Day: November 15, 2021

When the lychee harvest time of 2021 came, Bac Giang was still a COVID-19 epicentre with thousands of infection cases. Striving to concurrently fight against the pandemic and promote lychee sale, this northern province took flexible and creative measures to secure a successful crop.

A lychee crop with two records

The 2021 lychee crop of Bac Giang was said to have the best quality and the largest output compared to previous years. Total lychee output exceeded 215,800 tonnes, rising by over 50,000 tonnes from 2020.

Of this volume, over 58,800 tonnes were early-ripening lychees and 157,000 tonnes were fruits of the main crop, up 11,100 tonnes and 39,700 tonnes year on year, respectively.

The local lychee had found their way into almost all supermarket networks across Vietnam such as Big C, Saigon Co.opmart, Hapro, Aeon, Lotte, and Vinmart, as well as shopping malls, convenience stores, wholesale markets, and traditional markets.

In particular, the fruit was sold on social networks like Facebook, Zalo, and Youtube, along with large domestic and international e-commerce platforms, including Voso, Sendo, Tiki, Shopee, Lazada, Postmart, and Alibaba with a record volume – more than 6,000 tonnes.

The province enjoyed stable lychee export this year. The local fruit speciality has gained a foothold in many countries and territories around the world. The export volume reached 89,300 tonnes, accounting for 41.4 percent of the total sold figure.

Apart from the traditional and largest market of China, the lychee was also shipped to the EU, the US, Australia, Japan, the Republic of Korea, Southeast Asia, and the Middle East.

Despite certain disadvantages caused by the COVID-19 pandemic, this year’s lychee prices stayed stable throughout the crop, comparable to or even higher than prices in the pre-pandemic period.

Bac Giang earned over 6.8 trillion VND (299.6 million USD) in lychee sales and revenue of support services, including 4.27 trillion VND in sales. Selling prices averaged 19,800 VND per kg in the domestic market during the crop.

The fruit has won over high evaluation from consumers in demanding markets such as Japan, the US, the Netherlands, Belgium, France, Germany, China, and some countries in the Middle East and Southeast Asia. Export prices were also high, ranging between 30,000 VND and 55,000 VND per kg.

Flexibility, creativity in lychee promotion

From the start of the crop, the provincial People’s Committee issued a plan on the organisation of promotion activities to boost lychee sale.

Partners such as Aeon, Central Group, Mega Market, and Big C sent their representatives to work with Bac Giang businesses to make preparations ahead of the harvest time. More than 50 contracts were signed, involving a lychee volume much higher than in previous years.

In May 2021, the provincial Department of Industry and Trade coordinated with the Tan Yen district People’s Committee to hold a ceremony marking the first batch of lychee destined for Japan.

Although Bac Giang was still an epicentre of COVID-19 in early June, its People’s Committee worked with the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development, ministries, and central agencies to successfully organise a teleconference promoting the sale of lychee. The event attracted participants from across Vietnam and China, Japan, Singapore, and Australia via videoconference.

At that meeting, the Bac Giang lychee officially made debut on major e-commerce platforms of Vietnam and the world.

In addition, the Department of Industry and Trade kept cooperation with relevant agencies of the trade and agriculture ministries to take part in online meetings and discussions to connect with businesses and importers in Japan, Australia, the EU, and China, among others.

Proposals were submitted to the Government, the Prime Minister, ministries, sectors, and other localities to seek the best possible conditions for the transportation of lychee in the domestic market and to foreign destinations.

The provincial administration also ordered the Industry and Trade Department to actively work with the Vietnam E-Commerce and Digital Economy Agency (the Ministry of Industry and Trade) and the Department of Posts (the Ministry of Information and Communications) to support the distribution of lychee via e-commerce platforms.

Provincial authorities also helped local enterprises and cooperatives to open stores on large online shopping platforms, facilitating the fruit’s access to the domestic and foreign markets.

Vice Chairman of the provincial People’s Committee Phan The Tuan said thanks to the proactive, drastic, and creative actions, as well as the involvement of the entire political system, Bac Giang obtained a successful lychee crop amid the trying time.

Source: Vietnam News Agency

The Vietnam National Administration of Tourism (VNAT) has officially launched a campaign called “Live fully in Vietnam” to welcome international tourists back to five destinations in the country.

The five destinations are the northern Quang Ninh province, the three central localities of Quang Nam province, Da Nang city, and Khanh Hoa province’s Nha Trang, and Phu Quoc island in the Mekong Delta province of Kien Giang.

With this campaign, for the first time since March 2020, foreign visitors will have the opportunity to experience new tours and routes in the country.

The campaign kicked off at a favourable time, after the World Travel Awards (WTA) 2021 named Vietnam among one of the Asia’s Leading Destinations last month. The WTA also recognized Ha Long Bay – the UNESCO-recognised heritage site in Quang Ninh province – as a leading tourist attraction in Asia.

A corner of Hoi An ancient city. (Photo: VNA)

Another UNESCO heritage site – Hoi An Ancient Town in the central province of Quang Nam – also re-opens to visitors. The ancient port town has regularly won tourism titles such as: “The most romantic city”, “the most beautiful and charming city”, or “ the best cultural destination”.

While Ha Long and Hoi An have been favourite destinations for decades, Phu Quoc is a rising star of Vietnam’s tourism sector. Luxury and world-class resorts are scattered along the 150km long coastline of the island, stretching through national parks and tiny fishing villages.

Meanwhile, Nha Trang and Da Nang are two prominent seaside destinations in the central region. Nha Trang is the scuba diving centre of the country, and Da Nang is the famous coastal city that brings a new, creative and balanced feeling.

Vietnam is opening the five destinations mentioned above following careful preparations, with comprehensive safety measures in place to prevent the COVID-19 pandemic.

Fully vaccinated travellers from 72 countries with vaccination certificates recognised by Vietnam, who hold vaccination certificates or COVID-19 recovery certificates and having negative RT-PCR test for COVID-19 within 72 hours of departure, are now welcomed to these destinations. Children under 12 years of age are not required to have certificates of vaccination./.

Source: Vietnam News Agency

Two world heritage sites in the central province of Quang Nam – Hoi An ancient town and My Son Sanctuary – began to welcome foreign tourists starting November 15.

The roadmap to welcome foreign visitors will be rolled out in three phases, with the first one running from now until November 30 and the second one between December 1 and January 31, 2022.

Chairman of the Hoi An People’ Committee Nguyen Van Son said to welcome the visitors, a 50 percent discount is offered for sightseeing tickets to the ancient town and traditional craft villages.

All workers at tourist sites have been fully vaccinated against COVID-19, he added.

Director of the My Son Sanctuary’s management board Phan Ho said the site has devised various events and new products to serve tourists. Preventive measures have been in place to ensure visitors’ experience and safety.

Deputy Director of the provincial Department of Culture, Sports and Tourism Le Ngoc Tuong said more than 400 foreign tourists are expected to arrive in the province on November 17-18, signalling the start of the tourism sector’s recovery roadmap in the new normal.

Source: Vietnam News Agency

Trade remedies should be utilised more and in a more effective way to ensure fair competition and protect domestic production in the context of Vietnam’s deeper integration into the global economy through joining more free trade agreements (FTAs), according to experts.

Trade remedies are measures are allowed by the World Trade Organisation (WTO) to prevent unfair competition such as dumping and subsidies for imported goods. These also prevent a sudden surge of imported goods which has the potential to cause serious damage to domestic manufacturing industries.

The demand for the use of trade remedy tools will also be higher along with the development of global trade. Trade remedies have been recognised by many countries as a necessary tool to stabilise domestic production and protect employment for domestic labourers.

Vietnam has so far joined 15 Free Trade Agreements (FTA) and is negotiating two other FTAs. Among the 14 FTAs that have come into force, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam-European Union Free Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement (UKVFTA) are three new generation FTAs with comprehensive commitments in many economic and trade fields.

The signing of these agreements helps expand the market, attract investment, and bring competitive advantages to Vietnam’s exports, but also puts domestic production at risks of fraud of origin, illegal transfer of goods and evasion of trade remedies tax.

To deal with the issues, the Government of Vietnam and the Ministry of Industry and Trade have developed many projects and programmes to improve the capacity of Vietnamese businesses relating to using trade remedies tools.

Specifically, the Prime Minister approved two projects on “Strengthening state management on combating evasion of trade remedies and origin fraud”, and “Building and effectively operating an early warning system on trade remedy” with the aim of preventing and responding to foreign trade remedy lawsuits, towards sustainable exports.

A project on enhancing trade remedy capacity in the context of Vietnam’s participation in new generation FTAs was also ratified. It creates a comprehensive framework to enhance the effectiveness of trade remedies and improve knowledge and capacity of enterprises on trade remedies tools.

The overall goal of the project is to perfect the legal system on trade remedies to ensure their consistency with international commitments, new generation FTAs, and the interests of the economy in the process of international integration as well as to effectively use trade remedies to protect domestic production and benefits of consumers.

The project will focus on reviewing legal documents in the field of trade remedies in the 2022-2025 period, thereby proposing amending the Law on Foreign Trade Management or developing a Law on Trade Remedies.

Currently, the Ministry of Industry and Trade is actively coordinating with relevant ministries and agencies to develop a plan of action to carry out the project, ensuring the full implementation of the set goals, and protecting legitimate rights and interests of Vietnamese manufacturing industries and enterprises in the process of participating in FTAs

Source: Vietnam News Agency

The total volume of goods traded between Vietnam and China going through the two border-gate railway stations of Lao Cai and Dong Dang reached more than 838,000 tonnes in the first nine months of 2021, up 43 percent year-on-year, according to statistics of the Vietnam Railways Corporation (VNR).

In the third quarter, although the COVID-19 pandemic broke out in many provinces and cities, affecting the volume of domestic freight transported on the North – South railway route, the volume of goods transported by rail between Vietnam and China reached more than 258,000 tonnes, a rise of more than 57 percent against that of the same period in 2020.

Pham Duc Khai, head of Dong Dang Railway Station in the northern border province of Lang Son, said that despite the complicated situation of the COVID-19 pandemic, freight trains run normally between Vietnam and China, so the volume of international freight imported and exported through Dong Dang station reached more than 400,000 tonnes in the first ten months of 2021.

Dieu Khac Minh, an official at Lao Cai station in the northern border province of Lao Cai, stated that the average volume of goods transported by railway between Vietnam and China is about 650,000 to 700,000 tonnes each year.

During January-October this year, the station’s freight volume rose by 17 percent year-on-year.

The growth was attributed to close coordination between Vietnamese and Chinese railways, Minh stressed.

Vietnam Railways is working with Kunming Railways of China in order to increase the railway market share, and handle about 1 million tonnes of import and export goods a year between the two sides through Lao Cai station.

Nguyen Hoang Thanh, Deputy General Director of Railway Transport and Trading Joint Stock Company (Ratraco), stressed the need to invest in infrastructure in order to achieve good growth in international railway goods transport.

Source: Vietnam News Agency

Vice President Vo Thi Anh Xuan lauded Quang Tri’s COVID-19 prevention and control so far while taking part in a great national unity festival held in the central province on November 15.

In her speech, Xuan praised anti-pandemic efforts made by the provincial Party Organisation, authorities and people. As a result, the local gross regional domestic product (GRDP) reached 6.27 percent in the first ten months, with annual growth recorded in industry, trade, and agriculture.

The province also posted positive outcomes in investment attraction and high budget collection, while strengthening the building of the Party and political system and maintaining defence and security.

Xuan recommended local Party committees, authorities, front committees and political and social organisations at all levels continue promoting revolutionary tradition, solidarity and patriotism, striving for the highest socio-economic development results.

She listed a number of priotirised tasks such as flexible and cautious COVID-19 prevention and control and increasing vaccine coverage as soon as possible.

At the event, Xuan presented gifts to local disadvantaged children and families.

On the same day, the Vice President laid wreaths and offered incense at the local martyrs’ cemeteries and visited local religious dignitaries.

Source: Vietnam News Agency

Financing public investment to generate future growth and to speed up economic recovery post-COVID-19 remained Vietnam’s most important challenge in the near future, said economists and policymakers.

A recent report by the United Nations Development Programme highlighted a number of the Southeast Asian economy’s shortcomings and limitations. From 2002 to 2019, public investment (as a share of GDP) was said to fall from 22 percent to 11 percent while demand for infrastructure had been increasing.

This is especially true in coping with climate change, a rising threat to Vietnam – a densely populated country with two low-lying deltas and a long coastline.

The Southeast Asian economy must also commit significant investments to reduce its logistics costs, transit time, modernise cities and improve digital connectivity to stay competitive internationally. While some progress has been made, the country is still behind regional rivals such as Malaysia and Thailand on this front.

Innovation has been slow. Vietnam typically spends just 0.5 percent of its GDP on research and development in recent years, far below what is required to maintain a competitive edge in the region. In comparison, Thailand spends over 1 percent and Malaysia close to 1.5 percent.

To make matter worse, disbursement of public investment has slowed to a crawl since the beginning of the year, especially after the fourth outbreak of the virus in April.

Disbursement of public investment during the first ten months of the year was 257.38 trillion VND (11.3 billion USD) or nearly 55.8 percent of the year’s target, according to the latest report by the Ministry of Finance.

Even when the money was spent, issues have been raised over its efficiency. The country’s decentralised approach has resulted in the fragmentation of its planning system in which local projects were approved in isolation and without sufficient reference to national strategic priorities. In addition, the implementation of hundreds of small projects incurred unnecessary costs and slowed delivery.

This has called for policymakers to carry out reforms of economic institutions with an emphasis on seeking new sources of long-term financing for its infrastructure projects.

Outbreak

While initially experiencing some slowdown, the country was able to mount a strong comeback in the latter half of 2020, ending the year with positive GDP growth, an impressive feat against a backdrop of a bleak global economy.

However, the fourth outbreak of the virus in Vietnam has been a game-changer. As major towns, provinces and industrial hubs across the country were forced to go into lockdown during the fourth outbreak, the economy has suffered a massive blow. Vietnam’s GDP growth forecast has been lowered to 2.2.5 percent this year in the latest report by World Bank.

A recent survey by the Centre for Analysis and Forecasting of the Vietnam Academy of Social Sciences in July indicated 63.5 percent of Vietnamese households experienced an income drop of at least 30 percent compared to the pre-pandemic level, which has resulted in a nosedive in demand for goods and services.

“Vietnam’s fiscal response to the pandemic was inadequate,” said Jonathan Pincus, UNDP senior international economist specialised in Southeast Asia.

Pincus said contraction of private consumption would result in considerable suffering and slower GDP growth than was necessary. Recovery would be slower because the shortfall of demand would cause bankruptcies.

He urged policymakers to implement financial reforms and to create new financial institutions to increase the supply of long-term credit to finance new infrastructure and national competitiveness. He also called for curbs on over-lending to properties and equities, a halt to capital inflows during periods of excessive credit growth and deficit spending while demand is slowing down.

Vo Tri Thanh, former Vice Director of the Central Institute for Economic Management (CIEM) and a member of the National Financial and Monetary Policy Advisory Council, said the pandemic had forced Vietnam to reconsider their approaches to national development and implement policies that were unprecedented.

“Developing countries may consider two consecutive quarters with negative growth as a recession. For Vietnam, a 2 percent growth could be considered a recession,” Thanh told Vietnam News.

There has been a reverse of fortune as Vietnam’s GDP growth this year has been reduced to 2-2.5 percent while the global economy was expected to grow by 5-6 percent. Last year, Vietnam recorded a 2.91 percent GDP growth while the global economy was at negative 4 percent.

“Vietnam’s economy is not without bright spots including strong macroeconomic indicators, growing exports and a healthy inflow of FDI,” he said. However, the government’s priorities, for now, were stimulating demand, investment and economic recovery.

Thanh said the government-sponsored recovery programme must cover and focus on the economy’s key sectors with fiscal policies to play an important role. A short-term budget deficit may be tolerable to shore up the programme’s financial strength, he added.

He called on the government to turn the pandemic into an opportunity to initiate reforms and implement new policies to improve productivity and the business environment and to boost innovation and start-up culture.

Source: Vietnam News Agency

Businesses and people have donated 15,000 life jackets worth over 20 billion VND to fishermen in need in central provinces and cities.

The donation was made in response to an joint appeal from former President Truong Tan Sang, who is former Honorary Chairman of the Vietnam Red Cross Society (VRC), and the VRC Central Committee.

Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Thua Thien-Hue, Quang Nam and Khanh Hoa provinces, and Da Nang city will receive 1,000 life jackets each. As many as 1,600 life jackets will be presented to Quang Ngai and Phu Yen provinces each while 1,800 others will be handed over to fishermen in Binh Dinh. Fishermen in Truong Sa (Spratly) archipelago will also get 1,000 life jackets.

The donation of life jackets to poor fishermen is a practical activity, helping to ensure the safety of fishermen while fishing offshore, developing the economy and participating in the protection of the country’s sovereignty over seas and islands.

This was part of a charity programme run by “Sharing” volunteer group founded by Mai Thi Hanh, spouse of former President Truong Tan Sang. Last year, 3,500 life jackets were presented to needy fishermen in central provinces.

Source: Vietnam News Agency