KTFA:

Clare:  Finance: The resumption of working hours for the staff of the budget and accounting departments during official holidays

12/30/2022

The Ministry of Finance announced the resumption of working hours for the staff of the Budget and Accounting Departments during official holidays.

A statement by the ministry stated: “The cadres of the budget and accounting departments in the Ministry of Finance continue to work on official days (Fridays, Saturdays and Sundays), in order to complete the audit procedures related to fixing the contracts segment in state departments and political dismissals and completing compensation for victims of terrorism and war operations, in addition to the continuation of the accounting department with financing procedures.

” For the current month of December, and financing the completed work items for investment projects, according to what is stated in Food Security Law No. (2) for the year 2022.

He added, "With exceptional efforts, these measures come in implementation of the ministerial program, in light of upgrading the mechanisms of managing public funds and guaranteeing the rights of all segments and groups of society in accordance with the instructions stipulated, in addition to improving the level of services provided, and the optimal application of the government program in the field of financial management and control of public expenditures." .  LINK

************

Henig:  Minister of Finance: The budget was not sent to the Council of Ministers.. and these are its most important priorities

Baghdad / NINA /- The Minister of Finance, Taif Sami, revealed today, Friday, the fate of the draft general budget law for the year 2023, and the most important paragraphs that it will focus on.

Sami said, in a statement to the official News Agency, that "the ministerial program approved by the Council of Ministers includes current expenditures for some Ministries, and other investment projects that the Ministry of Planning worked on and were included in the 2023 budget."

She added, "The general budget will focus primarily on the health sector, supporting hospitals, reducing surgical procedures abroad, supporting vulnerable classes, social care, and people with disabilities, and raising the loan capital ceiling for small projects in the Ministry of Labor."

She explained, "The Ministry of Finance is still working on completing the general budget law for the year 2023, and there are meetings held with the Prime Minister to include the directives, and they have not yet been sent to the Council of Ministers," stressing that "the budget will include the establishment of a development fund, and we set its allocations for the investment platform with a text in the law on how to support it and prepare its internal system and draft within a year.

The Minister of Finance continued, "The price of a barrel of oil, which has been placed so far in the general budget, amounted to 65 dollars, and it may reach 70 dollars, and the total amount of the budget has not yet been set, while the exchange rate has been fixed at 1450."

She stressed that "the draft general budget law may include a study to impose some taxes on the oil derivatives sector, if approved by the House of Representatives, which would enhance revenues." LINK

************

Vietnam

Henig:  China reopening will give Việt Nam GDP 2%pts boost in 2023: Vinacapital economist

December, 30/2022 - 08:22

China’s reopening is expected to boost Việt Nam’s GDP growth by over 2 percentage points next year, driven by the full resumption of Chinese tourist arrivals in the second half of 2023, Michael Kokalari, chief economist at investment fund VinaCapital, has said.

HCM CITY — China’s reopening is expected to boost Việt Nam’s GDP growth by over 2 percentage points next year, driven by the full resumption of Chinese tourist arrivals in the second half of 2023, Michael Kokalari, chief economist at investment fund VinaCapital, said in a recent report.

“We expect China's reopening will have a bigger impact on the economies of other ASEAN countries than it will for Việt Nam due to those countries’ greater exposure to China’s domestic economy," the report said.

“The most immediate impact of China’s scrapping of its COVID restrictions has been a circa 5 per cent appreciation in the value of the đồng, driven by a 5 per cent appreciation in the value of China’s currency. 

“That said, the major benefit that Việt Nam will accrue from China’s re-opening is likely to be a circa 2 percentage point boost to GDP growth next year driven by a resumption of Chinese tourist arrivals.” 

But China’s reopening is also likely to cause some inflationary pressure in Việt Nam though the impact could be mitigated by several factors, including a more prolonged reopening compared to the US and Europe as well as less pent-up savings and demand in China compared to the US and EU.

Though China is Việt Nam's largest trading partner, Việt Nam’s exposure to China’s domestic economy was quite modest, resulting in Việt Nam’s GDP growth not being significantly hindered by COVID restrictions and resultant economic problems in that country.

Việt Nam’s export growth to China was nearly flat in the first nine months, but since only 14 per cent of its exports went to China its GDP had soared 8.8 per cent year-on-year despite China’s lockdowns in part because exports to the US and the EU, which accounted for nearly half of all exports, grew by 25 per cent in the first nine months of the year.

Furthermore, most of Việt Nam’s exports to (and imports from) China were of production inputs and/or other intermediate goods used in the manufacture of electronics and garments. 

Some Vietnamese companies would benefit from China’s reopening, such as those that sell seafood and farm produce, but exports of products consumed by Chinese customers only accounted for around 5 per cent of Việt Nam’s total exports.

Foreign tourism had contributed about 10 per cent of Việt Nam’s GDP pre-COVID, and tourist arrivals were on track to reach 25 per cent of pre-pandemic levels this year.

“We expect the number of foreign tourists will climb above 50 per cent of pre-COVID levels in 2023 based on the assumption that Chinese tourist arrivals fully recover in the second half of next year," the report added.

“However, the pace of recent developments in China point to a possible faster full resumption of Chinese tourist arrivals, which could lead to an even larger contribution to Việt Nam’s GDP growth next year than we currently expect.

“We are aware of concerns some investors have that the reopening of China’s economy could detract from Việt Nam’s appeal as a destination for FDI investment. We see no possibility of this happening given that China has irrevocably damaged its appeal as an investment destination for multinational firms, and US-China trade tensions have dramatically escalated this year.”

Besides, there had been strong structural factors prompting FDI inflows to Việt Nam even before US-China trade tensions had emerged. 

Factory wages in Việt Nam were around two-thirds less than in China, but the quality of Việt Nam’s workforce was comparable to that of China according to surveys by JETRO and others.

Also, Japan and South Korea, which accounted for over half of Việt Nam’s FDI inflows, both faced serious demographic and intractable economic issues that compelled companies in both countries to invest abroad. — VNS   LINK

Henig:  The path to fostering green exports

06:00 | 30/12/2022

(VEN) - Data from the recent Vietnam Export Promotion Forum 2022 organized by the Ministry of Industry and Trade and the European Chamber of Commerce (EuroCham) in Vietnam show that businesses in various sectors have renewed production to meet green manufacturing standards for exports, enhancing the competitiveness of Vietnamese goods in the international market. 

Competitive advantages

Minister of Industry and Trade Nguyen Hong Dien told forum participants that in the first 10 months of 2022, total import-export value reached nearly US$620 billion, up 14 percent year-on-year, with a trade surplus of US$9.4 billion. The foreign trade value is expected to reach US$750 billion by year’s end, up 16 percent compared with 2021, and trade surplus to be maintained, contributing significantly to Vietnam’s economic growth.

Despite favorable export results, Minister Dien warned Vietnamese exporters of numerous difficulties. Specifically, global trade is being affected by growing geopolitical tensions and fierce strategic competition between major countries. Meanwhile, rising inflation has forced many governments to tighten their fiscal and monetary policies. Notably, global supply chains continue to risk disruptions that will affect import-export activities and the growth of the Vietnamese economy due to its high degree of openness (more than 200 percent). Moreover, many importing countries apply strict regulations in terms of environment and social responsibility on imports from Vietnam.

“To achieve sustainable export growth, Vietnamese businesses should promote green manufacturing and join global supply chains to meet strict technical requirements of importing markets. Further, businesses should improve product quality and packaging to enhance their competitiveness,” Minister Dien emphasized.

EuroCham Vietnam Vice Chair Jean-Jacques Bouflet said Vietnam has taken advantage of free trade agreements (FTAs) to diversify and increase exports. However, he added, Vietnam is one of the world’s most vulnerable countries to climate change, and therefore it should focus on ping a green, sustainable economy.

“FTAs involving Vietnam, especially the EU-Vietnam Free Trade Agreement (EVFTA), have commitments to green, sustainable development. EU consumers prefer to buy products made according to green, sustainable production processes. The EU also has very high technical standards for production. Therefore, Vietnamese businesses have to restructure production in this direction. EuroCham pledges to support and cooperate with Vietnam in this field,” Bouflet said, adding that European companies wish to take advantage of the EVFTA to increase investment in Vietnam.

Green growth strategy

The Communist Party and the State of Vietnam have put in place policies and mechanisms creating conditions to develop a green, circular and environmentally friendly economy. The latest one among those is Prime Ministerial Decision 493/QD-TTg approving Vietnam’s goods import-export strategy to 2030.

Businesses in many sectors have increased investment in production equipment and human resource training, while at the same time promoting digital and green transformation to meet the growing customer demand for environmentally friendly products and services.

Bartosz Cieleszynski, Deputy Head of the Trade Section of the EU Delegation to Vietnam:

Creating green product flows

The EU-Vietnam Free Trade Agreement (EVFTA) has a chapter on green growth, helping create “flows” for green products and sustainable development. Vietnam will benefit from green technology application and development. Exporting green products is a promising way, and green technology is not beyond the reach of Vietnamese businesses. To produce green, sustainable products, Vietnamese businesses should apply green technology, starting from key export sectors such as agriculture, forestry and fishery.

Materials used to make products for export to Europe should also abide by sustainability principles and food safety regulations. Vietnamese authorities should help farmers and producers improve product quality to meet sustainable development criteria, including good agricultural practices and organic farming.

Other products such as footwear, textiles and garments can also participate in voluntary certification programs such as the Better Cotton Initiative (BCI), Global Organic Textile Standard (GOTS), and People for the Ethical Treatment of Animals (PETA). EU consumers and importers are very interested in these certification programs, which require biodiversity and soil conservation, sustainable water management, reduced use of pesticide, ensuring minimum and fair wages, elimination of child labor and animal maltreatment. Therefore, Vietnamese manufacturers and trade managers should pay attention to the shopping orientations of EU consumers.

Assoc. Prof. Dr. Nguyen Hong Quan, Director of the Institute for Circular Economy Development under the Vietnam National University, Ho Chi Minh City:

Opening new doors for exports

According to an International Labor Organization (ILO) 2022 report, a shift to green economy models can generate 24 million new jobs by 2030, and 63 percent of consumers consider sustainable development factors of brands when making purchasing decisions, according to a 2022 McKinsey survey. Nielsen’s 2022 Global Annual Marketing Report shows that the global market of green products is growing faster and bringing higher benefits compared with “brown” products of the same categories.

The green economy opens new doors for increased exports through green technology development, enhancing productivity and efficiency, strengthening investor trust, opening new markets, increasing budget revenues through green taxes, and reducing risks in the business environment.

To shift to a green economy, we have to attract investment in eco-industrial parks and build agro-industrial parks to prevent pollution, share energy resources, and develop transport, logistics, human resources and finance. Coordination is required between sectors such as agriculture, industry and trade, natural resources and environment, science and technology, planning and investment, finance, education, transport, and tourism. Breakthrough policies and mechanisms are needed in planning, project preparation, and investment attraction.

Truong Dinh Hoe, Secretary-General of the Vietnam Association of Seafood Exporters and Producers (VASEP):

Positive changes in the seafood sector

Green export strategies have strong impacts on the competitive advantages of seafood processing companies, making their products more attractive to foreign customers, helping build their green business image in the market.

This competitive advantage helps seafood companies achieve high financial efficiency. However, it will take time for seafood companies to implement green export strategies to build this competitive advantage. Therefore, businesses should be encouraged to take the initiative in promoting green production.

Nguyen Thi Lien, Deputy Director of the Phong Phu International Joint Stock Company:

Prioritizing environmentally friendly materials

In the past, the company had to use 40 liters of water to produce a pair of jeans. Today, with support of modern machinery and technology using ozone and laser, we need only four liters of water to make a similar product. Modern technology has also enabled the company to avoid using harmful chemicals, reduce power consumption and minimize industrial exhaust fumes, helping us create sustainable, user-friendly products and protect the environment.

The company also prioritizes the use of organic and recycled materials to meet consumer demand in the era of green, circular economy trends.

Sustainable production helps the company manage the consumption of power, water and chemicals, as well as the discharge of exhaust fumes, creating a better working environment. Our products meet growing customer requirements, enhancing the company’s prestige and helping it attract more orders in the context of increasingly fierce competition.

Ha Duyen & Ngoc Thuy   LINK