Wednesday Night KTFA CC "They Are Not Done Yet!!!" 2-8-2023

KTFA

Wednesday Night Conference Call

2-8-23…..THEY ARE NOT DONE YET !!!!

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=pP9zNNnuA8c

KTFA Members "News and Views" Wednesday PM 2-8-2023

KTFA:

Family Business:  I'm a bit confused. We are told that the Iraq government is trying to collect all the dinar they can before they RI. Then they come out saying that the dinar will be stronger than the dollar and to hold on to your dinar. Now we see everyone is selling their dollar and collecting the dinar once again because of the 1300 rate.

IMO it would seem to have been wise to come out with a much higher rate than what they have now. Now we see Iraqi's ditching the dollar and purchasing the dinar. This puts more dinar in circulation and limits their goal of a higher rate. I hope that is the goal. Its just a head scratcher for me. Appreciate some clarity..... Thanks again.Someone please explain to me how this makes any sense. I'm confused ..... obviously. Thanks 

Zeeman: yes i am a bit confused also. 1300 is a good starting point but i have 3 questions that maybe some one can answer.number one is the 1300 still at a program rate? number 2 are the OFAC  sanctions lifted or going to be lifted? number3 are they still going to drop the 3 zeros? thanks in advance

Patriots12:  Ill take a stab for you and only IMO   ... Yhey are still under chapter y due to a program rate only... so yes ths is still a program rate and hoepfully part of the process to temporarily assist inflation and start moving towards a real international rate... next move is critical and I hope it is quickly or i will have my doubts   IMO....  yes zero's have to be dropped if this is going to go international and bring in the 3 zero notes...  keep in mind dropping the zero's is really just the math of a new internationally recognized rate, IMO hopefully we are in that process yesterday with the internal move to 1310   all IMO

DeepWoodz:  Imo….About ditching the dollar…. If you think the citizens are getting rid of the dollar en mass, who is buying it from them if not other citizens? They are, imo, not wanting to let the dollar go at this point because let’s face it, until they have lower denoms, the same old reasoning stands concerning the 000’s. They aren’t user friendly.

Im just as confused how all this works but seems to me they are stuck in a paradox.

I think the supply of dollars is dwindling. They will be forced to use the 000’s they have remaining in those mattresses. The CBI is a business that will use whatever means necessary to reduce the amount they owe out after the rate change. At least I would.
(Could also push more people to the banks to open them dang accounts as well, digital is much easier to transact if you don’t have dollars.)

Obviously the 1300 is a slap in the face if that’s all you see, but Iraqs financial delegation didn’t have all these meetings with the UST to keep a worse than sanctioned rate. Consider all the things they’ve done and all the things WS and Frank have brought, and that’s just the human side. We know what’s coming.  imo

Patriots12:  Well said   Im with you   IMO    they have to move fast... they were behind what they had to do and thus the CBI replacement to Alaq...  and yes...  its confusing   same for me... 1300 is a slap in the face    they have to go to one  1 currency and quick  IMO   market is shocked and will continue to be   

DeepWoodz:  Imo  RIGHT! Frank was pushing the cashless society pretty hard recently. I added this while you were posting…..(Could also push more people to the banks to open them dang accounts as well, digital is much easier to transact if you don’t have dollars.)   kinda makes sense to me

DoTalkToMe:  We all know this new rate is still a BS program rate.
We still await for an RI and REER.
I question if this is just a temperary move to pull more old 3 zero notes off the street.
As far as some entity trying to crash Iraq currency and scuttle everything.
I believe it was very likely the case.
At least they caught it on time. But it should never have happened in the first place

KandG:  Hopefully this one is just propaganda to hide the real rate. Does nothing for the people IMO

"The Iraqi government revealed, on Wednesday, that the Ministry of Finance has begun to re-prepare the general budget for the year 2023 according to the new exchange rate (130) thousand dinars per 100 dollars"

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Clare:  Iraqi Finance requires government banks to adopt the new exchange rate

2/08/2023

Today, Wednesday, the Ministry of Finance directed the two governmental banks, Al-Rafidain and Al-Rashid, to adopt the new exchange rate for the dollar against the Iraqi dinar.

The ministry said in a statement today that the two banks have initiated procedures for selling dollars at the outlets of Baghdad International Airport at a price of (1320) dinars per dollar, in order to enhance the value of the local currency against the dollar by facilitating procedures and achieving stability in exchange rates.

The Ministry confirmed that this measure comes to alleviate the burden of the citizen and in line with the plan of the government, the Ministry of Finance and the Central Bank to reduce the exchange rate as follows:

(1300) dinars per dollar, the purchase price of a dollar from the Ministry of Finance

(1310) dinars per dollar, the price of selling dollars to banks through the electronic platform

(1320) dinars per dollar, the selling price of the dollar from banks and non-bank financial institutions to the final beneficiary.

The Ministry of Finance considered this step as part of the executive plans for the ministry's curriculum and its policy towards developing the banking and financial sector in Iraq.   LINK

Henig:  Obelisk Hour: Changing the country's banking system inaugurates electronic currency handling

Feb. 8, 2023

Baghdad/Obelisk: The obelisk publishes the most prominent interactions of television dialogues on Tuesday.

State of Law member Adel Al-Mana during a televised interview:

– The rise in the dollar exchange rate did not make the Sudanese government idle

– There is a package of decisions that will be issued by the Sudanese government during the next two days that will have great stability in the exchange rate

– The Sudanese government will not respond to any pressure, whether internal or external
– Currency conversion will be electronically through the platform after the decision of the Sudanese
government – The Sudanese government and the Central Bank are working to change the country's banking system better

Writer and political researcher Jassim Al-Musawi during a televised interview:

– Lavrov carried in his sleeve the file of Russian contracts in Iraq

– Power governs relations and balances between countries – Iran behaves like a superpower because of its strategic alliances Iraq is the oldest country in the region with relations with Russia

– America plays with fire when "gangs" move towards Turkey and Iran
– Russia maintains relations between contradictory countries in the region

– Russia has positive positions and stood against the US occupation of Iraq

– America prevented contracts between Iraq and China when it moved its "tails" – Russia displayed its strength and victories when entering the Ukraine war – Russia was not an occupying power in the region unlike America and Britain

– Moscow seeks strategic relations with the countries of the region
– The restrictions of the US Federal Reserve imposed on Iraq are political

– America seeks to restrict Iraq so that it does not open up large areas in its relations

– The Middle East is the "key to the world"

– Iraq must diversify its economic dealings – Iraq enjoys political stability and a strong government that seriously fights corruption – The Iraqi dinar is the best currency in the region

– America blackmails Iraq with dollars

Alina Suponina, a political adviser at the Center for International Studies, during a televised interview:

– Lavrov's visit to Baghdad is important and not the first

– Russia was delayed by "returning a little" to Iraq – Russia's historical presence in Iraq – Russia was relatively absent in Iraq due to "priorities" – Russia does not ask much because it knows the extent of US pressure on countries

– There are "gaps" in the US sanctions regime – Russia has a way to settle differences between Baghdad and Erbil
– Moscow supports a unified Iraq unlike Washington

Spokesman for the Islamic Supreme Council Ali Al-Dafaei during a televised interview:

– We applaud the government's decision to raise the value of the national currency – The Sudanese government has taken several measures to solve the dollar crisis – The decision to reduce the dollar was a victory for the current government – Citizens' confidence is the real basis for the success of any government – The previous government and the former central bank governor failed to manage the currency smuggling crisis

– The Sudanese government is serious about putting an end to the issue of currency smuggling

– The government needs parliamentary support to implement the ministerial curriculum

– The people's meeting with the government will silence negative voices

– The Iraqi people are aware of the popular movements targeting the government – The government is continuing to implement its ministerial
curriculum

– There must be Iraqi sovereignty over its funds

– The availability of national will restore sovereignty to the Iraqi economy

– The Sudanese government has proven to be a government of words and deeds
– The government's decisions to reduce the dollar were courageous and timely

– The decision to reduce the dollar is the first step to economic reform

– The government faces a major challenge to find strategic solutions to the crisis of the economy, such as reviving industry

– The step of reducing the dollar is wise, but it is not the final solution

– We need to enact investment laws and protect the national product

Economist Majed Al-Suri during a televised interview:

– The decision to raise the dollar previously was wrong and the refusal of the Central Bank

– The US Federal Reserve imposed the use of the platform on Iraq two years ago

– The financial problem does not lie in the exchange rate, but in market prices

– The greed of traders exacerbated the dollar crisis

– The dollar crisis was exploited by some traders during the current period

– Those affected by government decisions will stand against the Sudanese   LINK

Tuesday "Vietnam News" Posted by Henig at KTFA 2-7-2023

KTFA: Vietnam

Henig: Businesses exporting medicinal herbs to China required to register

13:05 | 06/02/2023

Vietnamese businesses which want to export medicinal herbs to China must submit information about growing areas and packaging establishments to the provincial Departments of Agriculture and Rural Development.

The departments were required to report to the Plant Protection Department under the Ministry of Agriculture and Rural Development by April 15, 2023.

The Vietnamese authority will the work with the General Administration of Customs of China (GACC) to grant export licences to eligible exporters.

According to the Plant Protection Department, GACC has informed it about China’s plan to review the supervision system for exported medicinal herbs and the registration of enterprises which produce, process and preserve medicinal herbs for export to China.

To meet the requirements of the Chinese side and minimise its impacts on the export of Vietnamese medicinal herbs to the market, the Plant Protection Department asked agencies to review the growing areas and packing facilities of medicinal herbs.

Source: VNA    LINK

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Henig:  Trade ministry to support enterprises in boosting exports

February, 07/2023 - 08:01

The Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) will collaborate with relevant agencies in carrying out measures to help enterprises expand their shares in foreign markets, said Vũ Bá Phú, head of the agency.

HÀ NỘI The Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) will collaborate with relevant agencies in carrying out measures to help enterprises expand their shares in foreign markets, said Vũ Bá Phú, head of the agency.

Localities will get support relating to trade promotion activities in key markets, the official told Sài Gòn Giải Phóng (Liberated Saigon) newspaper.

Support programmes will be devised, aiming to improve the capacity for enterprises to meet the trend of green trade, he said, adding the MoIT will also facilitate the connection between businesses and localities.

Attention will be paid to enhancing the effectiveness of the National Brand Programme, thus helping enterprises’ products go deeper into global supply chains.

According to the MoIT, the total import-export turnover of Việt Nam reached US$732 billion last year, up 10 per cent year-on-year.

Minister Trần Hồng Diên said rising inflation, energy shortages and disruptions of raw material supply chains in many countries will result in a decline in orders. This will have a negative impact on Việt Nam’s economy, he noted.

To maintain traditional export markets as well as expand new ones, it is necessary for enterprises to grasp market signals, the minister said, noting that Vietnamese trade offices abroad play a vital role in collecting market information and providing it for enterprises, associations and localities.

Trần Công Quỳnh, Vietnamese Trade Counsellor in Canada, said her trade office is working with the textile, garment, footwear and food processing associations in the host country to capture demand for importing goods from Việt Nam. A delegation of Canadian businesses is expected to arrive in Việt Nam to explore opportunities in this regard, she revealed.

A representative of a Vietnamese trade office in Europe said preparations are underway to bring domestic trade promotion delegations to international trade fairs in this continent, including Global Seafood Expo 2023 from April 25-27 in Barcelona, Spain and Fruit Attraction 2023 from October 3-5 in Madrid. VNS   LINK

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Henig:  M&A 2023 prospects looking up

06:00 | 07/02/2023

Although the market for mergers and acquisitions (M&A) in Vietnam decelerated in 2022, many economists are looking ahead to plentiful prospects for 2023

From quantity to quality

In its most recent report, the Ministry of Industry and Trade's Vietnam Competition and Consumer Authority (VCCA) found that M&A activities encountered significant challenges in Vietnam and around the world. It noted that the world is experiencing rising inflation and economic contraction, and that interest rate hikes to combat inflation have driven up the price of M&A. With the securities market in constant flux, reaching an agreement on the value of M&A deals has also posed challenges.

2022 saw a decline in M&A compared to the pre-pandemic levels, according to economists. However, the quality of M&A deals improved at a faster rate than the quantity, with investors shifting their focus from "opportunity" to "strategy" in favor of creating long-term profit rather than capitalizing on opportunities that present themselves on temporary terms.

Data from KPMG Vietnam show that in the first 10 months of 2022, the total value of M&A deals reached US$5.7 billion, down 35.3 per cent compared to the same period in 2021. Singapore is the leading country in cross-border transactions with about US$1.2 billion, followed by the US with US$570 million and the Republic of Korea (RoK) with US$370 million. The average size for a transaction of published value has decreased from US$31.1 million in 2021 to US$16.5 million in the first 10 months of 2022.

M&A activity has been relatively dormant among domestic firms until recently. In a reversal, domestic investors are increasing their share of deal value compared to their overseas counterparts. In 2022, investors from Singapore, the US, the RoK, and Spain (the top five investors in the M&A market) typically contributed some 40 percent to the overall deal value.

Future M&A drivers

Tran Quoc Phuong, Deputy Minister of Planning and Investment, said maintaining political stability, economic growth and macroeconomic stability, inflation control, and business investment environment improvement will be an important foundation to both attract and promote investment.

“These will be big drivers for Vietnam’s economic growth in 2023, and the driving force for Vietnam’s M&A market to develop. The recent slowdown of such activities in Vietnam is expected to be short-term and will recover soon. The market in the country has always been assessed as a safe and attractive market to activate new opportunities,” Phuong said.

Dr. Nguyen Cong Ai, Deputy General Director at KPMG Vietnam, foresees three drivers of M&A expansion in 2023 and 2024. He pointed particularly to the sustainable energy development trend gaining increasing traction in Vietnam, and the country’s wave of digital change and innovation. The middle class is also growing quickly, creating a promising consumer market. Therefore, investors with adequate funds will soon be able to purchase attractive projects at reasonable prices. Ai believes that when interest rates rise and liquidity decreases, foreign investors will contribute more than ever before.

On the same note, Dr. Le Duc Khanh, Investment Capability Development Director of VPS Securities Joint Stock Company agrees that many businesses are facing difficulties, forcing them to restructure or liquidate valuable assets. Therefore, 2023 will likely be a hectic year for M&A in the finance, real estate, technology, science, consumer goods, and retail industries.

According to economists, numerous new investors will enter the Vietnam M&A market. Middle Eastern investment institutions, for example, seeking to alter the economic structure and reduce reliance on oil, are supporting investments in startups and renewable energy. Therefore, investors from the Middle East will invest in developing nations with high growth rates, such as Vietnam.

Future M&A in Vietnam will be primarily focused on digital transformation, clean energy, the consumer market, and ESG (environment, social, and governance) awareness.

Ngan Thuong    LINK

Henig:  Việt Nam wrestles with labour productivity issue when heading to innovation-based development

February, 07/2023 - 08:50

Rasing labour productivity is key to Việt Nam's sustainable development strategy by 2030.

*Võ Trí Thành

Việt Nam achieved and exceeded 14 out of 15 targets assigned by the National Assembly for 2022 with many impressive numbers including GDP growth, export turnover and the number of newly-established and re-opened businesses. Only labour productivity was under expectations.

Việt Nam’s labour productivity was expected to increase by between 4.7 per cent and 5.2 per cent on average in 2022, higher than the average growth rate of 4.7 per cent in 2021 but behind the target of 5.6 per cent set for the whole of 2022.

On January 10 this year, the Government issued Resolution No 06/NQ-CP on the development of a modern, efficient, sustainable and integrated labour market serving quick socio-economic recovery, setting the average labour productivity target for 2023 at more than 6.5 per cent.

Labour productivity is an important economic indicator that is closely linked to economic growth, competitiveness and living standards within an economy. According to International Labour Organisation (ILO), labour productivity represents the total volume of output (measured in terms of Gross Domestic Product, GDP) produced per unit of labour (measured in terms of the number of employed persons or hours worked) during a given time period. This indicator provides general information about the efficiency and quality of human capital in the production process.

Paul Krugman has said: “Productivity isn’t everything, but in the long run it is almost everything.”

After more than 35 years of implementing Đổi Mới (Renewal) policy, Việt Nam has made remarkable achievements in socio-economic development. The economy has continuously grown positively for many decades, averaging 6.8 per cent during 2016-19. Even in challenging times due to the COVID-19 pandemic, Việt Nam's economy still maintained positive growth.

Despite 2022 being a tumultuous year for the world economy, Việt Nam’s economy still grew by over 8 per cent, the highest pace since 1997.

The process of renovating the growth model has also witnessed important initial results towards gradually reducing dependence on the exploitation of natural resources, raw exports and cheap labour and slowly turning to the strong application of science, technology and innovation.

The Vietnam 2035 Report (World Bank, 2016) emphasises Việt Nam's aspirations of modernity, industrialisation and a higher quality of life on “three pillars: balancing economic prosperity with environmental sustainability, promoting equity and social inclusion, and bolstering the state’s capacity and accountability. The rapid growth needed to achieve these aspirations will be sustained only if it stands on faster productivity growth and reflects the costs of environmental degradation.”

In its draft project on the national programme on increasing labour productivity to 2030, the Ministry of Planning and Investment in December 2022 pointed out Việt Nam’s labour productivity improved relatively quickly and continuously in the period of 2011-21, increasing 2.5 times from VNĐ70.3 million (US$3,004) per employee in 2011 to VNĐ172.8 million ($7,385) per employee in 2021. The average growth rate of labour productivity in 2011-20 reached 6 per cent. However, the growth rate was not stable and has shown signs of slowing down.

In 2020 and 2021 when Việt Nam was hit hard by the COVID-19, Việt Nam's labour productivity grew by 5 per cent and 3.8 per cent, respectively. World Bank data shows that although Việt Nam's labour productivity has improved relatively quickly in the 2011-21 period, it is still low compared to other countries in the region in absolute terms.

By 2021, Việt Nam's labour productivity reached $18,792, equivalent to 10.25 per cent of Singapore, 14.20 per cent of Brunei, 24.32 per cent of Japan, 22.67 per cent of South Korea, 33.02 per cent for Malaysia and 59.15 per cent for Thailand. In Southeast Asia, Việt Nam's labour productivity is only higher than that of Laos, Cambodia, Myanmar and East Timor. In addition, the Asian Productivity Organisation Report (APO, 2020) also shows that Việt Nam's labour productivity lags by 60 years behind Japan, 40 years behind Malaysia and 10 years behind Thailand.

Việt Nam has searched for solutions to boost labour productivity quickly and sustainably. However, the pandemic in the past three years has significantly affected the implementation of this task.

The report on the evaluation of the five-year socio-economic development during 2016-20 and the tasks for the next five years recognised: “Science, technology and innovation have yet to become a driving force to improve labour productivity, competitiveness and promote socio-economic development. Labour productivity remains much lower than in other countries in the region and the gap continues to widen.”

Most recently, the 2022 Global Innovation Index Report of the World Intellectual Property Organisation (WIPO) ranked Việt Nam at 48th out of 132 countries and economies, a slip of four places compared to 2021, although it was still among the group that has made the greatest progress over the past decade and was one of only three middle-income economies (along with Iran and the Philippines) to have the highest innovation performance in 2022.

The Government’s leader Phạm Minh Chính has affirmed that increasing labour productivity is an important factor to improve the competitiveness, independence and self-reliance of the economy. Việt Nam’s labour productivity has improved significantly but not fast enough to close the gap with other countries in the region.

Prime Minister pointed out the main reasons including inadequate awareness and investment for this task while the quality of human resources is still limited. The growth rate of trained workers, especially those with degrees and certificates, is still low along with backward technology and unreasonable economic structure.

The Government is expected to approve the MPI’s proposal on the National Programme on increasing labour productivity to 2030 with some key targets including raising the average labour productivity growth by 6.5-7 per cent/year, of which the growth rate of the processing and manufacturing industry is 6.5-7 per cent/year; of agriculture, forestry and fishery at 7-8 per cent/year; of service sector at 7-7.5 per cent/year; the labour productivity growth rate of key economic regions and five centrally-run cities is higher than the national average labour productivity growth rate in the 2022-30 period.

The project also targets to increase the proportion of contributions of science, technology, and innovation to the growth of total factor productivity (TFP) to 45 per cent of GDP by 2025 and 50 per cent by 2030.

By 2025, investment in science and technology will reach 1.2-1.5 per cent of GDP. By 2030, the number of enterprises meeting the criteria of science and technology enterprises and the number of innovative start-ups will increase by two-fold compared to 2020; the rate of enterprises having innovative activities reached 40 per cent of the total number of enterprises.

In terms of international standards, Việt Nam will strive to be listed in the top 40 countries ranked by the Global Innovation Index by 2025 and the top 60 of the United Nations e-Government Development Index (EGDI). It will also strive to be in the leading group of ASEAN in terms of labour productivity growth by 2030.

To realise these goals, besides many solutions such as improving the business investment environment to attract both foreign and domestic investment in high-added value industries, enhancing the competitiveness of industries, and developing regional economic linkage, the policies should focus on two key areas - the quality of human resources and promoting science and technology, innovation and digital transformation.

Việt Nam needs to build a strategy for developing human resources to meet the requirements of the Industry 4.0 and digital transformation through completing mechanisms and policies for labour market development towards greater flexibility and integration through strengthening employment services to connect workers with employers and standardise vocational training qualifications according to national and international vocational skills standards.

The country should develop mechanisms and policies to attract overseas Vietnamese experts, intellectuals and workers to return to work in Việt Nam, participate in innovation activities, cooperate in capacity building and improving labour productivity in Việt Nam, expand the network of links and promulgating policies to encourage the use of Vietnamese talents abroad.

With regard to innovation, the policymakers are expected to amend and supplement legal documents related to science, technology and innovation to remove difficulties and create a favourable environment for businesses, especially small and medium enterprises to innovate, perfecting the policy of socialising investment resources for scientific research, technology development and innovation, promote the policy of commercialising research results, technology development and improvement. VNS    LINK

KTFA Members "Tuesday Iraq News" 2-7-2023

KTFA:

Clare:  Press release

The Board of Directors of the Central Bank of Iraq presents to the Prime Ministry the results of its study regarding the adjustment of the official exchange rate to the dollar.

 Central Bank of Iraq
Media Office
2/6/2023     LINK

Clare:  Adviser to the Prime Minister reveals a new package of the process of reforming the Iraqi economy

2/07/2023

Today, Tuesday, the advisor to the Prime Minister, Hisham Al-Rikabi
, revealed a new package of the process of reforming the Iraqi economy.
Al-Rikabi said in a tweet on his Twitter account, which was followed by the Iraqi News Agency (INA).

"Wait for the next package of reforming the Iraqi economy," he added.
Today, Tuesday, the Council of Ministers approved the decision of the Board of Directors of the Central Bank of Iraq to adjust the exchange rate of the dollar against the dinar, equivalent to 1,300 dinars to one dollar.   LINK

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Clare:  The Council of Ministers approves the amendment of the exchange rate of the dollar, equivalent to 1,300 dinars

2023-02-07

The Council of Ministers approved, on Tuesday, adjusting the exchange rate of the US dollar to be 1,300 dinars.

A brief statement by the Media Office of the Council of Ministers, received by Shafaq News Agency, stated that the Council of Ministers approved the decision of the Board of Directors of the Central Bank of Iraq to adjust the exchange rate of the dollar against the dinar, equivalent to 1,300 dinars to one dollar.

 This comes after the exchange rate of the dollar against the dinar rose to unprecedented levels, as it exceeded in some days the price of 1800 dinars per dollar.

 Since the first month of the new government taking over the administration of the country, the exchange rate of the US dollar against the Iraqi dinar has witnessed an upward rise, to exceed 1,500 dinars per dollar before the end of last year.

Since the beginning of this year, the exchange rate of the dollar has witnessed sudden jumps, as it crossed the threshold of 1,600 dinars to the dollar, and it remained fluctuating during the month of last January in the square of 1,600, but during the month of February, the dollar crossed the barrier of 1,700 dinars, and in some days it approached 1,800 dinars per dollar.

These booms and fluctuations prompted the government and the Central Bank of Iraq to take several measures in an attempt to control the exchange rate, but they have not achieved anything so far, while some say that the dollar exchange rate may continue with this rise.   LINK

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Clare:  Parliament calls on the government to expedite the submission of the budget according to the new exchange rate

2/07/2023

Today, Tuesday, the First Deputy Speaker of the House of Representatives, Mohsen Al-Mandalawi, called on the government to present the budget according to the new dollar exchange rate, calling on it to tighten control over merchants and exchange rate manipulators to control the market.

Al-Mandalawi said in a tweet on Twitter: "We appreciate the cabinet's approval of the decision of the Central Bank's board of directors to adjust the exchange rate of the dollar against the dinar, and we affirm our support for these efforts to relieve the burden of the people."

Al-Mandalawi asked the government to "tighten control over merchants and exchange rate manipulators to control the market," calling on it to "expedite the submission of the budget according to the new price."

Today, Tuesday, the Council of Ministers approved a change in the exchange rate, equivalent to 1,300 dinars to one dollar.  LINK

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Clare:  The Central Bank of Iraq begins selling dollars at the new official rate

 February 07, 2023

The Central Bank of Iraq will start selling the dollar at the new official rate, starting tomorrow, Wednesday, 2023/2/8, and will continue its procedures and steps until the dollar exchange rate stabilizes according to the official exchange rate.

It declares its readiness to meet all legitimate requests of individuals, companies, projects and offices to achieve the bank's goal of stabilizing the general level of prices to protect the purchasing power of citizens, especially since the new exchange rate granted to traders and others provides lower prices for citizens.

The exchange rates will be as follows:

1300 dinars per dollar purchase price of the dollar from the Ministry of Finance.

1310 dinars per dollar The selling price of the dollar to banks through the electronic platform.

1320 dinars per dollar selling price of dollars from banks and non-bank financial institutions to the ultimate beneficiary.

Central Bank of Iraq
Media
Office 2023/2/7     LINK

Henig:  Parliamentarian: Iraq has actually begun to break the American will

Today, Monday, the representative of the Al-Fateh Alliance, Muhammad Karim, considered that Iraq has begun to break the American will that it is following according to the principle that you are either on my side or you are my opponent, while stressing that Iraq is in dire need of more international relations to develop expertise and exploit the available capabilities.

Karim said in a press interview seen by “Takadum” that “Iraq has already begun to get rid of the American arrogance that it is moving from controlling the country’s resources,” noting that “the government is in dire need of more international relations to develop expertise and exploit the available capabilities, as well as The government curriculum on the ground.

And he continued, "The wise leadership of the Sudanese will bypass America's card that it pays to double the value of the dinar in order to use it as a card of pressure on the government and the people," pointing out that "the economic situation in Iraq is the best that it has experienced in the past, and it is imperative for everyone to use it in building the country."

Regarding the international relations that the government has begun to establish, Karim explains: “Iraq has begun to break the American will, which it is advancing according to the principle that either you are on my side or you are my opponent.”    LINK

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Henig:  Promising to fulfill it.. The Speaker of Parliament receives an official invitation to visit Russia

 1 hour ago

Today, Monday, Parliament Speaker Muhammad al-Halbousi received the Minister of Foreign Affairs of the Federal Republic of Russia, Sergey Lavrov, and his accompanying delegation.

The meeting discussed, according to a statement by the parliament speaker’s office, “bilateral relations between the two countries, and means of cooperation in a number of fields, including food security and combating terrorism.”

During the meeting, the Speaker of the House of Representatives affirmed, "Iraq's keenness to maintain relations with friends, and to strive through legislative institutions that represent peoples to restore global stability and security."

For his part, the Russian Foreign Minister expressed his country's desire to maintain bilateral relations between the two countries, and cooperation in all fields. Lavrov also conveyed the greetings of the Russian Duma Speaker to the Parliament Speaker, reiterating the Council's invitation to visit Russia, and Al-Halbousi promised to meet it as soon as possible.   LINK

KTFA Monday Night CC "WalkingStick Wants to Talk To You KTFA" 2-6-2023

KTFA

Monday Night Conference Call

2-6-23……WS (WalkingStick)  WANTS TO TALK TO YOU KTFA…..

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=xCwCeP_ffhA

Some Monday "Vietnam News" Posted by Henig at KTFA 2-6-2023

KTFA:

Henig:  Vietnam’s retail sales forecast to reach 350 billion USD by 2025

08:00 | 06/02/2023

The scale of the domestic retail market is expected to increase from 142 billion USD at present to 350 billion USD by 2025, contributing 59 per cent of the national GDP, according to the Ministry of Industry and Trade (MoIT).

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 growth of retail sales is being supported by rise in income and the strong recovery of the tourism sector as well as relevant sectors such as transport and accommodations, as well as the effectiveness of inflation control measures.

There are signs of vibrant retail activities as many foreign investors have announced their plans to return after COVID-19.

Recently, Thailand’s Central Retail said that it will pump an additional 20 trillion VND (852.87 million USD) into the Vietnamese market in the next five years, pushing its investments in Vietnam in the 2022-2026 period to 65 trillion VND. 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 Hanoi, raising its total trade centres in Vietnam to 20.

In 2023, four trade centres are scheduled to be launched - Central Premium Plaza, Vincom Megamall Grand Park, Sunrise City Central and Emart 2 with a 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.

Vietnam’s total retail sales of goods and services in January was estimated at 544.8 trillion VND, up 5.2 per cent from the previous month and 20 per cent as compared with the same period last year, according to the General Statistics Office (GSO).

The office explained that the hike was attributed to the growing consumption demand as Tet (Lunar New Year), the biggest and longest festival in the Southeast Asian nation, fell in the month.

Of the total, the retail sales of goods were 435.4 trillion VND, a year-on-year rise of 18.1 per cent, with the biggest increase seen in garments (27 per cent).

Source: VNA   LINK

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Henig:  Market expected to move in a narrow range this week

February, 06/2023 - 08:15

The market needs a period of accumulation in a narrow range to create a solid foundation before a new uptrend can be created.

HÀ NỘI — The Vietnamese stock market struggled following the Tết holiday, but liquidity improved as selling pressure increased, reflecting investors' desire for profit-taking. However, experts remain positive about the market's development in the future.

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) ended last week at 1,077.15 points, while the HNX-Index on the Hà Nội Stock Exchange (HNX) was at 215.28 points.

For the week, both indices recorded a weekly loss, with the former losing 3.6 per cent and the latter down 2.5 per cent.

Trading value on the main exchange HoSE increased by 23.1 per cent compared to the previous five trading sessions to nearly VNĐ66.65 trillion (US$2.8 billion), corresponding to a 25.1 per cent gain in trading volume to over 3.6 billion shares.

Similarly, the trading value on the HNX also advanced by 38.6 per cent to VNĐ6.9 trillion, equivalent to a 40 per cent increase in trading volume to 469 million shares.

The market's correction caused most of the stock industries to decline. Of which, financial stocks dipped the most with 4.8 per cent in market capitalisation, followed by realty and information technology stocks.

Foreign investors were net buyers on both exchanges last week, worth more than VNĐ1.8 trillion, supporting the overall market. In terms of net volume, they bought Hoà Phát Group (HoSE: HPG) most with 39.7 million shares.

Others were fund certificates FUEVFVND and Sacombank (STB) shares with 13 and 12.9 million units, respectively.

On the contrary, Sieu Thanh Corporation (ST8) was sold the most with 6.4 million shares.

Analysts from Saigon - Hanoi Securities JSC (SHS) said that last week was a strong correction week for the market as the VN-Index dropped more than 40 points during the week and closed at 1,077.15 points. The market has entered a correction week after four weeks of consecutive gains since the beginning of 2023.

However, SHS believes that the market is in a recovery phase after escaping the downtrend but failing to establish an uptrend immediately. The market needs a period of accumulation in a narrow range to create a solid foundation before a new uptrend can be created.

In the short term, SHS believes that last week’s correction was predictable and necessary to accumulate more, and the recovery wave may not be over. And after the correction period, the VN-Index may still reach the level of 1,150 points, the securities firm added.

The current phase of the market is in a recovery wave with a wide range after a downtrend, and gradually the market will fluctuate less and less to accumulate. However, in the accumulation phase, more and more medium- and long-term investment opportunities will form, especially in the group of strong stocks that are less affected by the recent downtrend and those that recover earlier and tend to break the peaks.

Meanwhile, VCB Securities Company (VCBS) said that the short-term risks of the VN-Index will be reduced temporarily.

It is highly likely that the market will continue to fluctuate in a narrow range and that there will be a clearer divergence among groups of stocks in the coming sessions. In that case, the rebound of demand might help the VN-Index jump after touching the MA20 crossover area.

"Investors can disburse capital with a proportion of 10-15 per cent for large-cap banking ticker symbols, and that tends to lead the general market to recover," said VCBS.

— VNS    LINK

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Henig:  E-wallet market in Việt Nam estimated to reach 50 million users by 2024

February, 06/2023 - 08:53

The modern e-wallet market in Việt Nam is surging and is expected to reach 50 million active users by July 2024, experts said.

HCM CITY — The modern e-wallet market in Việt Nam is surging and is expected to reach 50 million active users by July 2024, experts said.

In a report, Robocash Group said: “the modern e-wallet market in Việt Nam is booming with 90 per cent of the market falling on three wallets: Momo, Moca and ZaloPay.”

The country is seeing tough competition, given that there are 40 electronic wallets in operation, the report said.

Robocash Group estimates that by July 2024, the e-wallet market will have 50 million active users, 100 million by May 2026, and 150 million by July 2030.

In addition to the already mentioned wallets, there are three other major competitors including ShopeePay (AirPay), ViettelPay and VNPT Pay. The top six already account for 99 per cent of the market. 

According to a Decision Lab study, at the end of 2021, 56 per cent of the Vietnamese population that had an e-wallet use Momo. The portion is 17 per cent for Shopee Pay, 14 per cent for Zalo Pay, 8 per cent for ViettelPay, 2 per cent for Moca and 1 per cent for VNPT Pay.

Robocash analysts observed that over the past four years, the number of active users has increased by an impressive 330 per cent, from 12.3 million to 41.3 million.

About 57 per cent of the country’s adult population actively uses e-wallets, in contrast to just 14 per cent at the end of 2018, which is considered significant penetration. 

The Vietnamese e-wallet market can compete with traditional or digital banking, Robocash said, adding that the current six super apps mentioned above have unlimited potential to attract new customers not only within Vietnam itself, but also beyond its borders.

By July 2030, the market share of active users will likely be distributed as follows: Momo 47.3 per cent, ViettelPay 30.2 per cent, ZaloPay 16.5 per cent, VNPT Pay 5.6 per cent, Moca 0.4 per cent.

— VNS    LINK

Henig:  Durian prices hit record high as demand surges

February, 06/2023 - 08:16

Durian is being purchased by traders in Mekong Delta region for VND150,000-190,000(US$6.4-8.1) a kilogramme, three times higher than the same period last year and the highest level ever.

TIỀN GIANG — Durian is being purchased by traders in Mekong Delta region for VNĐ150,000-190,000(US$6.4-8.1) a kilogramme, three times higher than the same period last year and the highest level ever.

The reason for the high price of durian is that durian is still off-season and supply is low. Meanwhile, strong demand is coming from the Chinese market as well as domestic markets.

Huỳnh Tấn Lộc, director of the Ngũ Hiệp Durian Co-operative in Tiền Giang Province’s Cai Lậy District, said the prices of the fruit have increased sharply since the beginning of this year.

The country’s largest durian producing province has more than 17,000ha of the fruit, mostly in the Cai Lậy, Cái Bè and Châu Thành districts and Cai Lậy Town.

The orchards have an average yield of 20-25 tonnes per hectare and farmers harvesting now can earn VNĐ1-1.5 billion ($43,000-64,000) per hectare, the highest of any speciality fruit, according to the provincial Department of Agriculture and Rural Development.

But their output is not large because it is the off-season, it said.

Trần Minh Kha, a trader from Cần Thơ City, said after a week of buying durian in Tiền Giang, he still did not have enough quantity to meet demand as the price of his inventory continued to increase every few days. 

Nguyễn Thị Hạnh, a trader from HCM City, said that she has had to pay a commission fee for brokers who can help her buy durian.

"This is the first time I pay commissions for brokers. However, there are still not enough durians to supply my partners," she said.

Every day, she can only buy about 16-17 tonnes of durian while the demand is up to hundreds of tonnes, Hạnh said.

In 2022, durian export turnover was at nearly $400 million, and of that, $300 million to China.

According to the Việt Nam Fruit and Vegetable Association, Vietnamese durian has many competitive advantages in the Chinese market. Both Thailand and Philippine durian exports are seasonal, while Vietnamese durians have year-round exports.

In addition, the distance to transport durian from Vietnam to China only takes about one and a half days, which ensures fresh fruit and cheaper shipping costs than competitors' goods.

Currently, the price of Vietnamese durian sold in China is still much cheaper than Thailand and the Philippines durian, so it is popular with the majority of people in this country.

– VNS   LINK

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Henig:  Việt Nam’s industrial production to rise 6.6 per cent in 2023: S&P Global

February, 06/2023 - 08:03

Việt Nam is predicted to record a rise of 6.6 per cent in industrial production in 2023, according to S&P Global Market Intelligence.

HÀ NỘI - Việt Nam is predicted to record a rise of 6.6 per cent in industrial production in 2023, according to S&P Global Market Intelligence.

S&P Global noted the Vietnamese manufacturing sector continued to face challenging business conditions in the opening month of 2023. Production and new orders continued to decline. That said, there were some signs of improvement in demand as new business fell at a softer pace, helped by a renewed expansion in new export orders.

The S&P Global Việt Nam Manufacturing Purchasing Managers' Index (PMI), released on February 1, posted 47.4 in January, up from 46.4 in December but still pointing to a solid monthly deterioration in the health of the manufacturing sector.

January data signalled a further marked decline in manufacturing production, albeit one that was slightly softer than seen in December. Lower new orders were often behind falling output, with some firms indicating that customers had sufficient stock holdings and so didn't need to purchase at present.

Total new orders were down for the third month running in January as demand conditions remained challenging. That said, there were some signs of improvement, particularly with regard to new export orders which rose for the first time in three months. As such, total new business fell at a modest pace that was the softest in the current period of decline.

The cost of raw materials, alongside falling workloads, meant that some firms lowered their purchasing activity again in January. Some signs of improvement in demand conditions encouraged other manufacturers to expand input buying, so that overall purchasing activity was broadly unchanged. Declines in the purchasing of inputs in previous months, however, led to a reduction in stocks of purchases.

Business confidence improved to a three-month high amid hopes that demand conditions will strengthen over the course of the year, feeding through to growth of output. The relaxation of pandemic restrictions in the mainland China was another factor behind the positive outlook. More than half of the respondents were optimistic that production will rise over the next 12 months, according to S&P Global.

Andrew Harker, Economics Director at S&P Global Market Intelligence, said: “Although demand conditions for Vietnamese manufacturing firms remained challenging at the start of 2023, leading to further declines in output, new orders and employment, there were some more positive signs from the latest PMI survey. One of the main positives in January was a renewed expansion in new export orders, with the decline in total new business softening as a result.

“The loosening of COVID-19 restrictions in Mainland China, plus signs that downturns in Europe and the US may be less severe than feared, provided optimism that growth in Việt Nam could be around the corner. Indeed, business confidence improved to a three-month high at the start of the year. S&P Global Market Intelligence is forecasting a rise in industrial production of 6.6 per cent in 2023," he added.

VNS   LINK

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Henig:   Expressions of trust in Vietnam’s business environment

06:00 | 06/02/2023

(VEN) - Representatives of foreign organizations and diplomatic missions praise the Vietnamese Government’s efforts to promote economic recovery and development in 2022 and expect Vietnam will continue bouncing back in 2023.

Agustaviano Sofjan, Indonesian Consul General in Ho Chi Minh City: Vietnam remains an attractive destination

Despite the COVID-19 pandemic, Vietnam remains an attractive investment destination thanks to its strategic geographic location and appropriate economic development policies. Vietnam is improving its connectivity to global supply chains through participation in various free trade agreements (FTAs) including the Regional Comprehensive Economic Partnership (RCEP) Agreement that involves Indonesia. This is an important factor connecting the two countries to the global market.

Vietnam and Indonesia see good prospects for bilateral trade growth in 2023 and ensuing years. The two countries set a target of US$15 billion for 2028.

Matsumoto Nobuyuki, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City: Many Japanese companies want to increase Vietnam investment

Japanese companies want to invest in labor-intensive industries and are interested in fields with high added value, such as automobile and electrical equipment.

The Japanese Ministry of Economy, Trade and Industry is encouraging Japanese companies to diversify global supply chains and is willing to support these efforts. So far, many companies have registered to participate in the program. Some 103 projects have been implemented, 41 of which are related to Vietnam and cover three sectors: metal processing, health services, and electrical equipment. Vietnam can attract more Japanese investment in these sectors.

Alex Tatsis, Economic Section Chief at the US Consulate General in Ho Chi Minh City: Enhancing supply chain adaptability

Vietnam is the 10th largest trading partner of the United States. Supply chains are the focus of the Indo-Pacific Economic Framework for Prosperity (IPEF). Within the IPEF, the US will coordinate with partners like Vietnam to identify fields and products that are important to national security, the recovery ability of the economy, as well as people’s health and safety, taking joint action to enhance the recovery ability in these fields, generate jobs and create economic opportunities for major industries.

The US supply chain linkages with Vietnam will help it promote exports to other markets all over the world more strongly in 2023 and ensuing years. This is why the US is helping Vietnam enhance its role in global supply chains in the long term. Specifically, the US is intensifying trade facilitation and helping enhance the private sector’s competitiveness, especially for small and medium enterprises. The Linkages for Small and Medium Enterprises (LinkSME) Project funded by the US Agency for International Development (USAID) helps Vietnamese SMEs improve manufacturing capacity, access financial resources and promote digital transformation, enabling their participation in global supply chains for the mutual interests of the two countries.

Alexander Nowakowski, Third Secretary of Economic Affairs, Polish Embassy in Vietnam: Trade is a top priority

The Polish business community is boosting trade promotion and investment cooperation with Vietnamese companies in the fields of farm produce and food processing to take advantage of the EU-Vietnam Free Trade Agreement (EVFTA) and other FTAs.

The EVFTA has removed 71 percent of tariffs for Vietnamese exports as soon as it took effect. The remainder will be eliminated within seven years, creating favorable conditions for Vietnamese goods to enter the Polish market in particular, and the EU market in general.

A small country in Middle Europe, Poland is said to have successfully developed a market-driven economy, while maintaining socioeconomic stability. It is one of the fastest-growing economies in the EU. Trade with Poland will facilitate Vietnamese goods’ access to the EU market with 500 million consumers.

Jean Jacques Bouflet, Vice Chair of the European Chamber of Commerce (Eurocham) in Vietnam: Looking towards green exports

The Vietnamese economy is recovering strongly after the pandemic, creating an impetus for 2023 growth. Domestic companies have taken advantage of FTAs to boost exports. However, to compete in the EU market, Vietnamese businesses should abide by strict environmental regulations to meet the demand for green, sustainable goods.

The EU has committed to open, sustainable trade, coping with global challenges based on principles while maintaining competitiveness. The EVFTA with a Chapter on Trade and Sustainable Development will help increase Vietnam’s exports to the EU. However, to make the most of the trade deal, Vietnamese companies should look towards green, sustainable growth.

Green exports, i.e., export of low-carbon, environmentally friendly products, is a promising way for nations wishing to separate economic growth from environmental degradation.

Ngoc Thao   LINK

Sunday "Vietnam News" Posted by Henig at KTFA 2-5-2023

KTFA:  Vietnam

Henig:  18,000 tourists spend US$18.3 million on foreign tours during Lunar New Year

08:00 | 05/02/2023

The number of tourists choosing foreign tours accounted for 55 to 65 percent of the total domestic and foreign tours.

Around 18,000 Vietnamese tourists chose foreign tours through travel agencies in Ho Chi Minh City during the Lunar New Year holiday this year, spending a total of VND430 billion (US$18.3 million), according to a report from the city's Department of Tourism.

The number of tourists choosing foreign tours accounted for 55 to 65 percent of the total domestic and foreign tours.

This is an unexpected growth, according to tourism businesses.

Nguyen Nguyet Van Khanh, director of Vietravel's marketing department, said that the company recorded a total of more than 47,000 tourists registered for Tet tourism, much higher than last year.

This year, despite the effects of the pandemic, tourists are still excited about their plans to travel abroad because their favourite destinations have almost returned to normal and visa policies are also more convenient.

Destinations such as Thailand, Japan, the Republic of Korea, Europe and the US always attract many tourists; some tourists even choose to pre-book foreign tours in March and April 2023.

Similarly, travel companies such as Saigontourist, TST Tourist and Benthanh Tourist have had dozens of tourists going abroad during this Tet holiday.

Tran Quoc Bao, deputy general director of Saigontourist Travel, said that the number of tourists travelling aboard on the Lunar New Year holidays through the company reached 21,000.

Source: vietnamnews.vn    LINK

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Henig:  Vietnam develops green agriculture to increase exports to EU

07:00 | 05/02/2023

Vietnam is paying attention to mobilising resources to invest in developing green agriculture with an aim to raising the market share of its agricultural exports to the European Union.

Last year, Vietnam’s export revenue of agro-fishery-forestry products set a record high of 53.22 billion USD, up 9.3% year-on-year. However, Europe accounted for only 11.3% of its market share.

This is a modest number, although the agricultural sector has optimised many advantages of the EU-Vietnam Free Trade Agreement (EVFTA).

One of the main reasons is said to be the union’s high requirements on farm imports, while Vietnam’s agricultural production has yet to meet green growth requirements.

According to the World Bank’s report, agriculture is the second highest emitter, accounting for 19% of the nation’s total gas emissions in 2020. About 48% of the sector’s emissions and more than 75% of methane emissions are from rice production.

Therefore, to boost farm exports to the EU, the sector is advised to pay more attention to green growth indicators through making policies and roadmaps to reduce greenhouse gas and methane emissions in accordance with international commitments.

Last year, the Ministry of Agriculture and Rural Development approved an action plan to implement the National Strategy on Green Growth from 2021-2030, which aims to specify goals, tasks and solutions to realise the strategy and the national action plan for green growth.

Under the plan, the ministry will work to develop the agricultural sector in an ecological, organic, circular and low-carbon direction to improve growth quality, added value, competitiveness and sustainable development, while reducing pollution in agricultural production and rural areas, and promoting energy efficiency towards carbon neutralisation by 2050. Specifically, the sector aims for 2.5-3% in annual growth, and 42% in forest coverage.

It will also strive to increase the use of organic fertilisers to 30% of all those consumed, along with 30% of pesticides and at least 30% of farm areas using water-saving systems.

The sector will switch 300,000 hectares of rice to other crops with higher economic and environmental efficiency, while aiming for over 2% of organic farms out of the total farming area.

Source: VNA    LINK

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Henig:  Screening tools to enhance FDI quality

06:00 | 05/02/2023

(VEN) - A set of foreign direct investment (FDI) screening tools was launched recently as a result of cooperation between the Vietnam Chamber of Commerce and Industry (VCCI) and the United Nations Development Program (UNDP), promising enhanced effectiveness of foreign investment flows into Vietnam.

Ministry of Planning and Investment data show that Vietnam so far has attracted nearly US$440 billion of FDI from 140 countries and territories.
According to VCCI, FDI is one of the major resources for socioeconomic development. However, certain problems have arisen with FDI projects.

For example, some FDI companies were involved in transfer pricing and tax evasion, or did not abide seriously by environmental regulations, with detrimental social consequences. Local governments had to revoke some investment certificates due to delayed implementation of projects, while some foreign-invested projects still operate at a loss.

Some companies have failed to adhere to environmental laws and regulations. Inspections conducted by the Vietnam Environment Administration in 28 northern provinces from 2017 to 2019 show an increased percentage of FDI companies violating environmental regulations, from 44.5 percent in 2017 to 56 percent in 2018 and 68 percent in 2019.

Moreover, according to a VCCI study, only five percent of FDI projects use high technology, 80 percent use medium technology, and 14 percent use low technology. The local content of products ranges from 20-25 percent, lower compared with other countries in the region.

How to attract quality FDI projects, or to find responsible investors? How to minimize socioeconomic and environmental impacts of low-quality foreign investment projects? These questions are of great concern.

One of the solutions, according to Ramla Khalidi, UNDP Resident Representative in Vietnam, is using a set of screening tools to select responsible investment projects and to ensure their benefits for the Vietnamese people, environment and economy, helping promote Vietnam’s sustainable development.

According to Dau Anh Tuan, Head of VCCI’s Legislation Department, the tools include compulsory assessments by local governments to exclude FDI projects not abiding by Vietnamese laws and causing risks to the socioeconomic life and the environment, while encouraging abidance by international standards and good, responsible business practices.

The screening tools are expected to help improve the quality and effectiveness of FDI in Vietnam, increasing their contributions to Vietnam’s socioeconomic development

Nguyen Hoa    LINK

Henig:  Việt Nam attends Laos’ Bolaven coffee festival

February, 03/2023 - 16:13

Vietnamese coffee businesses are attending Laos’ Bolaven coffee 2023 festival which is underway from February 2-4 in the southern province of Champasak of Laos.

VIENTIANE - Vietnamese coffee businesses are attending Laos’ Bolaven coffee 2023 festival which is underway from February 2-4 in the southern province of Champasak of Laos.

The event is not only an opportunity for coffee growers in Laos to promote organic coffee products to international friends but also a chance for Vietnamese enterprises to expand their market in Laos.

Among the 50 booths displaying products from Laos, Thailand and Cambodia, Việt Nam is represented with three booths introducing its products from three localities, namely Đà Nẵng City, Đắk Lắk and Bình Phước.

Currently, Laos’ coffee products have been exported to more than 20 countries. In 2022, the total export volume of coffee beans of Laos reached about 22,000 tonnes with a value of over US$67 million.

Meanwhile, the General Department of Customs said Việt Nam’s coffee exports in 2022 were valued at nearly $4.06 billion, an increase of 32 per cent over that in 2021.

VNS   LINK

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Henig:  National defence industry sees remarkable progress

February, 04/2023 - 08:57

Lieutenant General Nguyễn Mạnh Hùng, secretary of the General Department of Defence Industry's Party Committee and Political Commissar, speaks to Quân đội nhân dân (People's Army) newspaper on the national defence industry's progress and missions for the future.

Lieutenant General Nguyễn Mạnh Hùng, secretary of the General Department of Defence Industry's Party Committee and Political Commissar, spoke to Quân đội nhân dân (People's Army) newspaper on the national defence industry's progress and missions for the future.

What are the highlights of the national defence industry in 2022?

The national defence industry achieved remarkable results last year with the attention of the Party and the State, the Central Military Commission (CMC) and the Ministry of Defence (MoD), the coordination and support of other ministries and departments, as well as the efforts and determination of everyone in the sector.

One of the highlights was the consultation with the CMC on the new Resolution No 08-NQ/TW on accelerating the defence industry’s development to 2030 and beyond, which was submitted to the Politburo for approval and issuance.

The MoD built an action programme to realise the resolution and submitted it to the Prime Minister for approval. This demonstrates the strategic vision of the mission to develop a self-reliant, multi-functional defence industry that responds to the need to build a modern military. At the same time, a dossier recommending the formation of the Law on National Defence, Security and Industrial Mobilisation was completed, allowing the issuance of circulars and regulations that manage and study the design and production of weapons and technical equipment.

The defence industry also saw breakthroughs in research and mastering a number of core and fundamental technologies; designing, manufacturing and producing a wide variety of arms and equipment, military vessels, as well as supporting tools for law enforcement forces and civilian use.

In the context where market demands are declining and export-import activities encounter multiple challenges, defence industry units have been actively promoting cooperation with local and international businesses to improve production and ensure stable income and employment for workers. The total revenue of the industry reached VNĐ33 trillion (US$1.4 billion) in 2022, of which 59 per cent is economic revenue.

Another notable achievement is the success of international cooperation in the defence industry and the Việt Nam International Defence Expo 2022, which attracted the participation of 174 defence businesses from 30 countries, and received high regard from the international community. This has contributed to the position and reputation of the country, its military and defence industry, opening up numerous cooperation opportunities in the sector with other countries.

Which breakthrough solutions were put in place to achieve these results?

First and foremost, the human factor is identified as the most important. We pay attention to building high quality personnel, particularly in research and development. We also formed specialised research teams that focus on several key aspects. We also link research with production, ensuring that research institutes are the science-technology foundation for factories.

Last year, solutions have been studied and proposed to maintain and improve product quality and repair to ensure stability. Several research projects on new arms production and technical support were also deployed.

In regard to economic development, the General Department of Defence Industry has put forward new strategies and solutions with stringent implementation, which has transformed the thinking on economic development in the sector’s units and departments.

Exchanges and connections with local and international businesses were also established, allowing practical and effective cooperation. Several defence businesses have become partners and suppliers for major enterprises. International standards have also been actively applied in business management and operations, as well as product quality control and digital transformation.

The department also focuses on promoting collective power in its mission and actively coordinates with other units for common growth.

What are the challenges facing the defence industry and the solutions to alleviate these issues?
While the national defence industry has seen comprehensive progress, there are still several shortcomings such as the limited coordination between institutions and policies, or among ministries and departments in the sector’s development. Financial investment and resources for the industry are not yet sufficient, and there are few multi-functional products for civilian use and export. We still have limitations in mastering the fundamental technology and special materials.

To alleviate these issues, the industry has been implementing multiple missions and solutions. The first is focusing on and proposing a complete legal framework for the defence industry, including specific mechanisms and policies on science-technology research and application. We also implement projects that invest in the industry’s potential, mobilising resources and developing high-quality human resources. Business structures were also streamlined to ensure productivity and efficiency.

In addition, the General Department of Defence Industry also suggests and actively consults with the MoD on implementing the mid-term public investment plan in the 2021-25 period, diversifying and effectively using investments to develop the industry’s potential.

The department continues to research and develop mid and long-term investment plans and projects for a modern, multi-functional defence industry. Other tasks include consultation, development and implementation of coordination mechanisms in the sector, promoting joint ventures, technology transfer and international cooperation in product research, production and consumption.

How has the General Department of Defence Industry attracted and developed high-quality human resources?

The defence industry’s human resources are seeing progress in terms of both quantity and quality, with an increase in the number of master’s and doctoral degree holders specialising in new and advanced technology.

To achieve these results, the department has always considered attracting and building high quality human resources a key and fundamental solution, which decides immediate and long-term development.

Recruitments are also conducted based on positions’ demands, reforms and the department’s structure and efficiency improvement. More human resources are assigned to special technical departments. Priority is also given to well-trained people with science-technology and foreign language qualifications, who have the capacity to receive technology transfer, design, produce and repair hi-tech products, and work in an international environment.

The department also looks into and applies suitable policies and benefits to attract and retain qualified staff, such as ensuring a good working environment, conditions for development, income and housing.

To improve the industry’s development in the new context, the department is proposing to the MoD to develop specific policies and frameworks that help attract, train and motivate high-quality human resources.

What are the key missions of the General Department of Defence Industry in the future?

The first mission is to focus on implementing managerial missions assigned by the State on the industry, and building institutions following the direction of the CMC. We will also continue our work on the missions identified in the government’s action programme and the MoD’s plans in regard to Politburo’s Resolution No 08; the draft Law on National Defence, Security and Industrial Mobilisation after receiving the approval for our dossier; and the proposal for specific mechanisms in the industry’s development.

The second is to build the plan and people’s determination for the project restructuring businesses in the 2021-25 period, which focuses on merging enterprises in military ship production and repair, with a strict, determined and appropriate action roadmap that ensures efficiency, stability and growth.

The third is to successfully research and manufacture modern arms and equipment. In 2023, we focus on studying the design and production of strategic weapons, completing the required procedures to start producing military vehicles, effectively implementing science-technology research and development programmes on mobile complexes and new-generation precision weapons, and extending studies in accordance with the MoD’s plans.

The fourth is to continue developing strong research personnel and assign specific tasks to research groups, in order to meet the demands in production goals following Resolution No 08.

— VNS   LINK

Saturday "Vietnam News" Posted by Henig at KTFA 2-4-2023

KTFA:  Vietnam

Henig:  Việt Nam to further contribute to strengthening ASEAN solidarity: ambassador

07:00 | 04/02/2023

ASEAN foreign ministers are expected to propose initiatives and solutions to cope with challenges in the region and the world, strengthen the bloc's solidarity during their meeting in Jakarta on Feb 3-4.

JAKARTA — Vietnamese Minister of Foreign Affairs Bùi Thanh Sơn's attendance at the ASEAN Foreign Ministers’ Meeting Retreat (AMM Retreat) in Jakarta on February 3-4 will contribute to enhancing solidarity and consensus in the ten-member grouping, thus elevating Việt Nam's role and position in ASEAN and international forums, a Vietnamese diplomat has said.

In an interview granted to the Vietnam News Agency ahead of the AMM Retreat, Ambassador Nguyễn Hải Bằng, Permanent Representative of Việt Nam to ASEAN, said given the current complicated circumstances, the meeting is expected to offer an opportunity for ASEAN FMs to discuss and reach consensus on the bloc’s orientations.

The ministers are expected to propose initiatives and solutions to cope with challenges in the region and the world, strengthen the bloc's solidarity, enhance ASEAN’s centrality in the region, and facilitate recovery of the entire association and each member nation, the ambassador continued.

According to Bằng, on the sidelines of the AMM Retreat, Son and his counterparts in ASEAN will pay courtesy calls to Indonesian President Joko Widodo, and hold many bilateral meetings.

Since joining ASEAN, Việt Nam has proven its role as an active, responsible member that is willing to lead and contribute to building rules for the bloc.

At the upcoming retreat, Việt Nam will propose initiatives aiming to improve institutional capacity and operational efficiency of ASEAN agencies and review the implementation of the ASEAN Charter for timely adjustment and supplements, towards ensuring that ASEAN Community building efforts are made in an effective and coordinated manner across all three pillars.

Also as part of the community building framework, Việt Nam will join in finalising Timor Leste's observer status and contributing to building a roadmap for Timor-Leste to secure the ASEAN membership.

According to the ambassador, another important issue at the upcoming retreat meeting is measures to materialise the Five-Point Consensus on Myanmar, and Việt Nam stands ready to engage in the process.

Other issues to be tabled for discussion include orientations to boost cooperation between ASEAN and its partners in the spirit of ensuring and promoting the centrality of ASEAN as well as mechanisms and initiatives of or led by ASEAN, including the ASEAN Outlook on the Indo-Pacific, and how to continue urging major countries to soon join the Treaty on the Southeast Asia Nuclear Weapon-Free Zone (SEANWFZ).

The present emerging international and regional issues would also be of great concern as they directly affect ASEAN, he said, noting that the task of the Vietnamese delegation was to raise initiatives in order to build a common stance, helping to ensure ASEAN solidarity and unity.

Speaking of priorities set by Indonesia as ASEAN Chair 2023 that are maintaining ASEAN’s position and consolidating its centrality in the region and the world, and comprehensively spurring economic recovery and growth, turning ASEAN into a bright spot of the global economy, Bằng affirmed Việt Nam's support for and readiness to contribute to these efforts this year.

Source: VNS    LINK

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Henig:  Trade surplus with America exceeds US$100 billion

07:00 | 04/02/2023

Viet Nam enjoyed a trade surplus of US$100 billion with the Americas for the first time in 2022, according to the Ministry of Industry and Trade (MoIT).

In the year, trade with the continent accelerated to US$153.9 billion, representing a year-on-year increase of 10.7 percent. In which, Viet Nam's exports to America reached US$128.2 billion, up 12.4 percent and its imports reached $25.7 billion, up 3 percent on-year.

Trade between Viet Nam and major markets in the Americas saw stable growth, such as that with the U.S. up 11 percent, Brazil up 6.6 percent, Canada up 16.5 percent, Mexico up 7.1 percent, Chile up 9 percent, and Argentina up 8.3 percent.

For the U.S. market, the two-way trade trade turnover increased by 11 percent to US$123.86, of which Viet Nam's exports to the U.S. hit US$109.4 billion, up 13.6 percent compared to 2021.

Deputy Minister of Industry and Trade Do Thang Hai said that 2023 would continue to be a challenging year, thus market situation should be closely monitored and more solutions needed to maintain and expand export markets.

Source: VGP   LINK

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Henig:  Banks plan to pay cash dividends for first time in three years

February, 04/2023 - 08:05

TPBank is due to pay a cash dividend at a rate of 25 per cent instead of a stock dividend like in previous years. This means that shareholders will receive VNĐ 2,500 (US$0.11) per owned share.

HÀ NỘI — Some banks have announced plans to pay cash dividends to shareholders for the first time in three years.

Accordingly, TPBank is due to pay a cash dividend at a rate of 25 per cent instead of a stock dividend like in previous years. This means that shareholders will receive VNĐ2,500 (US$0.11) per owned share.

The payment is expected in the first quarter of 2023. The source is from undistributed profits as of 2021 after disbursing funds according to the audited financial statements.

This is the first bank to consult shareholders on cash dividend payments this year.

TPBank said that accumulated to the end of 2022, the remaining profit and surplus from funds reached more than VNĐ13.36 trillion. Of which, the undistributed profit until 2021 after distributing to funds was nearly VNĐ5.5 trillion.

Last year, TPBank also recorded a 30 per cent growth in profit before tax to nearly VNDĐ7.9 trillion, thanks to an increase in fee income and the recovery of customers whose debts were extended during the pandemic, so risk provisions were reduced.

Previously, Vietnam International Commercial Joint Stock Bank (VIB) said that if it is approved by the general meeting of shareholders and approved by the State Bank, it can pay a cash dividend of up to 35 per cent of the charter capital, meaning that shareholders owning one VIB share can receive VNĐ3,500 in dividends. According to VIB's representative, the payment rate could be higher if irregular revenues were recorded in 2022.

In 2022, VIB recorded a profit before tax of more than VNĐ10.58 trillion, an increase of 32 per cent over the previous year.

Similarly, Vietnam Prosperity Commercial Joint Stock Bank (VPBank) and Asia Commercial Joint Stock Bank (ACB) also plan to pay cash dividends this year.

VNS    LINK

Henig:  PM emphasises importance of boosting external activities at export market conference

February, 04/2023 - 07:58

Prime Minister Phạm Minh Chính said the Ministry of Industry and Trade should take advantage of the free trade agreements (FTAs) that Việt Nam has joined.

HÀ NỘI - At a conference held by the Ministry of Industry and Trade on expanding the export market in Hà Nội on February 3, Prime Minister Phạm Minh Chính emphasised the importance of boosting external activities and fostering bilateral and multilateral cooperation. 

Deputy Prime Minister, Minister of Natural Resources and Environment Trần Hồng Hà and Minister of Industry and Trade Nguyễn Hồng Diên also attended the conference.

Chính said the ministry should take advantage of the free trade agreements (FTAs) that Việt Nam has joined to help diversify export markets and maintain traditional markets, such as the US, China, the EU, Japan, South Korea and ASEAN.

Việt Nam needed to expand its export market to Eastern Europe, the Middle East, South America, South Asia, and Africa and promote supply chain diversification.

Negotiations that are ongoing concerning an FTA with Israel and the opportunities from China's reopening after COVID-19 must also be exploited. 

The PM requested the MoIT implement synchronous solutions to boost exports for commodities with high potential and demand on the global market.

In addition, the sector needed to boost domestic purchasing power by implementing trade promotion programmes on the domestic market and promote the distribution of goods via e-commerce channels.

It needed to focus on calling for investment in modernising the distribution system in rural and mountainous areas to promote Vietnamese goods.

The ministry was also asked to step up market management and the fight against smuggling and trade fraud and take specific solutions to mobilise and bring into full play resources, especially those from different economic sectors.

It needed to coordinate with ministries and sectors to reduce logistics service costs to improve competitiveness.

The leader also stressed the importance of digital transformation, a green and circular economy, and the climate change response while urging the ministry to quickly complete the four master plans on electricity, energy, minerals and oil and gas infrastructure.

At the conference, Minister Nguyễn Hồng Diên said that in 2023, the Ministry of Industry and Trade would focus on implementing programmes to restore and develop the economy, promote disbursement of public investment capital, creating the supply of materials for sustainable product development.

The ministry would focus on solving difficulties for businesses, implementing solutions to removing barriers in terms of credit and administrative procedures to promote economic growth.

It would also promote administrative reform, simplify procedures, and create favourable investment, production and business activities conditions.

According to a report presented at the conference, industrial production recovered in almost all fields and localities last year, of which processing and manufacturing remained the main growth driver with a rate of 8.1 per cent.

Export-import also hit a new record of over US$732.5 billion in revenue, representing a 10-fold rise year-on-year. The trade surplus had been maintained for seven consecutive years, reaching $11.2 billion in 2022.

The total retail sales of goods and services increased by nearly 20 per cent, exceeding the set target by 2.5 times.

Việt Nam is among the top five countries worldwide for e-commerce growth.

At the meeting, the sector proposed the Government continue with policies to boost production and business, attract more foreign investments, and soon build and approve national, regional, provincial and sectoral planning schemes, and further consolidate institutions relating to the sector.

VNS    LINK

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Henig:  Vietnam’s rice export forecast to enjoy another successful year

07:00 | 04/02/2023

Vietnam’s rice export is forecast to continue reaping successes this year as the world's rice prices remain high at least in the short term as global economic and political uncertainties have resulted in a high demand for rice reserves, according to experts.

According to the Vietnam Food Association, by the middle of last month, Vietnam earned nearly 115 million USD from exporting more than 226,000 tonnes of rice, an increase of over 41% in terms of both volume and value compared to the same period last year.

The country exported ST24 and ST25 rice to the Middle East region with a record-high price of 1,000 USD per tonne, doubling the price of normal white rice.

Vietnamese rice further penetrated demanding markets like Japan and the EU.

According to experts, more than 80% of rice varieties in Vietnam are fragrant high-quality rice, which is an important factor that helps increase Vietnamese rice's value and accessibility to markets.

This year’s rice prices are forecast to return its peak in 2019 thanks to periodical factors and increasing demand for rice reserves in countries, including such populous nations as China and India.

Moreover, Vietnamese rice exporters are taking advantage of free trade agreements.

Pham Thai Binh, General Director of Trung An Hi-tech Agriculture Joint Stocks Company, said that before the EU–Vietnam Free Trade Agreement (EVFTA) took effect, Vietnamese rice exported to the EU was taxed at high rates, from 5% to 45%, depending on countries.

As the result, it was difficult for Vietnamese rice to compete with those from Cambodia and Myanmar as the EU has exempted import taxes for those countries.

Meanwhile, although Thailand’s rice is heavily taxed but its branding is strong and long-lasting, resulting in its high competitiveness, Binh said.

According to analysts from BIDV Securities Company (BSC), unfavourable weather conditions make major rice exporters like India and Pakistan reduce export volumes while major rice importers like China increase imports.

Vietnam and Thailand are expected to hold negotiations to discuss rising rice prices in the context of increasing prices of input materials.

Last year, Vietnam exported nearly 7.2 tonnes of rice, gaining 3.49 billion USD.

Source: VNA   LINK

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Henig:  Greening foreign investment

06:00 | 03/02/2023

(VEN) - The government’s declared commitment to reduce net carbon emissions to zero by 2050 has prompted a wave of high-quality, sustainable foreign direct investment (FDI) projects.

FDI remains key development driver

According to a report by the Foreign Investment Agency under the Ministry of Planning and Investment, in the first 11 months of 2022, the capital of new FDI projects, capital increases of ongoing projects, and capital contributions and stock purchases by foreign investors totaled more than US$25.1 billion, equaling 95 percent of the commensurate period sum in 2021. The processing and manufacturing industry led the way with total investment of US$14.96 billion, accounting for 59.5 percent of registered investment capital. Along with newly registered capital, the adjusted capital grew 18.9 percent. Notably, FDI disbursement reached US$19.68 billion, up 15 percent over the same period last year and a five-year record.

The growth momentum of the adjusted capital signals foreign investors' confidence in Vietnam’s economy and investment environment. What is more, the realized disbursement of foreign investment has spawned economic growth and improved production capacity, while connecting Vietnamese enterprises with global production and distribution chains. More importantly, the flow of investment capital into the high-tech sector is in line with Vietnam's goal of improving the quality and efficiency of foreign investment cooperation.

Alain Cany, Chair of the European Chamber of Commerce (Eurocharm) in Vietnam, suggests that rather than looking at new investment figures, Vietnam should focus on high levels of disbursement. European businesses in Vietnam are much more optimistic than before the pandemic given Vietnam’s flexibility in efforts both to repel COVID-19 and to support business activity. Therefore, investor commitment is reflected not only in pledged capital but in the disbursed sums.

Matsumoto Nobuyuki, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City, commented that among roughly 600 Japanese enterprises operating in Vietnam, some 60 percent expected profits in 2022. Revitalized from the post-pandemic recovery, the number of profitable businesses in both manufacturing and non-manufacturing sectors increased compared to 2021. In comparison with the Asia and Oceania regions, the number of businesses with optimistic forecasts in Vietnam is higher.

The improved business profits are attributed to the post-pandemic recovery. However, the production efficiency improvement and the increased domestic purchasing power also contribute to Vietnam's growth, Nobuyuki noted.

Attracting green, sustainable FDI

Despite the global decline in foreign direct investment, Vietnam is an exception, reflecting investor confidence in its medium and long-term growth prospects.

Along with strong government determination to advance a green economy, Vietnam also has opportunities to attract investment projects of high technology and low impact on the environment from investors in developed nations. In fact, these investors are increasingly interested in environmental and sustainability issues, highlighting Vietnam’s advantages for their investment decisions.

The Ministry of Planning and Investment reports that from the end of 2021, the quality of projects has shifted in line with Vietnam's green growth goals. The Danish Pandora Group’s new LEGO plant, for example, is Vietnam’s

first carbon-neutral factory that uses only renewable energy.

"We perceive a much larger wave from Europe to Vietnam and there will be a wave of business and potential investors to explore Vietnam, especially in the green domains and green industries," Cany predicted.

According to foreign investors, the macroeconomic background is stable, placing the new FDI inflows in the "green" mainstream serving sustainable development and accompanied by investment in human resources, science and technology and the sector ecosystem.

Ngoc Thao    LINK

Some "Vietnam News" Posted by Henig aat KTFA Friday 2-3-2023

KTFA:  Vietnam

Henig:  Economic growth and market upgrade to draw capital

February, 02/2023 - 10:48

HÀ NỘI — The prospect of economic growth and market upgradation is the driving force to attract cash flow into the stock market.

Việt Nam is among the world's fastest-growing economies with an average GDP growth rate of about 6.5 per cent per year in the period before the COVID-19 pandemic. The target of economic growth in 2021-2025 at 6.5-7 per cent per year was set out at the 13th National Party Congress despite the fact that the economy was severely affected by the COVID-19 pandemic in 2021. However, VinaCapital forecasts that this growth can still be maintained in the 2023-25 period.

High economic growth will support the companies listed on the stock market. In 2023, the business results of listed companies may be affected by the slowing growth of exports and consumption and high interest rates. The earnings per share (EPS) growth is forecast to be in single digits in 2023.

However, from 2024, when inflationary pressures are gone, central banks around the world can loosen monetary policy to stimulate the economy, and at the same time, the internal difficulties and challenges of the economy will be tackled, Việt Nam's economy will recover, and the stock market's EPS growth is likely to return to double digits.

Infrastructure investment will remain a priority focus of the Government for many years to come and will have a positive impact on the economy in the long term.

In July 2022, the Government issued Resolution No. 86/NQ-CP on the development of a safe, transparent, efficient and sustainable capital market in order to stabilise the macro-economy, and mobilise resources for socio-economic development.

The Resolution stressed the need to urgently implement measures to upgrade Việt Nam's stock market from the frontier market to the emerging market to attract investment capital. Currently, the stock exchanges and securities companies are testing the new trading system KRX, which can meet the requirements of launching new products, shorten the transaction time, and help the Vietnamese stock market meet the requirements of upgradation.

According to VinaCapital, the growth prospect of Việt Nam's economy in the next 3-5 years and the prospect of upgradation will be an important driving force to attract cash flow from both domestic and foreign investors. The size of the stock market will continue to expand thanks to increased liquidity and there are still many new companies likely to list in the coming years.

Both the Vietnamese economy and stock market are still in a high growth phase for at least the next five years, VinaCapital said.

VinaCapital also cited factors that are forecast to positively affect the market in 2023, including inflation, interest rates, exchange rates, public investment, and China's reopening.

Specifically, global inflation is likely to have passed its peak. The Bloomberg Global Commodity Index peaked in June 2022 and was down about 16 per cent by the end of 2022. US inflation also peaked at 9.1 per cent in June 2022, from where it started decreasing.

Central banks will be less aggressive in tightening monetary policy. In 2022, the US Federal Reserve (Fed) raised interest rates seven times. The Fed is expected to continue to raise interest rates in 2023, but the increase will be much less than in 2022 as inflation pressure has subsided.

Pressure on domestic interest rates and exchange rates has decreased significantly. Specifically, the overnight interbank interest rate fell below 5.0 per cent by the end of 2022. Also in December 2022, credit institutions agreed to apply the maximum deposit interest rate of 9.5 per cent for all tenors, while previously, there were some small banks that pushed deposit rates up to 11-12 per cent.

In addition, public investment will be speeded up in 2023. The National Assembly has approved a public investment plan in 2023 with a total capital of over VNĐ700 trillion, an increase of about 25 per cent compared to the plan in 2022.

In addition, China ending the zero-COVID policy and reopening the economy will have a positive impact on the Vietnamese economy, especially the tourism sector. In the period before the COVID-19 pandemic, Chinese tourists accounted for nearly one-third of international visitors to Việt Nam. In addition, the reopening of China's economy will help reduce input costs for Vietnamese manufacturing enterprises using materials imported from China, and will promote exports from Việt Nam to China, especially for agricultural products, VinaCapital forecasts.

— VNS    LINK

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Henig:  FTAs provide a push for Việt Nam’s exports in 2023

February, 02/2023 - 14:00

The 15 free trade agreements (FTAs) to which Việt Nam is a member are expected to give a boost to Việt Nam’s export activities this year, towards the growth target of 6 per cent.

HÀ NỘI — The 15 free trade agreements (FTAs) to which Việt Nam is a member are expected to give a boost to Việt Nam’s export activities this year, towards the growth target of 6 per cent.

Phúc Sinh JSC, based in HCM City, has exported 50 containers of coffee, pepper, cashew nut and other products to Europe, the US and the Middle East in early 2023.

The company shipped about US$50 million worth of goods to Europe in 2020 and $63 million in 2021, which grew some 30 per cent last year.

It is among the hundreds of domestic firms that are effectively utilising the FTAs, contributing to raising Việt Nam’s agro-export revenue to over $53 billion in 2022.

Chairman and General Director of Phúc Sinh JSC Phan Minh Thông noted that with tax incentives, the deals will help Vietnamese goods compete with those from other countries despite difficulties forecast for this year as many major importers are expected to face inflation.

Import-export was Việt Nam’s bright spot in 2022, hitting a record of around $730.2 billion, of which $371.5 billion came from exports, statistics show.

Notably, thanks to the EU-Việt Nam Free Trade Agreement (EVFTA), garment-textile exports to the EU reached $4.46 billion, representing a year-on-year rise of 34.7 per cent.

The sector is projected to rake in $47-48 billion this year, which is within its reach as the FTAs will accelerate the relocation of investment from other countries to Việt Nam, according to Chairman of the Việt Nam Textile and Apparel Association (VITAS) Vũ Đức Giang.

Minister of Industry and Trade Nguyễn Hồng Diên also held that the agreements will further prove their role this year as the market share of many key exports still remains limited in foreign countries.

— VNS    LINK

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Henig:  Food and beverage industry to do well this year despite modest economy

February, 03/2023 - 08:14

The food and beverage market is forecast to grow by over 18 per cent this year to VNĐ720 trillion (US$31 billion).

HCM CITY — The food and beverage market is forecast to grow by over 18 per cent this year to VNĐ720 trillion (US$31 billion).

A recent report by iPOS.vn said that, after an impressive rebound in 2022, the F&B industry is poised to achieve “sustainable growth”.

It predicted the market to top VNĐ938 trillion ($40 billion) by 2026.

It expected big players to push strongly this year to gain market share but smaller ones to exercise caution since the economic difficulties would continue in 2023.

New brands like Phê La and Katinat Saigon Kafe would enter, it said.

It forecast some business models to struggle in 2023, including food delivery because sellers would have to reduce their prices to be competitive.

The model developed strongly when the COVID-19 pandemic hit.

A representative of Golden Trust, a company in food and beverage sector, told Việt Nam News that he expected "stable development", but brands should ensure quality in all aspects from infrastructure to services.

A report from Momentum Works said Southeast Asia’s food delivery spending grew by a modest 5 per cent to $16.3 billion in 2022 after a two-year COVID-driven boom.

For the first time in three years growth was driven by the smallest markets, the Philippines, Malaysia and Việt Nam.

Food delivery players in the region, including in Việt Nam, exited unprofitable businesses and markets, it said.

“Major players pivoted away from cost-intensive business models such as dark stores for groceries and dark kitchens for food delivery. This trend is expected to continue into 2023…”

Việt Nam has around 338,600 restaurants and coffee shops, with HCM City accounting for nearly 49 per cent followed by Hà Nội.

The food and beverage market was worth around VNĐ610 trillion ($26 billion) last year.

Of the 3,000 restaurants and coffee shops that took part in a survey done by iPOS.vn for its report, over 46 per cent said they do not have online service. But 83 per cent of them have started to digitise and adopt technology.

Đỗ Duy Thanh, F&B director of Horeca Business School, was quoted by markettimes.vn as saying that when an economy faces difficulties, investors flock back to industries that have high demand, and F&B is an example.

He expected that many new high-end restaurants to open this year.

The slump in the property market would cause people owning properties in good locations to invest in F&B hoping that would attract customers and thus push up the price of their property, he said.

According to the survey, Vietnamese consumers are ready to pay VNĐ40,000-VNĐ70,000 for a beverage, and VNĐ500,000 on special occasions.

Over 77 per cent of consumers said they would continue to spend at this rate or more in 2023.

— VNS   LINK

Henig:  Bình Phước seeks to become modern industrial province

February, 03/2023 - 09:24

The south-eastern province of Bình Phước is seeking to develop its infrastructure and reform administrative procedures to achieve rapid and sustainable development this decade.

BÌNH PHƯỚC – The south-eastern province of Bình Phước is seeking to develop its infrastructure and reform administrative procedures to achieve rapid and sustainable development this decade.

To industrialise, it plans to build roads to connect with neighbouring Đồng Nai and other provinces in the southern region.

The roads will also be connected with major traffic routes in the region, the Cái Mép-Thị Vải Port in Bà Rịa-Vũng Tàu and the Long Thành International Airport in Đồng Nai Province.

The province also plans to build 35 industrial clusters in its 11 districts and towns by 2030 at a cost of VNĐ5.9 trillion (US$260 million).

Of them, 21 will be built on ​​583ha of land from now to 2025, and the other 14 will be built subsequently on another ​​580ha.

Priority will be given to technology, including information technology, supporting industries, agriculture, environmental protection, culture, sports, tourism, and healthcare, according to the provincial People’s Committee.

The industries to be developed include agricultural processing, rubber and plastic, metal, electronics, automobile components, and textiles and apparel.

They are expected to create around 30,000 jobs.

The demand for housing is expected to grow because of the new industrial zones.

Of the planned new residential projects, the Asian Holding Real Estate Company has invested in the 4.7ha Asian Lake View project in Đồng Xoài City.

It includes a residential area, shophouses and an area for entertainment.

Another is the 92.7ha Cát Tường Phú Hưng Complex Urban Area in Đồng Xoài City at a cost of $70 million.

To create the best possible investment climate, Bình Phước has been pushing ahead with administrative reforms, and the time needed to license a project is being cut down to a single day, while the online handling of administrative procedures will make assistance to businesses swift.

It will focus on attracting investments in technology, organic agriculture and processing of agricultural products like cashew, pepper and fruits.

— VNS    LINK

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Henig:  Việt Nam, Netherlands eye further cooperation in sustainable development

February, 03/2023 - 06:23

Agriculture plays a pivotal role in the economies of Việt Nam and the Netherlands and is deeply imprinted in the culture and people of the two countries, the diplomat told Đầu tư (Vietnam Investment Review).

HÀ NỘI Due to their similar geographical features and advantages, the Việt Nam and the Netherlands have increased their sustainable development partnership in agriculture, water management, and climate change adaptation, said Ambassador of the Netherlands to Việt Nam Kees van Baar.

Agriculture plays a pivotal role in the economies of Việt Nam and the Netherlands and is deeply imprinted in the culture and people of the two countries, the diplomat told Đầu tư (Vietnam Investment Review).

Close co-operation between the two sides has resulted in new visions and the blooming of business cooperation, with a growing number of the Netherlands' companies doing business and investing in Việt Nam.

The Netherlands is the largest European investor in Việt Nam. With their investments and innovative and sustainable operations, the country's businesses actively contribute to Việt Nam’s progress, he said.

He added that but even more significant, Vietnamese companies setting up businesses in the Netherlands as well.

Regarding the two countries' co-operation in green trade, Kees van Baar said that Việt Nam and the Netherlands are delta countries and are vulnerable to rising sea levels resulting from climate change.

The countries also aim to become climate neutral in 2050 by reducing greenhouse gas emissions.

Currently, the EU is developing and implementing new rules and regulations to support its climate ambitions, like the Carbon Border Adjustment Mechanism and Corporate Sustainability Due Diligence Directive.

He said that these new mechanisms will become effective in the coming years and will modernise and strengthen the rules for imports to the EU markets regarding environmental, social, and governance (ESG) criteria.

For companies exporting from Việt Nam to the EU or being in the supply chain of an EU company, he added that there would be strong incentives to invest in ESG reporting to enjoy low tariffs and easy access to EU markets.

Therefore, the Netherlands invests in ESG capacity building for Vietnamese companies. In the framework of the GEFE 2022 event in HCM City, the embassy offered workshops. It will continue to do so in the context of the ‘Ready to Export’ programme, which is being implemented by the Dutch Business Association in Việt Nam and Vietrade.

Regarding the two countries’ hi-tech co-operation, the ambassador said that the Netherlands is a small country in terms of area, but it is the 15th largest economy in the world.

The Netherlands has a rich history of entrepreneurial innovation with world-famous inventions, ranging from microscopes and telescopes to CDs and DVDs, Bluetooth and Wi-Fi.

During his visit to the Netherlands last December, Vietnamese Prime Minister Phạm Minh Chính visited the world-leading production and knowledge economy of the province of North Brabant and the Brainport region in and around the city of Eindhoven.

In response to PM Chính’s wish to strengthen bilateral co-operation in innovation and creativity, the Netherlands is ready to share with Việt Nam the knowledge and experience of our transition from a traditional agricultural and manufacturing industry into a world-leading high-tech hotspot, the ambassador said.

He added that they plan to organise in 2023 a mission of the Netherlands' businesses, knowledge institutes, and other stakeholders from the innovation ecosystem to Việt Nam to exchange ideas and discuss co-operation possibilities.

VNS     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

 Henig:  Bình Phước seeks to become modern industrial province

February, 03/2023 - 09:24

The south-eastern province of Bình Phước is seeking to develop its infrastructure and reform administrative procedures to achieve rapid and sustainable development this decade.

BÌNH PHƯỚC – The south-eastern province of Bình Phước is seeking to develop its infrastructure and reform administrative procedures to achieve rapid and sustainable development this decade.

To industrialise, it plans to build roads to connect with neighbouring Đồng Nai and other provinces in the southern region.

The roads will also be connected with major traffic routes in the region, the Cái Mép-Thị Vải Port in Bà Rịa-Vũng Tàu and the Long Thành International Airport in Đồng Nai Province.

The province also plans to build 35 industrial clusters in its 11 districts and towns by 2030 at a cost of VNĐ5.9 trillion (US$260 million).

Of them, 21 will be built on ​​583ha of land from now to 2025, and the other 14 will be built subsequently on another ​​580ha.

Priority will be given to technology, including information technology, supporting industries, agriculture, environmental protection, culture, sports, tourism, and healthcare, according to the provincial People’s Committee.

The industries to be developed include agricultural processing, rubber and plastic, metal, electronics, automobile components, and textiles and apparel.

They are expected to create around 30,000 jobs.

The demand for housing is expected to grow because of the new industrial zones.

Of the planned new residential projects, the Asian Holding Real Estate Company has invested in the 4.7ha Asian Lake View project in Đồng Xoài City.

It includes a residential area, shophouses and an area for entertainment.

Another is the 92.7ha Cát Tường Phú Hưng Complex Urban Area in Đồng Xoài City at a cost of $70 million.

To create the best possible investment climate, Bình Phước has been pushing ahead with administrative reforms, and the time needed to license a project is being cut down to a single day, while the online handling of administrative procedures will make assistance to businesses swift.

It will focus on attracting investments in technology, organic agriculture and processing of agricultural products like cashew, pepper and fruits.

— VNS    LINK

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Henig:  Việt Nam, Netherlands eye further cooperation in sustainable development

February, 03/2023 - 06:23

Agriculture plays a pivotal role in the economies of Việt Nam and the Netherlands and is deeply imprinted in the culture and people of the two countries, the diplomat told Đầu tư (Vietnam Investment Review).

HÀ NỘI Due to their similar geographical features and advantages, the Việt Nam and the Netherlands have increased their sustainable development partnership in agriculture, water management, and climate change adaptation, said Ambassador of the Netherlands to Việt Nam Kees van Baar.

Agriculture plays a pivotal role in the economies of Việt Nam and the Netherlands and is deeply imprinted in the culture and people of the two countries, the diplomat told Đầu tư (Vietnam Investment Review).

Close co-operation between the two sides has resulted in new visions and the blooming of business cooperation, with a growing number of the Netherlands' companies doing business and investing in Việt Nam.

The Netherlands is the largest European investor in Việt Nam. With their investments and innovative and sustainable operations, the country's businesses actively contribute to Việt Nam’s progress, he said.

He added that but even more significant, Vietnamese companies setting up businesses in the Netherlands as well.

Regarding the two countries' co-operation in green trade, Kees van Baar said that Việt Nam and the Netherlands are delta countries and are vulnerable to rising sea levels resulting from climate change.

The countries also aim to become climate neutral in 2050 by reducing greenhouse gas emissions.

Currently, the EU is developing and implementing new rules and regulations to support its climate ambitions, like the Carbon Border Adjustment Mechanism and Corporate Sustainability Due Diligence Directive.

He said that these new mechanisms will become effective in the coming years and will modernise and strengthen the rules for imports to the EU markets regarding environmental, social, and governance (ESG) criteria.

For companies exporting from Việt Nam to the EU or being in the supply chain of an EU company, he added that there would be strong incentives to invest in ESG reporting to enjoy low tariffs and easy access to EU markets.

Therefore, the Netherlands invests in ESG capacity building for Vietnamese companies. In the framework of the GEFE 2022 event in HCM City, the embassy offered workshops. It will continue to do so in the context of the ‘Ready to Export’ programme, which is being implemented by the Dutch Business Association in Việt Nam and Vietrade.

Regarding the two countries’ hi-tech co-operation, the ambassador said that the Netherlands is a small country in terms of area, but it is the 15th largest economy in the world.

The Netherlands has a rich history of entrepreneurial innovation with world-famous inventions, ranging from microscopes and telescopes to CDs and DVDs, Bluetooth and Wi-Fi.

During his visit to the Netherlands last December, Vietnamese Prime Minister Phạm Minh Chính visited the world-leading production and knowledge economy of the province of North Brabant and the Brainport region in and around the city of Eindhoven.

In response to PM Chính’s wish to strengthen bilateral co-operation in innovation and creativity, the Netherlands is ready to share with Việt Nam the knowledge and experience of our transition from a traditional agricultural and manufacturing industry into a world-leading high-tech hotspot, the ambassador said.

He added that they plan to organise in 2023 a mission of the Netherlands' businesses, knowledge institutes, and other stakeholders from the innovation ecosystem to Việt Nam to exchange ideas and discuss co-operation possibilities.

VNS     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

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