VIETNAM BUSINESS NEWS FEBRUARY 19

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VN to build a modern and sustainable agriculture economy by 2030


Viet Nam has set an objective to build a modern and sustainable agriculture economy during the 2021-2030 period, said minister of agriculture and rural development Le Minh Hoan.

In order to realise such objectives, the minister said the country’s agriculture sector must foster an advanced economy with an emphasis on producing high-quality products and added value that meet the demands of the market.

Another top priority is to build the country’s rural areas and improve living standards for farmers. The minister highlighted the need for the development of agricultural infrastructure and investment in human resources that benefit Vietnamese farmers.

According to the ministry, Viet Nam’s agriculture sector aims for a growth target of 2.5-3.0 per cent annually until 2030 with agricultural productivity at 5.5 per cent. Measures have been taken to explore potential markets for Vietnamese products, which was said to increase in value at 5-6 per cent a year.

Hoan said the objective is to transform Viet Nam’s rural areas into modern, developed agricultural production centres that employ advanced and environmental-friendly technology by 2050.

IFC supports development of Vinh Phuc ICD Logistics Centre

Vietnam’s T&T Group and Singapore’s YCH Group have inked a deal with the International Finance Corporation (IFC) on project development to attract capital funding for their inland container depot (ICD) logistics centre in northern Vinh Phuc province.

Under this agreement, IFC – a member of the World Bank Group, exclusively entrusted by T&T and YCH, will arrange a funding package that can be worth up to 75 percent of the total investment in the Vinh Phuc ICD Logistics Centre, the first super-port project of the ASEAN Smart Logistics Network (ASLN). This package may include a loan from IFC and others that IFC mobilises from other sources.

T&T and YCH started work on the Vinh Phuc centre on December 23. The project covers over 83ha in Huong Canh township and Son Loi commune of Binh Xuyen district. Featuring functions of both a distribution centre and an ICD, it has a total investment of some 200 million USD and is designed to handle about 530,000 TEUs per year.

EVFTA an extra push for Vietnamese goods in Sweden

The EU-Vietnam Free Trade Agreement (EVFTA) going into effect has given an extra push for Vietnamese goods into the Swedish market as import tariff cut heightens their competitiveness, Diep Van Ty, chairman of the Vietnamese trade association in Sweden, has said.

Food and foodstuff are the biggest earners from the trade deal since the tariffs were slashed to zero as soon as it took effect, said Ty, who is also Chairman of East Asian Food AB, a Sweden-based food importer. These are also the most popular Vietnamese exports to Sweden, he added.

Data from the Vietnamese Trade Office in Sweden showed Vietnam was among the three exporters of rice, besides the US and Norway, posting positive growth in the Northern European country, attributable to the benefits brought about by the EVFTA.

Ty pointed out several challenges facing Vietnamese goods in the Swedish market, notably high shipping costs caused by the long geographical distance between the two countries.

Many Swedish consumers have become familiar with food imported from Thailand and other countries, so it takes time to influence their taste and habit, he explained, adding that the supply of most of the imports from Vietnam can be disrupted by seasonal factors.

To fix the problems, the Vietnamese trade association plans to raise investment for the construction of a major logistics centre for Vietnamese products located at the city of Malmo, expected to facilitate the distribution of goods in Sweden and reduce costs.

The association is also considering to send a delegation to Vietnam this year to seek for quality and stable suppliers.

7th ASEAN Economic Community Dialogue held virtually

The seventh ASEAN Economic Community (AEC) Dialogue took place online on February 17 to discuss the findings and recommendations in the ASEAN Business Sentiment Study 2020/2021, which gauged ongoing sentiment of the ASEAN indigenous enterprises towards the implementation of the AEC Blueprint 2025.

The study delved deeper into the sentiment on services trade liberalisation, focusing on key service sectors such as the financial services and tourism services.

The discussion highlighted the need to simplify licensing procedures to promote regional investment, harmonisation of data sharing regulations, upskilling digital talent, and creating conducive policy ecosystem to accelerate ASEAN’s indigenous enterprises’ business growth.

Meanwhile, the panel discussion on tourism services underlined the low awareness of Mutual Recognition Arrangement for Tourism Professional and the need to accelerate the reopening of the border in a safe manner to restart the tourism industry post COVID-19 pandemic.

Construction of large-scale projects kicks off in Thai Binh

A ceremony took place at the Lien Ha Thai industrial park in the northern province of Thai Binh’s Thai Thuy district on February 18 to begin the construction of three large-scale projects worth 240 million USD in total.

One of them is the 120-million-USD Lotes Thai Thuy Viet plant of the Taiwanese-invested LOTES Vietnam limited company. The facility produces electronic devices and machine components.

The second project is the Korean-invested Ohsung Vina limited company’s Ohsung Vina Thai Binh plant, which costs 40 million USD and makes electricity devices. The plant, spanning some 60,000 sq m of land, is expected to become operational in June this year and be fully completed in June 2024.

The third project is an 80-million-USD project on the construction and business of factories and offices for rent by the Nam Tai Group Pte. Ltd.

On the same day, Thai Binh’s Quynh Phu district also saw a ground-breaking ceremony of the TH Group’s clean food processing plant, which is valued at about 620 billion VND (27.16 million USD). The establishment is scheduled to become operational in early 2023.

HCM City ports begin trial of automatic collection of infrastructure fees

A one-month trial operation of an automatic system for collecting fees for use of infrastructure and public services at ports began in Ho Chi Minh City on February 16.

The municipal People’s Committee has tasked the Department of Transport with monitoring the toll collection and promptly addressing problems and seeking its directions if needed.

The customs department has been told to provide support and share toll declaration data.

All the fees are to be paid online.

For goods imported for re-export or deposited in bonded warehouses and for transit and transhipment goods the fee is 50,000 VND (2.2 USD) per tonne for liquid and bulk cargo, 2.2 million VND (96.5 USD) for a 20-foot container, and 4.4 million VND (193 USD) for a 40ft container.

For goods declared outside the city, the rates are 30,000 VND (1.3 USD), 500,000 VND (21.9 USD) and 1 million VND (43.9 USD).

For imports and exports declared in the city, the rates are 15,000 VND (0.65 USD), around 250,000 VND (11 USD) and 500,000 VND.

Enterprises can look up their online payment receipts at https://thuphihatang.tphcm.gov.vn:8092/Home.

Businesses can do their online fee declaration at https://thuphihatang.tphcm.gov.vn:8081/Home, and call a hotline at 1900 1286 for support.

Honda Logicom to build new warehouse in Hai Phong

Honda Logicom Vietnam Company Ltd, a subsidiary of Honda Logicom Company Ltd (Aichi, Japan), will start building a new general logistics warehouse as well as bonded warehouse in June 2022 in DEEP C Industrial Zones in the northern port city of Hai Phong.

With a total area of 5,300sq.m, the new warehouse is twice the size of their three existing warehouses in Vietnam, making it Honda Logicom’s largest project nationwide. By securing a strategic location in DEEP C Industrial Zones, adjacent to Hai Phong Port, the largest port system in the north, and Lach Huyen deep seaport, one of its kind in the region, Honda Logicom Vietnam enjoys logistics cost benefits while enabling leading time reduction.

With its parent company in Japan, Honda Logicom Company Ltd, has been accumulating deep knowledge on auto parts logistics for major Japanese car manufacturers since their foundation in 1963. Meeting strict requirements for the provision of over 300,000 auto parts along with car production planning has grown Honda Logicom into one of the most unique logistics solution providers in the industry.

Vietnamese businesses assert positions on world’s retail map

Vietnam’s retail market has recently recorded strong growth and its excitement is also reflected via the successful deals of injecting capital from foreign investors into potential domestic retailers.

In 2016, more than 50 percent of Vietnam’s retail market share belonged to foreign enterprises but now Vietnamese retailers account for about 70-80 percent of the number of points of sale across the country. Notably, Vietnamese businesses have worked together to create a foothold in the retail market. The most prominent example is the merger between Masan Group and Vingroup, becoming one of the largest retail and production chains in Vietnam.

In fact, Vietnamese retail businesses have aligned and found each other’s strengths to develop. In particular, leading retail enterprises in Vietnam have developed multi-channel sales to keep up with the development of the digital technology era.

Businesses expect tourism market to get up steam in Quarter II

Many experts and leaders of travel firms believe that the Vietnamese tourism market will recover quickly from the second quarter of this year following the government’s decision to reopen borders to travel as of March 15.

The National Tourism Administration of Vietnam reports that more than six million Vietnamese people selected to travel to domestic destinations during the recent nine-day lunar New Year holiday.

Vietnam has attracted approximately 150,000 foreign travelers under a pilot scheme to welcome back foreign travelers with vaccine passports that started in mid-November 2021. The Civil Aviation Authority of Vietnam’s recent decision to reopen all international air routes starting on February 15 is expected to support the tourism sector’s recovery efforts.

However, health quarantine and visa policies are major barriers to attracting foreign tourists to Vietnamese destinations. For instance, many foreign travelers hesitate to choose Vietnam as a destination as they are required to self-isolate at their places of residence for a period of three days.

In addition, Vietnam has so far recognized vaccine passports of nearly 80 countries and territories, while only 14 countries have approved its similar document. In Southeast Asia alone, Singapore has yet to recognize Vietnam’s vaccine passport. The Republic of Korea, Japan and China have also yet to fully open their door to tourism with Vietnam, according to the Vietravel CEO.

HCM City’s export turnover reached more than $4 billion

HCM City exported US$4.1 billion worth of goods in January to again rank first in the country after doing so in December, according to statistics from the General Department of Viet Nam Customs.

Bac Ninh Province had surpassed it for several months during the fourth wave of the COVID-19 pandemic last year.

In December, after the pandemic was brought under control and firms resumed operations, the city’s exports topped $4.8 billion.

For full-year 2021 its exports were worth $44.9 billion, the highest, but Bac Ninh was a very close second with $44.8 billion.

Disruptive policies needed for HCM City recovery

Full reopening, institutional reform and improving medical capabilities are needed to enable HCM City and Viet Nam’s economic recovery, economists told a conference yesterday.

Vu Tien Loc, chairman of the Viet Nam International Arbitration Centre, said, “HCM City has been shifting its focus from ‘zero-COVID’ to living with the pandemic and now to overcoming it.”

The city’s economic development drives the entire country, he said.

He proposed several solutions to aid its recovery, one of them being “opening as much as possible”, including lifting all restrictions on international flights.

The others include ensuring social security for people who are struggling, helping businesses and co-operative groups recover and improving traffic infrastructure to foster short- and long-term economic development.

A VND350 trillion (US$15.42 billion) package to revive the country’s economy passed in January would facilitate these solutions, he said.

Assoc Prof Tran Dinh Thien, former rector of the Viet Nam Institute of Economics, said using the stimulus package “requires synchronised action across the board,” and so pandemic regulations, preventive measures and practical situations have to be factored in.

He said for instance if businesses are unable to access the package, the problem may lie in policies and administrative procedures, and in that case institutional reforms may be required.

Dr Can Van Luc, a member of the National Financial and Monetary Policy Consultation Council, said this is a great opportunity for effecting institutional reform and improving the investment climate since many foreign investors are keen on Viet Nam.

Tran Du Lich, a member of the Prime Minister’s economic advisory group, said HCM City is one of the worst affected places by the pandemic, and so requires more intensive recovery policies.

The pandemic has laid bare many of the city’s problems in terms of economic structure and living conditions, making disruptive restructuring imperative, he said.

Removing chokepoints that are hindering public and private investments, and providing financial support to small businesses are among the key tasks the city should focus on for economic recovery, he added.

Assoc Prof Tran Hoang Ngan, rector of the HCM City Institute for Development Studies, called for waiving land rents and cutting loan interest rates.

Tran Anh Tuan, deputy director of the city Department of Industry and Trade, said work is on to make the city Viet Nam’s international financial hub.

Just last week it signed a memorandum of understanding with Imex Pan Pacific Group for studying policies to build the hub, he said.

The city is also seeking over VND6.5 trillion from the Government to renovate 168 district- and ward-level medical facilities.

Banks prepare capital to meet credit demands in 2022

Banks have been increasing the attraction of deposits to have enough capital for the credit needs of customers. Credit demand is expected to increase from the first quarter of this year.

This stands in contrast to the years before the pandemic, when credit in the first quarter often declined due to low capital demand.

This year, credit has increased from January. According to the State Bank of Vietnam (SBV), credit as of January 25, 2022 rose by 2.74 per cent compared to the end of 2021. Compared with January of the past ten years, the rise was the highest rate. According to experts, the surge was a positive signal, showing the economy is recovering strongly and capital demand is increasing rapidly.

The SBV sets a credit growth target of about 14 per cent for 2022, against 13.53 per cent of 2021. According to the SBV, along with preferential interest rate credit packages given to the production and business sectors, credit growth will be more flexible this year to support economic recovery.

VBF Tax & Customs Working Group proposes zero VAT treatment for FIEs

As many foreign-invested enterprises (FIE) face difficulties in completing procedures for applying zero VAT rates to their exported services due to unclear regulations, the Vietnam Business Forum’s (VBF) Tax & Customs Working Group on February 18 proposed zero VAT treatments for these entities as well as more understandable conditions.

According to the working group’s members, the requirements for services consumed outside Vietnam are vague and not defined in any way in the law. This leads to a discretionary interpretation of the tax authorities when taxpayers take their position to apply zero per cent VAT for exported services.

The current practice of tax authorities would discourage taxpayers to apply zero VAT on exported services, which would eventually make Vietnamese service providers less competitive in terms of pricing in the international market if they have to charge 10 per cent VAT instead of zero.

Hoa Phat about to start construction of $4-billion steel plant

Hoa Phat Group plans to start the construction of the second phase of the Hoa Phat Dung Quat Iron and Steel Production Complex at the end of the first quarter this year.

Dinh Van Chung, deputy director of Hoa Phat, announced this at the meeting with State President Nguyen Xuan Phuc.

The complex’ second phase will have total investment capital of VND85 trillion ($4 billion) and produce hot-rolled coil steel (HRC). The plant is expected to come into operation in 2024, increasing the complex’ total capacity to 11 million tonnes per year.

Once completed, the complex will contribute VND18 trillion ($782.6 million) to the state budget.

Besides this, the project is expected to create jobs for about 8,000 employees, strongly promote mechanical and support industries, and contribute to the growth of Quang Ngai Province’s industrial production value and GDP.

Czech Škoda Auto will manufacture cars in Quang Ninh

The Ministry of Planning and Investment (MPI) has worked with the Czech Embassy in Vietnam and Škoda Auto on the plan of building an automobile factory in the northern province of Quang Ninh, after which the European carmaker wants to begin exporting its vehicles to other markets.

On February 16, MPI Deputy Minister Nguyen Thi Bich Ngoc met with Czech’s Ambassador to Vietnam Vítezslav Grepl and the leaders of Škoda Auto. Chairman of Quang Ninh People’s Committee Nguyen Tuong Van, as well as the provincial head of the Economic Zones Management Board Hoang Trung Kien and leaders of relevant units, also attended the meeting.

Ambassador Grepl explained that Škoda is looking to establish modern manufacturing lines within its factory in Quang Ninh.

Ondrej Cerny, director of Russia and new markets of Škoda, said the company plans to put the factory into operation in 2022 and begin exporting cars by 2023, adding that he hoped the government, ministries, and agencies will offer support for Škoda in achieving these targets.

Deputy Minister Ngoc presented that as of date, there are 44 Czech projects investing in Vietnam with a total capital of $91 million, ranking 48th among 141 countries and territories investing in Vietnam.

JA Solar to develop $189-million facility in Vietnam

JA Solar, a solar cell and module manufacturer, has set out to invest $189 million into increasing the supply of high-efficiency products and raw materials in Vietnam.

The Chinese company announced its plans to expand its existing integrated production capacity by an additional 14GW to meet its strategic development needs for the $543 million of total investment.

Accordingly, the investor will develop 2.5GW at Vietnam’s Bac Giang province in the form of wafer slicing capacity for $189 million through the company’s wholly-owned subsidiary JA Solar Vietnam Co., Ltd.

Construction and completion are expected to take around 12.5 months.

JA Solar entered Vietnam in 2016 with the first solar cells production plant worth $1 billion.

J&T Express secures $2 billion from a group of investors including Temasek

J&T Express, a Singaporean logistics company with strong presence in Vietnam, has raised $2 billion in its most recent round of funding, including Temasek.

Sources familiar with the matter revealed that the logistics business J&T Express secured $2 billion in its most recent fundraising round from investors such as Temasek Holdings Pte.

The fund comes as the company inches closer to receiving permission for an initial public offering in Hong Kong, cited Bloomberg.

Existing backers Hillhouse Capital, Boyu Capital, and Sequoia Capital China also partook in the financing, according to the sources, who requested anonymity due to the nature of the situation.

The fresh round, which valued J&T Express at $20 billion, comes to an end at the end of 2021.

In addition to Temasek, the logistics firm has attracted several new financiers, including Susquehanna International Group’s Chinese investment arm and Hidden Hill Capital, the private Chinese equity platform of logistics-focused investment manager GLP Pte.

Banks stepping up inclusivity with female-based products

Thanks to profound collaboration with international credit institutions, Vietnam’s banks are levering their nationwide financial inclusion commitment for women-led enterprises through a range of gender-specific initiatives.

The International Finance Corporation (IFC) under the World Bank and five world-class investment funds – Banque Internationale de Commerce-BRED, BlueOrchard Microfinance Fund, KASIKORNBANK Pcl, OPEC, and responsAbility Investments AG – have elevated their credit package granted to Hanoi-based lender SeABank, from $150 million in mid-June to $220 million as of now, to facilitate access to financial access for small- and medium-sized enterprises (SME) and women-owned businesses (WSME).

Last June, the IFC offered a $40-million loan to SeABank, which was the first phase of a $150-million financing package to support local businesses, particularly WSMEs. While the investment aims to increase SeABank’s SME lending portfolio, at least $20 million will be earmarked for WSMEs.

The IFC also advocates SeABank’s establishment of a women’s banking strategy in order to enable SMEs to close a $4.9-billion financing gap, making up more than 20 per cent of the overall financial deficit experienced by SMEs.

The Asian Development Bank (ADB) and Hanoi-headquartered lender TPBank inked a loan agreement worth $25 million last month to boost growth of access to financing for WSMEs in the country.

DEG, Germany’s Deutsche Investitions-und Entwicklungsgesellschaft mbH, has also contributed $25 million to the project.

The loan is backed by a technical assistance award of $750,000, which is envisaged to assist TPBank in better addressing WSME-related obstacles. The grant will be utilised to bolster TPBank’s competence to lend to women-owned businesses and recruit new employees in line with its gender-balance policy.

Besides technological excellence, TPBank targets being a trailblazer in the women-led business landscape, with an ambition to diversify its female borrowers. The grant is funded by the Women Entrepreneurs Finance Initiative (We-Fi).

TPBank, as it claimed, could integrate advanced technology to analyse the underserved WSME sector because of this agreement.

Likewise, with assistance from the ADB, SHB has just launched a preferential financing effort for WSMEs to empower women-owned businesses with the goal of assisting them in recovering and stabilising production. The two sides pledged to aid and abet businesswomen in maximising their potential to contribute to the country’s socioeconomic development. The project is scheduled to be completed by the end of 2022.

ADB also partnered with VPBank to roll out a preferential loan framework to bolster WSMEs capabilities in resuming production operations.

To meet these new borrowing demands – whether they be secured or unsecured – VPBank is offering interest rates as low as 2 per cent per year on a variety of loan products.

OCB, similarly, is also facilitating several preferential mechanisms for WSMEs to narrow gender disparity in the country, with the aim of driving forward an equitable and sustained economic recovery.

The State Bank of Vietnam estimated that women account for over 60 per cent of labour input in banks in Vietnam, but only approximately 20 per cent of top managerial positions. Domestic banks encounter difficulties recruiting and retaining talented professionals, and a shortage of competent female employees may result in more significant labour expenses.

Vietnamese businesses assert positions on world’s retail map

Vietnam’s retail market has recently recorded strong growth and its excitement is also reflected via the successful deals of injecting capital from foreign investors into potential domestic retailers.

In 2016, more than 50 percent of Vietnam’s retail market share belonged to foreign enterprises but now Vietnamese retailers account for about 70-80 percent of the number of points of sale across the country. Notably, Vietnamese businesses have worked together to create a foothold in the retail market. The most prominent example is the merger between Masan Group and Vingroup, becoming one of the largest retail and production chains in Vietnam.

In fact, Vietnamese retail businesses have aligned and found each other’s strengths to develop. In particular, leading retail enterprises in Vietnam have developed multi-channel sales to keep up with the development of the digital technology era.

They have also produced agricultural products, food and consumer goods by themselves to bring to customers, thus minimising intermediaries and reducing costs to enhance competitiveness in terms of price in the market.

According to economic experts, it is time for Vietnamese businesses to confidently redraw the retail map of Vietnam, act together, firmly master the distribution system and be ready to open doors to welcome Vietnamese goods to serve domestic consumers.

Vietnamese retail firms have not only changed production and business models to adapt to the COVID-19 pandemic and meet the needs of consumers but also continuously attracted new sources of foreign investment capital.

Companies ready to spend more on office space to protect employees

Businesses are willing to spend more on office facilities to safeguard employees’ health and ensure their safety after, experts said.

In a new report, property services firm Cushman & Wakefield said the COVID-19 pandemic in 2021 had a big impact on the office market in HCM City and Ha Noi and made remote working the norm.

So many companies have redesigned their offices and are willing to spend money on utilities that ensure employees’ health and safety.

With many international corporations seeking to reduce carbon emissions, retain talent and attract “green” capital, businesses need a long-term plan and vision to make their workplaces more sustainable.

While the spread of the Omicron variant of COVID has made cities more cautious, higher vaccination rates have allowed economies to reopen, giving employees peace of mind over returning to the office, and will contribute to boosting office demand in 2022.

Ha Noi’s villa and townhouse segment attractive in 2022

Ha Noi’s real estate market, especially the villa and townhouse segment, will prosper in 2022 thanks to economic stimulus economic programmes.

In 2022, more than 3,000 dwellings from 13 projects will enter the market. Forty-one per cent will be in Hoai Duc, followed by Dan Phuong with 26 per cent. Western districts including Ha Dong, Hoai Duc and Dan Phuong will have the largest supply in 2022 with over 2,200 dwellings, according to a Savills Viet Nam report on Ha Noi’s property market released at a press conference on Thursday in Ha Noi.

Eastern Ha Noi will also have strong growth with new supply from Ecopark and a new major project, Vinhomes Dream City in Van Giang District, Hung Yen Province.

Ha Noi recently collaborated with Hung Yen, Bac Giang, Bac Ninh and Vinh Phuc provinces for the approval of the investment plan for Ring Road 4. Villa and townhouse projects in Ha Noi and other provinces that are located near these Ring Roads would greatly benefit.

In the fourth quarter of 2021, villa and townhouse performance improved with 411 sales, increasing 96 per cent quarter on quarter but decreasing 19 per cent on year. Tay Ho had the most sales with a 40 per cent share, followed by Dong Anh with 21 per cent. Townhouses and shophouses had 57 per cent share of sales; villas has a 43 per cent share, the highest since the first quarter of 2020. Quarterly absorption of 37 per cent increased 17 percentage points quarter on quarter and 4 percentage points on year. New launches were 83 per cent absorbed.

Auto companies enjoy positive earnings

Auto businesses enjoyed positive annual earnings thanks to flourishing profits in the fourth quarter.

The Viet Nam Engine and Agricultural Machinery Corporation (VEA) ended 2021 with revenue of VND4.02 trillion (US$176.4 million), an increase of 9.6 per cent compared to 2020.

Its joint ventures and associates brought in profit of more than VND5.1 trillion for the whole year. This helped VEA earn profit before tax of VND5.94 trillion for the whole year. Profit after tax increased by 3.6 per cent to VND5.79 trillion. Earning per share (EPS) was VND4,321.

VEA’s joint venture companies include Honda Vietnam, Toyota Vietnam, and Ford Vietnam. VEA is enjoying high profits from joint ventures and associates.

After the first three quarters of negative earnings, even losing VND30 billion in Q3, Saigon General Service Corporation (Savico) recorded a net profit of VND75.5 billion in Q4.

In the whole of 2021, Savico’s revenue reached VND14.12 trillion, a decrease of 12 per cent compared to last year. After tax profit decreased by 6 per cent to VND144 billion.

Thanks to increased revenue and improved gross profit margin, Hang Xanh Motors Service Joint Stock Company (Haxaco) earned net profit of VND126 billion in Q4 of 2021, doubling the same period a year earlier. This result helped the business achieve profit growth of 28 per cent for the whole of 2021 with VND160 billion.

City Auto (CTF), specialising in the distribution of Ford cars, announced its revenue in the fourth quarter of 2021 reaching VND1.67 trillion, 5 times higher than in the third quarter. The fourth quarter’s profit reached VND39 billion, the highest profit in many recent quarters of CTF.

Loc Troi Group ships 4,500 tonnes of rice in 2022

Loc Troi Agricultural Products JSC, a member of Loc Troi Group JSC, has shipped over 4,500 tons of specialty rice, worth over US$3 million, to choosy markets this year.

A representative of Loc Troi told The Saigon Times on February 17 that the batches of fragrant rice, glutinous rice and white and brown rice had been exported to Italy, France, Canada, Hong Kong, Singapore, the Philippines and Kuwait, since early 2022. Each ton of rice was priced at some US$666.

Loc Troi Group this year has signed agreements with farm produce suppliers and firms to trade and produce two million tons of rice, worth over VND12 trillion.

Investor buys 6.59% stake in Angimex

La Quoc Dat has become a major shareholder of An Giang Import-Export Company (Angimex/AGM) after he bought 1.2 million AGM shares on February 14, equivalent to a 6.59% stake in the firm.

Closing the session on February 14, AGM shares were traded at VND39,000 per share. This means Dat had spent VND46.8 billion to own a 6.59% stake in Angimex. Prior to the transaction, Dat did not own any AGM share, reported Dau tu Chung khoan newspaper.

As for the firm’s business performance, AGM last year posted over VND3.9 trillion in revenue and over VND44 billion in after-tax profit, up 100.2% and 78.3%, respectively.

In 2022, the firm looks to earn more than VND8 trillion in revenue and VND70 billion in before-tax profit.

CAAV proposes upgrading Con Dao airport

The Civil Aviation Authority of Vietnam (CAAV) has proposed upgrading the Con Dao airport on Con Dao Island off Ba Ria-Vung Tau Province in early 2023 with a total investment of over VND3.2 trillion.

The national aviation authority put forward the proposal at a working session with the provincial government yesterday, February 17.

Under the upgrade plan, the length of the airport’s runway will remain unchanged at 1,830 meters, while the runway’s width will be increased from 30 to 45 meters. Also, four new taxiways will be built, reported Vnexpress.

Also, the airport’s apron will be widened from four to eight parking lots. Additionally, its internal traffic system, fuel storage facilities, passenger terminal and auxiliary works will be upgraded to ensure the airport can operate 24 hours per day.

After being upgraded, the airport will become a mix-use airport, as it will serve both civil and military purposes. In addition, it will be able to handle two million passengers and 4,400 tons of goods per year, and be capable of receiving Airbus A320, A321 aircraft or the equivalent planes.

Investment capital for Thu Thiem-Long Thanh light railway allocated

The capital allocation has been addressed to speed up progress of construction project of the Thu Thiem-Long Thanh light railway from this year.

The Ministry of Transport on February 18 has proposed the Prime Minister to allow the People’s Committee of Dong Nai Province to implement the construction project. Because the rail line will run through HCMC, the province and HCMC must come to an agreement before submitting the report to the Prime Minister in accordance with the Investment Law.

The Thu Thiem-Long Thanh light railway has a length of 38 kilometers, starting at the Thu Thiem station in Thu Duc City of HCMC, and ending at the Long Thanh International Airport in Dong Nai.

The project cost is estimated at more than VND40.5 trillion (US$1.77 billion). It will be built under the public-private partnership (PPP) format and expected to be completed by 2030.

Source: VNA/SGT/VNS/VOV/SGGP/VNN/Hanoitimes

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