Day: October 20, 2021

Two-way trade between Vietnam and Laos surpassed 947 million USD in the first nine months of 2021, up 28.2 percent year-on-year, according to the Vietnam Trade Office in Laos.

Of the total, Vietnam’s exports were valued at over 447 million USD, up 6 percent year-on-year, and imports 499 million USD, up 57.9 percent.

Compared to the same period of 2019 when the COVID-19 did not break out yet, the bilateral trade turnover rose by 14.4 percent.

In September alone, the two countries’ import-export value exceeded 99 million USD, up 10.8 percent year-on-year.

In the month, Vietnam continued to record a trade deficit of 21.57 million USD. During January-September, the country posted a trade deficit of 52.4 million USD with Laos.

In the nine-month period, Vietnam sold to Laos mainly steel products (57.6 million USD), machinery, equipment, tools and spare parts (39.6 million USD), and fertilisers (17.25 million USD). It imported from Laos over 106.9 million USD worth of rubber, 71 million USD worth of timber and timber products, and 58 million USD worth of minerals.

Source: Vietnam News Agency

Lawmakers dealt with many important issues, including the implementation outcomes of the 2021 development plan and the draft plan for next year, on the first day of the 15th National Assembly (NA)’s second session, which opened on October 20.

Reporting on the implementation outcomes of the 2021 socio-economic development plan, Prime Minister Pham Minh Chinh said the Government has been exerting utmost efforts in the COVID-19 combat with the consistent goal of protecting people’s health and lives. It has also been quickly completing a general strategy for the pandemic prevention and control and a programme on socio-economic recovery and development so as to keep the macro-economy stable, guarantee major balances, and promote production and business activities.

In the draft socio-economic development plant for 2022, the Government set up 16 main targets, including gross domestic product (GDP) growth of about 6 – 6.5 percent, consumer price index (CPI) expansion of around 4 percent, and the State budget overspending equivalent to some 4 percent of the nation’s GDP.

To realise those targets, the Government specified several major tasks and solutions, including taking flexible and effective moves to concurrently prevent and control the COVID-19 pandemic while recovering and developing the economy and society.

At the opening session, Chairman of the NA’s Committee for Economic Affairs Vu Hong Thanh delivered a report verifying the implementation outcomes of this year’s socio-economic development plan and the draft plan for 2022.

Chairwoman of the NA’s Committee for Social Affairs Nguyen Thuy Anh gave another report verifying the performance in COVID-19 prevention and control and the implementation of Resolution No. 30/2021/QH15, issued at the first session of the 15th parliament in July.

After that, President of the Vietnam Fatherland Front Central Committee Do Van Chien reported on voters’ and people’s opinions submitted to the second session.

Duong Thanh Binh, member of the NA Standing Committee and head of the Standing Committee’s Ombudsman Board, reported on the outcomes of the monitoring of the settlement of voters’ opinions sent to the 11th session of the 14th NA.

In the afternoon, Minister of Finance Ho Duc Phoc reported on the implementation of the State budget plan this year, the state budget estimate and the central budget allocation plan in 2022, along with the finance – state budget plan for 2022 – 2024. This issue was later verified in a report read by Chairman of the NA’s Committee for Finance and Budget Nguyen Phu Cuong.

Prosecutor General of the Supreme People’s Procuracy Le Minh Tri presented a proposal on the draft law amending and supplementing some articles of the Criminal Procedure Code. Chairwoman of the NA’s Committee for Judicial Affairs Le Thi Nga delivered a verification report on this draft.

After a proposal on the draft law amending and supplementing some articles of the Statistics Law was presented by Minister of Planning and Investment Nguyen Chi Dung, a verification report was delivered by Chairman of the NA’s Committee for Economic Affairs Vu Hong Thanh.

The two draft laws were later debated by legislators in groups.

Source: Vietnam News Agency

The second session of the 15th National Assembly opens in Hanoi on October 20 morning.

The meeting is broadcast live by Radio the Voice of Vietnam (VOV1), Vietnam Television (VTV1) and National Assembly Television.

Prior to the opening ceremony, a delegation of leaders of the Party, State and Vietnam Fatherland Front and NA deputies paid tribute to late President Ho Chi Minh at his mausoleum.

They then held a preparatory meeting to discuss and vote on the working programme of the second session.

Amid the complex developments of COVID-19, the meeting is held both in-person and online. Legislators will meet virtually from October 20 to 30, and then join in-person discussions from November 8 to 13.

Second session of 15th National Assembly opens hinh anh 2

Deputies at the meeting (Photo: VNA)

The deputies are expected to consider and adopt two bills and five draft resolutions, including the law amending and supplementing some articles of the Statistics Law, the law amending and supplementing some articles of the Criminal Procedure Code, resolutions on a number of specific mechanisms and policies for Hai Phong city, and Nghe An , Thanh Hoa and Thua Thien-Hue provinces, and another resolution on the organisation of online trials.

Five other bills, comprising the Law on Mobile Police, the Law on Cinematography (amended), the Law on Insurance Business, the Law on Emulation and Commendation (amended), and the law amending and supplementing some articles of the Intellectual Property Law, will also be tabled for discussions.

Apart from legislative matters, the deputies will scrutinise reports on the implementation of the socio-economic development plan and state budget estimate in 2021, and COVID-19 prevention and control, along with decisions on socio-economic development plan, state budget estimate and central budget allocation plan for 2022, among others.

The NA Office has also drawn up plans for a scenario where the pandemic continues to develop complicatedly nationwide. Under the scenario, the meeting will be held in the form of teleconference entirely and without the gap between the two phases, so that the session will conclude earlier, giving time for the Government and localities to focus on the pandemic fight.

Source: Vietnam News Agency

Most voters’ proposals sent to the 14th National Assembly’s 11th meeting have been dealt with, Chairman of the NA Standing Committee’s Ombudsman Board Duong Thanh Binh said on October 20.

He made the statement while delivering a report on answers to voters’ petitions and the settlement of citizen’s complaints and denunciations during the opening of the second session of the 15th NA.

According to the report, as many as 807 voter’s proposals have been sent to competent agencies. Their complaints are related to most areas of social life, including natural resources and environment, policies for contributors to the nation’s revolutionary cause, employment, social security, agriculture, rural areas, organisational structure and policies towards cadres and civil servants, transportation, education and training.

The majority of ministers and heads of centrally-run agencies directly responded to voters’ petitions. A number of voters’ complaints have been resolved by the ministries and agencies, which provided full information on issues of their concern, meeting the requirements and aspirations of voters and the people. However, some answers did not contain enough information and failed to satisfy the voters. In addition, a number of petitions have not been resolved due to a delay in compilation and submission of guiding documents, it said.

The report also pointed that the NA’s agencies should further strengthen supervision of the promulgation of legal documents and supervise emerging problems directly related to people’s lives. It is necessary for the NA delegations and deputies to improve the handling of voters’ proposals, and promptly transfer them to competent agencies for settlement in accordance with the law.

The Government should direct the ministries and centrally-run agencies to fix shortcomings as stated in the report, as well as review and deal with the recommendations, ensuring the quality and on-schedule resettlement.

Source: Vietnam News Agency

While Vietnam is not out of the woods yet, it has enough pull factors to encourage investors to continue their business operations and even move their manufacturing operations to the country, according to Vietnam Briefing.

Economic activities gradually resuming

The news site noted that Vietnam has announced a phased plan to reopen the economy ensuring pandemic prevention in line with health authorities.

It reported that approximately two-thirds of industries in Ho Chi Minh City have reopened. The number of businesses in export processing zones and industrial parks in Ho Chi Minh City resuming operations has reached approximately 66 percent while at HCM City’s Saigon Hi-Tech park the rate is 74 percent.

Intel and Samsung are targeting to resume full operations of their factories in HCM City by the end of November, which may ease some disruption to supply chains.

Domestic flights are gradually resuming along with interprovincial road and rail travel though passengers have to be fully vaccinated to travel. Several localities have also reopened tourist sites in a bid to attract domestic tourists.

The government is also developing a roadmap to fully open up to international visitors by June 2022. The plan will be implemented in phases with a pilot programme for fully vaccinated international tourists to Phu Quoc island in November 2021. This is expected to be followed by Nha Trang, Ha Long, Hoi An, and Da Lat in December.

The government has issued a resolution on pandemic control giving guidance on four levels of transmission risk – low, moderate, high, and extremely high. The criteria based in the resolution are expected to be rolled out throughout the country which should make it easier for businesses to resume operations.

Apart from this, the government has introduced several measures to help businesses and individuals recover from COVID-19. These include land rent cuts, deferring tax and land payments, one-time payments for employees, and easing of some restrictions on foreign workers.

According to the news site, Vietnam’s market fundamentals remain strong and its economy appears resilient to overcome the recent disruption to production due to the pandemic. There are already signs that things are improving.

From October until the end of this year, 35 million doses of the COVID-19 vaccine are expected to be distributed throughout the country. While Vietnam had a slow start in vaccinating its population, as per Nikkei’s COVID-19 Recovery Index, Vietnam was among the top 10 percent of countries administering the most vaccine doses daily per capita.

In addition, Vietnam is also developing its own homegrown COVID-19 vaccines, which should be ready for use sometime next year. This would reduce Vietnam’s need to depend on foreign vaccines ensuring enough supply for the local population and also possibly export to other markets.

Recovery prospects

The Economist Intelligence Unit (EIU) of The Economist said the Vietnamese economy will recover swiftly in 2022, following the lifting of most coronavirus-related restrictions from late 2021.

Export-oriented manufacturing will continue to be the most important engine of economic growth.

Recent announcements made by foreign investors on additional investment to expand production in Vietnam reflect their trust in Vietnam’s prospects for economic recovery, reported the Dau tu (Investment Review) newspaper.

The Swiss company Nestle said it is pouring an additional over 130 million USD, raising its total investment in Vietnam to 730 million USD to carry out a number of its projects in the next two years.

Alongside Nestle, other foreign firms have committed to maintaining operations in Vietnam despite the fourth wave of COVID-19 outbreaks that have forced various localities to apply stringent preventive measures.

Tetra Pak of Sweden has confirmed that it will pump 5 million EUR (5.86 million USD) to expand its existing 120-million-EUR plant in Binh Duong southern province.

The investment demonstrates the company’s trust in Vietnam’s strong economic recovery after the pandemic, according to Managing Director and President at Tetra Pak Vietnam Eliseo Barcas.

In particular, the LG Display project in Hai Phong northern port city has received additional investment twice this year, with 750 million USD in February and 1.4 billion USD in August.

Earlier this month, authorities in the northern province of Quang Ninh presented an investment registration certificate to a 365.6 million USD project of Jinko Solar Vietnam Co. Ltd., an affiliate of the Jinko Solar Holding Co. Ltd. The firm channeled nearly 500 million USD into a project in the province in March.

Despite current challenges triggered by the pandemic, Japanese firms in Vietnam are working to adapt and improve their production system in the new situation, said Chief Representative of the Japan External Trade Organisation (JETRO) in Hanoi Nakajima Takeo.

For his part, Alain Cany, Chairman of the European Chamber of Commerce (EuroCham) in Vietnam, said the European business community is determined to stand side by side with the Vietnamese Government in this tough time and believes that the Government will successfully bring COVID-19 under control like it did before.

As they have showed their determination to maintain operations in Vietnam, most foreign investors hope that the Government will promptly devise a clear plan for reopening and economic recovery, or else current investment plans will be delayed and newcomers cannot enter the country to study investment possibilities.

Despite COVID-19 impacts, foreign direct investment (FDI) inflows into Vietnam during the first nine months of this year rose 4.4 percent year on year to 22.15 billion USD, reported the Foreign Investment Agency under the Ministry of Planning and Investment.

The total imports-exports value of the FDI sector in the first eight months of the year also surged 31.2 percent to 297.43 billion USD, with exports accounting for 156.64 billion USD.

Source: Vietnam News Agency

Dong Nai has attracted 1.1 billion USD to nearly 140 foreign direct investment (FDI) projects since the start of this year, according to the Industrial Zones Authority of this southern province (DIZA).

Of the sum, more than 736 million USD was channeled into 93 existing projects while the rest into new ones.

The FDI capital attracted so far this year has exceeded this industrial hub’s target of 700 million USD for 2021.

Most of the projects operate in supporting and electronics industries, apply modern technology, and do not cause environmental pollution, matching the local policy of selective FDI attraction.

Le Van Danh, deputy head of the DIZA, said despite the COVID-19, foreign investors have still raised capital, expanded operations, and invested in many new projects in Dong Nai, which shows their belief that the pandemic will be put under control and the economy of Vietnam and Dong Nai will develop in the time ahead.

The province will welcome more FDI projects in the coming time as many investors are liaising with the DIZA to express their intention to open new projects, he added.

Dong Nai is currently home to nearly 1,500 valid FDI projects worth 32 billion USD in total by investors from 45 countries and territories. The largest investors are the Republic of Korea, Taiwan (China), and Japan

Source: Vietnam News Agency

The flow of overseas remittances to Ho Chi Minh City reached 5.1 billion USD in the first nine months of 2021, up 22 percent year on year, the State Bank of Vietnam’s Branch in the city has reported.

This is considered an impressive growth rate as the COVID-19 pandemic has badly affected the global economy over the past two years.

It is estimated that this year’s overseas remittances to the southern largest economic hub are 10-12 percent higher than last year’s figure of 6.1 billion USD.

Vice Director of the SBV Branch in HCM City Nguyen Hoang Minh said the main sources of overseas remittances to the city in the first three quarters remained the US, Australia, Canada and Europe.

Vietnamese abroad sent home 17.2 billion USD worth of remittances in 2020, making the country the third-largest remittance recipient in the East Asia and Pacific region, according to the Migration and Development Brief released in May 2021 by the World Bank and the Global Knowledge Partnership on Migration and Development (KNOMAD).

This represents a rise of nearly 3 percent over 2019, a very positive result compared to the previous forecast in the context of the COVID-19 pandemic.

With remittances equivalent to 5 percent of the country’s gross domestic product (GDP), Vietnam was among the top 10 countries in the region by the share of GDP

Source: Vietnam News Agency

National Assembly (NA) Chairman Vuong Dinh Hue has signed for issuance a resolution of the NA Standing Committee on a number of solutions to support businesses and people affected by the COVID-19 pandemic. The resolution took effect on October 19.

Accordingly, the NA Standing Committee decided to reduce 30 percent of corporate income tax for enterprises whose revenue in 2021 is less than 200 billion VND (8.7 million USD) and experiencing a revenue reduction compared with that of 2019. The reduction is not applied for taxpayers who are newly established, merged or separated in 2020 and 2021 tax period.

The NA Standing Committee also agreed to exempt personal income tax, value added tax and other taxes in the third and fourth quarter of 2021 for individuals and households in pandemic-hit areas. Tax exemption does not apply to revenues from the provision of software products and services, video games, digital movies, digital music and advertising.

The value added tax for goods and services including transportation, food, accommodation services and those relating to tourism promotion will also be reduced from November 1 to December 31 this year.

The NA Standing Committee decided to exempt the fee for late payment arising in 2020 and 2021 for enterprises and organisations which incurred losses in 2020.

The Government is assigned to continue reviewing and carrying solutions within its jurisdiction to support businesses and organisations severely affected by the COVID-19 pandemic to restore production and business.

Source: Vietnam News Agency