Thursday "Vietnam News" Posted by Henig at KTFA 2-2-2023

KTFA: Vietnam

Henig:  Hanoi eyes 950 firms in support industries this year

06:00 | 02/02/2023

Hanoi has set a target to have about 950 enterprises operating in the field of supporting industries this year, an increase of approximately 20 compared to 2022.

Of the total, there will be about 300 - 350 firms with production systems and products with international standards and sufficient supply capacity serving participation in the global production network of multinational conglomerates in Vietnam.

As a result, industrial production value of the industries is expected to account for some 16 - 17% of the capital city processing and manufacturing production value, with the development index of the industries exceeding 11-12%, an annual rise of about 1%.

To this end, the local authorities will hire experts for technical consultation, as well as assist firms in receiving technology transfer, conducting research and development activities, and applying management systems meeting global supply chains’ requirements, among others.

The city also planned a support industry expo this year with a scale of between 200 and 300 stalls, attracting the participation of international companies from Japan, Taiwan (China), Hong Kong (China), and Thailand.

Source: VNA    LINK

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Henig:  Vietnam pursues green foreign trade

06:00 | 02/02/2023

(VEN) - Vietnam reached a record foreign trade value of an estimated US$750 billion in 2022. Vietnam Economic News’ Phuong Lan spoke with Tran Thanh Hai, Deputy Director of the Ministry of Industry and Trade’s Agency of Foreign Trade about export growth and efforts to promote green, sustainable foreign trade.

Could you tell us about Vietnam’s trade achievements in 2022?

In the first 11 months of 2022, despite numerous difficulties in the world market, Vietnam earned export revenue of US$342.2 billion, up 13.4 percent from the same period of 2021. The 2022 figure is expected to increase 11-12 percent over 2021’s, exceeding the target set by the government. Vietnam exported US$10.7 billion and is expected to export US$10-12 billion more than it imported in the first 11 months and the whole year of 2022, respectively.

Processed industrial products yielded export revenue of US$294.6 billion in the first 11 months of 2022, up 13.4 percent from the same period in 2021 and accounting for 86.1 percent of the country’s total.

Meanwhile, farm produce and seafood exports grew 11.6 percent, and fuel and mineral exports soared 34.2 percent.

Exports to all markets recovered compared to 2021. According to the General Department of Vietnam Customs, in the first 11 months of 2022, exports to the US, China, the Republic of Korea (RoK), and countries and territories that are Vietnam’s FTA signatories, including the EU, ASEAN (Association of Southeast Asian Nations), Australia, Canada, and Japan maintained significant growth.

What is your assessment of Prime Ministerial Decision 493/QD-TTg on Vietnam’s goods import and export strategy to 2030?

The government set a 6-7 percent annual goods export growth target for the 2021-2030 period. Under the strategy, Vietnam will seek sustainable export development instead of rapid export growth, which will be promoted with a harmonized export structure, green, fair and balanced trade, short- and long-term development goals, social equality, and environmental protection. The target is lower than the two-digit export growth Vietnam achieved even in difficult periods but it reflects the government’s goal for environmental and natural resource protection, as well as a better future for the nation’s younger generations. Businesses need to pay due attention to this orientation in order to reach sustainable export development.

What is your assessment of 2023 export prospects?

The world economy and global trade are expected to face further difficulties in 2023. Meanwhile, free trade agreements (FTAs) with tariff reduction roadmaps, socioeconomic recovery programs, and efficient domestic and foreign investment attraction will become the driving force of production and export development. Vietnamese businesses are expected to further take the initiative in creative new market approach, and make use of FTA advantages to maintain and develop exports in 2023.

They need to further improve competitiveness and create high-quality, reasonable-price products that meet standards of discerning foreign markets. Business associations and sectors need to continue connecting state management agencies with businesses, and protect the legitimate rights and interests of enterprises in international trade disputes.

Phuong Lan   LINK

Henig:  Vietnamese university up 97 places in Webometrics ranking

10:00 | 02/02/2023

Vietnam National University (VNU) - Hanoi climbed 97 places to rank 661st in the latest Webometrics Ranking of World Universities in 2023, which was announced on February 1 by the Cybermetrics Lab, a member of the Spanish National Research Lab.

Vietnam National University (VNU) - Hanoi climbed 97 places to rank 661st in the latest Webometrics Ranking of World Universities in 2023, which was announced on February 1 by the Cybermetrics Lab, a member of the Spanish National Research Lab.
The university also remains the No.1 among the top 10 Vietnamese establishments named in the list. Others include Ton Duc Thang University, Duy Tan University, Nguyen Tat Thanh University, Hanoi University of Science and Technology, Ho Chi Minh City University of Technology, University of Economics Ho Chi Minh City, Industrial University of Ho Chi Minh City, Da Nang University and Can Tho University.

Since 2004, the Webometrics Ranking is published twice a year, covering more than 31,000 higher education institutions worldwide.

It is a ranking chart to assess the digitalisation capacity and impact, academic resources of higher education institutions based on indicators of volume of the website content (presence), the extent of website system and online information’s impact (impact/visibility), openness on academic resources on Google Scholar (openness), and scientific citation index on Scopus database system (excellence) of a higher education institution.

Source: VNA    LINK

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Henig:  Garment, footwear exports aim to reach US$80 billion by 2025

07:00 | 02/02/2023

Under the development strategy approved by the Government, for the long term, the garment, textile, leather and footwear sectors are still key export industries of the economy.

Việt Nam's textile, garment and footwear sectors aim to achieve a total export value of US$77-80 billion in 2025 and $106-108 billion in 2030, according to the strategy for the development of Việt Nam's textile and footwear industry.

Under the development strategy approved by the Government, for the long term, the garment, textile, leather and footwear sectors are still key export industries of the economy.

Of which, the textile, garment, leather and footwear sectors continue to promote investment in the production of materials and auxiliary materials, as well as supporting industries.

They will encourage the production of fabrics from domestically produced yarn to reduce imports, and form a complete supply and value chain in the region.

For the leather and footwear industry, Nguyễn Đức Thuấn, chairman of Lefaso, said domestic enterprises needed to actively adapt to the requirements of the market and brands on sustainable development standards for products. They must reduce emissions in the production process, and increase the use of solar energy and highly sustainable products.

Also, according to the strategy, Việt Nam's textile and garment industry expects export turnover to reach $50-52 billion in 2025 and $68-70 billion in 2030.

The strategy also states that developing the fashion industry is considered a new direction. Accordingly, this sector will focus on developing designers, and raw material supply, production and distribution systems to form supply chains and create sustainable foundations for the development of Việt Nam's fashion industry as well as fashion centres in Hà Nội and HCM City.

The strategy encourages enterprises to gradually switch their production methods to FOB (free on board) and ODM (original design manufacturer) to add value to products, and build a private brand to improve the competitiveness of the businesses and products.

Materials are the most difficult factor in the textile and garment industry. Therefore, to promote the development of the textile and garment supporting industry, the textile and garment industry strives to have a localisation rate at 51-55 per cent in 2021 - 2025 and 56-60 per cent in 2026-2030.

To achieve this goal, it is necessary to attract investment in the development of supporting industries and the production of raw materials and accessories for the textile and garment industry based on advantages in the free trade agreements Việt Nam has joined.

The projects to develop the supporting industry and the production of raw materials and accessories should be built in regions with a number of textile and garment enterprises to reduce transport charges and production cost and improve competitiveness.

The strategy also mentions the role of State management agencies in encouraging enterprises to invest in producing fiber, yarn, textile and dyeing with advanced technology and connections with domestic garment enterprises.

This approved textile and garment development strategy will help form industrial parks with wastewater treatment areas to attract textile and dyeing projects. Now, the infrastructure for textile, dyeing and fabric production is still limited.

Domestic fabric production only reaches 2 billion metres per year, meeting 25-30 per cent of the demand of the garment industry. Việt Nam's textile and garment industry currently must import 60-70 per cent of the raw materials. Việt Nam has joined many FTAs, creating conditions for textiles and garments to expand export markets with the tariff gradually reducing to zero.

According to Chairman of the Việt Nam Textile and Apparel Association Vũ Đức Giang, in the first quarter of 2023, the number of export orders decreased by 25-27 per cent due to the decrease in global purchasing power.

Therefore, businesses can produce lower-value products, and diversify markets and products to keep production and promote growth.

Chairman of Vinatex Lê Tiến Trường said that many businesses now only ran 70-80 per cent of production capacity due to a reduction in consumer demand. So, Vinatex was now focusing on raw material production more than garment production. The materials were always the first step in greening, creating a foundation for qualified materials as green requirements of the US and Europe.

Vinatex had organised the production of yarn products from recycled materials or organic materials. At the same time, the raw material production factories were equipped with solar power to meet green energy standards.

According to forecasts, the situation of Việt Nam's textile and garment industry in 2023 would be worse than in 2022. Therefore, businesses needed to follow the market's developments to have flexible solutions to ensure efficiency in production and business, as well as promote the export of goods, Trường said.

Source: VNS    LINK

KTFA Members "News and Views" Thursday 2-2-2023

KTFA:

Clare:  Days after a banking procedure.. King Salman relieves the governor of the Saudi Central Bank

2/2/2023

The Saudi King Salman bin Abdulaziz issued, on Thursday, a royal order relieving the governor of the Saudi Central Bank of his post and appointing a successor.

And the Saudi Press Agency, "SPA", published the royal order, in which it stated: "(...) Fahd bin Abdullah bin Abdul Latif Al-Mubarak, Governor of the Saudi Central Bank, is relieved of his post."

He added, "(...) Ayman bin Muhammad bin Saud al-Sayyari is appointed as governor of the Saudi Central Bank, with the rank of minister."

After he was relieved of his post, the dismissed governor of the Central Bank was appointed as an advisor at the Royal Court, with the rank of minister.

The Saudi Central Bank had decided a few days ago to raise the rate of the repo agreement by 25 basis points to 5.25 percent, and to raise the rate of the reverse repo agreement by 25 basis points to 4.75 percent.     LINK

Clare:  urgent... Lavrov will visit Baghdad next Sunday

2/2/2023

The Russian Foreign Minister, Sergey Lavrov, will visit Baghdad early next week.

"Lavrov will visit Iraq on the fifth of this month," Ahmed al-Sahhaf, spokesman for the Iraqi Foreign Ministry, said in a press statement.

He added, "The visit will be on February 5 and 6, and [Lavrov] will meet with Foreign Minister Fuad Hussein, and they will discuss a sentence of a common nature, and they will discuss the security and stability of the region and Iraq's active role in that, and they will confirm the most important understandings of a vital and strategic nature between the two countries."

Lavrov's visit comes days after the visit of Saudi Foreign Minister Faisal bin Farhan, who arrived in the capital, Baghdad.    LINK

4CASH:  Looks like Russia wants to dance with the prettiest lady in town IMO!!!!

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Clare:  Parliamentary Finance announces its readiness to receive the budget law

2/2/2023

The Parliamentary Finance Committee announced today, Thursday, its readiness to receive the federal budget law for the year 2023.

A member of the committee, Jamal Cougar, told Al-Furat News that: "The committee is ready to receive the budget law and start working on it as soon as it reaches Parliament."

Cougar indicated, "There is still no talk or preliminary date for the government to send the budget law."
And Prime Minister Muhammad Shia Al-Sudani announced that his government is nearing the completion of preparing the draft budget law for the year 2023.

For its part, the Parliamentary Finance Committee called on the government to expedite sending the draft general federal budget law for the year 2023 after forming the government and electing the heads of parliamentary committees.

From: Raghad Dahham    LINK

Zeeman:  you might be ready to receive the budget but first it must be finished. this has been going on since the end of nov. how much more time do you need? imo

Paulette:  Hopefully, enough time to "reinstitute" the NSCN's prior to the GOI passing it and sending it on to Parliament......Also, an agreement on the Oil and Gas Law, Article 140 implementation and Kurd budget appropriations would be nice....

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Clare:  Blaskhart: Iraq is one of the countries most contaminated with explosive ordnance, and mine clearance efforts are continuing

2/02/2023

Briefing of the UN representative, Jeanine Plasschaert, before the UN Security Council on the situation in Iraq:

Any government needs political support to achieve the aspirations of the people

The government has taken many steps to combat corruption

 The government is making more efforts to recover the smuggled money

 We have identified remarkable progress in the work of the current government in the field of combating corruption

Real change requires economic and political reforms in Iraq

We look forward to speeding up the approval of the 2023 budget

Iraq should prioritize diversification of the economy

The Iraqi government confirmed its commitment to settling disputes with Erbil

Baghdad and Erbil continue their dialogues in order to reach a sustainable agreement

The Iraqi government continues its policy of openness and respect for the principles of sovereignty

Iraq is one of the countries most contaminated with explosive ordnance, and mine clearance efforts are continuing   LINK

Henig:  An Iraqi delegation to Washington: pledges to cut dollar smuggling routes

Arab reports  Baghdad  Hossam Muhammad Ali   February 02, 2023

Well-informed sources in the Iraqi capital, Baghdad, revealed, yesterday, Wednesday, information related to the mission of the Iraqi government delegation, which is preparing to go to Washington in the coming days, headed by Foreign Minister Fuad Hussein.

A spokesman for the Iraqi Ministry of Foreign Affairs, Ahmed Al-Sahaf, told Al-Araby Al-Jadeed that the delegation will be headed by Deputy Prime Minister and Minister of Foreign Affairs Fuad Hussein, with the membership of financial and banking officials.

Al-Sahhaf added, "The discussions will be based on the strategic framework agreement, and the strengthening of bilateral cooperation in various fields, especially with regard to the issue of the dollar exchange rate hike and the coordination and cooperation mechanisms in this aspect, and in a way that reflects the response of the Iraqi government in supporting its economic and financial vision, in order to achieve a response to the preservation of public money." It appoints citizens," and he continued, "The meetings and visits of diplomatic delegations between the two sides continue, because the relationship is strategic and calls for joint and permanent cooperation."

In parallel, an Iraqi government official revealed to Al-Araby Al-Jadeed that “the delegation will include in its membership, in addition to its head, Foreign Minister Fuad Hussein, Finance Minister Taif Sami, Central Bank Governor Ali Al-Alaq, and other government officials, and the meetings will be held in the presence of officials.” Millions of senior Americans and the US ambassador to Iraq, Elena Romanowski.

The official, who asked not to be named, explained that "the delegation scheduled to visit (in principle) on the seventh of this month to Washington will carry assurances to the American side regarding the recent Iraqi measures in the currency auction, and its endeavor to prevent its arrival to countries covered by US sanctions, such as Iran and Syria." ".

The official continued: "There will be Iraqi pledges regarding this and an explanation of the recent procedures that Iraq followed with regard to smuggling hard currency, and the delegation will propose reducing the requirements imposed by the US Federal Bank on Iraq regarding the arrival of the dollar to Iraq, and demanding the implementation of the US federal conditions gradually and not all at once." With the aim of enabling the Iraqi banking system and banks to adapt to the new electronic platform for selling hard currency in Iraq, and also to assure merchants that the US measures are not intended to restrict or freeze the movement of their money.

Implement a set of financial reforms

He pointed out that "the government, represented by the Ministry of Finance and the Central Bank, has implemented a set of financial reforms, which confirm Baghdad's keenness to stop dollar smuggling operations. According to confirmed information, smuggling has decreased a lot, and has become in a very limited scope thanks to the sobriety of the government and the bank's procedures."

The source pointed out that "the delegation will reveal to the American side the results made by the Central Bank and the Ministry of Finance in tracking down smuggling operations, which resulted in stopping many of them, as well as withholding dollar sales from those suspected of smuggling. All of these we believe will prompt the American side to show understanding flexibility, taking into account Iraq's economic situation allows for a near decline in the price of the dollar.

Evidence of Iran's access to the dollar

And he talked about "the Americans presented, earlier last month, evidence that Iran obtained large sums of dollars through Iraq in various ways, and that Iran uses what it gets from dollars in its nuclear program."

On the talk of Prime Minister Muhammad Shia al- Sudani that all possibilities exist regarding determining the exchange rate in the 2023 budget, and whether there is a tendency to make it below 1,400 dinars to the dollar, the official stressed that “the government and the central bank are awaiting the outcome of the upcoming negotiations in Washington, and the proposed price may be modified.” below the current price of 1,450 dinars. There are several options on the discussion table that are subject to developments in the situation.

Reducing dollar smuggling to Iran, Syria and Lebanon

For his part, a source in the Ministry of Finance confirmed to Al-Araby Al-Jadeed that “the US restrictions imposed on the movement of the dollar contributed to reducing 70 percent of its smuggling operations to Iran, Syria and Lebanon, and 80 percent of Iraqi bank transfers were banned in the three months.” The past is the result of confirmed, or almost confirmed, suspicions that the final beneficiaries are linked to prohibited parties in the three countries.

He added, "US Ambassador Elena Romanowski informed the Iraqi Foreign Minister during their meeting, last Tuesday, that Washington insists on proceeding with the measures applied to prevent smuggling of dollars sold in Iraq , and that Baghdad should take stricter measures by banning its access to suspects of smuggling, especially since the banking and security agencies Al-Iraqiya identified those, according to what Iraqi officials told us.

And the source in the Ministry of Finance continued, "The Iraqi Foreign Minister informed the ambassador that the visiting delegation to Washington soon prepared a number of sober proposals, which would reassure the American side of the success of the Iraqi government's steps in consolidating the sale of the dollar and preventing its smuggling, and that it is proceeding with its procedures and will not back down from it." That "Iraq is facing US measures as a result of smuggling dollars to Iran, Syria and Lebanon to parties facing US sanctions, and through crooked ways," referring to the Lebanese "Hezbollah".

According to an official statement issued by the Ministry of Foreign Affairs, last Tuesday, the minister's meeting with the US ambassador discussed the files of the upcoming visit, which will include a high-level Iraqi delegation of economic officials, the work program and the meetings that will discuss political and economic issues, and aspects related to the Iraqi and American currencies.

The Parliamentary Finance Committee believes that the visit should provide clear mechanisms to reassure the American side, to be followed by the implementation of a strategy that allows Iraq to control the oil sales funds deposited in the Federal Bank, so as not to be used as a pressure card.

Committee member Moein Al-Kazemi confirmed, in an interview with Al-Araby Al-Jadeed, that “there must be an understanding between Baghdad and Washington in the dollar file and through the highest official levels, to establish joint mechanisms related to the mechanism of money movement , which simplifies the procedures for obtaining it by merchants for import purposes.” Because the Federal Bank's actions restricted the movement of the dollar, and delayed money transfers from the Central Bank to banks abroad.

Persuading America of the Iraqi procedures

He added, "The visiting Iraqi delegation will be able to convince the American side of the Iraqi measures, in the event that it presents a practical mechanism and a solid strategy, which guarantees the sobriety of the process of selling the dollar in the currency auction at the Central Bank, through real financial invoices for importing materials and clarifying the origins of the import, and not being from countries that have a ban." From Washington, and this will leave no room for objection from the US Federal Bank, and we believe that it is possible to achieve this.

He pointed out, "If the American side insists on the restrictions, despite the Iraqi assurances, we advise that the government and the central bank go towards adopting the euro as a foreign currency, and we do not forget that the euro and the dollar are in solidarity regarding the restrictions imposed on certain countries to prevent foreign currency from reaching them, and for this we believe The realistic and optimal solution that achieves long-term stability is to adopt a strategy that encourages Iraqi industries and national products, and reduces the need for imports, and therefore the need for dollars will be less.

Freeing Iraq's funds from the control of the "federal"

He stressed that "this strategy must be accompanied by efforts to liberate Iraq's money from the control of the US Federal Bank, as it is not reasonable for us to continue depositing oil sales money with the US side, even though it is Iraq's money, and it must have sovereignty over it." Part of the Iraqi sums there is transferred to buy gold, and it is withdrawn in Iraqi dinars, which is in line with international financial standards.

On Tuesday evening, Al-Sudani said, in an interview with state television, that a government delegation will leave for Washington soon, stressing that his visit to Washington has not yet been set for a date.

This was confirmed by diplomatic sources in Baghdad, to Al-Araby Al-Jadeed, by saying that the American side requested more time to study the files of Al-Sudani’s visit so that it would be fruitful and culminate in agreements that enhance bilateral cooperation in strategic files between Baghdad and Washington, adding that the upcoming visit of the Iraqi delegation may pave the way for agreements that allow Set the date of the visit.

And Al-Sudani acknowledged, in his appearance last Tuesday evening, the smuggling of US dollars from Iraq " through forged invoices , and the central bank and the previous government were supposed to implement an agreed-upon mechanism to control the movement of money called (compliance standards) for the global banking system."

And he indicated that "a memorandum signed by the Central Bank of Iraq (with the US Federal Reserve) two years ago to proceed with these procedures so that the central transfer system would be through an electronic platform and be audited, but the procedures were not at the required level in terms of qualifying banks for this system."

The electronic platform for selling dollars in Iraq, under the supervision of the Central Bank, allows the United States to monitor the amounts that come out of the Central Bank and the beneficiaries from banks, companies and businessmen.

Over the past years, an average of $170 million was sold daily through what is known as the dollar auction, in which merchants, banks, and companies participate, without monitoring the end of those funds, which are often classified as import trade for the local market, or foreign transfers.

Experts say that Iran, the Bashar al-Assad regime, and Lebanese parties obtain large quantities of them under the pretext of importing food and construction materials, without any of these materials arriving.

The use of the electronic platform led the same parties to go to the local market to obtain the dollar in any amount, which raised the value of the dollar as a result of the increased demand for it, despite the security forces carrying out a campaign of arrests against what they described as hard currency speculators.    LINK

KTFA Wednesday Night CC "The World Pours Into Iraq's Reforms" 2-1-2023

KTFA

Wednesday Night KTFA Conference Call

Frank26:  2-1-23…….THE WORLD POURS INTO IRAQ’S REFORMS

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

What Frank’s suit color’s mean…. FRANKS SUIT COLORS FOR CC'S..... WHITE = NEW INFO…. SILVER = INTEL FROZEN…. RED= HIGH ALERT… PURPLE=GUEST WITH US…. BLUE = AIR FORCE…. BLACK = GROUND/FF’S…. GREEN= MR OR FAB 4 ... GOLD = CHANGE

https://www.youtube.com/watch?v=BNk4AfEe1VQ

Wednesday "Vietnam News" Posted by Henig at KTFA 2-1-2023

KTFA: Vietnam: 

Henig:  Seeking driving force for 2023 economic growth

06:00 | 01/02/2023

(VEN) - On the threshold of the New Year, economist Dr. Nguyen Dinh Cung, former director of the Central Institute for Economic Management, sums up the Vietnamese economy’s 2022 results and provides his forecast for 2023 growth.

Growth exceeds forecast

In 2022, the positive growth of the Vietnamese economy exceeded the forecasts of domestic and foreign economists and organizations. In the first three quarters of the year, Vietnam’s gross domestic product (GDP) increased 8.83 percent compared with the same period of 2021 - the highest nine-month GDP growth since 2011. Notably, in the third quarter, according to data from the General Statistics Office of Vietnam, the GDP grew 13.67 percent year-on-year.

The 2022 annual GDP growth was forecast to reach eight percent, exceeding the 6.5 percent target set by the National Assembly and the Government.

Vietnam’s 2022 economic growth was attributed first of all to the Government’s management efforts. Notably, Vietnam received global recognition for its flexibility in coping with the COVID-19 pandemic and vaccinations. In October 2021, the Government issued Resolution 128/NQ-CP on safe and flexible adaption to COVID-19, reopening the economy for recovery and resuming growth.

In 2022, the Government also maintained macroeconomic stability. In the context of unprecedented inflation in many countries, Vietnam successfully curbed the inflation rate at below four percent. The participation in new-generation free trade agreements (FTAs) has helped Vietnam maintain and even increase exports despite the impact of China’s Zero COVID policy on exports to this market. The 2022 annual import-export value is predicted to reach US$700 billion, a new record compared with US$668.5 billion in 2021.

However, the impressive economic growth of the first three quarters of 2022, especially the third quarter, can hardly be maintained in 2023 and ensuing years. In the fourth quarter of 2022, Vietnam’s GDP growth slowed down. To achieve the 6.5-percent growth target set by the National Assembly for 2023, the Government, ministries and localities should take timely and flexible measures in response to changes in the domestic and global economic situation.

Driving force for 2023 growth

To maintain macroeconomic stability in 2023, Vietnam is pursuing the goal of curbing inflation at below 4.5 percent. However, inflation control requires tightened fiscal and monetary policies, which will hinder business access to capital resources for production expansion. Therefore, flexible inflation control is necessary to promote economic growth in 2023.

The business community contributes significantly to Vietnam’s economic growth. To facilitate business operations, the government, ministries and localities should further improve the investment and business environment, restrict inspections and create favorable conditions for business access to loans with low interest rates. Reducing land rent and taxes for businesses through the Government’s Economic Recovery and Development Program is one of the measures to help Vietnam maintain economic growth in 2023 and ensuing years.

Notably, it is necessary to accelerate public investment disbursement due to its heavy impact on the entire economy, the liquidity of credit institutions and business access to capital resources.

The 2022 annual GDP growth was forecast to reach eight percent, exceeding the 6.5 percent target set by the National Assembly and the Government.

Nguyen Hoa   LINK

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Henig:  Mong Cai international border gate busy after Tet holiday

10:52 | 01/02/2023

Import-export activities at the Mong Cai International Border Gate have turned busy as the border gate reopened on January 28 after 7-day closure for Lunar New Year (Tet) celebration.

Only on the morning of January 28, 120 vehicles carrying more than 600 tonnes of products and container trucks carrying electronic items traversed the border gate.

Head of the Mong Cai International Border Gate Management Board Tran Bich Ngoc said that in the first 30 days of 2023, nearly 73,500 tonnes of products were traded via the border gate, a year-on-year increase of 13.5 percent.

At the Bac Luan Bridge II border gate in the Mong Cai International Border Gate, on average 94 vehicles with about 1,500 tonnes of import and export goods traversed daily.

At the opening of Km3 4 Hai Yen, an average of 147 vehicles with nearly 1,900 tons of goods are cleared daily.

Exports from Vietnam to China are mainly fruits, tapioca, aquacultural products, and dry goods.

Imports from China to Vietnam are mainly fabrics and electronic components.

From January 8 when China reopened its borders, the number of people entering and leaving Vietnam through the Mong Cai border gate has reached 5,361. Of the total, 889 people, most of them Vietnamese, entered while 4,472 people, mostly Chinese, left the country.

Source: VNA   LINK

Henig:  State-owned banks under capital increase pressure

10:52 | 01/02/2023

Vietnam’s four biggest State-owned banks have an urgent need for capital increase in 2023 as their charter capital is too low, with some unable to ensure the regulated minimum capital adequacy ratio (CAR), according to industry insiders.

Currently, the big four, including BIDV, Vietcombank, Agribank and VietinBank, only hold more than 40 percent of the credit market share of the country’s banking system, but over the years, especially in the past three years, the banks have been a key force in supporting the economy to overcome the difficulties caused by the COVID-19 pandemic and global economic uncertainties. However, they are facing difficulties in terms of capital.

According to Agribank’s chairman Phạm Đức Ấn, at the current credit scale, Agribank is unable to ensure the minimum CAR to get higher credit growth due to the low charter capital, which caused the bank to have a low credit growth in 2022 compared to the average rate of the banking system.

Increasing charter capital for Agribank is very urgent as only when the minimum CAR is ensured for developing credit right from the beginning of 2023, Agribank has the resources to serve the capital needs of the economy, especially in rural areas, Ấn noted, suggesting that the Government should advance the VND6.75 trillion of charter capital for Agribank as an estimated plan approved by the National Assembly.

Despite having a proactive advantage over Agribank, the three remaining State-owned banks still have to wait for the Government’s approval in order to raise capital as expected. There are many potential risks for the three banks as their CAR is currently just slightly above the regulated minimum. Therefore, BIDV’s chairman Phan Đức Tú requested the Government, the Ministry of Finance and the SBV continue allowing State-owned banks to use their after-tax profits after deducting funds in 2022 to increase charter capital in a move to enhance their financial resources and ensure the CAR.

For Vietcombank, though the bank has taken many measures to increase charter capital, its CAR is still very modest compared to its development needs as well as international standards. The bank’s chairman Phạm Quang Dũng proposed the Government and the SBV continue to give priority to the charter capital increase of State-owned banks.

Vietcombank is looking forward to soon being approved by the Prime Minister to increase its charter capital from the retained profits in 2019 and 2020 after deducting funds, which has been agreed by the SBV and the Ministry of Finance to submit to the Prime Minister. In 2023, Vietcombank plans to ask the SBV to submit to the bank’s general meeting of shareholders to further increase its charter capital from all the remaining accumulated profits in 2021 and the previous years.

As the Prime Minister, the SBV and the Ministry of Finance have so far agreed on the proposal in principle, Vietcombank expects to receive support from the Government, the SBV and relevant ministries in the process of reporting, explaining and applying for approval of the proposal from the National Assembly, Vietcombank’s chairman Phạm Quang Dũng said.

According to statistics, as of October 2022, the CAR of the State-owned banks was only 9.04 percent, much lower than that of other regional countries, such as the Philippines (16.29 percent), Singapore (17.2 percent), Malaysia (18.3 percent), Thailand (19.3 percent) and Indonesia (23.3 percent). Moreover, many countries in the region have so far applied Basel III, or a part of Basel III, while banks in Vietnam have mostly implemented Basel II. The low CAR will affect the credit supply of the State-owned banks, which will limit their support to businesses, especially when the economy is facing many potential risks. Notably, if the shortcoming is prolonged, it will be difficult for State-owned banks to maintain their dominant positions in the banking system.

A banking expert even said if considering the State budget as an investment, investing in State-owned banks will get the best return as they have been steadily profitable and annually contributed trillions of Vietnamese dong in tax to the State budget.

Source: VNS    LINK

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Henig:  Vietnam plans to attract Chinese tourists

07:00 | 01/02/2023

Vietnam's tourism industry has targeted to serve about 110 million tourists in 2023, including 8 million foreign visitors.

On January 8, China officially completely lifted travel restrictions to the world, allowing its visitors to travel to international destinations after three years of closure. This will likely open up a strong recovery momentum shortly for the tourism industry of countries around the globe.

According to the World Tourism Organization, Chinese tourists are the world's largest spenders, accounting for a fifth of global tourism spending in 2019 - the time before the outbreak of the COVID-19 pandemic. This is equal to the US and German tourist markets combined.

Viet Nam's smokeless industry also looks forward to visitors from the billion-population market.

According to a report by the National Administration of Tourism, China has always been Viet Nam's largest market, with more than 5.8 million visitors to our country in 2019, accounting for one-third of the total number of international visitors to Viet Nam.

In Quang Ninh province, the local Department of Tourism said that Chinese visitors through Mong Cai international border gate were increasing daily. The number of Chinese tourists staying in Quang Ninh also accounts for about 50 percent of total international visitors to Quang Ninh.

The National Administration of Tourism said that the adjustment of the immigration and epidemic prevention policy by Chinese authorities from January 8 is a positive signal for Viet Nam's tourism industry in the early days of 2023.

In 2015-2019, Chinese tourists increased by an average of 34.4 percent per year. Before the epidemic, Chinese tourists always accounted for 30 percent of the total number of international visitors to Viet Nam.

Not only do Chinese tourists return, but the travel demand of tourists from other international markets and domestic tourists also increases during Tet. Therefore, localities actively prepare and offer many unique tourism products to attract tourists.

In just three days of the last New Year holiday, Sapa has welcomed approximately 42,000 tourists. Revenue was about VND126 billion, an increase of over VND80 billion compared to the previous year's period.

It is forecasted that this Lunar New Year, Sa Pa will continue to receive many visitors thanks to bustling festivals and cultural and entertainment events.

Source: en.baochinhphu.vn    LINK

KTFA Members "Wednesday News" 2-1-2023

KTFA:

Clare:  The Saudi foreign minister will visit Iraq tomorrow

  2/1/2023

The Ministry of Foreign Affairs announced that Saudi Foreign Minister Faisal bin Farhan will visit Iraq tomorrow, Thursday.

The ministry said in a statement, which {Euphrates News} received a copy of, that: "Saudi Foreign Minister Faisal bin Farhan will visit Iraq tomorrow."

She added, "A press conference will be held between Foreign Minister Fuad Hussein and his Saudi counterpart at the ministry's headquarters."   LINK

Clare:  Iraq recovers more than 80 million dollars of stolen money

2/1/2023

The media office of the Iraqi Prime Minister, Muhammad Shia'a Al-Sudani announced, on Wednesday, the recovery of more than $80 million of his stolen money smuggled out of the country.

A statement issued by Al-Sudani's office today stated, "According to the government's approach and within the government's continuous endeavor to recover Iraq's smuggled funds abroad, the competent authorities were able to recover an amount of more than $80 million from the stolen funds and re-enter them into the state treasury."   LINK

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Clare:  A new statement from the Parliamentary Law regarding the 2023 budget

Baghdad - Conscious - Nour al-Zaidi

2/1/2023

Today, Wednesday, the Parliamentary Legal Committee confirmed that the House of Representatives places the approval of the 2023 budget at the top of its priorities, indicating that Parliament will be supportive of its provisions.

The representative of the committee, Ahmed Fawaz, told the Iraqi News Agency (INA): "The budget law will be one of the most important priorities of our work at the beginning of the legislative term for the second year of the fifth session," noting that "the committee is waiting for the budget to be sent from the government, and our concern is to speed up its approval." .

He added, "There are many challenges awaiting the budget associated with the confirmation of lecturers and contracts in all state institutions and relevant ministries," noting that "the draft budget law will enter into force after its parliamentary approval in order to implement the government program of Prime Minister Muhammad Shia'a al-Sudani, which was promised to the sons of Our people during the vote on the program in the House of Representatives.

Regarding the stalled laws, Fawaz stated, "One of the most important stalled laws in the House of Representatives is the retirement law, the civil service law, the law for electors, in addition to the general amnesty law," explaining that "there are more than 100 draft laws stalled in the House of Representatives since the two parliamentary sessions." the previous three and four.

And Prime Minister Muhammad Shia al-Sudani confirmed earlier that he "desires a budget that is compatible with the government program and is not like the previous budgets that were approved," pointing out that "all previous mistakes were due to the budget's incompatibility with government programs."

He stated that "determining the exchange rate in the budget is taken according to the paths and the economic situation in the country," noting that "all possibilities are contained in adjusting the exchange rate."   LINK

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Henig:  Expert: There are two possibilities behind the Sudanese description of the dinar as "stronger" than the dollar

 Baghdad today - Baghdad

Today, Tuesday, economic expert Ahmed Saddam identified two explanations for Prime Minister Muhammad Shia'a al-Sudani's description of the dinar as "stronger" than the dollar.

Saddam said in an interview with (Baghdad Today) that "the talk of the Prime Minister, Muhammad Shia' al-Sudani, that the dinar is stronger than the dollar, two things are possible. This may reflect positively on the decline in the price of the dollar against the dinar. 

He added, "Al-Sudani's hadith wants to reduce the demand for the dollar, especially from informal traders who do not go to the window for selling the currency, but rather go to exchange companies (the parallel market)," noting that "going and turning to the dinar means reducing the demand for the dollar, and here it will decrease because the increase in demand is who contributed to the increase.

He continued, "The irregular merchants, who amount to 70% of the number of merchants, went to the banking offices over which there is no control, and thus the demand for the dollar decreased in the currency auction after it was previously 180 million dollars, and today the demand has reached 50 million, and therefore the matter indicates that the government does not go to the window." to sell dollars.

Prime Minister Mohammed Shia al-Sudani had said earlier that the Iraqi dinar was "stronger" than the dollar, while urging citizens not to acquire dollars.   LINK

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Clare:  The World Bank is ready to work with Iraq to implement reforms

2/1/2023

The World Bank has expressed its willingness to work with the Iraqi government to implement investment and reform projects that require large financial resources.

“There is more than one way to implement the Climate and Development Report,” Salim Rouhana, the bank’s sustainable development program official, said in an interview with the official newspaper, “Al-Sabah,” which was followed by Mawazine News, noting that “the report prioritizes reforms, starting with the reforms that are very necessary for capacity building.” implementation of projects, with the need to have the ability to complete them.

He added, "The second method is financing, part of which is public, and the other part is private, because the bank is interested in these sectors to create the political and financing structure, in order to motivate going for projects in energy, specifically alternative and renewable."

And he continued, "The third way in the reform process is to shift from the immediate and short-term view to the medium and long-term view that requires some security and political stability and the creation of departments that can complete work on these projects and implement the view and direction even in the frameworks of changing governments and policies, and this matter is important, There must be some kind of continuity in government to implement medium and long-term projects.

He pointed out that "the World Bank will have a technical and intellectual support role, and it is preparing for the government's request to support investment and reform projects and many tools in which we can work with it, which require large financial resources and create an environment for the private sector and investment and a lot of knowledge, technologies and modern ideas that Through it, the World Bank can attract expertise that has implemented these projects in other countries.   LINK

Henig:  Al-Sudani confirms the occurrence of fraudulent dollar transfers outside Iraq

01 February 2023

The Iraqi Prime Minister, Muhammad Shia' al-Sudani , confirmed on Tuesday evening that fraudulent dollar transfers abroad had taken place, indicating that this matter was revealed by the start of implementing regulations that sponsor financial transfers in a step that coincided with the decline in the value of the dinar against the dollar.

During the past two months, the Iraqi dinar lost more than 10% of its value against the green currency, which led to sporadic demonstrations protesting the decline in the purchasing power of citizens.

On Tuesday, the price of the dollar in the market reached 1,680 dinars, while its official price is still the same at 1,470 dinars.

Analysts and officials attribute this decline in the value of the national currency to the Iraqi banking system's compliance with international regulations related to money transfer.

It has become imperative for Iraqi banks to conduct these transfers through the electronic "Swift" platform, which allows, in particular, the US Central Bank to monitor these transfers.

During the interview he conducted with him on the official Al-Ikhbariya TV channel, Al-Sudani touched on this mechanism, considering it a tool to achieve "real reform of the banking system, the economic system, to preserve public money and prevent it from smuggling and money laundering."

The prime minister explained that currency smuggling abroad was done through transfers made on the basis of forged invoices for imports whose prices were inflated.

He said that smuggling was done through "false bills, and the money was coming out and being smuggled, and this is a reality, otherwise what would we have imported for $300 million a day?"

He added, "What does it mean that we were importing goods worth $300 million per day? Inevitably, this money was leaving Iraq, and this has been a chronic problem for years."

The prime minister inferred the existence of smuggling by saying that before the implementation of the "Swift" system, the Central Bank of Iraq used to sell merchants quantities of green currency many times greater than what it sells to them today, and yet there are no missing goods in the markets today.

Iraq suffers from chronic corruption that undermines public administration and the entire economy.

He said, "In the past, we used to sell 300 million dollars, 200 million dollars, 250 million dollars, per day. Now, the central bank sells 30, 40 or 50 million dollars daily, and what has changed, what has been lost in the market, nothing."

And Al-Sudani continued, "So, where did the money that comes out go? And all of it with forged invoices. There are commodities that they bring in at irrational prices, and it is clear that the aim is to get the currency out of Iraq. This matter must stop."

The prime minister confirmed that his government had formed "specialized security teams" to detect smugglers and seize smuggled funds.

He added, "We hear that money is being smuggled into the Kurdistan region, and from the region it goes to neighboring countries," without specifying whether he meant Turkey, Iran or Syria mired in war.

Al-Sudani said, "The financial situation in Iraq today is in the best condition, because merchants and businessmen are accustomed to correct and legitimate trade."

The Prime Minister confirmed that Foreign Minister Fuad Hussein and the new governor of the Central Bank will be among the delegation that will travel to Washington on February 7 to discuss the exchange rate mechanism and its fluctuations.

(AFP)  LINK

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Henig:  Gulf Electrical Interconnection Authority: Next month, we will start work in southern Iraq, and it will be a gateway to Europe

Baghdad today - follow-up

The CEO of the Gulf Electrical Interconnection Authority, Ahmed Al-Ibrahim, revealed today, Wednesday, that next week the electrical interconnection contracts will be signed in southern Iraq, and work will begin next March, while he indicated that Iraq will be a gateway to exporting electricity to Europe.

Al-Ibrahim said, in statements reported by the Saudi newspaper, Al-Riyadh, and followed by “Baghdad Today”, that “Iraq is hosting a lot of investment projects at the present time, as there are many companies implementing projects inside Iraq,” denying “the existence of security concerns regarding the completion of the electrical interconnection project with Southern Iraq Network.

He pointed out that "the Gulf Electrical Interconnection Authority was keen to contract with Iraqi companies to deal with the obstacles," stressing in the same context that "the Interconnection Authority has secured the necessary liquidity to complete the electrical interconnection project with southern Iraq according to the specified timetable, in addition to contracting with Iraqi companies with expertise." great in the implementation of projects in Iraq.

Al-Ibrahim said, "Next week will witness the signing of contracts for the implementation of the electrical interconnection project with southern Iraq."

He expected that the implementation of the project would take 24 months, and 500 megawatts would be transferred to the Iraqi side in the first phase, and the quantities of energy would be raised according to the capacity of the electrical network in southern Iraq, especially since the electrical interconnection project with southern Iraq is capable of transmitting energy by 1,500 megawatts.

And he indicated that "all Gulf countries are working to develop renewable energy sources (solar energy - wind energy), pointing to the existence of huge projects for the production of renewable energy in the Kingdom, as it aims to reach 50% of renewable energy by 2030, in addition to the rest of the GCC countries, while The Sultanate of Oman is 30% in 2030, and the rest of the other countries range between 10% - 20% by 2030, as renewable energy currently constitutes between 10% - 15% in the Gulf electrical interconnection network.

With regard to the export of Gulf electric power, he explained that the first energy export process outside the Cooperation Council of the Republic of Iraq is about 500 megawatts, considering the export project to Iraq as a first step, followed by steps represented in linking central and northern Iraq to Turkey and then reaching the European continent to export electric power. .

He stressed that "all countries of the Cooperation Council build electrical stations to keep pace with the increasing demand during the summer," pointing out that "the percentage of decline in demand for electricity energy during the winter by 50% - 60%, and this percentage represents the surplus during the winter season, as this period is considered Suitable for exporting electric power to Europe, which raises the interest of investments in electric power.   LINK

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

KTFA Members "Tuesday Iraq News" 1-31-2023

KTFA:

Clare:  'Hold the dinar, it is stronger'

A new statement from the Sudanese on the dollar crisis

1/31/2023

Prime Minister Mohamed Shia Al-Sudani pledged to return the exchange rate of the dollar to its original price.  

  Al-Sudani said, in excerpts of an interview conducted with him by colleague Karim Hammadi, which is scheduled to be broadcast on the official channel today, (January 31, 2023), that “the Iraqi dinar is the strongest, and citizens should not acquire the dollar, but rather the dinar,” indicating, “We will seek to return the dollar to its price.” The original, and accustom merchants and businessmen to legitimate trade.  

He added, "Our decision is to provide a housing unit in a city with integrated services," noting that "any official who does not provide solutions to any problem, we will tell him (reliance)."  LINK

Clare:  The central bank meets with banks to discuss the dollar crisis

1/31/2023

An informed source said, on Tuesday, that a meeting had begun at the Central Bank to discuss the crisis of the dollar's high exchange rate.

The source told Mawazine News, "A short time ago, a meeting began in the Central Bank building, in the presence of all banks."

The source, who asked not to be named, added that "the meeting comes to discuss the dollar crisis."

LINK

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Clare:  urgent... Central Bank Governor: We will issue decisions to reduce the dollar and two meetings with the American side within two days

1/31/2023

The agency governor of the Central Bank of Iraq, Ali Al-Alaq, revealed the imminent issuance of decisions to reduce the exchange rate of the dollar, which today reached 1670 dinars in the local markets.

A member of the Parliamentary Economy Committee, Barbar Rashid, told the {Euphrates News} agency, "The presence of the governor of the Central Bank to the House of Representatives today to discuss the issue of the rise in the exchange rates of the dollar, as Al-Alaq confirmed that decisions will be issued that are sufficient to reduce the exchange rate."

Rashid added that Al-Alaq "revealed a meeting with the US side in Turkey during the next two days and another meeting on the ninth of next March with the US Federal Bank in Washington."

A member of the Parliamentary Economy Committee expected, "a drop in the exchange rate of the dollar in the coming days, after a series of measures implemented by the government and the central bank."

Raghad Daham     LINK

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Clare:  The Central Bank will soon adopt the merchant’s deposit in dinars and the receipt of dollars according to the bank address

1/31/2023

Suha Al-Kafai, Managing Director of the International Islamic Bank announced, on Tuesday, that the Central Bank of Iraq will soon approve the merchant's deposit in dinars and receipt of the dollar according to the bank address in the country from which it is imported.

The Islamic Bank stated in a statement that the Chairman of the Board of Directors and Managing Director of the International Islamic Bank attended the meeting with the Deputy Governor of the Central Bank and the Consultant, and in the presence of the general managers and other invited banks.

According to the statement, the instructions that will be issued soon regarding the ceilings of transfers and the mechanism of credits have been consulted and procedures have been simplified in order to facilitate international trade services for merchants of all kinds (individuals and companies), and the issuance of credits and transfers according to specific ceilings to regulate the new banking work for the next stage and approving the merchant’s deposit in dinars to the bank Private and receive a dollar according to the bank address (Ibn number) in favor of the bank account in the country from which it was imported.

Yesterday, Monday, an informed source told Shafaq News agency that the Central Bank of Iraq will hold an "important meeting" today, Tuesday, regarding the crisis of the dollar's high exchange rate in the local market.

Meanwhile, the Chairman of the Finance Committee, Atwan Al-Atwani, met, in the presence of the members of the committee, today, Tuesday, the Governor of the Central Bank, Ali Mohsen Al-Alaq, at the committee’s headquarters.

According to a statement issued by the Media Office of the House of Representatives, during the meeting, the issue of the fluctuation of the exchange rate of the Iraqi dinar against the dollar was discussed, and the possibility of controlling it to preserve the market, as well as discussing its repercussions on citizens and the steps of the Central Bank and the procedures followed by it. 

The price of the dollar against the dinar rose in an unprecedented way recently due to the measures imposed by the United States of America to limit currency smuggling from Iraq.

The Central Bank of Iraq announced, on Monday, January 19, a package of decisions that would restore the foreign currency market to its normal position after the rise in it.

The decisions included the following paragraphs:

1- Allowing the banks participating in the foreign currency buying and selling window to buy any amounts in foreign currency and deposit them with this bank in accounts used for external transfer purposes, and pay interest / returns on those balances according to what this bank decides. 

2- Facilitating the financing of private sector trade through Iraqi banks and meeting the demand for foreign transfers by strengthening the balances of banks with their correspondents in other currencies in addition to the US dollar (Chinese yuan, the euro, the Emirati dirham, the Jordanian dinar, and others).

3- Opening outlets for selling foreign currency in government banks to the public for travel purposes (treatment, Hajj Umrah, study, etc.)

4- Reducing the selling price of the dollar to the beneficiary (the card holder) that he uses while traveling or paying his purchases via the Internet, to be at (1465) dinars to the dollar instead of (1470) dinars to the dollar. The dollar will be sold to electronic payment companies for the above purpose at a price of (1455) dinars to the dollar instead of (1460) dinars to the dollar.    LINK

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Clare:  America is offering Iraq to build an electricity system on a global level

1/31/2023

The US ambassador to Iraq confirmed on Tuesday, her country's readiness to work with the Minister of Electricity to build a system with international specifications.

Ambassador Elena Romansky wrote in a tweet on her Twitter page; "Iraqis deserve a diversified, modern economy and well-paying jobs"

To achieve this, it is necessary to build a world-class electricity system," she added.

And she stressed that "the United States is ready to work with the Iraqi Minister of Electricity, Ziyad Ali Fadel, and the Iraqi government to carry out this important endeavour."   LINK

Clare:  China calls for the establishment of a free zone with the Arab Gulf countries as soon as possible.

1/31/2023

China announced today, Tuesday, its desire to expand relations with Saudi Arabia in various fields, while calling for the establishment of a free zone with the Gulf Cooperation Council countries as soon as possible.

And the Russian TASS agency said, “Chinese Foreign Minister Chen Gang called, in a phone call with Saudi Foreign Minister Faisal bin Farhan Al Saud, to expand economic trade cooperation between the two countries.

Xinhua News Agency quoted the Chinese minister as saying, "The two sides should continue, later, to further expand cooperation in many fields, including trade, economy, energy, infrastructure, investment, financing, high technology, communication development and coordination, as well as continuing to strengthen the strategic partnership between China and the GCC countries." The Arab Gulf, and to accelerate the establishment of a free trade area between China and the GCC countries as soon as possible.

The Chinese minister indicated that his country highly appreciates the Kingdom's support on issues related to China's main interests, and is ready to cooperate with the Saudi side in adhering to the principle of non-interference in internal affairs and protecting other basic rules of international relations.

He added, "China is ready to enhance coordination and cooperation with Saudi Arabia in regional and international affairs, jointly promote regional peace and stability, and better protect the common interests of developing countries."

Last December, Chinese President Xi Jinping visited Saudi Arabia and participated in the Chinese-Arab summit.

During that summit, Saudi Crown Prince Mohammed bin Salman said that Riyadh and Beijing are studying the possibility of establishing a free trade zone between China and the countries of the Cooperation Council for the Arab Gulf States.   LINK

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Henig:  The former tax director admits to smuggling $3.5 million to a neighboring country

 |Today, 22:21 | Baghdad today-Baghdad

The Supreme Commission for Combating Corruption carried out a qualitative operation that overthrew four suspects, headed by the former director general of the Tax Authority, and seized more than one billion dinars, jewelry and documents for 11 properties, while they confessed to smuggling 3.5 million US dollars to a neighboring country.

The Integrity Commission said in a statement received by "Baghdad Today", that "the support team of the Supreme Commission for Combating Corruption, and after receiving accurate information and completing legal procedures by obtaining arrest warrants issued by the Central Anti-Corruption Criminal Investigation Court, three suspects were arrested in connection with the fourth suspect, the former general manager." To the General Authority for Taxes, who was arrested in another case and took his confessions,” noting that “the accused are the manager, his wife, and mediators in the money laundering operation.”

 And she continued, explaining that “the operation, which was carried out with high-level coordination and cooperation between the components of the Supreme Anti-Corruption Authority and based on accurate information from its support team and an exceptional effort from the Central Anti-Corruption Criminal Investigation Court, also resulted in the seizure of large amounts of cash in their possession amounting to (1.227. (000.000) one billion two hundred and twenty-seven million Iraqi dinars, and (556.900) five hundred and fifty-six thousand and nine hundred US dollars, in addition to holdings and “golden pickles” in a large amount.

 And she added, "Among the seized documents are documents for (11) real estate, (9) of which are inside Iraq, and two outside it, both of which are of great financial value, and the defendants confessed to cash balances outside Iraq in the amount of (3,600,000) three million six hundred thousand dollars." Actions are being taken to control it,” stressing that “these funds are all obtained from public office trading and bribery received by the former Director General of the General Tax Authority during his work in it, and he hid it with the defendants.”

And she confirmed, "Writing the statements of the accused and presenting them before the competent judge, who decided to arrest them in accordance with the provisions of Article (36) of the Money Laundering and Terrorist Financing Law No. (39) of 2015, and to organize records of the authenticity of those funds that were deposited with the Federal Integrity Commission."   LINK

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Henig:  Al-Rafidain announces the transformation of advances deduction from manual to electronic (document)

|Today, 09:19 |Baghdad today - Baghdad

Al-Rafidain Bank issued a directive to stop deducting advance installments manually and transferring them electronically, starting next February.

According to a document issued by the bank on the 30th of this month, which I obtained (Baghdad Today), that “in an effort to provide the best services to its customers who are citizens of their salaries with our bank and for the purpose of activating electronic payment tools in disbursing customers’ dues. The year 2022 is replaced by February 2023, so that the deduction is carried out electronically from the borrower’s salary on the loan management system, starting from February of the year 2023.

The document stated that "the deduction will be free of charge, without commission, please confirm receipt of the turban and inform us of this according to an official letter sent by approved e-mail." LINK

KTFA Monday Night CC "A Big Meeting To.....Mary" 1-30-2023

KTFA

Monday Night Conference Call

Frank26:  1-30-23…….A BIG MEETING TO …..MARY

This video is in Frank’s and his team’s opinion only

Frank’s team is Walkingstick, Eddie in Iraq and guests

Playback Number: 605-313-5163   PIN: 156996#

What Frank’s suit color’s mean…. FRANKS SUIT COLORS FOR CC'S..... WHITE = NEW INFO…. SILVER = INTEL FROZEN…. RED= HIGH ALERT… PURPLE=GUEST WITH US…. BLUE = AIR FORCE…. BLACK = GROUND/FF’S…. GREEN= MR OR FAB 4 ... GOLD = CHANGE

https://www.youtube.com/watch?v=OwtclgLapBs

Monday "Vietnam News" Posted by Henig at KTFA 1-30-2023

KTFA: Vietnam

Henig:  Tourism is back, big time

06:00 | 30/01/2023

(VEN) - Although it failed to achieve the goal of welcoming five million foreign tourists in 2022, major tourism sector efforts have resulted in its strong recovery during the final months of the year, promising even more positive changes in 2023.

Rebound in foreign visitors

Vietnam fully reopened its borders to tourists on March 15, 2022. In late April 2022, it stopped requiring health declarations for arrivals and since May 15, all COVID-19 test requirements for visitors have been dropped.

In May 2022, the number of foreign tourists to Vietnam increased 70.6 percent compared with April and was 12.8 times higher compared with May 2021. This trend continued strongly for the rest of the year, with nearly 90 percent of tourism companies and accommodation facilities resuming operations.

Bui Thuc Anh, Director of the Esperantotur and Service Joint Stock Company, said the number of tourists grew strongly in the third quarter, with those from the Republic of Korea topping the list, followed by American visitors.

Apart from traditional markets, Vietnam has seen a rebound in visitors from new markets such as India, Middle Asia, South America, and Northern Europe.

Data from Google Destination Insights show that international web searches in October for tourist accommodations in Vietnam increased about 20 percent compared with September and eleven-fold compared with March, when Vietnam fully reopened to tourists.

Most impressively, Vietnam welcomed 596,900 foreign tourists in November 2022, up 23.2 percent compared with October and 39.7 times higher compared with November 2021. “We expect the number of foreign visitors will reach four million by year’s end. In fact, the number of tourists from some countries such as India has grown rapidly,” said Ha Van Sieu, Deputy Director General of the Vietnam National Administration of Tourism.

“Live fully in Vietnam”

In 2022, the tourism sector intensified advertising and promotional activities, both in Vietnam and abroad, to attract foreign visitors, expecting to see a busier international tourism market during the winter holidays at the end of the year.

At the World Travel Market (WTM) 2022 that took place in London in November, the Vietnamese delegation organized many meetings and activities to promote Vietnam’s tourism.

Nguyen Trung Khanh, General Director of the Vietnam National Administration of Tourism, said representatives of 23 Vietnamese travel companies and famous Vietnamese tourist destinations met foreign media and partners at the tourism fair to introduce the Visit Vietnam 2023 campaigns, themed “Binh Thuan - Go Green Come Together” and “Live fully in Vietnam”.

The Vietnamese delegation assured international tourism operators that Vietnam had removed the need to present COVID-19 vaccine certificates as well as quarantine requirements for foreign arrivals, and restored visa waiver programs. Vietnam also introduced major tourism products at the travel fair, including marine, nature, cultural and urban tourism, and various support products.

Kenneth Atkinson, Deputy Chair of the Vietnam Tourism Advisory Board, Founder and Senior Board Advisor to Grant Thornton Vietnam, said Vietnam’s tourism has progressed over the past decade with many tourist sites achieving global recognition.

The Vietnamese tourism sector continues to intensify promotional activities to attract foreign visitors. India is considered a strong target market, being one of the top 10 countries in terms of web searches for information about Vietnam’s tourism.

International web searches for information about tourist destinations in Vietnam keep increasing, focusing on Hanoi, Ho Chi Minh City, Da Nang, Phu Quoc, Hoi An, Nha Trang, Da Lat, Hue, Quang Ninh, and Ha Long. Data from Google Destination Insights show that most of the searches originate in the US, Australia, Singapore, India, the Republic of Korea, Japan, the UK, Malaysia, Thailand, and Germany.

Thanh Tam   LINK

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Henig:  Headquarters of Vietnam-Korea Institute of Science and Technology inaugurated

09:23 | 30/01/2023

An inauguration ceremony of the headquarters of the Vietnam-Korea Institute of Science and Technology (VKIST) was held at the Hoa Lac Hi-tech Park in Ha Noi on January 17.

National Assembly Chairman Vuong Dinh Hue and Speaker of the National Assembly of the Republic of Korea (RoK) Kim Jin-pyo attended the event.

Addressing the ceremony, the top Vietnamese legislator said that the VKIST project is the fruit of the two countries' cooperation in science, technology, and innovation, which is considered an inevitable trend of the times.

He expressed his hope that the success of the institute model would create a driving force to promote the transformation of the national innovation system.

For his part, Kim said that the VKIST project is of great significance in the two countries' cooperation in science, technology, and innovation.

This is also the largest project financed by the RoK's non-refundable aid in the world and it is also the project to support the establishment of the first public research unit of the RoK, he said.

The VKIST project is a development cooperation project between the Governments of Viet Nam and the RoK. It is co-managed by the Vietnamese Ministry of Science and Technology and the Korea International Cooperation Agency (KOICA).

Source: baochinhphu.vn   LINK

Henig:  Intertwined opportunities, challenges for Vietnam’s economy in 2023

07:00 | 30/01/2023

With certain headwinds predicted for the global economy in 2023, Vietnam too, faces considerable challenges. But opportunities are also significant if concerted and appropriate solutions are taken, an expert has said.

With certain headwinds predicted for the global economy in 2023, Vietnam too, faces considerable challenges. But opportunities are also significant if concerted and appropriate solutions are taken, an expert has said.

Vietnam has to deal with one major external challenge and two internal ones, Dr Pham Sy Thanh, Director of the Chinese Economic Studies Programme under the Vietnam Institute for Economics and Policy Research, told the Vietnam News Agency.

The external challenge is a strong decline in demand for Vietnamese exports. Many export sectors with revenue of over 1 billion USD like wood and apparel recorded their earnings in October and November 2022 falling 30 - 40% year on year and month on month. This indicates that foreign markets are no longer open or attractive enough for exports in 2023.

Export contraction will have a huge impact on many social issues, especially lay-offs, job shortages, and unemployment in industrial parks, he pointed out.

Among internal challenges, the first is that the handling of wrongdoings in the bond market and the banking system has caused serious disruptions and congestion of the capital flow. Meanwhile, the cost of capital is one of tough barriers to production and business activities, but it is nothing in comparison with the lack of capital or the inaccessibility to capital.

Thanh considered these as immediate difficulties that require strong solutions from the Government so that businesses can gain the fastest access to capital sources with reasonable interest rates.

However, he noted, Vietnamese exporters also have big opportunities to win contracts from partners who used to place orders in China. The shift of supply chains out of the world’s second biggest economy to Vietnam is also accelerating as seen in recent moves by Foxconn, Apple, Adidas, and Samsung.

In Southeast Asia, Vietnam is emerging as one of the go-to places where big enterprises choose to build research and development centres.

To capitalise on those advantages, Vietnam should make concerted efforts, the expert recommended, elaborating that it should have better industrial and office infrastructure. It should also further develop the nation’s transport system accordingly to minimise traffic congestion.

In addition, to have better industrial, office, and transport infrastructure, the policies for handling economic wrongdoings should also open “green lanes” for businesses and localities to make new investment decisions.

Another important measure is dealing with problems of the bond market and the banking system to smoothly carry out monetary and fiscal policies. Particularly, authorities should further prioritise fiscal policy instead of focusing only on the monetary. This will open up more economic development opportunities and optimise advantages when other economies have yet to return to their “orbits”, according to Thanh.

VNA   LINK

Some "Vietnam News" Posted by Henig at KTFA 1-29-2023

KTFA:  Vietnam

Henig:  Việt Nam among world’s 10 biggest recipients of remittances

January, 29/2023 - 12:44

Despite the COVID-19 pandemic’s major impacts on the global economy over the last two years and growing inflation in many countries, remittance flows into Việt Nam remained relatively stable compared to previous years, the report noted.

HÀ NỘI — Việt Nam remains one of the 10 countries receiving the most remittances in the world, according to the recent Migration and Development Brief by the World Bank and the Global Knowledge Partnership on Migration and Development (KNOMAD).

Despite the COVID-19 pandemic’s major impacts on the global economy over the last two years and growing inflation in many countries, remittance flows into Việt Nam remained relatively stable compared to previous years, the report noted.

Total remittances to Việt Nam increased by nearly 5 per cent in 2022 and may go up 3.6-4.5 per cent in the following years after growing 5 per cent in 2021, according to statistics of WB and KNOMAD.

Last year, the value rose about US$1 billion to approximate $19 billion, making the country one of the three biggest recipients in the Asia-Pacific and among the top 10 globally in terms of remittances.

Some banks perceived that the growing remittance inflows will help them not only gain more profits from services but also boost foreign exchange reserves, serving Việt Nam’s foreign currency attraction policy.

Among remittance sources, the US houses the largest number of Vietnamese immigrants, followed by the UK, Australia, and Canada. Meanwhile, Japan, South Korea, and Taiwan (China) post the most number of workers from Việt Nam. 

— VNS    LINK

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Henig:  Newly-announced ceiling prices insufficient to cover costs: project developers

January, 28/2023 - 09:14

Wind farms incur a cost of 7.0 cents for each kWh of electricity generated, whereas the ceiling prices for wind energy are set at VNĐ1,587.12 (6.8 cents) per kWh.

HÀ NỘI — Many project developers are expressing concern that the ceiling prices for solar and wind energy set recently by the Ministry of Industry and Trade are not high enough to offset their costs.

The representative of four wind farms in Gia Lai Province Trần Minh Tiến remarked that the construction of the wind farms was completed a year ago but they have been idle due to the absence of official purchasing prices.

"We have spent US$300 million to build our wind farms that have been lying dormant for one year. Meanwhile, interest payments and depreciated costs pile up day by day," said Tiến.

The introduction of the ceiling prices did not make the representative any happier because it is never easy to negotiate an agreement with Vietnam Electricity (EVN), under which the power corporation purchases electricity from the wind farms at exactly the prices.

Even if the agreement is reached, the wind farms would not be able to make a profit with such low prices. They incur a cost of 7.0 cents for each kWh of electricity generated, whereas the ceiling prices for wind energy are set at VNĐ1,587.12 (6.8 cents) per kWh.

"Price negotiation takes at least three months, and one year is for most cases. We will petition the government to raise the ceiling prices as the current prices are insufficient to cover our costs," added Tiến.

The presentative of the Bến Tre Renewable Energy Community reveals that about 62 newly-built wind farms have been staying inactive since the expiration of the Feed-in Tariff (FIT) mechanism on November 1, 2021. 

"No official purchasing prices in place means no revenues for wind farms. Meanwhile, the farms incur various costs day by day, including overheads, depreciated costs, and interest payments," said the representative. 

He is concerned that renewable energy would not be able to take root in Việt Nam should solar and wind farms keep falling into disuse as such.

He also opines that the newly-announced prices would not make any difference to the gloomy situation as they are not high enough to propel the farms into profitability. 

"Project developers need those ceiling prices that are high enough to help farms in distress turn profits. The newly-announced prices are not what they have expected," he added.

The denomination of the prices in VNĐ, rather than in strong currencies as it was in previous legal documents, is another matter of concern for the representative because VNĐ is depreciating against certain strong currencies, exposing the developers to an exchange rate pass-through.

"The denomination of the prices in VNĐ would put developers at a cost disadvantage in the long term since most of their costs are denominated in USD," he added.

The representative calls for higher ceiling prices for renewable energy to support those developers that have built their farms in Việt Nam and incentivise those that are considering investing in the country.

According to the securities firm VnDirect, the ceiling price applicable to ground-mounted solar projects is 29.5 per cent lower than its corresponding expired FIT; floating solar projects, 17.3 per cent; onshore wind projects, 21.2 per cent; and offshore wind projects, 21.8 per cent.

As such, the prices are estimated to reduce the internal rate of return (IRR) of ground-mounted solar projects to 5.1 per cent; onshore wind projects to 8.0 per cent; and offshore wind projects to 7.9 per cent. Under the old FITs, IRRs of the projects were over 12 per cent.

— VNS    LINK

Henig:  Binh Lieu mountain region powers up

06:00 | 28/01/2023

(VEN) - The mountainous border district of Binh Lieu in the northeastern province of Quang Ninh is changing rapidly due to investment in infrastructure of roads, electricity and schools, greatly improving the lives of the predominantly ethnic minority population.

Investments in infrastructure

According to former Secretary of Binh Lieu District Party’s Committee Duong Manh Cuong, in the past five years, Binh Lieu has invested in over 200 infrastructure projects for seven border communes with a total budget of over VND350 billion, particularly in rural electricity grids. By 2018, all the communes and households in Binh Lieu had access to the national grid, while in areas of extremely difficult terrain and sparse population, Quang Ninh has invested in solar energy systems to meet the local residents’ electricity demand.

Currently, Binh Lieu District has 132 kilometers of medium voltage lines, over 250 kilometers of low voltage lines and 105 distribution substations.

Hoang Van Duc, Director of Binh Lieu Electricity, said that in addition to capital sources for regular overhaul and repairs, the parent company Quang Ninh Power also allocates investment capital to develop substations. In 2021-2022, Binh Lieu built six new substations, renovated and built 15.63 kilometers of new low voltage transmission lines with total investment of about VND13 billion.

The synchronous investment in power grids and stable power supply have enabled the local ethnic communities invest in agricultural production machinery and purchase household appliances, improving their quality of life.

Dang Thi Chau, 80, of the San Chi ethnic group in Huc Dong Commune, is pleased with this year’s bumper crop of cinnamon and anise, and other earnings which have yielded her family stable annual income of nearly VND120 million. Since the locality was connected to the national power grid, her family has purchased machinery for production and necessary household electrical appliances.

Binh Lieu agriculture has gradually shifted from small scale production to value chain-oriented large-scale production. Some local farm produce has been developed into popular commodities, including Binh Lieu vermicelli, honey and various essential oils.

Pham Dinh Chan, Deputy Director of Quang Ninh Power Company:

All households in Quang Ninh Province are now hooked up to the national grid, ensuring national defense, economic development and dissemination of Party and State policies to each family.

Son Ky    LINK

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Henig:  Trang A Chu’s unique homestay

06:00 | 29/01/2023

(VEN) - The A Chu Homestay in Son La Province’s Hua Tat Village welcomes as many as 3,000 foreign visitors annually, but it did not start out that way. In fact, it was on the verge of shutting down just a few years ago.

Tough beginnings

The owner of the A Chu Homestay in Van Ho District, Trang A Chu, pioneered his business in 2015 with almost no money or knowhow. His journey could have come to a dead end without the help of Duong Minh Binh, Director of the Community-Based Tourism Vietnam Company, who runs dozens of successful homestay models throughout the country.

Binh even invited a five-star hotel chef to guide A Chu in preparing dishes from locally available ingredients. On opening day in late 2015, A Chu Homestay welcomed representatives of 35 travel companies and subsequently began hosting foreign tourists.

But A Chu, a member of the H’Mong ethnic group, was still struggling at the time to grow corn while having to complete building a stilt house to welcome guests. He was so tired and overwhelmed by the strict tourist requirements that he considered giving up.

“After some arguments with Binh, I learned that the little things that Binh wanted us to adhere to are valuable practical experiences in doing community tourism,” said Trang A Chu.

Originally a small stilt house, A Chu Homestay now offers 10 uniquely designed private rooms. Despite the debt he has accumulated, A Chu believes his business has turned a corner.

Spreading enthusiasm

Like many other tourism businesses, A Chu Homestay suffered greatly from the impacts of the COVID-19 pandemic but it has made an impressive recovery with increasing number of bookings every day.

In addition to sleeping accommodations and food, A Chu also introduces his guests to H’Mong cultural activities, such as making Dó paper, pounding rice into a type of round-shaped cake known as “banh day”, grinding corn and more. In addition to serving as tourist draws, these activities help preserve traditional arts and increase the incomes of ethnic minorities in the remote Hua Tat Village.

“Community tourism has its own unique characteristics. I want to spread the fire and enthusiasm to everyone and I believe this will make our A Chu Homestay a unique attraction,” A Chu said.

Located along National Highway 6, about 15 km from the Moc Chau Plateau, Hua Tat Village is one of the rare community-based tourism villages that retains the special traditional culture of the H’Mong ethnic group.

Lan Anh & Quynh Nga   LINK

Some "Vietnam News" Posted by Henig Saturday 1-28-2023

KTFA: Vietnam

Henig:  Toyota joins hands with local auto supporting industry firms

January, 28/2023 - 09:04

Domestic manufacturers have paid much attention to enhancing localisation rate by investing more in supporting industries. Auto supporting industry is not apart from that process, as localisation rate has gradually help reduce import of components.

HÀ NỘI — Việt Nam's manufacturers have enhanced the localisation rate by investing more in supporting industries. The auto supporting industry is not apart from that process, as increased localisation has gradually helped reduce the importation of components.

From 2018, import tariffs on automobiles from ASEAN countries have been reduced to zero percent for Completely Built Units (CBU), posing a major challenge for domestic manufacturers, who are already facing intense competition from neighboring countries such as Thailand and Indonesia.

In particular, Việt Nam signed two new generation Free Trade Agreements (FTAs), including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). The EVFTA agreement will cut the average tariff 6-7 per cent yearly, paving the way for imported cars to enjoy zero tariffs from 2030. The zero tariff will become a great challenge for Việt Nam's automobile industry and its supporting industries as well.

As a leading automobile manufacturer in Việt Nam, with strong potential and large-scale production, Toyota Motor Vietnam (TMV) has constantly made efforts to increase the localisation rate in Việt Nam. The company has actively developed new strategies by working towards sustainable development.

Apart from manufacturing and assembly, TMV has also focused on promoting the use of domestic components. By doing so, TMV has increased its localisation rate of some models to over 40 per cent. In particular, the Toyota Veloz Cross and Avanza Premio have been locally assembled in Việt Nam since December 2022 after a year of being sold as imported CBUs. About 300 components on the Veloz Cross and Avanza Premio models are localised, contributing to the localisation of Việt Nam’s automobile industry.

Director General of Toyota Vietnam Hiroyuki Ueda described the move as an important milestone of the carmaker in the country and also the affirmation of its commitment to promoting local automobile manufacturing.

According to TMV, the company has always made efforts to actively seek and support domestic suppliers, helping them improve their management capacity to meet Toyota's quality requirements.

Since 2018, TMV has established a specialised unit to support suppliers, giving priority to Vietnamese suppliers. The unit aims to help local suppliers to improve working efficiency and product quality, while lowering production cost.

According to a Toyota representative, Vietnamese enterprises often have limited experience and do not meet the quality requirements to become a global supplier of automobile spare parts and components. Therefore, Toyota has enhanced the capacity of local suppliers in the 5S system, which includes productivity, safety, cost control, service delivery and quality management.

In June 2022, TMV and the Industry Agency under the Ministry of Industry and Trade signed a Memorandum of Understanding for a project to enhance the domestic supporting industry.

The project aims to strengthen the capability and cooperation between domestic enterprises and automakers from 2022 to 2023.

It is the third year Toyota Vietnam and the agency have worked on the project, demonstrating the firm's efforts to increase the localisation rate, support Vietnamese suppliers, and a commitment to accompany the development of the Vietnamese automobile and supporting industry.

— VNS    LINK

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Henig:  Outstanding loan falls sharply in Q4

January, 28/2023 - 08:37

According to estimation, as of the end of 2022, outstanding loan balance of securities firms was VNĐ120 trillion (US$5 billion), a decline of VNĐ40 trillion over the previous quarter.

HÀ NỘI — The Vietnamese stock market witnessed a turbulent year in 2022. In the last quarter of 2022, the market plunged and hit a two-year low of below 900 points in the middle of last November. 

The quick and strong recovery helped the VN-Index recoup the majority of its losses before being corrected, and it ended the quarter with an 11 per cent drop.

After a slight gain in the third quarter of last year, the whole market's outstanding loan balance posted a significant decrease in the fourth quarter. According to estimations, as of the end of 2022, outstanding loan balance of securities firms was VNĐ120 trillion (US$5 billion), a decline of VNĐ40 trillion over the previous quarter. The amount excluded triparty loans. 

Of the outstanding loan balance, margin lending accounted for around VNĐ115 trillion, while the rest was cash advances. Margin balance of the whole market was estimated to fell about VNĐ40 trillion over the previous quarter. 

After peaking in the first quarter of last year, the market's margin balance tended to fall after a force-sale wave. On the other hand, many securities firms also raised capital dramatically in the past year. 

Therefore, the margin to equity ratio at most securities was below 1x at the end of 2022 instead of approximately 2x (the maximum prescribed level) as of March 31, 2022. This means that securities companies still have room to lend, and the pressure to raise capital is no longer as urgent as it was a year ago.

Foreign securities companies have been competing with and even surpassing domestic enterprises in some aspects. For example, in the lending race, Mirae Asset has been leading for many quarters in terms of outstanding loans, while KIS and KB Securities were also in the top list.

While most domestic securities companies saw sharp decreases in outstanding loans, according to statistics in the fourth quarter of last year, foreign ones still maintained stable lending activities. 

Lending activities shrank due to unfavorable movements in the general market.

With great financial potential, foreign securities companies are ready to raise capital and cause great competitive pressure in all aspects, from service quality to the number of branches and especially in the ability to provide loan services. 

The huge development potential of the Vietnamese stock market is expected to continue to push the group of foreign securities companies to spend money to gain market share, and if there are no more breakthrough changes, it is likely that domestic securities companies will be lagging behind.

VNS   LINK

Henig:  Supermarkets, traditonal markets gradually resume normal operations amid abundant supply

January, 28/2023 - 10:05

Many supermarkets in HCM City such as Co.opmart, Co.opXtra, Co.op Food, Go!, Big C, Tops Market, and AEON opened from January 23, the second of the new year.

HCM CITY — Many supermarkets in HCM City such as Co.opmart, Co.opXtra, Co.op Food, Go!, Big C, Tops Market, and AEON reopened on January 23, the second of the new year.

Traditional markets too have been gradually reopening since January 23, especially those that sell fresh foods, flowers, fruits, and vegetables.

According to a Ministry of Finance report on the market and prices, sales in the city’s wholesale markets on the fourth day of the new year (January 25) were 31-52 per cent of normal while prices were mostly normal. 

The volume of vegetables and fruits arriving at the Thủ Đức Wholesale Market was 1,172 tonnes, or 52 per cent of normal days and an increase of 28.5 per cent from the same period last year.

At the Hóc Môn Wholesale Market it was 860 tonnes, which was equal 48 per cent of normal days and a decrease of 12 per cent from last year.

Supermarkets have also launched many promotions after Tết to stimulate demand.

From January 25 to 27 customers at Co.opmart with bills worth VNĐ500,000 or more have the chance to receive vouchers worth VNĐ30,000-500,000 under its ‘Hái lộc đón phúc – Sung túc cả năm’ programme.

The supermarket chain is also offering discounts on confectionery, milk and dairy products, vegetables, fruits, household utensils, cosmetics, clothes, and others.

— VNS   LINK

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Henig:  Retail market predicted to recover in 2023

January, 28/2023 - 09:06

Although 2023 is forecast to see many difficulties, experts expect it will be a recovery year for the retail sector after the COVID-19 pandemic as there are many signs showing the return of investors and higher demand.

HÀ NỘI — Although 2023 is forecast to see many difficulties, experts expect it will be a recovery year for the retail sector after the COVID-19 pandemic as there are many signs showing the return of investors and higher demand.

According to the Ministry of Industry and Trade (MoIT), the scale of the Vietnamese retail market is US$142 billion, which is expected to reach $350 billion in 2025, with contributions of 59 per cent to total GDP.

Last year, the total revenue from retail sales of goods and services rose 21 per cent, exceeding the target of 8 per cent.

A survey by Vietnam Report showed that over 53.8 per cent of total retail firms enjoyed similar and higher business results compared to the pre-pandemic level.

Experts held that the growth of retail sales is being supported by a rise in incomes and the strong recovery of the tourism sector as well as relevant sectors such as transport and accommodation, as well as the effectiveness of inflation control measures.

Additionally, there are signs of vibrant retail activities as many foreign investors have announced their plans to return after the pandemic.

Recently, Thailand’s Central Retail said that it will pump additional VNĐ20 trillion ($852.87 million) into the Vietnamese market in the next five years, pushing its investments in Việt Nam in the 2022-2026 period to VNĐ65 trillion. With this plan, Central Retail will raise their coverage from 40 localities currently to 55.

Meanwhile, Japanese giant retailer Aeon Group plans to build another megamall in Hà Nội, raising its total trade centres in Việt Nam to 20.

Phùng Trung Kiên, Founder of Vietnam Holdings Inc, said that retail businesses will see good growth in early 2023, especially those trading consumer goods thanks to the Lunar New Year Festival.

In 2023, four trade centres are scheduled to be launched – Central Premium plaza, Vincom Megamall Grand Park, Sunrise City Central and Emart 2 with total area of over 116,000 sq.m.

Many experts predicted that this year, retailers will expand their selling channels, bringing their products to different trading platforms to optimise online retail channels.

— VNS   LINK