Wednesday "Vietnamese News" Posted by Henig at KTFA 2-15-2023

KTFA: Vietnam

Henig:  E-commerce market achieves major breakthrough

06:00 | 15/02/2023

(VEN) - The value of Vietnam's e-commerce market is expected to reach US$40 billion by 2027, representing growth of 28 percent - the highest expansion rate in Southeast Asia, according to the conclusion of Meta and Bain & Company's annual SYNC Southeast Asia study on the digital economy and the future of e-commerce in the region.

Double-digit growth

Vietnam’s e-commerce market is predicted to record 28 percent growth, the highest rate among Southeast Asian nations, and reach US$40 billion by 2027. The average contribution of e-commerce to total retail has continued to increase at 15 percent, accounting for six percent of Vietnam’s total retail value.

Khoi Le, Meta's Vietnam Country Director, said Southeast Asia's e-commerce market has many opportunities in terms of userbase. Vietnam recorded an increase of four million digital consumers in 2022. Eight out of ten individuals of working age are digital consumers. This means there are 60 million active digital consumers in Vietnam.

According to the White Book on Vietnamese E-Business 2022 released by the Ministry of Industry and Trade’s Vietnam e-Commerce and Digital Economy Agency, the size of Vietnam's e-commerce retail sector was expected to increase by 20 percent in 2022, reaching approximately US$16.4 billion. In addition, it is anticipated that between 57 and 60 million Vietnamese engage in online shopping, spending US$260-285 per capita.

This outcome is a result of Vietnam's utilization of the e-commerce development trend and the completion of a progressive regulatory framework governing online buying activities. Since the issuance of Government Decree 52/2013/ND-CP on e-commerce, revenues from retail e-commerce have climbed from US$2.2 billion in 2013 to US$16.4 billion in 2022.

Completing the payment system

According to the Vietnam e-Commerce and Digital Economy Agency, e-commerce promotes the growth of electronic payments because 90 percent of goods and products purchased on e-commerce floors are paid for online using bank cards. Despite the pandemic, internet and mobile phone transactions in Vietnam increased by 238 percent.

In its forecast for Vietnam's e-commerce business, the professional team of e-commerce portal iPrice emphasized the relevance of e-commerce in the future. In addition, the iPrice expert team identified several major trends. These include tailoring the shopper experience as consumers become increasingly reliant on e-commerce companies to help them find the things they need while also streamlining the supply chain to reduce delivery time and improve product quality.

The second trend is the development of cashless transactions. According to a survey by Facebook and Bain & Company, the rate of cash payments (Cash on Delivery) in Vietnam declined from 60 percent in 2020 to 42 percent in 2021, while e-wallet usage increased by up to 82 percent, compared to an 18 percent rise in bank transfers.

Implementing the 2021-2025 National E-commerce Development Master Plan, Vietnam's industry and trade sector will continue to collaborate with banks to develop e-commerce in the next years, creating favorable conditions for e-commerce platforms.

Specifically, the Ministry of Industry and Trade will continue to improve the legal framework; promulgate policies, regulations, and implement comprehensive solutions to increase the rate of e-payment on mobile platforms and reduce the use of cash; develop infrastructure and solutions to support electronic transactions and integrate payments in e-commerce; and concentrate on the development of payment utilities on mobile platforms.

To create more favorable conditions for e-commerce, the ministry will continue to improve the legal framework and issue policies to increase the rate of electronic payments; provide infrastructure and solutions to support electronic transactions; and develop payment facilities such as e-wallets, QR code, NFC, and POS.

According to the Vietnam e-Commerce and Digital Economy Agency, as a result of increased coordination between state management agencies, Vietnam's e-commerce market will become increasingly comprehensive and transactionally secure. This development will foster consumer confidence in Vietnam, creating major breakthroughs in e-commerce between 2023 and 2025.

Viet Anh   LINK

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Henig:  Quang Binh: A land of endless mystery

13:00 | 14/02/2023

(VEN) - Tourism in Quang Binh, a coastal province in North-Central Vietnam, has gained international recognition due to the locality's reputation as the "Kingdom of Caves", its unique geological features and the enigmatic tales of its history and myths.

The Phong Nha-Ke Bang National Park in Quang Binh boasts thousands of caves within its 1,233 square kilometer boundaries, earning it the moniker "Kingdom of Caves". Over the past 30 years, the British Caving Association has investigated 400 caves and made stunning discoveries, giving rise to the description of the area’s “endless mystery”. 

 “Good Morning America from Son Doong”, an ABC Television program, was broadcast live in 2015 from En Cave in the presence of Deputy Prime Minister Vu Duc Dam, attracting 60 million viewers worldwide and spreading its reputation far and wide.

Since then, major media agencies from across the world have visited Quang Binh. The province subsequently teamed up with Legendary Pictures to produce “Kong: Skull Island”, a VND7 trillion investment with global impact. Quang Binh was also ranked eighth among 52 most enticing Asian locations by the New York Times Magazine. "The New York Times Travel Show has provided the province of Quang Binh a free booth in New York," says Nguyen Ngoc Quy, Director of the Quang Binh Department of Tourism. Other activities that have piqued broad interest include the Miss World Peace contest, which brought representatives of 80 countries to this "mysterious" land in September, and Alan Walker's "Alone Pt.2" music video, which has received hundreds of millions of views and is expected to reach nearly one billion views.

According to Nguyen Ngoc Quy, the BBC’s Landmark Natural History Series has filmed in Quang Binh and will reach an estimated 800 million people. A global Google Doodle celebration of Son Doong cave on April 14, 2022 was coordinated by Google Arts & Culture in 17 different countries and territories. “If you Google ‘Phong Nha’ or ‘Son Doong’ and click, you get detailed tourism information about the area. Our heritage is celebrated in 17 nations, " Nguyen Ngoc Quy remarked.

Architect Tran Ngoc Chinh, former Deputy Minister of Construction and President of the Vietnam Urban Development Planning Association, describes Quang Binh Province as a secure, alluring, and one-of-a-kind tourist destination. Quang Binh is a location with multiple opportunities and advantages for tourism development, a territory with historic traditions and valuable geological qualities. Phong Nha-Ke Bang cave, a twice-recognized UNESCO world natural heritage site, and Son Doong Cave have attracted a large number of businesses and tourists from all over the world.

In terms of natural resources for tourism development, Quang Binh is regarded as a leading locality nationwide. According to a recent survey of travelers performed by Booking.com, Quang Binh is one of the Vietnamese localities with the highest tourism competitiveness ranking.

UNESCO recognized Phong Nha Cave a World Natural Heritage site in 2003 and again in 2015, contributing further to Quang Binh's tourism economy.

Xuan Hoai   LINK

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Henig:  More Vietnamese farm products exported to Europe

11:30 | 15/02/2023

The central province of Quang Tri shipped its first batch of 15 tons of organic rice at a price of US$1,800 per ton to the European Union (EU) on February 13.

In the coming time, between 30 and 50 tons of this type of rice will be shipped to the European market every month.

The Ministry of Agriculture and Rural Development announced that the nation exported nearly 7.3 million tons of rice last year, earning US$3.54 billion, up 6.9 percent.

Viet Nam still has many opportunities to increase the export of agricultural products, including fruits and vegetables, to the EU as it is the only country in the Asia Pacific region that has a free trade agreement with the EU.

After the European-Viet Nam Free Trade Agreement (EVFTA) came into effect, the tax rate for many kinds of Vietnamese fruit and vegetables was reduced from 10-20 percent to zero.

The country has exported many kinds of fruits to the EU, including dragon fruit, passion fruit, coconut, durian, longan, lychee, mangosteen, and seedless lemon.

Earlier, the first batch of 11 tons of Dien pomelo from the Yen Thuy district was transported to the United Kingdom on February 9 by Longdan, the largest importer of Vietnamese products in this country.

Viet Nam has emerged as a major Southeast Asian supplier of farm produce and aquaculture products to the UK since the UK-Viet Nam Free Trade Agreement (UKVFTA) came into force on May 1, 2021.

As part of the UKVFTA, some 85.6 percent of tariff lines for goods imported by the UK from Viet Nam were eliminated in January 2021, and 99.2 percent will be removed by January 2027, according to the UK Department for International Trade.

The UK imports from Viet Nam amounted to US$6.06 billion last year, rising by 5.2 percent over 2021, reported the General Department of Viet Nam Customs.

Source: VGP    LINK

Henig:  More expressways to be built in the north central & central coastal region by 2025

08:00 | 15/02/2023

The Ministry of Transport has set a target of completing and putting into operation the eastern North-South expressway by 2025, bringing the total length of highways in the north central-central coastal region from 193km to 1,390 km, said Transport Minister Nguyễn Văn Thắng.

The ministry will also complete coastal roads.

According to Thắng, in the period of 2005-20, capital from the central and local budgets, and other sources to invest in transport infrastructure in the region reached about VNĐ246 trillion (US$10.5 billion).

As a result, the region's transport infrastructure system has changed markedly with many important works being built and put into operation.

In terms of roads, the Hồ Chí Minh Highway was put into operation while National Highway 1 was expanded and two projects of upgrading sections of La Sơn-Hoà Liên and Đà Nẵng-Quảng Ngãi on the North-South Expressway with a total length of 193km were carried out.

Regarding railways, 1,462 km of existing railways were upgraded to ensure connection of all localities in the region.

Meanwhile, in terms of maritime, the ministry invested into building nine first class seaports, four second class seaports and one third class seaport. Inland waterways are exploiting 11 routes with a total length of 670km, including the coastal waterway.

Regarding aviation, this is the region with the largest density of airports in the country, with five international airports and four domestic ones.

Along with the achieved results, the region's transport infrastructure system still has some shortcomings and inadequacies which have not met development needs.

The intra- and inter-regional transport infrastructure connecting the horizontal axis in the East-West direction is still limited. Railway connection with seaports has not been effective and some seaports and airports have not been exploited effectively, making it unable to promote its role as a hub for trans-shipment and transit of goods for the Tây Nguyên (Central Highlands) region and the Associate of South-East Asian Nations (ASEAN).

The main reason is the lack of linkages and synchronous planning, and investment plans for infrastructure development among localities in the region still lack in synchronisation do not pay attention to intra- and inter-regional connectivity.

In addition, investment resources have not met requirements, there are not yet strong enough mechanisms and policies to mobilise transport infrastructure investment, and the system of institutions and policies is still inadequate.

Thoroughly grasping the viewpoints and goals of the 13th Party Congress and Resolution No.26-NQ/TW with the goal that by 2030, the north central - central coastal region will reach a synchronous and modern socio-economic infrastructure, the Ministry of Transport will continue to closely coordinate with ministries, branches and localities to focus all resources on developing the region's transport infrastructure, Thắng said.

The ministry determines to complete and put into operation the eastern North-South expressway by 2025, increasing the total length of highways in the region from 193km to 1,390 km as well as complete coastal roads and renovate and upgrade existing national highways in the medium-term public investment portfolio.

By 2030, the sector will complete the horizontal axis expressways with large traffic such as Vinh - Thanh Thủy, Khánh Hoà Buôn Ma Thuột, call for investment in expressways of Cam Lộ - Lao Bảo, Đà Nẵng - Thạch Mỹ - Ngọc Hồi - Bờ Y and Quy Nhơn - Pleiku, and upgrade key national highways connecting East and West, especially those connecting with major seaports.

The current North-South railway will be further upgraded, along with preparations for investment to start the priority sections of the North-South high-speed railway, a railway connecting the region with Tây Nguyên region and international border gates of Vũng Áng - Mụ Gia and Mỹ Thụy - Lao Bảo, and the restoration of the tourism railway line of Tháp Chàm - Đà Lạt.

The ministry will focus on improving the efficiency of coastal waterway transport corridors and waterways connecting to seaports as well as building new airports at Phan Thiết and Quảng Trị and develop national, regional and international-standard logistics systems connecting with seaports, airports, international border gates and key economic corridors.

Source: VNS   LINK

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Henig:  Taking advantage of opportunities, promoting agricultural exports

08:00 | 15/02/2023

China’s reopening of border gates since January 8 to boost the trade of goods, including the trading of agricultural products, is good news for Vietnamese agricultural exporters. However, opportunities also go with challenges if businesses wish to effectively exploit this vast market.

To Ngoc Son, Deputy Director of the Asia-Africa Market Department (the Ministry of Industry and Trade), said that China is the leading important market and the number one trading partner of Vietnam. Import-export turnover between Vietnam and China reached 175.5 billion USD in 2022, accounting for 24% of Vietnam’s total import-export revenue.

Regarding the agricultural sector, China is the largest export market of Vietnamese vegetables and fruits (accounting for 53.7% of the total), cassava and cassava products (91.47%), and rubber (71%). China is also the third largest export market of Vietnamese seafood (after the US and Japan).

The leading important market

The China Customs has so far granted 2,492 product codes to enterprises producing and processing agricultural products in Vietnam, more than 2,000 codes for growing areas and 1,438 codes for packing establishments for agricultural products for export to the Chinese market. China has opened its border on January 8, 2023, after a period of limited trade due to the COVID-19 pandemic, so agricultural export activities between the two countries have become more active.

According to Lao Cai Border Gate Management Board, the total import and export value through Lao Cai Border Gate reached nearly 82 million USD in January 2023. As many as 6,713 vehicles carrying agricultural products were handled through the Kim Thanh II International Border Gate in January 2023, with a total import and export value of nearly 59 million USD.

Exports are mainly fresh agricultural products such as dragon fruit, banana, watermelon, rambutan, and jackfruit. In January 2023, nearly 600 trucks of dragon fruit were brought to Lao Cai for export to China. More than 800 trucks of agricultural products are cleared in Lang Son Province every day.

Deputy Director of Plant Protection Department, Huynh Tan Dat said that the positive export signals from the beginning of this year were partly due to the phytosanitary protocols signed between the two countries regarding agricultural products, including: banana, durian, mangosteen, black jelly, rice bran and rice. The Department is negotiating with the Chinese side to sign a protocol on the official export of some traditional fresh fruits such as watermelon, dragon fruit, mango, jackfruit, longan, lychee, and rambutan. The two countries are also negotiating techniques for the official export of medicinal herbs, pomelos, some citrus fruits, and coconuts.

Focusing on exploiting key products

Deputy General Director of Dong Giao Foodstuff Export Joint Stock Company (DOVECO) Pham Ngoc Thanh said that the company’s export of agricultural products to the Chinese market in 2022 posted a growth rate of 130% compared to 2021 thanks to a focus on key products such as: fresh passion fruit, processed passion fruit, passion fruit juice, and banana products. In addition to fresh fruits, DOVECO is also focusing on deep processing to improve the added value of products.

Pham Ngoc Thanh said that it is very important to promote, advertise and introduce products to Chinese partners, including the active participation in trade fairs in China to promote the export of vegetables and fruits to the market. It is the fastest way for Chinese consumers to access Vietnamese agricultural products. As such, DOVECO wishes the authorities to continue to create conditions for Vietnamese businesses to participate in product and trade promotion programmes in the future.

Dr. Tra My, President of the provisional Vietnam Business Association in China, emphasised that enterprises need to pay attention to product quality and have a branding plan for agricultural products which have great effect on the selling price of products. Enterprises should also focus on exporting via sea thanks to many advantages over focusing on road transport at present.

For the promotion of products, the provisional Vietnam Business Association in China has invested in establishing a Vietnamese booth in China, helping businesses display preliminarily processed and finished products for free. In the coming time, the provisional Vietnamese Business Association in China will coordinate with other agencies to organise the first Vietnam-Shanghai investment and trade forum, scheduled for April 2023, focusing on the export of Vietnamese agricultural products to China.

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said that China’s reopening of the border from January 8, 2023 is good news for businesses of the two countries, but without improvements to the quality and product design and cost reduction, Vietnamese enterprises will still face many challenges.

Therefore, enterprises need to strictly comply with the technical requirements and combine with local agricultural agencies to build raw material areas, in addition to coordinating with packing facilities and agencies specialising in granting planting area codes to meet requirements from the Chinese market. Businesses should actively contact with agencies such as the border gate management board to obtain information on the progress of customs clearance to avoid congestion and ensure the quality of agricultural products, customs clearance time and transport costs.

Source: NDO    LINK

Henig:   VIMC reported all-time high profits, restructuring considered

February, 15/2023 - 10:22

The Vietnam Maritime Corporation (VIMC) reported its profit exceeding US$130 million in 2022, for the second year in a row.

HÀ NỘI - The Vietnam Maritime Corporation (VIMC) reported its profit exceeding US$130 million in 2022, for the second year in a row.

While the final figure was still not yet made public while under audit, VIMC, the country's largest State-owned maritime logistics corporation, said 2022 had been a good year for business.

Last year, VIMC's total shipping volume was estimated at 21.8 million tonnes, 13 per cent over the yearly target; cargo throughput via seaports was estimated at 124 million tonnes or 93 per cent of the yearly target; container volume was estimated at 5.8 million TEUs or 97 per cent of the yearly target.

That put the corporation's consolidated revenue at $653.9 million, 20 per cent over its annual objective and a 5 per cent increase over the previous year. VIMC’s earning in sea shipping was estimated at $81.2 million, a 71 per cent increase in the same period in 2021 and 44 per cent above 2022's target.

Once the financial audit is finalised, VIMC will likely be looking at a yearly profit north of $135 million, nearly 25 per cent above its set target, according to a statement released recently by the corporation.

VIMC operates a fleet of 59 ships, including four oil tankers (accounting for 5 per cent of VIMC’s total tonnage), 10 container ships (7 per cent of total tonnage) and 45 dry cargo ships (88 per cent of total tonnage). A majority of its fleet was either built or purchased prior to 2010 with an average service life of 20 years.

Restructuring

The corporation attributed recent success to restructuring efforts with a clear objective focusing on its core businesses and Việt Nam's booming export economy in the last decades.

VIMC identified its core businesses as sea shipping, port operation and maritime services.

In response to an earlier proposal by the corporation to reduce the State's share in VIMC from 99,47 per cent to 65 per cent in the near future, the Ministry of Industry and Trade said such a decision could not be made in a short time.

"VIMC is, directly or indirectly, involved in the management and operation of 14 seaports across the country and therefore, plays an instrumental part in the country's socio-economic development, as well as national security," said deputy minister of industry and trade Nguyễn Xuân Sang.

"The decision to reduce the State's share in the corporation must be thoroughly reviewed and studied," he said.

Commenting on the proposal, the Committee for Management of State Capital at Enterprises recommended that the State's share in the corporation remain the same at least for the 2021-25 period.

"Maintaining the State's shares in VIMC is to ensure the corporation will continue to play a leading role in the establishment and expansion of the country's supply and logistic networks, as well as efficient use of key resources," said a spokesperson from the committee.

The committee recommended the State maintain a minimum 65 per cent majority at the corporation in the future. VNS    LINK

Some "Vietnam News" Posted by Henig at KTFA Tuesday 2-14-2023

KTFA:  Vietnam

Henig:  EVFTA ensures fair competition, subsidies

06:00 | 14/02/2023

(VEN) - Senior Vietnamese and European officials held a recent assessment of the initial two-year implementation of the EU-Vietnam Free Trade Agreement (EVFTA) at a meeting chaired by Minister of Industry and Trade Nguyen Hong Dien and European Commissioner for Trade Valdis Dombrovskis. Both acknowledged the efforts made by their respective monitoring agencies and enterprises in taking advantage of the trade deal’s many opportunities.

One of the most significant chapters of this new-generation agreement concerns the importance of fair competition policy to ensure a more efficient allocation of scarce public or private resources. Rules on competition are not about increasing market access per se, but rather about ensuring appropriate conditions which will enable market access to become effective and translate into real business opportunities.

European officials have made clear that anticompetitive behavior and certain subsidies are not the traditional tariff barriers to trade but can be important behind-the-border barriers. The EU is particularly interested in ensuring a level playing field for European and Vietnamese companies and avoiding trade benefits stemming from the FTA being neutralized by anti-competitive practices.

When properly designed, competition related issues are inherently pro-development, since it is developing countries whose companies and consumers are the most vulnerable victims of anti-competitive practices. Moreover, it will be easier for Vietnam to attract foreign companies if these can be reassured that basic competition laws will be respected.

The EU and Vietnam have agreed to a section on antitrust and mergers (anticompetitive conducts), including the obligation to maintain competition laws and relevant authorities and to apply the laws in a transparent and non-discriminatory manner. This means that companies operating in Vietnam should respect the same basic competition principles as in Europe, i.e., no abuse of a dominant position and no agreements between enterprises that restrict competition and scrutiny of the competitive effects of a merger.

Subsidy rules

At the same time, companies are assured that their rights in the competition procedures will be respected (procedural fairness) and that they can turn to the Vietnamese competition authorities to ask them to ensure an efficient competitive environment. Companies can receive subsidies for well-defined public policy objectives, such as research and development, training and regional development. However, the FTA acknowledges that certain kinds of subsidies can hinder competition and trade. Therefore, rules limit the potential negative effects of the subsidies. These cover transparency, consultations and some of the most distortive types of subsidies, which are made subject to specific conditions.

The EVFTA sets an illustrative list of such public objectives, including practices involving a direct transfer of funds, potential direct transfer of funds or liabilities; revenue that is otherwise due is foregone or not collected; providing goods or services other than general infrastructure, or purchase goods; making payments to funding mechanism, or entrusting or directing a private body to carry out one or more type of functions regulated; and any form of income or price support in the sense of exemption of non-discrimination principle in Article XVI of the 1994 General Agreement on Tariffs and Trade (GATT 1994).

Vietnam has agreed to notify not only of subsidies to goods but also subsidies to services. This goes well beyond the existing World Trade Organization (WTO) rules. As a result, at least every four years both sides will notify or make public the subsidies granted to companies in selected services sectors, which are important from market access point of view such as telecommunications, banking, transport and energy.

If a party considers that specific subsides granted by the other negatively affect trade or investment, it may express its concern in written form to the other and request consultations on the matter. The requested party shall provide information or conduct to eliminate or minimize these negatively affect caused by subsidies.

Duy Hung    LINK

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Henig:  HCM City gets ready for new foreign investment wave

09:10 | 14/02/2023

As an economic locomotive, Ho Chi Minh City has always led the country in terms of investment attraction, drawing the attention of foreign investors from around the world.

However, to be able to strongly attract foreign direct investment (FDI) and welcome new investment waves, the southern hub needs to solve bottlenecks and stagnation in investment procedures. HCM City also needs to work on promoting the development of new areas such as technology, finance, and urban infrastructure.

According to the municipal Department of Planning and investment, the city topped the country in the total value of foreign investments in 2022, including new and additional investment capital and capital contribution, share purchase, and contributed capital purchase reached more than 3.94 billion USD, up 5.4 % compared to 2021.

Among newly granted projects, there were 820 newly granted works in the form of 100% foreign capital investment, 71 joint ventures, and two projects in the form of business cooperation contracts.

The city has several advantages in economic development, particularly high-quality human resources, and relatively developed infrastructure to attract investment in high-tech service industries, according to economic experts.

It also has a favourable strategic location, and is the country's largest high-tech manufacturing and service centre as well as a multicultural city suitable for foreigners coming to work, live and travel.

The city will restructure its economic sectors to focus on attracting FDI in key industries. It will also promote investment attraction in industries with high added value on the basis of the high-tech industry and digital economy, automation, artificial intelligence, software, and microchips.

It has also focused on turning into the largest creative startup hub in the country to help improve the efficiency of the labour market. This will support the real estate market, science and technology, and the financial market according to the standards of the market economy and international economic integration.

Source: VNA    LINK

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Henig:  Việt Nam to have 30 airports by 2030: draft planning

07:00 | 14/02/2023

Việt Nam will have a total of 30 airports by 2030 including 14 serving international flights, according to a draft plan that the Civil Aviation Authority of Vietnam (CAAV)has submitted to the Ministry of Transport recently.

The international airports are Vân Đồn, Cát Bi, Nội Bài, Thọ Xuân, Vinh, Phú Bài, Đà Nẵng, Chu Lai, Cam Ranh, Liên Khương, Long Thành, Tân Sơn Nhất, Cần Thơ, and Phú Quốc.

The 14 airports serving only domestic flights are Lai Châu, Điện Biên, Sa Pa, Nà Sản, Đồng Hới, Quảng Trị, Phù Cát, Tuy Hòa, Pleiku, Buôn Ma Thuột, Phan Thiết, Rạch Giá, Cà Mau, and Côn Đảo.

Two military airports – Thành Sơn and Biên Hòa – will be converted to use for both military and civil purposes.

The draft plan still includes the Hải Phòng International Airport project which was approved in the Prime Minister’s Decision No. 640/QĐ-TTg dated April 28, 2011.

By 2050, Việt Nam expects to have 33 airports including 14 international airports Vân Đồn, Hải Phòng, Nội Bài, Thọ Xuân, Vinh, Phú Bài, Đà Nẵng, Chu Lai, Cam Ranh, Liên Khương, Long Thành, Tân Sơn Nhất, Cần Thơ and Phú Quốc. There will also be 19 domestic airports (Lai Châu, Điện Biên, Sa Pa, Cao Bằng, Nà Sản, Cát Bi, Đồng Hới, Quảng Trị, Phù Cát, Tuy Hòa, Pleiku, Buôn Ma Thuột, Phan Thiết, Rạch Giá, Cà Mau, Côn Đảo, Biên Hòa, Thành Sơn and the second airport in the southeast, south region of Hà Nội).

CAAV will continue to study, survey, and evaluate the possibility of converting some existing military airports into dual-use facilities including Yên Bái airport in Yên Bái Province, and Gia Lâm airport in Hà Nội. The conversion will be reported to the Prime Minister for consideration when all necessary conditions are met.

In particular, this draft plan reflects CAAV’s openness to the new civil airports.

The agency proposes to continue studying, surveying and evaluating the possibility of building airports in provinces that are located in key positions in defence and security and with potential for tourism development but have no military airport. These are Hà Giang, Tuyên Quang, Hà Tĩnh, Kon Tum, Quảng Ngãi, Bình Thuận, Khánh Hòa, Đắk Nông and Tây Ninh.

The Transport Engineering Design Incorporated (TEDI) – consultant for the national airport development planning – proposes that the capacity of Long Thành airport by 2030 is 25 million passengers per year. The capacity of Long Thành airport would then increase to 100 million passengers by 2050. The Tân Sơn Nhất airport is to have a maximum capacity of 50 million passengers yearly.

Biên Hòa airport is expected to handle five million passengers yearly by 2030, and up to ten million passengers by 2050.

Source: VNS    LINK

Henig:  Việt Nam urged to ensure exports to Asian, African markets in 2023

February, 14/2023 - 08:56

These challenges included a world economic recession, competition among major big economies, trade protectionism, inflation and rising interest rates, MoIT's Director of the Asia-Africa Market Department said.

HÀ NỘI — Vietnamese exporters need to ensure their capacity and maintain existing export markets, typically Asian and African outlets, amid many challenges in 2023, a senior trade official has said. 

These challenges included a world economic recession, competition among major big economies, trade protectionism, inflation and rising interest rates, Lê Hoàng Oanh, Director of the Asia-Africa Market Department under the Ministry of Industry and Trade, said.

To do so, firms must make sure that their products meet the quality requirements of exported goods and shipped goods, which Asiam and African markets need rather than what they have, Oanh told congthuong.vn. 

She said open export procedures, convenient logistics services, and updated information about the import policies of the host country would also be necessary to facilitate exports to these markets.

According to the official, ensuring raw materials would play a key role for exporters, especially those exporting textiles and garments to China and South Korea and others shipping seafood products to South Asia and Southeast Asia.  

Input materials for production needed to be diversified to avoid dependence on one or several markets, she added. 

In 2023, Oanh encouraged exporters to continue promoting their exports to some lucrative markets such as China and India. In China, firms should pay attention to the Yunnan market. 

Guangxi and Yunnan have the same population of about 50 million people but the scale of Việt Nam's trade with Yunnan in 2022 reached only US$3.2 billion compared to the country's $30 billion trade with Guangxi, she explained. 

Meanwhile, India is also a potential market with considerable purchasing power and market demand thanks to a population of 1.4 billion people. Annually, India imported about $560 billion worth of goods. However, Việt Nam's exports made up only 1.4 per cent of the country's total import value of $8 billion. 

Besides the markets mentioned above, Oanh also advised exporters to look to African markets, which have much untapped opportunities for them to accelerate their exports, as Việt Nam only accounted for 0.6 per cent of Africa's import turnover worth $600 billion per year.

Việt Nam’s merchandise trade with Asia reached $475.29 billion in 2022, increasing by 9.6 per cent compared to 2021 and accounting for the highest proportion (65.1 per cent) in the country's total import-export value.

Major trade partners of Việt Nam in Asia include China, South Korea, Japan, and the Association of Southeast Asian Nations (ASEAN).

Last year, the value of imports and exports between Việt Nam and Africa was $8.1 billion, down 3.9 per cent. 

— VNS    LINK

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Henig:  Demand for industrial land for rent remains high

February, 14/2023 - 08:59

The demand for industrial land for rent in Việt Nam will remain high this year thanks to policies promoting investment in the country, experts said.

HCM CITY — The demand for industrial land for rent in Việt Nam will remain high this year thanks to policies promoting investment in the country, experts said.

Due to short supply, rental prices for industrial land are expected to continue to rise by an average of 8-20 per cent year-on-year in 2023, depending on the region, according to a report by the SSI Securities Corporation.

Last year, industrial real estate rents rose by an average of 10 per cent due to high demand, according to the report.

Trang Minh Hà, chairman of North Stars Asia Company, said that in Việt Nam, industrial real estate leasing has seen a hike in demand and rental prices, especially for logistics and warehousing.

The industrial land-for-rent market is likely to remain strong over the next 12 months, she added.

Demand for industrial land has surged as the occupancy rate in industrial hubs has reached almost 100 per cent, she said.

Many ready-built warehouses, factories and logistics and data centres are being built in industrial parks (IPs) across the nation, she added.

The average rent for industrial land in the southern region was $159 per square metre in the last quarter of 2022, up 3 per cent over the previous quarter and 10 per cent year-on-year, according to global real estate services firm Cushman and Wakefield.

The highest rent in HCM City was $300 per sqm. The occupancy rate increased to 92 per cent from 91 per cent. The average rent in Bình Dương and Long An provinces was $180.

According to the Ministry of Planning and Investment, Việt Nam has 292 industrial parks with a total land area of 87,100ha and 106 more are under construction.

They are home to some 10,000 domestic companies and 11,000 foreign-owned firms that have invested over $340 billion.

Việt Nam continues to be an appealing destination for industrial real estate investors, according to Cushman and Wakefield.

The firm attributed this to the country’s stable growth rate, an export-oriented economy, a young labour force, investment incentives, a strategic location and a positive economic outlook.

With a stable political environment, Việt Nam has also become popular for foreign investors moving out of China.

— VNS   LINK

KTFA Monday Night CC " Second Phase=Second Article" 2-13-2023

KTFA

Monday Night Conference Call

2-13-23….SECOND PHASE = SECOND ARTICLE

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=bYXdGXcgwes

Monday "Vietnam News" Posted by Henig at KTFA 2-13-2023

KTFA: Vietnam: 

Henig:  State Treasury to auction VND400 trillion worth of government bonds in 2023

08:47 | 13/02/2023

The State Treasury has announced that it plans to raise VND400 trillion (over US$17 billion) worth of Government bonds via auctions on the Hanoi Stock Exchange (HNX) this year.

In the first quarter of 2023, the State Treasury will offer 108 trillion VND worth of G-bonds with different maturities, including 5-year and 7-year bonds valued at 8 trillion VND, 10-year and 15-year bonds each valued at 45 trillion VND, and 5 trillion VND worth of 20-year and 30-year bonds each.

On February 1, the HNX organised three auctions of 5-year bonds worth 500 billion VND, and 10-year and 15-year bonds worth 5 trillion VND each.

The State Treasury said in 2023, the agency will issue G-bonds closely following market developments, and the revenue collection and disbursement progress of the public investment capital plan from the State budget.

It will manage interest rates of auctioned G-bonds in line with the Government's direction of fiscal and monetary policies, and issue G-bonds with different maturities to meet the needs of investors, thus promoting the liquidity of the G-bond market, raising more capital for the State budget and supporting the development of the capital markets.

Source: VNA   LINK

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Henig:  Bắc Giang’s train station to offer int’l freight transportation services

February, 13/2023 - 10:35

The Kép station will organise a fleet of trains running from Kép to Đồng Đăng Station in the border province of Lạng Sơn and then to China’s Pingxiang station.

HÀ NỘI — Kép train station in the northern province of Bắc Giang will offer international freight transportation services from February 20, as it meets all necessary conditions, according to the Vietnam Railways Corporation (VNR).

Specifically, the station will organise a fleet of trains running from Kép to Đồng Đăng Station in the border province of Lạng Sơn and then to China’s Pingxiang station.

The Kép Station’s load and unload capacity is from 80 to 100 carriages or containers per day. Freight includes electronics and industrial products, construction materials, industrial wood and raw ore.

A bonded warehouse is expected to be built at the station to serve the import and export activities of enterprises in Bắc Giang and Bắc Ninh provinces and neighbouring localities. It specialises in receiving refrigerated containers transported from the South which will then be exported to China.

Currently, VNR is managing international freight terminals, namely Lào Cai, Yên Viên, Hải Phòng, Đồng Đăng, Giáp Bát and Sóng Thần.

— VNS   LINK

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Henig:  Knock wood: UKVFTA boosts exports to UK

06:00 | 13/02/2023

(VEN) - The UK-Vietnam Free Trade Agreement (UKVFTA) has served as a catalyst to Vietnamese timber exports to the UK, said Ngo Sy Hoai, Vice Chair and General Secretary of the Vietnam Timber and Forest Products Association (VIFORES) in a talk with Vietnam Economic News’ Hoa Quynh.

How did Vietnamese wood exporters exploit market opportunities after the UKVFTA took effect?

Before Brexit, the UK was an important market for Vietnamese wood products, which accounted for 30-40 percent of Vietnam’s export value to the EU. While Brexit raised exporters’ concerns, the UKVFTA, taking effect in May 2021, helped increase Vietnam’s wood export value to the UK to more than US$265 million in 2021, up over 18 percent from 2020. More than 90 percent of wood exports to the UK are furniture products.

According to the agreement, refined furniture exports to the UK are subject to a 1.2-2 percent tax that will be gradually reduced in the near future, while wood product and intermediate material exports to this market are subject to a 2-10 percent tax, which will be also gradually reduced according to the agreed roadmap. The export growth shows that wood enterprises have taken advantage of UKVFTA opportunities. The EU and the UK are discerning markets and without the UKVFTA’s tax incentives, wood enterprises would find it hard to increase exports to the UK, as similar products from other countries like China have carved a major niche in this market.

What difficulties do timber exporters face under the UKVFTA?

Vietnam is gradually becoming a wood processing center as a result of free trade agreements (FTAs) in general and the UKVFTA in particular. However, Vietnamese products accounted for only 7.2 percent of the UK's wood and wood product import value, while the UK represents only two percent of Vietnam’s wood export value.

The UK has a long-established wood industry and has strict standards on product quality, design, environmental protection, climate change control, green growth and greenhouse gas emissions, obliging Vietnamese businesses to pay special attention to the legality of wood origin if they are to enter supply chains to this market.

Businesses have not made good use of digital platforms to introduce and bring wood products to British customers. Vietnamese producers need to improve product design and marketing if they are to enjoy bigger export opportunities. If Vietnam maintains export growth to the UK, the country will improve its prestige and attract the interest of customers from other markets.

What solutions do businesses and management agencies need to implement?

Wood enterprises need to make a breakthrough by making products with higher added value, using less labor and less input materials. They also need to better corporate governance and apply modern accounting software to ensure input and output transparency and avoid trade remedy-related lawsuits.

It is necessary to promote Vietnam as a capable, competitive and sustainable wood processing center, and identify opportunities and challenges related to the UKVFTA’s exploitation. Particularly, the Government needs to consider signing a Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA/FLEGT) with the UK to ensure that exporters to the UK meet environmental and forest protection standards.   LINK

Henig:  SBV works to mitigate potential risks for non-banking credit institutions

February, 13/2023 - 10:09

The State Bank of Việt Nam (SBV) is collecting comments on its draft circular to minimise potential risks for non-banking credit institutions and ensure they work in accordance with international standards.

HÀ NỘI — The State Bank of Việt Nam (SBV) is collecting comments on its draft circular to minimise potential risks for non-banking credit institutions and ensure they work in accordance with international standards.

The draft circular stipulates the internal control system of non-banking credit institutions, which include financial companies, financial leasing companies and other non-banking credit institutions.

According to the SBV, the operation of non-banking credit institutions is simpler than that of commercial banks and foreign bank branches. Under the current legal regulations, the institutions are not allowed to receive deposits from individuals, but only from organisations; as well as not being permitted to provide payment means and payment services like commercial banks and foreign bank branches, but their operations still pose risks.

Therefore, the establishment of a risk management system according to Basel standards can be considered a solution to minimise potential risks that may occur during the operation of non-banking credit institutions, the SBV said, adding that the change is also consistent with the current trend of corporate governance in general.

The draft circular stipulates the internal control system must have three independent protection lines.

The first line has the function of identifying, controlling and mitigating risks. Banks’ divisions related to sales, risk control, accounting and human resources will take responsibility for the line.

The second line has the function of developing risk management policies and internal regulations on risk management. It also takes the responsibility for measuring and monitoring risks.

The third line has the function of internal auditing, which will be performed by the banks’ internal audit division in accordance with the Law on Credit Institutions and this circular.

According to the SBV, the draft circular is also consistent with the regulations in Basel which also has the similar three-line protection model.

Besides, the new regulations in the draft circular are dispensable as the Law on Credit Institutions has also amended and supplemented regulations that credit institutions must issue internal regulations to ensure risk management, the SBV said.

— VNS   LINK

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Henig:  Deposit rate continues to drop but lower lending rate remains a challenge

February, 13/2023 - 09:22

Both the six-month and 12-month term rates now stand at 9.3 per cent per year, down from 9.7 per cent and 9.5 per cent per year, respectively.

Compiled by Mai Hương

Commercial joint stock banks continued to lower deposit interest rates early this month – a move that raises hope of a fall in lending rates.

After the ‘rate war” in December when saving interest rates were pushed up to 11 per cent per year at some banks, commercial banks started to adjust rates down after Tết (Lunar New Year) and cut further last week.

From Thursday, National Citizen Joint Stock Bank (NCB) lowered its saving interest rates by between 0.2-0.45 percentage points, depending on the term. Both the six-month and 12-month term rates now stand at 9.3 per cent per year, down from 9.7 per cent and 9.5 per cent per year, respectively.

Early last week, Sài Gòn Commerical Joint Stock Bank (SCB) – the leading player in the ‘rate war’ last year – reduced saving rates on many terms. Its 24-month rate now stands at 9.1 per cent per year, down from 9.95 per cent, and the 12-month rate dropped to 9.5 per cent from 9.95 per cent.

Techcombank also cut saving rates by 0.5 percentage points for terms of six months or more from February 7, while PVComBank reduced rates by 0.2-0.3 percentage point, bringing the six-month rate down to 8.3 per cent per year and 12-month rate to 8.8 per cent per year.

Except the Big Four, including Agribank, Vietcombank, VietinBank and BIDV, which have kept their interest rates steady in the past several months, deposit rates listed at most banks now fall to 9.5 per cent at the highest.

At the meeting between the State Bank of Việt Nam (SBV), commercial banks and property developers on Thursday, Vietcombank General Director Nguyễn Thanh Tùng said before this meeting, banks’ leaders agreed to cut the deposit rates to reduce the lending rate.

The ceiling deposit rate may be brought down to 8.7 per cent per year in the coming time instead of the current 9.5 per cent per year, a bank leader said.

The Governor of the central bank has asked commercial banks to continue decreasing operating costs, streamlining administrative procedures and unnecessary expenses to have room to reduce lending interest rates. The SBV emphasised that it will monitor cases where banks continue to raise interest rates and take measures to deal with these banks.

Unexpected but understandable

The banks’ movements, though surprised the market, are comprehensible given the context that many global central banks have officially slowed down their rate hike roadmap on belief that inflation has passed its peak.

In the policy meeting in early February, US Federal Reserve (Fed) only raised the key rate by 0.25 percentage points after having made four consecutive hikes of 0.75 percentage point in 2022 and one more 0.5 percentage point increase in the last month of 2022.

Meanwhile in Việt Nam, some comments have suggested the pressure to continue raising the interest rate of the State Bank (SBV) to support the exchange rate in 2023 has decreased significantly.

In a recent report, Bảo Việt Securities Co (BVSC) said deposit rates were almost flat in January, showing signs of cooling down from the fever in December and may continue to decrease in 2023 due to favourable macro conditions.

“BVSC believes that (SBV’s) pressure to raise interest rates to support the exchange rate will no longer continue in 2023. Instead, monetary policy this year is likely to shift to a supportive direction for growth,” it said in the report.

The securities company expects interest rates to fall again in 2023, with clearer signs from the second quarter, when the Fed stopped raising interest rates and Việt Nam's inflation cooled down.

According to Việt Dragon Securities Co, exchange rate pressure was the main cause for the hike of interest rates in 2022 but now this pressure has cooled down, which may lay a foundation for SBV to keep key interest rates unchanged in 2023.

In addition, the inflation target in 2023 is loosened to 4.5 per cent and fiscal policy shares the pressure with monetary policy, so the exchange rate is expected to decrease as well.

Challenges remain

However, pressure on interest rate is still large.

It can be seen that the lending rate now doubles or more of the deposit rate, averaging between 13-17 per cent per year, even higher.

Economist Lê Xuân Nghĩa, a member of the National Financial and Monetary Policy Advisory Council said the current interest rate ground is too high.

If the inflation rate is around 4 per cent, the savings interest rates should be around 6-7 per cent per year to help keep the lending rates at rational levels.

Vietcombank Securities Company (VCBS) predicts the deposit interest rate will remain high at least until the middle of the year. Amid stiff competition to mobilise capital, VCBS believes the group of small- and medium-sized commercial banks will not reduce interest rates in major terms. It is forecast that deposit rates will peak in the first six months of 2023 with an increase of 1-1.5 percentage points.

Director of SBV’s Monetary Policy Department Phạm Chi Quang said in 2023, the global economy is likely to have a recession, and at the same time Fed will continue its rate hike. These factors will put pressure on interest rates to continue. 

— VNS    LINK

Sunday "Vietnam News" Posted by Henig at KTFA 2-12-2023

KTFA Vietnam: 

Henig:  PM holds roundtable discussion with Brunei energy, oil and gas firms

February, 11/2023 - 17:11

Delegates discussed and proposed new business ideas and opportunities to lift bilateral economic, trade and investment ties, especially in energy and oil and gas.

BANDAR SERI BEGAWAN — Prime Minister Phạm Minh Chính held a roundtable discussion with Brunei energy and oil and gas enterprises in Bandar Seri Begawan capital on February 11, as part of his ongoing visit to Brunei.

Delegates discussed and proposed new business ideas and opportunities to lift bilateral economic, trade and investment ties, especially in energy and oil and gas.

A representative of the Brunei Government shared the vision, socio-economic development strategy and economic restructuring and diversification plans under the Brunei Vision 2035 that turns the country into an economy with dynamic and sustainable development.

PM Chính committed all possible support for Brunei firms to do business effectively and sustainably in the country. "Your success is also our success,” he affirmed.

He suggested both nations focus on promoting emerging economic fields such as green, digital, circular and knowledge-based economies and innovation; diversifying markets, products and supply chains. He asked for measures to step up collaboration in energy, chemicals, and Halal food for Islamic people.

The Vietnamese leader expressed his belief that with determination, efforts and close friendship between the two peoples, trade and investment cooperation will continue to be an important pillar of Việt Nam-Brunei relationship and a driving force to lift bilateral ties to a greater height.

— VNS   LINK

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Henig:  HDBank to maintain high growth, promote digital transformation

February, 11/2023 - 13:40

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) is set to maintain strong growth both in scale and quality, a representative of the bank told its Investors Conference while announcing its business results for 2022 in HCM City on February 10

HCM CITY — The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) is set to maintain strong growth both in scale and quality, a representative of the bank told its Investors Conference while announcing its business results for 2022 in HCM City on February 10.

The bank is focusing on programmes that are expected to make a positive contribution to raise operational efficiency and safety for the bank such as implementing Basel III standards, accelerating digital transformation and further promoting the service sector.

The representative said HDBank’s 2022 results were the “best-ever,” with its pre-tax profit up 27.2 per cent over 2021 to VNĐ10.27 trillion (US$435.8 million).

Total operating income topped VNĐ21.97 trillion ($933 million), a year-on-year rise of 31.1 per cent.

The bank's bancassurance revenue more than doubled over the figure of 2021, promising robust growth in the future.

HDBank's asset quality was also at a good level with the consolidated and stand-alone non-performing loan ratio at 1.67 per cent and 1.3 per cent, respectively, much lower than the sector’s average of 1.92 per cent.

The loan-to-deposit ratio was low compared to the maximum level set by the State Bank of Vietnam thanks to its success in liquidity risk management and capital mobilsation from businesses and households.

As of December 31, 2022, HDBank had 347 branches and transaction offices and more than 24,500 consumer finance transaction points, with over 16,000 employees serving over 14 million customers.

In addition, it has a large and potential customer ecosystem including customers of HDBank, Vietjet Air and HD SAISON.

The bank attributed its outstanding results last year to its implementation of a number of strategic initiatives such as speeding up digital banking development, taking advantage of its ecosystem, promoting bancassurance and enhancing corporate governance and environmental and social risk governance in line with the best international standards.

Notably, HDBank’s digital transformation has delivered positive results, with the number of customers using digital banking services nearly doubling, and transaction value up by 547 per cent last year.

This year, the bank aims to maintain high growth momentum, effectively manage risks, and ensure asset quality and operational safety indicators that are among the best in the sector.

Meanwhile, it will carry out programmes to support customers to overcome difficulties.

Besides that, the bank is also stepping up signing an exclusive bancassurance contract and mobilising international capital at a reasonable cost to further improve its safety and performance indicators to be ready to apply Basel III.

— VNS    LINK

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Henig:  RoK firms show interest in Việt Nam’s medical equipment market

February, 11/2023 - 11:14

This year's edition will be the first to be held in Việt Nam and feature 250 booths by 150 domestic and foreign firms, COEX said.

SEOUL — COEX, a leading exhibition organiser and venue of the Republic of Korea (RoK), and the Vietnam Advertisement and Fair Exhibition JSC (VIETFAIR) will co-organise the Mekong Medical & Healthcare Expo 2023 in the southern province of Bình Dương in June.

This year's edition will be the first to be held in Việt Nam and feature 250 booths by 150 domestic and foreign firms, COEX said.

It is expected to help Korean businesses penetrate the health sector of Việt Nam and other countries in the region.

COEX CEO Lee Dong-gi stressed that the Vietnamese health sector has posted an annual growth rate of 13.1 per cent over the past five years, with more than 90 per cent of medical equipment and supplies imported.

The country’s total health expenditure accounts for about 6.5 per cent of its GDP, the highest in the Association of Southeast Asian Nations (ASEAN), he said, calling Việt Nam a promising market for Korean medical equipment firms.

The organisers will prepare diverse solutions to help Korean companies expand its global network and explore new markets in ASEAN through the exhibition, he said.

— VNS     LINK

Henig:  HCMC ranks among top markets for data centre development

February, 11/2023 - 12:15

HCM City is ranked among the top markets in the land price category for data centre development, experts said.

HCM CITY — HCM City is ranked among the top markets in the land price category for data centre development, experts said.

In an annual report by Cushman & Wakefield, the company said that with many of the largest markets in the APAC region boasting particularly high land costs, only HCM City ranks within the top 10 for the land price category.

The rest of the top ten markets in the category are: Columbus, Santiago, Johannesburg, Atlanta, Nashville, Phoenix, Austin, Denver, and Chicago.

The report ranks major data centre markets around the world according to 13 weighted categories, including market size, fiber connectivity, power cost and environmental risk, to determine the top overall markets as well as the top performing markets in each category.

According to the company’s latest forth quarter of 2022 HCM City marketbeat report, the average rental price reached US$159 per sq.m per lease cycle, up 3 per cent quarter-on-quarter and 10 per cent year-on-year. 

Việt Nam may be a frontier data centre market at this juncture but it has numerous fundamentals that would suggest great potential for development going forward. The country currently has 70 per cent internet penetration, with an estimated 29 million people yet to get online. 

Over 48 per cent of Việt Nam’s capacity is located in the centre of HCM City. Currently, only a small number of multinationals require high-level capacity.

The common approach for international operators is to partner with local telecommunication operators. There is a sizable lack of existing infrastructure relative to the population of the market and demand for internet services. This represents a major opportunity at both the content provision and infrastructure establishment level.

According to Cush & Walkfield, south of HCM City is preferred as a hub for data centres, especially for cloud services platform providers, due to latency issues and the securing of manpower. CMC Telecom opened its Tân Thuận Data Centre in August last year. The facility was designed by B-Barcelona of Singapore. The facility has a total area of 13,133sq.m and was 30 per cent pre-leased at launch according to CMC. 

Australian edge data centres firm Edge Centres has expanded into Asia with the deployment of their first data centre, EC51, in Việt Nam in HCM City in collaboration with the Việt Nam National University. They also have plans for an additional edge site in HCM City. 

GAW Capital acquired greenfield land in the Sài Gòn Hi-Tech Park in the city. The data centre is expected to be over 18,000sq.m and support 20MW in capacity.  

Viettel, a Vietnamese telecommunications company, announced plans to build a new data centre with $260 million in investment. While specifics on the facility have yet to be announced, this would be Viettel’s third project in the city.

Competition for sites between both data centre players and other asset classes has reached a fever pitch over the course of the past year. Fulfillment centres and large-scale single family rental developments have been evaluating similar sites as data centres. 

According to the company, one notable advantage that data centres have in competition for these sites is the limited impact on surrounding traffic and parking availability, a key area of concern for a number of local communities. However, data centres do require a higher power draw, and there have seen greater local community concerns about the potential effect on electrical grids. The growth of edge data centres has continued, optimising workload for latency. 

— VNS    LINK

KTFA Members "Saturday Iraq News" 2-11-1012

KTFA:

Clare:  The Central Bank of Iraq meets the US Federal Reserve Bank and the US Treasury at the same time

February 11, 2023

On Friday 10/2/2023, the delegation of the Central Bank of Iraq met for long hours with both the delegation of the US Federal Reserve Bank and the US Treasury Department in Washington, DC.

The two parties expressed their willingness to work jointly to meet the challenges of working on the electronic platform for remittances and cash.

The delegation of the US Federal Reserve Bank and the US Treasury discussed a number of support and attribution mechanisms for the Central Bank of Iraq, in order to enhance its capabilities to deal flexibly with crises during this stage.

The US Federal Bank confirmed that the Central Bank of Iraq's measures are in the right direction to build a solid banking sector.
Mr. Assistant Deputy Secretary of the US Treasury showed ways to fully support the efforts of the government of Iraqi Prime Minister Mr. Muhammad Shia'a Al-Sudani in economic reform, and the readiness of the US Treasury Department to provide the required support.

The meeting listened to a presentation by the Governor of the Central Bank of Iraq regarding the bank's directions in achieving its most important goals to ensure general stability in prices, and options and proposals in the field of accelerating, expanding and streamlining the work of the electronic platform for external transfer.

The Governor of the Central Bank of Iraq, Mr. Ali Mohsen Ismail, confirmed the bank's intention to launch the second package of facilities that would enhance the stability of the exchange rate.

Central Bank of Iraq
Media Office 
11/2/2023

https://cbi.iq/news/view/2236

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Clare:  J.P. Morgan to facilitate payments from the Iraqi banking system to China, CBI

2/11/2023

On the sideline of his visit to Washington, the Central Bank of Iraq (CBI) Governor, Ali Al-Allaq, met with Daniel Zeliko, Vice Chair and Chair of the Governing Board of J.P. Morgan Development Finance Institution.

J.P. Morgan is a global leader in financial services, offering solutions to the world's most important corporations, governments, and institutions in more than 100 countries.

According to a CBI statement, both sides discussed financial issues, including reserves and liquidity management, and the J.P. Morgan technical support to the Central Bank and the banking sector in Iraq.

The meeting agreed that J.P. Morgan would facilitate payments from the Iraqi banking system to China to directly finance the private sector imports.

"CBI is committed to applying international standards in anti-money laundering and countering the financing of terrorism (AML/CFT) measures," Al-Allaq said.

Trade between Iraq and China rose to a record level last year, making Iraq the Asian country's second most important trading partner.

According to data from the Chinese embassy, goods worth around $53.37 billion were traded between the two countries, up around 43.1% from 2021.

Iraq has become one of the biggest beneficiaries of China's Belt and Road Initiative as China deepens its economic ties across the Middle East through billion-dollar construction and energy contracts.

Beijing struck $10.5bn in new construction deals in Iraq last year, part of a "strong shift" in its engagement towards the Middle East despite a broader downturn in Chinese outbound investment.

"In terms of contracts, Iraq is China's biggest partner. It is also its second largest commercial partner," China's ambassador to Baghdad, Cui Wei, said in a press conference in October 2022.LINK

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Clare:  It continued for many hours.. The Iraqi Central Bank reveals the details of its meeting with the Federal Reserve and the US Treasury

2/11/2023

The Central Bank of Iraq revealed, on Saturday, the details of its meeting with the US Federal Reserve Bank and the US Treasury Department, which it said lasted for many hours.

In a statement received by Shafaq News agency, the bank stated, "The Central Bank of Iraq delegation met for long hours with both the US Federal Reserve Bank and the US Treasury delegation in Washington, D.C. at the same time."

According to the statement, the two parties expressed their willingness to work jointly to meet the challenges of working on the electronic platform for remittances and cash.

The delegation of the US Federal Reserve Bank and the US Treasury discussed a number of support and attribution mechanisms for the Central Bank of Iraq, in order to enhance its capabilities to deal flexibly with crises during this stage.

The US Federal Bank confirmed that "the Central Bank of Iraq's measures are in the right direction to build a sober banking sector."

The Assistant Deputy Secretary of the US Treasury indicated ways to fully support the efforts of the government of Iraqi Prime Minister Muhammad Shia al-Sudani in economic reform, and the readiness of the US Treasury Department to provide the required support.

The meeting listened to a presentation by the Governor of the Central Bank of Iraq regarding the bank's directions in achieving its most important goals to ensure general stability in prices, and options and proposals in the field of accelerating, expanding and streamlining the work of the electronic platform for external transfer.

The Governor of the Central Bank of Iraq, Ali Mohsen Ismail, confirmed the bank's intention to launch the second package of facilities that would enhance the stability of the exchange rate. LINK

Henig:  News about the arrest of a bank manager on charges of smuggling millions of dollars out of Iraq with forged invoices

Feb. 11, 2023

Baghdad/Al-Masala: Sources revealed the arrest of an Iraqi bank manager on charges of smuggling millions of dollars out of Iraq.

Sources said that the director of an Iraqi bank was arrested for his involvement in smuggling hundreds of millions of dollars out of the country, through forged invoices.    LINK

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Henig:  Babylon.. Oil derivatives smuggling factory seized and owner arrested after fleeing to Baghdad

2023-02-10 | 05:32

Al-Sumaria News - Security The National Security

Agency announced on Friday the seizure of a factory for smuggling oil derivatives in Babylon, while pointing to the arrest of its owner after fleeing to Baghdad.

The agency's media said in a statement received by Al-Sumaria News that the detachments of the National Security Agency "managed to seize a refinery and smuggling of oil derivatives in Babylon."

The statement added that "the National Security Agency was also able to arrest the owner of the factory after he fled to Baghdad."     LINK

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Henig:  ExxonMobil is close to leaving Iraq. Find out the details of the upcoming deal

Economy News - Baghdad

ExxonMobil is close to exiting the West Qurna 1 field.

Iraq Oil reported in a report translated by Al-Eqtessad News that the company is "negotiating a two-part deal to sell its 32.7% stake in the West Qurna 1 oil field to the Malaysian company Pertamina and the Iraqi state-owned Basra Oil Company."

The sale, if it takes place, will "resolve the dispute that ExxonMobil has submitted to international arbitration. It will also strengthen China's foothold in Iraq's oil sector, with China's PetroChina, which currently has a 32.7 percent non-operating stake in the project, taking over as operator."

According to the website, two Iraqi oil officials confirmed the broad outlines of this proposed deal, "where Pertamina will receive an additional 10 percent stake in the project, bringing its total stake to 20 percent, while the Basra Oil Company will buy the remaining 22.7 percent of ExxonMobil."  LINK

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Henig:  Jojoba plant in the deserts of Iraq. What is its economic value? How does it support the agricultural sector?

10/2/2023

BAGHDAD – 100 years ago, Iraq was called the "Land of Blackness" because of the greenness of its large land resulting from the cultivation of many crops, fruits, vegetables, grains and others, but today the country suffers from a significant decline in agricultural areas.

Although the country is suffering from drought, the green carpet has returned to cover some areas, especially in the south, where the cultivation of jojoba has begun to flourish in many areas. And what is its use? And how does the government invest it?

Agriculture in Numbers

During the seventies and eighties of the last century, Iraq adopted development programs and policies for the agricultural sector, but it did not achieve its goals fully as a result of the abnormal conditions that the country went through, from many wars and then an international blockade that extended between 1991 and 2003, which reflected negatively on agriculture and natural resources, especially water.

As a result, figures obtained by Al Jazeera Net correspondent from government sources confirmed that the contribution of the agricultural sector to GDP for 2022 is estimated between 2.5% and 3.5% as a result of water scarcity and lack of government support from fertilizers and seeds, but government efforts are now heading to the "jojoba" plant, which turns the arid desert into a green carpet.

What is jojoba?

According to agricultural engineer Ali Al-Qaragholi, one of the advantages of the soil in Iraq is that it embraces the cultivation of any plant, including the jojoba plant, which is a dicotyledonous plant, adding, "Jojoba has a strong root network consisting of a deep wedge root that reaches a length of more than 10 meters and branches from it a group of non-superficial side roots, and it is also characterized by the fact that its root network may reach a length of more than 10 times the length of the visible part of the plant above the ground, depending on the quality of the soil. and the ability of the roots to penetrate into them."

Speaking to Al Jazeera Net, Al-Qaragholi explains that the jojoba plant is considered a single genus, and is characterized by several stems that are in total a circular shrub ranging in height from one meter to 4 meters, depending on the rate of rainfall or irrigation water, while its leaves are very similar to the leaves of the olive tree, but they are thick and their texture is similar to the texture of the skin.

As for the flowers of the plant, they are odorless and have colors that do not attract insects, according to Al-Qaragholi, who explained that as a result, the pollination process is carried out by the wind, as the light weight of pollen grains and their disc shape help them to move through the wind for distances of more than a thousand meters.

Jojoba fruits are of the "can" type and bear on both sides of the modern branches, and may be individual and sometimes even or in clusters ranging in number of fruits from two to 10 fruits according to many factors that control this, according to Karagholi.

Benefits & Investment

The goboba plant is a type of nut and its extracted oil is used in lotions of lotion liquids, soaps, medical applications and ointments, Dr. Kazem Dili Hassan, dean of the College of Agricultural Engineering Sciences at the University of Baghdad, told Al Jazeera.

Regarding the benefits of this plant, Dr. Hassan adds that the oil constitutes 50% of the content of the jojoba seed, as it is classified as a safe waxy oil that traps moisture, which prevents dryness, and contributes to the manufacture of skincare, body and cosmetics.

"Jojoba wax oil is also used in painting furniture and floors, making high-quality, slow-burning candles, and is also used in biofuels," the agricultural academic added.

Muthanna Governorate (south) is the first in the country to actually start investing in the jojoba plant by exploiting the desert areas scattered in it.

Speaking to Al Jazeera Net, the Director General of the Muthanna Investment Commission, Adel Al-Yasiri, said, "The Commission tended to exploit the Muthanna desert through agricultural investment, where it was actually started planting 500,<> jojoba plants."

Al-Yasiri revealed the Investment Authority's plan to reach the cultivation of one million dunums of this plant during the current year, in addition to asking the owners of strategic projects invested in the governorate to allocate 10% of the project area to plant jojoba plants or palm trees, according to him.

He stressed that the plan of the Muthanna Investment Commission is to transform the desert of the southern province into an integrated food and economic basket for many strategic and food crops that contribute effectively to the development of the economic reality of the province in particular and Iraq in general, as he put it.

Poor agricultural culture

Despite the high hopes, agricultural expert Tahseen Al-Musawi believes – in his interview with Al Jazeera Net – that the culture of growing jojoba plants in Iraq is weak, as well as guidance messages through research and relevant institutions.

Al-Moussawi explained that going towards the cultivation of jojoba will contribute to the reclamation of desert areas, stabilizing the soil and preventing erosion, explaining that "the age of one plant may reach 200 years and perhaps more, as this plant tolerates thirst, salinity and temperatures that reach more than 45 degrees Celsius, in addition to the possibility of growing jojoba in all types of soil, even in rocky ones."

The agricultural expert said that jojoba cultivation needs a national project adopted by state institutions, with government support to benefit from Egypt's experience, which succeeded in investing jojoba to stimulate its green economy, according to him.

Source : Al Jazeera LINK

Henig:  More than $ 53 billion in trade exchange between Iraq and China during the year 2022

2023-02-10 03:38

The Chinese Embassy in Iraq announced on Friday that the volume of trade exchange between the two countries exceeded 53 billion US dollars during the past year.

The embassy said in a statement published today that the volume of trade exchange between China and Iraq reached 53.37 billion US dollars in 2022, an increase of 43.1% year on year.

Last October, Chinese Ambassador to Baghdad Cui Wei told a press conference that "Iraq is the largest country for the Chinese side in terms of contracts and the second partner in terms of crude oil and the volume of trade."    LINK

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Henig:  More than $ 53 billion in trade exchange between Iraq and China during the year 2022

2023-02-10 03:38

The Chinese Embassy in Iraq announced on Friday that the volume of trade exchange between the two countries exceeded 53 billion US dollars during the past year.

The embassy said in a statement published today that the volume of trade exchange between China and Iraq reached 53.37 billion US dollars in 2022, an increase of 43.1% year on year.
Last October, Chinese Ambassador to Baghdad Cui Wei told a press conference that "Iraq is the largest country for the Chinese side in terms of contracts and the second partner in terms of crude oil and the volume of trade."   LINK

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Henig:  Baghdad: We seek to pay the money owed to Russian companies 

Iraqi Foreign Minister Fuad Hussein announced that Baghdad will not violate US sanctions and wants to discuss with Moscow ways to pay the money owed to Russian companies.

During his visit to Washington, Hussein said: "We have a problem with payments. How can we pay Russian companies? That's a real problem."

"That's a problem, because if we pay, our financial system must eventually work through the international system. There are many sanctions for dealing with the Russian side. Our financial and banking systems are connected to Europe, America and many others."

"Doing business financially with Russia means opposing these sanctions. This means that we will create problems for our banking system. Of course, our mission and responsibility is to protect our banks, the central bank and other banks."

"We are discussing these matters with the U.S. side. But we know this is not so easy. As I said, our priority and first task is to protect our banks. When we go back to Baghdad, if the Russians want to discuss these things, we will explain to them why it is so difficult for us."

"If we can reach an agreement with the Russian side in order to protect our banking system, we will do it, because we understand that we have to pay the Russians. The question is when are we going to do it, and when are we going to discuss it with the Russians."

He noted that Moscow and Baghdad have strong ties, and that Russian business is widely represented in Iraq.

"As you know, we have many Russian companies, especially in the oil fields in Iraq, that have been operating for a long time, and we have good historical relations with Moscow."

He noted that cooperation between Russia and Iraq under sanctions against Moscow was discussed during the recent visit of Russian Foreign Minister Sergey Lavrov to Baghdad.

Source: TASS   LINK

Some "Vietnam News" Posted by Henig at KTFA Saturday 2-11-2023

KTFA:   Vietnam:

Henig:  Banks suffered big losses from securities trading in 2022

February, 11/2023 - 08:52

Fiin Ratings attributed the banks’ negative results in securities trading and investment to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market.

HÀ NỘI — Many banks reported negative results in securities trading and investment in 2022 due to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market, cafef.vn reported.

At State-owned VietinBank, most of its main business segments experienced positive development in the last quarter of 2022. The bank’s net interest income rose by 23.6 per cent to VNĐ12.85 trillion and the net income from service activities increased by 53 per cent to more than VNĐ1.78 trillion while the net income from foreign exchange trading was VNĐ1.123 trillion, up by nearly 2.5 times year-on-year.

However, VietinBank’s proprietary trading made a loss of VNĐ126 billion in 2022. The result was much worse than the previous year when the bank made a profit of VNĐ720 billion in the business segment.

Another State-owned big player Vietcombank was also under the same trend. Though the bank’s net interest income grew by 38.8 per cent to VNĐ14.8 trillion, its proprietary trading in 2022 made a loss of VNĐ115 billion, while it made a profit of VNĐ137 billion in 2021.

Techcombank also had proprietary trading seeing a loss of VNĐ241 billion in 2022, against a profit of VNĐ152 billion in 2021.

Sacombank also recorded negative results from proprietary trading. Specifically, the bank lost VNĐ20 billion from the activity in 2022, while in the previous year it made a profit of VNĐ163 billion.

TPBank’s pre-tax profit in 2022 was nearly VNĐ7.83 trillion, up 30 per cent against the previous year, but the bank’s net income from proprietary operation fell by 70 per cent.

According to the quarterly consolidated financial statement recently released by ACB, the bank’s pre-tax profit in 2022 was more than VNĐ17.11 trillion, up 43 per cent year-on-year, thanks to a decrease in credit risk provisions and an increase in income from service activities (up 22 per cent to VNĐ3.53 trillion) and from foreign exchange trading (up 20 per cent to VNĐ1.05 trillion). However, the bank’s securities trading segment plummeted by up to 92 per cent.

Many other banks such as VPBank, SHB and ABBank all recorded lower securities business results compared to 2021.

Fiin Ratings attributed the banks’ negative results in securities trading and investment to the interest rate hike, the exchange rate uncertainty, the sharp decline of stock indices and the ‘freezing’ of the corporate bond market.

Closing the session at the end of 2022, VN-Index and HNX-Index decreased by 32.7 per cent and 56.7 per cent, respectively, compared to the beginning of the year, which caused the stock portfolio held by banks and their subsidiaries of which business results are consolidated on the banks’ financial statements declined sharply.

— VNS     LINK

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Henig:  Nearly $1.4 billion worth of G-bonds raised in January

February, 11/2023 - 10:25

The figure was equivalent to 30.4 per cent of the first-quarter issuance plan and 8.21 per cent of the annual target.

HÀ NỘI — The State Treasury raised VNĐ32.8 trillion (US$1.39 billion) worth of Government bonds, or 96.56 per cent of the total G-bonds on offer, via eight auctions on the Hà Nội Stock Exchange (HNX) during January.

The figure was equivalent to 30.4 per cent of the first-quarter issuance plan and 8.21 per cent of the annual target.

Of which, 49.74 per cent were 10-year bonds while the remainder were 15-year bonds, with respective interest rates of 4.36 per cent and 4.56 per cent. The rates are down 29 and 24 basis points from the previous auction.

On the secondary market, the trading value of G-bonds during the month reached over VNĐ65.79 trillion, down 9.48 per cent month-on-month, with outright transaction value accounting for 53.74 per cent. The rest was traded via repurchase agreements.

—VNS    LINK

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Henig:  Vietnamese aviation sector to fully recover by end of year

February, 11/2023 - 10:10

The Vietnamese aviation sector is expected to fully recover from the impact of the COVID-19 pandemic by the end of 2023 with an estimated 80 million passengers and 1.44 million tonnes of cargo to be transported by air this year, according to the Civil Aviation Authority of Việt Nam (CAAV).

HCM CITY — The Vietnamese aviation sector is expected to fully recover from the impact of the COVID-19 pandemic by the end of 2023 with an estimated 80 million passengers and 1.44 million tonnes of cargo to be transported by air this year, according to the Civil Aviation Authority of Việt Nam (CAAV).

According to the global outlook for the aviation industry by CAAV, the amount of passengers and cargo transported by air in Việt Nam this year will be up 45.4 per cent and 15 per cent from last year, respectively, or up 1 per cent and 14.8 per cent from 2019 before the pandemic broke out.

Việt Nam saw a full recovery and recorded strong growth in the domestic aviation market in 2022, while its international market is expected to reach the level recorded in 2019 by the end of 2023.

However, there remain huge hurdles for the sector, including limited aviation infrastructure, fluctuation of fuel prices, human resource shortages, and the Russia-Ukraine conflict, which will continue to have a negative impact on the industry this year.

In addition, there are only a few large airports in Việt Nam, all of which have very limited capacities. 

Domestic airports served 9.8 million passengers in January, up 13.8 per cent from the previous month, including 2.3 million international arrivals, a rise of 10 per cent, according to CAAV.

Vietnamese airports handled 112,000 tonnes of cargo in January, up 11.6 per cent from the previous month, according to the authority.

Around 34 million passengers from Việt Nam are expected to travel overseas this year, triple the number of last year, according to analysts at CAAV.

Though China has already resumed travel and economic activities with Việt Nam, it will take longer than this year for the aviation sector to recover to pre-pandemic levels, experts said.

The IATA predicted a recovery of 80 per cent and 95 per cent in the number of international passengers and domestic passengers, respectively, compared to the pre-pandemic period. 

The Asia-Pacific region is expected to recover slowest, according to the association.

— VNS     LINK

Henig:  Thanh Hoa boosts forest product processing

10:00 | 11/02/2023

(VEN) - The industry promotion and energy efficiency center of Thanh Hoa Province is drafting a forest product processing development project for the 2022-2025 period in compliance with directions of the provincial Department of Industry and Trade.

Thanh Hoa Province is home to 160,000 hectares of forests with the Forest Stewardship Council (FSC) certification, more than 10,000ha of planted forests and 6.2 million scattered trees, with the area of large timber forests having increased to 56,000ha and Dendrocalamus barbatus to 30,000ha.

The 2022-2025 forest product processing development project is designed to support rural industrial establishments, increase the province’s wood and non-timber forest product export value to US$100 million and encourage more than 80 percent of wood processors in the province to apply advanced production technology by 2025. The project is expected to promote investment connectivity among rural industrial manufacturers, assist them in raw materials planning, technology, production and competitiveness improvement, and adding value to natural and planted timber.

In 2018, the center provided support worth VND1.3 billion for rural industrial producers in the province. In 2019, the center implemented vital industry promotion projects in the province’s Thach Thanh, Nhu Xuan and Nhu Thanh districts at a total cost of VND2.3 billion, and in 2020, it helped three industrial producers in Ngoc Lac, Nhu Thanh and Trieu Son districts apply advanced forest product processing machinery and equipment, and assisted two other rural industrial establishments, one in Nong Cong District and one in Nghi Son Town, to build technical demonstration models.

Thanh Hoa Province is home to more than 400 forest products processors. Industry promotion projects and forest product processing development workshops have helped them enrich their knowledge, standardize and improve production, and apply advanced technology and equipment. Businesses have begun to connect with each other to form value chains.

Industry promotion projects in Thanh Hoa Province give priority to local raw material exploitation and development and provision of jobs for local residents.

Linh Nhi    LINK

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Henig:  Việt Nam seeks solutions to keep up with green urban development trend

07:00 | 11/02/2023

In Việt Nam, a growing number of cities and municipalities are embracing this trend and are making plans to develop green urban areas that will help to protect the environment and support healthy, thriving communities.

As the world's great cities look to the future, one trend that has become increasingly unavoidable is the development of sustainable green urban areas. This shift is driven by a desire to create better, more livable environments for citizens and to improve their overall quality of life.

In Việt Nam, a growing number of cities and municipalities are embracing this trend and are making plans to develop green urban areas that will help to protect the environment and support healthy, thriving communities.

Reality of green cities

According to the Technical Infrastructure Department, the average tree density across Việt Nam is only 2-3 sq.m per capita. This is a low figure compared to the criteria of the United Nations of 10 sq.m per capita and one-fifth to one-tenth of the number in big cities worldwide, which is around 20-25 sq.m per capita.

In HCM City, although national standards indicate tree density is 15 sq.m per capita, the actual figure is much lower, at only one sq.m per capita.

The total area planned for public parks in HCMC is 11,400 hectares, which equates to a tree density of 7 sq.m per capita. However, only 500 hectares are used as parks, which is only a mere 0.55 sq.m per capita.

HCMC needs to plan and build "green belts" around the city, according to Đinh Quang Diệp, former head of the Department of Scenery and Flower Garden Technology.

Diệp's suggestion is because land reserves for green development in central urban areas, such as in Districts 1, 3, 4, 5, and 10, are no longer available. New urban areas in development need green areas to accompany the concrete architecture.

HCM City authorities have been raising the criteria of land reserves for trees in the city while trying to fulfil the current plans for developing parks in the city.

HCM City plans at least 150 hectares of parks and 10 hectares of public greenery from 2021 to 2025. The city will need to plant 10 million trees to get this done.

In Biên Hoà, Đồng Nai Province, where six industrial areas are present, the economic development has brought about a great rise in population and urbanisation.

Biên Hoà is the most populous Class I urban area in Việt Nam, with more than 1.15 million residents. This high population density has made the land reserves in the city smaller, leading to a decrease in land for trees.

The Ministry of Construction's technical regulation states that Class I urban areas must have a tree density of at least 6 sq.m per capita, but Biên Hoà currently has just over one sq.m per capita.

To meet up with demands for green development, Biên Hoà is focusing on reworking its plans for 2030 and 2050.

Opening up a greener space

For years, the green development of HCMC has been tied to the development of infrastructures. However, the speed of green development has never caught up to the speed of urbanisation, especially in areas such as Thủ Đức, Bình Tân, Bình Chánh, and Nhà Bè.

Experts suggested that HCM City must tightly manage the areas planned for parks that have been misused. Urban and residential projects must seriously commit to building parks for a more harmonious environment.

The city of Thủ Đức has ordered 34 wards to gather feedback from residents to build a general plan for 2040 to 2060. The wards are also ordered to review the current public land reserves planned for parks.

HCM City should have a policy that allows social investments in developing public parks of 10 hectares or more, said Nguyễn Đình Hoà, architect and urban planning expert.

Hoà suggested the parks provide proper ways of generating their own income, such as paid amusement parks, art exhibition areas, and indoor or outdoor gyms.

To achieve their tree density criteria of 3-4 sq.m per capita in 2030, HCMC has started a campaign, "Every resident plant a tree".

Funding and human resources, and volunteers have also been called in their quest to plant ten million trees by 2025.

The city also focuses on building legal frameworks and policies that attract investors to build greenery parks. The government will plan for each of these projects, build policies to gather investment, and manage policies to develop and maintain these parks.

In Biên Hoà, Đồng Nai, the authorities have been focusing on the development of new parks and greenery across the city in recent years.

Đỗ Khôi Nguyên, chairman of Biên Hoà People's Committee, suggested the city be allowed to enact their own measures to increase the tree density rate.

The city will gather investors to build parking lots which had to incorporate areas for greenery. The investors of these parking lots are also responsible for managing and developing green areas.

Smaller parks are also planned to be built in the city, which would also meet the demands for recreation of the public, as well as increase the urban green areas.

Source: VNS LINK

Friday "Vietnam News" Posted by Henig at KTFA 2-1-0-2023

KTFA:

Henig:   Hà Nội targets GRDP per capita of $36,000 by 2045

07:00 | 10/02/2023

As the country continues to develop, the government is focused on ensuring that the capital remains at the forefront of this progress, positioning it as a hub for commerce, culture, and innovation in the years to come.

Hà Nội is set to become a globally-connected city with high living standards and quality of life, according to a new plan that aims to raise the Gross Regional Domestic Product (GRDP) per capita to US$36,000 by 2045.

As the country continues to develop, the government is focused on ensuring that the capital remains at the forefront of this progress, positioning it as a hub for commerce, culture, and innovation in the years to come.

The average annual growth rate of GRDP is set to increase to 7.5-8 per cent by 2025 and 8-8.5 per cent by 2030. As a result, the GRDP per capita is expected to reach $8,500 by 2025 and up to $12,000-13,000 by 2030.

The figure is projected to reach $36,000 by 2045.

From 2026 to 2030, the processing and manufacturing industry will make up 20 per cent of the GRDP, the digital economy will make up 40 per cent of the GRDP, 80 per cent of the agricultural production value will use high technology, and labour productivity will increase by 7.5 per cent.

The urbanisation rate will reach 75 per cent by 2030.

By 2045, the city's economic, cultural and social development will be comprehensive, unique and harmonious and at the same level as the capitals of developed countries.

The plan details were revealed after the Politburo issued Resolution 15/NQ-TW on the orientations and tasks for the capital city's development until 2030 with a vision towards 2045 last April.

To fulfil these targets, the Resolution puts forwards key tasks and solutions, including continuing to raise awareness of the significant position, role and importance of the capital city; and developing the capital's economy rapidly and sustainably based on restructuring the economy in connection with renewing growth models and mobilising all resources effectively.

It is also necessary to strongly develop the city's culture in line with its role as a centre of education and training, science and technology, and healthcare while ensuring social security and welfare.

Other tasks include improving planning quality and promoting infrastructure construction, urban development and management. Furthermore, effective use of natural resources and environmental protection are key ones.

They also include ensuring national defence, security, social order and safety in all situations and promoting diplomacy, international integration and development cooperation to raise the position and prestige of the capital city.

The building and rectification of the Party and the political system must be increased for transparency and a stronger Party and political system, and legal systems must be completed in the capital with appropriate mechanisms and policies to meet the city's development requirements in the new period.

The Politburo asked the Party Organisation, administration and locals of the capital city to stay united and determined to work with central ministries, sectors and agencies, as well as other localities, to implement the resolution effectively.

The Politburo underlined the need to make comprehensive adjustments to the Capital Law to meet the development requirements of the capital city in the new situation.

Under the action plan, the city will tighten cooperation with government ministries and agencies to implement the tasks of the capital city's development strategy.

It will improve its coordination with provinces and cities throughout the country, especially with Hải Phòng and Quảng Ninh, to promote each other's potential and advantages for mutual development.

Source: VNS    LINK

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Henig:   IMO: FDI stands for Foreign Direct Investment

HCM City hopeful of getting $4.5b FDI in 2023

February, 10/2023 - 08:22

HCM City will be able to attract US$4.1- 4.5 billion worth of FDI this year if the economic situation stabilises and inflation remains under controlled, according to its Department of Planning and Investment

HCM CITY — HCM City will be able to attract US$4.1- 4.5 billion worth of FDI this year if the economic situation stabilises and inflation remains under controlled, according to its Department of Planning and Investment

Phạm Tuấn Anh, deputy head of its Foreign Economic Relations Sub-Department, said last year, despite being the locality worst affected by the COVID-19 pandemic, the city attracted $3.94 billion, a 5.4 per cent increase from 2021 and the highest among the country’s 63 provinces and cities.

Notably, inflows changed direction and, instead of the property sector, went into technology and manufacturing, he said.

The global economy would continue to face challenges this year, and so the city could struggle to increase FDI much from last year, he pointed out.

If the economic situation stabilises and inflation remains under controlled, it could get $4.1-4.5 billion, he told chinhphu.vn.

As of January 20 FDI for the year was worth $179 million, or 74 per cent higher year-on-year.

Of this, $87 million went into 50 new projects, $55 million was spent on acquiring stakes in other companies and $37 million went into 20 existing projects.

Singapore ranked first with 12 projects and $77 million, followed by Taiwan with $3.2 million and Hong Kong with $2.2 million.

Anh said the city has difficulty attracting investment, especially in large manufacturing projects, because it has little land left.

So its FDI strategy involves attracting foreign investment not only directly but also into supply chains in the south whose headquarters and R&D, logistics, training and support centres are located in the city and production activities are carried out in neighbouring localities, he added.

— VNS    LINK

Henig:  Shares mixed on declining liquidity

February, 09/2023 - 16:55

Shares were volatile this week with up-and-down sessions intertwining amid rising investor caution about the market outlook.

HÀ NỘI — Shares were volatile this week with up-and-down sessions intertwining amid rising investor caution about the market outlook.

On the Hồ Chí Minh Stock Exchange, the VN-Index decreased 0.76 per cent to close Thursday at 1,064.03 points. The benchmark index increased 0.6 per cent in the previous session.

Liquidity declined from VNĐ12 trillion on Tuesday to VNĐ10 trillion on Wednesday and VNĐ9.2 trillion (US$389 million) on Thursday.

Billion-dollar-cap stocks dropped in the last trading minutes of the afternoon session, pushing the VN-Index down sharply, while overall market breadth was rather balanced with 235 stocks falling, 184 rising and 166 closing flat.

Vietjet (VJC) surprised the market with a loss of 5.7 per cent despite its earlier reporting an impressive recovery after COVID-19 with a year-on-year rise of 175 per cent in net revenue to VNĐ7.35 trillion ($313.4 million) and a profit of VNĐ902 billion in the last quarter of 2022.

Other big draggers included Vietcombank (VCB), Vietinbank (CTG), BIDV (BID), Techcombank (TCB), Masan Group (MSN), Mobile World Investment (MWG), Vinhomes (VHM), Vincom Retail (VRE) and Hòa Phát Group (HPG), each losing between 1.1 and 2.8 per cent.

With negative movements of many large-cap stocks, major industry groups including banking, real estate, iron and steel, securities, retail and beverages were among the worst performers on Thursday.

On the bright side, the oil and gas group gained value. The largest company by market value PV Gas (GAS) increased 0.8 per cent while PetroVietnam Drilling and Well Services (PVD) hit the ceiling price of 7-per-cent growth, Petrolimex Gas (PGC) was up 1.3 per cent.

According to Viet Dragon Securities Co (VDSC), the market's decline was restrained with a support level of around 1,065 points for the VN-Index. Decreasing liquidity showed that supply pressure temporarily cooled down.

“However, the market's ability to rally is still difficult as the cash flow is still cautious and the supply pressure gradually increases when the market rallies. It’s expected that the market will continue to fluctuate and probe at 1,070 – 1,080 points in the next trading sessions,” said VDSC’s market analyst Phương Nguyễn.

On the Hà Nội Stock Exchange, the HNX-Index increased for a second day, up 0.14 per cent to close at 210.91 points. The northern market’s index edged up 0.3 per cent on Wednesday.

Liquidity also declined here with more than 46 million shares worth VNĐ743 billion being traded, down 25.5 per cent in volume and 15.8 per cent in value compared to the previous session.

Foreign trading was mixed. Foreigners concluded as net sellers on HCM City’s bourse with a trivial value of VNĐ11 billion. They were net buyers but for a value of VNĐ5 billion on the Hà Nội exchange.

— VNS    LINK

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Henig:  Fertiliser prices likely to remain at high level in coming months

February, 10/2023 - 08:31

Gas and petrol prices greatly affect the production cost of fertiliser because gas prices account for about 80-90 per cent of the production cost of ammonia - an important input for urea and DAP fertilisers.

HÀ NỘI — Fertiliser prices in the coming months are forecasted to remain at a high level due to the global market's continuing gas and petrol price fluctuations.

According to Phùng Hà, general secretary and vice chairman of the Vietnam Fertiliser Association, many experts in the fertiliser and finance world forecast that fertiliser prices are falling, but the possibility of them remaining at a high level remains. 

Gas and petrol prices greatly affect the production cost of fertiliser because gas prices account for about 80-90 per cent of the production cost of ammonia - an important input for urea and DAP fertilisers. Therefore, fertiliser prices in the coming months will still fluctuate unpredictably.

According to a survey of some fertiliser companies and trading agents, the current fertiliser price is at VNĐ10.5 million per tonne of Phú Mỹ urea fertiliser and VNĐ19 million per tonne for potassium sulphate fertiliser, while DAP fertiliser price ranges from VNĐ17 to VNĐ25.5 million per tonne depending on the type.

Hà said that the fertiliser prices in 2021-2022 increased rapidly by VNĐ1-1.9 million per tonne. However, China has started to open up the market and has not been limited to exporting 29 types of fertiliser, so the supply of fertiliser in the world market has been abundant, and fertiliser prices have also started to cool down.

For fertiliser supply for the winter-spring crop 2022-2023, at present, the production capacity of urea at four factories under the Vietnam Oil and Gas Group (PVN) and the Vietnam Chemical Group (Vinachem) has reached 2.5 million tonnes per year, while the domestic demand is only 1.6-1.8 million tonnes each year.

The domestic supply of phosphate-containing fertiliser and NPK fertiliser is higher than the local demand. However, Việt Nam still has to import about 40 per cent of DAP fertiliser and all potassium fertiliser volume to meet the domestic demand.

Vũ Xuân Hồng, deputy general director of Lâm Thao Fertiliser and Chemical Joint Stock Company, said that to ensure the supply and reasonable price of fertiliser for farmers, the company prepared before the Tết holiday a large volume of raw materials for production within at least three months, such as SA, sulfur, potassium. 

Lâm Thao expects to meet the supply for the agricultural production of the winter-spring crop 2022-2023 with over 30,000 tonnes of fertilisers of all kinds in store and a production output of nearly 2,000 tonnes of fertiliser per day, Hồng said. 

According to Hồng, to keep stability in fertiliser prices for farmers, Lâm Thao has found input materials with good prices, such as SA imported from the Middle East and Africa and urea imported from domestic factories.

With these efforts, the market prices of Lam Thao's fertiliser products are kept stable compared to the fourth quarter of 2022. 

Besides that, Lâm Thao has had efforts to reduce the cost of transporting fertiliser in the context of higher gasoline prices and handling costs.

Accordingly, the company has diversified forms of transporting fertiliser, including using cheaper transport means such as railway, waterway, and river instead of road transport as before, Hồng said.

According to Hoàng Văn Hồng, deputy director of the National Centre for Agricultural Promotion, the centre works closely with localities to guide farmers in using fertilisers reasonably, economically and effectively. It also encourages farmers to increase the use of organic fertilisers. VNS     LINK

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Henig:  SBV has not tightened credit into real estate: deputy governor

February, 09/2023 - 07:58

Deputy Governor of the State Bank of Việt Nam Đào Minh Tú dismissed the recent rumours from some associations that the central bank has been squeezing loans for this sector.

HÀ NỘI — The State Bank of Việt Nam (SBV) has not tightened credit into the real estate sector, Deputy Governor of the State Bank of Việt Nam Đào Minh Tú confirmed in a meeting with Vietnamese banks and property developers on Wednesday.

Tú dismissed the recent rumours from some associations that the central bank has been squeezing loans for this sector, saying that there has been no new document or statement issued on the matter.

"The SBV has put a grip on credit into some high-risk sectors and segments in the real estate, such as speculative investment and high-end segments with great value, which has the nature of a bubble, potentially threatening the system's safety," Tú said.

He said the real estate sector is one of the key industries that have largely contributed to the country's economic development.

However, the realty market has seen a growing supply and demand imbalance with an excess of high-end products, a lack of housing for middle- and low-income people, land fever in some localities and wrongdoings in the corporate bond market.

However, there is no tightening of credit in this sector, Tú reaffirmed.

The SBV's data shows credit balance for real estate businesses accounted for 21.2 per cent of the total credit outstanding of the whole economy worth VNĐ25.8 quadrillion (roughly US$109 billion) as of December 31, 2022 – the five-year high and the highest proportion in all industries.

Loans focused on consumer demand and self-use with a proportion of 68.7 per cent of total outstanding loans, up 31.1 per cent over the past year, and credit to real estate business accounted for 31.3 per cent, up 11.5 per cent.

By segment, credit balance for housing needs accounts for 62.2 per cent, land use rights 20.7 per cent, industrial parks and export processing zones 2.7 per cent, social housing 0.7 per cent and other fields 13.7 per cent.

"Therefore, it can be seen that credit institutions are still providing credit to the real estate sector with high growth and large outstanding loans. Feasible projects and loan plans are still provided capital following regulations," said Hà Thu Giang, director of SBV's Department of Credit for Economic Sectors.

Giang said there is no separate 'room' for the real estate, as the credit limit for the whole system is set to suit inflation control, and there will be no shortage of credit at the beginning of the year.

Proposals of property developers

At the meeting, property businesses also raised the difficulties and problems of the real estate market, focusing on legal issues.

According to Lê Hoàng Châu, chairman of the HCM City Real Estate Association, 'legal problems' account for 70 per cent of the difficulties of real estate businesses in accessing credit loans.

Next is the risk of private corporate bonds becoming 'bad debt' or credit loans' turning into bad debt groups'.

Châu explained this happens when a loan which is about to be due that, if not extended, will be classified as 'bad' debts, or businesses with overdue credit loans may be 'jumped' into a group of 'worse' debt. In addition, homebuyers now find it difficult to get credit.

Meanwhile, Phạm Thiếu Hoa, chairman of Vinhomes, proposed the SBV allow banks to finance purchasing, selling, depositing, and transferring contributed capital and shares in project investment companies and M&A activities.

At the same time, Hoa said that lending rates need to be adjusted in parallel with maintaining the collateral ratio as conventional loans for projects with a fully legal basis.

In addition, it is necessary to add specific mechanisms and policies for large investors and major projects with full legal stands to avoid the situation of 'levelling'.

Lê Trọng Khương, vice chairman of Hưng Thịnh Group and general director of Hưng Thịnh Land, also said that raising capital from bond issuance is an excellent source of money for businesses. However, at present, this channel is at an impasse.

To solve this bottleneck, he proposed that the SBV expand the 'credit room' so businesses can access more capital for business and investment.

According to Khương, interest rates currently stand at a very high level, affecting the price of products sold in the market. He hopes SBV and commercial banks may devise plans to push it down to support businesses to create affordable products for people.

In the future, to tackle difficulties and obstacles for real estate businesses and individuals when accessing credit, Tú said the SBV would continue to operate monetary policies proactively and flexibly, in line with fiscal policy and other macroeconomic policies, to support the economy, including the real estate sector.

The monetary authority will guide banks to increase credit securely and efficiently, providing economic capital and focusing on viable loan plans with good sales and payment ability, particularly in the real estate sector.

— VNS    LINK

Thursday "Vietnam News" Posted by Henig at KTFA 2-9-2023

Vietnam:

Henig:  Free trade deals yield bumper export year

06:00 | 09/02/2023

(VEN) - Effective use of Vietnam’s various free trade agreements (FTAs), especially of new-generation high-standard ones, has yielded a bumper year for exporters.

Increase recorded in markets

The value of 2022 import-export turnover, estimated at about US$750 billion, and the record trade surplus of more than US$11 billion, is being attributed largely to implementation of new-generation trade agreements Vietnam has signed in recent years. In fact, the FTAs have created opportunities to add value to key exported consumer goods.

According to To Hoai Nam, Secretary General of the Vietnam Association of Small and Medium Enterprises, after the shock of the COVID-19 pandemic, 2021 and 2022 exports to members of the 11-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) show that businesses and industries have grasped the opportunities offered by the deal.

General Department of Vietnam Customs data show that roughly 50,000 small and medium-sized enterprises participate in exporting to CPTPP markets, reflecting the deal’s value for the participation of small and medium-sized enterprises in exports.

Since activation of the EU-Vietnam Free Trade Agreement (EVFTA) in August 2020, Vietnam’s exports have also grown by over 22.3 percent in the first 10 months of 2022 with a turnover of goods reaching more than US$39.4 billion. A series of key products, such as textiles, footwear, furniture and electronics have all attained high growth rates. The group of agricultural, forestry and fishery products also experienced growth, with some products (rice, seafood) which previously struggled to penetrate the EU market able to take advantage of EVFTA tax quota commitments to boost exports.

Almost two years since coming into force, and despite being significantly affected by the COVID-19 pandemic, the new-generation FTA between Vietnam and the UK (UKVFTA) has yielded a 15.4 percent growth of exports to the UK market.

The Regional Comprehensive Economic Partnership (RCEP) trade deal that entered into force on January 1, 2022, while not a new-generation agreement, has also yielded opportunities for Vietnam, especially in agriculture. The markets of the 10-nation Asia-Pacific trade agreement accounts for 40 percent of the Vietnam’s export turnover of agricultural, forestry and fishery products, and the terms of the deal provide agricultural enterprises with greater opportunities to expand exports, especially of advantageous products such as rice, coffee, pepper, cashew, seafood, timber and wood. RCEP operates under open regulations on the origin of goods, helping businesses take better advantage of incentives from partners. It also offers opportunities for manufacturers to import input materials, diversify supply sources and grades of quality at cheaper prices.

Preserving achievements

Despite the varied opportunities and advantages of these free trade agreements, exporters are expected to face challenges in accessing and expanding their markets in 2023.

Nguyen Tien Chuong, President of the Dong Nai Export Association, identifies inflation and increased costs as responsible for these business difficulties. Nguyen explains that consumption markets have slowed, many importers are cancelling or delaying the receipt of goods, leading to increased costs for storage and logistics. In addition, limited resources challenge small and medium-sized enterprises. In order to improve competitiveness, Nguyen urges support of enterprises in technological innovation, backed by capital and human resources. Absent these two factors, enterprises are hard pressed to grasp export opportunities.

According to Vu Chi Mai, Energy Consultant of the German Agency for International Cooperation (GIZ), “with an open economy like Vietnam, when participating in new generation FTAs of high standards such as CPTPP and EVFTA, especially to be able to export sustainably to the EU, the enterprises must consider producing goods with clean energy sources associated with environmental standards.”

International trade experts point to the increasing emphasis by Vietnam’s FTA partners on the agreements’ commitments to the environment, green transition, labor conditions and sustainable development. Therefore, Vietnamese enterprises are being advised to comply with the green production process in order to export products with clearly indicated origin, ensuring standards, environmental considerations, efficient use of resources, protection of the ecological environment and fair settlement of social problems and thereby helping Vietnam achieve sustainable exports.

Ngoc Thao     LINK

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Henig:  High rates hurting businesses, hamper economic recovery

February, 09/2023 - 07:01

High interest rates have been hurting businesses' ability to invest in ramping up production capacity, said industry insiders and economists.

HÀ NỘI High interest rates have been hurting the ability of businesses to recover and invest in ramping up production capacity, said industry insiders and economists.

Economists called for the central government to take measures to bring down the rates, which have been sitting around 10 per cent in recent months.

Trần Việt Anh, director-general of Nam Thái Sơn Import/Export JSC., said a majority of businesses were not interested in fresh loans but lower rates would be a significant help as they faced lower demand and struggled to keep workers.

"There are businesses with credit room but still reluctant to apply for loans due to high rates, which will contribute to higher operational costs," he added.

Even developers for social housing projects were not immune as they were forced to borrow at regular rates.

Lê Hữu Nghĩa, director of Lê Thành Construction JSC., said many social housing projects had to borrow at 14 per cent, roughly the same as other commercial projects. It certainly will not help bring down housing costs in the market.

Despite a directive from the State Bank of Vietnam to give preferential policies to social housing developers, commercial banks have been slow in implementing them, citing a lack of guidance from the central bank.

Nguyễn Ngọc Hòa, president of the HCM City Union of Business Associations (HUBA) said as current rates sit above 10 per cent, it's very unlikely for businesses to stay financially viable and stressed the need for measures by the central bank and the government to step in to bring it down in the next six months.

Hòa said a large portion of businesses uses their property assets as collaterals. As the property market has been hit with a cold spell, money have become difficult to come by as banks tightened their purse string.

Professor Trần Đình Thiên, former head of the Vietnam Institute of Economics, said as inflation started to pick up and numerous disruptions experienced by the domestic and the international markets, high rates have been making life difficult for businesses.

He said injecting money through public spending could be useful at a time like this but this channel has been known to be sluggish and inadequate in responding to market changes in a timely manner. Even public fund disbursements aimed at speeding up economic recovery have been slow due to a number of legal and framework barriers.

"There were always the same issues with our financial market and public investment we must address, especially with the corporate bond market and the stock market, to enhance trust and reduce risk across the banking system," Thiên said.

President of the Vietnam International Arbitration Centre Vũ Tiến Lộc said the country's long-term economic prospect depends a lot on the development of its business community. He stressed the importance of establishing a more streamlined and transparent framework for the financial market.

"Our businesses can only operate as well as the business environment allows. Improving business performance can only be done along with improving the business environment," he said.

Lộc called for the removal of cumbersome and unnecessary business conditions, stronger administrative reform and shorter import/export processing.

VNS    LINK

Henig:  Digital payment systems have massive growth potential: fintech leader

February, 09/2023 - 08:07

Nguyễn Đăng Hùng, head of the Fintech Club Việt Nam under the Việt Nam Banks Association, speaks to the Vietnam News Agency about this development.

Chip card transactions via the National Payment Corporation of Việt Nam (NAPAS) system nearly tripled in 2022, while the proportion of cash withdrawals processed through the NAPAS system decreased by half, as people transition from cash to other payment methods such as transfer, QR code scanning, swiping cards or using e-wallets. This result is thanks to the strong digital transformation in the payment field in the past years.

Nguyễn Đăng Hùng, head of the Fintech Club Việt Nam under the Việt Nam Banks Association, speaks to the Vietnam News Agency about this development.

How effective has digital transformation been in the payment field in recent years?

According to the State Bank of Việt Nam, non-cash payment transactions in 2022 increased by 85 per cent in volume and 31 per cent in value.

It can be seen that the transaction value and quantity are different, and there are many transactions with low values. But this low value is not a worry and is actually good news. Low-value transactions prove that people have used more non-cash payments than before.

It shows the strong growth rate of electronic transaction channels such as the internet, mobile phones, and QR code scanning.

The State Bank said the growth rate of electronic transactions reached 89 per cent via the internet and even gained triple-digit growth via mobile phones and QR code scanning. That means people are increasingly familiar with cashless payment methods and the use of cashless.

There are many concerns that when financial technology (fintech) companies are established, it will pressure the banking industry greatly. What is the current reality?

There is a view that establishing fintech companies will create competition with the banking sector. Still, I think establishing fintech companies will create cooperation, not competition, with the banking industry. They could have a synergy of strengths with partners and minimise their weaknesses.

Việt Nam has three fintech unicorns, with each value at over US$1 billion. These three companies have payment centres, including MOMO, VNPay, and ZaloPay.

Momo is an app that provides e-wallet services for tens of millions of Vietnamese people. MOMO has close cooperation with banks.

The second is VNPay. VNPay is a company licensed by the State Bank as a payment intermediary. It has many payment services related to QR code scanning and various other payment services based on mobile banking platforms. VNPay also has close cooperation with banks.

ZaloPay is also a payment intermediary based on the chat network - Zalo, as well as VNG Corporation, a billion-dollar technology company in Việt Nam.

The success of these three payment centres is based on close cooperation with banks.

NAPAS provides national payment infrastructure for all banks. It is also indispensable for the cooperation and sharing of the infrastructure between the banks themselves and the fintech companies.

In addition, there is the lending sector, including consumer finance companies such as FE credit or some other consumer lending companies and banks' lending companies. 

These companies all have close cooperation with banks. For example, FE credit cooperates with VPBank and Vietcredit cooperates with Viet Capital Bank. Fintech companies and banks cooperate among them to take advantage of banks' capital, experience and technology from the fintech firms.

High-tech crime is increasing. Is this the biggest challenge for banks and fintech companies in the digital transformation progress?

When banks and financial companies deploy digital transformation or launch new services using financial and banking technology, there are requirements for cybercrime prevention and combat. 

Companies are willing to invest in biometric technology to ensure that the right users use these services. There are often vulnerability scanning and cooperation with different cybersecurity companies to prevent high-tech crimes.

However, if the user is not worrying when sharing a pin code or transferring money to a stranger, there is no way to prevent deceptive crimes using high-tech. Even if the investment in technology and security measures is so large. 

Therefore, banks and financial companies need to coordinate with the media to share information about guidance on using high-tech banking services with the users and their customers. Then, they could recognise the dangers and risks of using such high-tech services and protect themselves.

What is the growth potential of digital payment and the digital ecosystem in Việt Nam?

Việt Nam's developing economy has shifted from agriculture to industry and services. This brings a huge development opportunity for the digital transformation field, optimising all activities in the social-economic development.

The government's national digital transformation programmes have set targets that the digital economy will account for 20 per cent of GDP by 2025 and 30 per cent by 2030.

According to a forecast by the International Monetary Fund (IMF), Việt Nam's economy will rise to the third position in the ASEAN region by 2025 with a GDP of about $570 billion.

That means in 2025, the digital economy will reach a value of about $114 billion, or 20 per cent of $570 billion. This is an extremely large number, showing the great potential in digital transformation and the digital payment field for all businesses.

In addition, the Government has licensed Mobile Money with the expectation that mobile money services will be popular in cities and can reach remote and rural areas.

The most recent is payment services using QR codes. This is the story of financial universalisation not only in the city, big markets and supermarkets but also in night markets and tourist areas in rural and remote areas. The use of QR code payment methods has the support of the internet and mobile phones. 

It is expected a great development of digital transformation in rural areas as well as in the agricultural sector.

What do banks, fintech companies, and payment intermediaries need to do to take advantage of that opportunity effectively?

The banks and payment intermediary companies have an important role in the payment stage of the digital transformation value chain. 

For example, Việt Nam has level-4 public service payment with an online payment service. With level-3, people still have to go towards and the State treasury to pay cash.

With the payment of social insurance and pensions, people only need to provide their account numbers, and they can check their money through the internet or mobile devices anywhere.

Payment plays an important role in the digital transformation process.

Those show that banks and payment intermediaries have taken full opportunities to promote the development of digital transformation.

If the banks and payment intermediaries have significant investments in technology, innovate technology and quickly deploy new digital applications, they will succeed in taking the most of the opportunities to develop digital payment.

What are your proposals to solve the current difficulties to accelerate the digital transformation in the fintech and banking sectors?

The Government has issued a national digital transformation programme by 2025 with a vision to 2030. The Government is willing to create policies so that the fintech companies can test the new technologies. 

In the payment sector, the State Bank has developed a new draft decree providing a controlled testing mechanism (sandbox) for fintech activities in the banking industry.

Currently, Việt Nam has 154 fintech companies, of which about 50 fintech companies are payment intermediaries managed by the State Bank. 

Fintech companies and banks hope this draft decree will be issued soon to protect their customers from risks in payment services.

For the draft of Decree 101 on non-cash payments, a law in the field of payment, the State Bank is compiling a draft on amending many items in this decree, including cross-border payments and banks' agencies.

If this draft is issued, I believe it will remove difficulties and create a basic legal corridor for consumer finance companies and banks to do business favourably while protecting consumers from risks.

VNS    LINK

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Henig:  Shares recover on strong buying force

February, 09/2023 - 05:17

Shares recovered on Wednesday thanks to strong buying force, bolstering many large-caps to grow.

HÀ NỘI Shares recovered on Wednesday thanks to strong buying force, bolstering many large-caps.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index rose 0.6 per cent to close the day at 1,072.22 points. The southern bourse’s index decreased 2.15 per cent on Tuesday.

Some 569.3 million shares were traded on the southern bourse, worth VNĐ10 trillion (US$423.7 million).

Market breadth was positive with 210 gainers and 188 losers.

According to Lê Đức Khánh, Director of Analysis - Director of Investment Capacity Development, VPS Securities Joint Stock Company, for the stock market, the most difficult period has passed when the VN-Index fell deeply from the peak.

However, in the current context, when interest rates are high, cash flow in the stock market is unlikely to return to the peak like in the 2020-2021 period. Accordingly, during this period and in the first half of 2023, the market is accumulating, causing small fluctuations.

The VN-30 Index, tracking the 30 biggest stocks on HoSE, rose 0.36 per cent to close at 1,073.38 points.

In the VN-30 basket, the biggest gainers included Hoà Phát Group (HPG), Bảo Việt Holdings (BVH), FPT Corporation (FPT), PetroVietnam Gas JSC (GAS), SSI Securities Inc (SSI), HD Bank (HDB), and Viet Nam International Commercial JS Bank (VIB).

Masan Group (MSN), Vietjet (VJC), Mobile World Group (MWG), Vinhomes (VHM) were among the losers.

In the banking group, most of the stocks moved up with gainers including Military Bank (MBB), Vietcombank (VCB), Saigon-Hanoi Commercial JS Bank (SHB), Tiên Phong Bank (TPB), Bank for Investment and Development of Việt Nam (BID), VietinBank (CTG) and Techcombank (TCB).

Energy stocks also performed positively with gainers such as PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling and Well Services Corporation (PVD) and Drilling Mud Joint Stock Corporation (PVC).

On the Hà Nội Stock Exchange, the HNX-Index gained 0.30 per cent to close at 210.62 points.

Trading value on the northern exchange reached VNĐ865 billion, with a trading volume of 61.5 million shares.

VNS  LINK

KTFA Members "News and Views" Thursday 2-9-2023

 KTFA:

Clare:  The Ministry of Foreign Affairs: The meetings of the Iraqi delegation in Washington aim to clarify the identity of Iraqi monetary policy

2/09/2023

Foreign Ministry spokesman Ahmed Al-Sahaf confirmed today, Thursday, that the meetings of the Iraqi delegation headed by Deputy Prime Minister and Minister of Foreign Affairs Fouad Hussein with US officials in Washington aim to clarify the identity of Iraqi monetary policy.

Al-Sahhaf told the official channel, followed by Mawazine News, that "the meetings of the Iraqi delegation in Washington aim to crystallize a vision with economic priorities and the importance of achieving fundamental approaches related to the identity of Iraqi monetary policy and clarifying this identity."

He added, "The Iraqi delegation's visit looks in depth to the fact that there are joint procedures between the two sides related to Iraqi monetary policy, and if we take participatory visions and go for ways to enhance coordination and cooperation, we will witness great support for the government's actions related to fixing a new exchange rate for the dollar and diversifying the sales gates, which is reflected in daily trading." .

He continued, "The meetings are consistent with the contents of the agreement between Baghdad and Washington, and will address the contents of partnership in the field of energy and supporting Iraq in various aspects, and the delegation stressed that Iraq desires multiple partnerships based on the idea of ​​diversifying the economic gates."   LINK

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Henig:  IMO: This headline is rather misleading. The US Congress is recognizing that Iraq is an ally and partner, so they're attempting to discontinue something that doesn't recognize Iraq as an ally and partner. The U.S. Congress is doing the right thing here.

Congress Movement to Withdraw 'Use of Force': Making Iraq an 'Enemy'

Today, 20:22 | Baghdad Today – Translation

A group of Democratic Party deputies in the US Congress submitted on Thursday a bill to withdraw the authorization of the "use of force in Iraq" within the powers of the US president, considering that the continuation of the authorization means that Iraq is "still an enemy."

A statement issued by the Democratic Party, translated by (Baghdad Today), said that "the representatives (Tim Cain, Todd Ing, Barbara Lee, Chip Roy, Abigail Spenberger, and Tim Cole) submitted a formal request to the US Congress, to end the urgent powers that authorized the US president during the years (1991-2002) to carry out military operations in Iraq, which is still continuing to remain authorized, so it must be withdrawn now," according to the statement.

The statement added that "the continuation of emergency powers for more than thirty years, worries the US legislator of the possibility of misuse in the future," and that "canceling them completely will represent American recognition of Iraq's full democratic sovereignty" and contribute to improving Washington's relationship with Baghdad."

Separately, Democratic Representative Todd Ying said that "Iraq today is a central ally and strategic partner of the United States, especially in the field of achieving security in the Middle East, but with the continuation of the emergency powers of war granted to the president, Iraq is still legally (an enemy of Washington)."   LINK

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Henig:   IMO: I'm posting this due to a rumor going around that there would be an internet blackout Iraq-wide to prevent all communications in or out in conjunction with the RI. This article states that it's for the expressed purpose of school exams--and would therefore be only until February 13, and only from 4am to 12pm.

Iraq bans social media until February 13

 February 8, 2023

 Baghdad (IraqiNews.com) – The Iraqi Ministry of Communications announced on Monday that social media websites are banned in Iraq until February 13.

“The ban will coincide with students’ exams, as it will continue until the February 13, except on Fridays,” the spokesperson of the Ministry of Communications, Omar Abdel-Razzaq, said.

Abdel-Razzaq explained that the ban times will be from 4 a.m. until 12 p.m., noting that the ban will include the most common social media websites and applications in the Iraqi society, which are Facebook, Telegram, WhatsApp, and Instagram.

Abdel-Razzaq elaborated that this decision was made in response to a request submitted by the Ministry of Education, and after the approval of higher authorities. He added that the Ministry of Communications is only the executing body for the ban process.  

The Iraqi Ministry of Education announced last Sunday the start of the exams of all educational stages for the academic year 2022-2023, where more than 200 thousand students are taking exams.

Many exams were leaked previously through social media in Iraq, which sparked controversy and caused resentment between the Iraqis.

Last year, following the leakage of mathematics and English exams for the intermediate stage, the Ministry of Education was forced to cancel the exams and postpone them for 10 days.

Last week, the Iraqi security announced the arrest of a network specialized in falsifying and altering exam papers in the capital, Baghdad.  LINK

Henig: High oil prices. Brent is close to $85 a barrel

 Time : 2023/02/08 22:19:57

 {Euphrates News} Oil prices continued, on Wednesday evening, their continuous rise for days, approaching $ 85 a barrel.

Brent crude futures were at $84.94 a barrel, closing yesterday at $83.69.

U.S. crude rose to $78.48 a barrel futures, which closed yesterday at $77.14.   LINK

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Henig:  A famous economist predicts the disappearance of the dollar... It determines the role of Saudi Arabia in this!

Economy News / Baghdad

The famous economist, Nouriel Roubini, warned of the decline of the US dollar due to the rise of the bipolar currency system as a global currency, saying in an economic article that the replacement of the Chinese renminbi may replace the US dollar due to a series of measures that the Chinese government has been implementing since the imposition of Corona restrictions.

Given the increasing use of the dollar for national security purposes, and the growing geopolitical rivalry between the West and other powers such as China, Russia, Iran and North Korea, rumors of dedollarization are accelerating, especially in light of the U.S. government's actions to use the dollar by its rivals through sanctions, which is one of the reasons for the emergence of the bipolar system in the next decade.

At the same time, the economist spoke of the false adoption of the dollar by economies in less developed countries that brings strong drawbacks, as the current system makes emerging market economies financially and economically vulnerable to changes in US monetary policy driven by domestic factors such as inflation.

Also, Nouriel Roubini stressed that Saudi Arabia has already settled some transactions using the Chinese renminbi and that this may prompt other countries in the region to follow this example, which in turn may lead to the replacement of the dollar.

In this context, the BRICS revealed that it is working to create its own currency, as a step to get rid of the influence of the United States and the International Monetary Fund on the economies of the countries of the group. The presidents of Argentina and Brazil also announced that they had started a common currency that would serve as a tool for settling payments between the Mercosur and BRICS countries. According to Roubini, the launch of CBDCs, and the increasing use of private payment apps such as Wechat in China, will also contribute to the replacement of the dollar.

It is noteworthy that the famous economist, Nouriel Roubini, said earlier that the global economy faces economic and non-economic risks, including concern about high inflation and recession in addition to stagflation, and that the continuous rise in interest rates will make the debt ratios of the private and government sectors unsustainable, which will lead to default, and there is a lot of talk about the decline of globalization and about protectionism and divisions in the global economy.    LINK

Some "Vietnam News" Posted by Henig at KTFA 2-8-2023

Vietnam:

Henig:  Positive signs for Vietnam’s labour market

07:00 | 08/02/2023

Vietnam will continue to be affected by a labour shortage in the first and second quarters of 2023, but the deficit is not great and is mainly present in labour-intensive sectors such as garments, leather, and some export-led industries, especially in foreign-invested enterprises.

In the meantime, there is a demand for about 350,000-400,000 highly skilled workers. As the economic situation is projected to continue improving, the labour market is expected to recover and the demand for workers will rise again.

According to the Ho Chi Minh City Human Resources Forecast and Labour Market Information Centre, nearly 70% of the demand for new workers in 2023 will come from the services sector, while the remaining 30% will come from industry and construction.

Regarding educational levels, the demand for workers with college and university degrees accounts for nearly 38%.

In 2023, enterprises will look for flexible candidates who can take on any new job, said employment experts, adding that employers will offer new benefits to their workers.

According to Minister of Labour, Invalids and Social Affairs Dao Ngoc Dung, Vietnam’s labour market is relatively stable now in terms of both size and quality and the shortage only affects some sectors.

Source: NDO    LINK

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Henig:  Despite decelerating, phone exports still have long-term prospects

February, 08/2023 - 09:11

Phones and components achieved an export turnover of US$57.9 billion last year, a year-on-year increase of only 0.8 per cent.

HÀ NỘI — The export of phones and components increased by less than 1 per cent year-on-year and is forecast to continue to face difficulties this year due to the impact of inflation in many countries around the world.

Phones and components achieved an export turnover of US$57.9 billion last year, a year-on-year increase of only 0.8 per cent, according to the latest data from the General Department of Customs.

Exports to China reached $16.26 billion, up 7.1 per cent; to the US reached $11.88 billion, up 22.5 per cent; to the EU reached $6.7 billion, down 15.1 per cent; to South Korea reached $5.05 billion, up 5.3 per cent.

The phone exports grew slowly in the last months of last year, when export orders declined sharply due to the impact of economic slowdown and inflation in many major import markets of the country such as the US, EU, and Japan.

Particularly in December, the export turnover of this item reached $3.1 billion, down 31.4 per cent from the previous month.

A report by HSBC said that after more than two years of booming trade, a period of "stagnation" has come to Vietnamese key export industries since the fourth quarter of last year.

Global orders fell sharply, affecting Asian exporters and Việt Nam was no exception.

Among the key export sectors of Việt Nam, including textiles, footwear, computers, furniture, mobile phone export has the largest influence.

Accounting for an increasingly large proportion (over 17 per cent) of the country's total export turnover, the growth of phones and components has a great influence on the overall export growth.

However, over 95 per cent of the export turnover of this product belongs to FDI enterprises.

HSBC pointed out that the reason for the decline in exports in the last month of last year came from the electronics sector, which accounts for about 35 per cent of Việt Nam's total export turnover.

New electronic orders in the world have begun to decline sharply from the second half of last year, affecting the consumer electronics sector more than industrial products.

The impact occurs on a large scale in the three main export destinations of Việt Nam, the US, China and Europe.

Exports are still facing "headwinds" in the first month of the new year and it is forecast that the drag on exports will at least last until the end of the second quarter.

The export turnover of phones reached US$4 billion last month, down 19.6 per cent over the same period.

Việt Nam was badly affected when global trade slowed, seeing its exports drop significantly for the first time compared to the past two years.

In particular, the decline stems from the economic downturn in the US, the largest export destination of Việt Nam, followed by the EU.

Although decelerating, in the medium and long term, the phone and component manufacturing industry is still "leading" in terms of exports, because up to now, this field has attracted a huge amount of FDI into production.

Samsung alone has accumulated capital in Việt Nam reaching $18.2 billion.

In recent years, the electronics and phone manufacturing industry has had many opportunities to welcome the investment wave from large technology corporations to move to Việt Nam.

A series of large outsourcing partners of Apple and LG such as Foxconn, Luxshare, GoerTek, and Compal all have factories located in Việt Nam or have relocated from China, creating an increasingly large production and supply capacity, making Việt Nam an important export address in the production chain of this industry on the global map.

The export turnover of the group of phones and components increased by 9.2 times from 2010 to 2013, becoming the group with the highest export value and this position has been maintained continuously since 2013.

When Việt Nam became the world's new production base, billions of dollars of FDI inflows from global corporations and businesses poured in, along with extensive opening and integration with the world through a system of free trade agreements (FTA), the export value of key manufacturing industries from phones and components increased every year.

In the two years of 2021 - 2022, although the economy was greatly affected by the COVID-19 pandemic, this group of goods still achieved a high and stable growth rate, and the export value continued to grow sharply, reaching $57.5 and $57.9 billion respectively, accounting for over 17 per cent of total export turnover.

— VNS    LINK

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Henig:  Bond market remains quiet this year: VCBS

February, 08/2023 - 09:12

The scale of debt in the corporate bond market is less than 15 per cent of GDP.

HÀ NỘI — The value of corporate bonds maturing in 2023 is estimated at VNĐ250 trillion, falling sharply compared to the third quarter of 2022.

The scale of debt in the corporate bond market is less than 15 per cent of GDP. Particularly, private corporate bonds make up 12.5 per cent of GDP, equivalent to VNĐ1.19 quadrillion, which is still a modest amount compared to other countries in the region and also far from the target set by 2025.

However, with the developments of the market last year, Vietcombank Securities Company (VCBS) said that professional bond investors were unlikely to return to the market this year.

The securities firm expected the size of the market to continue to shrink this year due to Decree 65's restrictions on new issuance and restructured issuance, and high new issuance costs. In addition, the volume of bonds bought back before maturity also reduces the market's overall size.

Other reasons are the medium-term maturity pressure on the market due to large maturity volume, low possibility of new issuance and existing interest rate uptrend.

According to VCBS estimates, the volume of corporate bonds maturing in 2023 is estimated at VNĐ250 trillion, a significant decrease compared to the third quarter of 2022 due to the proactive repurchase before maturity.

In particular, the acquisition value of the banking and real estate industries in the fourth quarter reached VNĐ35 trillion and VNĐ24 trillion, respectively.

However, the trend of repurchasing before maturity helps enterprises and issuers be more proactive in bond capital payment demand. The move also shows significant efforts to arrange capital, and reduce pressure on bond maturity in the near future.

Moreover, high interest rate base and low investors' confidence in the corporate bond market will make the market less appealing when considering risks and benefits.

For institutional investors, the investment demand for corporate bonds is also forecast to decrease as risk levels are expected to rise and the government bond investment channel has returned to an attractive valuation compared to many years ago, causing a fall in the competitiveness of the corporate bond channel.

In 2023, the inspection and supervision activities of issuing bonds in large quantities, without collateral, and using capital for improper purposes, will affect the offering and issuance listing and trading activities. And securities investment and stock market will still be boosted.

2023 is also the year to accelerate the restructuring activities of bonds that will be due soon.

In general, VCBS believes that the corporate bond market will continue to be in a quiet period with low liquidity.

— VNS   LINK

Henig:  Industrial production: Achievements and lessons

06:00 | 08/02/2023

(VEN) - The 2022 industrial output has been impressive, but continued innovation as well as production and supply network recovery are vital to ensure a more sustainable path in 2023.

Industrial output surge

According to the Ministry of Industry and Trade (MoIT), industrial production faced numerous challenges in 2022 owing to a rise in raw material and logistics costs, and a decline in global demand for some non-essential consumer goods, among other factors. Many other essential industries, however, are still blooming.

The industrial output index climbed by 8.6 percent in the first 11 months of 2022 compared to the same period last year, with the production index of several significant sectors experiencing a notable surge. Beverage production rose 31 percent; clothing, 16.4 percent; leather, 16.7 percent; drugs and pharmaceuticals, 17.5 percent; machinery and equipment, 16.3 percent; wood and bamboo made products, 18.4 percent; electrical equipment, 12.8 percent.

Electronic items, particularly mobile phones, contribute the most to Vietnam's total export value. Instead of only making mobile phones, Vietnam is expanding its supply chain and becoming more involved in the value chain.

On November 25, 2022, for the first time in history, VinFast transported 999 VF 8 electric cars to the United States, affirming the domestic auto industry’s production capability and product quality and its capacity to participate and compete in the global value chain.

Pham Tuan Anh, Deputy Director of the MoIT’s Industry Agency, said that in order to secure sufficient raw materials for production and consumption, his department was focused on removing bottlenecks and aiding enterprises in locating alternative sources at competitive costs.

(VEN) - The 2022 industrial output has been impressive, but continued innovation as well as production and supply network recovery are vital to ensure a more sustainable path in 2023.

Industrial output surge

According to the Ministry of Industry and Trade (MoIT), industrial production faced numerous challenges in 2022 owing to a rise in raw material and logistics costs, and a decline in global demand for some non-essential consumer goods, among other factors. Many other essential industries, however, are still blooming.

The industrial output index climbed by 8.6 percent in the first 11 months of 2022 compared to the same period last year, with the production index of several significant sectors experiencing a notable surge. Beverage production rose 31 percent; clothing, 16.4 percent; leather, 16.7 percent; drugs and pharmaceuticals, 17.5 percent; machinery and equipment, 16.3 percent; wood and bamboo made products, 18.4 percent; electrical equipment, 12.8 percent.

Electronic items, particularly mobile phones, contribute the most to Vietnam's total export value. Instead of only making mobile phones, Vietnam is expanding its supply chain and becoming more involved in the value chain.

On November 25, 2022, for the first time in history, VinFast transported 999 VF 8 electric cars to the United States, affirming the domestic auto industry’s production capability and product quality and its capacity to participate and compete in the global value chain.

Pham Tuan Anh, Deputy Director of the MoIT’s Industry Agency, said that in order to secure sufficient raw materials for production and consumption, his department was focused on removing bottlenecks and aiding enterprises in locating alternative sources at competitive costs.

In 2023, the Ministry of Industry and Trade will focus on developing human resources, speeding up the adoption of cutting-edge technologies, helping businesses through digital transformation, and fostering the growth of smart production in strategic, pioneering, and priority sectors.

Lan Anh    LINK