VIETNAM BUSINESS NEWS OCTOBER 19

First Vietnam Blockchain Summit opens

The Vietnam Blockchain Summit 2022 officially opened in Hanoi on October 19.

Organised for the first time by the Vietnam Software Association (VINASA) and the Vietnam Blockchain Association, the two-day summit is drawing great attention from both domestic and international tech firms.

Among new technologies strongly affecting the world’s changes, blockchain is getting more popular, as it is applied in almost all fields and sectors.

Phan Duc Trung, Vice President of the Vietnam Blockchain Association, said the summit will help boost technology connections and contribute to the development of the digital economy.

It will give participants an insight into Vietnam’s blockchain industry as well as policies domestic and foreign firms need to follow while developing business models applying blockchain technology in the country.

Speakers are expected to share approaches to blockchain technology of leading technology companies, new solutions, and stories of integrating blockchain into products to bring new value to users.

Among the top 200 companies operating with blockchain technology in the world, more than 10 were founded by Vietnamese. Vietnam is one of the top five blockchain countries and currently has more than 10 startups in this field with a combined capital of more than 100 million USD.

According to a report by MaketsandMarkets, domestic blockchain-related market will reach a value of nearly 2.5 billion USD in 2026, increasing nearly five folds compared to that in 2021.

US Department of Commerce to examine Vietnamese wood exporters

The US Department of Commerce will head to Vietnam to inspect a number of wood exporters, spending up to 10 days in the country.

Ngo Sy Hoai, vice chairman of the Vietnam Timber and Forest Products Association, told VIR that on October 16, 2022, a United States Department of Commerce (DoC) investigative committee visited several wood enterprises in Vietnam.

He said the DoC team would separate into two groups and spend 7-10 days doing on-site inspections of 40 enterprises that perform well and 36 businesses that the DoC deems uncooperative. The DoC picked the businesses at random for inspection.

According to the Trade Remedies Department of the Ministry of Industry and Trade (MoIT), Vietnam’s wood industry faces two DoC anti-trust investigations involving plywood goods and wood cabinets.

In the instance of anti-trust plywood goods constructed from hardwood imported from Vietnam, the US side has reached a preliminary finding, and a final decision is due on October 17.

Thirty-six businesses did not completely participate in the preliminary inquiry and conclusion, presenting conflicting information. The remaining businesses that can produce documentation that they do not utilise Chinese raw materials (representing 80 per cent of the plywood export turnover during the investigation period) will still be approved to export to the US and not be charged an anti-circumvention tax.

In a second instance, in June 2022, the DoC continued to launch an inquiry into the tax evasion of Vietnamese-imported wooden and kitchen cabinets. Forty of the businesses asked to provide opinions did so after the deadline.

The Trade Remedies Authority of Vietnam said that, it had collaborated with wood organisations to encourage enterprises to assist in investigations and provide comprehensive and correct information.

The export of Vietnamese furniture to the US is decreasing. According to the Vietnam Industry and Trade Information Centre, the export turnover of wood and wood products to the US market during September was $607 million, a decrease of 11 per cent compared to August but an increase of 73.4 per cent compared to the same month in 2021.

In the nine months of 2022, the export value of wood and wood products to the US was assessed at $6.9 billion, an increase of 2.4 per cent compared to the previous year.

Thu Thiem 4 Bridge to be built under BOT format

The HCMC Department of Transport has decided to develop a fourth bridge spanning the Saigon River and leading to Thu Thiem Peninsula under the build-operate-transfer (BOT) format. The project will be carried out in the 2024-2028 period.

The Transportation Works Construction Investment Project Management Authority and relevant agencies have been required to complete the investment plan for the Thu Thiem 4 Bridge project.

The Department of Natural Resources and Environment and relevant units have been assigned to provide information and legal documents related to the land planning and relocation plan of the ports on the Saigon River to speed up site clearance.

With an estimated cost of roughly VND5.3 trillion, Thu Thiem 4 will connect the Thu Thiem new urban area, District 7 and Thu Duc City.

The bridge is designed to ease traffic congestion between the city center and its southern districts as well as accelerate the growth of the new urban areas.

Thu Thiem 4 will be nearly 2.2 kilometers long and 28 meters wide, with six lanes and two pedestrian sidewalks.

It is expected to be in service for up to 100 years with a design speed of 60 kilometers per hour and the capacity to withstand 7-magnitude earthquakes.

At first, the city planned to call for investment under the build-transfer model. After the central Government removed this model from the PPP Law, the investment plan needed to be changed, causing delays to the project’s implementation.

Quang Nam seeks to develop community-based tourism

My Tay Commune of Nui Thanh District in Quang Nam Province, home to dozens of langurs in the international Red Book, is seeking to develop community-based tourism combined with the sustainable development of biological diversification and improvement of local residents’ livelihoods.

According to the local authority and experts at a conference on sharing and orienting sustainable community-based tourism development in Tam My Tay Commune a few days ago, the grey-shanked douc langur with the scientific name Pygathrix cinerea is a rare and precious primate of Vietnam.

Tam My Tay Commune, with over 30 ha of natural forest, is currently home to 69 langurs.

A project entitled “Sustainable development of community-based tourism in Tam My Tay Commune”, funded by the EU National Institutes for Culture – EUNIC and Vietnam – Goethe- Institut through GreenViet, was recently launched to support the locality to develop community-based tourism in combination with the protection of wildlife animals and langur individuals.

If langur and wildlife animal sightseeing tours combined with community-based tourism are executed effectively, this model will help the local residents improve their livelihoods and develop sustainable community-based tourism.

The community-based educational tourism model will be an appropriate next step for the locality in terms of tourism, said a representative of a local tourist company.

According to Le Quoc Viet, a Quang Nam Tourism Association representative, encouraging local and international students to participate in this educational tourism model will support Quang Nam’s tourism ecosystem, adding to the demand for educational tourism and experience travel in the province.

However, exploiting tourism and protecting langurs simultaneously is not simple.

The success of sustainable community-based tourism needs a policy, workforce, professional development and detailed management plans, apart from frequent and sustainable working with the community.

Community-based tour participants in one week need to be estimated to avoid spontaneous tourism. And more importantly, promoting and conveying a sustainable message to tourist companies and tour agents is important in developing this tourism model, advised the foreign expert.

The project, “Sustainable development of community-based tourism in Tam My Tay Commune”, approved by Quang Nam Province’s Department of Planning and Investment on July 29, 2022, aims to preserve the grey-shanked douc langurs, improve residents’ livelihoods and use appropriate resources through community-based tourism in Tam My Tay Commune.

Ministry asks oil refineries to expand capacity, fuel traders to increase import

The Ministry of Industry and Trade (MoIT) has recently issued Document No.6327 to Nghi Son Refinery and Petrochemical LLC and Binh Son Refining and Petrochemical Joint Stock Company, requesting them to maintain stable production activities and increase the maximum capacity so that they can supply petroleum to the domestic market.

The MoIT also requires the two oil refineries to take measures to support the fast delivery of petroleum products to enterprises that have ordered goods under signed contracts, use petroleum reserves to supply for fuel wholesalers who did not sign contracts with the refineries, and at the same time, sell petroleum in areas with local shortages to promptly replenish supplies for retail gas stations.

Regarding the developments of the petroleum market, according to the MoIT, currently, domestic petroleum sources account for 70-80 percent, and imports account for 20-30 percent. However, recently, the fuel supply from abroad to Vietnam has faced many difficulties.

In the third quarter of 2022 (by September 20), the import volume decreased by about 40 percent for gasoline and 35 percent for diesel oil compared to the second quarter of 2022; only 19 out of 33 key fuel traders imported petroleum. Some key fuel traders often import petroleum products in large quantities but did not import them in the third quarter of 2022. It is also one of the reasons leading to a recent shortage of petroleum products at some petrol agents and retail gas stations.

To ensure supply during the peak time at the end of the year, the MoIT said that it was urgently developing policies to support and facilitate petroleum businesses in terms of credit limit, preferential interest rates, and foreign currency sources to help them reduce financial costs and increase resources to import and buy gasoline from domestic and foreign suppliers.

Vietnam’s political, business environment stable: Russian newspaper

The role and position of Vietnam in the world politics and economy was highlighted in an article published by Russia’s Independent newspaper on October 17. 

In his article, Grigory Trofimchuk highly valued the role played by Vietnam in particular and ASEAN in general, in efforts to promote Russia’s “Look East” policy amid strong volatilities in the world.

After Vietnam completed its role as a non-permanent member of the United Nations (UN) Security Council, it was immediately elected to the UN Human Rights Council for the 2023-2025 tenure, the article said. 

According to Trofimchuk, Vietnam has a stable political and business environment, with many incentives and benefits for foreign investors, including those from Russia. 

Russia needs to show clearer its role in solving problems in Asia-Pacific, and Southeast Asia in particular, in the process of “turning to the East”, the article stressed, adding that Vietnam is a potential partner for this scheme.

Vietnamese Trade Counselor in US gives positive view on two-way trade prospects

Amid the general economic situation still enduring numerous difficulties caused by the impacts of the COVID-19 pandemic and supply chain disruptions, bilateral trade turnover between Vietnam and the United States has still maintained its positive growth momentum.

Do Ngoc Hung, trade counselor of Vietnam in the US, made the statement in a recent media interview regarding trade promotion activities between the nation and the US over recent times.

Statistically, the past nine months of the year, witnessed two-way trade turnover reach roughly US$96.2 billion, up 20% over the same period from 2021, accounting for 17.2% of total Vietnamese import and export turnover with countries at US$558 billion. Of the figure, export turnover reached US$85.1 billion, up 23.7%, making up 30% of the country’s total export turnover over the past nine months.

The US is currently the nation’s second largest trading partner and largest export market, whilst Vietnam represents the fifth largest trading partner of the US. In terms of exports, the country ranks sixth for total exports to the US, accounting for about 4% of total US imports from partners.

Vietnamese export turnover to the US continues to maintain its upward trend, leading to a large trade surplus which reached US$74 billion this year, ranking third behind China and Mexico. Indeed, there is a significant focus on commodities such as garments and textiles, footwear, timber and wood products, aquatic products, farm produce, as well as machinery, equipment and spare parts.

In line with this, the Ministry of Industry and Trade directed the Trade Office in the US to continue discussing market research-related issues and work alongside relevant US agencies as a means of dealing with pending issues to ensure the interests of businesses.

Furthermore, the Trade Office also supports the provision of US business verification information as a means of supporting Vietnamese firms.

The Trade Office will continue to ramp up efforts aimed at protecting the interests of Vietnamese enterprises, remove difficulties faced by Vietnamese exporters, and continue to hold dialogues with the US on the market economy as part of anti-dumping investigations.

Moving forward, the Trade Office will co-ordinate alongside relevant units as part of efforts organise the Vietnam – US Trade Forum 2022 in November in Ho Chi Minh City. The event will be chaired and co-ordinated by the Ministry of Industry and Trade in collaboration with the US Embassy in Vietnam, the US-ASEAN Business Council (USABC) and the Oregon State administration.

November will then see the Trade Office co-ordinate with the Vietnam Federation of Trade and Industry to organise a trade connection with about 40 businesses as part of efforts to explore the market and find partners in in the areas which the nation boasts export strength in.

Referring to Vietnamese strengths when entering the US market, Ngoc Hung said that the close Vietnam – US comprehensive partnership, as well as the organisation of high-level visits and meetings between the two countries, serves to create an important foundation for the development of bilateral economic and trade relations.

Furthermore, the policy dialogue mechanism through the Vietnam-US Trade and Investment Framework Agreement (TIFA) Council has been effectively implemented, thereby helping to resolve many thorny issues in economic and trade relations.

Moreover, trade conflicts, geopolitics, as well as inflation, will help Vietnamese goods increase their market share, filling the gap left by Russian and Chinese goods in the US.

The Trade Office will strive to promote the export of products that the country can replace amid a shortage of supply from the global supply chain such as agricultural products, consumer goods, iron, and steel. It will continue to work alongside US partners and propose that they facilitate marking opening for Vietnamese agricultural exports.

Regarding challenges and difficulties, Ngoc Hung said that legal and technical barriers to trade are also major difficulties faced by Vietnamese businesses.

The US is renowned for having a complex legal system and many technical barriers to trade. Recent years have seen Vietnamese enterprises often face difficulties in terms of labour and environmental standards when exporting goods to this market.

The US therefore continues to apply numerous measures and trade barriers in which to protect domestic production. When exporting goods to the US, businesses also face difficulties in relation to costs and requirements on the standard of an enterprise.

According to Ngoc Hung, Vietnamese enterprises must take advantage of the Vietnamese community based in the US. According to the results of the “Study on the American Community” conducted by the US Government, there are about 1.5 million Vietnamese residing in the North American country, accounting for about 10.5% of the total number of Asian Americans, which is the fourth largest community after China, India, and the Philippines.

In order to convince US importers who are importing from their familiar partners in other countries to switch to importing Vietnamese goods, local businesses must continue to improve the quality, pattern, and design of products, Ngoc Hung added.

HCMC and Hanoi see rising recruitment demand

The labor markets in HCMC and Hanoi are expected to pick up in the rest of the year due to year-end manufacturing needs, according to market research agencies.

The key expanding recruitment demand by the end of the year includes sales, information technology, marketing, finance, accounting and audit, according to the HCMC Center of Forecasting Manpower Needs and Labor Market Information.

Meanwhile, the number of jobseekers will also rise, particularly in sectors of environmental safety, insurance, real estate, chemistry, biochemistry and human resources, among others.

In the January-September period, some 241,000 workers were hired in HCMC, increasing by 36.18% compared to 2021.

The number of jobs created was 107,000, soaring by 30.9% year-on-year.

HCMC is expected to need between 69,500 and 77,100 workers in the coming months, with high demand for production for the Lunar New Year holiday, or Tet.

Roughly 89% of businesses plan to recruit more employees in the wake of the economy’s recovery.

In Hanoi, some 168,000 workers were hired between January and September. There were 3,638 people working under contract overseas, according to data from the Hanoi Department of Labors, War Invalids and Social Affairs.

In the rest of the year, the recruitment demand mainly lies in commercial service, manufacturing, electronics, textile footwear, construction and healthcare, according to the Hanoi Center of Employee Service.

The unemployment rate in HCMC and Hanoi was 0.25% and 0.53% in the third quarter, respectively, according to the General Statistics Office of Vietnam.

Some 24% of the Top 500 Vietnam Best Employers reportedly made considerable improvements in labor welfare policies, while almost half of the list just slightly changed theirs.

Some 17.8 million individuals were officially employed as of the third quarter of the year, increasing by 642,800 people compared to the previous quarter, up 3.8%.

The number of workers aged 15 and over rose by 255,200 to 50.8 million.

Vietjet Air launches new routes link Da Nang with Mumbai, New Delhi

Budget carrier Vietjet Air launched new flight services linking the central city of Da Nang with India’s Mumbai and New Delhi with a ceremony at Da Nang International Airport on October 18.

There will be three flights each week using Airbus A320 on the Mumbai – Da Nang route every Monday, Wednesday and Friday and four flights a week on the New Delhi-Da Nang route every Tuesday, Thursday, Saturday and Sunday.

Da Nang will hold a ceremony welcoming the first flight from New Delhi on October 19, following another from Mumbai that landed in the city early October 18.

VietJet Air also plans to open a direct flight connecting Da Nang with Ahmedabad this December.

FPT invests in LTS Inc., strengthening consulting capabilities in Japan

FPT has announced an investment in the Japanese business consulting services provider LTS Inc, becoming a strategic shareholder.

The investment is expected to help FPT strengthen its capabilities in Japan’s consulting industry and target more double-digit million-dollar deals.

LTS Inc is a Japan-based company specialising in delivering business process management, consulting services, and digital transformation solutions. As a part of FPT’s ecosystem, LTS Inc will join with other subsidiaries to provide consulting services to existing and new customers. 

According to the agreement, the focused fields include ERP-related services, low-code development-related services, and business management-related services.

Vietnamese logistics businesses seek cooperation chances in Germany

A delegation of nearly 30 Vietnamese logistics businesses participated in a trade promotion programme in Germany from October 11-18 to seek potential partners.

The programme, held by the Ministry of Trade and Industry and the Vietnamese Embassy in Germany, comprised events in major cities and states in Germany, including Frankfurt, Düsseldorf, Duisburg, Cologne, Hamburg, Berlin and Leipzig. 

In Düsseldorf, the capital of Nordrhein-Westfalen (NRW) state, a roundtable on Vietnam-Germany logistics cooperation attracted many local officials.

Astrid Becker from NRW. Global Business said German logistics companies are interested in the Vietnamese market, which they consider one of the five priority markets in Southeast Asia.  

In Hamburg, the Vietnamese business delegation engaged in a working session with the city’s leaders and representatives from the German Asia-Pacific Business Association (OAV) and Hamburg port.

The delegation also held discussions with MBS Logistics GmbH in Cologne on collaboration in railway and aviation transport.

They were arranged to tour some logistics hubs such as Hamburg port, the railway logistics centre at Duisburg, cargo handling centre at Cologne–Bonn and Halle airports, Amazon Leipzig and Leipzig Exhibition Centre.

Meet & Greet strengthens Vietnam – Belgium links

A “Meet & Greet” programme designed to create a network of Vietnamese and Belgian businesses has presented ample opportunities for the two countries’ businesses, especially those specializing in food and beverage, to strengthen cooperation, said Andries Gryffroy, first vice president of the Belgian Senate.

Gryffroy made the statement during the “Meet & Greet” event which was co-hosted by the Vietnam Trade Office in collaboration with the Belgian-Vietnamese Alliance (BVA) and the Federation of the Belgian Food Industry (FEVIA) on October 18.

The senator emphasised that with the benefits brought about by the EU-Vietnam Free Trade Agreement (EVFTA), Belgian enterprises have contributed to ensuring stable trade exchanges with and improving the investment climate in Vietnam.

He went on to affirm that the trade deal has created a wealth of opportunities specifically for the import and export of Vietnamese and Belgian goods, especially with regard to Vietnamese agricultural products which have enjoyed comparative advantages thanks to tax incentives on offer.

In response, Vu Ba Phu, director of the Vietnam Trade Promotion Agency (Vietrade), revealed that Vietnamese businesses participating in the event include those operating in the fields of processed food, agricultural products, garments and textiles, footwear, and furniture, all of which are competitive products within the EU market thanks to tariff reductions under the EVFTA.

The event has provided an ideal venue for Vietnamese firms to meet European partners and boost the export of their products following a two year hiatus caused by the COVID-19 pandemic, he said.

Within the framework of the scheme, Vietnamese Ambassador to Belgium Nguyen Van Thao held a direct exchange with business representatives, stating that the EU makes up a potentially lucrative market for Vietnamese exporters due to its huge market of 450 million consumers and a GDP growth rate reaching over EUR16 trillion.

Furthermore, the strategic partnership agreement relating to agriculture between Vietnam and Belgium signed in 2018 has also provided fresh impetus for Vietnamese  agricultural products to enter the Belgian market.

During the event, Vietnamese business representatives were provided with information about the EU’s import and export regulations, as well as the consumption needs of Belgians and Europeans, in order to export suitable products in the future.

Vietnam International Woodworking Industry Fair kicks off in HCM City

The 14th International Woodworking Industry Fair (VietnamWood 2022) and the Vietnam International Furniture Accessories, Hardware & Tool (Furnitec 2022) exhibition officially opened on October 18 in Ho Chi Minh City following a pause due to the COVID-19 pandemic.

The two prestigious trade fairs have attracted the participation of several of the world’s leading manufacturers, showcasing their innovative supply chains, cutting-edge technologies, as well as future development trends.

According to details given by organisers, the exhibitions have gathered more than 250 world-class suppliers from 25 countries and territories from around the world. Indeed, popular global brands from Austria, Canada, France, Germany, Russia, Taiwan (China), and the United States including Homag, Michael Weinig, SHODA, DIEFFENBACHER, LEITZ, JOWAT, SCM, Biesse, NANXING, LEADERMAC, IMOS, Cabinet Vision, Felder, JAF, HAFELE, BLUM, and Vetta are taking part in the event.

VietnamWood 2022 and Furnitec 2022 are scheduled to run through to October 21.

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