Tuesday "Vietnam News" Posted by Henig at KTFA 1-31-2023
KTFA: Vietnem:
Henig: Technology and telecommunications businesses benefit from digital economy
January, 31/2023 - 08:06
Even under the attraction of the field of telecommunications technology, mergers and acquisitions activities in this industry have been promoted.
HÀ NỘI — Technology and telecommunications businesses are expected to continue to benefit from the growth of the digital economy.
Even under the attraction of the field of telecommunications technology, mergers and acquisitions activities in this industry have been promoted.
Analyst Chu Đức Toàn from VNDirect Securities Joint Stock Company said the digital transformation revenue growth rate is expected to be up 18 per cent this year compared to last year and could double that of traditional IT services, showing great potential in the market.
Like the rest of the world, the Vietnamese economy is also undergoing digital transformation.
According to the National Digital Transformation Program to 2025, with a longer-term vision to 2030, Việt Nam's digital economy will account for 20 per cent of GDP by 2025.
Việt Nam has launched the "Make in Việt Nam 4.0" Program to prepare for the Fourth Industrial Revolution.
This programme will facilitate the development of new industries and encourage new policies, thinking and technologies in line with Industry 4.0 and ambitions towards the digital economy.
In the context of strong digital transformation, the Government, organisations and businesses in Việt Nam have actively received and participated in activities to catch up with the trend of the Fourth Industrial Revolution.
The government is promoting the development of the digital economy through a series of mechanisms and policies. These policies have recently been reinforced by the Prime Minister's Directive No 16/CT-TTg on strengthening the accessibility to the Fourth Industrial Revolution.
According to the e-Conomy SEA 2021 report by Google, Temasek and Bain, Việt Nam's digital economy is predicted to reach a value of US$52 billion by 2025, with a compound growth rate of 24 per cent and ranking third in Southeast Asia.
Việt Nam is also a pioneer in 5G technology. 5G network opens a new era for a series of technologies in Việt Nam, which is among the countries with the fastest internet growth globally.
According to Internet World Stats, internet subscribers have increased 343 times from 2000 to 2021.
The growth potential for fixed broadband internet in Việt Nam is still outstanding, with the coverage rate at about 21 subscribers/100 people, which is relatively low compared to the Southeast Asia average of 38 subscribers/100 people.
Việt Nam has become one of the pioneer countries to successfully set up phone calls on the 5G technology platform.
Cisco forecast that the number of 5G subscribers in Việt Nam will reach 6.3 million by 2025.
Moreover, the early deployment of 5G services could help Vietnamese mobile carriers increase revenue by $300 million annually starting in 2025.
Việt Nam may soon become one of the first Southeast Asian countries to launch a 5G network, with domestic telecommunications companies racing to develop the first national network (Viettel, Vinaphone, Mobifone).
With the advent of breakthrough 5G technology, technology firms face many opportunities to develop modern applications to diversify their products and services.
There is also a high demand in the data centre market in Việt Nam. The Vietnamese government's digitalisation trend has facilitated increased demand for data centres nationwide.
Moreover, converting enterprise data to the cloud platform drives the Vietnamese data market.
This has led to an increase in the application of data storage solutions, which will positively affect the market's growth.
In addition, the rising adoption of big data, the Internet of Things (IoT) and cloud-based technology solutions, among others, are expected to accelerate and drive market growth until 2026.
According to research and reporting firm Research And Markets (Ireland), Việt Nam's data centre market is forecast to grow at a compound rate of over 14.6 per cent until 2026.
With political and social stability, and few natural disasters like earthquakes, experts from VNDirect said that Việt Nam has the necessary characteristics to become a big data centre market in the region.
Toàn said that mergers and acquisitions (M&A) activities are promoted under the attraction of the technology sector.
In recent years in Việt Nam, the M&A market in the technology sector has been growing rapidly, especially in enterprises that own or invest in advanced technology and have a large customer database.
The difficult global economy opens up opportunities for businesses with large amounts of cash; despite widespread uncertainty, technology M&A activities are continued and fueled by strong private capital flows.
Although conditions in capital markets have tightened in the first half of last year, many businesses still have large amounts of cash ready to be disbursed.
Among the listed technology companies in Việt Nam, for example, FPT Joint Stock Company is an enterprise with abundant cash, and has actively carried out many M&A deals in the past two years.
— VNS LINK
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Henig: Vietnam posts trade surplus of 3.6 billion USD in January
10:03 | 31/01/2023
Despite decreases in both imports and exports, the country still enjoyed a trade surplus of 3.6 billion USD in the first month of 2023, according to the General Statistics Office (GSO).
The office reported that in the month, total import-export turnover reached 46.56 billion USD, down 17.3% over the previous month and 25% year on year, with exports dropping 21.3% to 25.08 billion USD, and imports falling 28.9% to 21.48 billion USD.
While the domestic sector saw a trade deficit of 1.04 billion USD, the foreign-invested sector (including crude oil) posted a surplus of 4.64 billion USD.
Experts attributed the result to the long New Year and Lunar New Year (Tet) holidays, which were all in January, reducing the number of working days. Last year, the Tet holiday fell in February.
The GSO reported that the manufacturing-processing sector earned the highest export revenue with 22.32 billion USD, accounting for 89% of the country’s total.
Meanwhile, there were three goods groups with imports of over 1 billion USD.
In January, the US remained the biggest importer of Vietnamese goods with a revenue of about 7.6 billion USD, while China was the biggest exporter to Vietnam with 8.1 billion USD.
The GSO held that many countries are facing the threat of inflation and economic recession, leading to reduction in global consumption, thus affecting Vietnam’s import-export activities.
Export activities showed signs of slowing down from the fourth quarter of 2022 with fewer orders, it said, adding that 2023 is likely to be a tough year for Vietnam’s import-export.
According to the Ministry of Industry and Trade (MoIT), Vietnam’s exports depend on many outside factors, but tax reduction from free trade agreements that Vietnam has joined and the strengthening of socio-economic recovery and development will motivate exports this year.
In 2023, the MoIT sets a target of a 6% rise in goods export revenue, with trade surplus maintained.
Source: VNA LINK
Henig: Việt Nam attracts $1.69 billion in foreign investment in January
January, 31/2023 - 08:57
One bright spot in January was that 153 new foreign-invested projects, valued at $1.2 billion granted licences, up 48.5 per cent in number and 3.1 times in value which was a signal to confirm the confidence of foreign investors in the investment environment of Việt Nam, the FIA said.
HÀ NỘI — Việt Nam lured US$1.69 billion worth of foreign investment in the first month of 2023, down 19.8 per cent year-on-year, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
One bright spot in January was that 153 new foreign-invested projects, valued at $1.2 billion, were granted licenses, up 48.5 per cent in number and 3.1 times in value, which was a signal to confirm the confidence of foreign investors in the investment environment of Việt Nam, the FIA said.
During the month, capital added in operating projects by foreign investors saw a yearly decline of 76 per cent to $306.3 million while their capital contributions and share purchases also declined 61 per cent year-on-year to over $174 million.
At the same time, disbursed capital also witnessed a decline of 16.3 per cent to an estimated $1.35 billion in the first month, the FIA said, adding that the processing and manufacturing industry saw $1.05 billion worth of foreign investment disbursed, making up 77.6 per cent of the total.
Since January saw two long holidays - New Year and Lunar New Year, the decrease recorded in registered foreign investment capital, or even disbursement, had not yet reflected the general trend of foreign investment capital flows to Việt Nam in 2023, according to the agency.
Projects related to wholesale, retail, and repair of automobiles and motorised vehicles accounted for the lion’s share of the total registered sum, at 54.1 per cent or $651.9 million. They were followed by those in the processing and manufacturing industry, which together registered $351.2 million in capital or equivalent to 29.1 per cent and those in other sectors at $202 million or 16.8 per cent.
Also in January, 28 foreign countries and territories invested in Việt Nam. Singapore was the largest with $767.6 million, followed by China with $198.2 million.
Meanwhile, Vietnamese investors poured $126.7 million into their projects overseas, increasing by 3.4 times against the same month in 2022.
Among three countries and territories receiving investment from Việt Nam, South Korea was the leading country with $125.1 million, accounting for 98.7 per cent of total investment capital; followed by Thailand ($1.5 million or 1.2 per cent); and Laos ($140,000 or 0.1 per cent).
Foreign investment bonanza
Việt Nam is expected to attract a lot of FDI this year due to its impressive economic performance in 2022, improved business climate and the advantages brought by the free trade agreements it has signed, experts said.
Đỗ Văn Sử, deputy director of the Department of Foreign Investment, said Việt Nam is likely to attract $36-38 billion worth of FDI in 2023.
South Korea, Japan and Taiwan (China) are expected to be among the main sources of investment as they continue to pump money into Southeast Asia.
Economist Lê Đăng Doanh said the country needs to further speed up administrative reforms, improve its investment environment and ensure policy stability.
Minister of Planning and Investment Nguyễn Chí Dũng said priority would be given to projects that use new and green technologies and have high added value.
Though there are admittedly still problems related to human resource quality, Việt Nam remains an appealing destination for foreign investors due to its supportive policies, he added.
A recent survey done by the Ministry of Planning and Investment found 76 per cent of enterprises saying they were satisfied with the Government’s support policies.
They were most satisfied with the VAT waiver and reduction policies, and those to stabilise gasoline prices, improve the work permit issuance process and customs clearance procedures, and support import- export and workers’ livelihoods.
To continue to attract foreign investment, Dũng said it is vital for Việt Nam to develop innovation and financial centres at the regional and international levels.
It is also important to stabilise the economy and improve infrastructure and the quality of human resources, he added.
Last year FDI was worth nearly $22.4 billion, according to the General Statistics Office.
Of the more than 100 nations and territories investing last year, Singapore topped with $6.46 billion, followed by South Korea ($4.88 billion) and Japan ($4.78 billion).
They invested in 54 provinces and cities of which HCM City attracted the most: $3.94 billion.
Bình Dương was second with $3.14 billion and Quảng Ninh was third with $2.37 billion.
— VNS LINK
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Henig: Foreign suppliers have paid taxes worth $76.7 million via official portal
January, 31/2023 - 08:38
The General Department of Taxation’s portal https://etaxvn.gdt.gov.vn/nccnn/Reques was exclusively developed for foreign suppliers and put in place on March 21 last year.
HÀ NỘI — Foreign suppliers have paid taxes worth VNĐ1.8 trillion (US$76.7 million) via the official portal serving their operations in Việt Nam.
Of the sum, Meta (Facebook) contributed 34.5 million EUR, Google $28.8 million, and Apple VNĐ174 billion.
The General Department of Taxation’s portal https://etaxvn.gdt.gov.vn/nccnn/Reques was exclusively developed for foreign suppliers and put in place on March 21 last year.
So far, it has seen 45 suppliers registering and paying taxes.
The General Department of Taxation said that this was a very good signal in the co-ordination of tax declaration and collection between Vietnamese tax authorities and foreign suppliers right from the beginning of the new year.
This shows the trust, prestige and serious observance of tax laws by foreign suppliers for e-commerce and digital-based business activities in the territory of Việt Nam.
The total tax collected through the electronic portal for foreign suppliers is VNĐ3.4 trillion as of the end of last year.
Notably, six suppliers including Google, Facebook, Microsoft, TikTok, Netflix, and Apple - the units that hold the majority of market share in e-commerce service revenue doing business on cross-border digital platforms in Việt Nam – have registered, declared and paid tax in Việt Nam.
However, besides the above figures, tax administration for e-commerce activities and business on digital platforms still faces many challenges for the tax industry.
— VNS LINK
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Henig: PM inspects national key transport projects
09:36 | 31/01/2023
The first phase of the 652.86km North-South Expressway has 11 component projects, three of which are invested in public-private partnerships (PPP). The rest, including the Mai Sơn-National Highway 45 project, are funded with public investment.
Prime Minister Phạm Minh Chính has asked the ministries, agencies, localities and investors of several national key transport projects to hasten their implementation without sacrificing quality.
PM made the request while inspecting the Mai Sơn-National Highway 45 project, which passes through the northern Ninh Bình Province and is a part of the North-South Expressway.
The first phase of the 652.86km North-South Expressway has 11 component projects, three of which are invested in public-private partnerships (PPP). The rest, including the Mai Sơn-National Highway 45 project, are funded with public investment.
The Mai Sơn-National Highway 45 section has a total length of 63.37km and an investment of VNĐ12.11 trillion (US$561.03 million). Its construction started in September 2020 and is scheduled for completion on April 30, 2023. So far, 83.7 per cent of all workload has been finished.
PM Chính took the occasion to pay New Year's visits to workers in construction sites along the route and relocated residents at the resettlement area in Đông Minh Commune, Đông Sơn District of central Thanh Hoá Province.
He later moved on to examine the Diễn Châu-Bãi Vọt project, another component of the North-South Expressway, which connects Nghệ An and Hà Tĩnh provinces.
The PM held a working session with relevant ministries, sectors and localities implementing the North-South Expressway component projects in the first and second phases.
On Sunday, PM Chính asked the southern province of Đồng Nai to complete the handover of cleared ground for the first-stage construction of Long Thành International Airport by the end of this first quarter.
During a working session with ministries, agencies, localities and stakeholders of the project, after making a fact-finding trip earlier the same day to the construction site, he assigned them responsibility for the work under their watch and solving existing issues.
The Government has directed the establishment of a working group led by Deputy Prime Minister Trần Hồng Hà to oversee and speed up the project, PM Chính revealed.
He requested the investor to make a specific plan for each item at a specific time while supervising the implementation of the tasks. Local authorities must focus on handling the site clearance work, accelerating progress while ensuring the quality of the project, and avoiding dividing bidding packages.
By the end of the first quarter of 2023, the entire site for the first phase must be handed over for the project's construction. By the end of the second quarter of this year, he said the site for construction of the logistics road and the access road to the airport must be ready.
Covering a total area of more than 5,580ha, the Long Thành International Airport will spread across six communes in the Long Thành District in Đồng Nai Province. The airport’s total investment is VNĐ336.63 trillion ($14.6 billion), with construction divided into three phases.
In the first phase, a runway and one passenger terminal, along with other supporting facilities, will be built at a cost of VNĐ109.112 trillion to serve 25 million passengers and 1.2 million tonnes of cargo each year.
The project started in 2021. Once fully completed by 2050, the airport will be able to handle 100 million passengers and 5 million tonnes of cargo annually.
Located 40km east of HCM City, the airport is expected to relieve overloading at Tân Sơn Nhất International Airport in the southern metropolis, now the country’s largest airport.
PM Chính and the delegation also visited the resettlement area for those who are affected by the project in Lộc An and Bình Sơn communes in Long Thành District. The resettlement area has an area of 280ha, giving accommodation for 7,000 households. Currently, about 1,500 households are living in the area.
Source: VNS LINK