VIETNAM BUSINESS NEWS DECEMBER 22

Must Read

International air cargo throughput increases by over 21 percent in 2021

The Civil Aviation Authority of Vietnam (CAAV) reported that approximately 1.1 million tonnes of goods were transported overseas by air in 2021, an annual increase of 21.3 percent.

By contrast, due to COVID-19 impacts, international air passenger throughput was estimated at 500,000, down 93 percent year-on-year.

The CAAV said during the year, it has regularly inspected and reviewed the progress of projects on upgrading runways and taxiways at the Noi Bai international airport in Hanoi and Tan Son Nhat international airport in Ho Chi Minh City.

Shares manage to gain on real estate stocks

The market’s upward trend weakened during the afternoon trading session on Tuesday with the market experiencing drops in large-caps’ prices, but gains in real estate stocks pushed up indices.

On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index inched up 0.1 per cent to end at 1,478.74 points. The market’s breadth was positive with 247 gainers and 220 losers. Some 866 million shares were traded on the southern bourse, worth nearly VND26.8 trillion (US$1.17 billion).

The VN30-Index, tracking the 30 biggest stocks on HoSE, lost 0.14 per cent to end at 1,511.48 points. Twelve out of 30 stocks in the VN30 basket posted gains, while 15 decreased.

On the Ha Noi Stock Exchange (HNX), the HNX-Index gained 0.09 per cent to end Tuesday at 455.01 points. During the session, investors poured over VND3.3 trillion into the market, equivalent to a trading volume of 111 million shares.

International air cargo throughput increases by over 21 percent in 2021 hinh anh 1

Businesses face obstacles in exporting goods to US and EU markets

During a recent forum titled “Development of Vietnam’s logistics industry with Europe – America region”, Nguyen Hoai Nam, general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), pointed out that freight costs to both the EU and the Middle East had jumped up to between US$10,000 and US$14,000 per container compared to just US$1,000 previously paid.

Although the US and EU represent two major consumers for Vietnamese seafood, the sharp rise in sea freight charges and a lack of empty containers have built up great pressure on domestic exporters that are obliged to deliver shipments on a due date.

Business representatives revealed that the high logistics costs have impacted their competitiveness within the global market, with some facing serious losses and production stagnation.

Suffering high sea freight rates and other additional fees, Vietnamese businesses now find it hard to compete against their rivals from Thailand, India, Ecuador and others that boast better production costs, they stressed.

Domestic tourism ready for a bonanza year in 2022

The Ministry of Culture, Sports and Tourism recently announced a programme aimed at promoting domestic tourism in a safe and flexible manner whilst effectively controlling the COVID-19 pandemic. The scheme, running with the theme of “Safe traveling – Full experience”, will strive to restore the market’s confidence in safe and attractive domestic tourism.

Safe tourism has also been supported by 12 northern cities and provinces, including Hanoi, Quang Ninh and Hai Phong, through the signing of a memorandum of understanding (MoU) on tourism cooperation to offer safe tourism services to holidaymakers.

Businesses expected that domestic tourism would get back on track in 2022 with numerous attractive products and destinations.

Soc Trang’s shrimp exports up 9 percent this year despite COVID-19

Soc Trang’s shrimp export turnover this year has topped 910 million USD, up 9 percent compared to 2020.

The province has 53,000 ha of brackish water shrimp farming, including 40,000 ha for white-leg shrimp cultivation. The area of intensive and semi-intensive farming accounted for 93 percent. The shrimp output is estimated to reach 183,000 tonnes by the end of this year, a year-on-year increase of 17.8 percent.

The province has set the goal of expanding the area under brackish water shrimp cultivation to 51,000 ha with an output of 196,000 tonnes next year.

Reference exchange rate down VND7

The State Bank of Vietnam set the daily reference exchange rate at 23,183 VND/USD, down 7 VND from the previous day.

With the current trading band of +/-3 percent, the ceiling rate applicable to commercial banks during the day is 23,878 VND/USD and the floor rate 22,487 VND/USD.

Vietnam, Cambodia to forge cooperation in agro-forestry-fishery

Vietnam and Cambodia agreed to boost cooperation in the agro-forestry-fishery sector during a working session between the Vietnamese Ministry of Agriculture and Rural Development and the Cambodian Ministry of Agriculture, Forestry and Fisheries in Phnom Penh on December 21.

The two ministers concurred to intensify inspections over timber trading and proposed signing a number of cooperation agreements in agriculture and fishery between the two governments in the time ahead.

Vietnam, Australia deepen trade ties

The Governments of Vietnam and Australia on December 21 announced their enhanced economic engagement strategy, and set out a roadmap to boost bilateral trade and investment ties.

In a media release, Australian Minister for Trade, Tourism and Investment Dan Tehan welcomed the strategy as the foundation for Vietnam and Australia’s effort to double investment and become top ten trading partners.

Statistics show that over the past two decades, the two-way trade has expanded 8.6 percent, much higher than the average growth rate of 5.8 percent between Australia and other ASEAN countries.

Trade between Vietnam and Australia reached some 14.6 billion AUD (10.4 billion USD) last year.

VinaCapital Ventures invests in Hub Global blockchain eco-platform

VinaCapital Ventures, a technology investment platform of VinaCapital Group, on December 21 announced that it has invested in Hub Global JSC, a blockchain eco-platform that focuses on supporting the development of promising Vietnamese startups creating blockchain solutions across a range of verticals.

The deal has made VinaCapital Ventures the largest strategic shareholder of Hub Global and helped it secure a seat on its Board of Directors.

Hub Global JSC was founded in 2021. It focuses on three key areas: incubator/accelerator, blockchain community and sandbox, and blockchain investment fund, backed by 10 limited partners and several reputable entrepreneurs, the fund has recorded a profit of 5x its initial investment after just three months of operation.

Vietnam Airlines Group to offer nearly 2 million tickets for Tet

Vietnam Airlines Group, comprising Vietnam Airlines, Pacific Airlines and VASCO, will put up for sale nearly 2 million tickets on domestic flights during the upcoming Lunar New Year (Tet) holiday.

The tickets, each priced about 643,000 VND (28.04 USD) on one way, will be for flights from January 6 to February 15, mainly between Hanoi and Ho Chi Minh City, Da Nang, Nha Trang, Da Lat, Phu Quoc, and between HCM City and Da Nang, Hai Phong, Vinh, Thanh Hoa, Hue, Chu Lai, Quy Nhon, Phu Quoc, Nha Trang and Con Dao.

The airlines have officially sold 1.2 million tickets, and would increase the number based on market demand as well as the permission of competent agencies, a representative from the group said.

Notably, discount tickets will be available from December 22 to February 22 for flights to HCM City from January 21 to 31, and those from HCM City from February 6 to 13.

Webinar seeks ways to connect young entrepreneurs in HCM City and Indonesia

The Ho Chi Minh City Union of Friendship Organisations (HUFO) in coordination with the Indonesian Consulate General in the city held a webinar on December 21 to promote investment collaboration between Vietnamese and Indonesian young entrepreneurs.

This is part of a series of international economic cooperation seminars jointly held by the union and relevant agencies to promote collaboration in various fields and relations between the two countries, Ha said.

Participants at the webinar looked into the potential for socio-economic and cultural development of Vietnam and Indonesia and ways to overcome challenges of post-pandemic recovery. They also discussed measures to strengthen cooperation relating to trade and investment between businesses of the two countries in general, and between young businesses in HCM City and Indonesia in particular.

Hanoi’s State budget collection exceeds target

As of the beginning of December, Hanoi collected over 255 trillion VND (11.12 billion VND) for the State budget, surpassing the target set by the government by 8.3 percent.

During the period, the capital’s budget expenditure was estimated at over 84.73 trillion VND. Of the sum, more than 38.88 trillion VND and nearly 45.44 trillion VND were channeled into development investment and regular spending, respectively.

The city has so far seen the establishment of over 25,000 firms, which registered about 345 trillion VND worth of capital in total.

The city’s loan balance in the year increased by 10.4 percent, with loans worth nearly 4.7 trillion VND provided for over 111,000 customers through the Vietnam Bank for Social Policies’ Hanoi branch.

Da Nang bolsters cooperation with BRG Group, Sumitomo Corporation Vietnam

Secretary of the Da Nang Party Committee Nguyen Van Quang and Chairman of the municipal People’s Committee Le Trung Chinh hosted a reception for leaders of the BRG Group and Sumitomo Corporation Vietnam on December 21.

The event was intended to define specific moves to realise the MoUs on project development signed between Da Nang authorities and the two corporations during Prime Minister Pham Minh Chinh’s official visit to Japan in November.

Aviation sector gears up for New Year holidays

The Civil Aviation Authority of Vietnam (CAAV) has asked airports, airlines, and relevant parties nationwide to make preparations to serve people’s travel demand while ensuring traffic and pandemic safety during the New Year, Lunar New Year, and spring festivals.

In a recent directive, the CAAV requested the Airports Corporation of Vietnam, Van Don International Airport, Vietnam Air Traffic Management Corporation, Vietnamese airlines, and airport authorities to set up steering committees for the task, publicise hotlines available around the clock to deal with information related to their duties, and put in place plans to meet travel demand during the holidays.

Particularly, it told airports to tighten control over aviation security and safety, ready personnel for the tasks, and work closely with local authorities to minimise traffic congestion, especially at Tan Son Nhat International Airport in Ho Chi Minh City.

Seminar talks hydrogen energy in Vietnam

Delegates at an online seminar on December 21 exchanged views on the role of hydrogen energy in Vietnam’s journey to net zero carbon emissions.

The online seminar formed part of activities within the Renewable Energy Month 2021 (REM21) initiated and organised by the Vietnam Sustainable Energy Alliance (VSEA) from December 2 to 23.

The participants discussed how to connect agencies and organisations to devise targets of clean energy development in Vietnam, and to bring issues regarding hydro and renewable energy closer to investors, agencies, factories and scientists.

Furture of electric vehicle development in Vietnam discussed

Electric vehicles have high development potential in Vietnam amid the growing trend of using green and clean energy, heard an online conference held by Green Innovation and Development Centre (GreenID) and the Giao thong (Transport) newspaper on December 21.

Participants discussed a wide range of issues related to the future development of electric vehicles in the country, focusing on infrastructure system, encouragement policy, charging centre planning, and experience from countries in the world.

Kien Giang posts 4 percent increase in aquatic production value

The production value of aquatic products in the Mekong Delta province of Kien Giang increased by 4 percent to top 32.6 trillion VND (1.4 million USD) this year, despite the serious impact of the COVID-19 pandemic.

According to the provincial Department of Agriculture and Rural Development (DARD), total catches and aquaculture output came to 854,330 tonnes of aquatic species this year, up 2.2 percent compared to last year’s figure. Of the figure, the output of aquatic cultivation was 285,470 tonnes, including 104,694 tonnes of brackish shrimp.

While sea fishing faced difficulties like rising petroleum prices and declining fisheries resources, aquaculture had a good year, with output exceeding the year’s target.

Thai Vietjet to operate direct air route to Phu Quoc from December 30

Thai Vietjet is set to co-operate with its tourism partners in order to open a direct air service from December 30, connecting Bangkok with Phu Quoc in the southern province of Kien Giang.

The latest route will allow Thai tourists to experience Phu Quoc for four days and three nights, with the package tour being priced from only VND15,800,000.

International visitors to Phu Quoc must be fully vaccinated and present a negative RT-PCR test result that was recorded within 72 hours prior to departure.

During their stay, tourists will also get tested twice for COVID-19, while simultaneously complying with regulations on pandemic control measures.

HCM City’s annual Promotion Fair opens

Some 230 businesses are displaying a wide range of products at the 2021 Promotion Fair which opened in HCM City on December 21.

The fair at the Phu Tho Indoor Stadium in District 11 has more than 400 booths showcasing consumer goods, food, textiles, footwear, cosmetics, household appliances, handicraft, furniture, and other products, and selling them at big discounts. The city’s 50 per cent discount limit does not apply to the fair.

HCM City to keep prices of essential goods stable during Tet

The HCM City government wants businesses and distributors to increase production and stockpiling of essential goods to ensure sufficient supply for the city’s 9.4 million inhabitants during the upcoming Tet (Lunar New Year) holidays.

Businesses have earmarked more than VND11.02 trillion (US$480.9 million) to stockpile goods to meet the rising demand during the run-up to the holidays, according to the city Department of Industry and Trade.

With this, businesses are likely to ensure sufficient supply, with stockpiles accounting for 29-54 per cent of the demand for key products like poultry, pork, eggs, processed foods, cooking oil, and rice.

Supermarket chains, retailers and convenience stores already have inventories of essential goods of two or three times the normal amount.

Thu Duc wholesale market in HCM City reopens

The Thu Duc agriculture wholesale market in Thu Duc City has reopened after more than five months of closure, according to the municipal Department of Industry and Trade.

Prior to the pandemic, about 3,200 tonnes of goods arrived at the wholesale market each day.

During the shutdown period, a transhipment station was set up at the wholesale market to ensure food supply (which transhipped around 90-100 tonnes of goods, mainly fruit, every day). The transhipment station will stop operation when the wholesale market resumes full operation.

At the city’s three wholesale markets, the amount of goods arriving is about 4,234 tonnes per day, of which Hoc Mon wholesale market accounts for 1,600 tonnes per day, Thu Duc wholesale market 600 tonnes per day and Binh Dien wholesale market more than 1,178 tonnes per day.

Deposit interest rates surge to meet rising capital ahead of Tet

Bank depositors are happy while firms are worried, as savings interest rates are increasing significantly in the last months of the year.

Many banks have recently increased their deposit interest rates by 0.1-0.8 percentage points per year to mobilise amid rising capital demands ahead of Tet (Lunar New Year), the country’s largest holiday.

Statistics from the State Bank of Viet Nam (SBV) showed deposit interest rates at small- and medium-sized commercial banks have increased sharply since early this month. Currently, the highest deposit interest rates in the market range from 7.15 to 8 per cent per year.

Hanoi’s State budget collection exceeds target

As of the beginning of December, Hanoi collected over 255 trillion VND (11.12 billion VND) for the State budget, surpassing the target set by the government by 8.3 percent.

During the period, the capital’s budget expenditure was estimated at over 84.73 trillion VND. Of the sum, more than 38.88 trillion VND and nearly 45.44 trillion VND were channelled into development investment and regular spending, respectively.

The city’s loan balance in the year increased by 10.4 percent, with loans worth nearly 4.7 trillion VND provided for over 111,000 customers through the Vietnam Bank for Social Policies’ Hanoi branch.

Over 700 accommodation establishments in Vietnam receive travel sustainable badge

More than 700 accommodation establishments in Vietnam have received the travel sustainable badge launched by Booking.com.

The goal of the badge is to make credible recognition of impactful sustainability efforts attainable for more properties worldwide and to provide travellers with a transparent, consistent and easy-to-understand means to identify a wider range of more sustainable stays, no matter where they want to travel.

Former fuel tycoon Trinh Suong faces prison term of 12-13 years

The Dak Nong People’s Procuracy on December 21 proposed sentencing Trinh Suong, director of My Hung Co., Ltd in the Mekong Delta province of Soc Trang, to 12-13 years behind bars for allegedly producing and trading in more than 192 million liters of substandard fuels.

Suong and his accomplices had produced over 192 million liters of substandard fuels and sold nearly 189 million liters, earning more than VND151 billion. Meanwhile, Quan produced and sold nearly 12 million liters, earning over VND3.5 billion, and Dung sold over 4.2 million liters, earning over VND2.4 billion, the local media reported.

Their violations impacted consumers and the fuel market order. Therefore, the procuracy suggested a jail term of five to six years for Quan and seven to eight years for Dung.

Work on first section of Ring Road No. 3 to start in Q1 2022

The HCMC government has committed to ensuring sufficient site clearance funding for a section of the Ring Road No. 3 project, thus making it possible to start work on the section in the first quarter of next year.

Under a document sent to the Ministry of Planning and Investment, the investment in the Tan Van-Nhon Trach section has been revised up from over VND5.3 trillion to nearly VND7 trillion as the site clearance cost has soared from VND624 billion to VND2.25 trillion.

The reciprocal capital for the section will be increased from VND1.1 trillion to nearly VND2.8 trillion, Thanh Nien Online newspaper reported.

The 91-kilometer ring road would pass through HCMC, Dong Nai, Binh Duong and Long An and require an estimated VND165.3 trillion, with some VND84.7 trillion of it going to the first phase.

Binh Dinh grants investment certificates for three new projects

The Dong A Granite Stone Company will pour over VND95 billion into an exterior wood processing plant project at the Phuoc An industrial complex in Tuy Phuoc District’s Phuoc An Commune.

In addition, the Nhon Hoi Eco Printing and Packaging Company was licensed to develop a crumpled paper and covering production facility at the Nhon Hoi industrial park in Quy Nhon City, with a total cost of VND70 billion.

The third licensed project is the unbaked brick production plant developed by the Ancient Pottery Company. The project, which requires a total capital of VND6.4 billion, will be located in Tay Son District and be put into operation in September 2023.

Dong Nai urged to hand over land for Long Thanh airport project this month

Deputy Prime Minister Le Van Thanh has told Dong Nai Province to hand over 1,810 hectares of cleared land to the investor of the Long Thanh International Airport project before the year is out, according to the Government Office.

Apart from asking relevant agencies and units to speed up work on the project, Deputy PM Thanh ordered the province to complete the handover of all 1,810 hectares of land for the first phase of the big-ticket project and 722 hectares in reserve prior to December 31.

The remaining 4,946 hectares for the entire project must be handed over before June 30, the local media reported.

Only one border gate in Lang Son opens for exports to China

Only the Huu Nghi Border Gate in the northern province of Lang Son remains open for vehicles transporting Vietnam’s exports to China, while thousands of container trucks have been stuck at the northern border gates for half a month.

Meanwhile, only nearly 100 container trucks can go through the Huu Nghi Border Gate per day, the local media reported.

As of December 20, nearly 4,600 container trucks have been stranded at the Huu Nghi, Tan Thanh and Chi Ma border gates. However, customs clearance procedures at the Tan Thanh and Chi Ma border gates have been suspended since December 8.

Bamboo Airways to open two more air routes early next year

Local carrier Bamboo Airways will launch air services on the two routes of HCMC-Rach Gia and Rach Gia-Phu Quoc at the beginning of 2022, said the carrier’s representative.

Two months after the carrier resumed the Hanoi-Rach Gia direct service, the number of passengers has increased, especially during the year-end period. Each flight served 60-70 passengers on average, the representative added.

Bamboo Airways is currently operating a wide air route network covering many major destinations, such as the HCMC-Dien Bien, Hanoi-Rach Gia or direct routes to Con Dao Island off Ba Ria-Vung Tau Province, creating favorable conditions for passengers to travel faster.

Source: VNA/SGT/VIR/VNS/VOV/VGP

IFC invests $30 million in waste-to-energy plant in Vietnam

- Advertisement -spot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest News

Multiple health declarations, testing requirements are impeding the opening of air routes

To make regular international flights convenient and safe, it is necessary to remove “barriers” from inappropriate medical quarantine conditions. In...
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img