VIETNAM BUSINESS NEWS JANUARY 15/2024

Circular economy is becoming an inevitable trend and taking place strongly in many countries around the world, including Vietnam, as the transition from the traditional linear economy to a circular economy is considered an effective solution, helping to maintain economic growth and development as well as minimising negative impacts on the environment.

Businesses operating in the fast-moving consumer goods industry (FMCG), including foodstuff and drink producers with such names as Nestlé and Coca Cola, are pioneering in this regard.

According to Nguyen Quang Vinh, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) and President of the Vietnam Business Council for Sustainable Development, 90% of Vietnamese FMCG companies have shifted to a circular economy model. However, 82% of them have adopted the model at a preliminary or average level.

The circular economy model helps production and processing businesses become more responsible and efficient through the development of resources, infrastructure, and new technologies while improving their competitiveness, increasing benefits from recycling activities and reduce costs related to waste discharge and resource exploitation, he said.

The adoption of the circular economy model also brings positive impacts to society in terms of management, enhancing the quality of the living environment and changing community awareness.

Vinh also pointed out that Vietnam has not issued a special policy or a national target programme on circular economy. Thus, fine-tuning institutions for the effective use of resources and environmental protection, especially for the circular economy, is very important and urgent.

Binu Jacob, General Director of Nestlé Vietnam, said that with the vision of becoming a global company with local connections and a pioneer in sustainable development, it has been making continuous efforts to carry out solutions and initiatives in all aspects, including environment, society and governance, contributing to the country’s socio-economic development.

Recently, Nestlé Vietnam coordinated with the Ministry of Agriculture and Rural Development to promote regenerative agriculture practices, low-emission agriculture, climate change response and step up technology transfer, research and development, digital transformation and multi-party cooperation.

Last year, the company launched a project on sustainable coffee farming in line with the agro-forestry initiative in Vietnam to plant more than 2.3 million trees, contributing to reducing absorption and storage of about 480,000 tonnes of CO2 in the 2023 – 2027 period.

Be secures $30 million investment from VPBank Securities

On January 10, Be Group, owner and operator of the multiservice consumer platform Be, announced a substantial investment from VPBank Securities JSC (VPBankS), a subsidiary of VPBank.
 
On completion of the deal, VPBankS will own shares of Be Holdings, the parent company of Be Group, with a total investment value of VND739.5 billion ($31.2 million).

This investment will fortify Be Group’s financial capabilities and propel its continued robust development, supporting its goal of becoming the leading multiservice consumer platform in Vietnam.

The investment from a major financial institution like VPBankS reaffirms Be Group’s growth potential and provides additional resources in terms of corporate management and access to the capital market. Once the deal is completed, VPBankS will hold a minority stake and be the first institutional investor in Be Group’s parent company.

Industrial inventory-to-sales ratio rises to 87.5%

The inventory-to-sales ratio in the processing and manufacturing industry surged to 87.5% in 2023, up from 78.1% in the previous year, according to the Ministry of Industry and Trade.

The ministry’s data showed a persistent low industrial consumption index, indicating widespread challenges in the sector. Despite recent signs of improvement, an early 2023 slump in export orders led to an overall decline in demand for imported raw materials and production equipment throughout the year.

As a result, the total import turnover for 2023 decreased by 8.9% compared to the previous year, amounting to US$327.5 billion. The domestic economic sector contributed US$117.29 billion to this total, down 7.2% year-on-year. The import bill of the foreign-invested sector also fell by 9.8% from 2022 to US$210.21 billion.

Economist Dinh Trong Thinh attributed the increase in inventory to production-consumption misalignment. He pointed out that challenges in both manufacturing and exports resulted in a significant drop in the export volume of key products and a corresponding decline in essential markets.

The industrial processed goods exports declined by 5.5% from the previous year, with five out of seven key export items valued at over US$10 billion each experiencing declines within the industrial processing sector.

The ministry also reported an 8.4% reduction in the overall import turnover for goods crucial to year-end production, with essential components seeing double-digit contractions, including textiles (-11.1%), steel (-11.6%), plastic raw materials (-21.2%), and a substantial 58.3% decline in phone and component imports.

A notable trend in 2023 was a decrease in imports of controlled goods, with an 18% reduction totaling US$18.4 billion. This decline extended across several sub-groups, encompassing fruits, vegetables, confectionery, cereal-based products, scrap iron and steel, automobiles, gems, and metal products.

Exchange rate fluctuations set to carry on this year

While the most difficult times for exchange rates may be in the rearview mirror, the recovery path is uneven and caution is required.

The USD/VND exchange rate continued to experience a volatile year in 2023, although the amplitude was not as large as the second half of 2022.

The main factors affecting exchange rates last year were the fluctuations between interest rates, inflation, and growth, according to Ngo Dang Khoa, director of Foreign Exchange, Capital Markets and Securities Services at HSBC Vietnam.

Khoa said that weak economic growth, rapidly cooling inflation, and easing concerns about liquidity have made Vietnam’s policy priorities focus on supporting growth. This is in stark contrast to the United States, where the job market has not cooled and high inflation kept the Fed on a tightening bias for much of 2023.

“The USD had a year of many unexpected developments, especially in the final months when inflation continued to fall below the central bank’s target and global growth remained weak. The market is starting to see more of an interest rate cut in 2024, along with the Fed’s pivot in December, causing the USD to be weaker. This contributes to bringing the exchange rate back to the 24,250-24,350 price range and will likely close this year at this price,” Khoa said.

Economist Le Xuan Nghia said that forecasts cannot decide between global economic growth being flat or decreasing without a recession, or that there could be a slight recovery.

“The USD will depreciate and the exchange rate pressure on the VND will be moderate, except for unusual risks that may occur, such as rising raw material prices due to geopolitical conflicts and global energy prices increase. These problems make it difficult for inflation to return to the level desired by central banks in 2024 and global inflation may still remain at a level higher than 2.5 per cent. This may have a certain impact on Vietnam’s exchange rate, which will not be completely stable as desired. However, this fluctuation is not strong,” Nghia said.

Tran Thi Khanh Hien, director of Research Division of MB Securities Company, said that the risk of deterioration in asset quality will still be large in 2024. The industry-wide bad debt ratio in the third quarter of 2023 reached 2.2 per cent, an increase of 64 basis points compared to 2022 and is the highest level of bad debt since 2015.

“Almost all banks continue to record an increase in bad debt ratio in the third quarter of 2023 compared to the beginning of the year. On average, state-owned joint stock commercial banks have an increase of 0.4 per cent compared to the beginning of the year and this figure for private joint stock commercial banks is 0.7 per cent,” Hien said.

According to Hien, a 2023 circular on restructuring debt repayment terms and rescheduling debt has helped the bad debt ratio and the decline in bad debt coverage ratio decelerate.

“Therefore, we expect bad debt across the industry to increase slightly by 10-20 basis points and peak in the fourth quarter of 2023. In addition, using a large amount of provisioning in the first nine months of 2023 to handle bad debt also contributes to reducing bad debt of banks,” Hien said.

Although bad debt is expected to peak in the fourth quarter of 2023 and provision costs for the entire industry are showing a positive trend, Hien emphasised that the pressure on provisioning in 2024 is still significant.

“However, we believe that this pressure will have a clear differentiation among banks. Banks that have increased large provisions in 2023 and brought asset quality to a low level may have more room to handle and will therefore have the advantage of higher profit growth,” Hien said.

Vietnam’s 2023 rice exports set new record but miss target

Vietnam set a new record in rice exports in 2023, with over 8.1 million tons valued at US$4.7 billion, yet the results still undershot the target set by the Ministry of Agriculture and Rural Development.

In December, the country shipped 492,400 tons of rice, bringing in around US$339 million. These figures represented an 18% decrease in quantity and a 15.4% drop in value versus November.

Rice export volume in 2023 rose 14.4% year-on-year, while its value surged by an impressive 35.3% year-on-year.

Despite these positive figures, they did not reach the Ministry of Agriculture and Rural Development’s initial estimates of 8.3 million tons in volume and US$4.78 billion in value.

In an interview with The Saigon Times, the director of a major rice-exporting company in the Mekong Delta expressed concerns about the average export price of Vietnamese rice in 2023. Given the industry’s dynamics, the average export price stood at US$575 per ton, which was considered ineffective for many businesses in the sector as local prices surged, he said.

The Philippines remained the biggest buyer of Vietnamese rice, importing over 3.1 million tons in 2023. It was followed by Indonesia, China, and Ghana, with respective purchases of 1.15 million tons, 908,000 tons, and 576,000 tons, respectively.

Trade ministry revokes Hai Ha Petro’s business license

Hai Ha Petro, a major company in the petroleum sector, has had its business license revoked due to the improper use of the fuel price stabilization fund and unresolved tax debts.

The Ministry of Industry and Trade issued the decision to revoke Hai Ha Petro’s license on January 12. The company operates a network of agents and gas stations in several northern provinces and cities, including Hanoi, Haiphong, Quang Ninh and Thai Binh.

According to the findings of the Government Inspectorate, Hai Ha Petro was identified as one of the three major enterprises misusing the petroleum stabilization fund.

Additionally, the company owed environmental protection taxes amounting to billions of Vietnamese dong. As of the end of November 2023, the balance of the petroleum stabilization fund at this enterprise was VND612 billion.

To prevent supply disruptions in the market, the ministry has also requested Vietnam National Petroleum Group (Petrolimex), PetroVietnam Oil Corporation (PVOil), and Military Petrochemical Joint Stock Company (MIPEC) to ensure a stable fuel supply, especially during the Lunar New Year holiday.

Furthermore, on January 10, the ministry announced that it was considering revoking the license of Thien Minh Duc Company in Nghe An Province due to improper use of the fuel price stabilization fund and the declaration of environmental protection tax.

HCMC chapter of Amcham Vietnam has new chairman

Ramachandran A.S. (RamC), country officer for Citibank in Vietnam, has been elected chairman of the Board of Governors of the HCMC Chapter of Amcham Vietnam for 2024.

RamC arrived in Vietnam in 2021. He is a member of the leadership boards of both the Hanoi and HCMC chapters of AmCham Vietnam.

He has 29 years of corporate banking experience with Citi. Earlier, RamC held global and regional roles in Citi’s banking, capital markets, and advisory business.

Talking about his new role, RamC expressed great honor in assuming the position of chairman for the 2024 term of the HCMC chapter of Amcham Vietnam. He also highly valued the trust and support from the leadership team members.

“I look forward to forging a national effort, with all chapters of AmCham in Vietnam serving as one voice of American business, to advocate for policies and regulations that facilitate sustainable growth across all sectors,” RamC said.

The board also elected Winnie Wong, Country Manager of Vietnam, Laos, and Cambodia for Mastercard, vice chair of the HCMC Chapter of Amcham Vietnam.

Banks further cut deposit rates

Commercial banks have recently further lowered interest rates for deposits, with the lowest rates now hitting 1.7% per annum.

Vietcombank, one of Vietnam’s leading banks, has cut its deposit rates by an additional 0.1-0.2 percentage point across different tenors. Rates for one- and two-month deposits have decreased from 1.9% to 1.7% per annum, while rates for three-, six-, and 12-month deposits were also adjusted to 2%, 3%, and 4.7% per annum, respectively.

Similarly, VietABank has reduced its deposit rates by 0.1 percentage point for terms below 12 months. The new rates are now capped at 4.2% for terms ranging from one to five months, 5.2% for six to 11 months, and 5.5% for 12-month deposits.

In the first 10 days of 2024, more than 10 banks have decreased their deposit rates. Vietcombank has taken the lead in lowering rates and has consistently maintained the lowest rates in the market.

Despite the rate reductions, the amount of money deposited in this bank increased significantly by 12.1% to VND1.41 quadrillion in 2023.

According to the State Bank of Vietnam, the total amount of deposits in the banking system reached its highest level at the end of 2023, at VND13.5 quadrillion, a 14% increase compared to 2022.

Vietnam sees auto sales down 27.4% in 2023

Car sales last year plummeted by a staggering 27.4% year-on-year, with new vehicle purchases dropping from over 369,400 to 229,698 units.

Member companies of the Vietnam Automobile Manufacturers’ Association (VAMA) sold nearly 302,000 units in 2023, plunging by 25% year-on-year, according to data from VAMA.

In December, total auto sales among VAMA members spiked by 39% versus November to 38,740 units. Over 32,130 passenger cars were sold in the month, and 6,400 commercial vehicles and 200 special-use vehicles found buyers last month, jumping 43%, 20.5%, and 9% month-on-month, respectively.

Sales of locally assembled autos surged by 33% in December against the previous month to over 24,000 units. Sales of imported completely built-up (CBU) vehicles surged 49% to nearly 14,700 units.

The year-end rise in sales was attributed to the peak shopping season and a 50% reduction in registration fees for domestically assembled cars.

In all of 2023, VAMA members collectively sold 301,989 units, with sales of all segments – passenger, commercial, and specialized vehicles – declining by 27%, 16%, and 56% year-on-year, respectively. In specifics, 181,380 locally assembled cars and 120,600 CBU vehicles were sold, down by 20% and 32% compared to 2022.

Aside from the VAMA members, non-member automaker Hyundai Thanh Cong Vietnam Auto Manufacturing Corporation reported sales of 67,450 units in 2023. In total, the figure added up to 369,479 units sold nationwide.

These figures did not include sales from non-member brands such as VinFast, Audi, Jaguar, Land Rover, Nissan, Subaru and Volkswagen, as they have yet to publicize their sales data.

People over 40 account for nearly 30% of job cuts in HCMC

Around 48,000 people in HCMC claimed unemployment benefits last year and were aged above 40, according to the HCMC Employment Service Center. They accounted for around 30% of all those who made unemployment claims.

Director of the HCMC Employment Service Center Nguyen Van Thuc Hanh unveiled these figures on January 10. In 2023, the number of individuals seeking unemployment benefits increased by 10% over the previous year, primarily due to job cuts or career transitions.

Out of the 166,000 people who lost their jobs last year, 8% were under 24 years old, while the majority, 62%, were in the 25 to 40 age range. Notably, workers aged over 40 made up a significant 29% of the total.

In 2021, about 29,000 individuals in the 40-plus age group lost jobs, but this number rose to 40,600 in 2022 and 48,000 last year.

Apartment prices on the rise

Data reveals an ongoing upward trend in apartment prices in Hanoi and HCMC, particularly in central areas.

On the afternoon of January 12, the Ministry of Construction unveiled information about the real estate market for the fourth quarter of 2023 and the entire year of 2023. The data reveals an ongoing upward trend in apartment prices in Hanoi and HCMC, particularly in central areas.

Specifically, in Hanoi during the fourth quarter of 2023, apartment prices rose by 3.5-4.1 percent. In HCMC, several projects saw price increases ranging from 3.6 to 4.6 percent. There are scarcely any projects in the market catering to the affordable housing segment with prices below VND25 million per square meter, mainly focusing on mid-range apartments priced from VND25 million to VND50 million per square meter.

Regarding standalone houses, throughout 2023, prices in different regions show a consistent decline each quarter, with an overall decrease ranging from 10 to 14 percent compared to 2022. Notably, some areas experience substantial reductions, including Da Nang with a decrease of 13.1 percent, Hanoi with a decrease of 10.8 percent, HCMC with a decrease of 12 percent, Khanh Hoa with a decrease of 12.3 percent, and Dong Nai with a decrease of 10.9 percent.

However, the prices for villas and townhouses in Hanoi and HCMC remain elevated despite a low volume of transactions. In Hanoi, several projects have selling prices ranging from VND160 million to over VND300 million per square meter. In HCMC, the selling prices for villas and townhouses in some areas swing from VND140 million to over VND400 million per square meter.

Concerning office rentals, both Hanoi and HCMC have witnessed a trend of reduced rental prices, ranging from 9 to 22 percent compared to the previous quarter. Concurrently, the situation of vacating office spaces and the trend of relocating offices from central areas to surrounding regions have increased compared to the previous quarter.

In the tourism and resort real estate sector, both selling prices and transaction volumes are experiencing a continued decrease. There has been a significant reduction in the number of resort villas available for sale in the Southern region. Additionally, the quantity of tourist apartments offered for sale nationwide in 2023 has fallen compared to the figures observed in 2022.

Purchasing power for Lunar New Year forecast to increase by 10 percent

Tet holiday ( the Lunar New Year 2024) will approach in the next month, and purchasing power in the market for the special holiday is forecast to increase by 10 percent.

Stores and supermarkets in Hanoi and Ho Chi Minh City have begun to stock more commodities, and the supply of goods is abundant because the demand for sightseeing and shopping is heating up.

According to Deputy Minister of Industry and Trade Phan Thi Thang, localities such as Hanoi, Ho Chi Minh City, Dong Nai, and Ninh Thuan have followed the direction of the Ministry of Industry and Trade to issue plans for the implementation of the goods stabilization program during the Lunar New Year 2024.

In particular, localities urged producers, businesses and distribution enterprises to proactively prepare sources of goods to meet the demand for goods and services by individuals and households in localities. The program has brought Vietnamese goods to the countryside and the market stabilization program brings goods to people at stable prices.

According to the Ministry of Industry and Trade, although the economy is still difficult, but purchasing power during this year’s Tet holiday may increase by over 10 percent compared to the same period last year.

The supply of essential goods was also proactively prepared by businesses very early, with the amount of inventory increasing by 10 percent to 25 percent over the same period in the previous year. To stimulate domestic consumption, many businesses have plans to deploy promotions and discounts on many essential consumer products, especially in the months near the Tet holidays.

The Departments of Industry and Trade of Hanoi and Ho Chi Minh City have made efforts to work with many units to stabilize the market, organize promotion programs, and connect supply and demand, especially regional links with other provinces and cities to create a stable supply of goods in quantity, ensuring the best quality for the needs of these two large cities.

Big 4 banks represent 41.9% of total credit, 50% of total deposits

Vietnam’s four largest commercial banks – Vietcombank, BIDV, Agribank and VietinBank (the Big 4) – in 2023 accounted for 41.9% of total outstanding loans and about 50% of the total deposits of the country’s banking system.

According to the latest data from the State Bank of Vietnam (SBV), by December 31, 2023, credit increased by about 13.71% compared to the end of 2022, not significantly lower than the 14.18% increase of the previous year.

In 2023, credit had a slow increase in the first quarters, and even saw a decrease compared to the previous month in July. As of September 30, credit growth only reached about 7%.

However, credit began to slightly improve from the end of the third quarter and surged impressively in the last quarter thanks to drastic efforts in credit growth management by the SBV.

Contributing a significant part to the credit growth of the entire economy in 2023 were the efforts of the Big 4 banks, which are four State-owned banks with total assets, deposits, loans and profits that always lead the country’s banking system.

Accordingly, the Big 4 banks pumped a total of more than 684.8 trillion VND into the economy in 2023, equivalent to 41.9% of the outstanding loans of the entire economy. The largest contribution belonged to BIDV, with nearly 255.8 trillion VND, corresponding to credit growth of 16.66%.

VietinBank followed with credit growth of 15.6%, equivalent to nearly 200 trillion VND.

Vietcombank and Agribank recorded lower credit growth rates of 10.6% and 7.4%, respectively, equivalent to nearly 122.6 trillion VND and 106.8 trillion VND, respectively.

In 2023, the raised capital of the Big 4 banks increased by 13% or nearly 778.9 trillion VND against the previous year to 6.7 quadrillion VND.

As the majority of raised capital is in the form of deposits, it can be estimated that the Big 4 banks accounted for about 50%, or 13.5 quadrillion VND, of the total deposits of the entire economy by the end of 2023.

Specifically, BIDV in 2023 raised total capital of 1.89 quadrillion VND, an increase of 16.4% compared to the end of 2022, surpassing Agribank to lead the Big 4 group.

Agribank dropped to the second position in terms of capital raising, with 1.88 quadrillion VND, up 9.8% against the previous year.

The remaining giants VietinBank and Vietcombank in 2023 raised 1.52 quadrillion VND and 1.41 quadrillion VND, respectively, an increase of 13.7% and 12.9% compared to 2022.

Indonesia President visits VinFast EV manufacturing complex in Hai Phong

Indonesian President Joko Widodo on January 13 made a field trip to VinFast electric vehicle manufacturing complex in the northern port city of Hai Phong as part of his state visit to Vietnam.

After visiting the electric automobile manufacturing factory there, the President pledged to create conditions for VinFast, a subsidiary of private conglomerate Vingroup, to complete procedures to invest and do business in the Indonesian market.

Earlier, the EV maker said it plans to invest at least 1.2 billion USD in Indonesia in the long-term. Apart from distributing imported cars from Vietnam in the first phase, VinFast will build a 200-million-USD EV factory in the country with an expected annual capacity of 30,000 – 50,000 vehicles.

Earlier the same day in Hanoi, President Widodo and Prime Minister Pham Minh Chinh met with representatives of businesses operating in the respective markets, where they were reported that VinFast and GSM, which offers VinFast electric car and motorbike rental and taxi services, and PT GoTo Gojek Tokopedia Tbk, an Indonesian technology company, have signed a MoU aiming to promote green transport in Indonesia.
 
GSM is also planning to invest 900 million USD in Indonesia in the coming time.

Swiss-Viet Economic Forum makes debut

The Swiss-Viet Economic Forum (SVEF) made its debut at a ceremony held on January 12 in Zurich city, aiming to foster collaboration, innovation, and sustainable growth between Vietnamese and Swiss enterprises.

SVEF Chairman Philipp Rösler said the forum’s target is to create a platform that not only helps improve mutual understanding but also promotes deep interactions and innovation partnership between Vietnam and Switzerland. It is not only a venue for individuals and businesses of the two countries to gather but also a place to incubate ideas, collaboration and transformational projects, thereby helping to bring mutual benefits to the two countries, he added.

Addressing the launching ceremony, Vietnamese Ambassador to Switzerland Phung The Long lauded the significance of the event and expressed his hope that there will be more effective activities to unlock the potential of the two economies.

With the support of relevant governmental agencies, regional and city officials, as well as the embassies of the two countries, the SVEF will organise annual events, thus cultivating success for bilateral economic cooperation, the diplomat said.

Home loans expected to drive retail credit growth in 2024

Home loans will be a driver for retail credit growth in the near future as interest rates keep cooling down and the real estate market recovers from the second half of 2024, analysts predicted.

In a recent report, analysts from Vietcombank Securities Company (VCBS) said they expected a recovery of the real estate market from the second half of this year when the actual demand for buying houses to live in is still high and the need for property investment increases again.

Retail credit is decelerating as demand for consumer loans, home purchases, car purchases and property investments all decline. The proportion of retail credit of total outstanding loans decreased from 47% at the end of 2022 to 46% at the end of the third quarter of 2023.

According to VCBS, home loans have been the main growth driver for many years with a five-year compound annual growth rate (CAGR) of 26%. However, growth slowed in 2023 due to high interest rates and a frozen real estate market. At the end of the third quarter of 2023, outstanding home loans decreased by 1 percentage point over the same period of the previous year, accounting for 13.8% of total outstanding loans.

VCBS forecasts loans for real estate and construction enterprises will continue to increase rapidly, but there will be a differentiation in capital access between real estate segments and enterprises in the market. Specifically, credit will focus on the affordable real estate segment that serves real housing needs, industrial parks and transportation infrastructure construction.

However, part of the credit will be disbursed to real estate enterprises, which face financial difficulties, for the purpose of debt restructuring.

VCBS reported that by the end of the third quarter of 2023, outstanding loans to real estate enterprises and construction sector loans of credit institutions increased by about 13.4% since the beginning of the year, higher than the credit growth of the entire banking industry. The two types of loans accounted for 7.7% and 8.3% of the entire banking industry’s total outstanding loans, respectively.

According to experts, after a period of tightening credit for real estate enterprises, banks have begun to promote disbursement to real estate developers, because the real estate market has shown signs of recovery in the wake of declining interest rates and the Government’s legal support under Resolution 33/NQ-CP 2023 and Circular No. 10/2023/TT-NHNN on solutions to remove difficulties for the development of real estate market.

Banks have also increased lending to meet the increasing demand of real estate enterprises in the context of decreasing interest rates and an unfavourable corporate bond environment.

Mechanisms needed to manage heritage urban areas: insiders

A set of specific criteria and mechanisms are needed for localities to make planning schemes and handle the relations between modernisation and urban heritage preservation in the process of urbanisation, insiders said.

Pham Phu Ngoc, Director of the Hoi An Centre for Cultural Heritage Management and Preservation in the central province of Quang Nam, noted that the ancient city is managing its heritage properties in the status of a heritage urban area.

The city is home to more than 1,400 classified relic sites, including 27 at the national level, 49 at the provincial level and 1,330 at the municipal level, he said. The restoration has been conducted regularly through joint efforts by local authorities and residents.

Yet a number of relevant regulations do not match the actual conditions in Hoi An, which has hindered the work, he pointed out, elaborating that it takes time to complete procedures for the restoration of national and special national relic sites.

Meanwhile, the northern province of Ninh Binh, home to 1,821 relic sites, including the UNESCO-recognised Trang An Landscape Complex; and the former imperial capital of Hoa Lu, the Trang An-Tam Coc-Bich Dong natural scenic site, and the Non Nuoc mountain site which have won the special national status.

Like others, the Hue imperial relic site in the central province of Thua Thien-Hue also needs distinct mechanisms to restore, preserve and promote its heritage values amid the rapid urbanisation.

Besides, ancient cities, towns and villages like Hue and Hoi An, which have been included in the Organisation of World Heritage Cities (OWHC), have also attracted crowds of tourists.

However, no legal documents have been issued so far stipulating heritage urban areas.

Chairman of the People’s Committee of Ninh Binh province Pham Quang Ngoc said the evaluation and recognition of urban heritage values would create a foundation for urban areas to carry forward their potential effectively and sustainably.

Experts said it is necessary to soon specify the term “heritage urban area” and add it into a chapter of the law amending and supplementing the Cultural Heritage Law 2009 in order to meet heritage management requirements.

Guangdong-Hong Kong–Macao Bay Area Entrepreneurs Alliance launches three country chapters in ASEAN

The launching ceremony of Three Country Chapters in ASEAN of the Guangdong-Hong Kong-Macao Bay Area Entrepreneurs Alliance took place in Ho Chi Minh City on the evening of January 12.

The event was chaired by Dr. Jonathan Choi, Chairman of the Guangdong-Hong Kong-Macao Bay Area Entrepreneurs Alliance, Chairman of the Hong Kong-Vietnam Chamber of Commerce and Chairman of Sunwah Group (Hong Kong).

Guests attending the event included Mr. Nguyen Van Loi, Member of the Party Central Committee, Secretary of the Binh Duong Provincial Party Committee and Head of the Binh Duong National Assembly Deputy Delegation.

The event attracted the participation of more than 300 guests who are senior leaders and experts from various business associations, investment funds and large enterprises in Vietnam as well as the Guangdong-Hong Kong-Macao Greater Bay Area (“GBA”), to promote international economic exchange and cooperation between GBA and Vietnam.           

Speaking at the opening of the event, Dr. Jonathan Choi said, “The Guangdong-Hong Kong-Macao Bay Area (GBA for short) stands as a beacon of strategic development at the national level in China, representing a commitment to regional integration and coordinated development. With a staggering population of 86 million and a regional GDP of 1,943 billion USD in 2022, this vast market is five times the GDP of Hong Kong, contributing over 10% to the nation’s overall GDP. The Greater Bay Area not only ranks among the fastest-growing regions in China but also boasts capabilities comparable to developed countries worldwide.”

He also shared that Vietnam, with its strategic geographical location, has always been an attractive destination for Chinese investors in recent years. ASEAN has long been China’s largest trading partner. In 2022, trade between the GBA and ASEAN reached 1.4 trillion USD, an increase of 11.8% over the same period last year and accounting for 22.6% of the GBA’s total international trade turnover. Furthermore, direct investment from the GBA into ASEAN soared to 17.9 billion USD, up 13.1% year-on-year. This is a very brilliant achievement in the context of global economic recession.

Therefore, Dr Choi also expressed a hope that the launching of four chapters of the Guangdong-Hong Kong-Macao Bay Area Entrepreneurs Alliance in three Southeast Asian countries, including Hanoi and Ho Chi Minh City, not only represents an important milestone for friendship and partnership between GBA and ASEAN, but also contributes even more to common prosperity and progress.

Director of the Hong Kong Economic and Trade Office in Singapore Owin Fung, also shared about Hong Kong’s strengths as one of the most important cities in the GBA along with the new policies that Hong Kong is implementing to promote economic, trade, tourism, education, financial cooperation between Hong Kong and Southeast Asia, especially Vietnam.

Addressing the event, Deputy Director of the Investment and Trade Promotion Centre Cao Thi Phi Van said: “We have found many similarities between HCMC and the GBA, both of which possess dynamic and inclusive industry landscapes, large and wealthy local consumer bases, and the ability to attract highly skilled talent, and more importantly, both are considered as one of the most investor-friendly regions of the two countries”.

In his role as Executive Vice President of the Guangdong-Hong Kong-Macao Bay Area Entrepreneurs Alliance and Regional Director of Sunwah Group in ASEAN, Jesse Choi also shared that “Since the 1970s, Sunwah Group has been present in Vietnam and we thrive alongside Vietnam’s ascent. Our achievements are recognised through many key projects such as: Sun Wah Tower, Saigon Pearl, Sunwah Pearl, investment into VinaCapital or our coffee business. At the same time, we have also actively promoted the connection of GBA and Vietnam businesses through a wide range of business events in Hanoi and Ho Chi Minh City during last few years, including sponsoring the launching ceremony of four chapters in three Southeast Asian countries of the Guangdong-Hong Kong-Macao Bay Area Entrepreneur Alliance today.”

These chapters will play an important supporting role for Greater Bay Area businesses to expand and strengthen their presence in Southeast Asia, especially Vietnam, while also providing more information about the Greater Bay Area to local businesses. According to him, the Guangdong – Hong Kong – Macao Bay Area Entrepreneurs Alliance plans to organise business events and facilitate business cooperation with a keen focus on emerging areas such as: technology and innovation, e-commerce, logistics, financial services, manufacturing, trading and infrastructure development, thereby promoting sustainable economic growth and innovation in the region.

Also within the framework of the ceremony, the Guangdong-Hong Kong-Macao Bay Area Entrepreneurs Alliance respectively signed Memorandums of Understanding with the Ho Chi Minh City Young Business People Association, Hong Kong Business Association Vietnam, Canton Business Association Vietnam, China Business Association Ho Chi Minh branch and the Malaysia Business Chamber Vietnam, to strengthen partnership relations, promoting member businesses to exchange and seek business cooperation opportunities in the GBA and Vietnam.

 Chairman of Sunwah Group Dr. Jonathan Choi presents certificates to the four chapters of the Guangdong-Hong Kong-Macao Bay Area Entrepreneurs Alliance in three Southeast Asian countries.

The guests attending the ceremony also witnessed the signing of a Memorandum of Understanding and a Framework Agreement on Cooperation signed respectively by Sunwah Group with partners in Vietnam, including KinhBac City Development Holding Corporation and NaFoods Group. The content of the agreements revolves around the two sides agreeing to implement and support each other on cooperation in a number of key areas such as energy, trade, industrial and urban real estate in Vietnam.

It is known that the Guangdong-Hong Kong-Macao Bay Area Entrepreneurs Alliance was established in 2017 by leaders of industry and commerce in 9+2 cities in Guangdong, Hong Kong and Macao. The Alliance’s presidium members are representatives of outstanding businesses from major chambers of commerce in Guangdong, Hong Kong and Macao, the Federation of Hong Kong Industries and leaders of Chinese Chambers of Commerce in many countries. Members of the Alliance’s presidium include leaders from famous businesses such as Tencent, Amer International Group, Huaxun Fangzhou, as well as other businesses in the ASEAN region, Japan, Korea, the United Kingdom, Australia, Canada, etc. The alliance’s launch of four chapters in three Southeast Asian countries is one of the important milestones, demonstrating the commitment to efforts to promote multi-disciplinary development cooperation in the region, as well as creating a premise for implementing upcoming practical cooperation projects between the parties.

Deposit rates at Vietcombank lowest among banking system

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) continued slashing deposit interest rates on January 12, with the lowest standing at 1.7% per year.

Cutting interest rates by 0.1 – 0.2% per year, Vietcombank reduced the rate for one- and two-month deposits to 1.7% per year from 1.9% per year.

Likewise, the rate for three-month deposits was brought down to 2% per year and for six- and nine-month ones to 3% per year.

The highest interest rate, applied to 12-month and longer terms, at this bank was also cut from 4.8% per year to 4.7% per year.

The deposit interest rates at Vietcombank are currently the lowest among the Big 4, the four biggest State-owned commercial banks, as well as the banking system.

Earlier, the Vietnam Bank for Agriculture and Rural Development (Agribank), another in the Big 4, also lowered the rate for one- and two-month deposits from 2.2% per year to 2% per year.

Interest rates for all deposit terms remain unchanged at the other two, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), on January 12.

VNDIRECT Securities JSC forecast interest rates for 12-month deposits will be kept at low levels, about 5% per year from the end of 2023 until the end of 2024. Given this, it expected lending interest rates will also continue the downward trend as a result of falling capital costs recently.

Economic expert Assoc. Prof. Dr. Dinh Trong Thinh perceived that deposit rates are unlikely to go down further this year, but there remains room for lending rates to reduce more. When production and business activities get better and capital demand increases, bank interest rates may bounce back accordingly.

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