with the total retail sales of consumer goods and services in the first quarter of 2022 higher than the same period in previous years, it said.

Retail sales of goods in the period increased by 5.8 percent over last year’s figure. Of which, group of food and foodstuffs was up 11 percent, cultural and educational items increased by 10.1 percent, means of transport rose by 5.4 percent while clothing was down by 3.6 percent; household appliances and equipment decreased by 4.9 percent.

Turnover from tourism services slightly picked up 1.9 percent in the first quarter of this year as Vietnam has reopened to international tourists.

VND86.21 million proposed for Na San airport upgrade 

The northern province of Son La is seeking approval from the government and the Ministry of Transport for a VND2 trillion (USD86.21 million) upgrade to Na San Airport.

VND300 billion will be for site clearance and resettlement, while the remainder will be for construction which will be implemented through a public-private partnership. 

A representative from Son La authorities said that some investors had expressed their interest in the project.

Na San Airport is located 187 kilometres from Noi Bai International Airport in Hanoi and 110 kilometres from Dien Bien Airport. The airport was closed in 2004 for upgrading. The airport is expected to have a capacity of serving 1.5 million passengers by 2030.

The upgraded airport will be capable of serving A320 and A321 type aircraft by 2030. 

Vietnam and New Zealand to build resilience in agriculture economies

At the second New Zealand - Viet Nam Agricultural Dialogue, Le Quoc Doanh, deputy minister of the Ministry of Agriculture and Rural Development (MARD) and Chief Executive of the New Zealand Ministry for Primary Industries, Ray Smith affirmed that in order to realise the goal of achieving two-way trade turnover of US$2 billion by 2024, increasing bilateral agricultural cooperation and connections between the two countries was key.

After the official export of fresh mango in 2011, dragon fruit in 2014 and rambutan in 2018, Doanh said the country was completing procedures to export fresh lemons and pomelos to New Zealand and oranges, tangerines and longan after that.

Doanh asked his counterpart to create more favourable conditions for Vietnamese agricultural and aquatic products to enter the New Zealand market, speeding up the market opening for agricultural, forestry and fishery products by both online and offline manner.

The Vietnamese official said Viet Nam also wanted to enhance the promotion of in-depth cooperation in the agricultural sector under the model of combining New Zealand's technology and market development experience to improve the quality of the country's products.

He asked New Zealand to keep supporting Viet Nam in branding and developing the market for dragon fruit according to the model applied to New Zealand's kiwi fruit as well as to support the construction and development of a safe food supply chain model with traceability and building capacity for food safety inspection and certification in the country.

According to data, two-way merchandise trade between New Zealand and Viet Nam in 2021 topped $1.56 billion, an increase of 14 per cent, and by December 2021, Viet Nam was New Zealand’s 15th largest trading partner. Viet Nam remains a promising market for New Zealand and vice versa due to robust demand for key agricultural products. 

3 firms get right to use Ca Mau geographical indication for black tiger shrimp

The southernmost province of Ca Mau has granted the right to use the Ca Mau geographical indication for black tiger shrimp to three local exporters.

In September last year Ca Mau was granted the geographical indication (GI) by the National Office of Intellectual Property, and its Department of Science and Technology, which is in charge of managing the GI for black tiger shrimp, has issued regulations defining the responsibilities and rights of organisations and individuals using it.

They cover procedures and guidance to ensure the origin, quality and reputation of the product, breeding and processing, shrimp seed origin, and geographical breeding areas.

The province has more than 300,000ha of aquaculture farms, including 280,000ha raising shrimp, according to its Department of Agriculture and Rural Development.

This accounts for 45 per cent of the delta’s total shrimp farming area and 40 per cent of the country’s.

Around 19,000ha of farms have received international quality certificates like global good agricultural practices, Global Aquaculture Stewardship Council, Best Aquaculture Practices, and Vietnamese good agricultural practices.

 Ministry to continue tightening bond market after Tan Hoang Minh scandal

After the cancellation of nine bond issuances of Tan Hoang Minh Group, the Ministry of Finance (MoF) is drafting, amending and supplementing Decree 153 on offering and trading corporate bonds, which proposes stricter condition for bond issuers, especially in private placement.

According to current regulations, enterprises mobilise capital through private offerings following the principle of self-borrowing, self-paying, self-responsibility, while State management agencies do not issue issuance permits.

However, MoF said that there are still small-scale enterprises that mobilise capital in large volumes, with high interest rates and without collateral or with poor quality of collateral.

The ministry said that it has assigned the Department of Banking and Financial Institutions to draft documents and report to the Ministry of Justice for assessment of the draft amendment and supplement to the Decree 153 on offering and trading corporate bonds.

SSI gets $148m Taiwanese unsecured loan

SSI Securities Corporation has signed an agreement for a fresh loan worth US$148 million with a consortium of foreign financial institutions led by Union Bank of Taiwan and Taishin International Bank.

The loan, the largest unsecured foreign loan obtained by a securities company in Viet Nam, has a tenor of no more than 12 months with the reference interest rate being the secured overnight financing rate. It was disbursed at the end of last month.

The money will be used to supplement working capital and fund business activities, enhance the competitiveness of SSI’s securities and retail services, and provide customers with financial services at competitive costs.

French cosmetics retailer Sephora enters Vietnam  

A few days ago, French retailer of personal care and beauty products, Sephora, has launched an e-commerce shop for the Vietnamese market after a five-month trial period.

Customers in Vietnam may now purchase items directly from the merchant and take advantage of the company's policy of cross-border deliveries to Vietnam, which was previously unavailable.

There would be no need for a middleman as the order will be delivered directly from the Singaporean warehouse to the recipient's address.

According to Statista's analysis, the personal care and beauty products market in Vietnam roughly generated revenues of $2.3 billion in 2021 and will increase at a compound annual growth rate of 5.9 per cent through 2025. The market is slated to reach $2.45 billion this year.

Statista estimated that Vietnam is one of Southeast Asia's fastest-growing nations in terms of its middle-class population. As people's incomes rise, the demand for a wide range of consumer goods, particularly cosmetics and personal care products, is expected to rise as a consequence.

Hanoi attracts US$575 million in foreign investment in Q1 

Hanoi City attracted some US$575 million in foreign investment between January and March, said Do Anh Tuan, director of the municipal Department of Planning and Investment.

Tuan told a press briefing on the city’s socioeconomic performance in the first quarter of the year on April 6 that of the amount, newly registered capital and that from operational projects amounted to US$209.3 million.

New investments through capital contributions to companies in the country and stake acquisitions reached US$365.4 million.

The city saw 6,250 new firms enter the market, with total pledged capital of VND95 trillion, while as many as 4,500 enterprises resumed their operations from January to March.

The city’s budget revenue in the first quarter amounted to over VND102.4 trillion, up 19.6% year-on-year, Tuan said, adding that its budget spending totaled some VND14.8 trillion, up 17.6% year-on-year.

Hanoi City’s gross regional domestic product (GRDP) increased 5.83% in the first quarter.

The city also targets its GRDP growth at 7%-7.5% in April and the second quarter of 2022 and expects to control inflation under 4%.

HCMC taxman begins calculating fines for two Thu Thiem land auction winners 

The HCMC Tax Department has started calculating fines for Dream Republic Corporation and Sheen Mega JSC, which are among the four businesses that won land auctions in the Thu Thiem New Urban Area in HCMC’s Thu Duc City, as they have yet to pay the land use fees even though the payment deadline of April 6 has passed. 

A leader of the department said that representatives of the two companies, at a meeting with the department last month, said they were trying to mobilize funds for the payment and promised to pay the fees at the earliest, the local media reported. 

Under the contracts between them and the HCMC government, the contracts will be deemed as canceled if enterprises fail to make payments after 180 days of the fee announcement.  

Under the regulations, they must pay the registration fee and half the land-use cost no more than 30 days from the department’s announcement. The remaining land use fee must be made within 90 days of the announcement. 

The deadline for the first payment is February 7 and the second payment is April 6. 

From today, they must be subject to the fines, which are 0.03% daily of the fees, for their late payments. 

After 180 days of the fee announcement, if the two enterprises fail to make payments, the HCMC Land Fund Development Center will propose the municipal Department of Natural Resources and Environment cancel the auction results. The deposits of the two enterprises will be seized and submitted to the State budget and the land lots will be put up for auction again or handed over to other units in line with the law. 

Dream Republic Corporation, which won the auction for the 6,400-square-meter land lot coded 3-5, must pay a land-use fee of VND3.82 trillion and a registration fee of VND500 million for this lot. 

Meanwhile, Sheen Mega JSC, which won the auction for the 8,600-square-meter land lot coded 3-8, is subject to a land-use fee of VND4 trillion, but exempt from the registration fee. 

Viet Star Real Estate Investment Co., Ltd, a subsidiary of Tan Hoang Minh Group, and Binh Minh Trading and Development Investment Co., Ltd., which won the auctions of the land lots coded 3-9 and 3-12, have cancelled their purchase contracts and lost the deposits amounting to hundreds of billions of Vietnam dong. 

WB loan sought for three road upgrade projects in Mekong Delta 

The Ministry of Transport has proposed taking out a loan of over VND5.777 trillion (US$253 million) from the World Bank (WB) to upgrade the three national highways of 53, 62, and 91B in the Mekong Delta.

The Transport Ministry sent the proposal to the ministries of Finance and Planning-Investment.

According to the Transport Ministry, the road upgrades require over VND7.158 trillion, equivalent to over US$309 million. National Highway 53 needs some VND1.811 trillion in investment, National Highway 62 needs over VND2.19 trillion, and National Highway 91B requires over VND3.155 trillion.

The ministry suggested over VND5.777 be sourced from the WB loan, while the remaining VND1.381 trillion be backed by the country’s reciprocal capital.

The projects will be executed four years after the loan agreement is expected to take effect in the 2023-2026 period.

Consultants, agents of Tan Hoang Minh’s bond issues face scrutiny 

The Ministry of Finance has told the State Securities Commission of Vietnam (SSC) to inspect consulting firms and agents issuing corporate bonds of three affiliates of Tan Hoang Minh Group.

In case violations are detected, the ministry will deal with violators in line with the law, the local media reported.

Relating to the arrests of Do Anh Dung, chairman and CEO of Tan Hoang Minh Group, and six senior executives of Tan Hoang Minh-affiliated companies on alleged fraud charges, the ministry also told SSC to provide related documents to the law enforcement.

An SSC leader said the commission had coordinated with the Hanoi Stock Exchange and other relevant agencies to inspect and supervise corporate bond sales of Tan Hoang Minh’s affiliates.

SSC had earlier canceled nine bond issues worth VND10.5 trillion by three subsidiaries of Tan Hoang Minh Group, namely Viet Star Real Estate Investment Co. Ltd., Soleil Investment and Hotel Services JSC, and Winter Palace JSC. Misinformation and failures to disclose information about the bond sales were cited as the reasons for the cancellation.

These three unlisted companies did not report their bond issues to SSC. They had just posted the information about the nine issues on the corporate bond portal of the Hanoi Stock Exchange.

Meanwhile, the Ministry of Finance said it would impose heavy sanctions on those manipulating the stock market.

To ensure the bond market becomes an important and effective capital raising channel and minimize risks for investors, the ministry has repeatedly directed the relevant agencies to enhance the inspection into and supervision of the bond issues of enterprises, especially those issuing bonds with larger value than their capital or without mortgages, and report the results to the Ministry of Finance.

TTC Land chairwoman tenders resignation 

Nguyen Thuy Van, chairwoman of Sai Gon Thuong Tin Real Estate JSC (TTC Land), which is listed on the Hochiminh Stock Exchange with the stock code SCR, will quit as board chairwoman of the company for personal reasons.

TTC Land plans to relieve Van from her post at the company’s general meeting scheduled for April 25.

TTC Land has released documents for the upcoming shareholders meeting, with some information about leadership changes, reported Dau tu Chung khoan newspaper.

According to the documents, board chairwoman Van on April 4 tendered her resignation letter, stating that she wanted to quit as board member at TTC Land and no longer take part in the board’s operations from April 26 for personal reasons.

Van took up the post of board chairwoman at TTC Land on June 29, 2020, replacing Nguyen Dang Thanh. Van has over 10 years’ experience in accounting, finance, and investment in fields such as manufacturing, securities and logistics.

Van also held multiple senior positions at Thanh Thanh Cong Group (TTC Group), which owns TTC Land.

Son La proposes VND2-trillion airport project

The northern upland province of Son La Province has proposed developing an airport project with a total estimated investment of some VND2 trillion (US$87.6 million).

The provincial chairman has sent the proposal to the Government and the Ministry of Transport for consideration and approval, the local media reported.

Of the total investment, some VND300 billion (US$13,150) coming from the provincial budget will be used for site clearance and resettlement, while the remaining VND1.7 trillion is expected to be backed by private sources.

Under the country’s zoning plan for air transport development, Na San would be able to handle 1.5 million passengers by 2030. The airport can receive A320s, A321s and equivalents.

Firms propose seaport fee collection be suspended in HCMC

Associations and firms have proposed suspending the collection of fees for using infrastructure facilities and public services at seaports in HCMC to facilitate their recovery and stimulate the economy.

The Private Economic Development Research Board on April 4 wrote to Prime Minister Pham Minh Chinh, pinpointing some impacts of the seaport fee collection on many firms’ operations.

With huge volumes of exports and imports passing through the city’s seaports, the fee collection starting from April 1 has piled pressure on exporters and importers amid the rising costs of logistics services, according to the board.

The city’s decision to collect seaport fees might reduce investors’ confidence in the investment and business climate and cause a spike in production costs, reducing the competitiveness of products and lengthening firms’ recovery time.

Many firms keen on North-South Expressway project 

Many local companies want to get involved in the development of several sections of the North-South Expressway project in the 2021-2025 period.

They include Trung Nam Construction and Engineering Corporation, Truong Thinh Group JSC, Phuong Thanh Tranconsin and Deo Ca Group.

Trung Nam Construction and Engineering Corporation has proposed developing packages worth VND20 trillion with a total length of some 100 kilometersed.

Truong Thinh Group JSC is seeking to get involved in the 67.8-kilometer Van Ninh-Cam Lo section in the central provinces of Quang Binh and Quang Tri. The company has even committed to completing the section six months earlier than planned.

According to a leader of the Planning and Investment Department under the Ministry of Transport, many other firms, including Him Lam, Hoa Binh, Son Hai, Ligico 16 and Hung Thinh, want to be independent contractors of the expressway project or join consortiums of contractors.

They have pledged to mobilize capital and equipment and ensure the quality of the expressway. Some have even promised to get their job done three to six months earlier than planned, thus saving at least 5% of the estimated costs in the packages.

The Ministry of Transport has yet to set out criteria to choose contractors for the North-South Expressway project.

China’s Huali to build two footwear plants in central Vietnam 

Huali Group, China’s major sports footwear manufacturer, has rented land at two industrial parks in Nghe An Province to develop two plants with a total investment of US$113 million.

One of the two footwear production plants will be built on over 14 hectares of land in the Hoang Mai industrial park, with a total cost of US$75 million. Work on the plant will start in June. Once in place in March 2023, the plant is expected to turn out 25 million products each year and create jobs for some 16,000 workers in the province.

The other one will cover over seven hectares of land in the WHA 1 industrial zone and cost US$38 million. In August, the facility will get off the ground and be put into operation in June 2023. The plant will annually produce 13 million items and provide jobs to some 8,000 laborers. 

HCMC proposes to spend US$1 bln to build Ring Road No. 3

At the fifth session of Ho Chi Minh City People's Council for the tenth tenure this morning, the People’s Committee of Ho Chi Minh City submitted the policy for investment and implementation of the Ho Chi Minh City's Ring Road No. 3 project, ensuring the capital balance allocated by the city budget to carry out the HCMC’s Ring Road Belt No.2 project to the Municipal the People's Council. 

Additionally, the People's Committee of Ho Chi Minh City also submitted on converting the forest use purpose to another purpose in order to implement the Ring Road No.3 project, which will be implemented under the form of public investment from the central and local budgets with the total investment capital of nearly VND75,400 billion (US$3.3 billion), including over VND24 trillion (US$1 billion) from the budget of Ho Chi Minh City.

The project is expected to be built from 2022 to 2027 and it will start ithe construction in the fourth quarter of 2023. 

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