Deb Aspinwall 2/3/23 Deb Aspinwall 2/3/23

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

KTFA: Vietnam

Henig: Economic growth and market upgrade to draw capital

February, 02/2023 - 10:48

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

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

KTFA: Vietnam

Henig: Economic growth and market upgrade to draw capital

February, 02/2023 - 10:48

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

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

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

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

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

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

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

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

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

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

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

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

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

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

— VNS LINK

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

February, 02/2023 - 14:00

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

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

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

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

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

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

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

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

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

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

— VNS LINK

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

February, 03/2023 - 08:14

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

— VNS LINK

Henig: Bình Phước seeks to become modern industrial province

February, 03/2023 - 09:24

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

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

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

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

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

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

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

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

They are expected to create around 30,000 jobs.

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

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

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

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

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

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

— VNS LINK

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

February, 03/2023 - 06:23

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

VNS LINK

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

07:00 | 02/02/2023

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

Việt Nam's textile, garment and footwear sectors aim to achieve a total export value of US$77-80 billion in 2025 and $106-108 billion in 2030, according to the strategy for the development of Việt Nam's textile and footwear industry.
Under the development strategy approved by the Government, for the long term, the garment, textile, leather and footwear sectors are still key export industries of the economy.
Of which, the textile, garment, leather and footwear sectors continue to promote investment in the production of materials and auxiliary materials, as well as supporting industries.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: VNS LINK

Henig: Bình Phước seeks to become modern industrial province

February, 03/2023 - 09:24

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

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

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

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

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

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

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

They are expected to create around 30,000 jobs.

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

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

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

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

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

— VNS LINK

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

February, 03/2023 - 06:23

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

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

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

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

VNS LINK

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

07:00 | 02/02/2023

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

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

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

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

Source: VNS LINK

Deb Aspinwall 2/2/23 Deb Aspinwall 2/2/23

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

KTFA: Vietnam

Henig: Hanoi eyes 950 firms in support industries this year

06:00 | 02/02/2023

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

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

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

KTFA: Vietnam

Henig: Hanoi eyes 950 firms in support industries this year

06:00 | 02/02/2023

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

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

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

Source: VNA LINK

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Henig: Vietnam pursues green foreign trade

06:00 | 02/02/2023

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

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

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

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

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

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

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

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

What is your assessment of 2023 export prospects?

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

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

Phuong Lan LINK

Henig: Vietnamese university up 97 places in Webometrics ranking

10:00 | 02/02/2023

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

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

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

Source: VNA LINK

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

07:00 | 02/02/2023

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

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

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

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

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

Source: VNS LINK

Deb Aspinwall 2/1/23 Deb Aspinwall 2/1/23

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

KTFA: Vietnam:

Henig: Seeking driving force for 2023 economic growth

06:00 | 01/02/2023

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

Growth exceeds forecast

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

KTFA: Vietnam:

Henig: Seeking driving force for 2023 economic growth

06:00 | 01/02/2023

Growth exceeds forecast

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

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

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

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

Driving force for 2023 growth

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

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

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

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

Nguyen Hoa LINK

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Henig: Mong Cai international border gate busy after Tet holiday

10:52 | 01/02/2023

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

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

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

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

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

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

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

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

Source: VNA LINK

Henig: State-owned banks under capital increase pressure

10:52 | 01/02/2023

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

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

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

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

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

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

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

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

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

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

Source: VNS LINK

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Henig: Vietnam plans to attract Chinese tourists

07:00 | 01/02/2023

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

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

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

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

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

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

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

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

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

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

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

Source: en.baochinhphu.vn LINK

Deb Aspinwall 1/31/23 Deb Aspinwall 1/31/23

Tuesday "Vietnam News" Posted by Henig at KTFA 1-31-2023

KTFA: Vietnem:

Henig: Technology and telecommunications businesses benefit from digital economy

January, 31/2023 - 08:06

Even under the attraction of the field of telecommunications technology, mergers and acquisitions activities in this industry have been promoted.

HÀ NỘI — Technology and telecommunications businesses are expected to continue to benefit from the growth of the digital economy.

Even under the attraction of the field of telecommunications technology, mergers and acquisitions activities in this industry have been promoted.

Analyst Chu Đức Toàn from VNDirect Securities Joint Stock Company said the digital transformation revenue growth rate is expected to be up 18 per cent this year compared to last year and could double that of traditional IT services, showing great potential in the market.

KTFA: Vietnem:

Henig: Technology and telecommunications businesses benefit from digital economy

January, 31/2023 - 08:06

Even under the attraction of the field of telecommunications technology, mergers and acquisitions activities in this industry have been promoted.

HÀ NỘI — Technology and telecommunications businesses are expected to continue to benefit from the growth of the digital economy.

Even under the attraction of the field of telecommunications technology, mergers and acquisitions activities in this industry have been promoted.

Like the rest of the world, the Vietnamese economy is also undergoing digital transformation.

According to the National Digital Transformation Program to 2025, with a longer-term vision to 2030, Việt Nam's digital economy will account for 20 per cent of GDP by 2025.

Việt Nam has launched the "Make in Việt Nam 4.0" Program to prepare for the Fourth Industrial Revolution.

This programme will facilitate the development of new industries and encourage new policies, thinking and technologies in line with Industry 4.0 and ambitions towards the digital economy.

In the context of strong digital transformation, the Government, organisations and businesses in Việt Nam have actively received and participated in activities to catch up with the trend of the Fourth Industrial Revolution.

The government is promoting the development of the digital economy through a series of mechanisms and policies. These policies have recently been reinforced by the Prime Minister's Directive No 16/CT-TTg on strengthening the accessibility to the Fourth Industrial Revolution.

According to the e-Conomy SEA 2021 report by Google, Temasek and Bain, Việt Nam's digital economy is predicted to reach a value of US$52 billion by 2025, with a compound growth rate of 24 per cent and ranking third in Southeast Asia.

Việt Nam is also a pioneer in 5G technology. 5G network opens a new era for a series of technologies in Việt Nam, which is among the countries with the fastest internet growth globally.

According to Internet World Stats, internet subscribers have increased 343 times from 2000 to 2021.

The growth potential for fixed broadband internet in Việt Nam is still outstanding, with the coverage rate at about 21 subscribers/100 people, which is relatively low compared to the Southeast Asia average of 38 subscribers/100 people.

Việt Nam has become one of the pioneer countries to successfully set up phone calls on the 5G technology platform.

Cisco forecast that the number of 5G subscribers in Việt Nam will reach 6.3 million by 2025.

Moreover, the early deployment of 5G services could help Vietnamese mobile carriers increase revenue by $300 million annually starting in 2025.

Việt Nam may soon become one of the first Southeast Asian countries to launch a 5G network, with domestic telecommunications companies racing to develop the first national network (Viettel, Vinaphone, Mobifone).

With the advent of breakthrough 5G technology, technology firms face many opportunities to develop modern applications to diversify their products and services.

There is also a high demand in the data centre market in Việt Nam. The Vietnamese government's digitalisation trend has facilitated increased demand for data centres nationwide.

Moreover, converting enterprise data to the cloud platform drives the Vietnamese data market.

This has led to an increase in the application of data storage solutions, which will positively affect the market's growth.

In addition, the rising adoption of big data, the Internet of Things (IoT) and cloud-based technology solutions, among others, are expected to accelerate and drive market growth until 2026.

According to research and reporting firm Research And Markets (Ireland), Việt Nam's data centre market is forecast to grow at a compound rate of over 14.6 per cent until 2026.

With political and social stability, and few natural disasters like earthquakes, experts from VNDirect said that Việt Nam has the necessary characteristics to become a big data centre market in the region.

Toàn said that mergers and acquisitions (M&A) activities are promoted under the attraction of the technology sector.

In recent years in Việt Nam, the M&A market in the technology sector has been growing rapidly, especially in enterprises that own or invest in advanced technology and have a large customer database.

The difficult global economy opens up opportunities for businesses with large amounts of cash; despite widespread uncertainty, technology M&A activities are continued and fueled by strong private capital flows.

Although conditions in capital markets have tightened in the first half of last year, many businesses still have large amounts of cash ready to be disbursed.

Among the listed technology companies in Việt Nam, for example, FPT Joint Stock Company is an enterprise with abundant cash, and has actively carried out many M&A deals in the past two years.

— VNS LINK

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Henig: Vietnam posts trade surplus of 3.6 billion USD in January

10:03 | 31/01/2023

Despite decreases in both imports and exports, the country still enjoyed a trade surplus of 3.6 billion USD in the first month of 2023, according to the General Statistics Office (GSO).

The office reported that in the month, total import-export turnover reached 46.56 billion USD, down 17.3% over the previous month and 25% year on year, with exports dropping 21.3% to 25.08 billion USD, and imports falling 28.9% to 21.48 billion USD.

While the domestic sector saw a trade deficit of 1.04 billion USD, the foreign-invested sector (including crude oil) posted a surplus of 4.64 billion USD.

Experts attributed the result to the long New Year and Lunar New Year (Tet) holidays, which were all in January, reducing the number of working days. Last year, the Tet holiday fell in February.

The GSO reported that the manufacturing-processing sector earned the highest export revenue with 22.32 billion USD, accounting for 89% of the country’s total.

Meanwhile, there were three goods groups with imports of over 1 billion USD.

In January, the US remained the biggest importer of Vietnamese goods with a revenue of about 7.6 billion USD, while China was the biggest exporter to Vietnam with 8.1 billion USD.

The GSO held that many countries are facing the threat of inflation and economic recession, leading to reduction in global consumption, thus affecting Vietnam’s import-export activities.

Export activities showed signs of slowing down from the fourth quarter of 2022 with fewer orders, it said, adding that 2023 is likely to be a tough year for Vietnam’s import-export.

According to the Ministry of Industry and Trade (MoIT), Vietnam’s exports depend on many outside factors, but tax reduction from free trade agreements that Vietnam has joined and the strengthening of socio-economic recovery and development will motivate exports this year.

In 2023, the MoIT sets a target of a 6% rise in goods export revenue, with trade surplus maintained.

Source: VNA LINK

Henig: Việt Nam attracts $1.69 billion in foreign investment in January

January, 31/2023 - 08:57

One bright spot in January was that 153 new foreign-invested projects, valued at $1.2 billion granted licences, up 48.5 per cent in number and 3.1 times in value which was a signal to confirm the confidence of foreign investors in the investment environment of Việt Nam, the FIA said.

HÀ NỘI — Việt Nam lured US$1.69 billion worth of foreign investment in the first month of 2023, down 19.8 per cent year-on-year, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

One bright spot in January was that 153 new foreign-invested projects, valued at $1.2 billion, were granted licenses, up 48.5 per cent in number and 3.1 times in value, which was a signal to confirm the confidence of foreign investors in the investment environment of Việt Nam, the FIA said.

During the month, capital added in operating projects by foreign investors saw a yearly decline of 76 per cent to $306.3 million while their capital contributions and share purchases also declined 61 per cent year-on-year to over $174 million.

At the same time, disbursed capital also witnessed a decline of 16.3 per cent to an estimated $1.35 billion in the first month, the FIA said, adding that the processing and manufacturing industry saw $1.05 billion worth of foreign investment disbursed, making up 77.6 per cent of the total.

Since January saw two long holidays - New Year and Lunar New Year, the decrease recorded in registered foreign investment capital, or even disbursement, had not yet reflected the general trend of foreign investment capital flows to Việt Nam in 2023, according to the agency.

Projects related to wholesale, retail, and repair of automobiles and motorised vehicles accounted for the lion’s share of the total registered sum, at 54.1 per cent or $651.9 million. They were followed by those in the processing and manufacturing industry, which together registered $351.2 million in capital or equivalent to 29.1 per cent and those in other sectors at $202 million or 16.8 per cent.

Also in January, 28 foreign countries and territories invested in Việt Nam. Singapore was the largest with $767.6 million, followed by China with $198.2 million.

Meanwhile, Vietnamese investors poured $126.7 million into their projects overseas, increasing by 3.4 times against the same month in 2022.

Among three countries and territories receiving investment from Việt Nam, South Korea was the leading country with $125.1 million, accounting for 98.7 per cent of total investment capital; followed by Thailand ($1.5 million or 1.2 per cent); and Laos ($140,000 or 0.1 per cent).

Foreign investment bonanza

Việt Nam is expected to attract a lot of FDI this year due to its impressive economic performance in 2022, improved business climate and the advantages brought by the free trade agreements it has signed, experts said.

Đỗ Văn Sử, deputy director of the Department of Foreign Investment, said Việt Nam is likely to attract $36-38 billion worth of FDI in 2023.

South Korea, Japan and Taiwan (China) are expected to be among the main sources of investment as they continue to pump money into Southeast Asia.

Economist Lê Đăng Doanh said the country needs to further speed up administrative reforms, improve its investment environment and ensure policy stability.

Minister of Planning and Investment Nguyễn Chí Dũng said priority would be given to projects that use new and green technologies and have high added value.

Though there are admittedly still problems related to human resource quality, Việt Nam remains an appealing destination for foreign investors due to its supportive policies, he added.

A recent survey done by the Ministry of Planning and Investment found 76 per cent of enterprises saying they were satisfied with the Government’s support policies.

They were most satisfied with the VAT waiver and reduction policies, and those to stabilise gasoline prices, improve the work permit issuance process and customs clearance procedures, and support import- export and workers’ livelihoods.

To continue to attract foreign investment, Dũng said it is vital for Việt Nam to develop innovation and financial centres at the regional and international levels.

It is also important to stabilise the economy and improve infrastructure and the quality of human resources, he added.

Last year FDI was worth nearly $22.4 billion, according to the General Statistics Office.

Of the more than 100 nations and territories investing last year, Singapore topped with $6.46 billion, followed by South Korea ($4.88 billion) and Japan ($4.78 billion).

They invested in 54 provinces and cities of which HCM City attracted the most: $3.94 billion.

Bình Dương was second with $3.14 billion and Quảng Ninh was third with $2.37 billion.

— VNS LINK

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Henig: Foreign suppliers have paid taxes worth $76.7 million via official portal

January, 31/2023 - 08:38

The General Department of Taxation’s portal https://etaxvn.gdt.gov.vn/nccnn/Reques was exclusively developed for foreign suppliers and put in place on March 21 last year.

HÀ NỘI — Foreign suppliers have paid taxes worth VNĐ1.8 trillion (US$76.7 million) via the official portal serving their operations in Việt Nam.

Of the sum, Meta (Facebook) contributed 34.5 million EUR, Google $28.8 million, and Apple VNĐ174 billion.

The General Department of Taxation’s portal https://etaxvn.gdt.gov.vn/nccnn/Reques was exclusively developed for foreign suppliers and put in place on March 21 last year.

So far, it has seen 45 suppliers registering and paying taxes.

The General Department of Taxation said that this was a very good signal in the co-ordination of tax declaration and collection between Vietnamese tax authorities and foreign suppliers right from the beginning of the new year.

This shows the trust, prestige and serious observance of tax laws by foreign suppliers for e-commerce and digital-based business activities in the territory of Việt Nam.

The total tax collected through the electronic portal for foreign suppliers is VNĐ3.4 trillion as of the end of last year.

Notably, six suppliers including Google, Facebook, Microsoft, TikTok, Netflix, and Apple - the units that hold the majority of market share in e-commerce service revenue doing business on cross-border digital platforms in Việt Nam – have registered, declared and paid tax in Việt Nam.

However, besides the above figures, tax administration for e-commerce activities and business on digital platforms still faces many challenges for the tax industry.

— VNS LINK

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Henig: PM inspects national key transport projects

09:36 | 31/01/2023

The first phase of the 652.86km North-South Expressway has 11 component projects, three of which are invested in public-private partnerships (PPP). The rest, including the Mai Sơn-National Highway 45 project, are funded with public investment.

Prime Minister Phạm Minh Chính has asked the ministries, agencies, localities and investors of several national key transport projects to hasten their implementation without sacrificing quality.

PM made the request while inspecting the Mai Sơn-National Highway 45 project, which passes through the northern Ninh Bình Province and is a part of the North-South Expressway.

The Mai Sơn-National Highway 45 section has a total length of 63.37km and an investment of VNĐ12.11 trillion (US$561.03 million). Its construction started in September 2020 and is scheduled for completion on April 30, 2023. So far, 83.7 per cent of all workload has been finished.

PM Chính took the occasion to pay New Year's visits to workers in construction sites along the route and relocated residents at the resettlement area in Đông Minh Commune, Đông Sơn District of central Thanh Hoá Province.

He later moved on to examine the Diễn Châu-Bãi Vọt project, another component of the North-South Expressway, which connects Nghệ An and Hà Tĩnh provinces.

The PM held a working session with relevant ministries, sectors and localities implementing the North-South Expressway component projects in the first and second phases.

On Sunday, PM Chính asked the southern province of Đồng Nai to complete the handover of cleared ground for the first-stage construction of Long Thành International Airport by the end of this first quarter.

During a working session with ministries, agencies, localities and stakeholders of the project, after making a fact-finding trip earlier the same day to the construction site, he assigned them responsibility for the work under their watch and solving existing issues.

The Government has directed the establishment of a working group led by Deputy Prime Minister Trần Hồng Hà to oversee and speed up the project, PM Chính revealed.

He requested the investor to make a specific plan for each item at a specific time while supervising the implementation of the tasks. Local authorities must focus on handling the site clearance work, accelerating progress while ensuring the quality of the project, and avoiding dividing bidding packages.

By the end of the first quarter of 2023, the entire site for the first phase must be handed over for the project's construction. By the end of the second quarter of this year, he said the site for construction of the logistics road and the access road to the airport must be ready.

Covering a total area of more than 5,580ha, the Long Thành International Airport will spread across six communes in the Long Thành District in Đồng Nai Province. The airport’s total investment is VNĐ336.63 trillion ($14.6 billion), with construction divided into three phases.

In the first phase, a runway and one passenger terminal, along with other supporting facilities, will be built at a cost of VNĐ109.112 trillion to serve 25 million passengers and 1.2 million tonnes of cargo each year.

The project started in 2021. Once fully completed by 2050, the airport will be able to handle 100 million passengers and 5 million tonnes of cargo annually.

Located 40km east of HCM City, the airport is expected to relieve overloading at Tân Sơn Nhất International Airport in the southern metropolis, now the country’s largest airport.

PM Chính and the delegation also visited the resettlement area for those who are affected by the project in Lộc An and Bình Sơn communes in Long Thành District. The resettlement area has an area of 280ha, giving accommodation for 7,000 households. Currently, about 1,500 households are living in the area.

Source: VNS LINK

Deb Aspinwall 1/30/23 Deb Aspinwall 1/30/23

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

KTFA: Vietnam

Henig: Tourism is back, big time

06:00 | 30/01/2023

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

Rebound in foreign visitors

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

KTFA: Vietnam

Henig: Tourism is back, big time

06:00 | 30/01/2023

Rebound in foreign visitors

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

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

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

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

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

“Live fully in Vietnam”

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

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

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

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

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

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

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

Thanh Tam LINK

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

09:23 | 30/01/2023

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

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

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

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

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

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

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

Source: baochinhphu.vn LINK

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

07:00 | 30/01/2023

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

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

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

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

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

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

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

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

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

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

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

VNA LINK

Deb Aspinwall 1/29/23 Deb Aspinwall 1/29/23

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

KTFA: Vietnam

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

January, 29/2023 - 12:44

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

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

KTFA: Vietnam

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

January, 29/2023 - 12:44

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

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

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

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

— VNS LINK

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

January, 28/2023 - 09:14

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

— VNS LINK

Henig: Binh Lieu mountain region powers up

06:00 | 28/01/2023

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

Investments in infrastructure

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

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

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

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

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

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

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

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

Son Ky LINK

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Henig: Trang A Chu’s unique homestay

06:00 | 29/01/2023

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

Tough beginnings

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

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

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

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

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

Spreading enthusiasm

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

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

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

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

Lan Anh & Quynh Nga LINK

Deb Aspinwall 1/28/23 Deb Aspinwall 1/28/23

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

KTFA: Vietnam

Henig: Toyota joins hands with local auto supporting industry firms

January, 28/2023 - 09:04

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

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

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

KTFA: Vietnam

Henig: Toyota joins hands with local auto supporting industry firms

January, 28/2023 - 09:04

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

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

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

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

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

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

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

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

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

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

— VNS LINK

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Henig: Outstanding loan falls sharply in Q4

January, 28/2023 - 08:37

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

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

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

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

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

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

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

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

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

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

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

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

VNS LINK

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

January, 28/2023 - 10:05

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

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

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

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

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

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

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

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

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

— VNS LINK

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Henig: Retail market predicted to recover in 2023

January, 28/2023 - 09:06

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

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

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

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

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

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

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

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

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

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

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

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

— VNS LINK

Deb Aspinwall 1/27/23 Deb Aspinwall 1/27/23

Some "Vietnam News" Posted by Henig at KTFA 1-27-2023

Vietnam

Henig: Positive prospects for Việt Nam stock market this year

January, 27/2023 - 09:03

In some months in 2022, half a million trading accounts were opened. Foreign investors’ net purchases reached a record high. The liquidity of some shares at times reached hundreds of millions of units each trading session.

HÀ NỘI — The market's uptrend will continue to be consolidated in the first trading session of the Year of Cat.

Indices recorded a new high and closed above the resistance area of 1,100 points of VN-Index, equivalent to 1,120 points of the VN30-Index. Although cash flow has not improved much, supply pressure has not put great pressure on the market.

Vietnam

Henig: Positive prospects for Việt Nam stock market this year

January, 27/2023 - 09:03

HÀ NỘI — The market's uptrend will continue to be consolidated in the first trading session of the Year of Cat.

The market is expected to continue to be supported and gain points in the next trading sessions. Therefore, investors can still expect the market's ability to expand the uptrend and exploit some short-term opportunities in stocks with positive accumulation background, said Việt Dragon Securities Co.

The market continued to record new highs and surpassed the resistance zone of 1,100 points of the VN-Index in the last trading week.

2022 was an eventful year for the Vietnamese stock market with many records set.

After a prosperous 2021, the VN-Index continued to stay at its historic peak for the first three months of 2022. However, the market then declined, putting itself on the list of markets with the sharpest decreases in the world. As of December 27, the VN-Index had dropped to 1,004.57 points, or 34.2 per cent lower than the 1,520-point gained in April.

In November and December, the market witnessed the strongest recovery sessions in the world.

In 2023, economic growth will be somewhat slower than the previous year. Some pressure from tight monetary policy in the world will make money flow into the stock market more difficult, said Lã Giang Trung, CEO of Passion Investment Co.

He added: “Two major factors affecting the stock market in 2023 are cash flow and the process of restructuring and shifting resources of the economy. If interest rates continue to rise sharply, the stock market will face difficulties, whereas when interest rates cool down, it can help the market grow.

“I am quite optimistic about the picture of the stock market in 2023. The first three to six months of the year will be a period of continued difficulties. But when the difficulties are over, the monetary policy will start to be loosen, which will open a new cycle for the stock market. Then the market will easily conquer new height in the following years.”

There are two scenarios for the stock market in 2023. Firstly, the bottom of the VN-Index this year will not be lower than the level of 873 points set in 2022, and the market will go up gradually.

Secondly, the VN-Index will look for a new bottom before recovering at the end of the year. The market may fall to the old bottom of about 780-800 points, this possibility becomes real if the US economy falls into a sharp recession in 2023.

With the forecast that monetary policy will be eased soon in the second quarter of 2023, the market can increase by 50 per cent from the bottom, equivalent to 1,200 points at the end of this year. In 2023, there may be quite big fluctuations, but the general trend towards the end of the year is still positive, Trung said.

— VNS LINK

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Henig: Government lays down Resolution No.01

January, 27/2023 - 08:07

The resolution highlights the need to attract high-quality foreign direct investment (FDI) flows, especially those into the semiconductor industry, and encourage projects implemented under Public-Private Partnerships.

HÀ NỘI — The Government has recently brought Resolution No.01 into force, which centres around economic, fiscal, and legal plans to move Việt Nam up in the global competitive rankings this year.

One of the resolution's key objectives involves macro-economic stability, fast economic growth and low inflation.

To achieve the objective, policymakers are required to keep a close watch on price fluctuations, domestically and globally, to quickly respond to inflationary shocks.

They are also required to step up tax reforms to improve collection and put an end to fraud. The continuation of tax cuts is among the fiscal possibilities that would be employed to support the economy this year.

As the objective hinges on the stability of the monetary, corporate bond, securities, and realty markets, the resolution also requires stricter supervision of financial institutions in those markets to ensure their robust operation.

"Push ahead with the scheme to reorganise credit institutions and settle bad debts between 2021 and 2025 to guarantee their stable operation," said the resolution.

It also highlights the need to attract high-quality foreign direct investment (FDI) flows, especially those into the semiconductor industry, and encourage projects implemented under Public-Private Partnerships.

Trade promotion is another must-do to achieve the objective. The resolution underlines trade matching, e-commerce, e-transaction, and free trade agreements as the catalysts for better commercial performance.

"The prices of goods and services under the State management, including electricity and fuels, need to be managed in a more open and transparent manner to keep the price levels in check," the resolution stated.

Curbing the COVID-19 pandemic is another objective on the agenda, which calls for new preventive measures and the development of domestically-produced medications for COVID-19 treatment.

The resolution also highlights the importance of international cooperation and foreign aid in the fight against the virus.

The next objective involves institutional improvement, law enforcement, and crackdowns on corruption.

To this end, the law-making process needs to be accelerated, in pace with what has been laid out in the National Assembly's guidelines on law-making for 2023, to ensure the timely enactment of important legal documents, especially those regulating the business environment.

"The step of inviting stakeholders to comment on the latest drafted version of the Law on Land should be done in a manner that ensures every single voice is heard," said the resolution.

Fighting against corruption, according to the resolution, demands a hands-off approach to administration, higher accountability of public leaders, and keeping power in check.

Those notions will be elaborated in the National Strategy to Combat Corruption until 2030 and the Scheme to Observe UN Convention against Corruption. A National Database on Personal Income is also under development to add to the corruption-preventive effort.

Achieving the objective requires the acceleration of administrative reform and digital transformation, the improvement of national competitiveness, and the development of e-government.

Additionally, the number of civil servants is planned to decrease by 5 per cent in 2026, and that of public employees by 10 per cent to streamline public agencies.

The resolution stresses the need for digital systems that facilitate public administration, including a national portal that provides public services to firms and individuals.

"As data creates value, 2023 will be designated as the Year of National Digital Data," said the resolution.

The fourth objective is to streamline the economy by improving national productivity, resilience, adaptability, and competitiveness.

Achieving the objective requires tougher measures to step up the delivery of public money, especially the money to critical projects that would act as the engine of growth in 2023 and also requires the Government to double down on its effort to restructure State-owned enterprises, handling those that run unprofitably and canceling inefficient investments.

Achieving the objective also calls for the restructuring of the digital sector and the deeper involvement of local firms in global supply chains. The contribution of the digital economy to gross domestic product (GDP) is aimed to reach around 15.5 per cent by 2023.

The next objective revolves around infrastructure upgrades, environmental protection, and the efficient use of natural resources.

The construction of critical projects, which is instrumental in achieving the objective, will be expedited to complete on schedule. Of the projects, Mỹ Thuận - Cần Thơ Highway, Mai Sơn - National Road 45 Segment, and Vĩnh Hảo - Phan Thiết Segment are among the projects expected to launch this year.

Another item on the to-do list is to remove the obstacles in the way of key power facilities, including Thái Bình 2 Thermal Power Plant and Vân Phong 2 Power Plant, to get them operational in 2023.

Environmental protection, one pillar of the objective, exposes the need for higher bars on waste disposal and garbage classification, which can be achieved by imposing heavy penalties for environmental infringement and the construction of interprovincial waste treatment facilities. —

VNS LINK

Henig: Hải Phòng aims to become an international logistics centre

January, 26/2023 - 10:35

This northern city is developing a service sector development project for 2030, with a long-term vision to 2045, including logistics services.

HÀ NỘI — Hải Phòng aims to become a regional and international logistics centre due to its many advantages as a transportation hub for all five types of traffic, including sea, road, air, railway, and inland waterways.

This objective is highlighted in the northern city's service sector development project for 2030, with a long-term vision to 2045, including logistics services.

The city is also studying to develop a project to establish a free trade zone, considered a breakthrough solution to exploit the best advantages in the logistics sector of Hải Phòng.

The Politburo's Resolution 45 on building and development of Hải Phòng City by 2030, with a vision to 2045 also states that Hải Phòng must be built into a national logistics service centre by 2025.

"By 2030, it will become a modern international logistics service centre with sea, air, highway and high-speed rail".

According to former Secretary of the Hải Phòng City Party Committee Trần Lưu Quang who has been appointed to the Government's Deputy Prime Minister, to develop logistics services, Hải Phòng will promote administrative reform and digital transformation in the field of seaports and logistics.

It will strengthen investment attraction and trade promotion, and form logistics service chains with high added value and regional linkages.

According to the Ministry of Industry and Trade, Hải Phòng has great advantages in infrastructure of seaports, fishing ports, warehouses for industrial production, and import and export activities of goods.

At the same time, some of 14 industrial parks (IPs) are built on the basis of logistics services to increase connectivity among enterprises at the supply chains.

In the past, Hải Phòng has focused on investing and upgrading seaport infrastructure in line with the development trend of regional and international shipping. Its transport system is improved and more synchronous.

Many projects on developing logistics centres in industrial zones and economic zones (EZs) have also received licences of investment, such as a logistics centre invested by KM Cargo Services Hải Phòng Co, Ltd with a capital of VNĐ34.8 billion; a logistics project with total investment capital of US$35 million developed by ECPVN Hải Phòng 1; JD Property Logistics Park Hải Phòng 1 project in the non-tariff zone and Nam Đình Vũ Industrial Park with a total investment of $32 million. Those have created new opportunities for the logistics service industry in Hải Phòng.

Quang said that in 2022, traditional and advantageous service sectors such as seaport and logistics services have made strong developments. They have actively contributed to the socio-economic development of Hải Phòng and the northern key economic region.

Hải Phòng's growth rate of logistics services is about 20-23 per cent per year and this sector has accounted for 13-15 per cent of the city's GRDP.

The volume of goods through the ports in the city has grown strongly, accounting for a large market share in the seaport system of the country.

Pointing to the service's shortcomings, Đan Đức Hiệp, former deputy chairman of Hải Phòng City People's Committee, said that Hải Phòng has about 1,000 enterprises registering to provide logistics services, but they have limited competitiveness and a low market share.

The majority of cargo volume via Hải Phòng seaport continues to be transported by road, putting great pressure on the transport system.

Meanwhile, transporting goods by rail and inland waterway is still weak.

There is also the problem of labour shortage, especially high-quality labour. Logistics and production enterprises of Hải Phòng are always in a serious shortage, especially logistics sales staff, logistics information technology staff, and staff coordinating transportation and warehouse operations.

At the same time, most employees of enterprises lack logistics knowledge and skills. This will be a big challenge for the development of the service in the future.

According to forecasts, Hải Phòng needs about 369,000 logistics workers by 2025, including 252,600 trained workers. By 2030, this number will increase to 460,000 employees, including 368,000 trained workers.

Human resources for the logistics sector in Việt Nam in general and Hải Phòng in particular will still lack in both quality and quantity for many years in the future. The human resource at present meets only about 40-45 per cent of the industry's needs.

Therefore, Hải Phòng needs to have a strategy on sustainable development of human resources for the logistics sector, Hiệp said.

— VNS LINK

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Henig: Chau Ma brocade lives on

06:00 | 27/01/2023

(VEN) - The indigenous textile products of the Chau Ma ethnic group reflect experiences, religious beliefs, skillful techniques and an enduring passion for the traditional craft practiced for generations in the Central Highlands province of Lam Dong.

Distinctive weaving technique

“The technique of placing patterns directly on the fabric helps Chau Ma women unleash their creativity, for example by embroidering geometric, plants and animal patterns, or life changes over time,” said Cat Tien Brocade Cooperative Director Tran Duc Thang. “In particular, the use of outstanding and flexible colors is also a factor that creates a distinctive attraction for the Chau Ma textiles.”

Indeed, with contrasting colors and unique patterns, Chau Ma’s displayed products drew special attention at the Art of Indigenous Weaving Exhibition held in early December 2022 in Hanoi.

Even though the loom is simple with only a frame of 12 wooden and bamboo sticks, the Chau Ma people have created brocade fabric with vivid patterns and eye-catching colors.

The Chau Ma women sit on the floor with their legs straightened to hold the loom and stretch the weaving fibers. “It’s really tiring but you get used to it if you do for a long time,” said Dieu Thi Moc of the Chau Ma ethnic group. When girls turn nine or 10, their grandmothers and mothers teach them brocade weaving.

Preserving culture

Tran Tuyet Lan, general director of Craft Link, a Vietnamese not – for – profit fair trade organization, said the Chau Ma have traditionally grown cotton and dyed yarn with natural materials, for example, black from the Neiru tree, yellow from the Mut tree, and red from the Bosil bark. The colors used to set the pattern are usually black, red, yellow, blue, dark indigo, and more recently, new colors like orange and green have been added.

Machine weaving is a major challenge for traditional brocade products of ethnic groups. However, Cat Tien Brocade Cooperative Director Tran Duc Thang affirmed, industrial machines cannot imitate or replace the traditional handmade products. For example, the Chau Ma use 100 percent cotton yarn, which no machine can use. The handmade production also ensures that each cloth is unique, reflecting each weaver’s craftsmanship, emotions, beliefs and life experiences, which cannot be replicated by machines.

With the support of Craft Link, Chau Ma brocade products have become more popular and suitable to the tastes and needs of domestic and foreign consumers, helping gradually improve the livelihood of the minority.

Thanks to product marketing, Chau Ma women have been participating in community activities and have become more proactive and confident in communication. The distinctive culture hidden in each brocade product has been preserved, developed and will spread strongly in the future.

In 2000, Craft Link collaborated with non-governmental organizations to run a training project to preserve and develop the indigenous weaving profession of the Chau Ma, and provided them with management skills as well as reading and writing ability.

Viet Nga LINK

Deb Aspinwall 1/26/23 Deb Aspinwall 1/26/23

"Iraq and Vietnam News" posted by Henig at KTFA Thursday 1-26-2023

KTFA:

Henig: The Anti-Corruption Committee arrests the director of contracts and projects in Anbar Governorate

January 25, 2023

Baghdad / Obelisk: The Anti-Corruption Committee executed, on Wednesday, a judicial order and arrested the director of contracts and projects in Anbar Governorate, Anwar Al-Alwani.

A source told Al-Masalla that the intelligence partnered with the Anti-Corruption Committee and carried out the arrest warrant.

In the context, political analyst Azhar Shalal said that Anwar Al-Alwani is the owner of the largest corruption files and gambled with project funds looted from the Anbaris' sustenance.

Shalal added that he owns billions, all of which were stolen from the province's projects. LINK

KTFA:

Henig: The Anti-Corruption Committee arrests the director of contracts and projects in Anbar Governorate

January 25, 2023

Baghdad / Obelisk: The Anti-Corruption Committee executed, on Wednesday, a judicial order and arrested the director of contracts and projects in Anbar Governorate, Anwar Al-Alwani.

A source told Al-Masalla that the intelligence partnered with the Anti-Corruption Committee and carried out the arrest warrant.

In the context, political analyst Azhar Shalal said that Anwar Al-Alwani is the owner of the largest corruption files and gambled with project funds looted from the Anbaris' sustenance.

Shalal added that he owns billions, all of which were stolen from the province's projects. LINK

Henig: Traders are beginning to implement an initiative that may end the dollar crisis in Iraq

|Today, 17:17 | Baghdad today-Baghdad

Today, Wednesday, the Diyala Chamber of Commerce revealed the existence of a "timid initiative" initiated by some merchants that may save Iraq from the dollar crisis.

The head of the Diyala Chamber of Commerce, Muhammad Mulla Jawad, said in an interview with (Baghdad Today), that "the dollar crisis is hitting the Iraqi markets hard, as it is an influential factor in determining the prices of about 90% of imported goods and materials directly, and it also pushes to suffocate the poor and the simple through Raising the prices of basic commodities, including food.

He added, "According to the information, there is a shy initiative adopted by some merchants to pay the costs of goods imported from neighboring countries in national currencies away from the influence and dominance of the US dollar," pointing out that "what happened, although it is very limited, but it may constitute a light at the end of the tunnel for a worthy strategy." The study by the Sudanese government by establishing mechanisms for the use of national currencies in import and export with neighboring countries according to fixed mechanisms.

He pointed out that "the adoption of national currencies will reduce the demand for the dollar by a very large percentage and push us to get out of its crises and its pressure on the markets," pointing to "the need to study this proposal and put it in legal contexts because the pressures that Baghdad is suffering because of the dollar are the same that are present in the capitals." other countries". LINK

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Henig: The Iraqi dinar tops the Arab currencies facing heavy losses against the dollar

|Today, 19:24 |

Baghdad today - follow-up

Today, Wednesday, a press report revealed that the Iraqi dinar topped 6 Arab currencies facing heavy losses against the dollar.

And a report followed by (Baghdad Today) stated that “six Arab currencies are facing severe losses against the US dollar. Observers’ expectations indicate that the main interest rate of the Federal Reserve Bank (the US central bank) may exceed five percent annually at the present time. But US lawmakers have begun to move More cautiously, after signs that the country's biggest inflation in decades was beginning to abate, they agreed to raise the central bank's interest rate by half a percentage point, pushing the target range for the Fed's benchmark interest rate up from 4.25 percent to 4.5 percent, higher. Average over 15 years, but this increase was less than what was announced in the recent period.

He added, "The world is closely watching the movements of the US Central Bank, as the United States is leading a global shift towards raising borrowing costs after years of low interest rates that followed the financial crisis, but Federal Reserve Chairman Jerome Powell said that the next increase in interest rates," It's still a significant increase historically and we still have a long way to go."

He continued, "In terms of losing Arab currencies against the dollar, and according to a statistic prepared by The Independent Arabia, followed by (Baghdad Today), the Iraqi dinar came at the top of the list. According to the data, the exchange rate of the dollar in the Iraqi market jumped by 10,890 percent, after the price of the dollar rose. The exchange of the dollar from the level of 1475 dinars at the beginning of 2022 to about 164,100 dinars at the present time, so that the US dollar gained about 160,615 dinars.

And he stated, “In second place, we find the Tunisian dinar, after the exchange rate of the US dollar jumped by 132.3 percent, as the exchange rate of the US green paper jumped from the level of 1.33 dinars at the beginning of last year, to about 3.09 dinars at the present time, so that the US dollar gained about 1.76.” Dinar".

He explained that "the Yemeni riyal came in third place after the exchange rate of the US dollar increased by 106.4 percent, after its price jumped from the level of 599 riyals at the beginning of 2022, to about 1236 riyals at the beginning of this year, so that the US dollar gained about 637 riyals." Until, “In fourth place, the Egyptian pound came after the exchange rate of the US dollar in the Egyptian market jumped by 89.45 percent. The exchange rate rose from the level of 15.74 pounds during the first quarter of last year, to about 29.95 pounds at the present time, to win the US dollar.” About 14.08 pounds.

He pointed out that "the Syrian pound came in fifth place, as the exchange rate of the dollar jumped during the last year's trading, by 85 percent. According to the data, the dollar exchange rate jumped from the level of 3,590 Syrian pounds at the beginning of last year, to about 6,640 pounds at the time." The current one, so that the American green paper will win about 3050 pounds.

While “the Lebanese pound came in sixth place after the exchange rate of the dollar rose by 27 percent. At the beginning of last year, the dollar was trading in the Lebanese market at the level of 40,000 pounds, but it jumped to the level of 50,800 pounds at the present time, so that the US dollar gained about 10,800 lira.

The US Central Bank will continue to raise interest rates

In a recent research note, global economist Mohamed El-Erian said, "The Federal Reserve should raise interest rates by more than market expectations during its next meeting, with concern about a halt to the downward trend in inflation in the coming months." "Personally, I prefer a 50 basis point rate hike, because I think inflation will be stuck near four percent by the middle of this year," Allianz chief economic advisor added.

Most financial market expectations indicate that the Federal Reserve will raise interest rates by 25 basis points at its scheduled meeting on January 31 and February 1. The US Central Bank had reduced the rate of interest rate hikes at the last December meeting by about 50 basis points, after 4 consecutive increases by 75 basis points, to reach the range of 4.25 percent and 4.5 percent now.

El-Erian noted, "The Fed still faces a credibility problem, with the fact that market pricing of the monetary policy path runs counter to the Fed's larger message that it still has a lot of work to do to reach its inflation target of around 2 percent." LINK

Vietnam:

Henig: Bathing in coriander-filled water

25/01/2023

(VEN) - Boiling coriander and bathing in its fragrant water is a ritual cleansing for the Lunar New Year, which is believed to drown the misfortunates and impurities of the past.

Bathing in coriander-filled water is believed to wash off all unclean and impure acts and thoughts and is usually done on the last day of the old lunar year.

The plant is grown in medium to heavy soil. It can be harvested easily by hand without the need for tools. Harvesting is usually done on the last several days of the old lunar year.

Coriander is also highly valued in traditional medicine. According to the Oriental Medicine Association, coriander stems and seeds are medicinal herbs. The seeds are spicy, and bathing in mature coriander plants provides relief from colds. It also detoxes the body and prevents and cures measles.

Coriander cultivation has become a sustainable livelihood for people in a number of localities in the Hanoi suburbs, including Duong Xa, Kim Son, Le Chi, and Duong Quang communes in Gia Lam District, and Kim An Commune in Thanh Oai District, and elsewhere.

Le Thi Hieu, a farmer from Hoach An Village in Thanh Oai District’s Kim An Commune said that about five days before Tet, everyone in her family is busy with harvesting old coriander trees for sale, and her family’s 360sq.m. coriander garden has annually brought in significant revenue.

Another farmer, Nguyen Van Thanh, said villagers have replaced corn and some other crops with coriander, and each coriander crop lasts for two months and provides a sustainable income. Thanh said his family has been growing coriander for eight years, starting with a cultivated area of several hundred square meters, which has so far been expanded to more than 10,000sq.m.

The largest coriander flower garden in Vietnam is found in Tan Son Village in Thach Son Commune of Thanh Hoa Province’s Thach Thanh District. The 4-hectare field is the raw material growing area of the Befine company, an essential oil producer.

The health benefits of coriander may include its use in the treatment of skin inflammation, high cholesterol levels, diarrhea, mouth ulcers, anemia, and indigestion. The plant can also come handy for menstrual disorders, smallpox, conjunctivitis, skin disorders, and blood sugar disorders, while also benefiting eyesight.

Thanh Tam LINK

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Henig: Almost 3,000 tonnes of farm produce exported to China via Lạng Sơn's border gates

January, 25/2023 - 13:26

This year, the customs clearance of agricultural products at Lạng Sơn's border gates began earlier than in previous years, showing that China's demand for those products is increasing after the COVID-19 pandemic period.

HÀ NỘI - Exports of agricultural and fruit products, mainly dragon fruit and mango, reached almost 2,700 tonnes to China through Lạng Sơn Province border gates on January 24, the third day of the Lunar New Year.

They were the first farm produce exported to China via the Hữu Nghị border gate in the new lunar year.

"On this Tết holiday, we arrange for officers to be on duty at customs lines, ensuring that goods are exported and imported in a convenient and fast way," said Trần Văn Nghĩa, deputy head of the Customs Office at the Hữu Nghị border gate, Lạng Sơn.

According to the notice at the border gates of Lạng Sơn Province, import and export goods registered before the start of the Lunar New Year festival would be cleared from January 24-27. Normal procedures at the border gates will resume from January 28.

VNS LINK

Deb Aspinwall 1/25/23 Deb Aspinwall 1/25/23

"Vietnam News" posted by Henig at KTFA Wednesday 1-25-2023

KTFA: Vietnam

Henig: HCM City dwellers benefit from digital transformation

January, 25/2023 - 10:14

Thanks to adapting to digital transformation trends, residents in HCM City are increasingly enjoying technological conveniences in many aspects of life.

HCM CITY — Thanks to adapting to digital transformation trends, residents in HCM City are increasingly enjoying technological conveniences in many aspects of life.

Nguyễn Văn Tuấn, 52, a rental house owner in District 3, told Sài Gòn Giải Phóng (Liberated Sài Gòn) newspaper that he went to the police headquarters of Ward 12 to submit an application for temporary residence registration for a tenant.

After receiving his application, the ward officer guided him about the registration of a national public service account to submit online documents for the next time.

KTFA: Vietnam

Henig: HCM City dwellers benefit from digital transformation

January, 25/2023 - 10:14

Thanks to adapting to digital transformation trends, residents in HCM City are increasingly enjoying technological conveniences in many aspects of life.

HCM CITY — Thanks to adapting to digital transformation trends, residents in HCM City are increasingly enjoying technological conveniences in many aspects of life.

After receiving his application, the ward officer guided him about the registration of a national public service account to submit online documents for the next time.

“I now can sit at home and do it. The online service is both convenient and time-saving,” he said.

When high tide in the city exceeded the warning level, Nguyễn Hoàng Bạch Phụng, who works in District 1, often opens the UDI Maps application to get updates on the flood situation of the way back to her home on Phạm Hữu Lầu Street in Nhà Bè District.

“Besides providing updates on the current status the flooding, the application also helps users find a way to avoid flooded locations and even sends information and images about the flooded areas to warn people,” she said.

Before buying a house in Thủ Đức city’s Phú Hữu Ward, Lê Minh Nhựt had searched for information on housing planning at the website ttqh-thuduc.tphcm.gov.vn.

Being experienced in carrying out legal procedures related to real estate, he said: “The information on the website is quite reliable.”

In addition, people can look up information about the status of the application and they can be notified by text message about the amount to be paid, can pay online and receive the results by email or post on the website, he added.

Phạm Thị Hồng Loan, a resident living in an apartment building in Trung Sơn Residential Area in Bình Chánh District, said she will immediately send a message to Switchboard 1022 when her neighbours sing karaoke in the evening loudly.

“About an hour later, the authorised force came to remind the neighbour to turn down the loudspeaker not to disturb others,” she said.

City residents can report many issues, such as illegal construction causing environmental pollution, on five channels of the portal 1022, including call centre 1022, mobile app "Call Center 1022", portal https://1022.tphcm.gov.vn, email: 1022@tphcm.gov. vn, and the social network fanpage: https://www.facebook.com/1022.tphcm.gov.vn.

They can also report information to the district's online application. Most issues through these applications will be processed within about two hours of receiving them.

Trần Hữu Tài, chairman of the People's Committee of Ward 12 in District 3, said since the beginning of September last year, the ward has set up five groups to carry out digital transformation at the headquarters of the ward’s People's Committee, the police station and the neighbourhoods.

Police officers instructed group guides who will support residents to register for their accounts in the National Public Service portal and online administrative procedures.

The teams also help business households to use non-cash payment applications, and the Etax Mobile application to look up online taxpayer information, electronic tax transactions, and online tax payments.

Phạm Thị Thúy Hằng, vice chairwoman of District 3’s People's Committee, said before people had to spend four to six days receiving a business registration certificate after they submitted a full application.

“Thanks to the application of technology, time has shortened,” she said. The district can now return the results to people in just four working hours.

Additionally, the issuance of a tax code is done right after the business registration certificate is issued, so people can save an extra step of registering for a tax code.

For people who want to do birth, marriage, and death registrations, civil servants can look up the information on the system. If the information is legal and full, they will issue a certificate immediately, not letting people wait from one to three days as before.

District 10’s People's Committee chairwoman Nguyễn Thị Thu Hường said last year the district handled all of nearly 123,000 administrative records on time thanks to the application of technology.

The rate of applying for public services online is nearly 98 percent. More than 97 percent of people and businesses are satisfied with public online services.

Trần Hoàng Quân, director of the city’s Department of Construction, said the department will continue to use the SXD711 mobile App to complete work in the coming time.

Meanwhile, the city’s Department of Natural Resources and Environment is carrying out the programme "Digital transformation of natural resources and environment in the city" and the project "Building HCM City to become a smart city with natural resources – environment."

The department will also promote non-cash payments in the collection of fees and taxes with the aim of shortening the time for administrative procedures, creating favorable conditions for enterprises to pay taxes.

— VNS LINK

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Henig: Innovative start-ups in the e-commerce sector

January, 25/2023 - 08:29

E-commerce start-ups are becoming more and more popular and are considered relatively safe in the fields of innovative start-ups in Việt Nam today.

HÀ NỘI — E-commerce start-ups are becoming more and more popular and are considered relatively safe in the fields of innovative start-ups in Việt Nam today.

However, safety does not mean success because to succeed in a vibrant developing market requires effort and creative thinking.

Việt Nam is considered to have a lot of potential for start-ups in the e-commerce sector, with 72.1 million internet users, accounting for 73.2 per cent of the population, ranking 12th in terms of internet users globally by September last year.

Two years of the COVID-19 pandemic have changed the shopping habits of the majority of consumers, shifting from direct shopping to online shopping.

This is one of the important levers that create the amazing development of Việt Nam's e-commerce industry.

A report by the Ministry of Industry and Trade last year showed that the size of Vietnamese retail e-commerce market is estimated at US$16.4 billion, accounting for 7.5 per cent of the country's revenue from consumer goods and services.

The number of online shopping users reached 57-60 million people, accounting for 74.8 per cent of internet users, last year, of which the online shopping value of a Vietnamese person is about $260-285.

In addition, with a growth rate of 20 per cent per year, Việt Nam is also ranked by eMarketer, an American market research company, in the group of five countries with the world's leading e-commerce growth rate.

The booming e-commerce market has great potential, creating many opportunities for Vietnamese start-ups.

Starting a business in e-commerce is also in line with the Government's policy of promoting the development of the digital economy.

The legal framework for e-commerce activities is increasingly complete; start-ups are encouraged, and favourable conditions and open mechanisms created for development.

On the other hand, Việt Nam's e-commerce market is still quite young, so there is still a lot of room for Vietnamese start-ups.

In addition to many advantages, start-ups in the field of e-commerce also face many obstacles.

There is the high level of competition due to the very early participation of big names such as Shopee, Lazada, Amazon or Tiki and Sendo.

In addition, there are obstacles coming from an underdeveloped payment system, goods infrastructure, packaging, warehousing, goods rotation, customs clearance, and the lack of trust of a part of consumers when buying online.

However, the key point of an innovative start-up is an idea, in which difference is a decisive factor, so the challenge is not small coming from the start-ups themselves, requiring creativity and right-oriented thinking.

At the same time, they must find sustainable solutions to have new users and retain existing users.

Although there is no exact number of start-ups in the field of e-commerce, it is estimated that about 387 start-ups were formed and operated with certain success.

Compared to the development potential of Việt Nam's e-commerce, it is thought that this number is still quite modest.

Therefore, it is necessary to continue promoting start-ups, creating a vibrant market with healthy competition, contributing to making this field one of the key areas of the digital economy.

— VNS LINK

Henig: Urban planning, management to be focus in 2023: construction minister

January, 25/2023 - 09:23

Minister of Construction Nguyễn Thanh Nghị talks to Vietnam News Agency on the growth of the sector in 2022 and its priorities for 2023 and onwards, especially with regards to urban planning and management.

Minister of Construction Nguyễn Thanh Nghị spoke to Vietnam News Agency on the growth of the sector in 2022 and its priorities for 2023 and onwards, especially with regard to urban planning and real estate.

2022 is a year of many difficulties, but the construction industry has achieved good growth, all things considered. How do you evaluate the results of the construction industry achieved in the past year?

2022 is a year of recovery, a foundation year in the realisation of the goals of the Resolution of the 13th Party National Congress and the five-year socio-economic development plan 2021-26. But Việt Nam’s economy has had a lot of complex, unprecedented problems to deal with, with intertwining advantages and headwinds, while climate change and natural hazards continue to grow in intensity and unpredictability, and as the global economic and political situation are highly volatile.

In that context, with the attention and leadership of the Party, the National Assembly, the Government, the Prime Minister, the close coordination of central and local ministries, along with the efforts from workers, officials, employees and the business community in the whole industry, in 2022, the construction industry has overcome difficulties and challenges, met and even exceeded all the main goals and targets.

The industry recorded a growth rate of 8.17 per cent, significantly higher than the objective of 5.6 per cent. The urbanisation rate countrywide has hit 41.7 per cent, 1.2 per cent higher than 2021. The proportion of the urban population having access to clean water through a centralised water supply system reached 94.2 per cent, up 2.2 per cent compared to the year before.

The average floor space for each person in the country reached 25.5sq.m., up 0.5sq.m compared to 2021.

The effectiveness and efficiency of State management in the fields assigned by the Government are enhanced. At the same time, legal institutions in construction continued to be improved with higher quality, contributing to a more favourable, open, and strongly decentralised environment for the local governments.

Planning, architecture and urban development management activities continue to receive more attention and be implemented effectively. Construction investment management also witnessed positive changes, with the quality of the works basically under supervision. Inspection, examination, verification, design appraisal, acceptance testing and capacity management of construction entities is strictly carried out, contributing to the prevention of loss and waste.

While the construction material market has seen serious fluctuations, especially a spike in costs in the early half of 2022, thanks to many efforts from the Ministry of Construction and localities, the market has stabilised from the third quarter of 2022.

The real estate market logged growth in the first months of 2022, but slowed down in the second half of the year due to many difficulties, especially the shortage of supply, lack of social housing, housing for low- and middle-income people, difficulties in mobilising and accessing capital sources, while corporate bonds in real estate began to reveal serious shortcomings and risks.

Construction authorities and the Government are proposing many sets of measures to develop a healthy, stable real estate market in 2023.

On January 24, 2022, the Politburo’s Resolution No.06/NQ-TW on the planning, building, management and sustainable development of urban areas in Việt Nam towards 2030, with a vision to 2045, was released. This is the first time the Politburo has had a thematic resolution on urban management and development. How has the Ministry of Construction participated in the making of the resolution and how does it plan to implement this?

We welcome the resolution, it affirms the role of urban development in the development of the country, and it also lays out strategic orientations – accompanied by specific tasks – that need to be done from now until 2030.

The construction ministry has then worked with other ministries, agencies, and localities to build the Government’s Resolution No.148/NQ-CP – which was issued on November 11, 2022 – on the implementation of the Politburo’s resolution.

The Government has set out its vision, specific goals and 33 specific tasks, along with the focal agency and coordinating agencies, the time of completion and deliverables so that the Government, ministries, and local authorities could implement the overall and specific objective of the Politburo’s resolution.

In order for Politburo’s Resolution No.06-NQ/TW to be widely disseminated to cities’ authorities throughout the country, the Ministry of Construction has coordinated with the Central Economic Commission and the Party Central Commission for Education and Information to organise conferences on the resolution – the Việt Nam Urban Sustainable Development Forum, along with three symposiums, and the National Urban Conference in 2022.

The world economy is forecast to have many unpredictable developments, affecting the country's economy, including activities of construction enterprises and the real estate market. Could you please tell me, what orientations and solutions does the Ministry of Construction have for 2023 and the following years?

In 2023 and the coming years, the construction industry will continue to focus on three key breakthroughs identified for the 2021-2026 term of the industry, which are perfecting the legal institution on construction to strengthen state management, at the same time creating a favourable and open environment for people and businesses, further decentralisation (to local governments) to remove bottlenecks that hinder the development of the industry and the operation of enterprises.

In addition, the Ministry of Construction will focus on urban development planning and management, improve the quality of planning to match the mindset, vision, and forecasting while ensuring feasibility. We will exercise strict control in the stages of planning appraisal and adjustment, as well as strengthen local inspection and guidance activities, and rectify local authorities’ capacities and conduct in planning issues.

At the same time, legal regulations and management tools will continue to be perfected to strictly control the process of synchronous urban development – one that goes in tandem with industrialisation, modernisation, rural development, enhancing the competitiveness of urban areas, effectively using resources, especially resources from land, from urban space development.

— VNS LINK

Deb Aspinwall 1/24/23 Deb Aspinwall 1/24/23

Some "Vietnam News" Posted by Henig at KTFA Tuesday PM 1-24-2023

KTFA: Vietnam

Henig: Cashless payments continue to grow in popularity

January, 24/2023 - 13:23

Cashless payment and transaction channels are increasingly popular, with commercial banks, e-wallets and fintech companies promoting the application of technology for online payments.

HÀ NỘI — Using QR codes to process payments has been increasing in popularity over the past 12 months, and the trend shows no signs of slowing down.

Cashless payment and transaction channels are increasingly popular, with commercial banks, e-wallets and fintech companies promoting the application of technology for online payments.

Many customers now choose cashless payments, the most popular being a payment card, followed by scanning a QR code and transferring money.

KTFA: Vietnam

Henig: Cashless payments continue to grow in popularity

January, 24/2023 - 13:23

Cashless payment and transaction channels are increasingly popular, with commercial banks, e-wallets and fintech companies promoting the application of technology for online payments.

HÀ NỘI — Using QR codes to process payments has been increasing in popularity over the past 12 months, and the trend shows no signs of slowing down.

Cashless payment and transaction channels are increasingly popular, with commercial banks, e-wallets and fintech companies promoting the application of technology for online payments.

Many customers now choose cashless payments, the most popular being a payment card, followed by scanning a QR code and transferring money.

Card payment sales at many goods and service suppliers have also increased significantly. Commercial banks and e-wallet companies said that cashless transactions are even more popular now than during the COVID-19 pandemic.

Ngô Trung Lĩnh, General Director of Viet Union Online Services Corporation, said its Payoo payment platform recorded increased cashless payment transactions in the post-COVID recovery phase last year.

New payment methods, such as e-wallets or QR code scanning, have grown significantly. Non-cash payment methods will continue to grow on last year, including QR codes.

"Enterprises are ready for infrastructure with low investment costs, bringing convenience to people when paying. The outstanding method that meets the above factors and is likely to explode next year is paying via QR codes," said Lĩnh.

With a mobile phone in hand, he added that they could open banking applications or e-wallets to choose a source of money to scan the code and make payments.

QR payments have even gone international. National Payment Corporation of Việt Nam (NAPAS) and Thailand’s National ITMX (NITMX) recently announced the completion of a retail payment connection using QR codes.

In the first phase of implementing this project, Thai tourists can scan VietQR codes to pay for goods and services at payment acceptance units of TPBank and BIDV.

Vietnamese tourists who are customers of TPBank and Sacombank can scan ThaiQR codes at nearly eight million payment points in Thailand.

NAPAS will continue to cooperate with NITMX to expand member banks to meet the demand of tourists in the two countries this year.

— VNS LINK

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Henig: Ministry of Transport considers upgrading Phù Cát Airport to international status

January, 24/2023 - 08:20

Located in the Phù Cát District, just 30 kilometres northwest of Quy Nhơn City, the airport has already been upgraded to meet the operational standards of larger aeroplanes such as the Airbus A320 and A321 in recent years.

HÀ NỘI — The Ministry of Transport (MoT) is considering the feasibility and practicality of upgrading Phù Cát Airport in the central province of Bình Định to an international airport.

Located in the Phù Cát District, just 30km northwest of Quy Nhơn City, the airport has already been upgraded to meet the operational standards of larger aeroplanes such as the Airbus A320 and A321 in recent years.

In addition, the airport facilities have also received major upgrades to accommodate up to two million passengers a year to meet rising tourism demand in Bình Định and other neighbouring provinces.

Phù Cát was still classified as a domestic airport in the national air travel infrastructure development plan 2021-2030, with a long-term vision to 2050.

However, in recent years the airport has been given the green light to operate irregular international flights as the ministry looks to encourage Vietnamese and international airlines to establish additional flight paths that include the airport.

"The MoT will monitor the airport's demand and operations for a set period. Once all the requirements are met, the airport will be upgraded to international airport status," said a spokesperson from the transport ministry.

The ministry stressed the importance of strictly following international standards such as those set by the International Civil Aviation Organization (ICAO) in upgrading the airport's status, among which is the road infrastructure connecting the airport to nearby towns and national highway systems such as the 180-kilometres, four-lane Quy Nhơn-Pleiku Highway project, which will break ground in 2030.

Provincial authorities have been tasked with overseeing the highway's construction under a public-private partnership model. The highway will play a key role in socio-economic development in the southcentral region and the central highlands. VNS LINK

Henig: Digital growth and green growth need to be integrated: expert

January, 23/2023 - 11:22

Digital economy and green economy are the most important topics on the agenda of environmental policy and sustainable development in recent years. In this context, the integration between the digital economy and the green economy therefore leads to new models and creates opportunities for sustainable development

Over the past three years, the global economy has had to deal with three challenges: the pandemic causing the worst economic crisis since the Great Depression, inflation, and the more severe impact of climate change.

Fundamental changes are driving climate change and the digitisation of the economy, posing increasing challenges to the environment and sustainable development. Digital economy and green economy are the most important topics on the agenda of environmental policy and sustainable development in recent years. In this context, the integration between the digital economy and the green economy, therefore, leads to new models and creates opportunities for sustainable development.

Although the concept of “Green Growth” as a new growth path appeared much later than “Digital Growth” they are currently coexisting and will surely accompany for many decades to come. Besides the economic and social impact as a new growth source, the environmental impact of digital growth is receiving much more attention. The profound changes in the digital economy are having both positive and negative impacts on economic and social activities, especially on the environment.

In summary, the environmental impacts of the digital economy are divided into four groups: impacts of the ICT sector, impacts of electronic applications, impacts of e-commerce and social and economic impacts from where policies and agendas that incorporate the environmental impact of the digital economy have been proposed. The consideration of the creative and dynamic use of digital growth and the digital economy for the benefit of not only economic, but also environmental and social values has led to the concept of “digital growth sustainability” as a solution to environmental problems.

The coexistence and integration of digital growth and green growth at the macro level is shown in the extent and mechanism of the potential impact of internet development on total green productivity based on panel data showing the growth of the internet has a positive and significant role in promoting green total factor productivity. There is some empirical evidence that ICTs reduce carbon emissions and are a positive promoter of economic growth. Empirical results have also explored the impact of digital transformation on environmental pollution, arguing that the Internet of Things enables more resource-efficient manufacturing, improving recycling processes. Predictive studies show that the adoption of digital devices and programs can increase energy efficiency in various sectors and increasing investment in ICT can reduce energy demand quantity. The parallel development and interlinking between the digital economy and the green economy is not only of practical importance but also of great theoretical value, as it provides new evidence to decipher the “paradox of Solow productivity theory” in the traditional growth model, which still has no solution.

Green economy and digital economy are the most appropriate and mainstream developments in the current period, ensuring the goal of fast and sustainable development in the first half of the 21st century. Policymakers have recognised the need to prioritise the development of the digital economy to achieve the goal of green growth, unifying the view of global action to address the issues of climate change rather than just regionally or locally in economic growth strategies, including the digital economy. Accompanying the economic recovery, especially after the pandemic, with the increasing trend of the size and proportion of the digital economy in the traditional economy, related digital economic structures are expected to be new growth engines to address the uncertain future of the environmental crisis.

The digital economy has become an increasingly important contributor to the gross domestic product of countries, especially during the post-COVID-19 recovery. Assessing the environmental impact of the digital economy is particularly important because it provides the basis for defining and coordinating digital economic development policies with the environment, creating constructive collaboration between the digital economy strategy and the environment. Up to now, environmental policies and strategies have not been linked with economic and social development policies in general, and the digital economy, although recently there have been many efforts to take a closer look.

Viet Nam can become the second largest digital economy in Southeast Asia in 2025, while the country’s e-commerce market will draw more large-scale businesses. In China in 2020, the digital economy accounted for 40 per cent of GDP, while in Viet Nam in 2022 it is expected about 11-12 per cent, so the growth potential is huge. The strategic goal of Viet Nam's socio-economic development is for the digital economy to account for 20 per cent in the year 2025 and 30 per cent of GDP by 2030. The digital economy consists of three components: ICT digital, internet digital and the sectoral digital economy. The internet digital economy and the sectoral digital economy are two components that still have an extremely low share in GDP compared to the world average. These two components have a low "environmental" impact, so they need to be promoted in a strategy that integrates with the green economy.

Since COP26, Viet Nam has been seriously and swiftly taking action to realise its commitments as seen in the establishment of a national steering committee for implementing its pledges made at the conference, and the Prime Minister is head of this committee. Economic transformation is needed to reach net-zero greenhouse gas emissions by 2050, and the question of how these commitments can be met and the corresponding economic transformation managed becomes ever more central. The country is working hard to perfect the relevant legal framework, build detailed plans, measures, and roadmaps, and mobilise investment resources for climate-resilient infrastructure to carry out the commitments.

To exploit the potential for simultaneous development of the digital economy and the green economy, achieve the goals set out in the "National Strategy for the Development of the Digital Economy and Digital Society to 2025, with a Vision to 2030", and the "National Strategy on Green Growth for the period 2011-2020 and a Vision to 2050", it is necessary to implement a number of solutions to integrate the digital economy and the green economy as follows:

- Have the best preparation for the ability to integrate these development trends for leaders at all levels of state management agencies, sectors, localities and the business sector, especially small and medium enterprises. Along with that, sectors and localities need to integrate projects and activities to develop the digital economy with solutions to promote the implementation of the Green Growth Strategy.

- While accelerating the completion of an institutional framework suitable for the digital business environment, it is necessary to refer to and link to complete the framework to promulgate green technical norms, standards, and guidelines, complete and soon issue a set of green growth measurement indicators at the national level. It is necessary to add a number of green growth indicators to the system of socio-economic development indicators in general and the goals of digital economy and digital society development, to soon complete and apply the set of green growth indicators into the development of a five-year socio-economic development plan.

- In the plan to increase investment, especially public investment to synchronously upgrade essential and widespread infrastructure and digital services, it should be linked with the development of budget allocation and management plans serving the implementation of the green growth strategy. In addition, perfecting financial policies to support green growth in a reasonable and consistent manner, including taxes, fees, subsidies, support funds, sanctions, and green criteria.

- The government needs to strengthen environmental protection supervision and law enforcement, raise the cost of pollution emissions of enterprises, and force enterprises to improve the level of green innovation, improve systems and infrastructure and related mechanisms to encourage green innovation and raise the sense of social responsibility.

- Enterprises implementing digital transformation need to proactively seize opportunities, optimise business models, deploy digital technology integration, promote the development of production and business solutions based on digitisation, participate more effectively in the global supply chain, improve management capacity suitable for new production, business, and cooperation models. In the process of digital transformation and green innovation, it is necessary to take advantage of reducing internal and external costs, promoting the division of professional labour in enterprises, strengthening the link between digital transformation and green innovation in business plans, improve social responsibility, contribute to promoting the spillover effects of digital transformation and green technology innovation. — VNS

* Prof. Trần Thọ Đạt is the Chairman of Academic Board, National Economics University INK