Day: November 29, 2021

V1-3 Ben Tre wind power plant, the first of its kind in the Mekong Delta province of Ben Tre, was put into operation on November 28.

Construction of the 7-turbine wind power plant began in April 2020 with a total investment of 1.5 trillion VND (over 66.1 million USD). It has a capacity of 30MW.

The plant is expected to generate an average output of 90 million kWh per year, and annually contribute 20 billion VND (over 882,000 USD) to the State budget in the first 14 years of its operation.

Speaking at the inauguration ceremony, Chairman of the provincial People’s Committee Tran Ngoc Tam said the operation of the plant contributes to concretising the province’s goal of maritime economic development, including the development of clean energy, thus helping promote its socio-economic development. He praised the investor, local authorities and sectors for their efforts and support for the project, while asking the provincial Department of Industry and Trade to coordinate with relevant agencies to remove difficulties and obstacles to speed up construction of other wind power plants in Ben Tre.

According to the provincial Department of Industry and Trade, in the period 2015-2020, Ben Tre province was approved by the Ministry of Industry and Trade to develop wind power projects with a total capacity of more than 1,000 MW.

Currently, 19 wind power projects are being implemented in the province. In 2022 and the following years, 17 other projects will be developed with a total capacity of more than 914 MW.

In addition, Ben Tre has proposed to add 26 projects with a total capacity of 6,400 MW. By 2025, power projects in the province are expected to generate an average power output of over 4.5 billion kWh with a total revenue of more than 10 trillion VND per year.

Source: Vietnam News Agency

Improving the policy system and legal framework based on international trade practice is one of the important factors for Vietnam to integrate more deeply into the global value chains and attract investment capital from Europe as well as create a level playing field for domestic and foreign enterprises, Ambassador Giorgio Aliberti, Head of the European Union Delegation to Vietnam, has said.

Up to 35 percent of European business leaders see administrative procedures as a barrier in the implementation of the European Union – Vietnam Free Trade Agreement (EVFTA), according to the 2021 White Book released recently by the European Chamber of Commerce (EuroCham) in Vietnam.

Aliberti said that there is great investment potential from the European Union, especially in high-value sectors.

EuroCham is committed to supporting the Vietnamese Government in setting up a sustainable development roadmap to bring better investment opportunities in the future for the business communities of the two sides, he added.

In early 2021, European business leaders made a positive and optimistic assessment about Vietnam’s trade and investment environment. The Business Climate Index (BCI) of Vietnam reached 73.9 points in the first quarter of this year, the highest score recorded since the third quarter of 2019, before the COVID-19 pandemic hit global trade and investment.

However, the fourth wave of COVID-19 infections in many provinces and cities across the country caused the BCI to drop by nearly 30 points in the second quarter of this year to only 45.8 points.

According to Aliberti, the outbreak of the pandemic led to certain disruptions during the social distancing period in Vietnam and other countries in the region. However, Vietnam has made remarkable reforms to implement the EVFTA such as its efforts related to certification of origin and geographical indications with very specific improvements, he said, adding that this is a very important starting point.

The official said the EU and Vietnam will witness the opening of their markets along with tariff reductions, opening a new wave of trade for the business communities of the two sides in the future. If the two sides cooperate to solve difficulties, the post-pandemic recovery will quickly achieve desirable results, towards a brighter and more prosperous future in the relationship between Vietnam and the EU, he said.

Source: Vietnam News Agency

The fourth COVID-19 outbreak has severely affected Vietnamese trade. However, many businesses in the country have taken advantage of this difficult time to make a transition from traditional business to that in the digital environment.

Grasping the need for digital transformation, the Vietnam Internet Network Information Centre (VNNIC) has coordinated with domain name registrars, and local Departments of Information and Communications to support individuals and businesses in branding, and promoting agricultural products on websites with the domain name ‘.vn’.

The Mekong Delta province of Dong Thap is the first locality in the country to coordinate with VNNIC and the domain name registrar iNET to carry out a programme on effective online business model transformation with digital services using the national domain name ‘.vn’. Therefore, dozens of typical products of Dong Thap appear on the Internet through websites with this national domain name. After Dong Thap, Vinh Long, Hau Giang and Lam Dong provinces have implemented a programme to put Vietnamese agricultural product brands on websites with the domain name ‘.vn’.

Nguyen Hong Thang, VNNIC Director, affirmed that transiting from traditional business to online business is an inevitable trend. The presence of brand names on the Internet with the Vietnamese national domain name ‘.vn’ and digital services is the key to helping local businesses and business households build brands for products and services and develop their online business in in a professional, sustainable, reliable manner.

Vietnam’s national domain name ‘.vn’ is listed among 10 country-code domain names with the largest number of registered users in the Asia-Pacific region, and ranked 44th globally.

By the end of November, over 544,200 Internet addresses had been registered with Vietnam’s top-level domain (TLD) ‘.vn’, up 5 percent year-on-year.

Source: Vietnam News Agency

The national flag carrier Vietnam Airlines has recorded a net loss of 3.5 trillion VND (155 million USD) in the third quarter of this year, a sharp decrease compared to nearly 4.9 trillion VND and 4.4 trillion VND reported in the previous quarters.

The loss of its parent company is estimated at over 3.3 trillion VND and the total gross loss of the airline is over 3 trillion VND.

In its consolidated financial statement for the third quarter, Vietnam Airlines said that both its revenue and after-tax profit suffered a big drop against last year’s figures,

According to Vietnam Airlines, the total revenue and other incomes in the third quarter of the parent company were down by 2.6 billion VND, representing a year-on-year decrease of 41.3 percent. The corporation attributed it to a 51.9 percent decline in revenue from services in the period.

The carrier said the fourth wave of COVID-19 infections, which took place during the peak time of summer, has affected the corporation’s business results.

In addition to the decrease in profits of the parent company, the profits of subsidiaries providing aviation services like Vietnam Airlines Engineering Company (VAECO) and Noi Bai Airport Services Company (NASCO), also declined sharply, it said.

To deal with the situation, Vietnam Airlines has proactively adopted drastic solutions in business operations to minimise the impacts of the COVID-19 pandemic.

Accordingly, it has taken advantage of the support of partners and suppliers to maintain operations, scale down production while cutting costs, resulting in a significant drop in the Q3 losses compared to the first two quarters.

Notably, on September 25, the carrier increased its charter capital to nearly 8 trillion VND to help improve the financial situation.

Vietnam Airlines said it is expected that with the resumption of regular domestic flights from October, business activities will gradually stabilised and it is ready for the recovery phase in the future.

Source: Vietnam News Agency

The southern province of Binh Phuoc enjoyed a trade surplus of 1.2 billion USD in the first 11 months of 2021, according to the provincial Department of Statistics.

The department reported that the locality has recorded an impressive growth of export turnover, reaching an estimated 3.5 billion USD in the reviewed period, up 32.6 percent over the same period last year, and 14.3 percent higher than the plan set for 2021.

Meanwhile, its import turnover totalled nearly 2.3 billion USD, up 44.8 percent year-on-year and 34.8 percent higher than the 2021 plan.

Binh Phuoc’s industrial production index surged by 16.3 percent compared to the same period in 2020, of which the processing and manufacturing industry; the production and distribution of electricity, gas, hot water and steam, and air conditioners; and the industry of water supply, waste and wastewater management and treatment witnessed respective surges of 17.1 percent, 11.6 percent and 6.5 percent.

A number of second-level industries that had recorded high growth indexes included the production of paper and paper products (up 53 percent), food production and processing (up over 29 percent), and motor vehicle production (up nearly 26 percent).

Source: Vietnam News Agency

Stronger engagement of ministries, sectors and localities and more comprehensive relevant policies are needed to bolster private investment in infrastructure and public services, said Tran Hao Hung, Director of the Ministry of Planning and Investment (MPI)’s Public Procurement Agency.

Though a legal framework on investment in the form of public-private partnership (PPP) has been fundamentally completed, there remained limitations in attracting investment in road transport infrastructure for projects and mobilising loans is among the biggest challenges, along with bottlenecks in relevant policies regarding tax, land, State budget and management and use of public assets, among others, he said.

Preparations for the projects are time consuming given that a long period is needed for financial feasibility studies and efficient distribution of State resources, Hung said.

Relevant policies in the coming time must be suitable for objectives and characteristics of PPP projects in specific fields to draw the private sector, together with an attractive investment climate, stable macro-economy, better sovereign credit rating and quality of planning, and more, according to the official.

Due attention should be paid to investment promotions among investors at home and abroad and solutions are necessary to access capital sources with low-interest rates and long maturity.

Authorised agencies are advised to work closely with investors to address bottlenecks, so as to consolidate their trust when participating in new projects.

Source: Vietnam News Agency

A flight coded VN98 of the national flag carrier Vietnam Airlines from Ho Chi Minh City’s Tan Son Nhat International Airport landed safely at San Francisco Airport in the US on November 29.

From November 28, Vietnam Airlines regularly operates two flights per week between Ho Chi Minh City and San Francisco. The airline plans to increase the number to seven flights per week after the COVID-19 pandemic is controlled and the Vietnamese Government allows the reopening of regular international routes.

Vietnam Airlines also considers opening more routes between Los Angeles of the US and Hanoi or HCM City. All flights between Vietnam and the US will use the most modern wide-body aircraft, such as Boeing 787 and Airbus A350.

According to Vietnam Airlines General Director Le Hong Ha, more than a year ago, Vietnam Airlines became the first Vietnamese airline flying directly to the US to bring home Vietnamese citizens.

Its direct flight to the US marked a big step forward for the firm and a historic milestone for Vietnam’s aviation industry, he said.

It took the direct flight 13 hours and 45 minutes to reach the US. The flight used Boeing 787-9 Dreamliner, one of the most modern wide-body aircraft in the world manufactured by the US’s Boeing Company.

Director of San Francisco International Airport Ivar C. Satero said the event has made the airport the US’s leading gateway for passengers from Vietnam to access areas in the San Francisco Bay.

Vietnam’s aviation industry and Vietnam Airlines have prepared for 20 years to open a regular air route to the US. The scheme officially completed on November 4 this year after the national flag carrier officially received a permit from the US Federal Aviation Administration (FAA) to operate non-stop commercial flight service between the two countries.

The event is hoped to contribute to promoting economic cooperation, cultural exchange and relations between Vietnam and the US.

Statistics show that the Vietnam – US aviation market counted 1.4 million passengers in 2019, growing at an average of 8 percent per year in the period 2017-2019.

Source: Vietnam News Agency