Tax authorities will employ digital technology to process tax returns, accelerating the delivery of refunds in the fourth quarter of 2023.

That remark was made by Mai Sơn, Deputy Director-General of the General Department of Taxation, at a press conference by the Ministry of Finance on Thursday.

Sơn said the delivery of tax refunds was sluggish over the past few years because tax papers had been processed manually. But everything would change in the fourth quarter as the department was working on a scheme to use cutting-edge technology to improve efficiency.

Regarding Samsung Electronics HCMC CE Complex, which claimed a tax refund of over VNĐ500 billion (US$24 million) back to the days it hadn’t transitioned to an export-processing enterprise, he said the claim was under review and would be approved once the step is completed.

Regarding its other claim for a tax refund of over VNĐ400 billion ($20 million), arising between June 2021 and December 2022, he said his department had sent the case to the General Department of Customs for review because the case falls within the agency’s competence.

Hoàng Văn Thu, Vice Chairman of the State Securities Commission of Vietnam, said it had never been an easy task to develop a legal framework for cryptocurrency in Việt Nam because such a form of money is new and largely in the crosshairs of cybercriminals.

He called for the formation of a working group to learn from other countries’ legislations and lay the legal groundwork for the “currency” in the country.

“We need to form an inter-minitrial working group to study cryptocurrency and weigh up the possibility of developing a legal framework for it,” said Thu.

Legally, it is invalid to trade cryptocurrency in Việt Nam because the “currency” has not been recognised as an “asset” in the country.

Trần Thị Huệ, Deputy Director of the Vietnam State Treasury, said her agency was working on a scheme to upgrade its portal of public services in 2024 and connect it to the portals of the Ministry of Planning and Investment and other State agencies.

Once the connection takes shape, it would allow the sharing of digitalised dossiers between ministries and discourage the use of paper-based dossiers, thereby accelerating the delivery of public investment.

Trương Bá Tuấn, Deputy Director of the Department of the Tax Policies, Fees and Charges Supervisory Authority, said the new environmental fees on emissions were not overlapping with other environmental fees because each serves a different purpose.

According to the Ministry of Finance, fiscal revenues grossed VNĐ1.22 quadrillion ($50.2 billion) in the first nine months of 2023, against fiscal expenditures of VNĐ1.24 quadrillion ($50.8 billion).

Imports and exports totalled $461.1 billion by mid-September, down 11.9 per cent year-on-year. The falling import of dutiable goods has caused a loss of VNĐ34 trillion ($1.4 billion) to the State budget.

About VNĐ243.4 trillion ($10 billion) of public bonds were issued by September 26 with an average term of 12.44 years and an annual coupon rate of 3.38 per cent. In the private sector, 51 enterprises issued VNĐ123 trillion ($5 billion) of corporate bonds by mid-September.

About VNĐ152.5 trillion ($6.3 billion) has been allocated by late September for fiscal efforts to support the economy, of which VNĐ49.6 trillion goes to tax cuts and fee reductions and VNĐ102.9 trillion to tax and fee deadline extensions. 

Viet Nam has many advantages to develop logistics: FIATA

Logistics firms in Việt Nam need to make full use of their potential and existing advantages to develop the sector, experts said at the International Federation of Freight Forwarders Associations World Congress (FWC) on Tuesday.

Stéphane Graber, general director of the International Federation of Freight Forwarders Associations (FIATA), said Việt Nam has the potential to become a logistic hub, as demonstrated by having a strategic geographical location and diversified means of transportation, especially waterway transportation.

“Việt Nam has been applying best practices in logistics, and it is necessary for it to receive sufficient training and enhance internal growth,” he said, adding that the FIATA would work with the Vietnam Logistics Business Association (VLA) to provide logistics training in the near future.

Graber also said Việt Nam has many advantages in developing logistics, notably through growth in production and manufacturing post-pandemic.

“A global transition in manufacturing has made foreign businesses relocate their factories in Việt Nam, which has contributed to the improvement of the country’s logistics sector,” said the general secretary of the VLA, Nguyễn Duy Minh.

Free trade agreements with 16 countries like Japan, South Korea, and Australia and trade opportunities with the US have also set the stage for Vietnamese logistics to grow, Minh said.

Governmental support in the sector has also enabled Việt Nam to bolster the overall logistics landscape, said Anis Khan, CEO of Intrapass GmbH (a Swiss logistics company).

Minh said Vietnamese export service enterprises should also cooperate with Belgium to set up a Vietnamese logistics centre there, helping to reduce transportation costs for exports to the EU and assist transshipment to Africa.

Efforts should also be made by the government to raise awareness in Vietnamese society about the importance of logistics, Minh suggested, citing the VLA’s success in bringing the FWC to Việt Nam.

The FWC helps businesses connect with governmental and non-governmental organisations.

Themed “The Climate Change of Logistics”, this year’s FWC discusses the current challenges, innovations, and developments of the changing global market, focusing on new trends in logistics and the education, compliance, diversity, and responsibility of logistics in adapting to climate change.

The Vietnamese delegation hopes to widely promote FWC 2025 that will be held in Việt Nam to attract the participation of companies and connect with Belgium logistics businesses and those around the world. 

SBV’s bill issuance is not a signal of monetary policy reversal

The State Bank of Vietnam (SBV)’s issuance of bills is not a signal of monetary policy reversal, but there is only limited room for the SBV to further loosen monetary policy, and this is not positive news for the stock market at the end of this year, analysts forecast.

In a recent report, Viet Dragon Securities Company (VDSC)’s analysts said that although the possibility of the US Federal Reserve (Fed) implementing another interest rate hike is still open, given that the US core personal consumption expenditure (PCE) index in August cooled to 3.9 per cent, the Fed’s decision to maintain the high interest rate for the next two years is unfavourable information for the SBV’s exchange rate management, especially when there is a contrast in monetary policy between the SBV and the Fed.

After the Fed’s recent meeting, the SBV resumed bill issuance. As a result, the accumulated net withdrawal value through bill issuance as of October 3, 2023 reached nearly VNĐ111 trillion. Overnight interbank interest rates and T-bill interest rates have begun to increase to 0.55 per cent and 1.18 per cent, respectively, according to the SBV’s latest data.

VDSC’s analysts believe that this development, along with the expectation of accelerated credit growth at the end of the year, may help narrow the interest rate gap between the Vietnamese đồng-denominated and the US dollar-denominated savings. With the exchange rate having increased by 3.5 per cent since the beginning of the year, the analysts do not expect interest rate arbitrage activities to create additional pressure on the exchange rate.

However, they noted, in the most negative scenario where the US dollar index (DXY) increases beyond 110, the SBV may have to intervene by selling the dollar, combined with a net withdrawal on the T-bill channel. This could worsen investment sentiment due to concerns about deeper changes in the SBV’s monetary policy management.

The analysts believe that the SBV’s issuance of bills is not a signal of policy reversal when economic growth is still low at 4.24 per cent in the first eight months of 2023 and inflation remains under control.

However, they noted, the room for further loosening of monetary policy is relatively limited, and this is not positive news for the stock market in the year-end period.

In a recent report, Saigon Securities Company (SSI)’s research division also stated that the SBV’s move to issue bills is a way to adjust the short-term liquidity situation in the banking system. The bill issuance is also a common activity from central banks and doesn’t signify a change in the SBV’s monetary policy. The SBV’s purpose is merely to withdraw liquidity in the interbank market to reduce pressure on exchange rate speculation in the short term.

In fact, the sentiment of investors in the stock market has quickly changed, reflected in the sharp decline in market liquidity. Specifically, cash flow in the industry groups, including real estate, securities, and public investment, which led investors’ sentiment in the past period, has shown clear signs of weakening.

This movement further reinforces VDSC’s view that the market’s broad upward trend, based on policy effects since May, will gradually transition to a more sideways trend, as mentioned in the VDSC report. 

Big data essential to ensure continuous operations of the banking industry

Data security is an important issue in ensuring continuous operations, and is considered a vital factor for banks.

The Smart Banking Summit 2023 was organised by the Việt Nam Banks Association (VNBA) in collaboration with IEC Group, under the professional sponsorship of the State Bank of Vietnam (SBV), in Hà Nội on Friday.

Speaking at the event, SBV deputy governor Phạm Tiến Dũng said that in the development of the Industry 4.0, data has become a new resource, an important and decisive factor in the digital transformation process.

In particular, large banks in Việt Nam have made changes and have their own warehouses and data centres.

For the banking industry, developing and effectively exploiting digital data is one of nine solution task groups to implement the goal of digital transformation in the banking industry in Decision No 810/QĐ-NHNN of the SBV Governor.

Data not only helps banks authenticate and identify customers, but also through technology applications to analyse and capture consumer behaviour and trends, thereby making decisions in product and service development and supply to meet market needs and improve operational efficiency.

The SBV deputy governor asked bank leaders to pay attention to two issues, which are ensuring continuous operations and ensuring security.

The deputy governor informed that the amending Law on Credit Institutions would require banks to develop scenarios for unusual situations, otherwise they would not be able to handle when a crisis occured.

General Director of Tiên Phong Joint Stock Commercial Bank (TPBank) Nguyễn Hưng said that the bank only processed three million transactions per month five years ago.

But now, the bank has 100 million transactions per month and if the system stopped for just a few minutes, hundreds of thousands of customers would be affected.

“There are so many different options to use now. Therefore, the crucial and vital thing for the bank is to ensure there is no interruption and continuous operation,” said Hưng.

Opening the plenary session of the event, Trần Văn Tần, vice chairman of VNBA council, said that in recent times, the banking industry has had many directives, circulars, and action plans to realise digital transformation goals.

According to statistics from the SBV, the banking industry has invested more than VNĐ15 trillion (US$625 million) in digital transformation activities by the end of last year.

“This shows that Việt Nam is expanding rapidly and has great potential for developing digital banking applications, helping the country become one of the leading countries in the banking industry revolution,” emphasised Tần.

In addition to pointing out the results of the banking industry in digital transformation activities in general as well as the collection, exploitation and processing of digital data, Tần also commented that in this process, banks also were facing many challenges, including maintaining a balance between data exploitation and protection.

Digital transformation has many new, complex, and rapidly changing elements, requiring continuous absorption of international achievements and experiences and creative application appropriate to the specific conditions and circumstances of the country.

The VNBA representative expected that the summit titled “Harnessing and leveraging data: Shaping the future of the banking industry in the digital age” was truly a forum for regulatory agencies, researchers and the community of banks and credit institutions to discuss issues for successful and sustainable digital transformation of the banking industry. 

Sugar giant tables rights offering scheme

Thành Thành Công – Biên Hòa JSC (HOSE: SBT) has recently proposed a scheme to offer 148 million new shares to its existing shareholders.

With an offering price of VNĐ12,000 (US$0.49) per share, the two-for-ten rights issue is expected to bring in about VNĐ1.8 trillion ($72.8 million), raising SBT’s charter capital to VNĐ8.9 trillion ($364 million).

SBT has also tabled another scheme to list some of its subsidiaries and affiliated companies on the stock exchange, a move aimed at promoting its brand globally and attracting more capital from investors.

SBT remains the largest producer in Việt Nam’s sugar industry, producing 46 per cent of the country’s sugar output. By late June, it had 18 direct subsidiaries, 12 indirect subsidiaries, and four affiliated companies.

The company made revenue of VNĐ24.7 trillion ($1 billion) in the 2022/2023 financial period, up 35 per cent year-on-year.

The rights issue is scheduled to be implemented prior to December 31, 2024, after SBT gets the go-ahead from the State Securities Commission of Vietnam. On HOSE, SBT closed Tuesday’s session at VNĐ14,050 a piece. 

VinFast delivers more than 10,000 EVs in Q3/2023

VinFast Automaker, a subsidiary of Vingroup, has announced it delivered 10,027 electric vehicles in Q3 2023, representing an increase of approximately 5.2 per cent from the second quarter of 2023.

Meanwhile, E-scooter deliveries were 28,220 in Q3 2023, representing an increase of approximately 177.2 per cent from the second quarter of 2023 and an increase of approximately 112.9 per cent from the third quarter of 2022.

As of 30 September 2023, the Company had 126 showrooms globally for EVs and 247 showrooms and service workshops for e-scooters, including VinFast showrooms and dealer showrooms.

Vehicle sales were VNĐ7.69 trillion (US$319.5 million), representing an increase of 185.2 per cent from the third quarter of 2022 and an increase of 2.8 per cent from the second quarter of 2023.

The company’s total revenues were VNĐ8.25 trillion ($342.7 million), representing an increase of 159.3 per cent from the third quarter of 2022 and an increase of 3.8 per cent from the second quarter of 2023. Total revenues are primarily comprised of revenue from EV sales. 

Vietnam urges global support for sustainable development at UN meeting

Vietnam has called on developed nations to provide financial, technical, and technological support to developing countries.

The appeal was made during the 78th session of the United Nations (UN) Economic and Financial Committee (Second Committee), which took place in New York City, U.S., on October 3 and 4.

Vietnam’s permanent delegation to the UN highlighted that global challenges continue to impede progress on sustainable development goals (SDGs). Currently, only 15% of these goals are on track for completion, according to the delegation.

Vietnam emphasized the need for a rapid overhaul of the international financial system to mobilize resources for developing nations. The delegation also called for the rollout of aid packages aimed at achieving SDGs.

In addition to economic concerns, Vietnam urged countries to prioritize social issues. These include poverty eradication through measures such as enhancing food security, investing in education, and ensuring sustainable employment and social welfare.

The Vietnamese delegation also called on developed nations to facilitate the transfer of technology, finance, and technical expertise to developing countries.

Vietnam expressed its willingness to continue collaborating with the international community, targeting the 2030 deadline for achieving SDGs.

Prior to the session, the committee stressed the importance of cooperation in six critical areas: food security, energy, biodiversity, digitization, education, and social welfare and employment.

Vietnam’s call adds to the growing urgency for collective action to meet global sustainable development targets.

HCMC: Budget revenue collection in first nine months exceeds VND326 trillion

The HCMC Department of Finance has just reported that budget revenue collection for the first nine months of the year has exceeded VND326 trillion, reaching 69.5 percent of the annual plan. Notably, within the revenue structure, personal income tax has significantly decreased.

Each year, this is a significant source of revenue for HCMC, accounting for about 10 percent of the national personal income tax collection. However, in recent times, this revenue has declined significantly, mainly due to a sharp drop in personal income tax from real estate and stock market transactions.

According to the Department of Finance, over the past nine months, HCMC has promptly implemented various tax and fee exemptions, reductions, and extensions in line with the government’s policies. Specifically, tax exemptions amounted to VND8.61 trillion, and tax extensions reached VND10.97 trillion. The support policies of HCMC have played a role in boosting resources for businesses to regain growth and contribute more to the budget.

Around 1,600 corporate bond codes to be listed in October 2023

All remaining outstanding private placement corporate bonds must be registered and deposited, and all transactions must be carried out through an exchange.

According to the Hanoi Stock Exchange (HNX), after more than two months of operation of the trading platform for private placement corporate bonds (since July 19), as of October 2, the total trading volume on the trading platform for private placement corporate bonds has surpassed 83 million corporate bonds, with a total trading value of approximately VND22 trillion.

Among these, corporate bonds with high trading values include Vinfast with over VND8.4 trillion, Vietcombank with nearly VND5.9 trillion, and BIDV with over VND3.9 trillion. In contrast, other corporate bond codes, such as Tracodi and Masan, have relatively lower trading values.

At present, the average trading value on the trading platform for private placement corporate bonds is roughly VND265 billion per session, equivalent to more than 1.5 million corporate bonds per session. While this trading volume is still relatively modest when compared to the overall corporate bond market, it has shown promising results during the initial operational period. The platform’s trading scale is anticipated to experience substantial growth once all remaining outstanding private placement corporate bonds are listed.

Government Decree 65/2022 governs the issuance and trading of private placement corporate bonds in the domestic market, as well as the issuance of corporate bonds to the international market. It specifies that, within a 3-month period from the commencement of the official operation of the registration, depository, and trading system for private placement corporate bonds, any bonds issued under this decree and Decree No.153/2020 that remain unpaid must undergo registration, deposit, and trading registration.

Accordingly, October 19, 2023, is the deadline by which all businesses must list their bonds on the centralized trading platform. According to Government Decree 156/2020 on the imposition of administrative penalties in the securities and stock market sector, failing to register or list securities or registering and listing securities beyond the prescribed deadline, depending on the duration of the delay, ranging from one to more than 12 months, may result in fines ranging from VND10 million to VND400 million. Additionally, supplementary fines may be imposed based on the severity of the violation.

Securities companies forecast that after the trading platform for private placement corporate bonds has been in operation for a full three months, by the end of October 2023, all remaining outstanding private placement corporate bonds will be required to register and deposit, and their trading will have to be conducted through the platform, leading to a surge in liquidity. It is anticipated that around 1,600 private placement corporate bond codes will be listed and traded on the trading platform for private placement corporate bonds.

Airlines required to report flight schedules for Tet holiday

The Civil Aviation Authority of Vietnam (CAAV) has just issued an official letter requiring domestic airlines to submit reports in detail about the flight schedule serving for the Tet holiday of 2024.

The flight schedule serving for the Tet holiday will fall from January 24 (the 15th day of the last lunar month of 2023) to February 24, 2024 (the 15th day of the first lunar month of 2024).

In addition, the CAAV required the airlines to report the flight schedule on each air route during the peak period of the Tet holiday. Basing on the flight exploitation during the Tet holiday of 2023, the airlines should propose an appropriate plan for this year to avoid the situation of out-of-stock or rare tickets.

Information from air ticket agents showed that the airlines have offered for sale six million tickets for the Tet holiday at expensive prices. Accordingly, they have started selling tickets on some air routes from Ho Chi Minh City to Vinh, Thanh Hoa and Nghe An during peak period with the fare of VND4 million (US$164) to VND6 million (US$245) for round-trip tickets.

The CAAV required Vietnam Airlines, Vietjet, Bamboo Airways, Pacific Airlines and Vietravel Airlines to submit reports on market demand, flight exploitation plan, demand for using the number of landing and taking off slots at airports during the peak time of the Tet holiday in 2024.

Besides, the CAAV required relevant units to strengthen works to ensure security and prevent luggage loss at airports. Ground service units and aviation staff are assigned to review the whole process of passenger and luggage handling to better their service.

Dramatical credit increase signals production and business prosperity in Q4

With an increase of VND120 trillion (US$4.9 billion) within 9 days from September 20 to 29, credit topped VND12.7 quadrillion, an increase of about 6.9 percent compared to the beginning of the year.

That is expected to bring prosperity to production and business activities in the last quarter of the year.

With the country’s existing economic difficulties, credit growth has only reached 1/3 of the plan set by the banking industry for 2023 even though the third quarter of 2023 ended. Not only private commercial banks but also state-owned banks also have witnessed slow credit growth.

A Vietcombank leader said that from the beginning of the year until now, this bank’s capital mobilization has been six times higher than the credit growth rate. He disclosed that not only domestic production and business credit but also foreign direct investment (FDI) business credit also decreased by more than 19 percent. Apart from that, real estate credit alone decreased sharply, in which personal loans to buy property decreased by up to 15 percent, he said.

Similarly, General Director of BIDV Le Ngoc Lam said that by the end of August 2023, BIDV’s credit would only increase by 5.72 percent even though the yearly limit is up to 14 percent. Meanwhile, Agribank reported that its credit growth only reached 2.4 percent as of August 31 compared to the end of 2022 explaining for the economy’s weak capital absorption capacity.

More people make deposits into their savings accounts but there has been a decrease in borrowers’ demand for loans; therefore, the State Bank (SBV) has lately withdrawn VND100 trillion of uncirculated money out of the banking system through the issuance of bills. This move by the State Bank is assessed by experts as adjusting the short-term liquidity status in the system.

An expert from Maybank Securities Company analyzed the state bank’s move to attract money through treasury bills aims to ensure the goals of increasing interest rates in the inter-bank market as well as reducing exchange rate pressure but not causing liquidity disruption for the economy with the aim to push down the lending rates.

Leaders of some commercial banks said that interest rates are no longer a barrier to accessing credit because lending interest rates have dropped deeply. However, this statement is different from reality.

Deputy Director of the State Bank of Vietnam Ho Chi Minh City branch Nguyen Duc Lenh said that the Ho Chi Minh City financial and monetary policy consulting working group has just conducted a survey of the operations of a number of businesses in the city to find out how businesses and people access credit capital.

The results show that businesses and people have convenient access to credit capital with low-interest rates. Accordingly, lending interest rates have decreased, and short-term credits and corporate loan interest rates are at a common level of 7.5-8.5 percent per annum. This rate has been maintained for many years before the Covid-19 epidemic. However, many petroleum businesses in Ho Chi Minh City revealed that they are borrowing loans at interest rates of 10 percent to 11 percent per annum while social housing businesses said that they are also enduring interest rates of up to 13 percent to 14 percent a year.

Standing Deputy Governor of the State Bank Dao Minh Tu said that since the beginning of this year, the State Bank has proposed many major solutions to expand credit. With the application of solutions, credit is expected to achieve growth goals, remove difficulties for businesses, and boost the economy.

Hopefully in the last 3 months of the year, as usual, credit will increase rapidly when businesses need money for the year-end shopping season. The State Bank will take drastic measures with the companionship of localities to create favorable conditions for businesses to thrive.

Vietnam is second largest supplier of rubber to China

Vietnam emerged as the second largest supplier of rubber to China during the opening eight months of the year with 976,100 tonnes worth US$1.3 million, according to statistics from China’s customs authorities.      

The figures represent a rise of 16.7% in volume, but a fall of 6.6% in value year on year. Vietnamese rubber’s market share accounts for 18.23% of China’s total rubber imports, 0.43% higher than the figure recorded in the same period last year.

China imported 5.35 million tonnes of rubber worth US$7.98 billion, mainly natural and synthetic rubber in the eight-month period, up 13.9% in volume, but down 9.6%.

With regard to natural rubber, Vietnam was the fifth largest supplier of natural rubber to China with 124,630 tonnes worth US$135.94 million, down 14.2% in volume and 34.3% in value, with market shares making up 7.37% of total Chinese imports.

For mixed natural rubber and synthetic rubber, Vietnam was the second largest exporter of these products to this market with 846,060 tonnes worth US$1.15 billion, up 23.4% in volume but down 1.9% in value, accounting for 32.51% of total Chinese import turnover of the products.

At present, Thailand, Vietnam, Malaysia, the Ivory Coast, and Russia are the five largest suppliers of rubber to China.

Plenty of room for Vietnamese tea exports to the UK 
 
There is plenty of room for Vietnamese tea products to secure a larger market share in the United Kingdom, as the country currently accounts for only 0.1% of the UK’s total tea imports, experts have said.

At present, Vietnam is the 23rd largest tea supplier to the UK market. However, Vietnamese tea exports to this market saw a significant decline both in value and volume during the first half of 2023.
  
The average price of tea imported from Vietnam stood at US$4.928 per tonne, a decrease of 0.4% compared to the same period last year.

In those six months, the UK spent US$160 million on importing 53,000 tonnes of tea, marking a 9.7% reduction in volume and a 9.4% drop in value from the corresponding period the previous year, according to data from the International Trade Centre (ITC).

Kenya emerged as the predominant tea provider to the UK, representing 56.8% of the market’s total imports. Kenya dispatched 30,100 tonnes to the market, garnering US$70.9 million, an increase of 3.2% in volume and 1.6% in value year-on-year.

Other significant tea exporters to the UK included India, Malawi, and Switzerland.

To augment tea exports, especially to the UK market, businesses are urged to bolster cooperation, cultivate high-quality raw material regions, and transition to new tea varieties, as advised by the Ministry of Agriculture and Rural Development (MARD).

Further, they should refine processing procedures and adhere to food safety standards to align with the market’s demands, the ministry recommended.

Vietnam currently holds the 7th and 5th positions globally in terms of tea production and exports, respectively.

As per MARD, the country has allocated 123,000ha for tea cultivation, possessing the capacity to yield 1.02 million tonnes of fresh buds.

Vietnamese tea products have reached 74 countries and territories around the world, with key destinations being Pakistan, China, Russia, and Indonesia. 

Quang Ninh focuses on developing processing and manufacturing industry

The northern coastal province of Quảng Ninh sets a goal that the manufacturing and processing industry in the province will account for more than 15 per cent of GRDP by 2025.

Data from the Quảng Ninh Statistical Office shows that the production index of the province’s manufacturing and processing industry rose by 12.99 per cent in the first eight months of this year.

There are 15 out of 21 industries whose indexes increased compared to the same period last year.

Quảng Ninh sets a goal that the average value-added growth rate will reach 17 per cent per year by 2025; total investment capital attraction hit over VNĐ50 trillion (US$2.1 billion), and at least 30,000 new jobs will be created.

Oriented to 2030, the proportion of the manufacturing and processing industry will reach 20 per cent of GRDP; the average value added growth rate will be 20 per cent per year; total investment capital attraction in the area exceed VNĐ100 trillion; and 50,000 new jobs will be generated.

To realise the above goal, the Kinh tế Việt Nam (VnEconomy – Vietnam Economic Times) Magazine quoted Secretary of the Quảng Ninh Provincial Party Committee Nguyễn Xuân Ký as saying that the province will prioritise selectively attracting high-tech processing and manufacturing projects and smart and eco-friendly industries with great added value, modern management, and economical and effective use of mineral resources.

Along with that, the province had implemented many strict control solutions and created support mechanisms to promote processing and manufacturing enterprises that are facing difficulties, Ký said.

The province also have specific incentive policies to form and develop supporting industrial clusters, improve qualifications according to international standards, build many connection programmes between supporting businesses in the area and manufacturing and assembly companies domestically and abroad.

Determining that coal and electricity industries as well as the processing and manufacturing industries play a pivotal role in economic growth, Quảng Ninh continuously seeks ways to overcome difficulties for the coal industry to develop stably and enhance maximum output to meet the energy needs of the economy.

The coal industry’s contribution to domestic revenue in the province always accounts for a large proportion (39.1 per cent in 2020, 36.7 per cent in 2021, 40.9 per cent last year).

Total clean coal output in three years is estimated at 135.56 million tonnes from 2021.

The provincial electricity production industry still maintains a fairly stable growth rate. Electricity production has decreased by an average of 1.01 per cent per year.

However, Quảng Ninh is still a locality with high electricity production, creating maximum conditions for the cement, electronics, textile, cooking oil, and flour industries to boost production and increase the number of products, connect and develop consumer markets and export goods.

Currently, the province is building the Quảng Ninh LNG gas power plant, which is the first power project using imported liquefied natural gas (LNG) in the north, with a capacity of up to 1,500MW.

Projects in the field of processing and manufacturing industries in the province have been actively participated in by investors to build technical and production infrastructure.

Thanks to the synchronous implementation of solutions, the proportion of the processing and manufacturing industry in Quảng Ninh’s GRDP structure increases year by year.

Specifically, the processing and manufacturing industry accounted for 11.3 per cent of the province’s GRDP in 2021, increasing to 11.5 per cent in last year. It is expected that this figure will be 12.3 per cent this year.

Summarising the first two quarters of this year, the total investment capital attracted in Quảng Ninh area reached nearly VNĐ44.02 trillion.

Foreign direct investment (FDI) reached nearly $832 million. Of these, 17 FDI projects were newly granted investment certificates, 2.5 times more than the same period last year, mainly in the field of processing and manufacturing industries, such as two large-scale projects with capital investment of $100 million, including project producing safety products for cars of Antoliv Việt Nam Co., Ltd.; boltun lock, latch and stamping production project of Taiwanese investor.

With long-term development orientations and the results as above, Quảng Ninh’s manufacturing and processing industry is forecasted to continue to grow strongly in the near future.

Significant opportunities for investment in Cuba

There were large opportunities for Vietnamese firms to invest in Cuba as this Caribbean island country was offering attractive incentives for foreign capital.

Irmina Perojo, Cuban Economic and Commercial Counselor to Việt Nam, said the Cuban Government has hastened economic reforms in recent years to attract foreign direct investment (FDI), increase domestic production capacity and reduce imports.

Accordingly, foreign investors in Cuba would be provided with a number of incentives, especially those investing in Mariel Special Development Zone which owned a modern synchronous infrastructure system with the most modern deep-water port in the region.

Nguyễn Thị Trang from the European – African Markets Department under Việt Nam Ministry of Industry and Trade said that Cuba had high demands for consumer goods, footwear products, food and foodstuffs, beverage, raw materials and machinery, which provided significant opportunities for Vietnamese enterprises.

The Việt Nam – Cuba Free Trade Agreement which took effect in 2022 with many preferential tariffs would create favourable conditions for increasing bilateral trade between the two countries to reach the goal of $500 million in the next five years.

Under the trade deal, 478 tariff lines were removed immediately while 296 would be lifted after five years.

According to the Việt Nam Chamber of Commerce and Industry (VCCI), Việt Nam was the second largest Asian trade partner of Cuba with an average annual bilateral trade of around $250-300 million in the 2015-20 period.

In terms of investment, Việt Nam was the largest investor from Asia in Cuba with five projects being implemented, including two of Vietnamese construction materials enterprises Viglacera which was a building materials production project joined with Geicon Cuba and ViMariel Industrial Park.

The rest included a pamper production plant, a detergent production plant and a solar energy plant.

Vietnamese investments contributed significantly to helping Cuba meet the demand for consumer goods, and electricity as well as creating jobs for Cuban people.

Orlando Nicolás Hernández Guillén, Cuban Ambassador to Việt Nam, said that Việt Nam – Cuba trade and investment relations have never been as favourable as now thanks to the FTA between the two countries and the attractive FDI policies of Cuba.

Specifically, FDI enterprises in Mariel and ViMariel Industrial Park would be given exemptions of corporate income tax, personal income tax in the first 10 years, exemption of sales and service tax and a 50 per cent reduction in environmental protection tax.

In the centre of the Mariel Special Development Zone, ViMariel Industrial Park which was developed by Viglacera’s subsidiary ViMariel Company, had very good transport connectivity, just 42 km from Jose Marti International Airport, 25 km from De Baracoa and San Antonio De Los Banos airports and owning two-line railway connected with the national seaport and railway system.

ViMariel Industrial Park, in operation for five years, enabled Vietnamese enterprises to invest in Cuba more easily, Nguyễn Thị Thu Hương from ViMariel said.

The second phase of ViMariel Industrial Park project started in April, aiming to attract more Vietnamese investments to Cuba. 

Recent slump in lobster exports to China raises need for switch to official export

The recent significant slump in lobster exports to China has highlighted an urgent need for Việt Nam to switch to official export channels to ensure stability, the Việt Nam Association of Seafood Exporters and Producers (Vasep) said.

The association’s updates showed that Việt Nam’s lobster exports to China dropped by 42 per cent from January to August compared to the same period last year, amounting to US$76 million.

According to Chinese customs’ statistics, China imported more than 32,350 tonnes of lobster in the first seven months of this year, worth more than $962 million. This represents an increase of 19 per cent in volume and 1 per cent in value compared to the same period last year.

Although China remains the largest lobster export market for Việt Nam, Việt Nam holds a modest share of just around 1 per cent in the Chinese lobster market, ranking 14th after major suppliers such as Canada, the US, New Zealand, Cuba, India, Brazil, and Mexico.

After decreasing by 80 per cent to $31 million in 2021 due to the impact of the COVID-19 pandemic, Việt Nam’s lobster exports to China were impressive in 2022, with an export revenue of $257 million, 8.3 times higher than in 2021, driven by improved demand post the pandemic.

Vasep stated that lobsters are primarily exported to China via unofficial channels, which come with many risks, including price fluctuations and changes in import policy.

Moreover, exporting via unofficial channels is becoming increasingly challenging as China is progressively tightening imports of agro-forestry-fishery products.

Promotion of the official export of lobster to China is essential, Vasep emphasised.

The first critical step to switch to official exports is to establish a value chain and develop a traceability system for lobsters, the association noted.

Vasep suggested that support should be provided to parties involved in establishing a lobster value chain, applying science and technology in aquaculture, and developing raw material areas.

Under the project for lobster farming and export by 2025, the Ministry of Agriculture and Rural Development aims to achieve an output of 3,000 tonnes per year with an export value of $200 million. Lobsters are primarily farmed in Phú Yên, Khánh Hoà, and Kiên Giang.

Recently, the Móng Cái International Border Gate’s Management Board in Quảng Ninh Province reported that China had increased its inspection frequency for fresh fishery products from September 20. This heightened scrutiny caused tonnes of lobsters to die while awaiting customs clearance procedures, leading to a forced sale at approximately VNĐ400,000 per kg, a third of the market price.

In response, the National Agro-Forestry-Fisheries Quality Assurance Department sent a document to the Chinese authorities requesting efforts to facilitate the export of Vietnamese seafood products.

The department noted that, to date, lobster exports via Móng Cái have returned to normal, with around 30-50 tonnes of lobster exported to China daily. 

Central banks to amend regulations on bank card operation

The State Bank of Vietnam (SBV) is developing regulations to amend Circular No 19/2016/TT-NHNN on bank card operation. It hopes to receive feedback from the public to make appropriate adjustments, Phạm Anh Tuấn, director of the SBV’s Payment Department, said.

The change aims to establish a comprehensive legal framework to promote non-cash payments and card development in the country.

Tuấn said that the SBV oversees and develops the new circular and wishes to gather opinions to understand fully the challenges and limitations in the process of card development and trading. The SBV’s Payment Department will review and report to the SBV leaders for suitable adjustments to the new circular.

The Vietnamese card market has seen a rapid growth in recent years, significantly contributing to the rise of non-cash payments in the country. As of July 2023, the number of cards in circulation exceeded 140 million (an increase of 8.27 per cent compared to the end of 2021), of which over 103 million were domestic cards and 36.7 million were international ones. Out of these, nearly 10.8 million cards were opened with eKyc by 27 banks.

According to experts, Việt Nam boasts many favourable conditions to develop cashless payments. By the end of 2022, more than 77.41 per cent of Vietnamese adults held payment accounts with banks. The market is currently evolving a digital ecosystem that links banks with public service organisations, providing a seamless experience for users. Consumers merely need one application to make payments, from movie tickets to meals. The Vietnamese card market, especially domestic credit cards, has significant potential for growth.

Tuấn stated that the SBV supports credit institutions in transitioning from magnetic cards to chip cards. Thanks to this open approach, the issuance of cards using eKyc is on the rise.

In the future, the SBV will introduce several strategies to encourage non-cash payment and card activities. Soon, cards will be issued exclusively as eKyc with an embedded chip, he said.

Tuấn also noted that the SBV is examining and progressing towards the establishment of a digital ecosystem in the banking sector to offer the best experience for customers. It will introduce services leveraging new technologies such as contactless payment and QR Codes.

Concerning public services, the SBV and other relevant agencies will persistently advocate for electronic payments, particularly for state budget revenue, education, and health care, while ensuring security and confidentiality in transactions, Tuấn added. 

Realty association calls for push-back of effective date

HCM City Real Estate Association (HoREA) is calling for a revision to an article whose entry into force is believed to stymie the corporate bond market.

Article 3 of Government Decree No.08/2023/ND-CP stipulates that three specific articles in Decree No.65, one regulating professional securities investors, one regulating time intervals between bond issues, and one regulating bond issuers credit ratings, will no longer be in effect as of December 31, 2023. 

HoREA has sent an appeal to the Prime Minister and the Ministry of Finance, asking for the date to be pushed back to December 31, 2024, giving investors and bond issuers more time to adapt to Decree No.08.

“Lots of investors and bond issuers haven’t met the new requirements specified in Decree No.08. That’s why the three articles should stay in force for one more year,” said the appeal.

If the date is not pushed back, many enterprises, HoREA said, would face difficulties issuing privately placed corporate bonds after January 1, 2024.

HoREA also urged the government to take action to promote the formation of credit rating agencies in Việt Nam, for the reason that “there are few such agencies in the country.” 

HoREA said Decree No.08 had been put in place for just six months but it had served the corporate bond market well by removing obstacles in the way of bond issuers and accelerating the recovery of real estate enterprises.

The decree is believed to keep the market on track in Q4/2023, during which the volume of corporate bonds coming due will reach its peak of the whole year, at VNĐ65.5 trillion ($2.7 billion). It is also worth noting that the figure will soar to VNĐ329.5 trillion ($13.5 billion) in 2024, the highest since 2022. 

A professional securities investor (PSI), under Decree No.65, is defined as a person holding a portfolio of listed securities with a minimum value of VNĐ2 billion ($82,000). The PSI status, once determined, is valid for three months.

HoREA said the financial position of many PSIs was weakening as the economic downturn had weighed on the securities market. 

BSR plans to list on global stock markets

Bình Sơn Refinery and Petrochemical JSC (BSR) announced a collaboration with Deloitte Việt Nam to adapt the International Financial Report Standards (IFRS), aiming at listing on the international market and calling for investment.

At the meeting with the audit consulting provider, Bùi Ngọc Dương, General Director of BSR, said that the application of IFRS standards is a sufficient condition for the company to enter the global stock markets.

It also benefits BSR in raising funds for upgrading and expanding Dung Quất refinery, strengthening BSR’s competitiveness in the market.

According to Phạm Hoài Nam, Deputy General Director of Deloitte Việt Nam, applying IFRS also helps the company improve financial management, ensure accuracy and reliability in reports on sustainable development, carbon commitments, derivative trading, and risk assurance.

Deloitte Việt Nam will build training programme and courses based on IFRS standards to audit BSR’s financial statements from 2020 to 2023.

Previously, the Ministry of Finance issued Decision No. 345/QD-BTC approving the project to apply financial reporting standards in Việt Nam with the aim of applying IFRS and new Vietnamese financial reporting standards after 2025.

In the first eight months of the year, the company’s revenue is estimated at VNĐ91.6 trillion (US$3.77 billion), down 19 per cent over the same period last year, while its net profit was approximately VNĐ4.4 trillion.

As a result, BSR completed 96 per cent of this year’s revenue target and 270 per cent of the yearly profit target.

BSR’s business result in the second half of 2023 is expected to be positive as crack spreads (the price difference between the crude oil and the refined products) rise, particularly for the Diesel and Jet A1 oil groups amid the substantial increase in crude oil prices.

Gov’t proposes continued reduction of value added tax in first 6 months of 2024

In its submission to the National Assembly, the Government proposed to continue reducing value-added tax by 2 percent in the first 6 months of 2024.

The Government also requested the Ministry of Finance to report to the National Assembly Standing Committee for consideration of the application for environmental protection taxes on petroleum products in 2024. The Ministry’s reports must be drawn up for submission to the Government in October 2023.

Based on proposals from ministries, agencies and localities on fee and charge policies to encourage people and businesses to use online public services, the Ministry of Finance should study and report to the Prime Minister in October 2023.

The State Bank of Vietnam was asked to coordinate with agencies and localities to closely follow market developments to continue to operate monetary policy effectively and synchronously with fiscal policy and other policies in order not to create strong fluctuations or sudden changes that affect market psychology, businesses, investors, and people. The bank was also required to manage exchange rates in accordance with the situation to contribute to controlling inflation and stabilizing the macro-economy, and foreign exchange markets.

Last but not least, the state bank should continue to instruct credit institutions to simplify lending procedures to increase credit access for businesses and promote the disbursement of the VND40 trillion (US$1.64 billion) credit package providing low-interest loans, the VND20 trillion credit package for social housing loans and VND15 trillion for forestry and fisheries sectors.

The Ministry of Industry and Trade must be determined to implement solutions to ensure electricity supply in the last months of 2023 and in 2024 and petroleum supply assigned by the Prime Minister.

The Ministry of Industry and Trade must soon submit to competent authorities for the promulgation of mechanisms to encourage the development of self-produced rooftop solar power and direct electricity trading mechanisms.

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